Authorizes school districts to establish reserve funds for the payment of the costs and expenses of programs of special education

Title of bill

An act to amend the education law, in relation to authorizing school districts to establish reserve funds for the payment of the costs and expenses of programs of special education

Purpose

To allow school districts to establish reserve funds for special education costs.

Summary of provisions

Section one - adds two new subdivisions to section 3651 of the education law to provide for the establishment of a reserve fund for the payments of the costs and expenses of providing programs of special education

Section two - contains the effective date

Existing law

Section 3651 of the Education Law relates to special revenue funds.

Justification

Under the current state education aid formula, each school district's aid is based on enrollment from the previous school year. There are many instances when new students enroll in a school district or enroll during a school year who require special education services. This increase in enrollment causes a financial hardship for the school. This legislation seeks to ameliorate this situation by permitting school districts to establish a special reserve fund for special education purposes so that the district will have the funds to pay for the needed program in the year the child receives the service.

Legislative history

2007/08: S.5365 Education; A.10654 Education

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately.