Repeals certain provisions of the education law relating to not including any expenditures to the New York City Metropolitan Transportation Authority for public service

Title of bill

An act to repeal subparagraph 2 of paragraph b subdivision 7 of section 3602 of the education law, relating to not including any expenditures to the New York City Metropolitan Transportation Authority for public service transportation for apportionment of public moneys to certain school districts

Purpose

This bill would remove the provision in that education law that prohibits the New York City school district from including the cost of Student Metro-Cards as an operating expense. By repealing this provision, the cost of purchasing Student Metro-Cards can be included in the operating expense budget of the NYC Board of Education, thereby allowing this program to continue.

Summary of provisions

Section 1 - Paragraph 2 of of paragraph b of section 7 of section 3602 of the education law is REPEALED.

Existing law

Currently, state law explicitly prevents the New York City school district from including the cost of Student ,Metro-Cards as an operating expense for the purpose of calculating their necessary appropriation.

Justification

Prior to 1994, New York City and New York State paid the entire costs of the Student Fare program to fund free and half price Metro-Cards for New York City public school students. In 1995, an agreement was made to between New York City, New York State and the MTA to divide these costs equally. Over time, the MTA's costs associated with the program increased while the shares from the State and City did not. In November of 2009, as part of the Deficit Reduction Plan, the State's share of the school fare program was reduced from $25 million to only $6 million. The MTA, amid its ongoing fiscal crisis has been unable to make up the difference and provide the necessary funding for this program, and has proposed to eliminate all funding to this program by the start of the 2011 school year.

This is a valuable program that provides free or half fare metro-cards to students who rely on the public transportation system in New York City to get to and from school. Current law, explicitly prohibits "...school districts within a city with a population in excess of one million inhabitants..." from "...including expenditures to the New York City Metropolitan Transportation Authority for public service transportation..." as part of their operating budgets. Due to the fact that the Student Fare program had been funded by the State, City and MTA, there was no need for the NYC school district to include costs associated with this program as part of their operating costs. However, because funding for the Student Fare program has been cut so drastically by the state and is set to be completely cut by the MTA, the NYC School District must be allowed to continue to provide this valuable service to its school children. The only way this can occur is if they are allowed to include the costs necessary to carry on this program in their operating budget when they compute their necessary appropriation.

Legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

Immediately.