What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Vetoed memo.6734
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.390
- Substituted for A10159
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 58–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.791
Show 2 earlier actions
- Reported and committed to finance
- Referred to education
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Authorizes the city school district of the city of Mt. Vernon to finance a deficit by the issuance of serial bonds and/or bond anticipation notes
Assembly Floor Calendar · Sponsor J. Gary Pretlow
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to authorize the city school district of the city of Mount Vernon to finance a deficit by the issuance of serial bonds and/or bond anticipation notes and providing for other matters in connection therewith
Purpose
This legislation would allow the school district to convert this outstanding obligation into a deficit reduction bond as a revenue source and would provide a longer time frame for repayment.
Justification
The enactment of this bill would allow the school district to maintain the current level of repayment of the budget and not require a further increase in the property tax levy. However, If such legislation is not approved, the school district will need to identify 4.4 million else where in the 2009-10 budget of $203,175,490 that could be reallocated to the expenditure function to cover the balance of the principle repayment of the budget note. Finding sufficient funds is not likely due to the loss of "spin up" lottery aid of $5,000,000 from the Governor's veto and continued pressure on special education costs. This could cause the district to default and severely impact its .already weak credit rating. Repayment of this amount by a budget appropriation in the up coming 2010-11 budget would require an additional property tax increase of almost 4%. during a. budget already -adversely effected by reductions' in state aid of $6,449,000. Since repayment of a budget is not a contingent item, other budgetary costs directly effecting educational services would have to be reduced.
Fiscal implications
In the prior year of 2007-08, the Mount.Vernon City School District incurred greater than expected costs for special education and foster care, the cost associated with the opening of buildings post-construction and energy costs. As a result, the School District was required to issue a budget note of 5.5 million in June 2008 to finance these costs. Under accounting guidelines, a budget is not recorded as revenue but as a liability on the General Fund balance sheet. Budget notes are generally required to be repaid in full in the succeeding fiscal year if issued prior to the to the public's vote on the next fiscal year's budget in May. Since the budget note was not issued until June 2008, repayment was not required in the 2008/09 fiscal year but is required by the end of the 2009/10 fiscal year. Although funds were not budgeted in 2008-09, the School District did make a $500,000 payment against this budget note by reallocating other unexpended resources, thereby reducing the outstanding obligation to $5.0 million at June 30, 2009. The School District's adopted budget includes an appropriation of $600,000 for the repayment of the budget note, leaving the balance of approximately $4.4 million unbudgeted for the payment of the budget note.
Effective date
This Act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.