Defines tuition for the 2013-2014 school year

BILL NUMBER:S1589A

Title of bill

An act to amend the education law, in relation to defining "tuition" for the 2013-2014 school year

Purpose

To provide that certain schools may maintain a fund balance reserve account of up to 4% of the school's annual allowable and reimbursable costs.

Summary of provisions

Section one amends subdivision 4 of section 4405 of education law by adding a new paragraph j to provide that special act school districts and Chapter 853 schools, may maintain a fund balance of up to 4% of the school's annual allowable and reimbursable costs.

Section two of the bill sets forth the enactment date, which is immediate.

Justification

Special act school districts and 853 schools in New York State represent a particularly high needs student population. The high need level associated with this population results in significant costs to operate these schools. Under current law however, these schools and school districts are not authorized to maintain any fund balance at the end of their fiscal year. Therefore, even if these districts achieve efficiencies, they are left with no funds to reinvest in their programs. Further, because the schools operated off of borrowed funds, repaid when they receive their tuition, their lack of resources can make it more difficult to acquire the financing they need to sustain their operations.

Finally, special act school districts are public school districts. Recent changes in state law allow all other public school districts to maintain a 4% undesignated fund balance. It seems only equitable to offer the same level of flexibility to these schools and school districts.

Legislative history

S.5446-A/A.8245-A of 2009 - Vetoed S.6775 of 2010. 01/10/11 REFERRED TO EDUCATION 01/04/12 REFERRED TO EDUCATION

Fiscal implications

None to the State.

Effective date

Immediately.