Changes the state fiscal year from April first to June first, changes time frames for school district elections and notice of elections and submission of a property tax report card

Further, to accommodate school district trustees who need to know how much state aid they will receive in the ensuing fiscal year, the uniform school budget voting day shall be moved from the third Tuesday of May to the fourth Tuesday of June. To make accommodations for budget revotes, the uniform revoting day shall be moved to the fourth Tuesday of July from the third Tuesday of June. Also, school districts' fiscal year start date shall be shifted to August 1 from July 1. Reporting deadlines and requirements for school budget notice advertisements and property tax report cards shall be advanced to assist districts in adjusting to this new school budget voting cycle.

Summary of provisions

Amends §3 of the state finance law to change the start of the state fiscal year to June 1.

Amends subdivision 6 of §23 of the state finance law to require the senate finance committee, assembly ways and means committee and division of budget to reconvene on or after April 15 to revise the consensus forecast of the economy and estimates of receipts for the current and ensuing fiscal years. By May 1, the senate finance committee, assembly ways and means committee and division of budget shall issue a revised version of the joint executive-legislative consensus report that was initially due March 1. In cases when a revised joint executive-legislative consensus report is not issued by May 1, the comptroller, on or before May 5, shall provide estimates for receipts for the current and ensuing state fiscal years.

Amends subdivision 1 of §2022 of the education law to change the uniform school budget voting day to the fourth Tuesday of June.

Amends subdivision 2 of §2601-a of the education law to eliminate in 2011 the second Tuesday of May as the alternative uniform school budget voting day.

Amends subdivision 1 of §2003 of the education law to require each common school district advertise in local newspapers notices about school budget votes two times in the three weeks preceding the annual meeting and election, with the first advertisement appearing 18 days prior to the vote. Each district shall also predominately post on its official school web site this budget vote information throughout the three weeks next preceding the annual meeting, with the first publication appearing eighteen days before the meeting.

Amends subdivision 1 of §2004 of the education law to require each union free school district advertise notices in local newspapers about school budget votes two times in the three weeks preceding the vote, with the first advertisement appearing 18 days prior to the vote. Each district shall also predominately post on its official school web site this budget vote information throughout the three weeks next preceding the annual meeting, with the first publication appearing eighteen days before the meeting.

Amends paragraph b of subdivision 7 of §1608 of the education law to require school districts to submit their property tax report cards to the department of education no later than the eighteen days prior to the statewide uniform voting day.

Amends § 2515 of the education law to set a August 1 to July 31 fiscal year cycle for schools.

Amends subdivision 3 of § 2006 of the education law to set for common school districts the uniform school budget revoting day as the fourth Tuesday of July and an alternative day as the third Tuesday of July.

Amends paragraph b of subdivision 3 of § 2007 of the education law to set for union free school districts the uniform school budget revoting day as the fourth Tuesday of July and an alternative day as the third Tuesday of July.

Existing law

Section 3 of the state finance law provides for an April 1 to March 31 fiscal year cycle.

Subdivision 6 of §23 of the state finance law requires the senate finance committee, assembly ways and means committee and division of budget to issue on or before March 1 a joint report containing a consensus forecast of the economy and estimates of receipts for the current and ensuing fiscal year.

Subdivision 1 of §2022 of the education law sets the third Tuesday of May each year as the uniform school budget voting day.

Subdivision 2 of §2601-a sets the second Tuesday in May each year as an alternative uniform school budget voting day in lieu of a conflict with religious observances on the third Tuesday of May.

Subdivision 1 of §2003 of the education law requires each common school district to advertise in local newspapers notices about school budget votes four times in the seven weeks preceding the annual meeting and election, with the first advertisement appearing forty-five days prior to the vote.

Subdivision 1 of §2004 of the education law requires each union free school district to advertise in local newspapers notices about school budget votes four times in the seven weeks preceding the annual meeting and election, with the first advertisement appearing forty-five days prior to the vote.

Paragraph b of subdivision 7 of §1608 of the education law requires school districts to submit their property tax report cards to the department of education no later than the twenty-four days prior to the statewide uniform voting day.

§ 2515 of the education law sets a July 1 to June 30 fiscal year cycle for schools.

Subdivision 3 of § 2006 of the education law sets for common school districts the uniform school budget revoting day as the third Tuesday of June and an alternative day as the second Tuesday of June.

Paragraph b of subdivision 3 of § 2007 of the education law sets for union free school districts the uniform school budget revoting day as the third Tuesday of June and an alternative day as the second Tuesday of June.

Justification

Much has changed since the Legislature last changed the start of New York State's fiscal year. When lawmakers in 1943 shifted New York to an April 1 fiscal year, the State suffered from budgets that were passed too early; the State typically ended its fiscal year on June 30 with huge surpluses that irked taxpayers; and the Legislature often passed the Executive Budget with little to no changes. And while the rationale for changing the fiscal year in 1943 had its merits, they are not applicable to modern times.

A host of deficiencies in the budget process stem from the April 1 start date. These problems range from poor revenue forecasting to difficulties in establishing a firm revenue consensus between Executive and Legislative fiscal leaders. These problems often contribute to others later in the process, such as a lack of transparency in the form of a shortened conference committee process or inadequate consideration of the budget before the vote on it. Also, when actual revenues fall short of these estimates, the Legislature often finds itself reconvening to fill multi-billion-dollar budget holes.

A June 1 fiscal year is a superior option for New York. It would afford legislators six weeks to make use of the most recent quarterly personal income tax data, which is due on April 15. To ensure this vital tax data that is incorporated into the budget negotiation process, this bill would require Executive and Legislative fiscal leaders to reconvene on or after April 15 and by May 1 issue a

revised version of the consensus forecast of the economy and estimates of receipts they agreed upon two months earlier.

Further, to ensure school districts know how much state aid they will receive in the ensuing fiscal year, the third-Tuesday-in-May uniform school budget voting day would be pushed past the start of the fiscal year on June 1. This bill proposes a fourth-Tuesday-of-June uniform school budget voting day. This later uniform voting day would provide district trustees with ample time to prepare budgets with accurate state aid figures and eliminate much of the guesswork they are often forced to perform under an April 1 budget cycle. To address conflicts caused by budget revotes after school districts' fiscal year start date on July 1, the fiscal year start date shall be moved to August 1 and the uniform revoting day shall be shifted to the fourth Tuesday of July from the third Tuesday of June.

Fiscal implications

Minimal.

Effective date

This act shall take effect on January 1, 2013.