Caps the level of expenditures by school districts for central administration and authorizes school districts and boards of cooperative educational services

BILL NUMBER:S4653

Title of bill

An act to amend the education law, in relation to capping the level of expenditures by school districts for central administration and authorizing school districts and boards of cooperative educational services to enter into agreements or contracts with each other to perform the same functions and provide the same services that each is authorized to perform or provide

Purpose

Caps the level of expenditures by school districts for central administration and authorizes school districts and boards of cooperative educational services.

Summary of provisions

Section 1. Amends the Education Law by adding a new subdivision 25 to define the term "central administration services".

Section 2. Amends Education Law by adding a new Section 1510-a to cap the amount a common, union free, central school district, or central high school district may spend on central administrative services in a fiscal year. It further allows any school district or board of cooperative educational services to consolidate duly authorized central administrative services.

Sections 3, 4, 5 and 6. Amends various sections of the Education Law to grant the trustees of a common school district, the boards of education of union free school districts, the boards of education of central school districts, and the boards of education of central high school districts, respectively, the power to agree or contract with any school district or board of cooperative educational services to perform the same central administrative services and provide the same central administrative services that each is authorized to perform or provide.

Section 7. Subparagraph 1 of paragraph d of subdivision 4 of Section 1950 of the Education law is amended to allow boards of cooperative educational services, at the request of any district and with the approval the Education Commissioner, to provide aidable services on a cooperative basis - including central administration.

Justification

As a result of significant funding cuts, both on the State and Federal levels, and the downturn of the economy, school districts across New York have been experiencing extreme revenue losses and have been forced to find ways of saving money. Administrative expenses have the potential to become an increasingly large part of school district spending. This legislation places a cap on the amount a school district can spend on central administrative services based on enrollment. School districts with an enrollment of 1000 or more students can expend no more than two percent of its total budget in any fiscal year. Districts with less

than 1000 students would be capped at three percent. The bill establishes a definition for central administration services.

Working within the means of the caps set forth in this legislation will require school boards and administrators to be as fiscally prudent in this area as possible. To assist in accomplishing this task, this legislation further authorizes school districts and boards of cooperative educational services to enter into agreements or contracts with each other to share in the costs of providing administrative services (such as payroll and purchasing, for example) as a more efficient and economical operation.

Enactment of this legislation would ensure that state aid, education aid and property tax revenue is directed to the classroom and student educational services to the greatest extent possible.

Legislative history

2011: New bill

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.