Relates to timely payment of apportioned state monies for reimbursement of certain nonpublic schools for expenses in complying with certain reporting requirements

1 Co-sponsor

• David Storobin

BILL NUMBER:S7697

Title of bill

An act to amend the education law, in relation to the timely payment of apportioned state monies for the reimbursement of certain nonpublic schools for their expenses in complying with certain state requirements for the reporting of basic education date and for the reimbursement of mandated services

Purpose or general idea of bill

To ensure certainty and predictability in the process by which religious and independent schools are reimbursed for certain mandated services.

Summary of specific provisions

Adds section 3603 to the Education Law requiring the State Education Department to reimburse religious and independent schools on a specific date for the cost of mandated services reimbursed under chapter 507 of the laws of 1974; establishes procedures in the event of an over-payment or under-payment; and requires SED to return to the practice of providing a single reimbursement payment.

Existing law

Existing law does not provide a date certain by which religious and independent schools are to receive their mandated services reimbursement payments.

Justification

A schedule of state aid payments to public school districts is set forth in law, thereby giving school districts the certainty needed to more easily manage their budgets. Religious and independent schools, however, are not afforded the same certainty in receiving their annual Mandated Services Reimbursement checks. In numerous instances, the delay in the payment process has forced schools to borrow money to meet their basic needs, such as payroll and utility payments, while incurring additional expense by paying interest on borrowed money.

Moreover, there are separate applications and separate checks issued for Comprehensive Attendance Policy (CAP) reimbursement - a process initiated in recent years - which is inefficient for both the State and schools. This measure re-establishes the more efficient single application/payment process and will alleviate the necessity of borrowing by ensuring that reimbursement payments shall take place on a date certain and through a single payment. Religious and independent schools will thereby be afforded the same certainty and predictability enjoyed by their public school counterparts.

Legislative history

None.

Fiscal implications

None.

Local fiscal implications

Will help provide stability in the budgeting process for religious and independent schools.

Effective date

The act shall take effect on January 1 after the date of enactment provided that timely payments required pursuant to this act shall commence in the year following the year in which it shall have taken effect - thereby giving the Commissioner at least one year for implementation.