Authorizing the Walton central school district to receive emergency project building aid

BILL NUMBER:S5420

Title of bill

An act authorizing the Walton central school district to receive emergency project building aid

Purpose or general idea of bill

To provide the Walton Central School District with the $900,000 they are owed by the state in emergency project building aid immediately rather than amortize it over 15 years.

Summary of provisions

Section 1. Provides that notwithstanding any other provision of law, the Walton Central School District shall receive the additional emergency project building aid resulting from the June 2006 flood, in the amount of $900,000, in one lump sum as requested and not amortized over a fifteen year period.

Section 2. Effective date.

Justification

As a result of flooding in June of 2006, Walton Central School District had two emergency capital projects which were paid for using Federal funds. Since the projects were covered by state aid, the Federal government requested, and received, their funds back from Walton Central School District. However, the state aid reimbursement was not paid to the school district in one lump sum to correct for the loss of Federal funds, instead it is to be amortized and paid out over a period of fifteen (15) years. This has drastically reduced the reserves of the school district, placing the school district in undue financial hardship. This legislation is being introduced to correct this issue at the request of the Walton Central School District.

Legislative history

New Bill.

Fiscal implications

State costs of $900,000 in payment to the Walton Central School District.

Effective date

This act shall take effect immediately.