Relates to applying certain provisions of law pertaining to pensions to special act school districts and other institutions

1 Co-sponsor

• Michael H. Ranzenhofer

BILL NUMBER:S5434

Title of bill

An act directing that certain provisions of law shall also apply to special act school districts and certain other institutions

Purpose

To provide flexibility in meeting retirement benefit obligations for special act school districts and any institution subject to article 85 of the education law.

Summary of provisions

Section 1: Provides that notwithstanding any law to the contrary, part BB of chapter 57 of the laws of 2013 shall also apply to special act school districts and any institution subject to article 85 of the education law.

Section 2: Sets forth an immediate effective date.

Existing law

The 2013-2014 Budget included these flexibility provisions for school districts and boards of cooperative educational services.

Justification

The way in which we treat the most vulnerable among us makes a clear statement about our priorities as a society. Providing a high quality education for all of our students, regardless of geography, economic status or academic ability is paramount. Local school districts strive to serve all students in a meaningful way, however, there are some students for whom a traditional public school setting is simply not appropriate. These schools, which include special act school districts and 4201 schools, provide vital educational, social and emotional supports to students with disabilities including students who are visually impaired, deaf, or physically impaired.

While they serve unique and specialized purposes, these schools are public school districts charged with implementing and following state laws and regulations. As such, these schools face the same fiscal challenges in providing mandated retirement benefits as do local public school districts. These challenges are made more acute by the unique way in which these schools are funded. With no local taxing authority, these schools are supported through a system of tuition reimbursement from sending school districts, the rate for which is established by the State Education Department in consultation with the Division of the Budget. Unlike traditional public school districts, these schools have not received an increase in funding for four years.

The 2013-2014 Executive Budget provided an option to smooth the fiscal impacts of meeting retirement obligations on school districts and boards of cooperative educational services. Therefore, because special act and 4201 schools also educate public school students. efforts to provide flexibility in meeting retirement benefit obligations should be extended to publicly funded 4201 and special act school districts.

Legislative history

New bill.

Fiscal implications

To be determined.

Effective date

Immediately.