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Sponsors
Senator · Senate District 57
No co-sponsors yet.
History
- Referred to education
- Referred to education
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5318
Title of bill
An act to amend the education law, in relation to authorizing school districts with low combined wealth ratios to estab- lish tax cap reserve funds
Purpose
To allow school districts with a low combined wealth ratio to establish a reserve fund for the payment of school district expendi- tures, such that the reserve fund does not exceed an amount which might be reasonably deemed necessary to meet anticipated increased expendi- tures.
Summary of provisions
Section 1 amends Section 3651 of the Education Law by adding two new subdivisions 1-c and 3-b.
Justification
Many rural and small school district face financial hardships. Small and rural school districts take in only limited revenue increases when raising the tax levy to the two-percent cap, while districts with higher combined wealth ratios (CWRs) may see a signif- icant increase in revenue through a similar two-percent levy increase. Many of these poor and rural school districts rely heavily on state aid to make up for the limitations of their local tax levy.
This bill will help ensure academic program stability by allowing poor school districts with a low CWR to establish a reserve fund for the payment of school district expenditures for any school year, to the extent that such expenditures would cause the school district to exceed its tax levy limit. Schools will be able to use the reserve fund to mitigate program cuts that could ensue if the tax levy is not able to meet budget needs.
Reserve funds are necessary for a variety of purposes, such as to protect against difficult, changing financial circumstance. Enabling school districts to establish tax cap stabilization reserve funds would help them meet anticipated increased expenditures in future years while also ensuring compliance with the tax cap.
Legislative history
New Bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.