Relates to what positions in a school district constitute chief financial officer of such school district

Title of bill

An act to amend the education law, in relation to what positions constitute chief financial officer of a school district

Purpose

To clarify what positions constitute the position of chief financial officer of a school district.

Summary of provisions

The bill adds a new Section 2131 to the Education Law to define the term "chief financial officer (CFO) of a school district." Specifically, the bill provides that a CFO shall mean and include, but not be limited to, the assistant superintendent for business, school business administrator, school business officer, or other similar official that reports directly to the superintendent and holds either the appropriate certification as required by the department for a school district administrator, school business administrator, or school district business leader, or other person holding an appropriate certificate as a determined by the department, or a school business manager or person holding a similar title in a civil service position

Justification

School districts are complex multi-million dollar operations that require the expertise of professionals with business, accounting or financial backgrounds, as well as an education background. This expertise is provided by district staff with various titles like Assistant Superintendent of Business, School Business Manager or Director of Finance, all essentially serving in the role of Chief Financial Officer (CFO).

Over the past several years (particularly since the advent of the tax cap), various guidance documents from state agencies refer to functions or the role of a school's Chief Financial Officer. However, no such position is defined in the Education Law.

This legislation will rectify this oversight by simply defining the CFO as the person who commonly fulfills that role in school districts, namely the Assistant Superintendent for Business, School Business Manager, or Director of Finance. The bill does not require school districts to establish the specific position of Chief Financial Officer; instead, it simply defines that position in the Education Law.

Given the ongoing fiscal stress that many school districts face, and the annual discussions over school finances, state aid, and the tax cap, it is important to clarify what is meant by a school's Chief Financial Officer.

Legislative history

New bill

Fiscal implications

None

Effective date

The first of July next succeeding the date on which it shall have become a law