What's happening
The bill requires that funds from settlements by the attorney general be used to pay overdue state aid to school districts before going to the general fund.
Why it matters
Redirects Attorney General Settlement Funds to Education. By mandating that money from attorney general settlements pays overdue state aid to school districts first, the bill prioritizes education funding over general state spending.
Could Accelerate Payments for Schools Owed Money. School districts waiting on past-due state aid may receive funds more quickly, which can help with budgeting stability and prevent disruptions to educational services.
Limits State’s Flexibility in Using Settlement Windfalls. The state government would have less discretion to use large settlement payouts for other budget needs or priorities, potentially affecting funding elsewhere.
Signals Legislative Commitment to School Districts. This change underscores the importance lawmakers place on meeting obligations to schools, possibly in response to ongoing issues with delayed payments in the education system.
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Who cares
Headline styles
Pay Old School District Debts
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to education
- Referred to education
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7177
2017-2018 Regular Sessions
IN ASSEMBLY
April 12, 2017
Introduced by M. of A. PRETLOW, GALEF, BUCHWALD, MONTESANO, CROUCH, JAFFEE, CAHILL, ORTIZ -- read once and referred to the Committee on Education
AN ACT to amend the education law, in relation to prior year claims due to school districts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph c of subdivision 5 of section 3604 of the education law, as added by chapter 82 of the laws of 1995, is amended to read as follows:
c. Payment of moneys due for prior years. (1) State aid payments due for prior years in accordance with the provisions of this subdivision shall be paid within the limit of the appropriation designated therefor provided, however, that each eligible claim shall be payable in the order that it has been approved for payment by the commissioner, but in no case shall a single claim draw down more than forty percent of the appropriation so designated for a single year, and provided further that no claim shall be set aside for insufficiency of funds to make a complete payment, but shall be eligible for a partial payment in one year and shall retain its priority date status for appropriations designated for such purposes in future years.
(2) Notwithstanding subparagraph one of this paragraph, all funds obtained as the result of any settlement with the office of the attorney general shall be applied to payment of money due to school districts for prior years after the distribution of funds necessary to fulfill the obligations of the office of the attorney general, but before any remaining funds shall be apportioned to the general fund.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10824-03-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.