What's happening
This bill sets annual tuition rates for special education providers and creates a revolving loan fund to support them.
Why it matters
Ties future tuition rates for special education providers to a clear economic index (personal income growth),. creating more predictable and potentially stable funding for special education schools and service providers—this could help these institutions better plan and budget for future years.
Imposes a 120-day deadline for the state budget director to act on tuition reconciliation rates,. ensuring that schools and providers receive timely responses to their funding requests; if the state fails to act, rates are automatically approved, reducing bureaucratic delays that can disrupt services.
Establishes an interest-free revolving loan fund for special education providers facing cash flow challenges,. offering a financial safety net that may help prevent service interruptions or layoffs due to late tuition payments or reconciliation delays.
Requires the state comptroller to set clear rules and timelines for the loan fund’s operation,. aiming to make the application process transparent and efficient for eligible schools and providers—potentially increasing their financial stability and ability to serve students with special needs.
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Who cares
Headline styles
Support Loans for Special Education
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to education
- Referred to education
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Support Loans for Special Education
In Assembly Committee · Education · Sponsor Albert A. Stirpe
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1062
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
Introduced by Sens. CARLUCCI, ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Education
AN ACT to amend the education law, in relation to certain tuition and reconciliation rates; and to amend the state finance law, in relation to the special education provider revolving loan fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 4 of section 4405 of the education law is amended by adding two new paragraphs k and l to read as follows:
k. The tuition rates established for special act school districts, approved private schools for students of school age, and approved providers of services pursuant to section forty-four hundred ten of this article for the two thousand seventeen--eighteen tuition rate year and all subsequent years thereafter shall equal the product of the tuition rate for the base year and personal income growth index as defined by paragraph bb of subdivision one of section thirty-six hundred two of this chapter.
l. All reconciliation rates filed after July first, two thousand seventeen in accordance with section 200.9 of the department's rules and regulations shall be acted upon by the director of the budget within one hundred twenty days of submission to the department. Such rates shall be deemed approved by the director of the budget in the event that no final action is taken by the director of the budget within one hundred twenty days from the submission of the reconciliation rate to the department.
§ 2. The state finance law is amended by adding a new section 97-rrrr to read as follows:
§ 97-rrrr. Special education provider revolving loan fund. 1. There is hereby established in the joint custody of the comptroller and the commissioner of taxation and finance a fund to be known as the special education provider revolving loan fund. Such fund shall consist of moneys made available pursuant to appropriation and any other sources in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01807-01-7
S. 1062 2
order to provide support special act school districts, state education department approved private schools for special education students of school age, and approved providers of services pursuant to section forty-four hundred ten of the education law. Moneys shall be paid out of the fund on the audit and warrant of the state comptroller pursuant to such section.
2. The comptroller may provide such a loan to a special act school district or approved special education provider defined in subdivision one of this section upon receipt of a written agreement between the school district or provider and the state education department outlining the need for such loan and the anticipated tuition payment or tuition reconciliation that will provide reasonable assurances of repayment that is satisfactory to the comptroller. Such loan shall not bear interest and repayment of such loan may be made upon receipt of tuition payments and reconciliations, pursuant to the written agreement.
3. The state comptroller shall promulgate rules and regulations within ninety days of the effective date of this section for the operation of the special education provider revolving loan fund which shall include, but not be limited to, the criteria to be used in determining how an eligible special education provider may receive assistance; a procedure and any necessary information that a special education provider needs to submit for a loan from the special education provider revolving loan fund; a schedule for reviewing such applications, not to exceed thirty days, and notification to an applicant of approval or disapproval of such application for a loan, and any other requirements deemed necessary by the state comptroller.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to certain tuition and reconciliation rates; and to amend the state finance law, in relation to the special education provider revolving loan fund
Purpose
To index tuition rates paid to certain special education schools to the personal income growth index, and to provide an alternative to Revenue Anticipation Notes (RANS) for Special Act school districts, 853 schools and 4410 special education programs and to keep the school open when such RANS are not available.
Summary of provisions
Section 1. Adds two new paragraphs k and 1 to subdivision 4 of section 4405 of the education law to provide a tuition rate based on the personal income growth index and to provide that reconciliation rates are approved by the Department of the Budget within one hundred twenty days from submission of the rate to the State Education Department, respectively.
Read the full memo (620 words)
Section 2. Adds a new section 97-qqqq to the state finance law to establish a special education provider revolving loan fund under the joint custody of the comptroller and the Commissioner of Taxation and Finance. This section authorizes the comptroller to provide short term loans from the fund, pending tuition payments from the state.
Section 3. Effective date.
Justification
Special Act school districts, 853 schools and 4410 special education programs in New York State represent a particularly high needs student population. The high need level associated with this population results in significant costs to operate these schools. Yet for the past six years, these schools and programs have not received a cost of living adjustment and are functioning with a tuition rate based on 2006 costs. Under current law however, funding is provided to special education programs through a complex methodology in which schools are getting reimbursed at rates set in previous years, for students previously served. These school districts currently rely heavily on short-term borrowing from banks in the form of Revenue Anticipation Notes (RANs), to keep their doors open. The state does not allow for reimbursement of interest fees that are paid to banks.
These schools and programs are required to give educational services and support to children and to do so without the same financial and infrastructure supports that are afforded to other public schools. For several years now, these schools and programs have lived with no increases in their tuition reimbursements and have experienced an inconsistent application of the tuition rate setting methodology. In order to enable them to manage the affairs of the schools efficiently and to address the needs of their students there must be a more systemic approach to providing the funding and financial support the schools and programs require. Traditional public schools receive an allowable growth amount equal to the "personal income growth index" and 853 schools, Special Acts and 4410 programs seek educational funding parity between students with disabilities at special education schools and those at public school districts.
This bill provides the funding certainty and flexibility necessary to help these schools and programs maintain their mission and to educate our students with some of the greatest needs. By providing a new tuition rate methodology, the bill gives these schools and programs the certainty of funding year to year. Furthermore by allowing New York State to provide loans to 853 schools, Special Act schools and 4410 preschool special education programs in anticipation of the school's revenue from the state will thereby save the schools and programs million in interest payments at no cost to the state.
Legislative history
2015-16: S860 - Education Committee 2013-14: S5661-A - Education Committee
Fiscal implications
To be determined.
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.