What's happening
This bill prohibits New York from imposing new unfunded mandates on municipalities or school districts, requiring full state funding for any mandated programs or property tax exemptions.
Why it matters
Shifts financial responsibility for new programs. By requiring the state to fully fund any new mandates or property tax exemptions it imposes on local governments and school districts, the bill prevents these entities from having to raise local taxes or cut services to cover state-ordered costs.
Limits state leverage over local priorities. Because state mandates would need full funding or else become void, Albany would have less ability to require localities or schools to implement policy changes unless the state is willing to pay for them, potentially slowing or altering the types of reforms that reach the local level.
Narrows exceptions to state funding. The bill clearly defines limited exceptions—such as court orders, emergencies, or mandates requested by the local government itself—so most unfunded mandates would be prohibited, increasing predictability for local and school district budgets.
Could impact the speed and scope of state policy initiatives. The requirement for upfront state funding may make the legislature more cautious about passing new mandates, possibly reducing the number or ambition of future state-driven reforms affecting municipalities and schools.
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Who cares
Headline styles
State Pays for Mandates
Plain English, a few words. Used as the page title.
Sponsors
19 Co-sponsors
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.782
- Reported and committed to finance
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to local governments
- Delivered to assembly
- Passed senateVote 52–10
- Advanced to third reading
Show 4 earlier actions
- 2nd report cal.
- 1st report cal.748
- Reported and committed to finance
- Referred to local government
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.
Ban Unfunded State Mandates
In Assembly Committee · Local Governments · Sponsor Anthony Brindisi
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2323
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sens. GRIFFO, AKSHAR, CROCI, DeFRANCISCO, FUNKE, GALLIVAN, HANNON, LATIMER, MARCHIONE, MURPHY, O'MARA, ORTT, RANZENHOFER, RITCHIE, ROBACH, SERINO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law and the education law, in relation to prohibiting the establishment of certain programs mandated for municipal corporations and school districts unless such programs are fully funded by the state
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general municipal law is amended by adding a new section 25 to read as follows:
§ 25. Funding of mandates. 1. Definitions. As used in this section, the following terms shall have the following meanings unless the context shall otherwise require:
(a) "Mandate" means:
(i) any state law, rule or regulation which establishes a new program or requires a higher level of service for an existing program which a municipal corporation is required to provide; or
(ii) any provision of general law which grants a new property tax exemption or abatement or increases an existing property tax exemption or abatement which a municipal corporation is required to provide.
(b) "Unfunded mandate" shall mean:
(i) any state law, rule or regulation which establishes a new program or requires a higher level of service for an existing program which a municipal corporation is required to provide, and which results in a net additional cost to such municipal corporation;
(ii) any alteration in funding provided to a municipal corporation for the purpose of defraying the costs of a program which it is required to provide, thereby resulting in a net additional cost to such municipal corporation; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01969-01-7
S. 2323 2
(iii) any provision of general law which grants a new property tax exemption or abatement or increases an existing property tax exemption or abatement which any municipal corporation is required to provide, thereby resulting in a net additional cost to such municipal corporation.
(c) "Net additional cost" means the increased cost or costs incurred or anticipated to be incurred within a one year period by a municipal corporation in performing or administering a mandate after subtracting therefrom any revenues received or receivable by such municipal corporation on account of the mandated program or service, including but not limited to:
(i) fees charged to the recipients of the mandated program or service;
(ii) state or federal aid paid specifically or categorically in connection with the program or service; and
(iii) an offsetting savings resulting from the diminution or elimination of any other program or service directly attributable to the performance or administration of the mandated program.
2. Funding of municipal corporation mandates. Notwithstanding any other provision of law to the contrary, no unfunded mandate shall be enacted which creates an increased annual net additional cost to any municipal corporation. Each mandate which imposes a net additional cost upon a municipal corporation shall provide for compensation or funding by the state of the full amount of the net additional cost thereof. In the event such compensation or funding is not provided, the mandate shall be void.
3. Exemptions to the funding of municipal corporation mandates requirement. (a) The state shall not be required to fund any mandate if:
(i) The mandate is required by a court order or judgment;
(ii) The mandate is provided at the option of the local government under a law, regulation, rule or order that is permissive rather than mandatory;
(iii) The mandate results from the enactment of legislation requested by the municipal corporation in a home rule message requesting authority to implement the program or service specified in the statute, and the statute imposes costs only upon that municipal corporation which requests the authority to implement the program or service;
(iv) The mandate is required by, or arises from, an executive order of the governor exercising his or her emergency powers; or
(v) The mandate is required by statute or executive order that implements a federal law or regulation and results from costs mandated by the federal government to be borne at the local level, unless the statute or executive order results in costs which exceed the costs mandated by the federal government.
(b) Every statute, rule or regulation establishing a mandate shall provide that the effective date of any such mandate imposed on municipal corporations shall be consistent with the needs of the state and municipal corporations to plan implementation thereof and be consistent with the availability of required funds.
§ 2. The education law is amended by adding a new section 1527-a to read as follows:
§ 1527-a. Funding of mandates imposed on school districts. 1. Definitions. As used in this section, the following terms shall have the following meanings unless the context shall otherwise require:
(a) "Mandate" means:
S. 2323 3
(i) any state law, rule or regulation which establishes a new program or requires a higher level of service for an existing program which a school district is required to provide; or
(ii) any provision of general law which grants a new property tax exemption or abatement or increases an existing property tax exemption or abatement which a school district is required to provide.
(b) "Unfunded mandate" shall mean:
(i) any state law, rule or regulation which establishes a new program or requires a higher level of service for an existing program which a school district is required to provide and which results in a net additional cost to such school district;
(ii) any alteration in funding provided to a school district for the purpose of defraying the costs of a program which it is required to provide, thereby resulting in a net additional cost to such school district; or
(iii) any provision of general law which grants a new property tax exemption or abatement or increases an existing property tax exemption or abatement which a school district is required to provide, thereby resulting in a net additional cost to such school district.
(c) "Net additional cost" means the increased cost or costs incurred or anticipated to be incurred within a one year period by a school district in performing or administering a mandate after subtracting therefrom any revenues received or receivable by such school district on account of the mandated program or service, including but not limited to:
(i) fees charged to the recipients of the mandated program or service;
(ii) state or federal aid paid specifically or categorically in connection with the program or service; and
(iii) an offsetting savings resulting from the diminution or elimination of any other program or service directly attributable to the performance or administration of the mandated program.
2. Funding of school district mandates. Notwithstanding any other provision of law to the contrary, no unfunded mandate shall be enacted which creates a net additional cost to any school district. Each mandate which imposes a net additional cost upon a school district shall provide for compensation or funding by the state of the full amount of the net additional costs thereof. In the event such compensation or funding is not provided, the mandate shall be void.
3. Exemptions to the funding of school district mandates requirement. (a) The state shall not be required to fund any mandate for school districts if:
(i) The mandate is required by a court order or judgment;
(ii) The mandate is provided at the option of the school district under a law, regulation, rule or order that is permissive rather than mandatory;
(iii) The mandate results from the enactment of legislation requested by the school district in a home rule message requesting authority to implement the program or service specified in the statute, and the statute imposes costs only upon that school district which requests the authority to implement the program or service;
(iv) The mandate is required by, or arises from, an executive order of the governor exercising his or her emergency powers; or
(v) The mandate is required by statute or executive order that implements a federal law or regulation and results from costs mandated by the federal government to be borne at the local level, unless the statute or
S. 2323 4
executive order results in costs which exceed the costs mandated by the federal government.
(b) Every statute, rule or regulation establishing a mandate shall provide that the effective date of any such mandate imposed on school districts shall be consistent with the needs of the state and school districts to plan implementation thereof, and be consistent with the availability of required funds.
§ 3. This act shall take effect immediately and sections one and two of this act shall apply to mandates enacted on or after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law and the education law, in relation to prohibiting the establishment of certain programs mandated for municipal corporations and school districts unless such programs are fully funded by the state
Purpose
Requires any state mandated program imposed on municipalities and school districts to be funded by the state.
Summary of provisions
Section 1. The general municipal law is amended by adding a new section 25 which specifically defines "mandate", "unfunded mandate", and "net additional cost" in relation to state funding of school programs.
Section 2. The education law is amended by adding a new section 1527-a which states that no unfunded mandate shall be enacted which creates a net additional cost to any school district. In addition, this section explains the circumstances under which the state would not be required to fund any mandate for a school district, such as a mandate required by a court order or legislation requested by the school district.
Section 3. Sets forth the effective date.
Justification
State mandated programs place local taxpayers and local officials in the position of paying for services that they do not control. State mandated programs allow the state rather than local officials to set priorities for the locality. In turn, this forces municipalities to levy more taxes on its residents in order to pay for these state mandated programs.
This bill requires programs that originate from the state to be paid for by the state and not have the burden to find funding fall upon local municipalities. This bill seeks to protect local municipalities and school districts from unfunded mandates and allow local officials to set priorities for their own area.
Legislative history
2015-16 - S. 2295 Passed Senate/A. 2338a - Local Government Committee. 2013 - S. 1294a Passed Senate/A. 4861 - Local Government Committee.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately. Sections one and two of this act shall apply to mandates enacted on or after such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.