What's happening
This bill requires New York State to reimburse school districts for interest and expenses caused by late state aid payments due to budget delays.
Why it matters
Ensures school districts aren’t penalized for state budget delays. By requiring reimbursement for interest and related costs, the bill protects schools from financial harm caused by late state aid payments outside their control.
Promotes financial stability and planning for schools. Knowing they will be reimbursed for extra costs allows districts to better manage cash flow and avoid disruptions to educational services, even if state funding arrives late.
Increases accountability and transparency in state budgeting. The requirement that the governor propose reimbursement amendments within 30 days of a late budget encourages timely government action and keeps school funding issues visible to lawmakers.
May indirectly pressure state officials to avoid budget delays. By making the state financially responsible for added costs, the bill creates an incentive for timely budget adoption and prioritizes the needs of public schools.
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Who cares
Headline styles
Reimburse Schools for Late Aid
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to education
- Referred to education
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4144
2017-2018 Regular Sessions
IN SENATE
February 3, 2017
Introduced by Sen. TEDISCO -- 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 providing additional reimbursement to school districts for expenses incurred for failure to receive timely payments of state aid
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The education law is amended by adding a new section 3605 to read as follows:
§ 3605. Additional state reimbursement to school districts. 1. Notwithstanding any inconsistent provision of law, the state shall be liable for any interest payments or ancillary expenses incurred by a school district as a result of the school district not having received timely payments of state aid due to a failure by the state to adopt the aid to localities budget by April first in any fiscal year during which budget bills as defined by article seven of the constitution of the state of New York have not been adopted.
2. Within thirty days after the adoption of such budget bills the governor shall prepare and submit to the legislature chapter amendments to the aid to localities budget providing for additional reimbursement to repay school districts for any and all interest payments or ancillary expenses referenced in subdivision one of this section.
3. Such reimbursement moneys shall be paid upon the audit of vouchers certified by the chief fiscal officer for the school district demanding reimbursement for the interest payments and ancillary expenses incurred by such school district.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06393-01-7
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 providing additional reimbursement to school districts for expenses incurred for failure to receive timely payments of state aid
Purpose or general idea of bill
Relates to providing additional reimbursement to school districts for expenses incurred for failure to receive timely payments of state aid.
Summary of specific provisions
The state shall be liable for any interest payments or ancillary expenses incurred by a school district as a result of the school district not having received timely payments of state aid due to a failure by the state to adopt the aid to localities budget by April 1 in any fiscal year during which budget bills have not been adopted.
Within 30 days after the adoption of such budget bills, the governor shall prepare and submit to the legislature, chapter amendments to the aid to localities budget providing for additional reimbursement to repay school districts for any and all interest payments or ancillary expenses.
The reimbursement money shall be paid upon the audit of vouchers certified by the Chief Fiscal Officer for the school district demanding reimbursement for the interest payments and ancillary expenses incurred by the school district.
Justification
For 20 of the last 24 years, the budget has not been passed by April 1, districts and taxpayers. The school districts should not have to pay the cost of borrowing when the state fails to pass an on-time budget.
Prior legislative history
New Bill
Fiscal implications
Minimal
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.