What's happening
This bill increases the allowable unexpended surplus funds that school districts may retain from 4% to 6% of their current budget.
Why it matters
School districts will have increased financial flexibility. , allowing them to retain a larger portion of unspent funds from their annual budgets (up to 6%), which can help buffer against future budget shortfalls or unexpected expenses.
The change could help districts avoid mid-year cuts or emergency budget votes. , as a larger surplus can be used to stabilize funding in years when state aid is uncertain or costs rise unexpectedly.
Taxpayers may see more stable school tax rates over time. , since districts with higher reserves might be less likely to require sudden tax increases to cover unforeseen deficits.
There is potential for increased scrutiny and debate over how much money districts hold in reserve. , as some stakeholders may question whether higher surpluses are being used efficiently or are diverting funds from immediate educational needs.
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Who cares
Headline styles
Raise School Surplus Fund Limit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Committed to rules
- Amended on third reading 4724a
- Advanced to third reading
- 2nd report cal.
- 1st report cal.790
- 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.
Let Schools Keep More Savings
In Assembly Committee · Education · Sponsor Donna Lupardo
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4724--A Cal. No. 790
2017-2018 Regular Sessions
IN SENATE
February 24, 2017
Introduced by Sen. AKSHAR -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the real property tax law, in relation to school district unexpended surplus funds
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1318 of the real property tax law, as amended by chapter 238 of the laws of 2007, is amended to read as follows:
1. The warrant of the collecting officer shall be signed by the trustee, or the trustees, or a majority of them, or the board of education or a majority thereof. Such warrant shall state the amount of unexpended surplus funds in the custody of the board and shall further state that except as authorized or required by law, such unexpended surplus funds have been applied in determining the amount of the school tax levy. For the two thousand seven--two thousand eight school year, surplus funds as used in this subdivision shall mean any operating funds in excess of three percent of the current school year budget, and shall not include funds properly retained under other sections of law. For the two thousand eight--two thousand nine school year[, and thereafter] through the two thousand sixteen--two thousand seventeen school year, surplus funds as used in this subdivision shall mean any operating funds in excess of four percent of the current school year budget, and shall not include funds properly retained under other sections of law. For the two thousand seventeen--two thousand eighteen school year, and thereafter, surplus funds as used in this subdivision shall mean any operating funds in excess of six percent of the current school year budget, and shall not include funds properly retained under other sections of law. Such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10193-02-7
S. 4724--A 2
warrant shall have the same force and effect as a warrant issued by a board of supervisors to a collecting officer in a town. The collecting officer to whom it may be delivered for collection shall be thereby authorized and required to collect from every person named on such school tax roll the sum set opposite his name, or the amount due from any person specified therein, in the same manner and with the same powers that collecting officers in towns are authorized to collect taxes levied by the board of supervisors.
§ 2. This act shall take effect July 1, 2017.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to school district unexpended surplus funds
Purpose or general idea of bill
This bill increases the amount of unexpended surplus funds which may be maintained by a school district into the next school year.
Summary of specific provisions
Section 1 of the bill would amend subdivision 1 of section 1318 of the real property tax law to change the threshold for a school district's unexpended surplus funds to be applied to the proposed tax levy from four percent to six percent.
Section 2 of the bill establishes the effective date.
Justification
School districts are currently limited to carrying a maximum of four percent of their budget into the following school year. These unexpended excess funds, often referred to as a "fund balance," help school districts deal with unexpected costs, including special education expenses and emergency capital projects. The funds also allow districts to address revenue shortfalls and other mid-year funding reductions. However, the four percent limit covers less than three weeks of school district expenses. This level of fund balance is well below the Government Finance Officers Association's recommendation for governments of no less than two month's worth of operating expenses. Comparatively, municipal governments throughout the state have no specific percentage limitation on fund balances and must only keep fund balances within a "reasonable" amount. Based on that requirement, non-school district municipalities often maintain a fund balance well over six percent. A six percent limit would allow school districts to carry approximately a month's worth of expenses and assist them in maintaining a fiscally responsible budget throughout the school year in order to better serve their students.
Legislative history
None.
Fiscal implications
None.
Effective date
This act shall take effect July 1,2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.