What's happening
This bill authorizes the Hendrick Hudson Central School District to create a reserve fund to stabilize taxes following the closure of Indian Point nuclear power plant.
Why it matters
Helps prevent sudden spikes in property taxes. for local residents by allowing the school district to set aside funds to offset lost revenue after the Indian Point plant closure, which could otherwise cause sharp tax increases.
Gives local voters direct control. over whether the fund is created and its maximum size, ensuring community input and transparency in how financial stability is managed.
Requires annual disclosure and budget oversight. for deposits and withdrawals from the fund, increasing accountability in how reserve funds are used to stabilize taxes and support district budgeting.
Limits the use of unassigned and reserve funds. by specifying that only excess or unnecessary amounts can be transferred, helping maintain fiscal discipline across the district's finances.
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Who cares
Hendrick Hudson Board of Education
The bill would let the board establish a voter-approved reserve and fund it with excess unassigned fund balance and qualifying amounts from existing reserves to cushion revenue losses from Indian Point’s closure.
Hendrick Hudson school district property taxpayers
The reserve would aim to lessen or prevent school property tax levy increases resulting from revenue declines tied to the plant’s closure.
Hendrick Hudson school district voters
Voters would decide whether to authorize the reserve and its maximum balance, while annual deposits and withdrawals would be subject to the district’s budget approval process.
Headline styles
Stabilize School Tax Revenue
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 40
No co-sponsors yet.
History
- Recommit, enacting clause stricken
- Referred to education
- Referred to education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5476
2017-2018 Regular Sessions
IN SENATE
March 30, 2017
Introduced by Sen. MURPHY -- read twice and ordered printed, and when printed to be committed to the Committee on Education
AN ACT to authorize the Hendrick Hudson central school district to establish an energy system tax stabilization reserve fund as the result of the closure of the Indian Point nuclear power plant
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. The legislature hereby finds that the closure of the Indian Point nuclear power plant located within the Hendrick Hudson central school district may result in instability in the real property tax base and the budgets of the district due to the uncertainty of future payments and impact the closure will have on the taxpayers.
§ 2. Definitions. As used in this act:
(a) "Board of education" or "board" means the board of education of the Hendrick Hudson central school district.
(b) "Energy system tax stabilization reserve fund" means the energy system tax stabilization fund established pursuant to this act.
(c) "School district" or "district" means the Hendrick Hudson central school district.
§ 3. The board of education is hereby authorized to establish an energy system tax stabilization reserve fund to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to the closure of the Indian Point nuclear power plant provided, however, that no such fund shall be established unless approved by a majority vote of the voters present and voting on a separate ballot proposition therefor at either a special district meeting which the board of education may call for such purpose or at the annual district meeting and election, to be noticed and conducted in either case in accordance with article 41 of the education law. Such separate proposition shall set forth the maximum allowable balance to be deposit-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10820-01-7
S. 5476 2
ed and held in the energy system stabilization reserve fund. Moneys shall be paid into and withdrawn from the fund and the fund shall be administered as follows:
(a) The board of education is hereby authorized to make payments into the energy system tax stabilization reserve fund in an amount not to exceed the balance over any maximum allowable balance in such unassigned fund balance and from any reserve funds authorized or required by law in amounts which the board of education shall determine are not reasonably necessary for the purpose of such fund or funds and which accrued prior to the establishment of the energy system tax stabilization reserve fund provided that no such payment from any unassigned fund balance or any reserve fund shall cause the balance of the fund to exceed the amount approved in the ballot proposal pursuant to this section.
(b) Moneys may be withdrawn from the energy system tax stabilization reserve fund for any fiscal year to be expended for any lawful purpose. Withdrawals from the fund shall be disclosed in a manner consistent with the required disclosures of similar reserve funds held by the district, including disclosures required by the property tax report card prepared by the district pursuant to the provisions of subdivision 7 of section 1716 of the education law; and deposits and withdrawals made in each fiscal year shall be subject to the district's annual budget approval process.
(c) The moneys in the energy system tax stabilization reserve fund shall be deposited, invested and accounted for in the manner provided for in subdivisions 2 and 6 of section 3651 and section 3652 of the education law.
§ 4. 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 authorize the Hendrick Hudson central school district to establish an energy system tax stabilization reserve fund as the result of the closure of the Indian Point nuclear power plant
Purpose
This bill will authorize the Hendrick Hudson central school district to establish an energy system tax stabilization reserve fund
Summary of provisions
Section one establishes legislative findings.
Section two establishes definitions.
Section three authorizes the Hendrick Hudson central school district to establish an energy system tax stabilization reserve fund to lesson or prevent increase in the school district's real property tax levy resulting from decreases in revenue due to the closure of the Indian Point nuclear power plant. Establishment of such fund must be approved by a majority vote of the voters present and voting on a separate ballot proposition either at a special district meeting or at the annual district meeting and election.
Section four establishes the effective date.
Justification
On January 9, 2017, Governor Cuomo and Entergy announced the closing of the Indian Point nuclear power plant by 2020 and 2021. The Indian Point nuclear power plant in Westchester County has been a significant contributor to the local economy for decades. Payments In Lieu of Taxes (PILOT) to the Hendrick Hudson School District comprise a significant amount of the school district's budget. The most recent PILOT agreement for Entergy, the company that owns the Indian Point facility, provides 30.6% of the revenue for the Hendrick Hudson school budget. This PILOT agreement extends to 2024-25 and it is set to provide increased PILOT payments to the school district until the 2020-2021 school year when they are set to rapidly decline.
This legislation will enable the Hendrick Hudson School District to use the tax stabilization reserve fund to set aside revenue from the Entergy PILOT agreements while remaining in compliance with state law regarding reserve fund balances. Funds held in the tax stabilization reserve fund will offset future revenue losses due to the impending closure of Indian Point nuclear power plant.
There is legal precedent in the state for the use of tax stabilization reserve funds to assist school districts manage increased PILOT revenue and use it in future school budgets. Similar legislation was enacted in 2001 (Ch. 202 L 2001) to create a temporary nuclear facility tax stabilization fund for the Hendrick Hudson School district that assisted with the management of increased PILOT payments, and enable those funds to be used to stabilize future school budgets.
Legislative history
New Bill
Fiscal implications
None 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.