What's happening
This bill allows the enlarged city school district of Middletown to establish an insurance reserve fund like certain other districts.
Why it matters
Levels the playing field for Middletown schools. By allowing the Middletown district to set up an insurance reserve fund, the bill gives it the same financial management tools as other named districts, potentially improving its ability to handle unexpected insurance claims or liabilities.
Can help stabilize school budgets. Having a dedicated reserve for insurance-related costs means Middletown can better absorb costly events (like lawsuits or property damage) without sudden impacts on educational programming or tax rates.
May reduce reliance on annual budget fluctuations. The ability to save over time for insurance needs provides more predictable long-term financial planning, which can lead to greater fiscal responsibility and potentially lower insurance premiums due to better risk management.
Reflects changing needs and equity in state policy. This amendment acknowledges that different school districts have unique risks and financial structures, and updates the law so Middletown isn’t at a disadvantage compared to its regional peers.
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Who cares
Headline styles
Let Middletown Build Insurance Fund
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 42
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1187
- Referred to local government
- Referred to rules
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.
Allow Middletown Insurance Fund
In Senate Committee · Local Government · Sponsor Aileen Gunther
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6570
2017-2018 Regular Sessions
IN SENATE
June 5, 2017
Introduced by Sen. BONACIC -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the general municipal law, in relation to permitting the enlarged school district of Middletown to establish an insurance reserve fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 2 of section 6-n of the general municipal law, as separately amended by chapters 414 and 416 of the laws of 2016, is amended to read as follows:
(a) The governing board of any municipal corporation may establish a reserve fund to be known as the insurance reserve fund. Upon the creation of the fund, the municipality may make expenditures from the fund for any loss, claim, action or judgment for which the municipal corporation is authorized or required to purchase or maintain insurance, except those kinds of risks for which insurance is authorized pursuant to paragraph one, two, three, fifteen, sixteen, seventeen, eighteen, twenty-two or twenty-three of subsection (a) of section one thousand one hundred thirteen of the insurance law, or for payments in lieu of contributions under article eighteen of the labor law; provided however, that no municipality shall make an expenditure from such fund for any loss, claim, action or judgment for which the municipal corporation has established a reserve fund under any other provision of law; provided, further that the Scarsdale union free school district [and], the Vernon Verona Sherrill central school district [may establish insurance reserve funds in compliance with this section and article seventy-four of the education law and], the Minisink Valley central school district and the enlarged city school district of Middletown may establish insurance reserve funds in compliance with this section and article seventy-four of the education law and such school districts may make expenditures in compliance with this section and article seventy-four of the education
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11872-01-7
S. 6570 2
law from such reserve fund for any loss, claim, action or judgment for which the school districts are authorized or required to purchase or maintain insurance for the kinds of risks for which insurance is authorized pursuant to paragraph three of subsection (a) of section one thousand one hundred thirteen of the insurance law.
§ 2. 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 general municipal law, in relation to permitting the enlarged school district of Middletown to establish an insurance reserve fund
Purpose
This bill will authorize the Enlarged City School District of Middletown to create an insurance reserve fund.
Summary of specific provisions
Section 1: Amends Paragraph (a) of subdivision 2 of section 6-n of the General Municipal Law to add the Enlarged City School District of Middletown to the list of school districts that are authorized to create insurance reserve funds.
Section 2: Effective date.
Justification
Following a complete analysis of the district's budget for the 2017-2018 school year, it was recommended that the District self-fund its health insurance program. After this analysis, the Board of Education voted to leave the Orange-Ulster Health Care Consortium to create a self-funded health care program. It is estimated that this action will save the district $3.4 million.
Legislative history
Significant savings to the Enlarged City School District of Middletown.
Fiscal implications
None to state.
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.