What's happening
This bill allows school districts to create reserve funds for paying contributions to the New York State Teachers' Retirement System without voter approval.
Why it matters
Gives school districts more financial flexibility. by letting them set aside money for future Teachers’ Retirement System payments without needing time-consuming and uncertain voter approval, which could speed up their ability to respond to changing pension costs.
Could lead to more stable local budgets. by allowing districts to save during good years to cushion against unexpected spikes in retirement costs, potentially making school funding less volatile and reducing the need for sudden cuts or tax increases.
Shifts some fiscal oversight from voters to school boards. while this may streamline operations, it also reduces direct taxpayer input on how reserve funds are created and managed, raising questions about transparency and accountability in handling public funds.
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Who cares
Headline styles
Let Schools Save for Pensions
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 45
3 Co-sponsors
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1158
- Referred to civil service and pensions
- Referred to civil service and pensions
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
762
2017-2018 Regular Sessions
IN SENATE
January 4, 2017
Introduced by Sens. LITTLE, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the education law, in relation to authorizing school districts to establish reserve funds for the payment of contributions to the New York state teachers' retirement system
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3651 of the education law is amended by adding a new subdivision 1-c to read as follows:
1-c. Notwithstanding the provisions of subdivision one of this section, any school district may establish a reserve fund for the payment of the district's contributions to the New York state teachers' retirement system, pursuant to article eleven of this chapter, without approval by the qualified voters of the district; provided, however, that the total of the monies held in such reserve fund shall not exceed that amount which is reasonably deemed necessary to meet such contributions.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00337-01-7
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 authorizing school districts to establish reserve funds for the payment of contributions to the New York state teachers' retirement system
Purpose
Authorizes school districts to establish reserve funds for the payment of their contributions to the New York State Teachers' Retirement System
Summary of provisions
Section 1 - amends 3651 of the education law by adding a new subdivision 1-c to authorize school districts to establish a reserve fund for the payment of the district's contributions to the New York State Teachers' Retirement System without the approval of the voters in the district. Such fund may not exceed the amount which is necessary to meet such contributions.
Section 2 - Contains the effective date.
Existing law
Section 3651 of the education law sets the parameters for reserve funds for school districts.
Justification
Pension contribution rates have varied dramatically over the past two decades, from almost zero to over twenty percent. This volatility in expense obligation is difficult for school districts to budget for. Current law allows for reserve funds for pension contributions for employees, but not for teachers. By providing school districts with the ability to establish reserve funds for teacher contributions, school districts will be able to better prepare for increases in contribution cost from year to year and stabilize tax rates.
Legislative history
2015-16: S.1912 Referred to Education 2013/14: S.2645 Referred to Education
Fiscal implications
None
Local fiscal implications
Will allow school districts to be prepared for the fluctuating costs of pension contributions
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.