What's happening
This bill creates an endowment fund for SUNY and CUNY, funded partly by legal settlements, to supplement state appropriations.
Why it matters
Creates a permanent financial resource for SUNY and CUNY. By establishing an endowment fund managed by the state comptroller, the bill provides long-term, stable funding that can support public higher education even during periods of budget cuts or economic downturns.
Redirects a portion of legal settlement money to education. Ten percent of funds from state settlements or judgments would go directly to the endowment, meaning that windfalls from legal actions (such as lawsuits against corporations) would benefit public universities and not just flow into the general state budget.
Mandates supplemental—not replacement—funding. The endowment is explicitly designed to add to, not replace, regular state appropriations, guarding against the risk that lawmakers might reduce baseline funding and rely solely on endowment payouts.
Supports a range of university needs. The income from the endowment can be used flexibly for priorities set by university trustees, including hiring more faculty, increasing student financial aid, boosting research, and other initiatives that could improve educational quality and student access.
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Who cares
SUNY and CUNY boards of trustees
The bill would let them determine uses for annual endowment earnings, which would supplement rather than replace state appropriations.
State comptroller
The bill would require the comptroller to hold and invest the endowment as trustee, preserve its principal and distribute earnings pursuant to appropriation.
State agencies bringing legal claims
Ten percent of money received from settlements, compromises or judgments arising from claims brought by the state or its agencies would go to the endowment.
- Likely support
SUNY and CUNY students, faculty and researchers
Endowment earnings could support student financial aid, additional full-time faculty positions and research and development grants.
Headline styles
Create SUNY/CUNY Endowment Fund
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to higher education
- Referred to higher education
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.
Create SUNY and CUNY Endowment
In Senate Committee · Finance · Sponsor Rachel May
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1190
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. GLICK -- read once and referred to the Committee on Higher Education
AN ACT to amend the state finance law, in relation to establishing the state university of New York and the city university of New York endowment fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The state finance law is amended by adding a new section 92-ii to read as follows:
§ 92-ii. State university of New York and city university of New York endowment fund. 1. There is hereby established in the custody of the comptroller a fund to be known as the state university of New York and city university of New York endowment fund. Notwithstanding any other provision of law, all of the assets and income of the endowment shall be held and invested by the comptroller as trustee of such endowment, except such income as may be allocated or distributed by the comptroller pursuant to appropriation.
2. The endowment shall consist of amounts transferred into such endowment, and any other amounts as may be deposited in the endowment from other public or private sources. Notwithstanding any provision of the law to the contrary, in addition to any other amounts transferred or deposited, ten percent of all moneys received as the result of the settlement or compromise of or from any judgment arising from any claim or cause of action brought by the state or any agency thereof shall be transferred and paid to the state comptroller, and the comptroller shall deposit such moneys into the state university of New York and city university of New York endowment fund.
3. Amounts transferred to or deposited into the endowment shall be dedicated to the state university of New York and/or the city university of New York, and shall be used for no other purpose, and distributions from the endowment shall be used to supplement, rather than supplant,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05014-01-9
A. 1190 2
appropriations from the state in support of the state university of New York and the city university of New York. The full amount of the principal of the endowment shall be preserved and annual payments shall be made from the investment earnings of the endowment in support of the state university of New York and the city university of New York, to provide funding for purposes as determined by the boards of trustees of the state university of New York and the city university of New York which may include, but shall not be limited to, employment of additional full-time faculty members, student financial aid to improve access, grants for research and development, and for additional higher education purposes as may be authorized.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.