What's happening
This bill increases the maximum surplus funds school boards can retain from 4% to 5% of their annual budgets.
Why it matters
Gives school districts greater flexibility to manage uncertain costs. By allowing districts to retain a larger surplus (up to 5%), schools can better cushion against unexpected financial pressures, such as emergency repairs, fluctuating enrollment, or mid-year state funding changes.
May help stabilize school tax rates for communities. A higher allowable surplus could reduce the need for sudden tax increases or drastic mid-year cuts, as districts have more reserve funds to draw upon during lean years.
Could reduce pressure to spend down budgets unnecessarily. Previously, districts might have spent surplus funds at the end of the year to avoid exceeding the cap; raising the limit encourages more prudent, long-term financial planning.
Signals a shift in state policy toward school district fiscal autonomy. The change reflects increased trust in local school boards to manage taxpayer money responsibly and to determine the right balance between savings and spending for their unique needs.
Albany, before your first meeting.
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Who cares
School boards
The bill would let them retain operating funds up to five percent of the current school year budget, rather than four percent, beginning in the 2019–2020 school year.
School district budget officials
They would use the higher threshold when determining how much unexpended surplus must be applied in setting the school tax levy.
School property taxpayers
The bill would allow districts to retain more operating funds instead of applying those funds to reduce the amount raised through the school tax levy.
Headline styles
Let Schools Keep More Savings
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to education
- Referred to education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1905
2019-2020 Regular Sessions
IN ASSEMBLY
January 17, 2019
Introduced by M. of A. ABINANTI -- read once and referred to the Committee on Education
AN ACT to amend the real property tax law, in relation to increasing the allowable amount of unexpended surplus funds which may be retained by a board of education
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 eighteen--two thousand nineteen 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 nineteen--two thousand twenty school year, and thereafter, surplus funds as used in this subdivision shall mean any operating funds in excess of five percent of the current school year budget, and shall not include funds properly retained under other sections of law. Such 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05231-01-9
A. 1905 2
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 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.