What's happening
This bill allows school districts to transfer excess employee benefit reserve funds to their general fund to offset tax increases or staff cuts.
Why it matters
Gives school districts more flexibility. to address budget shortfalls or unexpected financial pressures by allowing a one-time transfer of significant reserve funds into their general budget.
May help prevent staff layoffs or cuts to educational programs. during tough budget years, since districts can use these funds specifically to restore or maintain staffing levels.
Aims to reduce potential property tax increases. for local residents by providing another source of funds, possibly making school budgets more palatable to taxpayers.
Removes an existing oversight provision. (by repealing subdivision 3 of section 33 of the general municipal law), which could impact how these financial moves are reviewed or audited.
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Who cares
School district governing boards
The bill would allow a one-time vote within one year of its effective date to transfer employee benefit reserve money to the general fund, up to 50% of the reserve or all excess money, whichever is greater.
School property taxpayers
Transferred money could be used only to mitigate anticipated school property tax increases and/or restore anticipated or actual staff reductions.
School district employees and unions
Districts could use transferred reserve money to restore staffing levels after actual or anticipated reductions.
Headline styles
Unlock School Benefit Reserve Money
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
5 Multi-sponsors
History
- Referred to education
- Referred to education
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4437
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
Introduced by M. of A. ENGLEBRIGHT, ZEBROWSKI, JAFFEE, OTIS -- Multi- Sponsored by -- M. of A. FINCH, GIGLIO, KOLB, RAIA, THIELE -- read once and referred to the Committee on Education
AN ACT to authorize certain school districts to elect to withdraw excess monies from the employee benefit accrued liability reserve fund; and to repeal subdivision 3 of section 33 of the general municipal law, relating to the examination of accounts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Any school district having monies in an employee benefit accrued liability reserve fund established pursuant to section 6-p of the general municipal law, on the effective date of this act, may make a one time election, by resolution of its governing board adopted no later than one year after such effective date, to transfer up to fifty percent of the total of such monies or one hundred percent of the excess of such monies, whichever is greater, into the general fund of the school district. Such funds transferred by this section shall only be used to mitigate an anticipated increase in school property taxes and/or restore anticipated or actual staff level reductions.
§ 2. Subdivision 3 of section 33 of the general municipal law is REPEALED.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08816-01-9
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.