What's happening
This bill allows the enlarged city school district of Middletown to establish and use an insurance reserve fund.
Why it matters
Gives Middletown's school district a new financial tool. By allowing the creation of an insurance reserve fund, the district can set aside money specifically to manage the costs of insurance claims, lawsuits, or judgments—helping to stabilize annual budgeting and respond more flexibly to unexpected liabilities.
Aligns Middletown with other districts. The legislation places Middletown alongside other New York school districts (like Scarsdale, Vernon Verona Sherrill, and Minisink Valley) that already have this authority, ensuring equitable access to this financial strategy.
Potential for cost savings and risk management. Having a dedicated reserve fund could reduce reliance on external insurance or borrowing for certain risks, possibly lowering overall costs and improving the district’s ability to self-manage some legal and insurance-related risks.
Supports long-term financial planning. The ability to build and use an insurance reserve can help the district plan for liabilities over multiple years, reducing the likelihood of sudden tax increases or budget cuts in response to unforeseen events.
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Who cares
Headline styles
Let Middletown Save for Insurance
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.509
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.244
- Substituted for A5000
- Referred to education
- Delivered to assembly
- Passed senateVote 49–13
- Advanced to third reading
- 2nd report cal.
- 1st report cal.29
Show 1 earlier action
- Referred to local government
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.
Let Middletown Save for Insurance
Assembly Floor Calendar · Sponsor Aileen Gunther
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1012
2019-2020 Regular Sessions
IN SENATE
January 10, 2019
Introduced by Sen. METZGER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
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.
LBD05858-01-9
S. 1012 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 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.
Existing law
Currently, Scarsdale Union Free School District, the Vernon Verona Sher- rill Central School District, and the Minisink Valley Central School District are authorized to establish an insurance reserve fund.
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
2018 - S6570 - ADVANCED TO THIRD READING
Fiscal implications
None to the State
Local fiscal implications
This legislation would provide significant savings to the district.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.