What's happening
This bill allows the Lansing Central School District to create a reserve fund to stabilize property taxes when energy-related payments decrease.
Why it matters
Helps protect local school budgets from sudden drops in revenue. By allowing the Lansing Central School District to set aside funds when energy-related payments (like those from a local power plant) are high, the district can avoid sharp property tax increases for residents if those payments decrease or end.
Requires direct voter approval for transparency and accountability. The creation and maximum size of the reserve fund must be approved by a majority of voters through a specific ballot proposition, giving the community a direct say in how potential tax stabilization is managed.
Links reserve fund management to the annual budget process. Any deposits to or withdrawals from the fund must be disclosed publicly and are subject to the district’s annual budget approval, ensuring ongoing oversight and integration with broader school financial planning.
Focuses on long-term financial stability amid local energy changes. The bill anticipates possible shifts in the local energy industry (such as a power plant closing or reducing payments) and aims to buffer the school district, and thus taxpayers, from the financial impacts of those changes.
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Who cares
Headline styles
Cap School Tax Increases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2484
2019-2020 Regular Sessions
IN SENATE
January 25, 2019
Introduced by Sen. HELMING -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to establish an energy system tax stabilization reserve fund in the Lansing Central School District to lessen or prevent increases in the school district's real property tax levy
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Definitions. As used in this act:
(a) "Board of education" or "board" means the board of education of the Lansing Central School District.
(b) "Energy system tax stabilization reserve fund" or "fund" means the energy system tax stabilization fund established pursuant to this act.
(c) "Payments in lieu of taxes" or "payments" means payments in lieu of taxes receivable by the school district pursuant to contracts entered into on any power plant wholly or partially within the Lansing Central School District.
(d) "School district" or "district" means the Lansing Central School District.
§ 2. The board of education is hereby authorized to establish an energy system tax stabilization reserve fund to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to changes in or termination of the payments in lieu of taxes receivable by the school district provided, however, that no such fund shall be established unless approved by a majority vote of the voters present and voting on a separate ballot proposition therefor at either a special district meeting which the board of education may call for such purpose or at the annual district meeting and election, to be noticed and conducted in either case in accordance with article 41 of the education law. Such separate proposition shall set forth the maximum allowable balance to be deposited and held in the energy system
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04949-01-9
S. 2484 2
stabilization reserve fund. Moneys shall be paid into and withdrawn from the fund and the fund shall be administered as follows:
(a) The board of education is hereby authorized to make payments into the energy system tax stabilization reserve fund with funds from payments in lieu of taxes, as defined in subdivision (c) of section one of this act which accrued prior to the establishment of the energy system tax stabilization reserve fund in an amount not to exceed the balance over any maximum allowable balance in such unassigned fund balance.
(b) For any school district fiscal year commencing after the effective date of this act and after the establishment of the energy system stabilization reserve fund, the board of education may determine that there shall be paid into the fund all or any portion of the amount by which the payments in lieu of taxes receivable by the school district for such fiscal year is greater than the amount of payments received by the school district for the preceding fiscal year provided that no such payment into the reserve fund shall cause the balance of the fund to exceed the amount approved in the ballot proposal described above.
(c) Moneys may be withdrawn from the energy system tax stabilization reserve fund for any fiscal year to be expended for any lawful purpose. Withdrawals from the fund shall be disclosed in a manner consistent with the required disclosures of similar reserve funds held by the district, including disclosures required by the property tax report card prepared by the district pursuant to the provisions of subdivision 7 of section 1716 of the education law; and deposits and withdrawals made in each fiscal year shall be subject to the district's annual budget approval process.
(d) The moneys in the energy system stabilization reserve fund shall be deposited, invested and accounted for in the manner provided for in subdivisions 2 and 6 of section 3651 and section 3652 of the education law.
§ 3. 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 establish an energy system tax stabilization reserve fund in the Lansing Central School District to lessen or prevent increases in the school district's real property tax levy
Purpose
To establish an energy system tax stabilization reserve fund to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to changes in or termination of the payments in lieu of taxes receivable by the school.
Summary of provisions
Section 1 provides definitions.
Section 2 authorizes the board of education to establish an energy tax stabilization reserve fund following a majority vote approval and make payments into the fund. The money may be withdrawn and expended for any lawful purpose.
Section 3 provides the effective date.
Justification
The Lansing Central School District faces greatly decreased revenues, in the form of a payment in lieu of taxes, with the diminished production and valuation of the local power plant. To offset such dramatic losses, this legislation would authorize the collection of additional moneys to ensure a stable funding stream without large increases in the communi- ty's property tax levy.
Prior legislative history
2017-2018: S.6691 referred to Local Government/A.8412 referred to Educa- tion
Fiscal implications
None to the State.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.