What's happening
This bill raises the allowable unexpended surplus funds school districts can keep from 4% to 6% of their annual budget.
Why it matters
Allows school districts to keep a larger “rainy day” fund. , potentially giving them more flexibility to handle unexpected costs or economic downturns without immediately needing to raise taxes or cut programs.
May reduce year-to-year budget volatility. , since districts can retain a higher percentage of their surplus, making it easier to smooth out fluctuations in revenue or expenses.
Could impact local taxpayers. by potentially delaying property tax increases, but might also reduce immediate pressure on districts to return surplus funds to taxpayers as tax relief.
Shifts fiscal management approaches. for school boards, giving them more leeway in budgeting and financial planning, which could affect how resources are allocated among educational programs, staffing, and facilities.
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Who cares
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 local government
- Referred to local government
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
340
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. AKSHAR -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to school district unexpended surplus funds
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 six 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.
LBD05135-01-9
S. 340 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 July 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to school district unexpended surplus funds
Purpose or general idea of bill
This bill increases the amount of unexpended surplus funds which may be maintained by a school district into the next school year.
Summary of specific provisions
Section 1 of the bill would amend subdivision 1 of section 1318 of the real property tax law to change the threshold for a school district's unexpended surplus funds to be applied to the proposed tax levy from four percent to six percent.
Section 2 of the bill establishes the effective date.
Justification
School districts are currently limited to carrying a maximum of four percent of their budget into the following school year. These unexpended excess funds, often referred to as a "fund balance," help school districts deal with unexpected costs, including special education expenses and emergency capital projects. The funds also allow districts to address revenue shortfalls and other mid-year funding reductions. However, the four percent limit covers less than three weeks of school district expenses. This level of fund balance is well below the Govern- ment Finance Officers Association's recommendation for governments of no less than two month's worth of operating expenses. Comparatively, munic- ipal governments throughout the state have no specific percentage limi- tation on fund balances and must only keep fund balances within a "reasonable" amount. Based on that requirement, non-school district municipalities often maintain a fund balance well over six percent. A six percent limit would allow school districts to carry approximately a month's worth of expenses and assist them in maintaining a fiscally responsible budget throughout the school year in order to better serve their students.
Legislative history
S4724A of 2018: Referred to Local Government S4724A of 2017: Advanced to Third Reading
Fiscal implications
None.
Effective date
This act shall take effect July 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.