What's happening
This bill requires New York State to reimburse school districts for interest and expenses caused by delayed state aid payments.
Why it matters
Shifts financial risk from school districts to the state. By requiring the state to cover interest and extra costs caused by late aid payments, the bill protects school districts from unplanned expenses that could otherwise impact their budgets and local taxpayers.
Creates an incentive for timely state budgeting. Since the state becomes liable for additional costs if it delays its budget past April 1, the bill increases pressure on lawmakers to pass the aid to localities budget on time to avoid extra financial consequences.
Establishes a formal reimbursement process. The bill lays out a clear procedure where school districts can claim reimbursement for their documented expenses, and requires the governor to propose amendments to the budget to cover these costs, ensuring accountability and transparency.
Potentially prevents cuts to educational programs. By ensuring districts are not forced to absorb costs from state delays, the bill helps safeguard educational services and staffing from being reduced to cover unexpected financial shortfalls.
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Who cares
Headline styles
Reimburse Schools for Late Aid
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to education
- Referred to education
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
356
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Education
AN ACT to amend the education law, in relation to providing additional reimbursement to school districts for expenses incurred for failure to receive timely payments of state aid
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The education law is amended by adding a new section 3605 to read as follows:
§ 3605. Additional state reimbursement to school districts. 1. Notwithstanding any inconsistent provision of law, the state shall be liable for any interest payments or ancillary expenses incurred by a school district as a result of the school district not having received timely payments of state aid due to a failure by the state to adopt the aid to localities budget by April first in any fiscal year during which budget bills as defined by article seven of the constitution of the state of New York have not been adopted.
2. Within thirty days after the adoption of such budget bills the governor shall prepare and submit to the legislature chapter amendments to the aid to localities budget providing for additional reimbursement to repay school districts for any and all interest payments or ancillary expenses referenced in subdivision one of this section.
3. Such reimbursement moneys shall be paid upon the audit of vouchers certified by the chief fiscal officer for the school district demanding reimbursement for the interest payments and ancillary expenses incurred by such school district.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05174-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to providing additional reimbursement to school districts for expenses incurred for failure to receive timely payments of state aid
Purpose or general idea of bill
Relates to providing additional reimbursement to school districts for expenses incurred for failure to receive timely payments of state aid.
Summary of specific provisions
The state shall be liable for any interest payments or ancillary expenses incurred by a school district as a result of the school district not having received timely payments of state aid due to a fail- ure by the state to adopt the aid to localities budget by April 1 in any fiscal year during which budget bills have not been adopted.
Within 30 days after the adoption of such budget bills, the governor shall prepare and submit to the legislature, chapter amendments to the aid to localities budget providing for additional reimbursement to repay school districts for any and all interest payments or ancillary expenses.
The reimbursement money shall be paid upon the audit of vouchers certi- fied by the Chief Fiscal Officer for the school district demanding reimbursement for the interest payments and ancillary expenses incurred by the school district.
Justification
Per the National Conference of State Legislatures, New York once went 20 years without passing a budget on time. This puts an inordinate amount of pressure and added costs on school districts. The school districts here in New York State should not have to pay the cost of borrowing when the state fails to pass an on-time budget.
Prior legislative history
02/03/17: S.4144 REFERRED TO EDUCATION 01/03/18: S.4144 REFERRED TO EDUCATION
Fiscal implications
Minimal
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.