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S3687Senate2019-2020 SessionSame asA5416

Allow School Tuition Tax Levy

Official title

“Relates to certain tuition payments by school districts for general education and special students residing in such school districts”

Sponsor Kenneth P. LaValleSD-1Affects Education
Status
In Senate Committee
Education
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Education

What's happening

This bill allows school districts to exclude tuition payments for resident students from the property tax cap calculation.

Why it matters

  1. Could reduce pressure on local property taxes. By allowing school districts to exclude tuition payments for resident students from the property tax cap calculation, schools may be able to raise or allocate more funds for other needs without breaching legal limits on tax increases.

  2. May benefit districts with significant tuition obligations. Districts that pay tuition to send students (general or special education) to other schools—such as those without their own high schools or special programs—could see greater budget flexibility and less need to cut other services.

  3. Potential to affect equity among districts. This change could help level the playing field for districts that, due to size or resources, rely more on tuition arrangements, but it could also mean higher tax bills for residents in those areas if districts opt to increase spending.

  4. Shifts how education funding is managed locally. The amendment reflects a policy choice to treat mandated tuition payments differently than other expenses, recognizing them as largely outside district control and thus not subject to the same tax cap constraints.

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Who cares

Headline styles

Allow School Tuition Tax Levy

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Kenneth P. LaValle

Senator · Senate District 1

No co-sponsors yet.

History

  1. Referred to education
  2. Referred to education

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.

A5416Assembly

Help Schools Pay Tuition

In Assembly Committee · Education · Sponsor Fred Thiele

Impact 5 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

S. 3687 A. 5416

2019-2020 Regular Sessions

SENATE - ASSEMBLY

February 12, 2019

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Education

IN ASSEMBLY -- Introduced by M. of A. THIELE, MONTESANO -- read once and referred to the Committee on Education

AN ACT to amend the education law, in relation to certain tuition payments by school districts for general education and special students residing in such school districts

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subparagraphs (iii) and (iv) of paragraph i of subdivision 2 of section 2023-a of the education law, as added by section 2 of part A of chapter 97 of the laws of 2011, are amended and a new paragraph (v) is added to read as follows:

(iii) in years in which the normal contribution rate of the New York state teachers' retirement system, as defined by paragraph a of subdivision two of section five hundred seventeen of this chapter, increases by more than two percentage points from the previous year, a tax levy necessary for expenditures for the coming fiscal year for school district employer contributions to the New York state teachers' retirement system caused by growth in the normal contribution rate minus two percentage points; [and]

(iv) a capital tax levy[.]; and

(v) a tax levy necessary for expenditures for the coming fiscal school year for a school district which makes payments to one or more school districts to pay for tuition for general education and special students residing in such school district.

§ 2. This act shall take effect immediately and shall first apply to school district budgets and the budget adoption process for the 2019-2020 school year; and shall continue to apply to school district budgets and the budget adoption process for any school year beginning in

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD03180-01-9

S. 3687 2 A. 5416

any calendar year during which this act is in effect; provided, however, that the amendments to section 2023-a of the education law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

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 certain tuition payments by school districts for general education and special students residing in such school districts

Purpose

Relates to certain tuition payments by school districts for general education and special students residing in such school districts.

Summary of provisions

Sub-paragraphs (iii) and (iv) of paragraph i of subdivision 2 of Section 2023-a of the Education Law, as added by Section 2 of part A of Chapter 97 of the Laws of 2011, are amended and a new paragraph (v) is added to exclude from the tax levy limit a tax levy necessary for expenditures for the coming fiscal school year for a school district with makes payments to one or more school districts to pay for tuition for general education and special students residing in such school district.

Justification

Many school districts without a middle school and/or high school pay tuition for their secondary students to attend another school district. As a result of annual fluctuations in enrollment in general education and special education tuition students and because the rates are computed by the State Education Department's Seneca Falls formula, the budgetary increases that many of these school districts are incurring in just tuition payments alone are placing them significantly over the current allowable tax levy limit. This legislation is necessary to exclude from the tax levy limit a tax levy necessary to support expendi- tures for the coming fiscal school year for a school district that makes payments one or more school districts to pay for tuition for general education and special students residing in such school district. Similar to the exemption for pension costs, school districts have no direct control over these costs.

Legislative history

2017-18 S.2979A/A.2340A; 2015-16 S.2361A/A.3113A; 2013-2014 S.4002A/A.5584A; 2012 S.6545/A.9365.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall first apply to school district budgets and the budget adoption process for the 2019-20 school year; and shall continue to apply to school district budgets and the budget adoption process for any school year beginning in any calendar year during which this act is in effect; provided, however, that the amendments to Section 2023-a of the Education Law made by Section 1 of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.