What's happening
This bill creates an endowment fund for SUNY and CUNY, funded partly by legal settlements, to supplement state support for higher education.
Why it matters
Creates a stable, long-term funding source for SUNY and CUNY. by establishing an endowment fund, with the principal preserved and only investment earnings spent, which could help insulate the universities from year-to-year budget fluctuations.
Directs a portion of legal settlement proceeds (10%) to higher education,. meaning that significant state windfalls from lawsuits or legal actions would directly benefit public colleges and universities, potentially providing a new, recurring revenue stream.
Mandates that endowment distributions supplement—not replace—state funding,. aiming to ensure that this new fund adds to existing support rather than allowing the state to reduce its regular appropriations, thereby truly increasing resources for SUNY and CUNY.
Allows flexible use of investment earnings. for a wide range of university needs (e.g., hiring more faculty, student financial aid, research grants), giving SUNY and CUNY boards the discretion to address pressing priorities and improve educational quality and access.
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Who cares
- Likely support
SUNY and CUNY boards of trustees
The bill would create an endowment whose investment earnings would support purposes they determine, supplementing rather than replacing state appropriations.
SUNY and CUNY students and faculty
Endowment earnings could fund student financial aid, additional full-time faculty positions and research grants.
State comptroller
The comptroller would hold and invest the endowment as trustee, preserving its principal and distributing investment income pursuant to appropriation.
State agencies bringing legal claims
Ten percent of money received from settlements, compromises or judgments arising from claims brought by the state or its agencies would go to the endowment.
Headline styles
Create SUNY and CUNY Endowment
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to finance
- Referred to finance
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.
Create SUNY/CUNY Endowment Fund
In Assembly Committee · Higher Education · Sponsor Deborah Glick
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4447
2019-2020 Regular Sessions
IN SENATE
March 11, 2019
Introduced by Sens. MAY, BENJAMIN, GOUNARDES, JACKSON, KENNEDY, MONTGOM- ERY, SALAZAR, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to establishing the state university of New York and the city university of New York endowment fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The state finance law is amended by adding a new section 92-ii to read as follows:
§ 92-ii. State university of New York and city university of New York endowment fund. 1. There is hereby established in the custody of the comptroller a fund to be known as the state university of New York and city university of New York endowment fund. Notwithstanding any other provision of law, all of the assets and income of the endowment shall be held and invested by the comptroller as trustee of such endowment, except such income as may be allocated or distributed by the comptroller pursuant to appropriation.
2. The endowment shall consist of amounts transferred into such endowment, and any other amounts as may be deposited in the endowment from other public or private sources. Notwithstanding any provision of the law to the contrary, in addition to any other amounts transferred or deposited, ten percent of all moneys received as the result of the settlement or compromise of or from any judgment arising from any claim or cause of action brought by the state or any agency thereof shall be transferred and paid to the state comptroller, and the comptroller shall deposit such moneys into the state university of New York and city university of New York endowment fund.
3. Amounts transferred to or deposited into the endowment shall be dedicated to the state university of New York and/or the city university of New York, and shall be used for no other purpose, and distributions
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05014-01-9
S. 4447 2
from the endowment shall be used to supplement, rather than supplant, appropriations from the state in support of the state university of New York and the city university of New York. The full amount of the principal of the endowment shall be preserved and annual payments shall be made from the investment earnings of the endowment in support of the state university of New York and the city university of New York, to provide funding for purposes as determined by the boards of trustees of the state university of New York and the city university of New York which may include, but shall not be limited to, employment of additional full-time faculty members, student financial aid to improve access, grants for research and development, and for additional higher education purposes as may be authorized.
§ 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 state finance law, in relation to establishing the state university of New York and the city university of New York endowment fund
Purpose
The purpose of this bill is to create an endowment fund for both the state university of New York and the city university of New York with funds being held and invested by the Comptroller.
Summary of provisions
Section 1. Amends the state finance law by adding section 92-ii which establishes the state university of New York and the city university of New York endowment fund which will be in the custody of the Comptroller. The assets and income held within the funds will be held and invested by the Comptroller as the trustee. The state university of New York endow- ment fund and the city university of New York endowment fund will be made up of any funds that are transferred to these endowments as well as any other deposits made from other public or private sources. Also, ten percent of money received from settlements or judgments in claims or causes of actions by the state or any agency will be transferred to the Comptroller where it will in turn be transferred to the endowment funds. Funds that are transferred to these endowment funds are solely for use by the state university of New York and the city university of New York. These funds are also only in place to supplement rather than supplant funds provided by the state. Annual payments from the investment earn- ings of the endowments will be used as determined by the board of trus- tees and may be spent on, but not limited to, areas such as employment of additional full-time faculty members, student financial aid, grants for research and development and other such higher education purposes.
Section 2. Establishes the effective date.
Justification
For too long, our public higher education systems have suffered cuts in the amount of resources provided by the state. This lack of funds, along with growing enrollment, has caused more adjunct faculty to be hired instead of full time faculty. Both SUNY and CUNY have lamented the fact that their fiscal status prevents replacing adjunct faculty with full time faculty at a faster rate. It is thought that additional funds from an endowment could assist the systems in this regard.
An active endowment fund encourages contributions from alumni, faculty and philanthropists. It demonstrates the regard that the State and the community have for our public higher education systems. The funds will also provide much needed resources for faculty, student aid and research and development.
The funding mechanism for the endowment does not require taxpayer funds. It uses a portion of any settlements from judgements arising from any claim or cause of action brought by the state. In this way we continue to build our intellectual capital in this state.
Legislative history
New bill. Similar to: A.3715 of 2017-18 A.10297 of 2016
Fiscal implications
To be determined
Effective date
This act will take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.