What's happening
This bill requires the state to offset overpayments to school districts by first applying any unpaid prior year claims owed to those districts.
Why it matters
Improves fairness and accuracy in school funding. By requiring the state to check for and apply any unpaid prior year claims before deducting overpayments, the bill helps ensure districts are not penalized for administrative delays or errors in disbursing funds.
Protects district budgets from abrupt funding losses. Offsetting overpayments with money already owed to a district can soften the financial impact, making school district budgets more predictable and less vulnerable to sudden reductions.
Addresses longstanding payment backlogs. The bill could help resolve situations where districts wait years for state aid payments, making the process more transparent and efficient by linking overpayment recovery to outstanding claims.
Reduces administrative burden and disputes. By automating the offset process, the bill may decrease the need for districts to appeal or negotiate with the state regarding overpayments and underpayments, leading to smoother financial operations for schools.
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Who cares
Headline styles
Offset Old School Payment Debts
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
542
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 Education
AN ACT to amend the education law, in relation to payment of moneys due for prior years
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph c of subdivision 5 of section 3604 of the education law, as added by chapter 82 of the laws of 1995, is amended to read as follows:
c. Payment of moneys due for prior years. (i) State aid payments due for prior years in accordance with the provisions of this subdivision shall be paid within the limit of the appropriation designated therefor provided, however, that each eligible claim shall be payable in the order that it has been approved for payment by the commissioner, but in no case shall a single claim draw down more than forty percent of the appropriation so designated for a single year, and provided further that no claim shall be set aside for insufficiency of funds to make a complete payment, but shall be eligible for a partial payment in one year and shall retain its priority date status for appropriations designated for such purposes in future years.
(ii) Notwithstanding the provisions of subparagraph (i) of this paragraph, if a school district is subject to a state aid adjustment pursuant to paragraph a of this subdivision because such district has been apportioned more money than that to which it is entitled, prior to deducting such additional money from future apportionments made to such district, the commissioner shall first determine if such district is owed money for prior year claims pursuant to this paragraph. If such district is owed funds on the prior year adjustment list maintained by the department, prior to deducting any money, the department shall first offset the overpayment amount by the total amount owed on such list regardless of the district's priority date status.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03293-01-9
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 payment of moneys due for prior years
Purpose or general idea of bill
To utilize prior year claims adjustments to offset state aid adjustments for overpayment of funds to school districts.
Summary of specific provisions
Section 3604 of the education law is amended to provide school districts with more timely payments of prior year claims in the event a state aid adjustment is necessary.
Justification
Under current law, if a district is owed funds for a variety of reasons, the state places that districts on a waiting list, known as the prior year adjustment list. Districts are apportioned these owed funds based on the date that the claim was approved by the State Education Depart- ment. As of August, 2016, school districts are owed $338 million on this list and the list is nearly seven years and counting overdue.
For years the budgetary appropriation of less than $20 million has been insufficient to make any real progress in paying back these long overdue claims. This insufficient appropriation has led to more new claims than claims paid back on a year over year basis. This bill would help reduce the total claims on this list without additional appropriations.
Legislative history
2018 - S4476: Passed Senate 2017 - S4476: Passed Senate
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.