What's happening
This bill allows school districts to receive additional state building aid for debt service costs related to tax certiorari financing.
Why it matters
Helps school districts manage large, unexpected tax certiorari payouts. (when property owners successfully challenge their taxes and the district must refund money), by providing extra state aid specifically for the debt service costs of bonds used to pay these settlements.
Targets districts facing unusually large financial burdens. the aid is only available if the bond issued is larger than the school district’s total general fund spending from the previous year, meaning this measure is aimed at rare, extreme cases that could threaten district finances.
Incentivizes transparency and accountability. by requiring districts to submit detailed documentation (including bond schedules and original settlement information) to the state education commissioner, and to provide updates if bonds are refinanced, ensuring continued oversight.
Provides a formula for enhanced aid. by adding an extra 10% to the standard building aid ratio when calculating how much the state will reimburse, offering districts a meaningful boost in state support for these specific, high-cost circumstances.
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Who cares
Headline styles
Increase School Building Aid
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 39
No co-sponsors yet.
History
- Referred to education
- Referred to rules
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.
Help Schools Pay Tax Debts
In Assembly Committee · Education · Sponsor Kenneth Zebrowski
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6323
2019-2020 Regular Sessions
IN SENATE
June 5, 2019
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the education law, in relation to building aid for approved expenditures for debt service for tax certiorari financing
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3602 of the education law is amended by adding a new subdivision 6-i to read as follows:
6-i. Building aid for approved expenditures for debt service for tax certiorari financing. In addition to the apportionments payable to a school district pursuant to subdivision six of this section, beginning with debt service in the two thousand nineteen--two thousand twenty school year and thereafter, the commissioner is hereby authorized to apportion to any school district additional building aid pursuant to this subdivision for its approved debt service expenditures for financing the cost of a tax certiorari, where the total value of the bond exceeds the total general fund expenditures for the school district for the year prior to the year in which the school district first receives bond proceeds. In order to have such debt service expenditures approved, the school district shall submit to the commissioner, in a form he or she prescribes, documentation relating to the issuance of such bond, including but not limited to the original tax certiorari, the amortization schedule of such bond, and any other documentation deemed necessary. Provided, however, that in the event it refunds the original bond at any point, the school district shall provide such updated documentation as required by the commissioner, who shall adjust the annual approved expenditures accordingly. Such aid shall equal the product of the sum of (1) the building aid ratio defined pursuant to paragraph c of subdivision six of this section plus (2) one-tenth (0.1) multiplied by the actual approved debt service expenditures incurred in the base year pursuant to this subdivision.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11981-01-9
S. 6323 2
§ 2. This act shall take effect immediately. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
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 building aid for approved expenditures for debt service for tax certior- ari financing
Purpose
To provide relief to taxpayers of school districts confronting tax certiorari payments that exceed the total general fund expenditures of t he school district.
Summary of provisions
Section 1: Amends section 3602 of the education law is amended by adding a new subdivision 6i which authorizes the commissioner to apportion additional building aid pursuant to this subdivision for a district's approved debt service expenditures for financing the cost of a tax certiorari in cases where the total value of the bond exceeds the total general fund expenditures for the school district for the year prior to the year in which the district first received bond proceeds. The district will need to submit documentation required by the commissioner in order to receive the additional aid.
The bill specifies a formula for the additional aid.
Section 2: Effective date
Justification
A small number of school districts, exemplified by the North Rockland Central School District in Rockland County, are struggling under the burdens of enormous tax certiorari payments. In the case of North Rock- land, the district's taxpayer are bearing the brunt of the largest tax certiorari settlement in NY State history; the district is paying more than $11 million per year in debt payments on the bond related to the tax certiorari settlement. Property taxes for residents have gone up dramatically to pay for this settlement, teachers have been laid off, and class sizes have grown. Yet without additional support from the state, the district may soon face bankruptcy-the first such district in the state to be confronted with this drastic proposition. As such, ensuring state support to the beleaguered taxpayers of this district and any other similarly situated district, is vital. Without the state step- ping in to assist affected districts, children will continue to pay the price as their academic programs and services are slashed or eliminated.
Legislative history
None
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately. Effective immediately, the addi- tion, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.