What's happening
This bill changes the payment schedule from school districts to charter schools, requiring payments each quarter as state aid is received.
Why it matters
Aligns charter school payments with the timing of state aid received by school districts. , which could help districts better manage cash flow and budgeting, but may introduce variability in when charter schools actually receive funds.
Moves away from a predictable, fixed bi-monthly payment schedule to a quarterly system tied to state funding cycles. , potentially impacting charter schools’ ability to plan for regular expenses and payroll if state aid is delayed or varies in timing.
Could create greater transparency and accountability in the transfer of funds. , as payments to charter schools will now directly reflect the actual flow of state aid, possibly reducing disputes over payment timing or amounts.
May affect charter school operations, especially for newer or smaller schools. , since their financial planning and stability will now be more closely linked to the state’s own disbursement schedule, making them more vulnerable to state-level delays or changes in aid distribution.
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Who cares
Headline styles
Change Charter School Payments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to education
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6888
2019-2020 Regular Sessions
IN SENATE
December 6, 2019
Introduced by Sen. MAY -- 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 payments made by school districts to charter schools
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 1 of section 2856 of the education law, as amended by section 4 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows:
(b) The school district shall also pay directly to the charter school any federal or state aid attributable to a student with a disability attending charter school in proportion to the level of services for such student with a disability that the charter school provides directly or indirectly. Notwithstanding anything in this section to the contrary, amounts payable pursuant to this subdivision from state or local funds may be reduced pursuant to an agreement between the school and the charter entity set forth in the charter. Payments made pursuant to this subdivision shall be made by the school district [in six substantially equal installments each year beginning on the first business day of July and every two months thereafter] each quarter, at the time and in the same proportion the school district receives its state aid. Amounts payable under this subdivision shall be determined by the commissioner. Amounts payable to a charter school in its first year of operation shall be based on the projections of initial-year enrollment set forth in the charter until actual enrollment data is reported to the school district by the charter school. Such projections shall be reconciled with the actual enrollment as actual enrollment data is so reported and at the end of the school's first year of operation and each subsequent year based on a final report of actual enrollment by the charter school, and any necessary adjustments resulting from such final report shall be made to payments during the school's following year of operation.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13714-01-9
S. 6888 2
§ 2. Paragraph (b) of subdivision 1 of section 2856 of the education law, as amended by section 4-a of part YYY of chapter 59 of the laws of 2017, is amended to read as follows:
(b) The school district shall also pay directly to the charter school any federal or state aid attributable to a student with a disability attending charter school in proportion to the level of services for such student with a disability that the charter school provides directly or indirectly. Notwithstanding anything in this section to the contrary, amounts payable pursuant to this subdivision may be reduced pursuant to an agreement between the school and the charter entity set forth in the charter. Payments made pursuant to this subdivision shall be made by the school district [in six substantially equal installments each year beginning on the first business day of July and every two months thereafter] each quarter, at the time and in the same proportion the school district receives its state aid. Amounts payable under this subdivision shall be determined by the commissioner. Amounts payable to a charter school in its first year of operation shall be based on the projections of initial-year enrollment set forth in the charter. Such projections shall be reconciled with the actual enrollment at the end of the school's first year of operation, and any necessary adjustments shall be made to payments during the school's second year of operation.
§ 3. This act shall take effect on the first of July next succeeding the date upon which it shall have become a law, provided that the amendments to paragraph (b) of subdivision 1 of section 2856 of the education law made by section one of this act shall be subject to the expiration and reversion of such subdivision pursuant to subdivision d of section 27 of chapter 378 of the laws of 2007, as amended, when upon such date the provisions of section two of this act shall take effect.
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 payments made by school districts to charter schools
Purpose or general idea of bill
This bill requires that reimbursements to school districts for payments to charter schools mirror those payments.
Summary of specific provisions
Paragraph (b) of subdivision 1 of section 2856 of the education law, as amended by section 4 of part YYY of chapter 59 of the laws of 2017, is amended to provide that payments shall be made by the school district each quarter, at the time and in the same proportion the school district receives its state aid.
Paragraph (b) of subdivision 1 of section 2856 of the education law, as amended by section 4-a of part YYY of chapter 59 of the laws of 2017, is amended to provide that payments shall be made by the school district each quarter, at the time and in the same proportion the school district receives its state aid.
Justification
Currently, public school districts must advance school aid to charter schools and wait several months for reimbursement. This would allow that those funds be paid to the school district at the time the districts are required to pay the charter school.
Prior legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect on July 1st after enactment, provided that the amendments to paragraph (b) of subdivision 1 of section 2956 of the education law made by section one of this act shall be subject to the expiration and reversion of such subdivision pursuant to subdivision d of section 27 of chapter 378 of the laws of 2007, as amended, when upon such date the provisions of section two of this act shall take effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.