What's happening
This bill authorizes the Salamanca City School District to create a federal impact aid reserve fund, up to $5 million, to stabilize taxes if federal aid is reduced.
Why it matters
Aims to protect educational services and prevent sudden tax increases. if federal impact aid (which offsets lost property tax revenue due to tax-exempt lands within the school district) is reduced or eliminated, by allowing the district to accumulate up to $5 million in reserve.
Requires local voter approval. before the creation and funding of the reserve, giving the community a direct say in the district’s long-term fiscal planning.
Sets clear rules for fund management. , including how money can be deposited into and withdrawn from the reserve, emphasizing transparency through required disclosures and oversight via the annual budget process.
Provides flexibility to reallocate unused or unnecessary reserve funds. to the annual tax levy, helping avoid unnecessary tax burdens or unused financial resources.
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Who cares
Salamanca school board
The bill would let the board establish a reserve of up to $5 million to stabilize the tax levy if federal impact aid is reduced.
Salamanca district voters
A majority voting on a separate ballot proposition would have to approve the fund and its maximum balance before it could be established.
Salamanca school property taxpayers
The reserve would provide a tax-stabilization cushion against reductions in federal aid that supports services in a district containing tax-exempt Seneca Nation lands.
Salamanca students and families
The reserve is intended to help maintain educational programs and services if federal impact aid is lost.
Headline styles
School District Emergency Aid Fund
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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.
Create School Reserve Fund
In Assembly Committee · Education · Sponsor Joseph Giglio
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
866
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Education
AN ACT to authorize the board of education of the Salamanca city school district to establish a federal impact aid reserve fund in the event federal impact aid is reduced
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. The legislature hereby finds that since certain lands are designated as exempt from taxation, specifically the Allegany Territory of the Seneca Nation of Indians which is within the Salamanca city school district, the Salamanca city school district receives federal impact aid for support of services to students. Responsible fiscal planning requires establishment of a federal impact reserve fund for the purpose of stabilizing the tax levy while maintaining educational programming and services, in the event that such aid is no longer provided to such district.
§ 2. Definitions. As used in this act:
(a) "Board of education" or "board" means the board of education of the district.
(b) "Federal impact aid reserve fund" or "fund" means the district federal impact aid reserve fund established pursuant to this act in the event of reduction or loss of federal impact aid.
(c) "School district" or "district" means the Salamanca city school district.
§ 3. The board of education is hereby authorized to establish a federal impact aid reserve fund for the purpose of tax stabilization in the event federal impact aid is reduced provided that the amount of such reserve shall not exceed five million dollars ($5,000,000); provided, however, that no such fund shall be established unless approved by a majority vote of the voters of the district present and voting on a separate ballot proposition therefor at either a special district meet-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04038-01-9
S. 866 2
ing which the board of education may call for such purpose or at the annual district meeting and election, to be noticed and conducted in either case in accordance with article 41 of the education law. Such separate proposition shall set forth the maximum allowable balance to be deposited and held in the federal impact aid reserve fund. Moneys shall be paid into and withdrawn from the fund and the fund shall be administered as follows:
(a) the board of education is hereby authorized to make payments into the federal impact aid reserve fund with funds from any unassigned fund balance which accrued prior to the establishment of the federal impact aid reserve fund in an amount not to exceed the balance over any maximum allowable balance in such unassigned fund balance and from any reserve funds authorized or required by law in amounts which the board of education shall determine are not reasonably necessary for the purpose of such fund or funds and which accrued prior to the federal impact aid reserve fund provided that no such payment from any unassigned fund balance or any reserve fund shall cause the balance of the fund to exceed the amount approved in the ballot proposal described in this section;
(b) the board of education shall determine that the original purpose for which a reserve fund has been established is no longer desirable, the school authorities may liquidate such fund by applying the balance thereof to the annual tax levy, regardless of the tax rate for school purposes, without authorization of the voters. Withdrawals from the fund shall be disclosed in a manner consistent with the required disclosures of similar reserve funds held by the district, including disclosures required by the property tax report card prepared by the district pursuant to the provisions of subdivision 7 of section 1716 of the education law; and deposits and withdrawals made in each fiscal year shall be subject to the district's annual budget approval process; and
(c) the moneys in the federal impact aid reserve fund shall be deposited, invested and accounted for in the manner provided for in subdivisions 2 and 6 of section 3651 and section 3652 of the education law.
§ 4. 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 authorize the board of education of the Salamanca city school district to establish a federal impact aid reserve fund in the event federal impact aid is reduced
Purpose
Authorizes the City School District of the City of Salamanca to estab- lish a reserve fund for federal impact aid in the event that such aid is reduced.
Summary of provisions
Section 1. Provides Legislative Findings.
Section 2. Provides definitions used in the act.
Section 3. Authorizes the City School District of the City of Salamanca to establish a reserve fund for federal impact aid in the event that such aid is reduced and establishes provisions for such reserve fund.
Section 4. Provides that the act shall take effect immediately.
Justification
Salamanca City School District receives federal impact aid for support of services to students because of the geographic location of Federal Lands, specifically the Allegany Territory of the Seneca Nation of Indi- ans, within the district. These lands are designated as exempt from taxation. The amounts of such aid the district receives from year to year are subject to variations over which the district has no control. Responsible fiscal planning requires establishment of a federal impact reserve fund for the purpose of stabilizing the tax levy while maintain- ing educational programming and services.
Legislative history
2018: S.6418B/A.6795-D Passed Senate
2017: S.6814/A.6795-8 Referred to Education
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.