What's happening
This bill temporarily increases the allowable surplus funds for New York school districts from 4% to 5% of the budget for the 2026-2029 school years.
Why it matters
Gives school districts more financial flexibility. by allowing them to keep a higher percentage of surplus funds (up to 5% of their annual budget) for three years, potentially improving their ability to handle unexpected expenses or revenue shortfalls.
May help districts avoid mid-year cuts or borrowing,. as larger reserves can act as a buffer against economic downturns, changes in state aid, or emergencies such as facility repairs and public health crises.
Could impact property taxpayers. by reducing pressure on districts to return surplus funds as tax relief, possibly resulting in higher local tax levies or slower increases in future years.
Signals a temporary policy shift. that acknowledges current fiscal uncertainties facing schools, while still planning a return to stricter surplus limits after the three-year period.
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Who cares
School boards and trustees
The bill would let districts retain operating funds up to five percent of their current-year budgets, rather than four percent, before treating them as surplus for the 2026–27 through 2028–29 school years.
School district budget officials
The higher threshold would give districts more room to retain operating funds instead of applying them to determine the school tax levy.
School property taxpayers
Districts could retain more operating funds before those funds must generally be applied in determining the school tax levy.
Headline styles
Let Schools Keep More Surplus
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to real property taxation
- Referred to real property taxation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
351
2025-2026 Regular Sessions
IN ASSEMBLY (Prefiled)
January 8, 2025
Introduced by M. of A. PAULIN, OTIS -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to surplus funds
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1318 of the real property tax law, as amended by chapter 238 of the laws of 2007, is amended to read as follows:
1. The warrant of the collecting officer shall be signed by the trustee, or the trustees, or a majority of them, or the board of education or a majority thereof. Such warrant shall state the amount of unexpended surplus funds in the custody of the board and shall further state that except as authorized or required by law, such unexpended surplus funds have been applied in determining the amount of the school tax levy. For the two thousand seven--two thousand eight school year, surplus funds as used in this subdivision shall mean any operating funds in excess of three percent of the current school year budget, and shall not include funds properly retained under other sections of law; provided however, that for the two thousand twenty-six--two thousand twenty-seven school year, the two thousand twenty-seven--two thousand twenty-eight school year, and the two thousand twenty-eight--two thousand twenty-nine school year, surplus funds as used in this subdivision shall mean any operating funds in excess of five percent of the current school year budget, and shall not include funds properly retained under other sections of law. For the two thousand eight--two thousand nine school year, and thereafter, surplus funds as used in this subdivision shall mean any operating funds in excess of four percent of the current school year budget, and shall not include funds properly retained under other sections of law. Such warrant shall have the same force and effect as a warrant issued by a board of supervisors to a collecting officer in a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00848-01-5
town. The collecting officer to whom it may be delivered for collection shall be thereby authorized and required to collect from every person named on such school tax roll the sum set opposite [his] such person's name, or the amount due from any person specified therein, in the same manner and with the same powers that collecting officers in towns are authorized to collect taxes levied by the board of supervisors.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.