What's happening
This bill allows the Oswego city school district to set up an insurance reserve fund.
Why it matters
Directly impacts the Oswego city school district. by granting it new authority to establish an insurance reserve fund—a financial tool that helps manage unexpected costs from lawsuits or claims, potentially increasing fiscal stability for the district.
Aligns Oswego with other NY school districts. that already have this option, meaning Oswego will now have the same financial risk management capabilities as many peer districts across the state, especially important for budgeting and long-term planning.
Could lead to more prudent use of taxpayer funds. by reducing the need for emergency budget adjustments or borrowing when facing insurance-related expenses, ultimately benefiting local taxpayers, school administrators, and students through steadier school finances.
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Who cares
Oswego City School District
Gains the ability to create and use an insurance reserve fund, which can help manage financial risks related to insurance claims, losses, or judgments.
Oswego School District Taxpayers and Residents
May benefit from increased financial stability and risk management within the district, potentially reducing the impact of unexpected insurance-related costs on budgets and taxes.
Local Government Officials and School Administrators
Interested in the expanded fiscal tools available to manage liabilities and ensure compliance with state laws regarding insurance reserves.
- Watching
Other New York School Districts
May watch closely as precedent, especially those not currently permitted to establish such funds, to assess the impact and potential for future legislative inclusion.
Headline styles
Allow Oswego Schools Insurance Fund
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.623
- Substituted for A11391
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 61–0
- Ordered to third reading cal.1582
- Committee discharged and committed to rules
- Referred to local government
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.
Allow Oswego School Insurance Fund
Assembly Floor Calendar · Sponsor William A. Barclay
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10396
IN SENATE
May 15, 2026
Introduced by Sen. C. RYAN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, in relation to permitting the Oswego city school district to create an insurance reserve fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 2 of section 6-n of the general municipal law, as separately amended by chapters 486, 515 and 525 of the laws of 2024, is amended to read as follows:
(a) The governing board of any municipal corporation may establish a reserve fund to be known as the insurance reserve fund. Upon the creation of the fund, the municipality may make expenditures from the fund for any loss, claim, action or judgment for which the municipal corporation is authorized or required to purchase or maintain insurance, except those kinds of risks for which insurance is authorized pursuant to paragraph one, two, three, fifteen, sixteen, seventeen, eighteen, twenty-two or twenty-three of subsection (a) of section one thousand one hundred thirteen of the insurance law, or for payments in lieu of contributions under article eighteen of the labor law; provided however, that no municipality shall make an expenditure from such fund for any loss, claim, action or judgment for which the municipal corporation has established a reserve fund under any other provision of law; provided, further that the Scarsdale union free school district, the Mamaroneck union free school district, the Minisink Valley central school district, the Vernon Verona Sherrill central school district, the Ithaca city school district, the Kenmore-Town of Tonawanda union free school district, the Bedford central school district, the Grand Island central school district, the Tonawanda city school district, the enlarged city school district of Middletown, the Frontier central school district, the Owego Apalachin central school district, the Maine-Endwell central school district, the Binghamton city school district, the Candor central school district, the Cleveland Hill union free school district, the Depew union free school district, the Iroquois central school district, the Liverpool central school district, the Auburn enlarged city school
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14170-01-5
district, the Carmel central school district, the Clarence central school district, the Fulton city school district, [and] the Canastota central school district, and the Oswego city school district may establish insurance reserve funds in compliance with this section and article seventy-four of the education law and such school districts may make expenditures in compliance with this section and article seventy-four of the education law from such reserve fund for any loss, claim, action or judgment for which the school districts are authorized or required to purchase or maintain insurance for the kinds of risks for which insurance is authorized pursuant to paragraph three of subsection (a) of section one thousand one hundred thirteen of the insurance law.
§ 2. 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 amend the general municipal law, in relation to permitting the Oswego city school district to create an insurance reserve fund
Purpose
To authorize the Oswego City School District to establish an insurance reserve fund to make expenditures related to health-related claims.
Summary of provisions
Section one amends the general municipal law governing insurance reserve funds to permit the Oswego City School District to establish such reserve funds.
Section 2. Establishes the effective date.
Justification
In an effort to contain costs associated with increasing health insur- ance premiums, which creates a significant strain on school budgets annually, many school districts have opted to move to a self-insurance model for health benefit programs as opposed to traditional premium based programs. The Oswego City School District has determined that a self-insurance model is a lower cost method of delivering health insur- ance to its employees, thereby lowering the district's budgetary expenses. Nonetheless, the challenge with such a model is the unpredict- ability of claims. Such fluctuations in claims, coupled with the exist- ing statutory restrictions related to fund balances, necessitate this authorization.
Legislative history
New bill.
Fiscal implications
TBD
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.