BILL NO A10039
SAME AS SAME AS S06743
SPONSOR Rules (Steck)
Amd Art 8 S4, Constn
Increases the limitation on indebtedness that may be incurred by certain school
districts from five percent to ten percent.
TITLE OF BILL: CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 4 of article 8 of the constitution,
in relation to increasing the limitation on indebtedness that may be
incurred by certain school districts
PURPOSE: This bill would increase the limitation of indebtedness that
may be incurred by school districts in cities of 125,000 residents or
less from five percent to ten percent.
SUMMARY OF PROVISIONS:
Section 1 subdivision ill) of section 4 of article 8 of the
constitution is amended by changing the percentage given to school
districts of 125,000 residents or less to 10% for specified objects in
relation to indebtedness.
JUSTIFICATION: A number of small city school districts have been up
against the indebtedness cap contained in the New York. State
Constitution for some time.
School districts within small cities are now under the Tax Levy Cap
that was enacted in 2011. The constitutional limit on small cities is
a vestige of a bygone era when city governments were concerned that
newly formed school districts would consume their municipal budgets.
The authorization of an increased limit is appropriate with the
safe-guards and accountability that are now in place. An increase in
indebtedness could only occur with a public vote and one in which the
tax cap statutory provisions apply.
Furthermore, under the provisions of this bill, a constitutional limit
on small city school district indebtedness would still exist. The
raising of the limitation, however, from five percent of the full
valuation of taxable real estate of such city to ten percent, would
give these school districts and their voters much needed flexibility
in developing budgets that meet current demands.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: Constitutional Amendment. Amendment will be referred
to the first regular legislative session convening after the next.
succeeding general election of members of the Assembly and Senate and
published for 3 months previous to the time of such election.
S T A T E O F N E W Y O R K
I N A S S E M B L Y
June 10, 2014
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Steck) --
read once and referred to the Committee on Education
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 4 of article 8 of the constitution, in
relation to increasing the limitation on indebtedness that may be
incurred by certain school districts
1 Section 1. Resolved (if the Senate concur), That the opening paragraph
2 of subdivision (h) of section 4 of article 8 of the constitution be
3 amended to read as follows:
4 any school district which is coterminous with, or partly within, or
5 wholly within, a city having less than one hundred twenty-five thousand
6 inhabitants according to the latest federal census, for education
7 purposes, [five] TEN per centum; provided, however, that such limitation
8 may be increased in relation to indebtedness for specified objects or
9 purposes with (1) the approving vote of sixty per centum or more of the
10 duly qualified voters of such school district voting on a proposition
11 therefor submitted at a general or special election, (2) the consent of
12 The Regents of the University of the State of New York and (3) the
13 consent of the state comptroller. The legislature shall prescribe by law
14 the qualifications for voting at any such election.
15 S 2. Resolved (if the Senate concur), That the foregoing amendment be
16 referred to the first regular legislative session convening after the
17 next succeeding general election of members of the assembly, and, in
18 conformity with section 1 of article 19 of the constitution, be
19 published for 3 months previous to the time of such election.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.