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A06503 Summary:

BILL NOA06503A
 
SAME ASSAME AS S04724-A
 
SPONSORLupardo
 
COSPNSR
 
MLTSPNSR
 
Amd 1318, RPT L
 
Relates to school district unexpended surplus funds; provides that for the 2017-2018 school year and thereafter, surplus funds shall mean any operating funds in excess of ten percent of the current school year budget, and shall not include funds properly retained under other sections of law.
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A06503 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6503A
 
SPONSOR: Lupardo
  TITLE OF BILL: An act to amend the real property tax law, in relation to school district unexpended surplus funds   PURPOSE: This bill increases the amount of unexpended surplus funds which may be maintained by a school district into the next school Year.   SUMMARY OF PROVISION: Section 1 of the bill would amend subdivision 1 of section 1318 of the real property tax law to change the threshold for a school district's unexpended surplus funds to be applied to the proposed tax levy from four percent to six percent. Section 2 of the bill establishes the effective date.   JUSTIFICATION: School districts are currently limited to carrying a maximum of four percent of their budget into the following school year. These unexpended excess funds, often referred to as a "fund balance," help school districts deal with unexpected costs, including special education expenses and emergency capital projects. The funds also allow districts to address revenue shortfalls and other mid-year funding reductions. However, the four percent limit covers loss than three weeks of school district expenses. This level of fund balance is well below the Govern- ment Finance Officers Association's recommendation for governments of no less than two month's worth of operating expenses. Comparatively, munic- ipal governments throughout the state have no specific percentage limi- tation on fund balances and mint only keep fund balances within a "reasonable" amount. Based on that requirement, non-school district municipalities Often maintain a fund balance well over six percent. A six percent limit would allow school districts to carry approximately a month's worth of expenses and assist them in maintaining a fiscally responsible budget throughout the school year in order to better serve their students.   LEGISLATIVE HISTORY: None.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: The act shall take effect July 1, 2017
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A06503 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6503--A
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 7, 2017
                                       ___________
 
        Introduced  by M. of A. LUPARDO -- read once and referred to the Commit-
          tee on  Education  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend  the  real  property  tax  law, in relation to school
          district unexpended surplus funds

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 1 of section 1318 of the real property tax law,
     2  as  amended  by  chapter  238 of the laws of 2007, is amended to read as
     3  follows:
     4    1. The warrant of the collecting officer shall be signed by the  trus-
     5  tee,  or  the trustees, or a majority of them, or the board of education
     6  or a majority thereof. Such warrant shall state the amount of unexpended
     7  surplus funds in the custody of the board and shall further  state  that
     8  except  as  authorized or required by law, such unexpended surplus funds
     9  have been applied in determining the amount of the school tax levy.  For
    10  the two thousand seven--two thousand eight school year, surplus funds as
    11  used  in  this  subdivision  shall mean any operating funds in excess of
    12  three percent of the current school year budget, and shall  not  include
    13  funds  properly  retained under other sections of law. For the two thou-
    14  sand eight--two thousand nine school year[, and thereafter] through  the
    15  two  thousand sixteen--two thousand seventeen school year, surplus funds
    16  as used in this subdivision shall mean any operating funds in excess  of
    17  four  percent  of  the current school year budget, and shall not include
    18  funds properly retained under other sections of law. For the  two  thou-
    19  sand  seventeen--two  thousand  eighteen  school  year,  and thereafter,
    20  surplus funds as used in this subdivision shall mean any operating funds
    21  in excess of six percent of the current school year  budget,  and  shall
    22  not  include  funds  properly retained under other sections of law. Such
    23  warrant shall have the same force and effect as a warrant  issued  by  a
    24  board  of  supervisors to a collecting officer in a town. The collecting
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10193-03-7

        A. 6503--A                          2
 
     1  officer to whom it may be delivered  for  collection  shall  be  thereby
     2  authorized  and  required  to  collect  from  every person named on such
     3  school tax roll the sum set opposite his name, or the  amount  due  from
     4  any  person  specified  therein,  in  the  same manner and with the same
     5  powers that collecting officers in towns are authorized to collect taxes
     6  levied by the board of supervisors.
     7    § 2. This act shall take effect July 1, 2017.
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