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A06503 Summary:

BILL NOA06503
 
SAME ASSAME AS S04724
 
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: A6503
 
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 PROVISIONS: 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 ten 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 less 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 must only keep fund balances within a "reasonable" amount. Based on that requirement, non-school district municipalities often maintain a fund balance well over ten percent. An ten 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
 
                               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
 
        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  ten 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
    25  officer  to  whom  it  may  be delivered for collection shall be thereby
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10193-01-7

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