Limits the reimbursement rate paid by the city school district to a charter school for charter school facilities expansion in a city school district located in a city having a population of one million or more inhabitants by changing "actual rental costs" to "reasonable rental costs"; defines "reasonable rental costs".
STATE OF NEW YORK
________________________________________________________________________
1420
2025-2026 Regular Sessions
IN SENATE
January 9, 2025
___________
Introduced by Sen. LIU -- read twice and ordered printed, and when
printed to be committed to the Committee on New York City Education
AN ACT to amend the education law, in relation to the reimbursement rate
for charter school facilities expansion in a city school district in a
city having a population of one million or more inhabitants
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph 5 of paragraph (e) of subdivision 3 of section
2 2853 of the education law, as amended by section 11 of part A of chapter
3 54 of the laws of 2016, clause (B) as amended by section 5 of part YYY
4 of chapter 59 of the laws of 2017, is amended to read as follows:
5 (5) (A) For a new charter school whose charter is granted or for an
6 existing charter school whose expansion of grade level, pursuant to this
7 article, is approved by their charter entity, if the appeal results in a
8 determination in favor of the charter school, the city school district
9 shall pay the charter school an amount attributable to the grade level
10 expansion or the formation of the new charter school that is equal to
11 the lesser of:
12 [(A)] (i) the [actual] reasonable rental cost of an alternative
13 privately owned site selected by the charter school or
14 [(B)] (ii) thirty percent of the product of the charter school's basic
15 tuition for the current school year and [(i)] (1) for a new charter
16 school that first commences instruction on or after July first, two
17 thousand fourteen, the charter school's current year enrollment; or
18 [(ii)] (2) for a charter school which expands its grade level, pursuant
19 to this article, the positive difference of the charter school's enroll-
20 ment in the current school year minus the charter school's enrollment in
21 the school year prior to the first year of the expansion.
22 (B) For purposes of this subparagraph, the "reasonable rental cost of
23 an alternative privately owned site" shall mean a rental cost that is
24 reasonable, appropriate, and comparable to the rental costs of facili-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03870-01-5
S. 1420 2
1 ties at a similar location, and of a comparable quality, condition and
2 size, not to exceed the actual rental cost incurred by the charter
3 school. Reasonable rental costs may only be applied to physical facili-
4 ties that are or will be in use by the charter school as a school during
5 the full term of the lease or sublease. Reasonable rental costs shall
6 not include the cost of construction or renovation.
7 § 2. This act shall take effect immediately.
