Authorizes school districts to borrow against certain reserve funds, pursuant to a resolution adopted by the board of education of such school district.
STATE OF NEW YORK
________________________________________________________________________
7524
2025-2026 Regular Sessions
IN SENATE
April 21, 2025
___________
Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the local finance law, in relation to authorizing school
districts to borrow against certain reserve funds; and to amend the
general municipal law, in relation to making a technical correction
thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The local finance law is amended by adding a new section
2 25.11 to read as follows:
3 § 25.11 Borrowing from reserve funds. a. 1. Pursuant to a resolution
4 adopted by the board of education of any school district, such school
5 district may borrow from certain reserve funds to reduce reliance on tax
6 anticipation notes and revenue anticipation notes.
7 2. Such resolution shall include the following information:
8 (a) the amount to be borrowed;
9 (b) the reserve from which the school district intends to borrow;
10 (c) the amount and source of taxes or other revenue anticipated to be
11 received; and
12 (d) the timeframe in which such taxes or other revenue is anticipated
13 to be received and the schedule upon which repayment shall be made,
14 including a specific date for final repayment; provided, however, that
15 nothing shall prohibit a school district from paying ahead of such sche-
16 dule.
17 3. School districts shall not borrow in excess of seventy-five percent
18 of the total of each reserve fund.
19 b. 1. Borrowing from reserve funds shall be limited to taxes and
20 revenue anticipated to be received in the same fiscal year in which such
21 borrowing takes place; provided, however, that during the final two
22 weeks of a given fiscal year, such borrowing may be initiated by a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11685-01-5
S. 7524 2
1 school district in anticipation of moneys to be received in the follow-
2 ing fiscal year.
3 2. Final repayment shall be scheduled within the same fiscal year in
4 which the borrowing takes place; provided, however, that if such borrow-
5 ing was initiated in the final two weeks of the prior fiscal year in
6 anticipation of moneys to be received in the current fiscal year pursu-
7 ant to subdivision one of this paragraph, such final repayment may be
8 scheduled within the fiscal year during which such anticipated moneys
9 are received.
10 c. The following reserve funds may be borrowed from pursuant to para-
11 graph a of this section:
12 1. Workers' compensation reserve fund, as authorized by section six-j
13 of the general municipal law;
14 2. Unemployment insurance payment reserve fund, as authorized by
15 section six-m of the general municipal law;
16 3. Repair reserve fund, as authorized by section six-d of the general
17 municipal law;
18 4. Insurance reserve fund, as authorized by section six-n of the
19 general municipal law;
20 5. Property loss reserve fund, as authorized by section seventeen
21 hundred nine of the education law;
22 6. Employee benefit accrued liability reserve fund, as authorized by
23 section six-p of the general municipal law; and
24 7. Tax reduction reserve fund, as authorized by sections sixteen
25 hundred four and seventeen hundred nine of the education law.
26 § 2. The section heading of section 6-j of the general municipal law,
27 as amended by chapter 704 of the laws of 1956, is amended to read as
28 follows:
29 [Workmen's] Workers' compensation reserve fund.
30 § 3. This act shall take effect the first of July next succeeding the
31 date on which it shall have become a law.
