Provides that state aid payments due for prior years shall be paid either from funds available in the general support for public school appropriation as a result of the deduction of excess payments of aid; or within the limit of the appropriation designated therefor.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1506
SPONSOR: Jean-Pierre (MS)
 
TITLE OF BILL:
An act to amend the education law, in relation to the payment of moneys
due for prior years and the apportionment of moneys to school districts
 
PURPOSE OR GENERAL IDEA OF BILL:
Requires that all money owed to school districts from prior year adjust-
ments be deducted from balance owed to the state for past prior-year
adjustments.
 
SUMMARY OF PROVISIONS:
Section 1. amends subdivision 1 of section 3604 of the education law by
adding a new paragraph c, requiring state aid due to schools from prior
year adjustments be subtracted from the total amount the school owes the
state from prior year adjustments.
Section 2. is the enacting clause.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
 
JUSTIFICATION:
Many schools have an overall negative fund balance with the State Educa-
tion Department. Some of those same schools are also owed money due to
prior year adjustments, which districts can remit to the school over a
period of decades. This legislation allows the two balance sheets to be
reconciled immediately, simplifying the financial records of our incom-
prehensible education funding system.
 
PRIOR LEGISLATIVE HISTORY:
2019-20: A10036/S7684 2021-22: A1807/S1966
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
1506
2023-2024 Regular Sessions
IN ASSEMBLY
January 17, 2023
___________
Introduced by M. of A. JEAN-PIERRE, NORRIS, JACOBSON, STECK -- Multi-
Sponsored by -- M. of A. SIMON -- read once and referred to the
Committee on Education
AN ACT to amend the education law, in relation to the payment of moneys
due for prior years and the apportionment of moneys to school
districts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph c of subdivision 5 of section 3604 of the educa-
2 tion law, as added by chapter 82 of the laws of 1995, is amended to read
3 as follows:
4 c. Payment of moneys due for prior years. State aid payments due for
5 prior years in accordance with the provisions of this subdivision shall
6 be paid either: (i) from funds available in the general support for
7 public school appropriation as a result of the deduction of excess
8 payments of aid pursuant to paragraph a of this subdivision; or (ii)
9 within the limit of the appropriation designated therefor provided,
10 however, that each eligible claim shall be payable in the order that it
11 has been approved for payment by the commissioner, but in no case shall
12 a single claim draw down more than forty percent of the appropriation so
13 designated for a single year, and provided further that no claim shall
14 be set aside for insufficiency of funds to make a complete payment, but
15 shall be eligible for a partial payment in one year and shall retain its
16 priority date status for appropriations designated for such purposes in
17 future years.
18 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02929-01-3