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A01771 Summary:

BILL NOA01771A
 
SAME ASSAME AS S05025
 
SPONSORMcDonald (MS)
 
COSPNSRWallace, Burdick, Lupardo, Hunter, Sayegh, Angelino, Lunsford, Fahy, Otis, Woerner
 
MLTSPNSRCook, Simon
 
Amd Art 8 4, Constn
 
Relates to limitations on local indebtedness; removes school districts from those not permitted to contract indebtedness.
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A01771 Actions:

BILL NOA01771A
 
01/20/2023referred to judiciary
01/23/2023to attorney-general for opinion
02/03/2023opinion referred to judiciary
02/06/2023reported referred to ways and means
02/22/2023amend and recommit to ways and means
02/22/2023print number 1771a
02/24/2023to attorney-general for opinion
03/08/2023reported
03/09/2023opinion referred to judiciary
03/09/2023advanced to third reading cal.47
03/13/2023passed assembly
03/13/2023delivered to senate
03/13/2023REFERRED TO JUDICIARY
03/29/2023SUBSTITUTED FOR S5025
03/29/20233RD READING CAL.503
03/29/2023PASSED SENATE
03/29/2023RETURNED TO ASSEMBLY
08/04/2023delivered to secretary of state
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A01771 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1771A
 
SPONSOR: McDonald (MS)
  TITLE OF BILL: CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment to section 4 of article 8 of the constitution, in relation to limita- tions on local indebtedness   PURPOSE: To remove the constitutional debt limitation currently imposed upon small city school districts.   SUMMARY OF PROVISIONS: Section 1 of this proposed constitutional amendment removes the current five percent (of average full valuation of taxable real property) debt limit imposed upon school districts wholly or partly located in cities with less than 125,000 inhabitants (i.e., small city school districts). This proposal also clarifies language that small city debt limits shall exclude debt incurred for education purposes. Section 2 provides language ensuring the normal process for approval of a constitutional amendment is followed.   JUSTIFICATION: Small city school districts are currently held to a debt limitation of five percent of the average full valuation of taxable property for borrowing for school capital projects. Small city school districts are the only.independent districts with a five percent limitation on debt issuance. All other independent school districts are statutorily permit- ted to borrow up to 10 percent of their property valuations. In 1985, a constitutional provision removing a real property tax limitation on small city school districts was approved by the voters in the November .election. The debt limitation on small city school districts included in section 4 of article 8 of the New York State Constitution is the only constitutional provision remaining which treats small city school districts differently from other like school districts across the State. The subject of debt limitation, originally imposed as the result of a 1951 constitutional amendment, was intended to give small city school districts (then subject to constitutional real property tax limits) control over and responsibility for their fiscal affairs. Today, howev- er, with the real property tax limits no longer in place, and with the urgent need to improve old and outdated school facilities in small city school districts, it is time to advance a constitutional amendment to align debt capacity among all independent districts. By increasing debt capacity, small city school districts will be able to advance capital projects that are more comprehensive and address greater infrastructure needs sooner. In doing so, more students will benefit from updated learning environments and residents will benefit from less costly projects that result from prolonged deferred maintenance. Voters in small city school districts would continue to have the authority to approve borrowing for capital projects under this measure.   PRIOR LEGISLATIVE HISTORY: 2022: A9988/S8803 (Passed both houses)   FISCAL IMPLICATIONS: None for the State.   LOCAL FISCAL IMPLICATIONS: Upon voter approval of this amendment, small city school district indebtedness could increase the current debt limits with approval by local voters.   EFFECTIVE DATE: This amendment would not take effect until approved by the voters in a general election following approval by two consecutively elected State legislatures.
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