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A05023 Summary:

BILL NOA05023
 
SAME ASNo Same As
 
SPONSORBarclay (MS)
 
COSPNSRCrouch, Finch, Giglio, Montesano, Palmesano, Norris, McDonough, Byrnes
 
MLTSPNSRColton, Hawley, Manktelow, Salka
 
Amd §2023-a, Ed L
 
Excludes board of cooperative educational services capital expenses from the school district tax levy limit.
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A05023 Actions:

BILL NOA05023
 
02/06/2019referred to education
01/08/2020referred to education
07/14/2020held for consideration in education
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A05023 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5023
 
SPONSOR: Barclay (MS)
  TITLE OF BILL: An act to amend the education law, in relation to excluding board of cooperative educational services capital expenses from the school district tax levy limit   PURPOSE OR GENERAL IDEA OF BILL: Adds Board of Cooperative Educational Services ("BOCES") Capital expenses to the list of expenses exempt under the education law.   SUMMARY OF PROVISIONS: Subdivision 2 of Section 2023-a of the Education Law allows school districts to exclude certain expenses from the annual calculation under the property tax cap. The current exclusions are: Any court orders or judgments against the school district arising out of a tort action that exceeds five percent; pension costs that exceeds two percentage points from the previous year; and, capital projects expenditures resulting from the financing, refinancing, acquisition, design, construction, reconstruction, rehabilitation, improvement, furnishing and equipping of, or otherwise providing for school district capital facilities or school district capital equipment, including debt service and lease expenditures, and transportation capital debt service, subject to the approval of the qualified voters. This legislation adds BOCES Capital expenses to this excluded list.   JUSTIFICATION: Unfortunately, when the property tax cap legislation was passed in 2011, BOCES capital project expenses were not included in the exemptions list- ed under the property tax cap. For school districts that have voter approved BOCES capital projects in their district, the current property tax cap law requires the districts to calculate BOCES capital projects in their annual calculation of tax levy limitations. This is where there are inconsistencies in the law because if a school district had a voter approved capital project for one of their schools, that project's expenses would not be calculated in the tax levy limita- tion. As a result, it is possible that school districts with voter-ap- proved BOCES Capital projects may annually exceed the two percent prop- erty tax cap. During the end of the 2015 Legislative Session, the Assembly and Senate passed the Governor's Program Bill 12 which included, among others things, a direction to the Department of Tax and Finance to develop language to exclude BOCES capital projects from the property tax cap. The Department has yet to promulgate language to provide for this exclu- sion and the enacting legislation does not state a deadline as to when the Department must provide this language. This legislation makes those changes in the Tax Cap Law to allow for the district's share of BOCES Capital projects to be excluded from the Prop- erty Tax Cap calculation. BOCES capital projects are indeed capital projects for school districts. Many BOCES facilities across the state are in need of upgrading and capital improvements. As more BOCES move forward with capital projects, this issue will have a direct impact on school districts and their annual budget.   PRIOR LEGISLATIVE HISTORY: 2012 A10450 Referred to Education 2013-14 A4165 Held for consideration in Education 2015-16 A3249 Held for consideration in Education A2017-18 A3689 Held for consideration in Education   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None   EFFECTIVE DATE: Immediately
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A05023 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5023
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 6, 2019
                                       ___________
 
        Introduced  by  M.  of  A.  BARCLAY,  CROUCH,  FINCH, GIGLIO, MONTESANO,
          PALMESANO, NORRIS, McDONOUGH, BYRNES -- Multi-Sponsored by -- M. of A.
          COLTON, HAWLEY, MANKTELOW, SALKA -- read  once  and  referred  to  the
          Committee on Education
 
        AN  ACT  to  amend  the education law, in relation to excluding board of
          cooperative educational services  capital  expenses  from  the  school
          district tax levy limit
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph i of subdivision  2  of  section  2023-a  of  the
     2  education  law  is  amended  by adding a new subparagraph (v) to read as
     3  follows:
     4    (v) the amount allocated to the school district pursuant to  paragraph
     5  g  of  subdivision  five of section nineteen hundred fifty of this title
     6  for, any payment by a board of cooperative educational services  to  the
     7  dormitory  authority  or  any payment required by a board of cooperative
     8  educational services to acquire or construct a school  facility  of  the
     9  board  of  cooperative educational services, and any payments for rental
    10  of facilities by a board of cooperative educational services.
    11    § 2. This act shall take effect immediately, provided,  however,  that
    12  the  amendments  to subdivision 2 of section 2023-a of the education law
    13  made by section one of this act shall not  affect  the  repeal  of  such
    14  section and shall be deemed to repeal therewith.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02475-01-9
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