Bill Text: NY S01006 | 2019-2020 | General Assembly | Introduced

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Bill Title: Authorizes school districts with low combined wealth ratios to establish a reserve fund to ensure compliance with the tax cap in future school years.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2019-03-19 - RECOMMIT, ENACTING CLAUSE STRICKEN [S01006 Detail]

Download: New_York-2019-S01006-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          1006
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 10, 2019
                                       ___________
        Introduced  by  Sens. YOUNG, GALLIVAN -- read twice and ordered printed,
          and when printed to be committed to the Committee on Education
        AN ACT to amend the education law, in  relation  to  authorizing  school
          districts with low combined wealth ratios to establish tax cap reserve
          funds
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 3651 of the education law is amended by adding  two
     2  new subdivisions 1-c and 3-b to read as follows:
     3    1-c.  Notwithstanding  the  provisions  of  subdivision  one  of  this
     4  section, any school district having a combined wealth ratio, as  defined
     5  in paragraph c of subdivision three of section thirty-six hundred two of
     6  this title, which is thirty-five one-hundredths or less, may establish a
     7  reserve  fund  for  the  payment of school district expenditures for any
     8  school year to the extent the expenditure of monies therefor would cause
     9  such school district to exceed its tax levy limit  pursuant  to  section
    10  two  thousand  twenty-three-a  of  this chapter, without approval by the
    11  qualified voters of the district; provided, however, that the  total  of
    12  the  monies held in such reserve fund shall not exceed that amount which
    13  might reasonably be  deemed  necessary  to  meet  anticipated  increased
    14  expenditures  by  the school district in future school years. Any monies
    15  deposited to such reserve fund which will not reasonably be required  to
    16  be  expended  for  the purpose of complying with the district's tax levy
    17  limit shall be returned to the general fund on or before the  first  day
    18  of  the  fourth fiscal year following the deposit of such monies to said
    19  reserve fund.
    20    3-b. Notwithstanding the  provisions  of  subdivision  three  of  this
    21  section, any school district which establishes a reserve fund in accord-
    22  ance  with  subdivision one-c of this section may make expenditures from
    23  such fund for the purposes specified in such subdivision without author-
    24  ization of the voters.
    25    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03740-01-9