Bill Text: NY A05403 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the computation of foundation aid and addition of credit recovery aid for the Maisto Districts; relates to calculation of the period of probable usefulness regarding payment for Maisto Districts credit recovery aid; relates to contracts between the dormitory authority and the Maisto Districts or the New York state association of small city school districts; establishes the credit recovery financing reserve fund.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-01-03 - referred to education [A05403 Detail]
Download: New_York-2017-A05403-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5403 2017-2018 Regular Sessions IN ASSEMBLY February 8, 2017 ___________ Introduced by M. of A. BRINDISI -- read once and referred to the Commit- tee on Education AN ACT to amend the education law, in relation to the computation of foundation aid and addition of credit recovery aid for the Maisto Districts; to amend the local finance law, in relation to calculation of the period of probable usefulness regarding payment for Maisto Districts credit recovery aid; to amend the public authorities law, in relation to contracts between the dormitory authority and the Maisto Districts or the New York state association of small city school districts; and to amend the state finance law, in relation to estab- lishing the credit recovery financing reserve fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent: It is the responsibility of the legis- 2 lature under article XI of the constitution of the state of New York to 3 establish and maintain a system that will provide all children an oppor- 4 tunity to receive a meaningful high school education. As a result of 5 trial in State Supreme Court of Maisto, et al. v State of New York it is 6 clear that resources sufficient to offer that education in eight small 7 city school districts, known as the Maisto Districts, are not being 8 provided to those districts under current education law. Therefore, it 9 is the intention of the legislature to amend certain provisions of the 10 education law to ensure that the necessary funding is available in those 11 districts to help them provide all their children an opportunity to 12 receive a meaningful high school education and to maintain healthy 13 vibrant educational communities that underpin a thriving state economy. 14 § 2. This legislation shall be known and may be cited as "the Maisto 15 District successful schools act". 16 § 3. Paragraph ff of subdivision 1 of section 3602 of the education 17 law, as added by section 25 of part A of chapter 58 of the laws of 2011, 18 is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05724-01-7A. 5403 2 1 ff. "Preliminary growth amount" shall mean the difference between the 2 statewide total, excluding the apportionments computed pursuant to 3 subdivisions four, other than such apportionments for Maisto Districts, 4 and seventeen of section thirty-six hundred two of the education law, of 5 the apportionments due and owing during the current school year, 6 commencing with the two thousand twelve--two thousand thirteen school 7 year, to school districts and boards of cooperative educational services 8 from the general support for public schools as computed based on an 9 electronic data file used to produce the school aid computer listing 10 produced by the commissioner in support of the enacted budget for the 11 current year, less the statewide total of such apportionments, excluding 12 the apportionments computed pursuant to subdivisions four, other than 13 such apportionments for Maisto Districts, and seventeen of section thir- 14 ty-six hundred two of the education law, due and owing during the base 15 school year to school districts and boards of cooperative educational 16 services from the general support for public schools as computed based 17 on an electronic data file used to produce the school aid computer list- 18 ing produced by the commissioner in support of the enacted budget for 19 the current year. 20 § 4. Subdivision 1 of section 3602 of the education law is amended by 21 adding two new paragraphs hh and ii to read as follows: 22 hh. "New York state association of small city school districts" shall 23 mean the association of districts in cities with populations fewer than 24 one hundred twenty-five thousand persons in the most recent census. 25 ii. "Maisto Districts" shall mean the small city school districts of 26 Jamestown, Kingston, Mount Vernon, Newburgh, Niagara Falls, Port Jervis, 27 Poughkeepsie and Utica. 28 § 5. Subdivision 18 of section 3602 of the education law, as added by 29 section 37 of part A of chapter 58 of the laws of 2011, is amended to 30 read as follows: 31 18. Allocable growth amount apportionment. Such amount shall be appor- 32 tioned for a school year pursuant to a chapter of the laws of New York 33 enacted for the state fiscal year in which such school year commences, 34 and shall be allocated to purposes including but not limited to compet- 35 itive grant awards made pursuant to subdivisions five and six of section 36 thirty-six hundred forty-one of this article, the foundation aid phase- 37 in amount or other foundation aid increase allocated pursuant to subdi- 38 vision four of this section and the gap elimination adjustment restora- 39 tion amount apportioned pursuant to subdivision seventeen of this 40 section. In the event that a chapter of the laws of New York enacted for 41 the state fiscal year in which such school year commences is not 42 enacted, the allocations in support of subdivisions five and six of 43 section thirty-six hundred forty-one of this article shall equal the 44 allocations in support of such awards in the base year, and the appor- 45 tionments pursuant to subdivisions four and seventeen of this section 46 for the current year shall equal the apportionments for such subdivi- 47 sions four and seventeen for the base year except that the apportion- 48 ments of the foundation aid phase-in amount for the Maisto Districts and 49 Maisto District credit recovery aid shall be the amount computed in the 50 current year. 51 § 6. The opening paragraph, subparagraph 1 of paragraph a, and clause 52 (ii) of subparagraph 2 of paragraph b of subdivision 4 of section 3602 53 of the education law, as amended by section 7 of part A of chapter 54 of 54 the laws of 2016, are amended to read as follows: 55 In addition to any other apportionment pursuant to this chapter, a 56 school district, other than a special act school district as defined inA. 5403 3 1 subdivision eight of section four thousand one of this chapter, shall be 2 eligible for total foundation aid equal to the product of total aidable 3 foundation pupil units multiplied by the district's selected foundation 4 aid, which shall be the greater of five hundred dollars ($500) or foun- 5 dation formula aid, provided, however that for the two thousand seven-- 6 two thousand eight through two thousand eight--two thousand nine school 7 years, no school district shall receive total foundation aid in excess 8 of the sum of the total foundation aid base for aid payable in the two 9 thousand seven--two thousand eight school year computed pursuant to 10 subparagraph (i) of paragraph j of subdivision one of this section, plus 11 the phase-in foundation increase computed pursuant to paragraph b of 12 this subdivision, and provided further that for the two thousand twelve- 13 -two thousand thirteen school year, no school district shall receive 14 total foundation aid in excess of the sum of the total foundation aid 15 base for aid payable in the two thousand eleven--two thousand twelve 16 school year computed pursuant to subparagraph (ii) of paragraph j of 17 subdivision one of this section, plus the phase-in foundation increase 18 computed pursuant to paragraph b of this subdivision, and provided 19 further that for the two thousand thirteen--two thousand fourteen school 20 year and thereafter, no school district shall receive total foundation 21 aid in excess of the sum of the total foundation aid base computed 22 pursuant to subparagraph (ii) of paragraph j of subdivision one of this 23 section, plus the phase-in foundation increase computed pursuant to 24 paragraph b of this subdivision, and provided further that for the two 25 thousand sixteen--two thousand seventeen school year, no eligible school 26 districts shall receive total foundation aid in excess of the sum of the 27 total foundation aid base computed pursuant to subparagraph (ii) of 28 paragraph j of subdivision one of this section plus the sum of (A) the 29 phase-in foundation increase, (B) the executive foundation increase with 30 a minimum increase pursuant to paragraph b-2 of this subdivision, and 31 (C) an amount equal to "COMMUNITY SCHOOLS AID" in the computer listing 32 produced by the commissioner in support of the executive budget request 33 for the two thousand sixteen--two thousand seventeen school year and 34 entitled "BT161-7", where (1) "eligible school district" shall be 35 defined as a district with (a) an unrestricted aid increase of less than 36 seven percent (0.07) and (b) a three year average free and reduced price 37 lunch percent greater than fifteen percent (0.15), and (2) "unrestricted 38 aid increase" shall mean the quotient arrived at when dividing (a) the 39 sum of the executive foundation aid increase plus the gap elimination 40 adjustment for the base year, by (b) the difference of foundation aid 41 for the base year less the gap elimination adjustment for the base year, 42 and (3) "executive foundation increase" shall mean the difference of (a) 43 the amounts set forth for each school district as "FOUNDATION AID" under 44 the heading "2016-17 ESTIMATED AIDS" in the school aid computer listing 45 produced by the commissioner in support of the executive budget request 46 for the two thousand sixteen--two thousand seventeen school year and 47 entitled "BT161-7" less (b) the amounts set forth for each school 48 district as "FOUNDATION AID" under the heading "2015-16 BASE YEAR AIDS" 49 in such computer listing and provided further that total foundation aid 50 shall not be less than the product of the total foundation aid base 51 computed pursuant to paragraph j of subdivision one of this section and 52 the due-minimum percent which shall be, for the two thousand twelve--two 53 thousand thirteen school year, one hundred and six-tenths percent 54 (1.006) and for the two thousand thirteen--two thousand fourteen school 55 year for city school districts of those cities having populations in 56 excess of one hundred twenty-five thousand and less than one millionA. 5403 4 1 inhabitants one hundred and one and one hundred and seventy-six thou- 2 sandths percent (1.01176), and for all other districts one hundred and 3 three-tenths percent (1.003), and for the two thousand fourteen--two 4 thousand fifteen school year one hundred and eighty-five hundredths 5 percent (1.0085), and for the two thousand fifteen--two thousand sixteen 6 school year, one hundred thirty-seven hundredths percent (1.0037), 7 subject to allocation pursuant to the provisions of subdivision eighteen 8 of this section and any provisions of a chapter of the laws of New York 9 as described therein, nor more than the product of such total foundation 10 aid base and one hundred fifteen percent, provided, however, that for 11 the two thousand sixteen--two thousand seventeen school year such maxi- 12 mum shall be no more than the sum of (i) the product of such total foun- 13 dation aid base and one hundred fifteen percent plus (ii) the executive 14 foundation increase and plus (iii) "COMMUNITY SCHOOLS AID" in the 15 computer listing produced by the commissioner in support of the execu- 16 tive budget request for the two thousand sixteen--two thousand seventeen 17 school year and entitled "BT161-7", except for Maisto Districts which 18 shall be one hundred twenty-five percent, and provided further that for 19 the two thousand nine--two thousand ten through two thousand eleven--two 20 thousand twelve school years, each school district shall receive total 21 foundation aid in an amount equal to the amount apportioned to such 22 school district for the two thousand eight--two thousand nine school 23 year pursuant to this subdivision. Total aidable foundation pupil units 24 shall be calculated pursuant to paragraph g of subdivision two of this 25 section. For the purposes of calculating aid pursuant to this subdivi- 26 sion, aid for the city school district of the city of New York shall be 27 calculated on a citywide basis. 28 (1) The foundation amount shall reflect the average per pupil cost of 29 general education instruction in successful school districts, as deter- 30 mined by a statistical analysis of the costs of special education and 31 general education in successful school districts, provided that the 32 foundation amount shall be adjusted annually to reflect the percentage 33 increase in the consumer price index as computed pursuant to section two 34 thousand twenty-two of this chapter, provided that for the two thousand 35 eight--two thousand nine school year, for the purpose of such adjust- 36 ment, the percentage increase in the consumer price index shall be 37 deemed to be two and nine-tenths percent (0.029), and provided further 38 that the foundation amount for the two thousand seven--two thousand 39 eight school year shall be five thousand two hundred fifty-eight 40 dollars, and provided further that for the two thousand seven--two thou- 41 sand eight through two thousand sixteen--two thousand seventeen school 42 years, and for the Maisto Districts for the two thousand eighteen--two 43 thousand nineteen through two thousand twenty-one--two thousand twenty- 44 two school years, the foundation amount shall be further adjusted by the 45 phase-in foundation percent established pursuant to paragraph b of this 46 subdivision. 47 (ii) Phase-in foundation increase factor. For the two thousand 48 eleven--two thousand twelve school year, the phase-in foundation 49 increase factor shall equal thirty-seven and one-half percent (0.375) 50 and the phase-in due minimum percent shall equal nineteen and forty-one 51 hundredths percent (0.1941), for the two thousand twelve--two thousand 52 thirteen school year the phase-in foundation increase factor shall equal 53 one and seven-tenths percent (0.017), for the two thousand thirteen--two 54 thousand fourteen school year the phase-in foundation increase factor 55 shall equal (1) for a city school district in a city having a population 56 of one million or more, five and twenty-three hundredths percentA. 5403 5 1 (0.0523) or (2) for all other school districts zero percent, for the two 2 thousand fourteen--two thousand fifteen school year the phase-in founda- 3 tion increase factor shall equal (1) for a city school district of a 4 city having a population of one million or more, four and thirty-two 5 hundredths percent (0.0432) or (2) for a school district other than a 6 city school district having a population of one million or more for 7 which (A) the quotient of the positive difference of the foundation 8 formula aid minus the foundation aid base computed pursuant to paragraph 9 j of subdivision one of this section divided by the foundation formula 10 aid is greater than twenty-two percent (0.22) and (B) a combined wealth 11 ratio less than thirty-five hundredths (0.35), seven percent (0.07) or 12 (3) for all other school districts, four and thirty-one hundredths 13 percent (0.0431), and for the two thousand fifteen--two thousand sixteen 14 school year the phase-in foundation increase factor shall equal: (1) for 15 a city school district of a city having a population of one million or 16 more, thirteen and two hundred seventy-four thousandths percent 17 (0.13274); or (2) for districts where the quotient arrived at when 18 dividing (A) the product of the total aidable foundation pupil units 19 multiplied by the district's selected foundation aid less the total 20 foundation aid base computed pursuant to paragraph j of subdivision one 21 of this section divided by (B) the product of the total aidable founda- 22 tion pupil units multiplied by the district's selected foundation aid is 23 greater than nineteen percent (0.19), and where the district's combined 24 wealth ratio is less than thirty-three hundredths percent (0.33), seven 25 and seventy-five hundredths percent (0.0775); or (3) for any other 26 district designated as high need pursuant to clause (c) of subparagraph 27 two of paragraph c of subdivision six of this section for the school aid 28 computer listing produced by the commissioner in support of the enacted 29 budget for the two thousand seven--two thousand eight school year and 30 entitled "SA0708", four percent (0.04); or (4) for a city school 31 district in a city having a population of one hundred twenty-five thou- 32 sand or more but less than one million, fourteen percent (0.14); or (5) 33 for school districts that were designated as small city school districts 34 or central school districts whose boundaries include a portion of a 35 small city for the school aid computer listing produced by the commis- 36 sioner in support of the enacted budget for the two thousand fourteen-- 37 two thousand fifteen school year and entitled "SA1415", four and seven 38 hundred fifty-one thousandths percent (0.04751); or (6) for all other 39 districts one percent (0.01), and for the two thousand sixteen--two 40 thousand seventeen school year shall equal for an eligible school 41 district the greater of: (1) for a city school district in a city with a 42 population of one million or more, seven and seven hundred eighty four 43 thousandths percent (0.07784); or (2) for a city school district in a 44 city with a population of more than two hundred fifty thousand but less 45 than one million as of the most recent federal decennial census, seven 46 and three hundredths percent (0.0703); or (3) for a city school district 47 in a city with a population of more than two hundred thousand but less 48 than two hundred fifty thousand as of the most recent federal decennial 49 census, six and seventy-two hundredths percent (0.0672); or (4) for a 50 city school district in a city with a population of more than one 51 hundred fifty thousand but less than two hundred thousand as of the most 52 recent federal decennial census, six and seventy-four hundredths percent 53 (0.0674); or (5) for a city school district in a city with a population 54 of more than one hundred twenty-five thousand but less than one hundred 55 fifty thousand as of the most recent federal decennial census, nine and 56 fifty-five hundredths percent (0.0955); or (6) for school districts thatA. 5403 6 1 were designated as small city school districts or central school 2 districts whose boundaries include a portion of a small city for the 3 school aid computer listing produced by the commissioner in support of 4 the enacted budget for the two thousand fourteen--two thousand fifteen 5 school year and entitled "SA141-5" with a combined wealth ratio less 6 than one and four tenths (1.4), nine percent (0.09), provided, however, 7 that for such districts that are also districts designated as high need 8 urban-suburban pursuant to clause (c) of subparagraph two of paragraph c 9 of subdivision six of this section for the school aid computer listing 10 produced by the commissioner in support of the enacted budget for the 11 two thousand seven--two thousand eight school year and entitled 12 "SA0708", nine and seven hundred and nineteen thousandths percent 13 (0.09719); or (7) for school districts designated as high need rural 14 pursuant to clause (c) of subparagraph two of paragraph c of subdivision 15 six of this section for the school aid computer listing produced by the 16 commissioner in support of the enacted budget for the two thousand 17 seven--two thousand eight school year and entitled "SA0708", thirteen 18 and six tenths percent (0.136); or (8) for school districts designated 19 as high need urban-suburban pursuant to clause (c) of subparagraph two 20 of paragraph c of subdivision six of this section for the school aid 21 computer listing produced by the commissioner in support of the enacted 22 budget for the two thousand seven--two thousand eight school year and 23 entitled "SA0708", seven hundred nineteen thousandths percent (0.00719); 24 or (9) for all other eligible school districts, forty-seven hundredths 25 percent (0.0047) and for the two thousand seventeen--two thousand eigh- 26 teen school year and thereafter the commissioner shall annually deter- 27 mine the phase-in foundation increase factor subject to allocation 28 pursuant to the provisions of subdivision eighteen of this section and 29 any provisions of a chapter of the laws of New York as described 30 therein, except that for Maisto Districts in the two thousand seven- 31 teen--two thousand eighteen school year twenty-five hundredths percent 32 (0.0025), in the two thousand eighteen--two thousand nineteen school 33 year five hundredths percent (0.0050), in the two thousand nineteen--two 34 thousand twenty school year seventy-five hundredths percent (0.0075) and 35 in the two thousand twenty--two thousand twenty-one school year and 36 thereafter one hundred hundredths percent (0.0100). 37 § 7. Section 3602 of the education law is amended by adding a new 38 subdivision 42 to read as follows: 39 42. Maisto District credit recovery aid. Commencing with aid payable 40 in the two thousand eighteen--two thousand nineteen school year through 41 the two thousand twenty-one--two thousand twenty-two school year Maisto 42 Districts shall be eligible for an additional apportionment as provided 43 for in this subdivision. Such districts shall be eligible for an addi- 44 tional apportionment in an amount equal to the product of the total 45 number of students in the two thousand thirteen, two thousand fourteen, 46 two thousand fifteen, two thousand sixteen and two thousand seventeen 47 cohorts multiplied by one minus the four year graduation rate for the 48 year prior to the base year and two thousand five hundred ($2,500) 49 dollars to be used for programs with respect to such students approved 50 by the commissioner for the following purposes: 51 a. credit recovery programs; 52 b. academic intervention services; 53 c. response to intervention services; 54 d. drop out prevention; 55 e. incarcerated youth services; 56 f. parent involvement programs;A. 5403 7 1 g. extended day and extended year programs; and 2 h. psycho-social testing. 3 § 8. Section 2530 of the education law, as amended by chapter 171 of 4 the laws of 1996, is amended to read as follows: 5 § 2530. Power to contract indebtedness. Each city school district 6 shall be authorized to expend money for any of the objects or purposes 7 which it is authorized to accomplish by law and may contract indebt- 8 edness in its name pursuant to the local finance law, including but not 9 limited to the issuance of bonds of the district or of the New York 10 state association of small city school districts, its affiliates, 11 subsidiaries or subdivisions thereof to be repaid by revenues from Mais- 12 to District credit recovery aid pursuant to subdivision forty-two of 13 section thirty-six hundred two of this chapter. Notwithstanding any 14 other provision of law to the contrary, each district, the New York 15 state association of small city school districts, and affiliates, 16 subsidiaries or subdivisions thereof shall have the power to pledge, 17 assign or otherwise make available as security for such indebtedness 18 without consideration, revenues from state aid under subdivision forty- 19 two of section thirty-six hundred two of this chapter and bonds or other 20 indebtedness in connection with such subdivision forty-two shall not 21 require voter approval. The provisions of section four hundred sixteen 22 of this chapter shall be applicable to such districts. 23 § 9. Paragraph a of section 11.00 of the local finance law is amended 24 by adding a new subparagraph 109 to read as follows: 25 109. Payment by small city school districts for objects and purposes 26 set forth in subdivision forty-two of section thirty-six hundred two of 27 the education law and authorized under section twenty-five hundred thir- 28 ty of the education law, ten years. 29 § 10. Paragraph (b) of subdivision 2 of section 1676 of the public 30 authorities law is amended by adding a new undesignated paragraph to 31 read as follows: 32 Maisto Districts as defined by paragraph ii of subdivision one of 33 section thirty-six hundred two of the education law and the New York 34 state association of small city school districts as defined by paragraph 35 hh of subdivision one of section thirty-six hundred two of the education 36 law, and affiliates, subsidiaries or subdivisions thereof. 37 § 11. Subdivision 1 of section 1680 of the public authorities law is 38 amended by adding a new undesignated paragraph to read as follows: 39 Maisto Districts as defined by paragraph ii of subdivision one of 40 section thirty-six hundred two of the education law and the New York 41 state association of small city school districts as defined by paragraph 42 hh of subdivision one of section thirty-six hundred two of the education 43 law, and affiliates, subsidiaries or subdivisions thereof. 44 § 12. Section 1680 of the public authorities law is amended by adding 45 a new subdivision 41 to read as follows: 46 41. a. The dormitory authority may enter contracts to loan to or other 47 agreements with the Maisto Districts, the New York state association of 48 small city school districts, and affiliates, subsidiaries or subdivi- 49 sions thereof for the financing of programs as specified in subdivision 50 forty-two of section thirty-six hundred two of the education law includ- 51 ing: 52 (1) credit recovery programs; 53 (2) academic intervention services; 54 (3) response to intervention services; 55 (4) drop out prevention; 56 (5) incarcerated youth services;A. 5403 8 1 (6) parent involvement programs; 2 (7) extended day and extended year programs; and 3 (8) psycho-social testing. 4 Such programs shall be subject to the approval of the commissioner of 5 education. 6 b. Each Maisto District, the New York state association of small city 7 school districts, and affiliates, subsidiaries or subdivisions thereof 8 shall, notwithstanding any other provision of law, have the power to 9 pledge, assign or otherwise make available to the dormitory authority 10 without consideration, revenues from state aid under subdivision forty- 11 two of section thirty-six hundred two of the education law satisfactory 12 to the dormitory authority. 13 c. In addition to providing for all other matters deemed necessary and 14 proper, such contracts to loan or other agreements shall: (1) require 15 payment to the dormitory authority the amount required to pay the prin- 16 cipal of and interest on obligations of the dormitory authority issued 17 in relation to providing such financing and all incidental expenses of 18 the dormitory authority incurred in relation thereto; (2) require 19 payment sufficient to meet obligations under such contracts to loan or 20 other agreements; (3) provide that the aid payable under subdivision 21 forty-two of section thirty-six hundred two of the education law shall 22 be the sole security for such financing and all incidental expenses; and 23 (4) not be executed until such programs are approved by the commissioner 24 of education. 25 d. (1) In the event that the Maisto Districts, the New York state 26 association of small city school districts, and affiliates, subsidiaries 27 or subdivisions thereof fail to make any payment of principal or inter- 28 est on its obligations, the dormitory authority shall certify to the 29 comptroller of such failure. Such certificate shall be in such form as 30 the authority deems desirable, but shall include the exact amount of 31 interest and principal required to satisfy the obligations to the 32 authority. 33 (2) The comptroller, upon receipt of such certificate from the author- 34 ity, shall withhold from the Maisto Districts, the New York state asso- 35 ciation of small city school districts, and affiliates, subsidiaries or 36 subdivisions thereof any state aid payable to such entity to the extent 37 necessary to meet the certified amount of interest or principal and 38 shall immediately pay over to the credit recovery financing reserve fund 39 the amount so withheld. 40 (3) Pending payment to the authority from the comptroller of any such 41 state aid withheld, the authority shall, if payments of interest or 42 principal are due on the authority's bonds, withdraw an amount suffi- 43 cient to meet such amounts withheld from the debt service reserve fund 44 securing such bonds. Any such amount withdrawn from such debt service 45 reserve fund shall be paid into such debt service reserve fund upon 46 receipt by the agency from the comptroller of any state aid withheld. 47 Any amount so paid to the authority from such state aid shall not obli- 48 gate the state to make, nor entitle the Maisto Districts, the New York 49 state association of small city school districts, and affiliates, 50 subsidiaries or subdivisions thereof to receive, any additional amounts 51 of state aid. 52 e. On or before November fifteenth of each year, the dormitory author- 53 ity shall submit, and thereafter may resubmit, to the director of the 54 budget, the state comptroller, the chairman of the senate finance 55 committee and the chairman of the assembly ways and means committee a 56 report setting forth the amounts, if any, of all amounts estimated toA. 5403 9 1 become due in the succeeding state fiscal year to the dormitory authori- 2 ty from each Maisto District, the New York state association of small 3 city school districts, and affiliates, subsidiaries or subdivisions 4 thereof pursuant to such contracts to loan or other agreements. The 5 state comptroller shall pay over to the dormitory authority, pursuant to 6 appropriations therefor and solely from moneys available in the credit 7 recovery financing reserve fund established by section ninety-nine-g of 8 the state finance law, the amount set forth in such report at the times 9 and in the amounts set forth in the certificate filed with the comp- 10 troller by the dormitory authority. 11 f. Each Maisto District, the New York state association of small city 12 school districts, and affiliates, subsidiaries or subdivisions thereof 13 which elects to avail itself of the provisions of this section shall 14 have established with the state comptroller a credit recovery financing 15 reserve account which shall be used to pay to the dormitory authority 16 the annual amounts payable to the dormitory authority under such 17 contracts to loan or other agreements pursuant to the provisions of this 18 section and section ninety-nine-g of the state finance law. The dormito- 19 ry authority shall identify to the state comptroller and to the commis- 20 sioner of education with respect to such financing, each Maisto 21 District, the New York state association of small city school districts, 22 and affiliates, subsidiaries or subdivisions thereof with which it has 23 such contracts to loan or other agreements pursuant to this section and 24 shall annually certify the amounts required to be paid pursuant to such 25 contracts to loan or other agreements. 26 g. All state and local officials are authorized and required to take 27 whatever actions are necessary to carry out the provisions of this 28 section and the provisions of any contract to loan or other agreements 29 entered into pursuant to this section, including making the required 30 payments to the dormitory authority. 31 § 13. The state finance law is amended by adding a new section 99-g to 32 read as follows: 33 § 99-g. Credit recovery financing reserve fund. 1. There is hereby 34 established in the custody of the state comptroller a special fund to be 35 known as the credit recovery financing reserve fund. Within such fund, 36 there is hereby established a special account for each Maisto District, 37 the New York state association of small city school districts, and each 38 affiliate, subsidiary or subdivision thereof which enters into a 39 contract to loan or other agreement with the dormitory authority pursu- 40 ant to this section. 41 2. Notwithstanding the provisions of any other law, such fund shall 42 consist of aid payable under subdivision forty-two of section thirty-six 43 hundred two of the education law. The comptroller shall maintain suffi- 44 cient amounts in the fund in order to pay when due amounts due to the 45 dormitory authority pursuant to any contract to loan or other agreement 46 entered into pursuant to the provisions of this section. The dormitory 47 authority shall certify to the state comptroller the dates and amount of 48 such annual payments as scheduled in its contracts to loan or other 49 agreements. The commissioner of education shall certify the amount of 50 payments due the fund from aid payable under subdivision forty-two of 51 section thirty-six hundred two of the education law. 52 3. Revenues in any special account in the credit recovery financing 53 reserve fund may be commingled with any other monies in such fund. All 54 deposits of such revenues with banks and trust companies shall be 55 secured by obligations of the United States or of the state of New York 56 or its political subdivisions. Such obligations shall have a marketA. 5403 10 1 value at least equal at all times to, but not less than, one hundred 2 five percent of the amount of such deposits. All banks and trust compa- 3 nies are authorized to give security for such deposits. Any such reven- 4 ues in such fund may, in the discretion of the comptroller, be invested 5 in obligations of the United States or the state or obligations the 6 principal of and interest on which are guaranteed by the United States 7 or by the state. Any interest earned shall be credited to such fund. 8 4. Upon receipt by the comptroller of a certificate or certificates 9 from the dormitory authority that it requires a payment or payments from 10 the appropriate special account in order for any Maisto District, the 11 New York state association of small city school districts, and affil- 12 iates, subsidiaries or subdivisions thereof to comply with such contract 13 to loan or other agreement pursuant to this section, each of which 14 certificates shall specify the required payment or payments and the date 15 when the payment or payments is required, the comptroller shall pay from 16 such special account on or before the specified date or within thirty 17 days after receipt of such certificate or certificates, whichever is 18 later, to the paying agent designated by the dormitory authority in any 19 such certificate, the amount or amounts so certified. 20 5. All payments of money from the credit recovery financing reserve 21 fund shall be made on the audit and warrant of the state comptroller. 22 § 14. This act shall take effect July 1, 2017.
