Bill Text: NY S06814 | 2017-2018 | General Assembly | Amended


Bill Title: Authorizes the city school district of the city of Salamanca to establish a reserve fund for federal impact aid in the event such aid is reduced.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed) 2018-06-20 - referred to education [S06814 Detail]

Download: New_York-2017-S06814-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         6814--B
                               2017-2018 Regular Sessions
                    IN SENATE
                                      June 20, 2017
                                       ___________
        Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules  --  recommitted  to
          the Committee on Education in accordance with Senate Rule 6, sec. 8 --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- committee discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee
        AN  ACT to authorize the board of education of the Salamanca city school
          district to establish a federal impact aid reserve fund in  the  event
          federal impact aid is reduced
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Legislative findings. The  legislature  hereby  finds  that
     2  since certain lands are designated as exempt from taxation, specifically
     3  the  Allegany  Territory of the Seneca Nation of Indians which is within
     4  the Salamanca city school district, the Salamanca city  school  district
     5  receives  federal  impact  aid  for  support  of  services  to students.
     6  Responsible fiscal planning requires establishment of a  federal  impact
     7  reserve fund for the purpose of stabilizing the tax levy while maintain-
     8  ing  educational programming and services, in the event that such aid is
     9  no longer provided to such district.
    10    § 2. Definitions. As used in this act:
    11    (a) "Board of education" or "board" means the board  of  education  of
    12  the district.
    13    (b)  "Federal  impact  aid  reserve fund" or "fund" means the district
    14  federal impact aid reserve fund established pursuant to this act in  the
    15  event of reduction or loss of federal impact aid.
    16    (c)  "School  district"  or "district" means the Salamanca city school
    17  district.
    18    § 3. The board of education is hereby authorized to establish a feder-
    19  al impact aid reserve fund for the purpose of tax stabilization  in  the
    20  event  federal  impact  aid  is reduced provided that the amount of such
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10358-10-8

        S. 6814--B                          2
     1  reserve shall not exceed five million  dollars  ($5,000,000);  provided,
     2  however,  that  no  such  fund shall be established unless approved by a
     3  majority vote of the voters of the district  present  and  voting  on  a
     4  separate  ballot proposition therefor at either a special district meet-
     5  ing which the board of education may call for such  purpose  or  at  the
     6  annual  district  meeting  and  election, to be noticed and conducted in
     7  either case in accordance with article 41 of  the  education  law.  Such
     8  separate proposition shall set forth the maximum allowable balance to be
     9  deposited  and held in the federal impact aid reserve fund. Moneys shall
    10  be paid into and withdrawn from the fund and the fund shall be  adminis-
    11  tered as follows:
    12    (a)  the board of education is hereby authorized to make payments into
    13  the federal impact aid reserve fund with funds from any unassigned  fund
    14  balance  which  accrued prior to the establishment of the federal impact
    15  aid reserve fund in an amount not to exceed the balance over any maximum
    16  allowable balance in such unassigned fund balance and from  any  reserve
    17  funds authorized or required by law in amounts which the board of educa-
    18  tion  shall  determine  are  not reasonably necessary for the purpose of
    19  such fund or funds and which accrued prior to  the  federal  impact  aid
    20  reserve  fund  provided  that  no  such payment from any unassigned fund
    21  balance or any reserve fund shall cause  the  balance  of  the  fund  to
    22  exceed  the  amount  approved  in  the ballot proposal described in this
    23  section;
    24    (b) the board of education shall determine that the  original  purpose
    25  for  which  a  reserve fund has been established is no longer desirable,
    26  the school authorities may liquidate such fund by applying  the  balance
    27  thereof  to  the  annual tax levy, regardless of the tax rate for school
    28  purposes, without authorization of the voters.    Withdrawals  from  the
    29  fund shall be disclosed in a manner consistent with the required disclo-
    30  sures  of  similar reserve funds held by the district, including disclo-
    31  sures required by the property tax report card prepared by the  district
    32  pursuant  to  the  provisions  of  subdivision  7 of section 1716 of the
    33  education law; and deposits and withdrawals made  in  each  fiscal  year
    34  shall be subject to the district's annual budget approval process; and
    35    (c)  the moneys in the federal impact aid reserve fund shall be depos-
    36  ited, invested and accounted for in the manner provided for in  subdivi-
    37  sions 2 and 6 of section 3651 and section 3652 of the education law.
    38    § 4. This act shall take effect immediately.
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