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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

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 - Dead) 2018-06-20 - referred to education [S06814 Detail]

Download: New_York-2017-S06814-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          6814
                               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
        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
    21  reserve  shall  not  exceed  the  product of 1.5 and the total principal
    22  amount of the district's total required tax  levy  for  school  district
    23  fiscal  year  2016-2017;  provided,  however, that no such fund shall be
    24  established unless approved by a majority vote  of  the  voters  of  the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10358-06-7
        S. 6814                             2
     1  district present and voting on a separate ballot proposition therefor at
     2  either  a special district meeting which the board of education may call
     3  for such purpose or at the annual district meeting and election,  to  be
     4  noticed  and  conducted  in either case in accordance with article 41 of
     5  the education law. Such separate proposition shall set forth the maximum
     6  allowable balance to be deposited and held in  the  federal  impact  aid
     7  reserve  fund. Moneys shall be paid into and withdrawn from the fund and
     8  the fund shall be administered as follows:
     9    (a) the board of education is hereby authorized to make payments  into
    10  the  federal impact aid reserve fund with funds from any unassigned fund
    11  balance which accrued prior to the establishment of the  federal  impact
    12  aid reserve fund in an amount not to exceed the balance over any maximum
    13  allowable  balance  in such unassigned fund balance and from any reserve
    14  funds authorized or required by law in amounts which the board of educa-
    15  tion shall determine are not reasonably necessary  for  the  purpose  of
    16  such  fund  or  funds  and which accrued prior to the federal impact aid
    17  reserve fund provided that no such  payment  from  any  unassigned  fund
    18  balance  or  any  reserve  fund  shall  cause the balance of the fund to
    19  exceed the amount approved in the  ballot  proposal  described  in  this
    20  section;
    21    (b)  the  board of education shall determine that the original purpose
    22  for which a reserve fund has been established is  no  longer  desirable,
    23  the  school  authorities may liquidate such fund by applying the balance
    24  thereof to the annual tax levy, regardless of the tax  rate  for  school
    25  purposes,  without  authorization  of the voters.   Withdrawals from the
    26  fund shall be disclosed in a manner consistent with the required disclo-
    27  sures of similar reserve funds held by the district,  including  disclo-
    28  sures  required by the property tax report card prepared by the district
    29  pursuant to the provisions of subdivision  7  of  section  1716  of  the
    30  education  law;  and  deposits  and withdrawals made in each fiscal year
    31  shall be subject to the district's annual budget approval process; and
    32    (c) the moneys in the federal impact aid reserve fund shall be  depos-
    33  ited,  invested and accounted for in the manner provided for in subdivi-
    34  sions 2 and 6 of section 3651 and section 3652 of the education law.
    35    § 4. This act shall take effect immediately.