Bill Text: NY S07636 | 2023-2024 | General Assembly | Introduced

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Bill Title: Authorizes school districts to borrow against certain reserve funds, pursuant to a resolution adopted by the board of education of such school district.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-01-03 - REFERRED TO LOCAL GOVERNMENT [S07636 Detail]

Download: New_York-2023-S07636-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7636

                               2023-2024 Regular Sessions

                    IN SENATE

                                     August 18, 2023
                                       ___________

        Introduced  by Sen. MARTINEZ -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the local finance law, in relation to authorizing school
          districts to borrow against certain reserve funds

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  local finance law is amended by adding a new section
     2  25.11 to read as follows:
     3    § 25.11 Borrowing from reserve funds. a. 1. Pursuant to  a  resolution
     4  adopted  by  the  board of education of any school district, such school
     5  district may borrow from certain reserve funds to reduce reliance on tax
     6  anticipation notes and revenue anticipation notes.
     7    2. Such resolution shall include the following information:
     8    (a) the amount to be borrowed;
     9    (b) the reserve from which the school district intends to borrow;
    10    (c) the amount and source of taxes or other revenue anticipated to  be
    11  received; and
    12    (d)  the timeframe in which such taxes or other revenue is anticipated
    13  to be received and the schedule upon  which  repayment  shall  be  made,
    14  including  a  specific date for final repayment; provided, however, that
    15  nothing shall prohibit a school district from paying ahead of such sche-
    16  dule.
    17    3. School districts shall not borrow in excess of seventy-five percent
    18  of the total of each reserve fund.
    19    b. 1. Borrowing from reserve funds  shall  be  limited  to  taxes  and
    20  revenue anticipated to be received in the same fiscal year in which such
    21  borrowing  takes  place;  provided,  however,  that during the final two
    22  weeks of a given fiscal year, such  borrowing  may  be  initiated  by  a
    23  school  district in anticipation of moneys to be received in the follow-
    24  ing fiscal year.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11981-01-3
        S. 7636                             2

     1    2. Final repayment shall be scheduled within the same fiscal  year  in
     2  which the borrowing takes place; provided, however, that if such borrow-
     3  ing  was  initiated  in  the final two weeks of the prior fiscal year in
     4  anticipation of moneys to be received in the current fiscal year  pursu-
     5  ant  to  subdivision  one of this paragraph, such final repayment may be
     6  scheduled within the fiscal year during which  such  anticipated  moneys
     7  are received.
     8    c.  The following reserve funds may be borrowed from pursuant to para-
     9  graph a of this section:
    10    1. Workmen's compensation reserve fund, as authorized by section six-j
    11  of the general municipal law;
    12    2. Unemployment insurance  payment  reserve  fund,  as  authorized  by
    13  section six-m of the general municipal law;
    14    3.  Repair reserve fund, as authorized by section six-d of the general
    15  municipal law;
    16    4. Insurance reserve fund, as  authorized  by  section  six-n  of  the
    17  general municipal law;
    18    5.  Property  loss  reserve  fund,  as authorized by section seventeen
    19  hundred nine of the education law;
    20    6. Employee benefit accrued liability reserve fund, as  authorized  by
    21  section six-p of the general municipal law; and
    22    7.  Tax  reduction  reserve  fund,  as  authorized by sections sixteen
    23  hundred four and seventeen hundred nine of the education law.
    24    § 2. This act shall take effect July 1, 2024.