|SAME AS||No Same As|
|Amd §4405, Ed L; add §97-ssss, St Fin L|
|Relates to certain tuition and reconciliation rates and establishes the special education provider revolving loan fund.|
|01/09/2019||referred to education|
Go to top
NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A582 SPONSOR: Stirpe
TITLE OF BILL: An act to amend the education law, in relation to certain tuition and reconciliation rates; and to amend the state finance law, in relation to the special education provider revolving loan fund   PURPOSE: To index tuition rates paid to certain special education schools to the personal income growth index, and to provide an alternative to Revenue Anticipation Notes (BANS) for Special Act school districts, 853 schools and 4410 special education programs and to keep the school open when such BANS are not available.   SUMMARY OF PROVISIONS: Section 1. Adds two new paragraphs k and 1 to subdivision 4 of section 4405 of the education law to provide a tuition rate based on the personal income growth index and to provide that reconciliation rates are approved by the Department of the Budget within one hundred twenty days from submission of the rate to the State Education Department, respectively. Section 2. Adds a new section 97-qqqq to the state finance law to estab- lish a special education provider revolving loan fund under the joint custody of the comptroller and the Commissioner of Taxation and Finance. This section authorizes the comptroller to provide short term loans from the fund, pending tuition payments from the state. Section 3. Effective date.   JUSTIFICATION: Special Act school districts, 853 schools and 4410 special education programs in New York State represent a particularly high needs student population. The high need level associated with this population results in significant costs to operate these schools. Yet for the past six years, these schools and programs have not received a cost of living adjustment and are functioning with a tuition rate based on 2006 costs. Under current law however, funding is provided to special education programs through a complex methodology in which schools are getting reimbursed at rates set in previous years, for students previously served. These school districts currently rely heavily on short-term borrowing from banks in the form of Revenue Anticipation Notes (RANs), to keep their doors open. The state does not allow for reimbursement of interest fees that are paid to banks. These schools and programs are required to give educational services and support to children and to do so without the same financial and infras- tructure supports that are afforded to other public schools. For several years now, these schools and programs have lived with no increases in their tuition reimbursements and have experienced an incon- sistent application of the tuition rate setting methodology. In order to enable them to manage the affairs of the schools efficiently and to address the needs of their students there must be a more systemic approach to providing the funding and financial support the schools and programs require. Traditional public schools receive an allowable growth amount equal to the "personal income growth index" and 853 schools, Special Acts and 4410 programs seek educational funding parity between students with disabilities at special education schools and those at public school districts. This bill provides the funding certainty and flexibility necessary to help these schools and programs maintain their mission and to educate our students with some of the greatest needs. By providing a new tuition rate methodology, the bill gives these schools and programs the certain- ty of funding year to year. Furthermore by allowing New York State to provide loans to 853 schools, Special Act schools and 4410 preschool special education programs in anticipation of the school's revenue from the state will thereby save the schools and programs million in interest payments at no cost to the state.   LEGISLATIVE HISTORY: 2015-16: S860 - Education Committee 2013-14: S5661-A - Education Committee 2017-2018: A.6473/S.1062 referred to education   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.
Go to top
STATE OF NEW YORK ________________________________________________________________________ 582 2019-2020 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2019 ___________ Introduced by M. of A. STIRPE -- read once and referred to the Committee on Education AN ACT to amend the education law, in relation to certain tuition and reconciliation rates; and to amend the state finance law, in relation to the special education provider revolving loan fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 4 of section 4405 of the education law is 2 amended by adding two new paragraphs k and l to read as follows: 3 k. The tuition rates established for special act school districts, 4 approved private schools for students of school age, and approved 5 providers of services pursuant to section forty-four hundred ten of this 6 article for the two thousand nineteen--twenty tuition rate year and all 7 subsequent years thereafter shall equal the product of the tuition rate 8 for the base year and personal income growth index as defined by para- 9 graph bb of subdivision one of section thirty-six hundred two of this 10 chapter. 11 l. All reconciliation rates filed after July first, two thousand nine- 12 teen in accordance with section 200.9 of the department's rules and 13 regulations shall be acted upon by the director of the budget within one 14 hundred twenty days of submission to the department. Such rates shall be 15 deemed approved by the director of the budget in the event that no final 16 action is taken by the director of the budget within one hundred twenty 17 days from the submission of the reconciliation rate to the department. 18 § 2. The state finance law is amended by adding a new section 97-ssss 19 to read as follows: 20 § 97-ssss. Special education provider revolving loan fund. 1. There 21 is hereby established in the joint custody of the comptroller and the 22 commissioner of taxation and finance a fund to be known as the special 23 education provider revolving loan fund. Such fund shall consist of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00506-01-9A. 582 2 1 moneys made available pursuant to appropriation and any other sources in 2 order to provide support to special act school districts, state educa- 3 tion department approved private schools for special education students 4 of school age, and approved providers of services pursuant to section 5 forty-four hundred ten of the education law. Moneys shall be paid out 6 of the fund on the audit and warrant of the state comptroller pursuant 7 to such section. 8 2. The comptroller may provide such a loan to a special act school 9 district or approved special education provider defined in subdivision 10 one of this section upon receipt of a written agreement between the 11 school district or provider and the state education department outlining 12 the need for such loan and the anticipated tuition payment or tuition 13 reconciliation that will provide reasonable assurances of repayment that 14 is satisfactory to the comptroller. Such loan shall not bear interest 15 and repayment of such loan may be made upon receipt of tuition payments 16 and reconciliations, pursuant to the written agreement. 17 3. The state comptroller shall promulgate rules and regulations within 18 ninety days of the effective date of this section for the operation of 19 the special education provider revolving loan fund which shall include, 20 but not be limited to, the criteria to be used in determining how an 21 eligible special education provider may receive assistance; a procedure 22 and any necessary information that a special education provider needs to 23 submit for a loan from the special education provider revolving loan 24 fund; a schedule for reviewing such applications, not to exceed thirty 25 days, and notification to an applicant of approval or disapproval of 26 such application for a loan, and any other requirements deemed necessary 27 by the state comptroller. 28 § 3. This act shall take effect immediately.