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A00582 Summary:

BILL NOA00582
 
SAME ASNo Same As
 
SPONSORStirpe
 
COSPNSR
 
MLTSPNSR
 
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.
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A00582 Actions:

BILL NOA00582
 
01/09/2019referred to education
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A00582 Memo:

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.
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A00582 Text:



 
                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.
                                                                   LBD00506-01-9

        A. 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.
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