NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8086
SPONSOR: Seawright TITLE OF BILL:
An act to amend the education law, in relation to permitting special
education services and programs for preschool children with handicapping
conditions to establish reserve funds
PURPOSE OR GENERAL IDEA OF BILL:
To allow special education services and programs for preschool children
with handicapping conditions to establish reserve funds
SUMMARY OF PROVISIONS:
Section 1: Establishes that for the 2023-2024 school year and thereaft-
er, special education services and programs for children with handicap-
ping conditions may retain funds in excess of their allowable and reim-
bursable costs incurred for services and programs to students appointed.
Provides that the total accumulated balance that may be retained cannot
exceed four percent of total costs for the school year and that such
funds shall not be recoverable on reconciliation; such funds shall be
carried forward as total reimbursable costs for purposes of calculating
subsequent year prospective and reconciliation tuition rates and such
funds shall be separate from and in addition to any other authorization,
to retain surplus funds on reconciliation. Further establishes that
funds may be expended only pursuant to an authorization of the governing
board of the institution for a purpose expressly authorized as part of
allowable costs for the year in which the funds are to be expended,
provided that funds may be expended to pay prior year outstanding debts.
Any institution that retains funds pursuant to this subdivision shall be
required to annually report a statement of the total balance of such
retained funds, the amount, if any, retained in the prior school year,
the amount, if any, disbursed in the prior school year, and the finan-
cial reports that are required to be annually submitted to the depart-
ment. Section 2: Sets effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
New York State-approved preschool special education programs, known as
4410 schools, provide special education services to public school chil-
dren of ages 3-5, many of whom have been diagnosed with autism spectrum
disorder, cerebral palsy, or other developmental disabilities. Students
are . placed in 4410s only after a determination has been made by a
local Committee on Preschool Special Education that there is no other
appropriate educational setting available in a local public school. This
means there is no other educational option for these children. Under
current law, 853 schools and Special Act schools, which serve school-
aged children with special needs, are able to establish reserve funds
that allow them to save up to 1% of their budget. This provision was
included in the SFY '2023 Budget, in order to achieve parity with tradi-
tional public schools, which already have the ability to establish
reserve funds.
Unfortunately, 4410s were excluded from this benefit. This legislation
allows 4410 schools to establish reserve funds to ensure these schools
are receiving the support they need to adequately meet the needs of our
most vulnerable populations. There are currently four hundred 4410
schools throughout the State that serve the special needs of our young-
est learners. Given the complexity of their disabilities, it is impossi-
ble for any other school system to address their needs. The continuity
of 4410 services is essential to enriching these students' academic
futures and providing them with the tools necessary to succeed. New York
State must address this inequity by allowing 4410s to establish reserve
funds.
PRIOR LEGISLATIVE HISTORY:
Click here to enter text.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
On the first of July next succeeding the date on which it shall have
become a law.
