Provides that for the two thousand twenty-six--two thousand twenty-seven school year, the two thousand twenty-seven--two thousand twenty-eight school year, and the two thousand twenty-eight--two thousand twenty-nine school year, surplus funds as used in this subdivision shall mean any operating funds in excess of five percent of the current school year budget, and shall not include funds properly retained under other sections of law.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A351
SPONSOR: Paulin TITLE OF BILL:
An act to amend the real property tax law, in relation to surplus funds
PURPOSE OR GENERAL IDEA OF BILL:
To increase the allowable unreserved fund balance from 4% to 5% for the
2024-25, 2025-26, and 2026-27 school years to enable school districts to
meet needs resulting from the COVID-19 pandemic.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 1318 of the real property tax law to increase
the allowable unreserved fund balance from 4% to 5% for the 2024-25,
2025-26, and 2026-27 school years.
Section 2 provides the effective date.
JUSTIFICATION:
With the many challenges associated with the reopening of schools
following the COVID-19 pandemic, there will be a need for additional
funds in a variety of areas: operations, in order to create a safe envi-
ronment, and prevent contagion; creative scheduling to organizing
distancing in the classrooms and corridors; transportation to address
scheduling changes; compensatory services to assist all students who
have lost academic readiness; and perhaps most critically, mental health
and well-being as students transition to another new normal, and as
staff prepare for reentry.
In order to partially address these issues, a fiscally responsible
option is to allow for the reallocation of some district resources, to
the extent possible, by increasing the allowable unreserved fund balance
from 4% to 5%. Due to the school closures, there will be certain savings
in some lines of the current budgets, such as-overtime, athletics, and
building operations, that could be applied to this option. All expendi-
tures from this fund would be cataloged for accountability. This data
could then be used to prepare for further disruptions and emergencies.
This bill will increase the allowable unreserved fund balance from 4% to
5% for the next three school years, enabling schools to better meet any
unanticipated needs that result from the pandemic.
PRIOR LEGISLATIVE HISTORY:
A304 of 2023 and 2024 referred to real property taxation
A.3498-A of 2021 and 2022 referred to ways and means.
A.10549 of 2020 referred to real property taxation.
FISCAL IMPLICATION:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
351
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. PAULIN, OTIS -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to surplus funds
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 1318 of the real property tax law,
2 as amended by chapter 238 of the laws of 2007, is amended to read as
3 follows:
4 1. The warrant of the collecting officer shall be signed by the trus-
5 tee, or the trustees, or a majority of them, or the board of education
6 or a majority thereof. Such warrant shall state the amount of unexpended
7 surplus funds in the custody of the board and shall further state that
8 except as authorized or required by law, such unexpended surplus funds
9 have been applied in determining the amount of the school tax levy. For
10 the two thousand seven--two thousand eight school year, surplus funds as
11 used in this subdivision shall mean any operating funds in excess of
12 three percent of the current school year budget, and shall not include
13 funds properly retained under other sections of law; provided however,
14 that for the two thousand twenty-six--two thousand twenty-seven school
15 year, the two thousand twenty-seven--two thousand twenty-eight school
16 year, and the two thousand twenty-eight--two thousand twenty-nine school
17 year, surplus funds as used in this subdivision shall mean any
18 operating funds in excess of five percent of the current school year
19 budget, and shall not include funds properly retained under other
20 sections of law. For the two thousand eight--two thousand nine school
21 year, and thereafter, surplus funds as used in this subdivision shall
22 mean any operating funds in excess of four percent of the current school
23 year budget, and shall not include funds properly retained under other
24 sections of law. Such warrant shall have the same force and effect as a
25 warrant issued by a board of supervisors to a collecting officer in a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00848-01-5
A. 351 2
1 town. The collecting officer to whom it may be delivered for collection
2 shall be thereby authorized and required to collect from every person
3 named on such school tax roll the sum set opposite [his] such person's
4 name, or the amount due from any person specified therein, in the same
5 manner and with the same powers that collecting officers in towns are
6 authorized to collect taxes levied by the board of supervisors.
7 § 2. This act shall take effect immediately.
