S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 5                                                        A. 5

                      Second Extraordinary Session

                      S E N A T E - A S S E M B L Y

                              July 30, 2010
                               ___________

IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
  Governor) -- read twice and ordered printed, and when  printed  to  be
  committed to the Committee on Rules

IN  ASSEMBLY  --  Introduced by COMMITTEE ON RULES -- (at request of the
  Governor) -- read once and referred to the Committee on Ways and Means

AN ACT to amend the real property tax law, the  education  law  and  the
  general  municipal  law,  in relation to establishing limitations upon
  school district and local government tax levies; and repealing certain
  provisions of the education law relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real  property  tax  law  is amended by adding a new
section 1307 to read as follows:
  S 1307. LIMITATIONS UPON SCHOOL DISTRICT  TAX  LEVIES.  1.  GENERALLY.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF TAXES THAT MAY BE LEVIED
BY  OR  ON  BEHALF  OF  ANY  SCHOOL  DISTRICT,  OTHER THAN A CITY SCHOOL
DISTRICT OF A CITY WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS  OR
MORE,  SHALL NOT EXCEED THE TAX LEVY LIMITATIONS ESTABLISHED PURSUANT TO
SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW.  IT  SHALL  BE
THE  RESPONSIBILITY  OF THE COMMISSIONER OF EDUCATION TO ANNUALLY DETER-
MINE THE TAX LEVY LIMIT OF EACH SCHOOL DISTRICT IN ACCORDANCE  WITH  THE
PROVISIONS OF THIS SECTION.
  2. DEFINITIONS. AS USED IN THIS SECTION:
  (A)  "ALLOWABLE  LEVY  GROWTH FACTOR" SHALL BE THE LESSER OF:  (I) ONE
AND FOUR ONE HUNDREDTHS; OR (II) THE SUM OF ONE PLUS ONE HUNDRED  TWENTY
PERCENT  OF  THE  INFLATION  FACTOR;  PROVIDED, HOWEVER, THAT IN NO CASE
SHALL THE LEVY GROWTH FACTOR BE LESS THAN ONE.
  (B) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNTS  BY  WHICH  THE
TAX LEVY FOR EACH SCHOOL YEAR FROM THE TWO THOUSAND ELEVEN--TWO THOUSAND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12309-01-0

              

S. 5                                2                               A. 5

TWELVE  SCHOOL YEAR THROUGH THE PRIOR SCHOOL YEAR WAS BELOW THE APPLICA-
BLE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR, IF ANY.
  (C) "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH BUDG-
ETED  EXPENDITURES  RESULTING FROM THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF SCHOOL BUILDINGS,  INCLUDING
DEBT  SERVICE  AND  LEASE  EXPENDITURES,  SUBJECT TO THE APPROVAL OF THE
QUALIFIED VOTERS WHERE REQUIRED BY LAW.
  (D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
LOCAL EXPENDITURES, IF ANY.
  (E) "COMING SCHOOL YEAR" MEANS THE SCHOOL  YEAR  FOR  WHICH  TAX  LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.
  (F)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
MENT OF LABOR FOR THE TWELVE MONTH PERIOD PRECEDING JANUARY FIRST OF THE
CURRENT  YEAR  MINUS  THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD PRECEDING JANUARY FIRST OF THE PRIOR YEAR, DIVIDED BY:  (II)  THE
AVERAGE  OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED
STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY
FIRST OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO  FOUR
PLACES.
  (G)  "PRIOR  SCHOOL  YEAR" MEANS THE SCHOOL YEAR IMMEDIATELY PRECEDING
THE COMING SCHOOL YEAR.
  (H) "SCHOOL DISTRICT" MEANS  A  COMMON  SCHOOL  DISTRICT,  UNION  FREE
SCHOOL  DISTRICT,  CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL DISTRICT
OR A CITY  SCHOOL  DISTRICT  IN  A  CITY  WITH  LESS  THAN  ONE  HUNDRED
TWENTY-FIVE THOUSAND INHABITANTS.
  (I)  "TAX LEVY BASE" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT WOULD
BE AUTHORIZED TO LEVY WITHOUT THE ADDITION OF  ANY  AVAILABLE  CARRYOVER
AMOUNT.
  (J)  "TAX  LEVY  LIMIT" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT IS
AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT THE
TAX LEVY LIMIT SHALL NOT INCLUDE THE DISTRICT'S  CAPITAL  TAX  LEVY,  IF
ANY.
  3.  TAX  BASE  GROWTH  FACTOR. (A) NO LATER THAN FEBRUARY FIFTEENTH OF
EACH YEAR, THE STATE BOARD SHALL IDENTIFY  THOSE  SCHOOL  DISTRICTS  FOR
WHICH  TAX  BASE GROWTH FACTORS MUST BE DETERMINED FOR THE COMING SCHOOL
YEAR, AND SHALL NOTIFY THE COMMISSIONER OF EDUCATION  OF  THE  TAX  BASE
GROWTH FACTORS SO DETERMINED, IF ANY.
  (B)  THE STATE BOARD SHALL CALCULATE A QUANTITY CHANGE FACTOR FOR EACH
SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR BASED UPON  THE  PHYSICAL  OR
QUANTITY  CHANGE,  AS  DEFINED  BY SECTION TWELVE HUNDRED TWENTY OF THIS
CHAPTER, REPORTED TO THE STATE BOARD BY THE ASSESSOR OR ASSESSORS PURSU-
ANT TO SECTION FIVE HUNDRED SEVENTY-FIVE OF THIS CHAPTER.  THE  QUANTITY
CHANGE  FACTOR  SHALL SHOW THE PERCENTAGE BY WHICH THE FULL VALUE OF THE
TAXABLE REAL PROPERTY IN THE SCHOOL DISTRICT HAS CHANGED DUE TO PHYSICAL
OR QUANTITY CHANGE BETWEEN THE SECOND FINAL  ASSESSMENT  ROLL  OR  ROLLS
PRECEDING  THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE TO BE
LEVIED, AND THE FINAL ASSESSMENT ROLL OR ROLLS IMMEDIATELY PRECEDING THE
FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE TO BE LEVIED.
  (C)  AFTER  DETERMINING  THE  QUANTITY  CHANGE  FACTOR  FOR  A  SCHOOL
DISTRICT, THE STATE BOARD SHALL PROCEED AS FOLLOWS:
  (I)  IF  THE QUANTITY CHANGE FACTOR IS NEGATIVE, THE STATE BOARD SHALL
NOT DETERMINE A TAX BASE GROWTH FACTOR FOR THE SCHOOL DISTRICT.
  (II) IF THE QUANTITY CHANGE FACTOR IS POSITIVE, THE STATE BOARD  SHALL
DETERMINE  A  TAX  BASE  GROWTH  FACTOR FOR THE SCHOOL DISTRICT WHICH IS

S. 5                                3                               A. 5

EQUAL TO ONE PLUS THE QUANTITY CHANGE FACTOR, PROVIDED THAT IN  NO  CASE
SHALL A TAX BASE GROWTH FACTOR BE IN EXCESS OF ONE AND ONE-TENTH.
  4.  COMPUTATION  OF  TAX  LEVY  LIMITS. (A) THE TAX LEVY BASE FOR EACH
SCHOOL YEAR SHALL BE DETERMINED AS FOLLOWS:
  (I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR  THE  PRIOR  SCHOOL
YEAR.
  (II)  ADD  ANY  PAYMENTS  IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR SCHOOL YEAR.
  (III) SUBTRACT THE CAPITAL TAX LEVY FOR THE PRIOR SCHOOL YEAR, IF ANY.
  (IV) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
  (V) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, IF ANY.
  (B) THE TAX LEVY BASE SHALL BE ADJUSTED BY ADDING THE AVAILABLE CARRY-
OVER, IF ANY, PROVIDED THAT IN NO EVENT SHALL THE AMOUNT OF ADDED CARRY-
OVER EXCEED ONE AND ONE-HALF PERCENT OF  THE  TAX  LEVY  FOR  THE  PRIOR
SCHOOL YEAR.
  (C)  THE  TAX  LEVY  LIMIT  FOR  THE  COMING  SCHOOL YEAR SHALL BE THE
ADJUSTED TAX LEVY BASE, LESS ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN
THE COMING SCHOOL YEAR. NO LATER THAN MARCH  FIRST  OF  EACH  YEAR,  THE
COMMISSIONER  OF  EDUCATION  SHALL CALCULATE THE TAX LEVY LIMIT FOR EACH
SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND SHALL NOTIFY EACH SCHOOL
DISTRICT OF THE ALLOWABLE LEVY GROWTH FACTOR, THE  DISTRICT'S  TAX  BASE
GROWTH  FACTOR,  IF ANY, THE DISTRICT'S TAX LEVY BASE AND THE DISTRICT'S
TAX LEVY LIMIT.
  5. VOTER UNDERRIDES. THE QUALIFIED VOTERS OF  A  SCHOOL  DISTRICT  MAY
VOTE  TO  REDUCE  (OR UNDERRIDE) THE LIMITATIONS IMPOSED BY THIS SECTION
FOR SUCH SCHOOL DISTRICT FOR  THE  COMING  SCHOOL  YEAR  IN  THE  MANNER
PROVIDED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW.
  6.  REORGANIZED  SCHOOL  DISTRICTS.  WHEN TWO OR MORE SCHOOL DISTRICTS
REORGANIZE, THE COMMISSIONER OF EDUCATION SHALL DETERMINE THE  TAX  LEVY
LIMIT  FOR  THE  REORGANIZED SCHOOL DISTRICT BASED ON THE RESPECTIVE TAX
LEVY LIMITS OF THE SCHOOL DISTRICTS THAT FORMED THE REORGANIZED DISTRICT
FROM THE LAST  SCHOOL  YEAR  IN  WHICH  THEY  WERE  SEPARATE  DISTRICTS,
PROVIDED  THAT  IN  THE  EVENT OF FORMATION OF A NEW CENTRAL HIGH SCHOOL
DISTRICT, THE TAX LEVY LIMITS FOR THE NEW CENTRAL HIGH  SCHOOL  DISTRICT
AND  ITS  COMPONENT  SCHOOL  DISTRICTS SHALL BE DETERMINED IN ACCORDANCE
WITH A METHODOLOGY PRESCRIBED BY THE COMMISSIONER OF EDUCATION.
  7. ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX  LEVY
FOR  A  GIVEN  SCHOOL  YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTAB-
LISHED PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THE  EDUCATION
LAW DUE TO CLERICAL OR TECHNICAL ERRORS, THE SCHOOL DISTRICT SHALL PLACE
THE  EXCESS  AMOUNT  OF  THE  LEVY  IN  RESERVE  IN ACCORDANCE WITH SUCH
REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE  SUCH
FUNDS  AND  ANY  INTEREST  EARNED THEREON TO OFFSET THE TAX LEVY FOR THE
ENSUING SCHOOL YEAR.
  S 2. The education law is amended by adding a new  section  2023-a  to
read as follows:
  S  2023-A. VOTER APPROVAL OF TAX LEVY LIMITATIONS. 1. THE TAX LEVY FOR
ANY SCHOOL DISTRICT SUBJECT TO THE TAX LEVY LIMITATIONS  ESTABLISHED  BY
SECTION  THIRTEEN  HUNDRED  SEVEN  OF THE REAL PROPERTY TAX LAW SHALL BE
APPROVED BY THE QUALIFIED VOTERS OF THE SCHOOL DISTRICT AS  PROVIDED  IN
THIS  SECTION.  AS USED IN THIS SECTION, THE TERM "TAX LEVY PROPOSITION"
MEANS A PROPOSITION TO AUTHORIZE A TAX LEVY SUFFICIENT  TO  SUPPORT  THE
PROPOSED  SCHOOL  DISTRICT  BUDGET,  EXCLUDING  ANY PROPOSED CAPITAL TAX
LEVY; THE TERM "UNDERRIDE PROPOSITION" MEANS A PROPOSITION TO  IMPOSE  A
MORE RESTRICTIVE TAX LEVY LIMIT UPON A SCHOOL DISTRICT THAN THE TAX LEVY
LIMIT ESTABLISHED PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL

S. 5                                4                               A. 5

PROPERTY  TAX  LAW;  AND  THE TERM "GENERAL PURPOSE STATE AID" MEANS ALL
FORMS OF STATE AID WHICH ARE PAYABLE TO A  SCHOOL  DISTRICT  AS  GENERAL
SUPPORT  FOR  THE  PUBLIC  SCHOOLS,  WITH THE EXCEPTION OF BUILDING AID,
LIBRARY  AID,  COMPUTER HARDWARE AND SOFTWARE AID, UNIVERSAL PRE-KINDER-
GARTEN AID, TEXTBOOK AID, PUBLIC HIGH COST EXCESS COST AID  AND  PRIVATE
EXCESS  COST  AID. THE DIRECTOR OF THE BUDGET SHALL ANNUALLY CERTIFY THE
AMOUNT OF GENERAL PURPOSE STATE AID PAYABLE TO EACH SCHOOL DISTRICT.
  2. A. THE QUALIFIED VOTERS OF A COMMON  SCHOOL  DISTRICT,  UNION  FREE
SCHOOL  DISTRICT,  CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL DISTRICT
OR A CITY  SCHOOL  DISTRICT  IN  A  CITY  WITH  LESS  THAN  ONE  HUNDRED
TWENTY-FIVE THOUSAND INHABITANTS, UPON FILING OF A VALID PETITION PURSU-
ANT  TO  PARAGRAPH  B  OF  THIS SUBDIVISION, MAY VOTE TO IMPOSE TAX LEVY
LIMITS FOR THE ENSUING SCHOOL YEAR THAT ARE MORE RESTRICTIVE THAN  THOSE
OTHERWISE IMPOSED BY SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
TAX LAW.  NO SUCH VOTE SHALL APPLY TO MORE THAN ONE SCHOOL YEAR.
  B. UPON THE FILING WITH THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION OF
ONE  OR  MORE  PETITIONS PURSUANT TO THIS SUBDIVISION REQUESTING THAT AN
UNDERRIDE PROPOSITION BE SUBMITTED FOR A  VOTE  AT  A  SPECIAL  DISTRICT
MEETING,  SUCH OFFICERS SHALL CALL A SPECIAL DISTRICT MEETING TO BE HELD
ON THE FIRST TUESDAY IN MAY, OR THE LAST TUESDAY IN  APRIL  WHERE  THERE
WOULD  BE  A CONFLICT WITH RELIGIOUS OBSERVANCES, IN ACCORDANCE WITH THE
APPLICABLE PROVISIONS OF SUBDIVISION THREE OF SECTION TWO THOUSAND SEVEN
OR SUBDIVISION THREE OF SECTION TWO THOUSAND SIX OF  THIS  ARTICLE,  FOR
THE  PURPOSE OF SUBMITTING TO THE QUALIFIED VOTERS AN UNDERRIDE PROPOSI-
TION. SUCH OFFICERS SHALL SUBMIT FOR A VOTE OF THE QUALIFIED VOTERS  THE
PROPOSITION  THAT WAS SIGNED BY THE GREATEST NUMBER OF QUALIFIED VOTERS,
OR, IF THERE IS A TIE, THE PROPOSITION SIGNED BY THE GREATEST NUMBER  OF
QUALIFIED  VOTERS  THAT  WAS  FILED  FIRST.  A PETITION FOR AN UNDERRIDE
PROPOSITION SHALL BE SIGNED BY: (I) AT LEAST TEN PERCENT OF  THE  REGIS-
TERED  VOTERS  OF  THE SCHOOL DISTRICT BASED ON THE REGISTER PREPARED AT
THE LAST ANNUAL MEETING AND ELECTION OF THE SCHOOL DISTRICT; OR (II)  IF
THE  SCHOOL  DISTRICT  DOES NOT PROVIDE FOR THE PERSONAL REGISTRATION OF
VOTERS, BY TWO HUNDRED FIFTY QUALIFIED VOTERS OR TWENTY PERCENT  OF  THE
NUMBER  OF  VOTERS  WHO  VOTED  IN  THE  PREVIOUS ANNUAL ELECTION OF THE
MEMBERS OF THE BOARD OF EDUCATION OR TRUSTEES, WHICHEVER IS LESS.   SUCH
PETITION  SHALL  BE  FILED  IN  THE  OFFICE OF THE CLERK OF THE DISTRICT
BETWEEN THE HOURS OF NINE A.M. AND FIVE P.M., NOT LATER THAN THE TWENTI-
ETH DAY PRECEDING THE SPECIAL DISTRICT MEETING  AT  WHICH  AN  UNDERRIDE
VOTE MAY OCCUR.
  C.  WHERE  A  PROPOSITION  TO UNDERRIDE A TAX LEVY LIMITATION IS TO BE
SUBMITTED FOR A VOTE AT A  SPECIAL  DISTRICT  MEETING  CALLED  FOR  THIS
PURPOSE,  THE  CLERK  OF  THE DISTRICT SHALL GIVE NOTICE OF THE TIME AND
PLACE OF THE SPECIAL DISTRICT MEETING BY PUBLISHING A  NOTICE  AT  LEAST
FOURTEEN DAYS PRIOR TO THE SPECIAL DISTRICT MEETING IN TWO NEWSPAPERS IF
THERE  SHALL  BE  TWO,  OR  IN  ONE NEWSPAPER IF THERE SHALL BE BUT ONE,
HAVING GENERAL CIRCULATION WITHIN SUCH DISTRICT, PROVIDED, HOWEVER, THAT
IF THERE IS NO NEWSPAPER HAVING GENERAL CIRCULATION WITHIN THE DISTRICT,
THE SAID NOTICE SHALL BE POSTED IN AT LEAST TWENTY OF  THE  MOST  PUBLIC
PLACES IN SAID DISTRICT FOURTEEN DAYS BEFORE THE TIME OF SUCH MEETING.
  D.  AN  UNDERRIDE  PROPOSITION  SHALL  BE  A  SEPARATE  PROPOSITION IN
SUBSTANTIALLY THE FOLLOWING FORM:
  "SHALL THE            SCHOOL DISTRICT BE REQUIRED TO IMPOSE A TAX LEVY
FOR THE      SCHOOL YEAR, EXCLUDING ANY CAPITAL TAX  LEVY,  THAT  IS  NO
GREATER  THAN       ,  EVEN THOUGH THE STATUTORY TAX LEVY LIMIT FOR THAT
SCHOOL YEAR IS       ?"

S. 5                                5                               A. 5

  E. AN UNDERRIDE PROPOSITION SHALL BE APPROVED IF OVER FIFTY PERCENT OF
THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE. IF SUCH UNDERRIDE  PROPO-
SITION  IS  APPROVED BY THE QUALIFIED VOTERS, THE TAX LEVY LIMIT IMPOSED
THEREBY SHALL BE DEEMED TO BE THE TAX LEVY LIMIT FOR THE SCHOOL DISTRICT
FOR  THE  COMING  SCHOOL  YEAR  FOR PURPOSES OF SECTION THIRTEEN HUNDRED
SEVEN OF THE REAL PROPERTY TAX LAW, AND THE TRUSTEES OR BOARD OF  EDUCA-
TION  SHALL  ADOPT A BUDGET THAT COMPLIES WITH SUCH TAX LEVY LIMIT. UPON
APPROVAL OF AN UNDERRIDE PROPOSITION, NO OTHER TAX LEVY PROPOSITION  MAY
BE SUBMITTED TO THE VOTERS FOR THAT SAME SCHOOL YEAR.
  3.  A.  UNLESS  AN UNDERRIDE PROPOSITION HAS BEEN APPROVED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION,  THE  TRUSTEE,  TRUSTEES  OR  BOARD  OF
EDUCATION  OF  A SCHOOL DISTRICT SHALL PRESENT AT THE ANNUAL MEETING AND
ELECTION A TAX LEVY PROPOSITION IN SUBSTANTIALLY THE FOLLOWING FORM:
  "SHALL THE            SCHOOL DISTRICT BE AUTHORIZED TO  IMPOSE  A  TAX
LEVY  FOR  THE        SCHOOL  YEAR,  EXCLUDING  ANY  CAPITAL  TAX  LEVY,
OF       , WHEN THE STATUTORY  TAX  LEVY  LIMIT  FOR  THAT  SCHOOL  YEAR
IS       ?"
  B.  EXCEPT  AS OTHERWISE PROVIDED IN SECTION THIRTEEN HUNDRED SEVEN OF
THE REAL PROPERTY TAX LAW, IF THE PROPOSED TAX LEVY DOES NOT EXCEED  THE
TAX  LEVY LIMIT DETERMINED PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF
THE REAL PROPERTY TAX LAW, THEN THE PROPOSITION  SHALL  BE  APPROVED  IF
OVER  FIFTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE. IF
THE PROPOSED TAX LEVY WOULD EXCEED THE TAX LEVY LIMIT DETERMINED  PURSU-
ANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, THEN
THE  VOTING MARGIN NECESSARY FOR SUCH A PROPOSITION TO BE APPROVED SHALL
BE AS FOLLOWS:
  (I) IF THE GENERAL PURPOSE STATE AID PAYABLE TO  THE  SCHOOL  DISTRICT
FOR  THE  ENSUING  YEAR IS TO INCREASE BY FIVE PERCENT OR MORE OVER SUCH
AID FOR THE PRIOR YEAR, THEN NO LESS THAN SIXTY  PERCENT  OF  THE  VOTES
CAST  ON  THE PROPOSITION BY QUALIFIED VOTERS MUST BE IN THE AFFIRMATIVE
IN ORDER FOR THE PROPOSITION TO BE APPROVED.
  (II) IF THE GENERAL PURPOSE STATE AID PAYABLE TO THE  SCHOOL  DISTRICT
FOR  THE  ENSUING  SCHOOL  YEAR IS TO INCREASE BY LESS THAN FIVE PERCENT
OVER SUCH AID FOR THE PRIOR YEAR, THEN NO LESS THAN  FIFTY-FIVE  PERCENT
OF THE VOTES CAST ON THE PROPOSITION MUST BE IN THE AFFIRMATIVE IN ORDER
FOR THE PROPOSITION TO BE APPROVED.
  (III) IF THE AMOUNT OF GENERAL PURPOSE STATE AID WHICH WILL BE PAYABLE
TO  A  SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR HAS NOT BEEN CERTIFIED
BY THE DIRECTOR OF THE BUDGET, THEN OVER FIFTY PERCENT OF THE VOTES CAST
ON THE PROPOSITION BY QUALIFIED VOTERS MUST BE  IN  THE  AFFIRMATIVE  IN
ORDER FOR THE PROPOSITION TO BE APPROVED.
  C.  IF  THE  TAX LEVY PROPOSITION IS APPROVED BY THE QUALIFIED VOTERS,
THE TAX LEVY LIMIT IMPOSED THEREBY SHALL BE DEEMED TO BE  THE  TAX  LEVY
LIMIT  FOR THE SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND THE TRUS-
TEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT COMPLIES WITH  SUCH
TAX LEVY LIMIT. IF, HOWEVER, THE TAX LEVY PROPOSITION IS NOT APPROVED BY
THE  QUALIFIED  VOTERS,  THEN  THE  TRUSTEES OR BOARD OF EDUCATION SHALL
ADOPT A BUDGET THAT REQUIRES A TAX LEVY EXCLUDING ANY CAPITAL TAX  LEVY,
THAT IS NO GREATER THAN THE TAX LEVY BASE DETERMINED PURSUANT TO SECTION
THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW.
  S  3. Subdivisions 1 and 3 of section 416 of the education law, subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
as amended by chapter 171 of the laws of 1996, are amended  to  read  as
follows:
  1. A majority of the voters of any school district, present and voting
at  any annual or special district meeting, duly convened, may authorize

S. 5                                6                               A. 5

such acts and vote such taxes as they shall deem  expedient  for  making
additions,  alterations, repairs or improvements, to the sites or build-
ings belonging to the  district,  or  for  altering  and  equipping  for
library use any former schoolhouse belonging to the district, or for the
purchase  of  other sites or buildings, or for a change of sites, or for
the purchase of land and buildings  for  agricultural,  athletic,  play-
ground  or social center purposes, or for the erection of new buildings,
or for building a bus garage, or for [buying apparatus,  implements,  or
fixtures,  or  for  paying  the  wages  of  teachers,  and the necessary
expenses of the school, or for the purpose of paying  any  judgment,  or
for] the payment or refunding of an outstanding bonded indebtedness[, or
for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
  3.  No  addition to or change of site or purchase of a new site or tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse, or for the purchase of lands  and  buildings  for  agricul-
tural,  athletic,  playground or social center purposes, or for building
any new schoolhouse or for the erection of an addition  to  any  school-
house  already  built, or for the payment or refunding of an outstanding
bonded indebtedness, shall be voted at any such meeting in a union  free
school  district or a city school district [which conducts annual budget
votes in accordance with article forty-one of this chapter  pursuant  to
section  twenty-six  hundred  one-a of this chapter] IN A CITY WITH LESS
THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, unless  a  notice  by
the board of education stating that such tax will be proposed, and spec-
ifying  the object thereof and the amount to be expended therefor, shall
have been given in the manner provided herein for the notice of an annu-
al meeting. In a common school district the notice of a special  meeting
to authorize any of the improvements enumerated in this section shall be
given  as provided in [section two thousand six] THIS CHAPTER. The board
of education of a union free school district or a city  school  district
[which conducts annual budget votes in accordance with article forty-one
of  this  chapter  pursuant  to section twenty-six hundred one-a of this
chapter] IN A CITY WITH  LESS  THAN  ONE  HUNDRED  TWENTY-FIVE  THOUSAND
INHABITANTS, may determine that the vote upon any question to be submit-
ted at a special meeting as provided in this section shall be by ballot,
in  which  case it shall state in the notice of such special meeting the
hours during which the polls shall be kept open. Printed ballots may  be
prepared  by  the board in advance of the meeting and the proposition or
propositions called for in the notice of the meeting may be submitted in
substantially the same manner as propositions to  be  voted  upon  at  a
general election.
  S  4.  Subdivisions 14, 15, 18 and 24 of section 1604 of the education
law, subdivisions 14 and 18 as amended by chapter 654  of  the  laws  of
1953, are amended to read as follows:
  14.  To  keep  each  of  the  schoolhouses under their charge, and its
furniture, school apparatus and appurtenances, in necessary  and  proper
repair, and make the same reasonably comfortable for use[, but shall not
expend  therefor  without  vote  of the district an amount to exceed one
hundred dollars in any one year].
  15. To make any repairs and  abate  any  nuisances,  pursuant  to  the
direction of the district superintendent as herein provided, and provide
fuel,  stoves or other heating apparatus, pails, brooms and other imple-
ments necessary to keep the schoolhouses and the schoolrooms clean,  and
make  them  reasonably  comfortable for use[, when no provision has been

S. 5                                7                               A. 5

made therefor by a vote of  the  district,  or  the  sum  voted  by  the
district for said purposes shall have proved insufficient].
  18.  To  [expend  in  the]  purchase [of] a dictionary, books, reprod-
uctions of standard works of art, maps, globes or other  school  appara-
tus,  including  implements,  apparatus  and supplies for instruction in
agriculture, or for conducting athletic playgrounds  and  social  center
activities[,  a sum not exceeding fifty dollars in any one year, without
a vote of the district].
  24. To furnish lighting facilities, janitorial  care  and  supervision
for  highway underpasses [when authorized to do so by vote of a district
meeting under the provisions of subdivision twenty of section two  thou-
sand fifteen of this chapter].
  S  5.  Section  1608  of the education law, as amended by section 5 of
part A of chapter 436 of the laws of  1997,  subdivisions  2  and  4  as
amended  by chapter 640 of the laws of 2008, subdivision 7 as amended by
section 4 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision 7 as amended by chapter 238 of the laws of 2007, is  amended
to read as follows:
  S  1608.  Estimated expenses for ensuing year. 1. It shall be the duty
of the trustees of each common school district to present at the  annual
budget  hearing  a  detailed statement in writing of the amount of money
which will be required for the ensuing year for school purposes,  speci-
fying the several purposes and the amount for each.  WHERE A PROPOSITION
TO UNDERRIDE A TAX LEVY LIMITATION HAS BEEN APPROVED PURSUANT TO SECTION
TWO  THOUSAND TWENTY-THREE-A OF THIS CHAPTER, THE TRUSTEES SHALL PRESENT
AT THE ANNUAL BUDGET HEARING A BUDGET THAT COMPLIES  WITH  THE  APPROVED
UNDERRIDE  PROPOSITION.  The amount for each purpose estimated necessary
for payments to boards of  cooperative  educational  services  shall  be
shown  in  full, with no deduction of estimated state aid. The amount of
state aid provided and its percentage relationship to the total expendi-
tures shall also be shown.  This  section  shall  not  be  construed  to
prevent  the trustees from presenting such statement at a budget hearing
held not less than seven nor more than fourteen days prior to a  special
meeting  called for the purpose, nor from presenting a supplementary and
amended statement or estimate at any time.
  2. Such statement shall be completed at least seven  days  before  the
budget  hearing  at which it is to be presented and copies thereof shall
be prepared and made available, upon request and at the school  district
offices,  at  any  public library or free association library within the
district and on the school district's internet website, if  one  exists,
to  residents  within  the  district  during the period of fourteen days
immediately preceding  the  annual  meeting  [and  election  or  special
district  meeting at which the budget vote will occur] and at such meet-
ing or hearing. The board shall also as a part of the notice required by
section two thousand three of this chapter give notice of the date, time
and place of the budget hearing and that a copy of such statement may be
obtained by any resident in the district  at  each  schoolhouse  in  the
district  in  which school is maintained during certain designated hours
on each day other than a Saturday, Sunday or holiday during the fourteen
days immediately preceding such meeting. The board shall include  notice
of  the  availability  of such statement at least once during the school
year in any district-wide mailing distributed.
  3. Commencing with the proposed budget for the nineteen hundred  nine-
ty-seven--ninety-eight  school  year,  such  proposed budget shall be in
plain language and shall be consistent with regulations  promulgated  by
the  commissioner  pursuant  to  subdivision twenty-six of section three

S. 5                                8                               A. 5

hundred five of this chapter. Categorization of and format for  revenue,
including  payments in lieu of taxes, property tax refunds from certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes  in  such data from the prior year and, in the case of [a resub-
mitted or] AN amended budget, changes in such information from the prior
year's submitted budget, shall be complete and accurate and set forth in
such a manner as to best promote public comprehension and readability.
  4. Commencing with the proposed budget for the nineteen hundred  nine-
ty-eight--ninety-nine   school  year,  such  proposed  budget  shall  be
presented in three components: a program component, a capital  component
and  an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation  with
local  school  district  officials.  The  administrative component shall
include, but need not be limited to, office and  central  administrative
expenses, traveling expenses and all compensation, salaries and benefits
of  all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy,  assistant,  associate
or  other  superintendents  under  all  existing employment contracts or
collective bargaining agreements, any and  all  expenditures  associated
with  the  operation  of the office of trustee or board of trustees, the
office of the superintendent of  schools,  general  administration,  the
school  business office, consulting costs not directly related to direct
student services and programs, planning  and  all  other  administrative
activities. The program component shall include, but need not be limited
to, all program expenditures of the school district, including the sala-
ries  and benefits of teachers and any school administrators or supervi-
sors who spend a majority of their time performing teaching duties,  and
all  transportation  operating  expenses.    The capital component shall
include, but need not be limited to, all  transportation  capital,  debt
service,  and  lease expenditures; costs resulting from judgments in tax
certiorari proceedings or the payment of awards  from  court  judgments,
administrative  orders or settled or compromised claims; and all facili-
ties costs of the school district, including facilities  lease  expendi-
tures,  the  annual  debt  service  and  total  debt  for all facilities
financed by bonds and notes of the school district,  and  the  costs  of
construction, acquisition, reconstruction, rehabilitation or improvement
of  school  buildings, provided that such budget shall include a rental,
operations and maintenance section that includes base rent costs,  total
rent  costs, operation and maintenance charges, cost per square foot for
each facility leased by the school district, and any  and  all  expendi-
tures   associated   with   custodial  salaries  and  benefits,  service
contracts, supplies, utilities, and maintenance and  repairs  of  school
facilities.  [For  the  purposes  of the development of a budget for the
nineteen hundred ninety-eight--ninety-nine school year, the  trustee  or
board  of  trustees  shall  separate the district's program, capital and
administrative costs for the nineteen hundred ninety-seven--ninety-eight
school year in the manner as if  the  budget  for  such  year  had  been
presented in three components.]
  5.  The  trustee or board of trustees shall append to the statement of
estimated expenditures a detailed statement of the total compensation to
be paid to the superintendent of schools, and any assistant or associate
superintendents of schools in  the  ensuing  school  year,  including  a
delineation  of  the salary, annualized cost of benefits and any in-kind
or other form of remuneration. The trustees shall also append a list  of
all  other  school  administrators and supervisors, if any, whose annual
salary will be eighty-five thousand  dollars  or  more  in  the  ensuing

S. 5                                9                               A. 5

school year, with the title of their positions and annual salary identi-
fied;  provided  however,  that  the commissioner may adjust such salary
level to reflect increases in administrative salaries after June thirti-
eth,  nineteen hundred ninety-eight. The trustees shall submit a copy of
such list and statement, in a form prescribed by  the  commissioner,  of
compensation  to  the commissioner within five days after their prepara-
tion. The commissioner shall compile such data, together with  the  data
submitted  pursuant  to  subdivision  three of section seventeen hundred
sixteen of this chapter, into  a  single  statewide  compilation,  which
shall  be  made  available  to  the governor, the legislature, and other
interested parties upon request.
  6. Each year, the board of education shall prepare a  school  district
report card, pursuant to regulations of the commissioner, and shall make
it  publicly available by transmitting it to local newspapers of general
circulation, appending it to copies of the proposed budget made publicly
available as required by law, making it available  for  distribution  at
the  annual  meeting,  and otherwise disseminating it as required by the
commissioner. Such report card shall include measures  of  the  academic
performance  of  the  school  district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the  commissioner,  the  report
card  shall  also  compare  these measures to statewide averages for all
public schools, and statewide averages for public schools of  comparable
wealth  and  need, developed by the commissioner. Such report card shall
include, at a minimum, any information on the school district  regarding
pupil  performance  and expenditure per pupil required to be included in
the annual report by the regents to the  governor  and  the  legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information  required  by the commissioner. School districts (i) identi-
fied as having fifteen percent or more  of  their  students  in  special
education,  or  (ii)  which have fifty percent or more of their students
with disabilities  in  special  education  programs  or  services  sixty
percent  or  more  of the school day in a general education building, or
(iii) which have eight percent or more of their students with  disabili-
ties  in special education programs in public or private separate educa-
tional settings shall indicate on  their  school  district  report  card
their respective percentages as defined in this [subparagraph] PARAGRAPH
and [subparagraphs] PARAGRAPHS (i) and (ii) of this [paragraph] SUBDIVI-
SION as compared to the statewide average.
  7. a. Each year, commencing with the proposed budget for the two thou-
sand--two  thousand  one  school  year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local newspapers of general circulation, appending it to copies  of  the
proposed  budget  made  publicly available as required by law, making it
available for distribution at the annual [meeting] BUDGET  HEARING,  and
otherwise  disseminating it as required by the commissioner. Such report
card shall include: (i) the amount of total spending and total estimated
school tax levy that would result from adoption of the  proposed  budget
and  the  percentage  increase  or  decrease in total spending and total
school tax levy from the school district budget for the preceding school
year; and (ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX  LEVY  BASE  DETER-
MINED  PURSUANT  TO  SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
TAX LAW, THE TAX LEVY PROPOSED BY THE DISTRICT, THE PROPOSED CAPITAL TAX
LEVY, IF ANY; AND (III) the projected enrollment growth for  the  school
year  for  which  the  budget  is prepared, and the percentage change in

S. 5                               10                               A. 5

enrollment from the previous year; and  [(iii)]    (IV)  the  percentage
increase  in the consumer price index, as defined in paragraph c of this
subdivision; and [(iv)] (V) the projected amount of  the  unappropriated
unreserved  fund balance that will be retained if the proposed budget is
adopted, the projected amount of the reserved fund balance, the project-
ed amount of the  appropriated  fund  balance,  the  percentage  of  the
proposed  budget that the unappropriated unreserved fund balance repres-
ents, the actual unappropriated unreserved fund balance retained in  the
school district budget for the preceding school year, and the percentage
of  the  school  district  budget for the preceding school year that the
actual unappropriated unreserved fund balance represents.
  b. A copy of the property tax report  card  prepared  for  the  annual
[district  meeting]  BUDGET HEARING shall be submitted to the department
in the manner prescribed by the department by the end  of  the  business
day  next  following approval of the report card by the trustee or board
of trustees, but no later than twenty-four days prior to  the  statewide
uniform  voting  day.  The  department  shall  compile such data for all
school districts [whose budgets are subject to a vote of  the  qualified
voters]  SUBJECT  TO  A TAX LEVY LIMITATION PURSUANT TO SECTION THIRTEEN
HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW and shall make such  compila-
tion  available  electronically at least ten days prior to the statewide
uniform voting day.
  c. For purposes of  this  subdivision,  "percentage  increase  in  the
consumer  price  index"  shall  mean  the percentage that represents the
product of one hundred and the quotient  of:  (i)  the  average  of  the
national  consumer price indexes determined by the United States depart-
ment of labor for the twelve-month period preceding January first of the
current year minus the average of the national  consumer  price  indexes
determined by the United States department of labor for the twelve-month
period  preceding  January  first of the prior year, divided by (ii) the
average of the national consumer price indexes determined by the  United
States department of labor for the twelve-month period preceding January
first  of  the prior year, with the result expressed as a decimal to two
places.
  S 6. Subdivisions 22 and 28 of section  1709  of  the  education  law,
subdivision  22  as  amended  by  chapter  682  of the laws of 2002, are
amended to read as follows:
  22. To provide, purchase, lease, furnish  and  maintain  buildings  or
other suitable accommodations for the use of teachers or other employees
of  the  district  [when  duly authorized by a meeting of the district],
SUBJECT TO APPROVAL OF THE VOTERS WHERE OTHERWISE REQUIRED BY  LAW,  and
to  raise  by  tax  upon the taxable property of the district and moneys
necessary for such purposes; and also to provide, maintain and operate a
cafeteria or restaurant service for the use of pupils and teachers while
at school. Such cafeteria may  be  used  by  the  community  for  school
related  functions  and  activities  and to furnish meals to the elderly
residents, sixty years of age or older, of the district.  Such CAFETERIA
OR RESTAURANT SERVICE AND SUCH  utilization  shall  be  subject  to  the
approval of the board of education.  Charges shall be sufficient to meet
the direct cost of preparing and serving such meals, reducible by avail-
able reimbursements.
  28.  To  furnish  lighting facilities, janitorial care and supervision
for highway underpasses [when authorized to do so by vote of a  district
meeting  under the provisions of subdivision twenty of section two thou-
sand fifteen of this chapter].

S. 5                               11                               A. 5

  S 7. Section 1716 of the education law, as amended  by  section  7  of
part  A  of  chapter  436  of  the laws of 1997, subdivisions 2 and 4 as
amended by chapter 640 of the laws of 2008, subdivision 7 as amended  by
section 5 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision  7 as amended by chapter 238 of the laws of 2007, is amended
to read as follows:
  S 1716. Estimated expenses for ensuing year. 1. It shall be  the  duty
of  the  board  of  education  of each district to present at the annual
budget hearing a detailed statement in writing of the  amount  of  money
which  will be required for the ensuing year for school purposes, speci-
fying the several purposes and the amount for each.  WHERE A PROPOSITION
TO UNDERRIDE A TAX LEVY LIMITATION HAS BEEN APPROVED PURSUANT TO SECTION
TWO THOUSAND TWENTY-THREE-A OF THIS  CHAPTER,  THE  BOARD  OF  EDUCATION
SHALL  PRESENT  AT THE ANNUAL BUDGET HEARING A BUDGET THAT COMPLIES WITH
THE APPROVED UNDERRIDE PROPOSITION. The amount for  each  purpose  esti-
mated  necessary  for  payments  to  boards  of  cooperative educational
services shall be shown in full, with no deduction  of  estimated  state
aid. The amount of state aid provided and its percentage relationship to
the  total  expenditures  shall also be shown. This section shall not be
construed to prevent the board from presenting such statement at a budg-
et hearing held not less than seven nor more than fourteen days prior to
a special meeting called for the purpose, nor from presenting a  supple-
mentary and amended statement or estimate at any time.
  2.  Such  statement  shall be completed at least seven days before the
budget hearing at which it is to be presented and copies  thereof  shall
be  prepared and made available, upon request and at the school district
offices, at any public library or free association  library  within  the
district  and  on the school district's internet website, if one exists,
to residents within the district during  the  period  of  fourteen  days
immediately  preceding  the  annual  meeting  [and  election  or special
district meeting at which the budget vote will occur] and at such  meet-
ing or hearing. The board shall also as a part of the notice required by
section  two thousand four of this chapter give notice of the date, time
and place of the budget hearing and that a copy of such statement may be
obtained by any resident in the district  at  each  schoolhouse  in  the
district  in  which school is maintained during certain designated hours
on each day other than a Saturday, Sunday or holiday during the fourteen
days immediately preceding such meeting. The board shall include  notice
of  the  availability  of such statement at least once during the school
year in any district-wide mailing distributed.
  3. Commencing with the proposed budget for the nineteen hundred  nine-
ty-seven--ninety-eight  school  year,  such  proposed budget shall be in
plain language and shall be consistent with regulations  promulgated  by
the  commissioner  pursuant  to  subdivision twenty-six of section three
hundred five of this chapter. Categorization of and format for  revenue,
including  payments in lieu of taxes, property tax refunds from certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes in such data from the prior year and, in the case of  [a  resub-
mitted or] AN amended budget, changes in such information from the prior
year  submitted  budget, shall be complete and accurate and set forth in
such a manner as to best promote public comprehension and readability.
  4. Commencing with the proposed budget for the nineteen hundred  nine-
ty-eight--ninety-nine   school  year,  such  proposed  budget  shall  be
presented in three components: a program component, a capital  component
and  an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation  with

S. 5                               12                               A. 5

local  school  district  officials.  The  administrative component shall
include, but need not be limited to, office and  central  administrative
expenses, traveling expenses and all compensation, salaries and benefits
of  all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy,  assistant,  associate
or  other  superintendents  under  all  existing employment contracts or
collective bargaining agreements, any and  all  expenditures  associated
with  the  operation of the board of education, the office of the super-
intendent  of  schools,  general  administration,  the  school  business
office, consulting costs not directly related to direct student services
and  programs,  planning  and  all other administrative activities.  The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of teachers and any school administrators or  supervisors  who  spend  a
majority  of  their time performing teaching duties, and all transporta-
tion operating expenses. The capital component shall include,  but  need
not  be  limited to, all transportation capital, debt service, and lease
expenditures;  costs  resulting  from  judgments   in   tax   certiorari
proceedings  or  the payment of awards from court judgments, administra-
tive orders or settled or compromised claims; and all  facilities  costs
of  the  school  district,  including facilities lease expenditures, the
annual debt service and total debt for all facilities financed by  bonds
and  notes of the school district, and the costs of construction, acqui-
sition, reconstruction, rehabilitation or improvement of  school  build-
ings,  provided  that such budget shall include a rental, operations and
maintenance section that includes base rent  costs,  total  rent  costs,
operation and maintenance charges, cost per square foot for each facili-
ty  leased  by the school district, and any and all expenditures associ-
ated with custodial salaries and benefits, service contracts,  supplies,
utilities,  and  maintenance  and repairs of school facilities. [For the
purposes of the development of a budget for the nineteen  hundred  nine-
ty-eight--ninety-nine school year, the board of education shall separate
the  district's  program, capital and administrative costs for the nine-
teen hundred ninety-seven--ninety-eight school year in the manner as  if
the budget for such year had been presented in three components.]
  5.  The  board of education shall append to the statement of estimated
expenditures a detailed statement of the total compensation to  be  paid
to  the superintendent of schools, and any assistant or associate super-
intendents of schools in the ensuing school year,  including  a  deline-
ation  of  the  salary,  annualized  cost of benefits and any in-kind or
other form of remuneration. The board shall also append a  list  of  all
other school administrators and supervisors, if any, whose annual salary
will be eighty-five thousand dollars or more in the ensuing school year,
with the title of their positions and annual salary identified; provided
however,  that  the commissioner may adjust such salary level to reflect
increases in administrative  salaries  after  June  thirtieth,  nineteen
hundred ninety-eight. The board of education shall submit a copy of such
list and statement, in a form prescribed by the commissioner, of compen-
sation to the commissioner within five days after their preparation. The
commissioner  shall  compile such data, together with the data submitted
pursuant to subdivision four of section sixteen hundred  eight  of  this
[chapter]  TITLE,  into  a  single statewide compilation, which shall be
made available to the governor, the legislature,  and  other  interested
parties upon request.
  6.  Each  year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make

S. 5                               13                               A. 5

it publicly available by transmitting it to local newspapers of  general
circulation, appending it to copies of the proposed budget made publicly
available  as  required  by law, making it available for distribution at
the  annual  meeting,  and otherwise disseminating it as required by the
commissioner. Such report card shall include measures  of  the  academic
performance  of  the  school  district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the  commissioner,  the  report
card  shall  also  compare  these measures to statewide averages for all
public schools, and statewide averages for public schools of  comparable
wealth  and  need, developed by the commissioner. Such report card shall
include, at a minimum, any information of the school district  regarding
pupil  performance  and expenditure per pupil required to be included in
the annual report by the regents to the  governor  and  the  legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information  required  by the commissioner. School districts (i) identi-
fied as having fifteen percent or more  of  their  students  in  special
education,  or  (ii)  which have fifty percent or more of their students
with disabilities  in  special  education  programs  or  services  sixty
percent  or  more  of the school day in a general education building, or
(iii) which have eight percent or more of their students with  disabili-
ties  in special education programs in public or private separate educa-
tional settings shall indicate on  their  school  district  report  card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
  7. a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers  of  general  circulation,  appending  it to copies of the proposed
budget made publicly available as required by law, making  it  available
for  distribution  at the annual [meeting] BUDGET HEARING, and otherwise
disseminating it as required by the commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy that would result from adoption of  the  proposed  budget  and  the
percentage  increase  or decrease in total spending and total school tax
levy from the school district budget for the preceding school year;  and
(ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETERMINED PURSUANT
TO  SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, THE TAX
LEVY PROPOSED BY THE DISTRICT, AND THE PROPOSED  CAPITAL  TAX  LEVY,  IF
ANY;  AND  (III) the projected enrollment growth for the school year for
which the budget is prepared, and the percentage  change  in  enrollment
from  the previous year; and [(iii)] (IV) the percentage increase in the
consumer price index, as defined in paragraph c of this subdivision; and
[(iv)] (V) the projected amount of the  unappropriated  unreserved  fund
balance  that  will  be  retained if the proposed budget is adopted, the
projected amount of the reserved fund balance, the projected  amount  of
the  appropriated  fund  balance,  the percentage of the proposed budget
that the unappropriated unreserved fund balance represents,  the  actual
unappropriated  unreserved  fund balance retained in the school district
budget for the preceding school year, and the percentage of  the  school
district  budget  for the preceding school year that the actual unappro-
priated unreserved fund balance represents.
  b. A copy of the property tax report  card  prepared  for  the  annual
[district  meeting]  BUDGET HEARING shall be submitted to the department
in the manner prescribed by the department by the end  of  the  business

S. 5                               14                               A. 5

day  next  following  approval of the report card by the board of educa-
tion, but no later than twenty-four days prior to the statewide  uniform
voting  day.    The  department  shall  compile such data for all school
districts  [whose budgets are subject to a vote of the qualified voters]
SUBJECT TO A TAX LEVY LIMITATION PURSUANT TO  SECTION  THIRTEEN  HUNDRED
SEVEN  OF  THE  REAL  PROPERTY  TAX  LAW and shall make such compilation
available electronically at  least  ten  days  prior  to  the  statewide
uniform voting day.
  c.  For  purposes  of  this  subdivision,  "percentage increase in the
consumer price index" shall mean  the  percentage  that  represents  the
product  of  one  hundred  and  the  quotient of: (i) the average of the
national consumer price indexes determined by the United States  depart-
ment of labor for the twelve-month period preceding January first of the
current  year  minus  the average of the national consumer price indexes
determined by the United States department of labor for the twelve-month
period preceding January first of the prior year, divided  by  (ii)  the
average  of the national consumer price indexes determined by the United
States department of labor for the twelve-month period preceding January
first of the prior year, with the result expressed as a decimal  to  two
places.
  S  8.  Section 1718 of the education law, as amended by chapter 774 of
the laws of 1965, subdivision 2 as amended by chapter 82 of the laws  of
1995, is amended to read as follows:
  S 1718. Limitation  upon expenditures.  1. No board of education shall
incur a district liability in excess of the amount  appropriated  [by  a
district  meeting]  IN  THE  BUDGET  APPROVED  BY THE BOARD OF EDUCATION
unless such board is specially authorized by law to incur  such  liabil-
ity.
  2.  Notwithstanding the provisions of subdivision one of this section,
grants in aid received  from  the  state  and  federal  governments  for
specific  purposes,  other state AID OR grants in aid [identified by the
commissioner] for general use [as specified by the board of  education],
other  gifts  which  are  required to be spent for particular objects or
purposes and insurance proceeds received for the loss, theft, damage  or
destruction  of  real  or personal property, when proposed to be used or
applied to repair or replace  such  property,  may  be  appropriated  by
resolution  of  the  board  of education at any time for such objects or
purposes.
  S 9. Section 2005 of the education law, as amended  by  section  3  of
part M of chapter 57 of the laws of 2005, is amended to read as follows:
  S 2005. Special  meeting to transact business of annual meeting. When-
ever the time for holding the annual meeting in a school district  shall
pass  without such meeting being held, a special meeting[, to be held on
the date specified for a school budget revote  pursuant  to  subdivision
three  of  section two thousand seven of this part,] shall thereafter be
called by the trustees or by the clerk of such district for the  purpose
of  transacting the business of the annual meeting; and if no such meet-
ing be called by the trustees or the clerk within ten  days  after  such
time  shall  have passed, the district superintendent of the supervisory
district in which said school district is situated or  the  commissioner
[of  education] may order any inhabitant of such district to give notice
of such meeting in the manner provided in section two  thousand  one  of
this  part,  and the officers of the district shall make to such meeting
the reports required to be made at the annual meeting,  subject  to  the
same  penalty in case of neglect; and the officers elected at such meet-
ing shall hold their respective offices only until the next annual meet-

S. 5                               15                               A. 5

ing and until their successors are elected  and  shall  have  qualified.
Notice  of  such  annual  meeting  shall comply with the requirements of
section two thousand three or section two thousand four of this part  by
publishing  such  notices  once  in  each week within the two weeks next
preceding such special meeting, the first publication  to  be  at  least
fourteen  days  before such meeting and any required posting to be four-
teen days before the time of such meeting. [If the qualified  voters  at
such  special  district  meeting  defeat the school district budget, the
trustees or board of education shall adopt a contingency budget pursuant
to section two thousand twenty-three of this part.  Notwithstanding  any
other provision in law, the trustees or board of education following the
adoption of a contingency budget may call a special district meeting for
a  second  vote  on  the proposed budget pursuant to the requirements of
subdivision three of section two thousand seven or subdivision three  of
section two thousand six of this chapter.]
  S 10. Subdivision 3 of section 2006 of the education law is REPEALED.
  S  11.  Subdivision 3 of section 2007 of the education law, as amended
by section 5 of part M of chapter 57 of the laws of 2005, is amended  to
read as follows:
  3.  a.  Notwithstanding  the provisions of subdivisions one and two of
this section, and of section two thousand four of  this  part,  whenever
the  [voters  of  the  district  shall  have  defeated the budget of the
district, in whole or in part, or whenever the] board of education shall
have rejected all bids for a contract  or  contracts  for  public  work,
transportation  or  purchase[,]  and  [whenever  in either such case the
board of education shall deem] DEEMS it necessary and proper to  call  a
special meeting to take appropriate action, the board of education shall
be authorized to give the notices required by subdivision one of section
two  thousand  four of this part by publishing such notices once in each
week within the two weeks next preceding such special meeting, the first
publication to be at least fourteen days before  such  meeting  and  any
required posting to be fourteen days before the time of such meeting.
  b.  [A  school  budget  revote  called pursuant to paragraph a of this
subdivision shall be held on the third Tuesday of June, provided, howev-
er that such budget revote shall be held on the second Tuesday  in  June
if  the commissioner at the request of a local school board certifies no
later than March first that such  vote  would  conflict  with  religious
observances.
  c.] Notwithstanding the provisions of section two thousand fourteen of
this part, where a school district shall have adopted personal registra-
tion,  the board of registration shall meet on such day or days as shall
be fixed by the board of education, the  last  day  of  which,  however,
shall not be more than seven nor less than two days preceding any school
district  meeting notices for which shall have been given as provided in
this subdivision.
  S 12. Section 2008 of the education law is amended  by  adding  a  new
subdivision 3 to read as follows:
  3.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW TO THE CONTRARY, IT
SHALL NOT BE WITHIN THE POWERS OF THE VOTERS OF  A  SCHOOL  DISTRICT  TO
SUBMIT  A  PROPOSITION  THAT REQUIRES THE EXPENDITURE OF MONEY, PROVIDED
THAT THE VOTERS MAY SUBMIT A TAX LEVY  LIMIT  UNDERRIDE  PROPOSITION  AS
AUTHORIZED   PURSUANT   TO  SUBDIVISION  TWO  OF  SECTION  TWO  THOUSAND
TWENTY-THREE-A OF THIS PART OR A PROPOSITION TO CHANGE THE MILEAGE LIMI-
TATIONS ON TRANSPORTATION PURSUANT TO SUBDIVISION  NINETEEN  OF  SECTION
TWO THOUSAND TWENTY-ONE OF THIS PART.

S. 5                               16                               A. 5

  S  13.  Subdivisions  10, 11, 12, 15, 16, 17, 18, 20 and 21 of section
2021 of the education law, such section as renumbered by chapter 801  of
the  laws of 1953, are REPEALED and subdivisions 8 and 19 are amended to
read as follows:
  8.  To  vote  a  tax  upon  the  taxable  property of the district, to
purchase, lease and improve such sites or an addition to such sites  and
grounds  for the purposes specified in [the preceding] subdivision SEVEN
OF THIS SECTION, to hire or purchase rooms or buildings for school rooms
or schoolhouses, or to  build  schoolhouses[;  to  keep  in  repair  and
furnish  the  same with necessary fuel, furniture and appurtenances, and
to purchase such implements, apparatus and supplies as may be  necessary
to  provide  instruction  in agriculture and other subjects, and for the
organization and conduct of athletic, playground and other social center
work].
  19. To [provide, by tax or otherwise, for the conveyance of] DETERMINE
WHETHER TRANSPORTATION SHOULD BE PROVIDED PURSUANT  TO  PARAGRAPH  A  OF
SUBDIVISION  ONE OF SECTION THIRTY-SIX HUNDRED THIRTY-FIVE OF THIS CHAP-
TER TO pupils residing in [a] THE school  district  WHO  ARE  IN  GRADES
KINDERGARTEN  THROUGH EIGHT AND LIVE LESS THAN TWO MILES FROM THE SCHOOL
THEY LEGALLY ATTEND OR ARE IN GRADES NINE THROUGH TWELVE AND  LIVE  LESS
THAN  THREE  MILES  FROM  SUCH SCHOOL OR TO PUPILS IN ANY GRADE WHO LIVE
MORE THAN FIFTEEN MILES FROM THE SCHOOL THEY LEGALLY ATTEND, (a) to  the
elementary  or high schools, or both, maintained in such district and/or
(b) to the elementary or high schools, or both, in any city or  district
with which an education contract shall have been made, and/or (c) to the
elementary  or high schools, or both, other than public, situated within
the district or an adjacent district or  city,  whenever  such  district
shall  have  contracted with the school authorities of any city, or with
another school district, for the education therein of the pupils  resid-
ing  in  such school district, or whenever in any school district pupils
of school age shall reside so remote from the schoolhouse therein or the
elementary or high school they legally attend,  within  or  without  the
district, that they are practically deprived of school advantages during
any portion of the school year.
  S  14.  Section 2022 of the education law, as amended by section 23 of
part A of chapter 436 of the laws of  1997,  subdivisions  1  and  3  as
amended by section 8 of part C of chapter 58 of the laws of 1998, subdi-
vision  2-a  as amended by section 3 of part A of chapter 60 of the laws
of 2000, paragraph b of subdivision 2-a as amended by section 5 of  part
W of chapter 57 of the laws of 2008, subdivision 4 as amended by section
7 of part M of chapter 57 of the laws of 2005 and subdivision 6 as added
by chapter 61 of the laws of 2003, is amended to read as follows:
  S  2022.  [Vote  on] ADOPTION OF school district budgets [and on the];
ANNUAL DISTRICT MEETING AND election of  school  district  trustees  and
board  of  education  members. 1. Notwithstanding any law, rule or regu-
lation to the contrary, the ANNUAL  DISTRICT  MEETING  AND  election  of
trustees or members of the board of education, and the TAX LEVY PROPOSI-
TION  vote  [upon  the  appropriation of the necessary funds to meet the
estimated expenditures,] in  any  common  school  district,  union  free
school district, central school district or central high school district
shall  be held [at the annual meeting and election] on the third Tuesday
in May, provided, however, that such  election  shall  be  held  on  the
second  Tuesday  in  May  if  the commissioner at the request of a local
school board certifies no later than  March  first  that  such  election
would  conflict  with religious observances. [When such election or vote
is taken by recording the ayes and noes of the qualified voters  attend-

S. 5                               17                               A. 5

ing, a majority of the qualified voters present and voting, by a hand or
voice  vote,  may determine to take up the question of voting the neces-
sary funds to meet the estimated expenditures for a specific item  sepa-
rately,  and  the  qualified  voters present and voting may increase the
amount of any estimated expenditures or  reduce  the  same,  except  for
teachers'   salaries,  and  the  ordinary  contingent  expenses  of  the
schools.] The sole trustee, board of trustees or board of  education  of
every  common,  union  free, central or central high school district and
every city school district to which this article applies  shall  hold  a
budget  hearing not less than seven nor more than fourteen days prior to
the annual meeting and election [or special district meeting at which  a
school  budget  vote  will  occur], and shall prepare and present to the
voters at such budget hearing a proposed school district budget for  the
ensuing  school year.   IF THE QUALIFIED VOTERS HAVE APPROVED A TAX LEVY
PROPOSITION OR UNDERRIDE PROPOSITION  IN  ACCORDANCE  WITH  SECTION  TWO
THOUSAND  TWENTY-THREE-A  OF THIS PART, SUCH TRUSTEES OR BOARD OF EDUCA-
TION SHALL ADOPT A BUDGET THAT COMPLIES WITH SUCH PROPOSITION.    IF  NO
TAX  LEVY  PROPOSITION OR UNDERRIDE PROPOSITION HAS BEEN APPROVED BY THE
QUALIFIED VOTERS, THEN THE TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT  A
BUDGET THAT REQUIRES A TAX LEVY, EXCLUDING ANY CAPITAL TAX LEVY, THAT IS
NO  GREATER  THAN THE TAX LEVY BASE DETERMINED PURSUANT TO SECTION THIR-
TEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW.
  2. [Except as provided in subdivision four of this  section,  nothing]
NOTHING  in  this section shall preclude the trustees or board of educa-
tion, in their discretion, from submitting additional items of  expendi-
ture  to  the voters for approval as separate propositions or the voters
from submitting propositions pursuant to [section] SECTIONS two thousand
eight and two thousand thirty-five of this [article] PART.
  2-a. Every common, union free, central, central high  school  district
and  city  school  district  to  which this article applies shall mail a
school budget notice to all qualified  voters  of  the  school  district
after  the  date of the budget hearing, but no later than six days prior
to the annual meeting and election [or special district meeting at which
a school budget vote will occur]. The school budget notice shall compare
the percentage increase or decrease in total spending under the proposed
budget over total spending under the school district budget adopted  for
the current school year, with the percentage increase or decrease in the
consumer  price  index,  from  January first of the prior school year to
January first of the current school year, and shall  also  include  [the
information  required  by  paragraphs  a  and b of this subdivision. The
notice shall also set forth the date, time and place of the school budg-
et vote, in the same manner as in the  notice  of  annual  meeting]  THE
DISTRICT'S  TAX  LEVY  LIMIT  AND  TAX  LEVY BASE DETERMINED PURSUANT TO
SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY  TAX  LAW,  THE  TAX
LEVY PROPOSED BY THE DISTRICT AND THE PROPOSED CAPITAL TAX LEVY, IF ANY.
Such notice shall be in a form prescribed by the commissioner.
  [a.  Commencing with the proposed budget for the two thousand one--two
thousand two school year, such notice shall also include  a  description
of how total spending and the tax levy resulting from the proposed budg-
et would compare with a projected contingency budget adopted pursuant to
section  two  thousand  twenty-three of this article, assuming that such
contingency budget is adopted on  the  same  day  as  the  vote  on  the
proposed  budget.  Such  comparison  shall  be in total and by component
(program, capital and administrative), and shall include a statement  of
the assumptions made in estimating the projected contingency budget.

S. 5                               18                               A. 5

  b.]  Commencing  with the proposed budget for the two thousand eight--
two thousand nine school year, such notice  shall  also  include,  in  a
format  prescribed  by  the commissioner, an estimate of the tax savings
that would be available to an eligible homeowner under the basic  school
tax  relief  (STAR) exemption authorized by section four hundred twenty-
five of the real property tax law if the proposed budget  were  adopted.
Such  estimate shall be made in the manner prescribed by the commission-
er, in consultation with the office of real property services.
  3. In all elections for trustees or members of boards of education  or
votes ON PROPOSITIONS involving the expenditure of money, or authorizing
the  levy  of  taxes,  OR  VOTES ON PROPOSITIONS TO UNDERRIDE A TAX LEVY
LIMITATION PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
the vote thereon shall be by ballot, or, in school districts that  prior
to  nineteen  hundred  ninety-eight  conducted  their vote at the annual
meeting, may be ascertained by taking and recording the ayes and noes of
such qualified voters attending and voting at such district meetings.
  4. [In the event that the original proposed budget is not approved  by
the voters, the sole trustee, trustees or board of education may adopt a
final budget pursuant to subdivision five of this section or resubmit to
the  voters  the  original  or  a revised budget pursuant to subdivision
three of section two thousand seven of this part.  Upon  one  defeat  of
such  resubmitted  budget, the sole trustee, trustees or board of educa-
tion shall adopt a final budget pursuant to  subdivision  five  of  this
section.]  Notwithstanding  any  other provision of law to the contrary,
[the school district budget for any school year, or  any  part  of  such
budget  or] any propositions involving the expenditure of money for such
school year shall not be submitted for a vote of  the  qualified  voters
more than twice.
  [5.  If  the  qualified  voters  fail  to  approve the proposed school
district budget upon resubmission or upon a determination not to  resub-
mit  for a second vote pursuant to subdivision four of this section, the
sole trustee, trustees or board of education, after applying thereto the
public school moneys and other moneys received or  to  be  received  for
that purpose, shall levy a tax for the sum necessary for teachers' sala-
ries  and  other  ordinary  contingent  expenses  in accordance with the
provisions of this subdivision and section two thousand twenty-three  of
this article.
  6. Notwithstanding the provisions of subdivision four of section eigh-
teen  hundred  four and subdivision five of section nineteen hundred six
of this title, subdivision one of section two thousand two of this arti-
cle, subdivision one of this section, subdivision two of  section  twen-
ty-six hundred one-a of this title and any other provision of law to the
contrary,  the  annual  district  meeting  and election of every common,
union free, central and central high  school  district  and  the  annual
meeting  of  every city school district in a city having a population of
less than one hundred twenty-five thousand inhabitants that is scheduled
to be held on the third Tuesday of May, two  thousand  three  is  hereby
adjourned until the first Tuesday in June, two thousand three. The trus-
tees  or  board  of education of each such school district shall provide
notice of such adjourned meeting to the qualified voters in  the  manner
prescribed  for  notice  of  the  annual  meeting, and such notice shall
provide for an adjourned budget hearing. The adjourned district  meeting
or  district  meeting and election shall be deemed the annual meeting or
annual meeting and election of the district for all purposes under  this
title  and  the date of the adjourned meeting shall be deemed the state-
wide uniform voting day for all purposes under  this  title.    Notwith-

S. 5                               19                               A. 5

standing  the provisions of subdivision seven of section sixteen hundred
eight or subdivision seven of section seventeen hundred sixteen of  this
title or any other provision of law, rule or regulation to the contrary,
in two thousand three the property tax report card shall be submitted to
the  department  no  later  than  twenty  days  prior to the date of the
adjourned meeting and the department shall make its  compilation  avail-
able electronically at least seven days prior to such date.]
  S 15. Section 2023 of the education law is REPEALED.
  S  16.  Subdivision 2 of section 2035 of the education law, as amended
by chapter 111 of the laws of 1979, is amended to read as follows:
  2. In common school districts the  manner  of  making  nominations  or
submitting  propositions  by anyone other than the trustees and in union
free school districts the manner of submitting  propositions  by  anyone
other  than  the board of education for the purpose of preparing ballots
for the machine shall be prescribed by a rule previously adopted by  the
trustees  or  board  of education; provided, however, that the petition,
certificate, declaration, notice or other paper required by  such  rule,
for  the  making  of  any  such nomination or submission, except as to a
question or proposition required by law to be stated in the published or
posted notice of the meeting shall be filed with the trustees  or  board
of  education not later than thirty days before the meeting or election.
Any nomination may be rejected by the trustees if the candidate is inel-
igible for the office or has declared his unwillingness  to  serve;  any
proposition may be rejected by the trustees or board of education if the
purpose  of  the  proposition  is not within the power of the voters, or
where A PROPOSITION TO CHANGE THE MILEAGE LIMITATIONS ON  TRANSPORTATION
PURSUANT  TO  SUBDIVISION NINETEEN OF SECTION TWO THOUSAND TWENTY-ONE OF
THIS PART  WOULD  REQUIRE  the  expenditure  of  ADDITIONAL  moneys  [is
required  by  the  proposition], if the proposition fails to include the
necessary specific appropriation.   Any such rule may  be  amended  from
time  to  time  and may state that a reasonable minimum number of signa-
tures shall be required for submission.  The trustees or board of educa-
tion shall cause such rule, and amendments from  time  to  time,  to  be
printed  for  general  distribution  in the district. Provided, however,
that the provisions of any  special  law  relating  to  nominations  and
elections  in any union free school district shall continue to remain in
force, and the manner of making nominations and the conduct of  meetings
and elections, shall conform to such special law.
  S  17. Paragraph a of subdivision 9 and paragraphs a and b of subdivi-
sion 12 of section 2503 of the education law, as amended by chapter  171
of the laws of 1996, are amended to read as follows:
  a.  Shall  promote  the best interests of the schools and other activ-
ities committed to its care, and shall authorize, or in  its  discretion
conduct,  and  maintain  such  extra classroom activities, including the
operation of cafeterias or restaurant service  for  use  by  pupils  and
teachers,  as  the  board,  from  time to time, shall deem proper.  Such
cafeterias or restaurant service may be used by the community for school
related functions and activities and to furnish  meals  to  the  elderly
residents,  sixty  years of age or older, of the district. Such utiliza-
tion AND THE OPERATION OF CAFETERIAS  OR  RESTAURANT  SERVICE  shall  be
subject to the approval of the board of education[, and shall be subject
to  voter  approval unless the cafeteria or restaurant service was oper-
ated during the preceding school year and requires no tax levy]. Charges
shall be sufficient to meet the direct cost  of  preparing  and  serving
such meals, reducible by available reimbursements.

S. 5                               20                               A. 5

  a.    to  and  from  schools  within the school district for distances
greater than two or three miles, as applicable, and to and from  schools
outside  the district within the mileage limitations prescribed in para-
graph a of subdivision one of section thirty-six hundred thirty-five  of
this  chapter  shall always be [an ordinary contingent expense] A CHARGE
UPON THE SCHOOL DISTRICT, and
  b. for distances less than two or three miles, as applicable,  or  for
greater  than  fifteen  miles  to  and from schools outside the district
shall be [an ordinary contingent  expense]  A  CHARGE  UPON  THE  SCHOOL
DISTRICT  if:  (i) such transportation was provided during the preceding
school year and the qualified voters have not passed a special  proposi-
tion  constricting  the  mileage limitations for the current school year
from those in effect in the prior year, or  (ii)  the  qualified  voters
have  passed  a special proposition expanding the mileage limitations in
effect in the prior year.
  S 18. Section 2601-a of the education law, as added by chapter 171  of
the  laws  of  1996,  subdivision 2 as amended by section 6 of part M of
chapter 57 of the laws of 2005, subdivision 3 as amended by chapter  640
of  the laws of 2008, subdivision 4 as amended by section 8 of part M of
chapter 57 of the laws of 2005, subdivision 5 as amended by  section  29
of  part  A of chapter 436 of the laws of 1997, subdivision 6 as amended
and subdivision 7 as added by chapter  474  of  the  laws  of  1996,  is
amended to read as follows:
  S  2601-a.  Procedures  for  [adoption  of  school budgets] ANNUAL AND
SPECIAL DISTRICT MEETINGS in small city school districts. 1.  The  board
of education of each city school district subject to this article [shall
provide for the submission of a budget for approval of the voters pursu-
ant to the provisions of this section.
  2.  The  board  of education] shall ADOPT A SCHOOL DISTRICT BUDGET AND
conduct all annual and special school district meetings for the  purpose
of  [adopting  a  school district budget] VOTING ON PROPOSITIONS FOR THE
EXPENDITURE OF MONEY, INCLUDING BUT NOT LIMITED  TO  VOTES  PURSUANT  TO
SECTION  FOUR  HUNDRED  SIXTEEN  OF THIS CHAPTER, AND VOTING ON TAX LEVY
PROPOSITIONS AND UNDERRIDE PROPOSITIONS PURSUANT TO SECTION TWO THOUSAND
TWENTY-THREE-A OF THIS TITLE, in the same manner as a union free  school
district  in accordance with the provisions of article forty-one of this
title, except as otherwise provided by this section. The annual  meeting
and  election  of  each  such  city school district shall be held on the
third Tuesday of May in each year, provided, however  that  such  annual
meeting  and  election shall be held on the second Tuesday in May if the
commissioner at the request of a local school board certifies  no  later
than March first that such election would conflict with religious obser-
vances[,  and  any school budget revote shall be held on the date and in
the same manner specified in subdivision three of section  two  thousand
seven of this title]. The provisions of this article, and where applica-
ble  subdivisions  nine and nine-a of section twenty-five hundred two of
this title, governing the qualification and registration of voters,  and
procedures  for  the  nomination and election of members of the board of
education shall continue to apply, and shall  govern  the  qualification
and  registration  of  voters  and voting procedures with respect to the
adoption of a school district budget.
  [3.] 2. The  board  of  education  shall  prepare  a  proposed  school
district  budget  for the ensuing year in accordance with the provisions
of section seventeen hundred sixteen  of  this  chapter,  including  all
provisions  relating to required notices and appendices to the statement
of expenditures. No board of education shall  incur  a  school  district

S. 5                               21                               A. 5

liability  except  as  authorized by the provisions of section seventeen
hundred  eighteen  of  this  chapter.  Such  proposed  budget  shall  be
presented  in three components: a program component, a capital component
and  an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation  with
local  school  district  officials.  The  administrative component shall
include, but need not be limited to, office and  central  administrative
expenses, traveling expenses and all compensation, salaries and benefits
of  all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy,  assistant,  associate
or  other  superintendents  under  all  existing employment contracts or
collective bargaining agreements, any and  all  expenditures  associated
with  the  operation of the board of education, the office of the super-
intendent  of  schools,  general  administration,  the  school  business
office, consulting costs not directly related to direct student services
and  programs,  planning  and  all other administrative activities.  The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of teachers and any school administrators or  supervisors  who  spend  a
majority  of  their time performing teaching duties, and all transporta-
tion operating expenses. The capital component shall include,  but  need
not  be  limited to, all transportation capital, debt service, and lease
expenditures;  costs  resulting  from  judgments   in   tax   certiorari
proceedings  or  the payment of awards from court judgments, administra-
tive orders or settled or compromised claims; and all  facilities  costs
of  the  school  district,  including facilities lease expenditures, the
annual debt service and total debt for all facilities financed by  bonds
and  notes of the school district, and the costs of construction, acqui-
sition, reconstruction, rehabilitation or improvement of  school  build-
ings,  provided  that such budget shall include a rental, operations and
maintenance section that includes base rent  costs,  total  rent  costs,
operation and maintenance charges, cost per square foot for each facili-
ty  leased  by the school district, and any and all expenditures associ-
ated with custodial salaries and benefits, service contracts,  supplies,
utilities,  and  maintenance  and repairs of school facilities. [For the
purposes of the development of a budget for the nineteen  hundred  nine-
ty-seven--ninety-eight  school  year, the board of education shall sepa-
rate its program, capital and  administrative  costs  for  the  nineteen
hundred  ninety-six--ninety-seven  school  year  in the manner as if the
budget for such year had been presented in three components.] Except  as
provided  in  subdivision  [four] THREE of this section, nothing in this
section shall preclude the board, in  its  discretion,  from  submitting
additional  items  of expenditure to the voters for approval as separate
propositions or the voters from submitting  propositions  [pursuant]  to
THE  EXTENT  AUTHORIZED  BY sections two thousand eight and two thousand
thirty-five of this chapter.
  [4. In the event the qualified voters of the district reject the budg-
et proposed pursuant to subdivision three of this section, the board may
propose to the voters a revised budget pursuant to subdivision three  of
section  two  thousand  seven  of  this title or may adopt a contingency
budget pursuant to subdivision five of this section and subdivision five
of section two thousand  twenty-two  of  this  title.]  3.  The  [school
district  budget  for  any  school  year, or any part of such budget or]
BOARD OF EDUCATION SHALL  NOT  SUBMIT  any  propositions  involving  the
expenditure of money for such school year [shall not be submitted] for a
vote  of  the qualified voters more than twice. [In the event the quali-

S. 5                               22                               A. 5

fied voters reject the resubmitted  budget,  the  board  shall  adopt  a
contingency  budget  in accordance with subdivision five of this section
and subdivision five of such section two  thousand  twenty-two  of  this
title.
  5. If the qualified voters fail or refuse to vote the sum estimated to
be  necessary  for  teachers'  salaries  and  other  ordinary contingent
expenses, the board shall adopt a contingency budget in accordance  with
this  subdivision  and  shall  levy  a  tax for that portion of such sum
remaining after applying thereto the moneys received or to  be  received
from state, federal or other sources, in the same manner as if the budg-
et had been approved by the qualified voters; subject to the limitations
imposed in subdivision four of section two thousand twenty-three of this
chapter  and  this  subdivision.  The administrative component shall not
comprise a greater percentage of the contingency budget exclusive of the
capital component than the lesser of (1) the percentage the  administra-
tive  component  had comprised in the prior year budget exclusive of the
capital component; or (2) the percentage  the  administrative  component
had  comprised  in  the  last  proposed defeated budget exclusive of the
capital component. Such contingency budget shall include the sum  deter-
mined by the board to be necessary for:
  (a)  teachers'  salaries, including the salaries of all members of the
teaching and supervising staff;
  (b) items of expense specifically authorized by statute to be incurred
by the board of education, including, but not limited  to,  expenditures
for transportation to and from regular school programs included as ordi-
nary  contingent  expenses  in subdivision twelve of section twenty-five
hundred three of this  chapter,  expenditures  for  textbooks,  required
services for non-public school students, school health services, special
education  services,  kindergarten  and nursery school programs, and the
district's share of the  administrative  costs  and  costs  of  services
provided by a board of cooperative educational services;
  (c) items of expense for legal obligations of the district, including,
but  not limited to, contractual obligations, debt service, court orders
or judgments, orders of administrative bodies or officers, and standards
and requirements of the board of regents and the commissioner that  have
the force and effect of law;
  (d)  the  purchase  of library books and other instructional materials
associated with a library;
  (e) items of expense necessary to maintain the educational programs of
the district, preserve the property  of  the  district  or  protect  the
health  and safety of students and staff, including, but not limited to,
support services, pupil personnel services, the necessary  salaries  for
the   necessary   number  of  non-teaching  employees,  necessary  legal
expenses, water and utility charges, instructional supplies  for  teach-
ers'  use,  emergency  repairs,  temporary rental of essential classroom
facilities, and expenditures necessary to advise school district  voters
concerning school matters; and
  (f) expenses incurred for interschool athletics, field trips and other
extracurricular activities; and
  (g)  any other item of expense determined by the commissioner to be an
ordinary contingent expense in any school district.
  6. The commissioner shall determine appeals raising  questions  as  to
what  items  of expenditure are ordinary contingent expenses pursuant to
subdivision five of this section in accordance with section two thousand
twenty-four and three hundred ten of this chapter.

S. 5                               23                               A. 5

  7.] Each year, the board of education shall prepare a school  district
report card, pursuant to regulations of the commissioner, and shall make
it  publicly available by transmitting it to local newspapers of general
circulation, appending it to copies of the proposed budget made publicly
available  as  required  by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as  required  by  the
commissioner.  Such  report  card shall include measures of the academic
performance of the school district, on a school  by  school  basis,  and
measures of the fiscal performance of the district, as prescribed by the
commissioner.  Pursuant  to  regulations of the commissioner, the report
card shall also compare these measures to  statewide  averages  for  all
public  schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report  card  shall
include,  at a minimum, any information on the school district regarding
pupil performance and expenditure per pupil required to be  included  in
the  annual  report  by  the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts  (i)  identi-
fied  as  having  fifteen  percent  or more of their students in special
education, or (ii) which have fifty percent or more  of  their  students
with  disabilities  in  special  education  programs  or  services sixty
percent or more of the school day in a general  education  building,  or
(iii)  which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate  educa-
tional  settings  shall  indicate  on  their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
  S 19. Paragraph b-1 of subdivision 4 of section 3602 of the  education
law,  as  amended  by  section 13 of part A of chapter 57 of the laws of
2009, is amended to read as follows:
  b-1. Notwithstanding any other provision of law to the  contrary,  for
the  two  thousand  seven--two thousand eight through two thousand thir-
teen--two thousand fourteen school years, the additional amount  payable
to each school district pursuant to this subdivision in the current year
as  total foundation aid, after deducting the total foundation aid base,
shall be deemed a state grant in aid identified by the commissioner  for
general  use  for purposes of [sections] SECTION seventeen hundred eigh-
teen [and two thousand twenty-three] of this chapter.
  S 20. Subdivision 11 of  section  3602-e  of  the  education  law,  as
amended  by  section  19 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
  11. Notwithstanding the provisions of subdivision ten of this section,
where the district serves fewer children during the current year than in
the base year, the school district shall have its apportionment  reduced
in  an  amount proportional to such deficiency in the current year or in
the succeeding school year, as determined by  the  commissioner,  except
such  reduction  shall  not  apply  to school districts which have fully
implemented a universal pre-kindergarten program by making such  program
available  to  all  eligible  children. [Expenses incurred by the school
district in implementing a pre-kindergarten  program  plan  pursuant  to
this subdivision shall be deemed ordinary contingent expenses.]
  S  21.  Paragraphs  a  and  b  of subdivision 1 of section 3635 of the
education law, paragraph a as amended by chapter 69 of the laws of 1992,
paragraph b as amended by chapter 718 of the laws of 1990  and  subpara-
graph  (i) of paragraph b as amended by chapter 571 of the laws of 1994,
are amended to read as follows:

S. 5                               24                               A. 5

  a. Sufficient transportation facilities (including the  operation  and
maintenance  of motor vehicles) shall be provided by the school district
for all the children residing within the school district to and from the
school they legally attend, who  are  in  need  of  such  transportation
because  of  the  remoteness  of  the  school  to  the  child or for the
promotion of the best interest of such children.    Such  transportation
shall be provided for all children attending grades kindergarten through
eight  who  live  more than two miles from the school which they legally
attend and for all children attending grades  nine  through  twelve  who
live more than three miles from the school which they legally attend and
shall be provided for each such child up to a distance of fifteen miles,
the distances in each case being measured by the nearest available route
from  home  to school. The cost of providing such transportation between
two or three miles, as the case may  be,  and  fifteen  miles  shall  be
considered  for  the  purposes  of  this chapter to be a charge upon the
district [and an ordinary contingent expense of the district]. Transpor-
tation for a lesser distance than two miles  in  the  case  of  children
attending  grades  kindergarten through eight or three miles in the case
of children attending grades nine  through  twelve  and  for  a  greater
distance  than  fifteen  miles  may be provided by the district WITH THE
APPROVAL OF THE QUALIFIED VOTERS, and, if  provided,  shall  be  offered
equally  to all children in like circumstances residing in the district;
provided, however, that this requirement shall not apply to  transporta-
tion  offered  pursuant  to  section thirty-six hundred thirty-five-b of
this [article] PART.
  b. (i) School districts providing transportation to a nonpublic school
for pupils living within a specified distance  from  such  school  shall
designate  one  or more public schools as centralized pick-up points and
shall provide transportation between  such  points  and  such  nonpublic
schools for students residing in the district who live too far from such
nonpublic schools to qualify for transportation between home and school.
The  district  shall not be responsible for the provision of transporta-
tion for pupils between  their  home  and  such  pick-up  points.    The
district  may  provide school bus transportation to a pupil if the resi-
dence of the pupil is located on an established route for the  transpor-
tation  of  pupils to the centralized pick-up point provided such trans-
portation does not result in additional costs to the district. [The cost
of providing transportation between such pick-up points and such nonpub-
lic schools shall be an ordinary contingent expense.]
  (ii) A board of education may, at its discretion, provide  transporta-
tion  for  pupils  residing  within  the  district to a nonpublic school
located more than fifteen miles from the home of any such pupil provided
that such transportation has been  provided  to  such  nonpublic  school
pursuant  to this subdivision in at least one of the immediately preced-
ing three school years and such transportation is provided from  one  or
more  centralized  pick-up  points designated pursuant to this paragraph
and that the distance from such pick-up points to the  nonpublic  school
is  not  more  than fifteen miles. The district shall not be responsible
for the provision of transportation for pupils between [pupils]  PUPILS'
homes  and  such  pick-up  points. [The cost of providing transportation
between such pick-up points and such nonpublic schools shall be an ordi-
nary contingent expense.]
  S 22. Subdivision 10 of  section  3635-b  of  the  education  law,  as
amended  by  chapter  422  of  the  laws  of 2004, is amended to read as
follows:

S. 5                               25                               A. 5

  10. The cost of providing transportation, pursuant to  the  provisions
of  this section, shall [be an ordinary contingent expense and shall] be
included as an item of expense for purposes of determining the transpor-
tation quota of such district.
  S 23. Subdivisions 1, 3, 3-a, 4 and 5 of section 3651 of the education
law, subdivision 1 as amended by chapter 504 of the laws of 1949, subdi-
visions 3 and 4 as added by chapter 782 of the laws of 1948, subdivision
3-a  as  added  by chapter 588 of the laws of 1988, and subdivision 5 as
amended by chapter 976 of the laws of  1963,  are  amended  to  read  as
follows:
  1.  A reserve fund may be established by the school authorities of any
school district, [provided, however, that no such fund shall  be  estab-
lished  (a) until approved by a majority vote of the qualified voters of
the district voting on a proposition therefor submitted at a regular  or
special  school  district  meeting,  or in school districts which do not
have such meetings, at an election called  for  such  purpose,  and  (b)
unless  the  notice of such meeting or election shall have stated that a
proposition to establish a reserve  fund  would  be  so  submitted,  the
purpose  of the fund, the ultimate amount thereof, its probable term and
the source from which the funds would be obtained] AS DEFINED IN  SUBDI-
VISION  TWELVE OF SECTION TWO OF THIS CHAPTER.  Such reserve fund may be
established for financing, in whole or in part, the cost of  any  object
or  purpose  for  which  bonds  may  be issued by, or for the objects or
purposes of, the school district pursuant to the local finance law.  The
[proposition]  RESOLUTION  OF  THE  SCHOOL  AUTHORITIES ESTABLISHING THE
RESERVE FUND shall specify the purpose for  which  the  fund  is  estab-
lished, the ultimate amount, the probable term and the source from which
the  funds are to be obtained. There shall be paid into any such fund an
annual amount sufficient to meet the requirements of the proposition  OR
RESOLUTION.   In addition, the [voters] SCHOOL AUTHORITIES may from time
to time direct the [school authorities to pay] PAYMENT into such fund OF
moneys derived from any other source.
  3. An expenditure shall be made from a reserve fund only  by  authori-
zation  of  the [voters] SCHOOL AUTHORITIES and for the specific purpose
specified in the proposition OR RESOLUTION WHICH ESTABLISHED THE RESERVE
FUND.
  [3-a. Notwithstanding the provisions  of  subdivision  three  of  this
section, any school district which establishes a reserve fund in accord-
ance  with  subdivision one-a of this section may make expenditures from
such fund for the purposes specified in such subdivision without author-
ization of the voters.]
  4. The [voters] SCHOOL AUTHORITIES may authorize the transfer  of  all
or  any  part  of any reserve fund to any other reserve fund established
pursuant to this section.
  5. Whenever the [voters] SCHOOL AUTHORITIES shall determine  that  the
original  purpose  for  which  a reserve fund has been established is no
longer desirable, [the school authorities] THEY may liquidate  the  fund
by  first  applying  its proceeds to any outstanding bonded indebtedness
and applying the balance, if any, to  the  annual  tax  levy,  provided,
however, that the amount so applied in any one year shall not be greater
than the amount which will reduce the tax rate for school purposes below
five  mills  on  actual  valuation;  provided,  however, that the school
authorities in any school district having no outstanding bonded  indebt-
edness  may,  in any year in which no state aid is payable thereto under
the provisions of this chapter, liquidate  such  fund  by  applying  the
balance  thereof  to the annual tax levy, regardless of the tax rate for

S. 5                               26                               A. 5

school purposes[, subject to the approval of a majority of the qualified
electors of the district voting on a proposition therefor submitted at a
regular or special school district meeting, or in school districts which
do not have such meetings, at an election called for such purpose].
  S 24. The general municipal law is amended by adding a new section 3-c
to read as follows:
  S  3-C.   LIMITATION UPON REAL PROPERTY TAXES OF LOCAL GOVERNMENTS. 1.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF REAL PROPERTY TAXES THAT
MAY BE LEVIED BY OR ON BEHALF OF ANY LOCAL GOVERNMENT,  OTHER  THAN  THE
CITY  OF  NEW  YORK AND THE COUNTIES CONTAINED THEREIN, SHALL NOT EXCEED
THE TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
  2. WHEN USED IN THIS SECTION:
  (A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
FOUR ONE HUNDREDTHS; OR (II) THE SUM OF  ONE  PLUS  ONE  HUNDRED  TWENTY
PERCENT  OF  THE  INFLATION  FACTOR;  PROVIDED, HOWEVER, THAT IN NO CASE
SHALL THE LEVY GROWTH FACTOR BE LESS THAN ONE.
  (B) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR WHICH A TAX LEVY LIMITATION SHALL BE  DETERMINED  PURSUANT  TO  THIS
SECTION.
  (C)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
MENT OF LABOR FOR THE TWELVE MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START  OF  THE  COMING  FISCAL  YEAR  MINUS  THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY  THE  UNITED  STATE  DEPARTMENT  OF
LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF  THE  NATIONAL
CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
  (D)  "LOCAL  GOVERNMENT"  MEANS  A  COUNTY,  CITY, TOWN, VILLAGE, FIRE
DISTRICT, OR SPECIAL DISTRICT INCLUDING BUT NOT LIMITED  TO  A  DISTRICT
CREATED  PURSUANT  TO ARTICLES TWELVE, TWELVE-A, TWELVE-C OR THIRTEEN OF
THE TOWN LAW, ARTICLES FIVE-A, FIVE-B OR FIVE-D OF THE COUNTY LAW, CHAP-
TER FIVE HUNDRED SIXTEEN OF THE LAWS OF NINETEEN  HUNDRED  TWENTY-EIGHT,
OR  CHAPTER  TWO  HUNDRED  SEVENTY-THREE OF THE LAWS OF NINETEEN HUNDRED
THIRTY-NINE, BUT SHALL NOT INCLUDE THE CITY OF NEW YORK OR THE  COUNTIES
CONTAINED THEREIN.
  (E)  "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
  3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FOUR OF THIS  SECTION,
BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND ELEVEN, NO
LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY  THAT  IS
GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR.
  (B) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
BE DETERMINED AS FOLLOWS:
  (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
  (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
PRIOR FISCAL YEAR.
  (III) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
  (IV)  SUBTRACT  ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
  (C) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION  FOR
EACH  LOCAL  GOVERNMENT  BY  THE ONE HUNDRED TWENTIETH DAY PRECEDING THE

S. 5                               27                               A. 5

COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR,  AND  SHALL  NOTIFY
EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
  4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR, ONLY
IF  THE  GOVERNING  BODY  OF  SUCH  LOCAL  GOVERNMENT FIRST ENACTS, BY A
TWO-THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH BODY, A LOCAL  LAW  TO
OVERRIDE  SUCH  LIMITATION  FOR  SUCH COMING FISCAL YEAR ONLY, OR IN THE
CASE OF A DISTRICT OR FIRE DISTRICT, A RESOLUTION TO OVERRIDE SUCH LIMI-
TATION FOR SUCH COMING FISCAL YEAR ONLY.
  5. (A) WHEN TWO OR MORE LOCAL GOVERNMENTS CONSOLIDATE, THE STATE COMP-
TROLLER SHALL DETERMINE THE TAX LEVY  LIMITATION  FOR  THE  CONSOLIDATED
LOCAL  GOVERNMENT  BASED  ON  THE RESPECTIVE TAX LEVY LIMITATIONS OF THE
COMPONENT LOCAL GOVERNMENTS THAT FORMED SUCH CONSOLIDATED LOCAL  GOVERN-
MENT FROM THE LAST FISCAL YEAR PRIOR TO THE CONSOLIDATION.
  (B)  WHEN  A  LOCAL  GOVERNMENT DISSOLVES, THE STATE COMPTROLLER SHALL
DETERMINE THE TAX LEVY LIMITATION FOR THE LOCAL GOVERNMENT THAT  ASSUMES
THE  DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH DISSOLVED LOCAL GOVERN-
MENT BASED ON THE RESPECTIVE TAX  LEVY  LIMITATIONS  OF  SUCH  DISSOLVED
LOCAL  GOVERNMENT  AND  SUCH  LOCAL  GOVERNMENT  THAT ASSUMES THE DEBTS,
LIABILITIES, AND OBLIGATIONS OF SUCH DISSOLVED LOCAL GOVERNMENT FROM THE
LAST FISCAL YEAR PRIOR TO THE DISSOLUTION.
  (C) THE TAX LIMITATION ESTABLISHED BY THIS SECTION SHALL NOT APPLY  TO
THE  FIRST  FISCAL YEAR AFTER A LOCAL GOVERNMENT IS NEWLY ESTABLISHED OR
CONSTITUTED. THE PRECEDING SENTENCE SHALL NOT APPLY TO LOCAL GOVERNMENTS
RESULTING FROM A CONSOLIDATION OR DISSOLUTION.
  6. IN THE EVENT A LOCAL GOVERNMENT'S  ACTUAL  TAX  LEVY  FOR  A  GIVEN
FISCAL  YEAR  EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTABLISHED PURSUANT
TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE  LOCAL  GOVERN-
MENT  SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE
WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
USE SUCH FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET  THE  TAX  LEVY
FOR THE ENSUING FISCAL YEAR.
  S  25. This act shall take effect immediately and shall first apply to
the levy of taxes by school districts for the 2011-2012 school year  and
to  school district meetings and elections held on and after such effec-
tive date; provided, however,  that  sections  eight,  fifteen,  twenty,
twenty-one  and  twenty-two  of this act shall take effect July 1, 2011;
and provided further, that section twenty-four of this act  shall  first
apply  to  the  levy of   taxes by local governments for the fiscal year
that begins in 2011.