senate Bill S5390

Provides for the repayment by the Schenectady city school district of certain excess state payments

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 16 / May / 2011
    • REFERRED TO EDUCATION
  • 24 / May / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 07 / Jun / 2011
    • 1ST REPORT CAL.1110
  • 13 / Jun / 2011
    • 2ND REPORT CAL.
  • 14 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 15 / Jun / 2011
    • PASSED SENATE
  • 15 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 15 / Jun / 2011
    • REFERRED TO EDUCATION
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO EDUCATION

Summary

Provides for the repayment by the Schenectady city school district of certain excess state payments through deduction of future aid payments over a three year period.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A7803
Versions:
S5390
Legislative Cycle:
2011-2012
Current Committee:
Senate Education
Law Section:
Education

Sponsor Memo

BILL NUMBER:S5390

TITLE OF BILL:
An act
to provide for the repayment by the Schenectady city school district of
certain excess state payments

PURPOSE:
To allow the Schenectady City School District to spread out repayment
of excess state aid over three years.

SUMMARY OF PROVISIONS:
Section 1 of the bill provides that excess aid paid to the Schenectady
City School District in the 2003-04 through 2008-09 school years, of
which the District has been notified and for which the State must
make a recovery through deductions of future aid payments, shall be
recovered by reducing the amount of future State aid payments by
one-third of the amount of such excess payments in the aid payments
for June of 2011, 2012 and 2013.

JUSTIFICATION:
In 2008, the State Education Department identified an error in a legal
notice published several years earlier by the Schenectady City School
District in relation to certain transportation services for the
2003-04 school year. Because of this error, the Department indicated
that the expected state transportation aid could not be paid for
these two contracts which covered the 2003-04 school year. The
situation worsened when the Education Department also indicated that
the District could not be reimbursed for transportation expenses
incurred in connection with the extension of those contracts covering
school years from 2004-05 through 2008-09. Because the School
District was unaware that there was a problem with the original
contracts, it had extended the contracts several times. Because of
the delay in identifying the original error, the potential financial
ramifications of this error increased dramatically.

The District now must pay back a total of $3,860,466. The Department
of Education is currently requiring that this money be paid back in
two installments. $2,956,669 is to be deducted from the June 2011
General Aid payment and $903,797 from the June 2012 General Aid
payment.
This creates a hardship for the District. This legislation would allow
the District to make the repayments to the State in three equal
payments to be deducted from the General Aid payments in June of
2011, 2012 and 2013.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
Minimal to State. Provides fiscal relief to the School District.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  5390

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 16, 2011
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Education

AN ACT to provide for the  repayment  by  the  Schenectady  city  school
  district of certain excess state payments

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

  Section 1. Notwithstanding any provisions  of  law  to  the  contrary,
state  aid  payments  in the amount of not more than three million eight
hundred sixty thousand four hundred sixty-six dollars ($3,860,466)  made
to  the  Schenectady city school district in the 2003-04, 2005-06, 2006-
07, 2007-08 and 2008-09 school years, which included excess payments  of
which  such district has been notified, and for which a recovery must be
made by the state through deduction of future  aid  payments,  shall  be
reduced through aid deductions totaling such excess payments, by deduct-
ing  one-third  of  such  excess  payments from the payments due to such
school district and payable in the month of June in the years 2011, 2012
and 2013; provided, however, there shall be no interest penalty assessed
against such district or collected by the state; and provided,  further,
that  notwithstanding  any  other  provisions  of  this act, any pending
payment of moneys due to such district as a prior year adjustment  paya-
ble  pursuant  to  paragraph  c  of subdivision 5 of section 3604 of the
education law for aid claims that had been previously paid in excess  as
current year aid payments for which recovery of excess payments is to be
made  pursuant  to  this section, shall be reduced at the time of actual
payment by any remaining unrecovered balance of  such  excess  payments,
and  the remaining scheduled deductions of such excess payments pursuant
to this section shall be reduced by the  commissioner  of  education  to
reflect the amount so recovered.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11487-02-1

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.