BILL NUMBER:A10144
TITLE OF BILL: An act to amend the general municipal law, in relation
to the employee benefit accrued liability reserve fund
PURPOSE OR GENERAL IDEA OF BILL: To allow school districts and other
municipal corporations to reduce real property taxes by utilizing excess
funds held in Employee Benefit Accrued Liability Reserve funds estab-
lished by Section 6-p of the General Municipal Law.
SUMMARY OF SPECIFIC PROVISIONS: After audit and certification by the
comptroller, that there are funds held in a reserve fund established
pursuant to Section 6-p of the General Municipal Law in excess of those
required to meet liabilities, a governing board may use those excess
funds to reduce real property taxes and/or voter approved capital
projects.
EXISTING LAW: The reserve fund established by Section 6-p of the General
Municipal Law restricts expenditures solely to compensated absences
liabilities. There are no provisions in the present statute to deal with
fund balances that exceed the amount needed to satisfy liabilities.
JUSTIFICATION: The Office of the Comptroller has released an audit indi-
cating that 251 school districts across the State could have "as much as
$407 million more in these reserve funds than they need to pay for
compensated absence liabilities". These excess funds are "stranded" in
S T A T E O F N E W Y O R K
________________________________________________________________________
10144
I N A S S E M B L Y
March 5, 2010
___________
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the
Committee on Local Governments
AN ACT to amend the general municipal law, in relation to the employee
benefit accrued liability reserve fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 6-p of the general municipal law is amended by
adding a new subdivision 10 to read as follows:
10. IF AFTER AUDIT AND CERTIFICATION BY THE STATE COMPTROLLER THAT
THERE ARE FUNDS IN EXCESS OF THOSE REQUIRED TO SATISFY LIABILITIES,
THOSE EXCESS FUNDS MAY BE TRANSFERRED TO THE GENERAL FUND FOR THE
PURPOSE OF REAL PROPERTY TAX REDUCTION AND/OR VOTER APPROVED CAPITAL
PROJECTS.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07848-04-0
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