senate Bill S5303

2009-2010 Legislative Session

Authorizes the Horseheads central school district to use excess employee benefit accrued liability reserve funds for certain purposes

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 06, 2010 referred to education
Apr 27, 2009 referred to education

S5303 - Bill Details

See Assembly Version of this Bill:
A7869
Current Committee:
Law Section:
Education

S5303 - Bill Texts

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Authorizes the Horseheads central school district to use excess employee benefit accrued liability reserve funds for certain purposes.

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BILL NUMBER: S5303

TITLE OF BILL :
An act in relation to authorizing the Horseheads central school
district to use excess employee benefit accrued liability reserve
funds for certain purposes


PURPOSE :
To allow the Horseheads central school district to use the excess
employee benefit fund for certain purposes.

SUMMARY OF PROVISIONS :
This bill authorizes the Horseheads central school district to uses
excess EBALR funds to retire short term and long term debt of the
school district, pay one time non-recurring expenses and/or establish
a tax rebate program to return such excess EBALR funds to the
taxpayers of the school district.

JUSTIFICATION :
In August of 2008, the Office of the State Comptroller, Division of
Local Government and School Accountability provided the results of an
audit of the Employee Benefit Accrued Liability Reserve Funds (EBALR).
School Districts can create EBALR's under Section 6-p of the General
Municipal Law and use them to pay employees for accrued leave time due
to them when they leave district employment.

For the year ended June 30, 2007, 421 school districts statewide
reported balances totaling $837.6 million, and current and long term
liabilities for EBALR - related costs of $58.2 million and $638.4
million respectively. Horseheads Central School District was one of 19
school districts that were the target of the report that had excess
reserve funds. Currently, there are legal restrictions on how the
districts can use the money and the Comptrollers report concluded that
it will require legislative approval to remove the funds from the
reserves and use them to for productive purposes, such as paying off
debt or financing non-recurring expenses.

In 2008 the Comptroller advanced two different proposals in the
Legislature to provide school districts with the legal mechanism to
remedy this circumstance. They were not acted upon. As such, this bill
seeks the appropriate and necessary changes to the law to give
Horseheads Central School District the ability to address the issues
in the Comptroller's audit.

LEGISLATIVE HISTORY :
New Bill.

FISCAL IMPLICATIONS :
None to the State.

EFFECTIVE DATE :
Immediately.
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 5303                                                  A. 7869

                       2009-2010 Regular Sessions

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

                             April 27, 2009
                               ___________

IN  SENATE -- Introduced by Sen. WINNER -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Education

IN ASSEMBLY -- Introduced by M. of A. O'MARA -- read once  and  referred
  to the Committee on Education

AN ACT in relation to authorizing the Horseheads central school district
  to  use  excess  employee  benefit accrued liability reserve funds for
  certain purposes

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

  Section  1. Notwithstanding any other provision of law, the Horseheads
central school district, which was in part,  the  subject  of  an  audit
conducted by the state comptroller of employee benefit accrued liability
reserve  (EBALR)  funds for the period beginning July 1, 2002 and ending
June 30, 2007, and which, according to the findings of such  audit,  has
an  excess of EBALR funds, is hereby authorized to use such excess EBALR
funds to: retire short-term and long-term debt of such school  district;
pay  one-time  non-recurring  expenses  of  such school district; and/or
establish a tax rebate program to return such excess EBALR funds to  the
taxpayers of such school district.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11403-01-9

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