BILL NUMBER:A10424
TITLE OF BILL: An act to amend the education law, in relation to creat-
ing a contingency budget cap that is one hundred twenty percent of a
five year averaged consumer price index
PURPOSE: To provide budgetary flexibility for school districts around
the state, by basing a school's contingency budget on one hundred and
twenty percent of the previous year's budget, multiplied by a five year
averaged Consumer Price Index. This will eliminate the likelihood of a
negative contingency budget value.
SUMMARY OF PROVISIONS: The bill amends paragraph (a) of subdivision 4 of
§ 2023 of the education law, allowing for a school district to base its
contingency budget on a five year averaged CPI value.
EXISTING LAW: § 2023 of the education law, as added by § 24 of part (A)
of chapter 436 of the laws of 1997.
JUSTIFICATION: Under current contingency budget law, a school may be
faced with an unfair and unworkable budget reduction using the existing
formula, when there is a negative CPI value.
LEGISLATIVE HISTORY: None.
FISCAL IMPLICATIONS: None for state.
S T A T E O F N E W Y O R K
________________________________________________________________________
10424
I N A S S E M B L Y
March 25, 2010
___________
Introduced by M. of A. LIFTON, JAFFEE, JOHN, SKARTADOS, REILLY, WEISEN-
BERG -- read once and referred to the Committee on Ways and Means
AN ACT to amend the education law, in relation to creating a contingency
budget cap that is one hundred twenty percent of a five year averaged
consumer price index
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph a of subdivision 4 of section 2023 of the educa-
tion law, as added by section 24 of part A of chapter 436 of the laws of
1997, is amended to read as follows:
a. The contingency budget shall not result in a percentage increase in
total spending over the district's total spending under the school
district budget for the prior school year that exceeds the lesser of:
(i) the result obtained when one hundred twenty percent is multiplied by
the AVERAGE ANNUAL percentage increase in the consumer price index FOR
THE PRECEDING FIVE YEARS, with the result rounded to two decimal places;
or (ii) four percent.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16473-01-0
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