S T A T E O F N E W Y O R K
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4464
2009-2010 Regular Sessions
I N A S S E M B L Y
February 4, 2009
___________
Introduced by M. of A. BRODSKY -- read once and referred to the Commit-
tee on Education
AN ACT to amend the education law, in relation to the conditions under
which school districts are entitled to the apportionment of state
funds
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph a of subdivision 5 of section 3604 of the educa-
tion law, as amended by chapter 161 of the laws of 2005, is amended to
read as follows:
a. State aid adjustments. All errors or omissions in the apportionment
shall be corrected by the commissioner. Whenever a school district has
been apportioned less money than that to which it is entitled, the
commissioner may allot to such district the balance to which it is enti-
tled. Whenever a school district has been apportioned more money than
that to which it is entitled, the commissioner may, by an order, direct
such moneys to be paid back to the state to be credited to the general
fund local assistance account for state aid to the schools, or may
deduct such amount from the next apportionment to be made to said
district, provided, however, that, upon notification of excess payments
of aid for which a recovery must be made by the state through deduction
of future aid payments, a school district may request that such excess
payments be recovered by deducting such excess payments from the
payments due to such school district and payable in the month of June in
(i) the school year in which such notification was received and (ii) the
two succeeding school years, provided further that there shall be no
interest penalty assessed against such district or collected by the
state. Such request shall be made to the commissioner in such form as
the commissioner shall prescribe, and shall be based on documentation
that the total amount to be recovered is in excess of one percent of the
district's total general fund expenditures for the preceding school
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08262-01-9
A. 4464 2
year. The amount to be deducted in the first year shall be the greater
of (i) the sum of the amount of such excess payments that is recognized
as a liability due to other governments by the district for the preced-
ing school year and the positive remainder of the district's unreserved
fund balance at the close of the preceding school year less the product
of the district's total general fund expenditures for the preceding
school year multiplied by five percent, or (ii) one-third of such excess
payments. The amount to be recovered in the second year shall equal the
lesser of the remaining amount of such excess payments to be recovered
or one-third of such excess payments, and the remaining amount of such
excess payments shall be recovered in the third year. Provided further
that, notwithstanding any other provisions of this subdivision, any
pending payment of moneys due to such district as a prior year adjust-
ment payable pursuant to paragraph c of this subdivision for aid claims
that had been previously paid as current year aid payments in excess of
the amount to which the district is entitled and for which recovery of
excess payments is to be made pursuant to this paragraph, 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 paragraph shall be reduced by
the commissioner to reflect the amount so recovered. PROVIDED FURTHER,
HOWEVER, THAT WHEN A SCHOOL DISTRICT THAT RECEIVED AN EXCESS APPORTION-
MENT CAN DEMONSTRATE, IN A MANNER PROVIDED BY THE COMMISSIONER, THAT THE
DISTRICT IS OWED OUTSTANDING AID REPAYMENTS PREVIOUSLY APPROVED BY THE
STATE COMPTROLLER UNDER THE SAME OR A SIMILAR AID APPORTIONMENT IDENTI-
FIED BY THE COMMISSIONER, THEN THE EXCESS APPORTIONMENT SHALL BE OFFSET
AGAINST THE OUTSTANDING AID PAYMENTS. IF THE OUTSTANDING AID PAYMENTS
EXCEED THE EXCESS APPORTIONMENT, SUCH EXCESS APPORTIONMENT SHALL NOT BE
RECOVERED FROM THE SCHOOL DISTRICT, AND THE AMOUNT OF OUTSTANDING AID
PAYMENTS OWED THE SCHOOL DISTRICT SHALL BE REDUCED BY AN AMOUNT EQUAL TO
THE EXCESS APPORTIONMENT. IF THE EXCESS APPORTIONMENT EXCEEDS THE AMOUNT
OF OUTSTANDING AID PAYMENTS DUE THAT SCHOOL DISTRICT, THE AMOUNT OF
FUNDS TO BE RECOVERED SHALL EQUAL THE EXCESS APPORTIONMENT TO THE SCHOOL
DISTRICT MINUS OUTSTANDING AID PAYMENTS TO SUCH DISTRICT, AND THE SCHOOL
DISTRICT SHALL HAVE NO CLAIM TO THE OUTSTANDING AID PAYMENTS USED TO
OFFSET THE EXCESS APPORTIONMENT. IF MULTIPLE AID PAYMENTS ARE DUE A
SCHOOL DISTRICT, THEN ANY EXCESS APPORTIONMENT SHALL FIRST BE NETTED
FROM THE APPORTIONMENT NEXT SCHEDULED TO BE PAID TO THE SCHOOL DISTRICT.
IF AN OUTSTANDING AID PAYMENT, OR A PORTION OF AN OUTSTANDING AID
PAYMENT, IS STILL DUE AFTER NETTING OUT ANY EXCESS APPORTIONMENT, THE
AMOUNT OF THE OUTSTANDING AID PAYMENT SHALL RETAIN ITS PLACE IN THE
PRIOR YEAR ADJUSTMENT APPROVAL DATE ORDER QUEUE. The commissioner shall
certify no payment to a school district based on a claim submitted later
than three years after the close of the school year in which such
payment was first to be made. For claims for which payment is first to
be made in the nineteen hundred ninety-six--ninety-seven school year,
the commissioner shall certify no payment to a school district based on
a claim submitted later than two years after the close of such school
year. For claims for which payment is first to be made in the nineteen
hundred ninety-seven--ninety-eight school year and thereafter, the
commissioner shall certify no payment to a school district based on a
claim submitted later than one year after the close of such school year.
Provided, however, no payments shall be barred or reduced where such
payment is required as a result of a final audit of the state. It is
further provided that, until June thirtieth, nineteen hundred ninety-
six, the commissioner may grant a waiver from the provisions of this
A. 4464 3
section for any school district if it is in the best educational inter-
ests of the district pursuant to guidelines developed by the commission-
er and approved by the director of the budget.
S 2. This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.