S T A T E   O F   N E W   Y O R K
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                                  8974

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 17, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  once and referred to the Committee on Ways and Means

AN  ACT  to  amend  the  real property tax law and the education law, in
  relation to establishing limitations upon school district tax  levies;
  and repealing certain provisions of the education law relating thereto

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

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 1307 to read as follows:
  S  1307.  LIMITATIONS  UPON  SCHOOL DISTRICT TAX LEVIES. 1. GENERALLY.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF TAXES THAT MAY BE LEVIED
BY OR ON BEHALF OF  ANY  SCHOOL  DISTRICT,  OTHER  THAN  A  CITY  SCHOOL
DISTRICT  OF A CITY WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR
MORE, SHALL NOT EXCEED THE TAX LEVY LIMITATIONS ESTABLISHED PURSUANT  TO
SECTION  TWO  THOUSAND  TWENTY-THREE-A OF THE EDUCATION LAW. IT SHALL BE
THE RESPONSIBILITY OF THE COMMISSIONER OF EDUCATION TO  ANNUALLY  DETER-
MINE  THE  TAX LEVY LIMIT OF EACH SCHOOL DISTRICT IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION.
  2. DEFINITIONS. AS USED IN THIS SECTION:
  (A) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNTS  BY  WHICH  THE
TAX  LEVY  FOR  EACH SCHOOL YEAR FROM THE TWO THOUSAND TEN--TWO THOUSAND
ELEVEN SCHOOL YEAR THROUGH THE PRIOR SCHOOL YEAR WAS BELOW THE  APPLICA-
BLE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR, IF ANY.
  (B) "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH BUDG-
ETED  EXPENDITURES  RESULTING FROM THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF SCHOOL BUILDINGS,  INCLUDING
DEBT  SERVICE  AND  LEASE  EXPENDITURES,  SUBJECT TO THE APPROVAL OF THE
QUALIFIED VOTERS WHERE REQUIRED BY LAW.
  (C) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
LOCAL EXPENDITURES, IF ANY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12051-03-9

              

A. 8974                             2

  (D) "COMING SCHOOL YEAR" MEANS THE SCHOOL  YEAR  FOR  WHICH  TAX  LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.
  (E)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
MENT OF LABOR FOR THE TWELVE MONTH PERIOD PRECEDING JANUARY FIRST OF THE
CURRENT  YEAR  MINUS  THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD PRECEDING JANUARY FIRST OF THE PRIOR YEAR, DIVIDED BY:  (II)  THE
AVERAGE  OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED
STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY
FIRST OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO  FOUR
PLACES.
  (F) "LEVY GROWTH FACTOR" SHALL BE THE LESSER OF:  (I) ONE AND FOUR ONE
HUNDREDTHS;  OR  (II)  THE SUM OF ONE PLUS ONE HUNDRED TWENTY PERCENT OF
THE INFLATION FACTOR; PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE  LEVY
GROWTH FACTOR BE LESS THAN ONE.
  (G)  "PENSION  EXPENDITURES" MEANS THE BUDGETED EXPENDITURES RESULTING
FROM EMPLOYER CONTRIBUTIONS TO THE NEW YORK STATE  TEACHERS'  RETIREMENT
SYSTEM AND THE NEW YORK STATE EMPLOYEES' RETIREMENT SYSTEM.
  (H) "PENSION SUPPORT TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT
THE LOCAL SHARE OF PENSION EXPENDITURES, IF ANY, CALCULATED AS THE PROD-
UCT OF PENSION EXPENDITURES AND THE QUOTIENT OF: (I) A SCHOOL DISTRICT'S
LOCAL  ANNUAL  REVENUES IN THE MOST RECENT ANNUAL REPORT TO THE NEW YORK
STATE OFFICE OF THE STATE COMPTROLLER, LESS CAPITAL  LOCAL  EXPENDITURES
AS  DEFINED  IN  THIS SECTION; AND (II) A SCHOOL DISTRICT'S TOTAL ANNUAL
REVENUES IN THE MOST RECENT ANNUAL REPORT TO THE NEW YORK  STATE  OFFICE
OF  THE STATE COMPTROLLER, LESS ANY STATE OR FEDERAL REVENUES ASSOCIATED
WITH BUDGETED EXPENDITURES RESULTING FROM THE CONSTRUCTION, ACQUISITION,
RECONSTRUCTION,  REHABILITATION  OR  IMPROVEMENT  OF  SCHOOL  BUILDINGS,
INCLUDING  DEBT  SERVICE AND LEASE EXPENDITURES, SUBJECT TO THE APPROVAL
OF THE QUALIFIED VOTERS WHERE REQUIRED BY LAW.
  (I) "PRIOR SCHOOL YEAR" MEANS THE SCHOOL  YEAR  IMMEDIATELY  PRECEDING
THE COMING SCHOOL YEAR.
  (J)  "SCHOOL  DISTRICT"  MEANS  A  COMMON  SCHOOL DISTRICT, UNION FREE
SCHOOL DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH  SCHOOL  DISTRICT
OR  A  CITY  SCHOOL  DISTRICT  IN  A  CITY  WITH  LESS  THAN ONE HUNDRED
TWENTY-FIVE THOUSAND INHABITANTS.
  (K) "TAX LEVY BASE" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT  WOULD
BE  AUTHORIZED  TO  LEVY WITHOUT THE ADDITION OF ANY AVAILABLE CARRYOVER
AMOUNT.
  (L) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES A  SCHOOL  DISTRICT  IS
AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT THE
TAX  LEVY  LIMIT  SHALL  NOT INCLUDE THE DISTRICT'S CAPITAL TAX LEVY, IF
ANY, OR ITS PENSION SUPPORT TAX LEVY, IF ANY.
  3. TAX BASE GROWTH FACTOR. (A) NO LATER  THAN  FEBRUARY  FIFTEENTH  OF
EACH  YEAR,  THE  STATE  BOARD SHALL IDENTIFY THOSE SCHOOL DISTRICTS FOR
WHICH TAX BASE GROWTH FACTORS MUST BE DETERMINED FOR THE  COMING  SCHOOL
YEAR,  AND  SHALL  NOTIFY  THE COMMISSIONER OF EDUCATION OF THE TAX BASE
GROWTH FACTORS SO DETERMINED, IF ANY.
  (B) THE STATE BOARD SHALL CALCULATE A QUANTITY CHANGE FACTOR FOR  EACH
SCHOOL  DISTRICT  FOR  THE COMING SCHOOL YEAR BASED UPON THE PHYSICAL OR
QUANTITY CHANGE, AS DEFINED BY SECTION TWELVE  HUNDRED  TWENTY  OF  THIS
CHAPTER, REPORTED TO THE STATE BOARD BY THE ASSESSOR OR ASSESSORS PURSU-
ANT  TO  SECTION FIVE HUNDRED SEVENTY-FIVE OF THIS CHAPTER. THE QUANTITY
CHANGE FACTOR SHALL SHOW THE PERCENTAGE BY WHICH THE FULL VALUE  OF  THE
TAXABLE REAL PROPERTY IN THE SCHOOL DISTRICT HAS CHANGED DUE TO PHYSICAL

A. 8974                             3

OR  QUANTITY  CHANGE  BETWEEN  THE SECOND FINAL ASSESSMENT ROLL OR ROLLS
PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE TO  BE
LEVIED, AND THE FINAL ASSESSMENT ROLL OR ROLLS IMMEDIATELY PRECEDING THE
FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE TO BE LEVIED.
  (C)  AFTER  DETERMINING  THE  QUANTITY  CHANGE  FACTOR  FOR  A  SCHOOL
DISTRICT, THE STATE BOARD SHALL PROCEED AS FOLLOWS:
  (I) IF THE QUANTITY CHANGE FACTOR IS NEGATIVE, THE STATE  BOARD  SHALL
NOT DETERMINE A TAX BASE GROWTH FACTOR FOR THE SCHOOL DISTRICT.
  (II)  IF THE QUANTITY CHANGE FACTOR IS POSITIVE, THE STATE BOARD SHALL
DETERMINE A TAX BASE GROWTH FACTOR FOR  THE  SCHOOL  DISTRICT  WHICH  IS
EQUAL  TO  ONE PLUS THE QUANTITY CHANGE FACTOR, PROVIDED THAT IN NO CASE
SHALL A TAX BASE GROWTH FACTOR BE IN EXCESS OF ONE AND ONE-TENTH.
  4. COMPUTATION OF TAX LEVY LIMITS. (A) THE  TAX  LEVY  BASE  FOR  EACH
SCHOOL YEAR SHALL BE DETERMINED AS FOLLOWS:
  (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL
YEAR.
  (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
PRIOR SCHOOL YEAR.
  (III) SUBTRACT THE CAPITAL TAX LEVY FOR THE PRIOR SCHOOL YEAR, IF ANY.
  (IV) SUBTRACT THE PENSION SUPPORT TAX LEVY, IF ANY.
  (V) MULTIPLY THE RESULT BY THE LEVY GROWTH FACTOR.
  (VI) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, IF ANY.
  (B) THE TAX LEVY BASE SHALL BE ADJUSTED BY ADDING THE AVAILABLE CARRY-
OVER, IF ANY, PROVIDED THAT IN NO EVENT SHALL THE AMOUNT OF ADDED CARRY-
OVER  EXCEED  ONE  AND  ONE-HALF  PERCENT  OF THE TAX LEVY FOR THE PRIOR
SCHOOL YEAR.
  (C) THE TAX LEVY LIMIT  FOR  THE  COMING  SCHOOL  YEAR  SHALL  BE  THE
ADJUSTED TAX LEVY BASE, LESS ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN
THE  COMING  SCHOOL  YEAR.  NO  LATER THAN MARCH FIRST OF EACH YEAR, THE
COMMISSIONER OF EDUCATION SHALL CALCULATE THE TAX LEVY  LIMIT  FOR  EACH
SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND SHALL NOTIFY EACH SCHOOL
DISTRICT  OF  THE  LEVY  GROWTH  FACTOR,  THE DISTRICT'S TAX BASE GROWTH
FACTOR, IF ANY, THE DISTRICT'S TAX LEVY BASE AND THE DISTRICT'S TAX LEVY
LIMIT.
  5. VOTER UNDERRIDES. THE QUALIFIED VOTERS OF  A  SCHOOL  DISTRICT  MAY
VOTE  TO  REDUCE  (OR UNDERRIDE) THE LIMITATIONS IMPOSED BY THIS SECTION
FOR SUCH SCHOOL DISTRICT FOR  THE  COMING  SCHOOL  YEAR  IN  THE  MANNER
PROVIDED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW.
  6.  REORGANIZED  SCHOOL  DISTRICTS.  WHEN TWO OR MORE SCHOOL DISTRICTS
REORGANIZE, THE COMMISSIONER OF EDUCATION SHALL DETERMINE THE  TAX  LEVY
LIMIT  FOR  THE  REORGANIZED SCHOOL DISTRICT BASED ON THE RESPECTIVE TAX
LEVY LIMITS OF THE SCHOOL DISTRICTS THAT FORMED THE REORGANIZED DISTRICT
FROM THE LAST  SCHOOL  YEAR  IN  WHICH  THEY  WERE  SEPARATE  DISTRICTS,
PROVIDED  THAT  IN  THE  EVENT OF FORMATION OF A NEW CENTRAL HIGH SCHOOL
DISTRICT, THE TAX LEVY LIMITS FOR THE NEW CENTRAL HIGH  SCHOOL  DISTRICT
AND  ITS  COMPONENT  SCHOOL  DISTRICTS SHALL BE DETERMINED IN ACCORDANCE
WITH A METHODOLOGY PRESCRIBED BY THE COMMISSIONER OF EDUCATION.
  7. ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX  LEVY
FOR  A  GIVEN  SCHOOL  YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTAB-
LISHED PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THE  EDUCATION
LAW DUE TO CLERICAL OR TECHNICAL ERRORS, THE SCHOOL DISTRICT SHALL PLACE
THE  EXCESS  AMOUNT  OF  THE  LEVY  IN  RESERVE  IN ACCORDANCE WITH SUCH
REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE  SUCH
FUNDS  AND  ANY  INTEREST  EARNED THEREON TO OFFSET THE TAX LEVY FOR THE
ENSUING SCHOOL YEAR.

A. 8974                             4

  S 2. The education law is amended by adding a new  section  2023-a  to
read as follows:
  S  2023-A. VOTER APPROVAL OF TAX LEVY LIMITATIONS. 1. THE TAX LEVY FOR
ANY SCHOOL DISTRICT SUBJECT TO THE TAX LEVY LIMITATIONS  ESTABLISHED  BY
SECTION  THIRTEEN  HUNDRED  SEVEN  OF THE REAL PROPERTY TAX LAW SHALL BE
APPROVED BY THE QUALIFIED VOTERS OF THE SCHOOL DISTRICT AS  PROVIDED  IN
THIS  SECTION.  AS USED IN THIS SECTION, THE TERM "TAX LEVY PROPOSITION"
MEANS A PROPOSITION TO AUTHORIZE A TAX LEVY SUFFICIENT  TO  SUPPORT  THE
PROPOSED SCHOOL DISTRICT BUDGET, EXCLUDING ANY PROPOSED CAPITAL TAX LEVY
AND ANY PENSION SUPPORT TAX LEVY; THE TERM "UNDERRIDE PROPOSITION" MEANS
A  PROPOSITION TO IMPOSE A MORE RESTRICTIVE TAX LEVY LIMIT UPON A SCHOOL
DISTRICT THAN THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO  SECTION  THIR-
TEEN  HUNDRED  SEVEN OF THE REAL PROPERTY TAX LAW; AND THE TERM "GENERAL
PURPOSE STATE AID" MEANS ALL FORMS OF STATE AID WHICH ARE PAYABLE  TO  A
SCHOOL  DISTRICT  AS  GENERAL  SUPPORT  FOR THE PUBLIC SCHOOLS, WITH THE
EXCEPTION OF BUILDING AID, LIBRARY AID, COMPUTER HARDWARE  AND  SOFTWARE
AID,  UNIVERSAL  PRE-KINDERGARTEN  AID,  TEXTBOOK  AID, PUBLIC HIGH COST
EXCESS COST AID AND PRIVATE EXCESS COST AID. THE DIRECTOR OF THE  BUDGET
SHALL  ANNUALLY  CERTIFY THE AMOUNT OF GENERAL PURPOSE STATE AID PAYABLE
TO EACH SCHOOL DISTRICT.
  2. A. THE QUALIFIED VOTERS OF A COMMON  SCHOOL  DISTRICT,  UNION  FREE
SCHOOL  DISTRICT,  CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL DISTRICT
OR A CITY  SCHOOL  DISTRICT  IN  A  CITY  WITH  LESS  THAN  ONE  HUNDRED
TWENTY-FIVE THOUSAND INHABITANTS, UPON FILING OF A VALID PETITION PURSU-
ANT  TO  PARAGRAPH  B  OF  THIS SUBDIVISION, MAY VOTE TO IMPOSE TAX LEVY
LIMITS FOR THE ENSUING SCHOOL YEAR THAT ARE MORE RESTRICTIVE THAN  THOSE
OTHERWISE IMPOSED BY SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
TAX LAW.  NO SUCH VOTE SHALL APPLY TO MORE THAN ONE SCHOOL YEAR.
  B. UPON THE FILING WITH THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION OF
ONE  OR  MORE  PETITIONS PURSUANT TO THIS SUBDIVISION REQUESTING THAT AN
UNDERRIDE PROPOSITION BE SUBMITTED FOR A  VOTE  AT  A  SPECIAL  DISTRICT
MEETING,  SUCH OFFICERS SHALL CALL A SPECIAL DISTRICT MEETING TO BE HELD
ON THE FIRST TUESDAY IN MAY, OR THE LAST TUESDAY IN  APRIL  WHERE  THERE
WOULD  BE  A CONFLICT WITH RELIGIOUS OBSERVANCES, IN ACCORDANCE WITH THE
APPLICABLE PROVISIONS OF SUBDIVISION THREE OF SECTION TWO THOUSAND SEVEN
OR SUBDIVISION THREE OF SECTION TWO THOUSAND SIX OF  THIS  ARTICLE,  FOR
THE  PURPOSE OF SUBMITTING TO THE QUALIFIED VOTERS AN UNDERRIDE PROPOSI-
TION. SUCH OFFICERS SHALL SUBMIT FOR A VOTE OF THE QUALIFIED VOTERS  THE
PROPOSITION  THAT WAS SIGNED BY THE GREATEST NUMBER OF QUALIFIED VOTERS,
OR, IF THERE IS A TIE, THE PROPOSITION SIGNED BY THE GREATEST NUMBER  OF
QUALIFIED  VOTERS  THAT  WAS  FILED  FIRST.  A PETITION FOR AN UNDERRIDE
PROPOSITION SHALL BE SIGNED BY: (I) AT LEAST TEN PERCENT OF  THE  REGIS-
TERED  VOTERS  OF  THE SCHOOL DISTRICT BASED ON THE REGISTER PREPARED AT
THE LAST ANNUAL MEETING AND ELECTION OF THE SCHOOL DISTRICT; OR (II)  IF
THE  SCHOOL  DISTRICT  DOES NOT PROVIDE FOR THE PERSONAL REGISTRATION OF
VOTERS, BY TWO HUNDRED FIFTY QUALIFIED VOTERS OR TWENTY PERCENT  OF  THE
NUMBER  OF  VOTERS  WHO  VOTED  IN  THE  PREVIOUS ANNUAL ELECTION OF THE
MEMBERS OF THE BOARD OF EDUCATION OR TRUSTEES, WHICHEVER IS LESS.   SUCH
PETITION  SHALL  BE  FILED  IN  THE  OFFICE OF THE CLERK OF THE DISTRICT
BETWEEN THE HOURS OF NINE A.M. AND FIVE P.M., NOT LATER THAN THE TWENTI-
ETH DAY PRECEDING THE SPECIAL DISTRICT MEETING  AT  WHICH  AN  UNDERRIDE
VOTE MAY OCCUR.
  C.  WHERE  A  PROPOSITION  TO UNDERRIDE A TAX LEVY LIMITATION IS TO BE
SUBMITTED FOR A VOTE AT A  SPECIAL  DISTRICT  MEETING  CALLED  FOR  THIS
PURPOSE,  THE  CLERK  OF  THE DISTRICT SHALL GIVE NOTICE OF THE TIME AND
PLACE OF THE SPECIAL DISTRICT MEETING BY PUBLISHING A  NOTICE  AT  LEAST

A. 8974                             5

FOURTEEN DAYS PRIOR TO THE SPECIAL DISTRICT MEETING IN TWO NEWSPAPERS IF
THERE  SHALL  BE  TWO,  OR  IN  ONE NEWSPAPER IF THERE SHALL BE BUT ONE,
HAVING GENERAL CIRCULATION WITHIN SUCH DISTRICT, PROVIDED, HOWEVER, THAT
IF THERE IS NO NEWSPAPER HAVING GENERAL CIRCULATION WITHIN THE DISTRICT,
THE  SAID  NOTICE  SHALL BE POSTED IN AT LEAST TWENTY OF THE MOST PUBLIC
PLACES IN SAID DISTRICT FOURTEEN DAYS BEFORE THE TIME OF SUCH MEETING.
  D. AN  UNDERRIDE  PROPOSITION  SHALL  BE  A  SEPARATE  PROPOSITION  IN
SUBSTANTIALLY THE FOLLOWING FORM:
  "SHALL THE            SCHOOL DISTRICT BE REQUIRED TO IMPOSE A TAX LEVY
FOR THE      SCHOOL YEAR, EXCLUDING ANY CAPITAL TAX LEVY AND ANY PENSION
SUPPORT TAX LEVY, THAT IS NO GREATER THAN       , EVEN THOUGH THE STATU-
TORY TAX LEVY LIMIT FOR THAT SCHOOL YEAR IS       ?"
  E. AN UNDERRIDE PROPOSITION SHALL BE APPROVED IF OVER FIFTY PERCENT OF
THE  VOTES CAST THEREON ARE IN THE AFFIRMATIVE. IF SUCH UNDERRIDE PROPO-
SITION IS APPROVED BY THE QUALIFIED VOTERS, THE TAX LEVY  LIMIT  IMPOSED
THEREBY SHALL BE DEEMED TO BE THE TAX LEVY LIMIT FOR THE SCHOOL DISTRICT
FOR  THE  COMING  SCHOOL  YEAR  FOR PURPOSES OF SECTION THIRTEEN HUNDRED
SEVEN OF THE REAL PROPERTY TAX LAW, AND THE TRUSTEES OR BOARD OF  EDUCA-
TION  SHALL  ADOPT A BUDGET THAT COMPLIES WITH SUCH TAX LEVY LIMIT. UPON
APPROVAL OF AN UNDERRIDE PROPOSITION, NO OTHER TAX LEVY PROPOSITION  MAY
BE SUBMITTED TO THE VOTERS FOR THAT SAME SCHOOL YEAR.
  3.  A.  UNLESS  AN UNDERRIDE PROPOSITION HAS BEEN APPROVED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION,  THE  TRUSTEE,  TRUSTEES  OR  BOARD  OF
EDUCATION  OF  A SCHOOL DISTRICT SHALL PRESENT AT THE ANNUAL MEETING AND
ELECTION A TAX LEVY PROPOSITION IN SUBSTANTIALLY THE FOLLOWING FORM:
  "SHALL THE            SCHOOL DISTRICT BE AUTHORIZED TO  IMPOSE  A  TAX
LEVY  FOR THE        SCHOOL YEAR, EXCLUDING ANY CAPITAL TAX LEVY AND ANY
PENSION SUPPORT TAX LEVY, OF       , WHEN THE STATUTORY TAX  LEVY  LIMIT
FOR THAT SCHOOL YEAR IS       ?"
  B.  EXCEPT  AS OTHERWISE PROVIDED IN SECTION THIRTEEN HUNDRED SEVEN OF
THE REAL PROPERTY TAX LAW, IF THE PROPOSED TAX LEVY DOES NOT EXCEED  THE
TAX  LEVY LIMIT DETERMINED PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF
THE REAL PROPERTY TAX LAW, THEN THE PROPOSITION  SHALL  BE  APPROVED  IF
OVER  FIFTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE. IF
THE PROPOSED TAX LEVY WOULD EXCEED THE TAX LEVY LIMIT DETERMINED  PURSU-
ANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, THEN
THE  VOTING MARGIN NECESSARY FOR SUCH A PROPOSITION TO BE APPROVED SHALL
BE AS FOLLOWS:
  (I) IF THE GENERAL PURPOSE STATE AID PAYABLE TO  THE  SCHOOL  DISTRICT
FOR  THE  ENSUING YEAR IS TO INCREASE BY AT LEAST FIVE PERCENT OVER SUCH
AID FOR THE PRIOR YEAR, THEN SIXTY PERCENT OF  THE  VOTES  CAST  ON  THE
PROPOSITION  BY QUALIFIED VOTERS MUST BE IN THE AFFIRMATIVE IN ORDER FOR
THE PROPOSITION TO BE APPROVED.
  (II) IF THE GENERAL PURPOSE STATE AID PAYABLE TO THE  SCHOOL  DISTRICT
FOR  THE  ENSUING  SCHOOL  YEAR IS TO INCREASE BY LESS THAN FIVE PERCENT
OVER SUCH AID FOR THE PRIOR YEAR, THEN OVER FIFTY-FIVE  PERCENT  OF  THE
VOTES  CAST  ON  THE PROPOSITION MUST BE IN THE AFFIRMATIVE IN ORDER FOR
THE PROPOSITION TO BE APPROVED.
  (III) IF THE AMOUNT OF GENERAL PURPOSE STATE AID WHICH WILL BE PAYABLE
TO A SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR HAS NOT  BEEN  CERTIFIED
BY  THE  DIRECTOR OF THE BUDGET, THEN FIFTY PERCENT OF THE VOTES CAST ON
THE PROPOSITION BY QUALIFIED VOTERS MUST BE IN THE AFFIRMATIVE IN  ORDER
FOR THE PROPOSITION TO BE APPROVED.
  C.  IF  THE  TAX LEVY PROPOSITION IS APPROVED BY THE QUALIFIED VOTERS,
THE TAX LEVY LIMIT IMPOSED THEREBY SHALL BE DEEMED TO BE  THE  TAX  LEVY
LIMIT  FOR THE SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND THE TRUS-

A. 8974                             6

TEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT COMPLIES WITH  SUCH
TAX LEVY LIMIT. IF, HOWEVER, THE TAX LEVY PROPOSITION IS NOT APPROVED BY
THE  QUALIFIED  VOTERS,  THEN  THE  TRUSTEES OR BOARD OF EDUCATION SHALL
ADOPT  A  BUDGET THAT REQUIRES A TAX LEVY EXCLUDING ANY CAPITAL TAX LEVY
AND ANY PENSION SUPPORT TAX LEVY, THAT IS NO GREATER THAN THE  TAX  LEVY
BASE  DETERMINED  PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL
PROPERTY TAX LAW.
  S 3. Subdivisions 1 and 3 of section 416 of the education law,  subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
as  amended  by  chapter 171 of the laws of 1996, are amended to read as
follows:
  1. A majority of the voters of any school district, present and voting
at any annual or special district meeting, duly convened, may  authorize
such  acts  and  vote such taxes as they shall deem expedient for making
additions, alterations, repairs or improvements, to the sites or  build-
ings  belonging  to  the  district,  or  for  altering and equipping for
library use any former schoolhouse belonging to the district, or for the
purchase of other sites or buildings, or for a change of sites,  or  for
the  purchase  of  land  and buildings for agricultural, athletic, play-
ground or social center purposes, or for the erection of new  buildings,
or  for  building a bus garage, or for [buying apparatus, implements, or
fixtures, or for  paying  the  wages  of  teachers,  and  the  necessary
expenses  of  the  school, or for the purpose of paying any judgment, or
for] the payment or refunding of an outstanding bonded indebtedness[, or
for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
  3. No addition to or change of site or purchase of a new site  or  tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse,  or  for  the  purchase of lands and buildings for agricul-
tural, athletic, playground or social center purposes, or  for  building
any  new  schoolhouse  or for the erection of an addition to any school-
house already built, or for the payment or refunding of  an  outstanding
bonded  indebtedness, shall be voted at any such meeting in a union free
school district or a city school district [which conducts annual  budget
votes  in  accordance with article forty-one of this chapter pursuant to
section twenty-six hundred one-a of this chapter] IN A  CITY  WITH  LESS
THAN  ONE  HUNDRED  TWENTY-FIVE THOUSAND INHABITANTS, unless a notice by
the board of education stating that such tax will be proposed, and spec-
ifying the object thereof and the amount to be expended therefor,  shall
have been given in the manner provided herein for the notice of an annu-
al  meeting. In a common school district the notice of a special meeting
to authorize any of the improvements enumerated in this section shall be
given as provided in section two thousand six OF THIS CHAPTER. The board
of education of a union free school district or a city  school  district
[which conducts annual budget votes in accordance with article forty-one
of  this  chapter  pursuant  to section twenty-six hundred one-a of this
chapter] IN A CITY WITH  LESS  THAN  ONE  HUNDRED  TWENTY-FIVE  THOUSAND
INHABITANTS, may determine that the vote upon any question to be submit-
ted at a special meeting as provided in this section shall be by ballot,
in  which  case it shall state in the notice of such special meeting the
hours during which the polls shall be kept open. Printed ballots may  be
prepared  by  the board in advance of the meeting and the proposition or
propositions called for in the notice of the meeting may be submitted in
substantially the same manner as propositions to  be  voted  upon  at  a
general election.

A. 8974                             7

  S  4.  Subdivisions 14, 15, 18 and 24 of section 1604 of the education
law, subdivisions 14 and 18 as amended by chapter 654  of  the  laws  of
1953, are amended to read as follows:
  14.  To  keep  each  of  the  schoolhouses under their charge, and its
furniture, school apparatus and appurtenances, in necessary  and  proper
repair, and make the same reasonably comfortable for use[, but shall not
expend  therefor  without  vote  of the district an amount to exceed one
hundred dollars in any one year].
  15. To make any repairs and  abate  any  nuisances,  pursuant  to  the
direction of the district superintendent as herein provided, and provide
fuel,  stoves or other heating apparatus, pails, brooms and other imple-
ments necessary to keep the schoolhouses and the schoolrooms clean,  and
make  them  reasonably  comfortable for use[, when no provision has been
made therefor by a vote of  the  district,  or  the  sum  voted  by  the
district for said purposes shall have proved insufficient].
  18.  To  [expend  in  the]  purchase [of] a dictionary, books, reprod-
uctions of standard works of art, maps, globes or other  school  appara-
tus,  including  implements,  apparatus  and supplies for instruction in
agriculture, or for conducting athletic playgrounds  and  social  center
activities[,  a sum not exceeding fifty dollars in any one year, without
a vote of the district].
  24. To furnish lighting facilities, janitorial  care  and  supervision
for  highway underpasses [when authorized to do so by vote of a district
meeting under the provisions of subdivision twenty of section two  thou-
sand fifteen of this chapter].
  S  5.  Section  1608  of the education law, as amended by section 5 of
part A of chapter 436 of the laws of  1997,  subdivisions  2  and  4  as
amended  by chapter 640 of the laws of 2008, subdivision 7 as amended by
section 4 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision 7 as amended by chapter 238 of the laws of 2007, is  amended
to read as follows:
  S  1608.  Estimated expenses for ensuing year. 1. It shall be the duty
of the trustees of each common school district to present at the  annual
budget  hearing  a  detailed statement in writing of the amount of money
which will be required for the ensuing year for school purposes,  speci-
fying the several purposes and the amount for each.  WHERE A PROPOSITION
TO UNDERRIDE A TAX LEVY LIMITATION HAS BEEN APPROVED PURSUANT TO SECTION
TWO  THOUSAND TWENTY-THREE-A OF THIS CHAPTER, THE TRUSTEES SHALL PRESENT
AT THE ANNUAL BUDGET HEARING A BUDGET THAT COMPLIES  WITH  THE  APPROVED
UNDERRIDE  PROPOSITION.  The amount for each purpose estimated necessary
for payments to boards of  cooperative  educational  services  shall  be
shown  in  full, with no deduction of estimated state aid. The amount of
state aid provided and its percentage relationship to the total expendi-
tures shall also be shown.  This  section  shall  not  be  construed  to
prevent  the trustees from presenting such statement at a budget hearing
held not less than seven nor more than fourteen days prior to a  special
meeting  called for the purpose, nor from presenting a supplementary and
amended statement or estimate at any time.
  2. Such statement shall be completed at least seven  days  before  the
budget  hearing  at which it is to be presented and copies thereof shall
be prepared and made available, upon request and at the school  district
offices,  at  any  public library or free association library within the
district and on the school district's internet website, if  one  exists,
to  residents  within  the  district  during the period of fourteen days
immediately preceding  the  annual  meeting  [and  election  or  special
district  meeting at which the budget vote will occur] and at such meet-

A. 8974                             8

ing or hearing. The board shall also as a part of the notice required by
section two thousand three of this chapter give notice of the date, time
and place of the budget hearing and that a copy of such statement may be
obtained  by  any  resident  in  the district at each schoolhouse in the
district in which school is maintained during certain  designated  hours
on each day other than a Saturday, Sunday or holiday during the fourteen
days  immediately preceding such meeting. The board shall include notice
of the availability of such statement at least once  during  the  school
year in any district-wide mailing distributed.
  3.  Commencing with the proposed budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, such proposed  budget  shall  be  in
plain  language  and shall be consistent with regulations promulgated by
the commissioner pursuant to subdivision  twenty-six  of  section  three
hundred  five of this chapter. Categorization of and format for revenue,
including payments in lieu of taxes, property tax refunds from  certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes  in  such data from the prior year and, in the case of [a resub-
mitted or] AN amended budget, changes in such information from the prior
year's submitted budget, shall be complete and accurate and set forth in
such a manner as to best promote public comprehension and readability.
  4. Commencing with the proposed budget for the nineteen hundred  nine-
ty-eight--ninety-nine   school  year,  such  proposed  budget  shall  be
presented in three components: a program component, a capital  component
and  an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation  with
local  school  district  officials.  The  administrative component shall
include, but need not be limited to, office and  central  administrative
expenses, traveling expenses and all compensation, salaries and benefits
of  all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy,  assistant,  associate
or  other  superintendents  under  all  existing employment contracts or
collective bargaining agreements, any and  all  expenditures  associated
with  the  operation  of the office of trustee or board of trustees, the
office of the superintendent of  schools,  general  administration,  the
school  business office, consulting costs not directly related to direct
student services and programs, planning  and  all  other  administrative
activities. The program component shall include, but need not be limited
to, all program expenditures of the school district, including the sala-
ries  and benefits of teachers and any school administrators or supervi-
sors who spend a majority of their time performing teaching duties,  and
all  transportation  operating  expenses.    The capital component shall
include, but need not be limited to, all  transportation  capital,  debt
service,  and  lease expenditures; costs resulting from judgments in tax
certiorari proceedings or the payment of awards  from  court  judgments,
administrative  orders or settled or compromised claims; and all facili-
ties costs of the school district, including facilities  lease  expendi-
tures,  the  annual  debt  service  and  total  debt  for all facilities
financed by bonds and notes of the school district,  and  the  costs  of
construction, acquisition, reconstruction, rehabilitation or improvement
of  school  buildings, provided that such budget shall include a rental,
operations and maintenance section that includes base rent costs,  total
rent  costs, operation and maintenance charges, cost per square foot for
each facility leased by the school district, and any  and  all  expendi-
tures   associated   with   custodial  salaries  and  benefits,  service
contracts, supplies, utilities, and maintenance and  repairs  of  school
facilities.  [For  the  purposes  of the development of a budget for the

A. 8974                             9

nineteen hundred ninety-eight--ninety-nine school year, the  trustee  or
board  of  trustees  shall  separate the district's program, capital and
administrative costs for the nineteen hundred ninety-seven--ninety-eight
school  year  in  the  manner  as  if  the budget for such year had been
presented in three components.]
  5. The trustee or board of trustees shall append to the  statement  of
estimated expenditures a detailed statement of the total compensation to
be paid to the superintendent of schools, and any assistant or associate
superintendents  of  schools  in  the  ensuing  school year, including a
delineation of the salary, annualized cost of benefits and  any  in-kind
or  other form of remuneration. The trustees shall also append a list of
all other school administrators and supervisors, if  any,  whose  annual
salary  will  be  eighty-five  thousand  dollars  or more in the ensuing
school year, with the title of their positions and annual salary identi-
fied; provided however, that the commissioner  may  adjust  such  salary
level to reflect increases in administrative salaries after June thirti-
eth,  nineteen hundred ninety-eight. The trustees shall submit a copy of
such list and statement, in a form prescribed by  the  commissioner,  of
compensation  to  the commissioner within five days after their prepara-
tion. The commissioner shall compile such data, together with  the  data
submitted  pursuant  to  subdivision  three of section seventeen hundred
sixteen of this chapter, into  a  single  statewide  compilation,  which
shall  be  made  available  to  the governor, the legislature, and other
interested parties upon request.
  6. Each year, the board of education shall prepare a  school  district
report card, pursuant to regulations of the commissioner, and shall make
it  publicly available by transmitting it to local newspapers of general
circulation, appending it to copies of the proposed budget made publicly
available as required by law, making it available  for  distribution  at
the  annual  meeting,  and otherwise disseminating it as required by the
commissioner. Such report card shall include measures  of  the  academic
performance  of  the  school  district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the  commissioner,  the  report
card  shall  also  compare  these measures to statewide averages for all
public schools, and statewide averages for public schools of  comparable
wealth  and  need, developed by the commissioner. Such report card shall
include, at a minimum, any information on the school district  regarding
pupil  performance  and expenditure per pupil required to be included in
the annual report by the regents to the  governor  and  the  legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information  required  by the commissioner. School districts (i) identi-
fied as having fifteen percent or more  of  their  students  in  special
education,  or  (ii)  which have fifty percent or more of their students
with disabilities  in  special  education  programs  or  services  sixty
percent  or  more  of the school day in a general education building, or
(iii) which have eight percent or more of their students with  disabili-
ties  in special education programs in public or private separate educa-
tional settings shall indicate on  their  school  district  report  card
their respective percentages as defined in this [subparagraph] PARAGRAPH
and [subparagraphs] PARAGRAPHS (i) and (ii) of this [paragraph] SUBDIVI-
SION as compared to the statewide average.
  7. a. Each year, commencing with the proposed budget for the two thou-
sand--two  thousand  one  school  year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to

A. 8974                            10

local newspapers of general circulation, appending it to copies  of  the
proposed  budget  made  publicly available as required by law, making it
available for distribution at the annual [meeting] BUDGET  HEARING,  and
otherwise  disseminating it as required by the commissioner. Such report
card shall include: (i) the amount of total spending and total estimated
school tax levy that would result from adoption of the  proposed  budget
and  the  percentage  increase  or  decrease in total spending and total
school tax levy from the school district budget for the preceding school
year; and (ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX  LEVY  BASE  DETER-
MINED  PURSUANT  TO  SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
TAX LAW, THE TAX LEVY PROPOSED BY THE DISTRICT, THE PROPOSED CAPITAL TAX
LEVY, IF ANY AND THE PROPOSED PENSION SUPPORT  TAX  LEVY,  IF  ANY;  AND
(III)  the projected enrollment growth for the school year for which the
budget is prepared, and the percentage change  in  enrollment  from  the
previous year; and [(iii)]  (IV) the percentage increase in the consumer
price  index,  as defined in paragraph c of this subdivision; and [(iv)]
(V) the projected amount of the unappropriated unreserved  fund  balance
that  will  be retained if the proposed budget is adopted, the projected
amount of the reserved fund balance, the projected amount of the  appro-
priated  fund  balance,  the  percentage of the proposed budget that the
unappropriated unreserved fund balance represents, the  actual  unappro-
priated  unreserved  fund balance retained in the school district budget
for the preceding school year, and the percentage of the school district
budget for the preceding school  year  that  the  actual  unappropriated
unreserved fund balance represents.
  b.  A  copy  of  the  property tax report card prepared for the annual
[district meeting] BUDGET HEARING shall be submitted to  the  department
in  the  manner  prescribed by the department by the end of the business
day next following approval of the report card by the trustee  or  board
of  trustees,  but no later than twenty-four days prior to the statewide
uniform voting day. The department  shall  compile  such  data  for  all
school  districts  [whose budgets are subject to a vote of the qualified
voters] SUBJECT TO A TAX LEVY LIMITATION PURSUANT  TO  SECTION  THIRTEEN
HUNDRED  SEVEN OF THE REAL PROPERTY TAX LAW and shall make such compila-
tion available electronically at least ten days prior to  the  statewide
uniform voting day.
  c.  For  purposes  of  this  subdivision,  "percentage increase in the
consumer price index" shall mean  the  percentage  that  represents  the
product  of  one  hundred  and  the  quotient of: (i) the average of the
national consumer price indexes determined by the United States  depart-
ment of labor for the twelve-month period preceding January first of the
current  year  minus  the average of the national consumer price indexes
determined by the United States department of labor for the twelve-month
period preceding January first of the prior year, divided  by  (ii)  the
average  of the national consumer price indexes determined by the United
States department of labor for the twelve-month period preceding January
first of the prior year, with the result expressed as a decimal  to  two
places.
  S  6.  Subdivisions  22  and  28 of section 1709 of the education law,
subdivision 22 as amended by chapter  682  of  the  laws  of  2002,  are
amended to read as follows:
  22.  To  provide,  purchase,  lease, furnish and maintain buildings or
other suitable accommodations for the use of teachers or other employees
of the district [when duly authorized by a  meeting  of  the  district],
SUBJECT  TO  APPROVAL OF THE VOTERS WHERE OTHERWISE REQUIRED BY LAW, and
to raise by tax upon the taxable property of  the  district  and  moneys

A. 8974                            11

necessary for such purposes; and also to provide, maintain and operate a
cafeteria or restaurant service for the use of pupils and teachers while
at  school.  Such  cafeteria  may  be  used  by the community for school
related  functions  and  activities  and to furnish meals to the elderly
residents, sixty years of age or older, of the district.  Such CAFETERIA
OR RESTAURANT SERVICE AND SUCH  utilization  shall  be  subject  to  the
approval of the board of education.  Charges shall be sufficient to meet
the direct cost of preparing and serving such meals, reducible by avail-
able reimbursements.
  28.  To  furnish  lighting facilities, janitorial care and supervision
for highway underpasses [when authorized to do so by vote of a  district
meeting  under the provisions of subdivision twenty of section two thou-
sand fifteen of this chapter].
  S 7. Section 1716 of the education law, as amended  by  section  7  of
part  A  of  chapter  436  of  the laws of 1997, subdivisions 2 and 4 as
amended by chapter 640 of the laws of 2008, subdivision 7 as amended  by
section 5 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision  7 as amended by chapter 238 of the laws of 2007, is amended
to read as follows:
  S 1716. Estimated expenses for ensuing year. 1. It shall be  the  duty
of  the  board  of  education  of each district to present at the annual
budget hearing a detailed statement in writing of the  amount  of  money
which  will be required for the ensuing year for school purposes, speci-
fying the several purposes and the amount for each.  WHERE A PROPOSITION
TO UNDERRIDE A TAX LEVY LIMITATION HAS BEEN APPROVED PURSUANT TO SECTION
TWO THOUSAND TWENTY-THREE-A OF THIS  CHAPTER,  THE  BOARD  OF  EDUCATION
SHALL  PRESENT  AT THE ANNUAL BUDGET HEARING A BUDGET THAT COMPLIES WITH
THE APPROVED UNDERRIDE PROPOSITION. The amount for  each  purpose  esti-
mated  necessary  for  payments  to  boards  of  cooperative educational
services shall be shown in full, with no deduction  of  estimated  state
aid. The amount of state aid provided and its percentage relationship to
the  total  expenditures  shall also be shown. This section shall not be
construed to prevent the board from presenting such statement at a budg-
et hearing held not less than seven nor more than fourteen days prior to
a special meeting called for the purpose, nor from presenting a  supple-
mentary and amended statement or estimate at any time.
  2.  Such  statement  shall be completed at least seven days before the
budget hearing at which it is to be presented and copies  thereof  shall
be  prepared and made available, upon request and at the school district
offices, at any public library or free association  library  within  the
district  and  on the school district's internet website, if one exists,
to residents within the district during  the  period  of  fourteen  days
immediately  preceding  the  annual  meeting  [and  election  or special
district meeting at which the budget vote will occur] and at such  meet-
ing or hearing. The board shall also as a part of the notice required by
section  two thousand four of this chapter give notice of the date, time
and place of the budget hearing and that a copy of such statement may be
obtained by any resident in the district  at  each  schoolhouse  in  the
district  in  which school is maintained during certain designated hours
on each day other than a Saturday, Sunday or holiday during the fourteen
days immediately preceding such meeting. The board shall include  notice
of  the  availability  of such statement at least once during the school
year in any district-wide mailing distributed.
  3. Commencing with the proposed budget for the nineteen hundred  nine-
ty-seven--ninety-eight  school  year,  such  proposed budget shall be in
plain language and shall be consistent with regulations  promulgated  by

A. 8974                            12

the  commissioner  pursuant  to  subdivision twenty-six of section three
hundred five of this chapter. Categorization of and format for  revenue,
including  payments in lieu of taxes, property tax refunds from certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes  in  such data from the prior year and, in the case of [a resub-
mitted or] AN amended budget, changes in such information from the prior
year submitted budget, shall be complete and accurate and set  forth  in
such a manner as to best promote public comprehension and readability.
  4.  Commencing with the proposed budget for the nineteen hundred nine-
ty-eight--ninety-nine  school  year,  such  proposed  budget  shall   be
presented  in three components: a program component, a capital component
and an administrative component which shall be separately delineated  in
accordance  with regulations of the commissioner after consultation with
local school district  officials.  The  administrative  component  shall
include,  but  need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business  admin-
istrators,  superintendents  of schools and deputy, assistant, associate
or other superintendents under  all  existing  employment  contracts  or
collective  bargaining  agreements,  any and all expenditures associated
with the operation of the board of education, the office of  the  super-
intendent  of  schools,  general  administration,  the  school  business
office, consulting costs not directly related to direct student services
and programs, planning and all other  administrative  activities.    The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of  teachers  and  any  school administrators or supervisors who spend a
majority of their time performing teaching duties, and  all  transporta-
tion  operating  expenses. The capital component shall include, but need
not be limited to, all transportation capital, debt service,  and  lease
expenditures;   costs   resulting   from  judgments  in  tax  certiorari
proceedings or the payment of awards from court  judgments,  administra-
tive  orders  or settled or compromised claims; and all facilities costs
of the school district, including  facilities  lease  expenditures,  the
annual  debt service and total debt for all facilities financed by bonds
and notes of the school district, and the costs of construction,  acqui-
sition,  reconstruction,  rehabilitation or improvement of school build-
ings, provided that such budget shall include a rental,  operations  and
maintenance  section  that  includes  base rent costs, total rent costs,
operation and maintenance charges, cost per square foot for each facili-
ty leased by the school district, and any and all  expenditures  associ-
ated  with custodial salaries and benefits, service contracts, supplies,
utilities, and maintenance and repairs of school  facilities.  [For  the
purposes  of  the development of a budget for the nineteen hundred nine-
ty-eight--ninety-nine school year, the board of education shall separate
the district's program, capital and administrative costs for  the  nine-
teen  hundred ninety-seven--ninety-eight school year in the manner as if
the budget for such year had been presented in three components.]
  5. The board of education shall append to the statement  of  estimated
expenditures  a  detailed statement of the total compensation to be paid
to the superintendent of schools, and any assistant or associate  super-
intendents  of  schools  in the ensuing school year, including a deline-
ation of the salary, annualized cost of  benefits  and  any  in-kind  or
other  form  of  remuneration. The board shall also append a list of all
other school administrators and supervisors, if any, whose annual salary
will be eighty-five thousand dollars or more in the ensuing school year,

A. 8974                            13

with the title of their positions and annual salary identified; provided
however, that the commissioner may adjust such salary level  to  reflect
increases  in  administrative  salaries  after  June thirtieth, nineteen
hundred ninety-eight. The board of education shall submit a copy of such
list and statement, in a form prescribed by the commissioner, of compen-
sation to the commissioner within five days after their preparation. The
commissioner  shall  compile such data, together with the data submitted
pursuant to subdivision four of section sixteen hundred  eight  of  this
chapter, into a single statewide compilation, which shall be made avail-
able to the governor, the legislature, and other interested parties upon
request.
  6.  Each  year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of  general
circulation, appending it to copies of the proposed budget made publicly
available  as  required  by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as  required  by  the
commissioner.  Such  report  card shall include measures of the academic
performance of the school district, on a school  by  school  basis,  and
measures of the fiscal performance of the district, as prescribed by the
commissioner.  Pursuant  to  regulations of the commissioner, the report
card shall also compare these measures to  statewide  averages  for  all
public  schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report  card  shall
include,  at a minimum, any information of the school district regarding
pupil performance and expenditure per pupil required to be  included  in
the  annual  report  by  the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts  (i)  identi-
fied  as  having  fifteen  percent  or more of their students in special
education, or (ii) which have fifty percent or more  of  their  students
with  disabilities  in  special  education  programs  or  services sixty
percent or more of the school day in a general  education  building,  or
(iii)  which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate  educa-
tional  settings  shall  indicate  on  their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
  7. a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers of general circulation, appending it  to  copies  of  the  proposed
budget  made  publicly available as required by law, making it available
for distribution at the annual [meeting] BUDGET HEARING,  and  otherwise
disseminating it as required by the commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy  that  would  result  from  adoption of the proposed budget and the
percentage increase or decrease in total spending and total  school  tax
levy  from the school district budget for the preceding school year; and
(ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETERMINED PURSUANT
TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, THE  TAX
LEVY  PROPOSED  BY  THE  DISTRICT, AND THE PROPOSED CAPITAL TAX LEVY, IF
ANY; AND (III) the projected enrollment growth for the school  year  for
which  the  budget  is prepared, and the percentage change in enrollment
from the previous year; and [(iii)] (IV) the percentage increase in  the

A. 8974                            14

consumer price index, as defined in paragraph c of this subdivision; and
[(iv)]  (V)  the  projected amount of the unappropriated unreserved fund
balance that will be retained if the proposed  budget  is  adopted,  the
projected  amount  of the reserved fund balance, the projected amount of
the appropriated fund balance, the percentage  of  the  proposed  budget
that  the  unappropriated unreserved fund balance represents, the actual
unappropriated unreserved fund balance retained in the  school  district
budget  for  the preceding school year, and the percentage of the school
district budget for the preceding school year that the  actual  unappro-
priated unreserved fund balance represents.
  b.  A  copy  of  the  property tax report card prepared for the annual
[district meeting] BUDGET HEARING shall be submitted to  the  department
in  the  manner  prescribed by the department by the end of the business
day next following approval of the report card by the  board  of  educa-
tion,  but no later than twenty-four days prior to the statewide uniform
voting day.   The department shall compile  such  data  for  all  school
districts  [whose budgets are subject to a vote of the qualified voters]
SUBJECT TO A TAX LEVY LIMITATION PURSUANT TO  SECTION  THIRTEEN  HUNDRED
SEVEN  OF  THE  REAL  PROPERTY  TAX  LAW and shall make such compilation
available electronically at  least  ten  days  prior  to  the  statewide
uniform voting day.
  c.  For  purposes  of  this  subdivision,  "percentage increase in the
consumer price index" shall mean  the  percentage  that  represents  the
product  of  one  hundred  and  the  quotient of: (i) the average of the
national consumer price indexes determined by the United States  depart-
ment of labor for the twelve-month period preceding January first of the
current  year  minus  the average of the national consumer price indexes
determined by the United States department of labor for the twelve-month
period preceding January first of the prior year, divided  by  (ii)  the
average  of the national consumer price indexes determined by the United
States department of labor for the twelve-month period preceding January
first of the prior year, with the result expressed as a decimal  to  two
places.
  S  8.  Section 1718 of the education law, as amended by chapter 774 of
the laws of 1965, subdivision 2 as amended by chapter 82 of the laws  of
1995, is amended to read as follows:
  S 1718. Limitation  upon expenditures.  1. No board of education shall
incur a district liability in excess of the amount  appropriated  [by  a
district  meeting]  IN  THE  BUDGET  APPROVED  BY THE BOARD OF EDUCATION
unless such board is specially authorized by law to incur  such  liabil-
ity.
  2.  Notwithstanding the provisions of subdivision one of this section,
grants in aid received  from  the  state  and  federal  governments  for
specific  purposes,  other state AID OR grants in aid [identified by the
commissioner] for general use [as specified by the board of  education],
other  gifts  which  are  required to be spent for particular objects or
purposes and insurance proceeds received for the loss, theft, damage  or
destruction  of  real  or personal property, when proposed to be used or
applied to repair or replace  such  property,  may  be  appropriated  by
resolution  of  the  board  of education at any time for such objects or
purposes.
  S 9. Section 2005 of the education law, as amended  by  section  3  of
part M of chapter 57 of the laws of 2005, is amended to read as follows:
  S 2005. Special  meeting to transact business of annual meeting. When-
ever the time for holding the annual meeting in a school district  shall
pass  without such meeting being held, a special meeting[, to be held on

A. 8974                            15

the date specified for a school budget revote  pursuant  to  subdivision
three  of  section two thousand seven of this part,] shall thereafter be
called by the trustees or by the clerk of such district for the  purpose
of  transacting the business of the annual meeting; and if no such meet-
ing be called by the trustees or the clerk within ten  days  after  such
time  shall  have passed, the district superintendent of the supervisory
district in which said school district is situated or  the  commissioner
[of  education] may order any inhabitant of such district to give notice
of such meeting in the manner provided in section two  thousand  one  of
this  part,  and the officers of the district shall make to such meeting
the reports required to be made at the annual meeting,  subject  to  the
same  penalty in case of neglect; and the officers elected at such meet-
ing shall hold their respective offices only until the next annual meet-
ing and until their successors are elected  and  shall  have  qualified.
Notice  of  such  annual  meeting  shall comply with the requirements of
section two thousand three or section two thousand four of this part  by
publishing  such  notices  once  in  each week within the two weeks next
preceding such special meeting, the first publication  to  be  at  least
fourteen  days  before such meeting and any required posting to be four-
teen days before the time of such meeting. [If the qualified  voters  at
such  special  district  meeting  defeat the school district budget, the
trustees or board of education shall adopt a contingency budget pursuant
to section two thousand twenty-three of this part.  Notwithstanding  any
other provision in law, the trustees or board of education following the
adoption of a contingency budget may call a special district meeting for
a  second  vote  on  the proposed budget pursuant to the requirements of
subdivision three of section two thousand seven or subdivision three  of
section two thousand six of this chapter.]
  S 10. Subdivision 3 of section 2006 of the education law is REPEALED.
  S  11.  Subdivision 3 of section 2007 of the education law, as amended
by section 5 of part M of chapter 57 of the laws of 2005, is amended  to
read as follows:
  3.  a.  Notwithstanding  the provisions of subdivisions one and two of
this section, and of section two thousand four of  this  part,  whenever
the  [voters  of  the  district  shall  have  defeated the budget of the
district, in whole or in part, or whenever the] board of education shall
have rejected all bids for a contract  or  contracts  for  public  work,
transportation  or  purchase[,]  and  [whenever  in either such case the
board of education shall deem] DEEMS it necessary and proper to  call  a
special meeting to take appropriate action, the board of education shall
be authorized to give the notices required by subdivision one of section
two  thousand  four of this part by publishing such notices once in each
week within the two weeks next preceding such special meeting, the first
publication to be at least fourteen days before  such  meeting  and  any
required posting to be fourteen days before the time of such meeting.
  b.  [A  school  budget  revote  called pursuant to paragraph a of this
subdivision shall be held on the third Tuesday of June, provided, howev-
er that such budget revote shall be held on the second Tuesday  in  June
if  the commissioner at the request of a local school board certifies no
later than March first that such  vote  would  conflict  with  religious
observances.
  c.] Notwithstanding the provisions of section two thousand fourteen of
this part, where a school district shall have adopted personal registra-
tion,  the board of registration shall meet on such day or days as shall
be fixed by the board of education, the  last  day  of  which,  however,
shall not be more than seven nor less than two days preceding any school

A. 8974                            16

district  meeting notices for which shall have been given as provided in
this subdivision.
  S  12.  Section  2008  of the education law is amended by adding a new
subdivision 3 to read as follows:
  3. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  IT
SHALL  NOT  BE  WITHIN  THE POWERS OF THE VOTERS OF A SCHOOL DISTRICT TO
SUBMIT A PROPOSITION THAT REQUIRES THE EXPENDITURE  OF  MONEY,  PROVIDED
THAT  THE  VOTERS  MAY  SUBMIT A TAX LEVY LIMIT UNDERRIDE PROPOSITION AS
AUTHORIZED  PURSUANT  TO  SUBDIVISION  TWO  OF  SECTION   TWO   THOUSAND
TWENTY-THREE-A OF THIS PART OR A PROPOSITION TO CHANGE THE MILEAGE LIMI-
TATIONS  ON  TRANSPORTATION  PURSUANT TO SUBDIVISION NINETEEN OF SECTION
TWO THOUSAND TWENTY-ONE OF THIS PART.
  S 13. Subdivisions 10, 11, 12, 15, 16, 17, 18, 20 and  21  of  section
2021  of the education law, such section as renumbered by chapter 801 of
the laws of 1953, are REPEALED and subdivisions 8 and 19 are amended  to
read as follows:
  8.  To  vote  a  tax  upon  the  taxable  property of the district, to
purchase, lease and improve such sites or an addition to such sites  and
grounds for the purposes specified in the preceding subdivision, to hire
or  purchase  rooms or buildings for school rooms or schoolhouses, or to
build schoolhouses[; to keep in repair and furnish the same with  neces-
sary fuel, furniture and appurtenances, and to purchase such implements,
apparatus  and  supplies  as  may be necessary to provide instruction in
agriculture and other subjects, and for the organization and conduct  of
athletic, playground and other social center work].
  19. To [provide, by tax or otherwise, for the conveyance of] DETERMINE
WHETHER  TRANSPORTATION  SHOULD  BE  PROVIDED PURSUANT TO PARAGRAPH A OF
SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED THIRTY-FIVE OF THIS  CHAP-
TER  TO  pupils  residing  in  [a] THE school district WHO ARE IN GRADES
KINDERGARTEN THROUGH EIGHT AND LIVE LESS THAN TWO MILES FROM THE  SCHOOL
THEY  LEGALLY  ATTEND OR ARE IN GRADES NINE THROUGH TWELVE AND LIVE LESS
THAN THREE MILES FROM SUCH SCHOOL OR TO PUPILS IN  ANY  GRADE  WHO  LIVE
MORE  THAN FIFTEEN MILES FROM THE SCHOOL THEY LEGALLY ATTEND, (a) to the
elementary or high schools, or both, maintained in such district  and/or
(b)  to the elementary or high schools, or both, in any city or district
with which an education contract shall have been made, and/or (c) to the
elementary or high schools, or both, other than public, situated  within
the  district  or  an  adjacent district or city, whenever such district
shall have contracted with the school authorities of any city,  or  with
another  school district, for the education therein of the pupils resid-
ing in such school district, or whenever in any school  district  pupils
of school age shall reside so remote from the schoolhouse therein or the
elementary  or  high  school  they legally attend, within or without the
district, that they are practically deprived of school advantages during
any portion of the school year.
  S 14. Section 2022 of the education law, as amended by section  23  of
part  A  of  chapter  436  of  the laws of 1997, subdivisions 1 and 3 as
amended by section 8 of part C of chapter 58 of the laws of 1998, subdi-
visions 2 and 5 as added by section 23 of part A of chapter 436  of  the
laws of 1997, subdivision 2-a as amended by section 3 of part A of chap-
ter 60 of the laws of 2000, paragraph b of subdivision 2-a as amended by
section  5 of part W of chapter 57 of the laws of 2008, subdivision 4 as
amended by section 7 of part M of chapter 57 of the  laws  of  2005  and
subdivision  6 as added by chapter 61 of the laws of 2003, is amended to
read as follows:

A. 8974                            17

  S 2022. [Vote on] ADOPTION OF school district budgets  [and  on  the];
ANNUAL  DISTRICT  MEETING  AND  election of school district trustees and
board of education members. 1. Notwithstanding any law,  rule  or  regu-
lation  to  the  contrary,  the  ANNUAL DISTRICT MEETING AND election of
trustees or members of the board of education, and the TAX LEVY PROPOSI-
TION  vote  [upon  the  appropriation of the necessary funds to meet the
estimated expenditures,] in  any  common  school  district,  union  free
school district, central school district or central high school district
shall  be held [at the annual meeting and election] on the third Tuesday
in May, provided, however, that such  election  shall  be  held  on  the
second  Tuesday  in  May  if  the commissioner at the request of a local
school board certifies no later than  March  first  that  such  election
would  conflict  with religious observances. [When such election or vote
is taken by recording the ayes and noes of the qualified voters  attend-
ing, a majority of the qualified voters present and voting, by a hand or
voice  vote,  may determine to take up the question of voting the neces-
sary funds to meet the estimated expenditures for a specific item  sepa-
rately,  and  the  qualified  voters present and voting may increase the
amount of any estimated expenditures or  reduce  the  same,  except  for
teachers'   salaries,  and  the  ordinary  contingent  expenses  of  the
schools.] The sole trustee, board of trustees or board of  education  of
every  common,  union  free, central or central high school district and
every city school district to which this article applies  shall  hold  a
budget  hearing not less than seven nor more than fourteen days prior to
the annual meeting and election [or special district meeting at which  a
school  budget  vote  will  occur], and shall prepare and present to the
voters at such budget hearing a proposed school district budget for  the
ensuing  school year.   IF THE QUALIFIED VOTERS HAVE APPROVED A TAX LEVY
PROPOSITION OR UNDERRIDE PROPOSITION  IN  ACCORDANCE  WITH  SECTION  TWO
THOUSAND  TWENTY-THREE-A  OF THIS PART, SUCH TRUSTEES OR BOARD OF EDUCA-
TION SHALL ADOPT A BUDGET THAT COMPLIES WITH SUCH PROPOSITION.    IF  NO
TAX  LEVY  PROPOSITION OR UNDERRIDE PROPOSITION HAS BEEN APPROVED BY THE
QUALIFIED VOTERS, THEN THE TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT  A
BUDGET  THAT REQUIRES A TAX LEVY, EXCLUDING ANY CAPITAL TAX LEVY AND ANY
PENSION SUPPORT TAX LEVY, THAT IS NO GREATER  THAN  THE  TAX  LEVY  BASE
DETERMINED  PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROP-
ERTY TAX LAW.
  2. [Except as provided in subdivision four of this  section,  nothing]
NOTHING  in  this section shall preclude the trustees or board of educa-
tion, in their discretion, from submitting additional items of  expendi-
ture  to  the voters for approval as separate propositions or the voters
from submitting propositions pursuant to [section] SECTIONS two thousand
eight and two thousand thirty-five of this [article] PART.
  2-a. Every common, union free, central, central high  school  district
and  city  school  district  to  which this article applies shall mail a
school budget notice to all qualified  voters  of  the  school  district
after  the  date of the budget hearing, but no later than six days prior
to the annual meeting and election [or special district meeting at which
a school budget vote will occur]. The school budget notice shall compare
the percentage increase or decrease in total spending under the proposed
budget over total spending under the school district budget adopted  for
the current school year, with the percentage increase or decrease in the
consumer  price  index,  from  January first of the prior school year to
January first of the current school year, and shall  also  include  [the
information  required  by  paragraphs  a  and b of this subdivision. The
notice shall also set forth the date, time and place of the school budg-

A. 8974                            18

et vote, in the same manner as in the  notice  of  annual  meeting]  THE
DISTRICT'S  TAX  LEVY  LIMIT  AND  TAX  LEVY BASE DETERMINED PURSUANT TO
SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY  TAX  LAW,  THE  TAX
LEVY  PROPOSED  BY  THE DISTRICT, THE PROPOSED CAPITAL TAX LEVY, IF ANY,
AND THE PROPOSED PENSION SUPPORT TAX LEVY, IF ANY. Such notice shall  be
in a form prescribed by the commissioner.
  [a.  Commencing with the proposed budget for the two thousand one--two
thousand two school year, such notice shall also include  a  description
of how total spending and the tax levy resulting from the proposed budg-
et would compare with a projected contingency budget adopted pursuant to
section  two  thousand  twenty-three of this article, assuming that such
contingency budget is adopted on  the  same  day  as  the  vote  on  the
proposed  budget.  Such  comparison  shall  be in total and by component
(program, capital and administrative), and shall include a statement  of
the assumptions made in estimating the projected contingency budget.
  b.]  Commencing  with the proposed budget for the two thousand eight--
two thousand nine school year, such notice  shall  also  include,  in  a
format  prescribed  by  the commissioner, an estimate of the tax savings
that would be available to an eligible homeowner under the basic  school
tax  relief  (STAR) exemption authorized by section four hundred twenty-
five of the real property tax law if the proposed budget  were  adopted.
Such  estimate shall be made in the manner prescribed by the commission-
er, in consultation with the office of real property services.
  3. In all elections for trustees or members of boards of education  or
votes ON PROPOSITIONS involving the expenditure of money, or authorizing
the  levy  of  taxes,  OR  VOTES ON PROPOSITIONS TO UNDERRIDE A TAX LEVY
LIMITATION PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
the vote thereon shall be by ballot, or, in school districts that  prior
to  nineteen  hundred  ninety-eight  conducted  their vote at the annual
meeting, may be ascertained by taking and recording the ayes and noes of
such qualified voters attending and voting at such district meetings.
  4. [In the event that the original proposed budget is not approved  by
the voters, the sole trustee, trustees or board of education may adopt a
final budget pursuant to subdivision five of this section or resubmit to
the  voters  the  original  or  a revised budget pursuant to subdivision
three of section two thousand seven of this part.  Upon  one  defeat  of
such  resubmitted  budget, the sole trustee, trustees or board of educa-
tion shall adopt a final budget pursuant to  subdivision  five  of  this
section.]  Notwithstanding  any  other provision of law to the contrary,
[the school district budget for any school year, or  any  part  of  such
budget  or] any propositions involving the expenditure of money for such
school year shall not be submitted for a vote of  the  qualified  voters
more than twice.
  [5.  If  the  qualified  voters  fail  to  approve the proposed school
district budget upon resubmission or upon a determination not to  resub-
mit  for a second vote pursuant to subdivision four of this section, the
sole trustee, trustees or board of education, after applying thereto the
public school moneys and other moneys received or  to  be  received  for
that purpose, shall levy a tax for the sum necessary for teachers' sala-
ries  and  other  ordinary  contingent  expenses  in accordance with the
provisions of this subdivision and section two thousand twenty-three  of
this article.
  6. Notwithstanding the provisions of subdivision four of section eigh-
teen  hundred  four and subdivision five of section nineteen hundred six
of this title, subdivision one of section two thousand two of this arti-
cle, subdivision one of this section, subdivision two of  section  twen-

A. 8974                            19

ty-six hundred one-a of this title and any other provision of law to the
contrary,  the  annual  district  meeting  and election of every common,
union free, central and central high  school  district  and  the  annual
meeting  of  every city school district in a city having a population of
less than one hundred twenty-five thousand inhabitants that is scheduled
to be held on the third Tuesday of May, two  thousand  three  is  hereby
adjourned until the first Tuesday in June, two thousand three. The trus-
tees  or  board  of education of each such school district shall provide
notice of such adjourned meeting to the qualified voters in  the  manner
prescribed  for  notice  of  the  annual  meeting, and such notice shall
provide for an adjourned budget hearing. The adjourned district  meeting
or  district  meeting and election shall be deemed the annual meeting or
annual meeting and election of the district for all purposes under  this
title  and  the date of the adjourned meeting shall be deemed the state-
wide uniform voting day for all purposes under  this  title.    Notwith-
standing  the provisions of subdivision seven of section sixteen hundred
eight or subdivision seven of section seventeen hundred sixteen of  this
title or any other provision of law, rule or regulation to the contrary,
in two thousand three the property tax report card shall be submitted to
the  department  no  later  than  twenty  days  prior to the date of the
adjourned meeting and the department shall make its  compilation  avail-
able electronically at least seven days prior to such date.]
  S 15. Section 2023 of the education law is REPEALED.
  S  16.  Subdivision 2 of section 2035 of the education law, as amended
by chapter 111 of the laws of 1979, is amended to read as follows:
  2. In common school districts the  manner  of  making  nominations  or
submitting  propositions  by anyone other than the trustees and in union
free school districts the manner of submitting  propositions  by  anyone
other  than  the board of education for the purpose of preparing ballots
for the machine shall be prescribed by a rule previously adopted by  the
trustees  or  board  of education; provided, however, that the petition,
certificate, declaration, notice or other paper required by  such  rule,
for  the  making  of  any  such nomination or submission, except as to a
question or proposition required by law to be stated in the published or
posted notice of the meeting shall be filed with the trustees  or  board
of  education not later than thirty days before the meeting or election.
Any nomination may be rejected by the trustees if the candidate is inel-
igible for the office or has declared his unwillingness  to  serve;  any
proposition may be rejected by the trustees or board of education if the
purpose  of  the  proposition  is not within the power of the voters, or
where A PROPOSITION TO CHANGE THE MILEAGE LIMITATIONS ON  TRANSPORTATION
PURSUANT  TO  SUBDIVISION NINETEEN OF SECTION TWO THOUSAND TWENTY-ONE OF
THIS PART  WOULD  REQUIRE  the  expenditure  of  ADDITIONAL  moneys  [is
required  by  the  proposition], if the proposition fails to include the
necessary specific appropriation.   Any such rule may  be  amended  from
time  to  time  and may state that a reasonable minimum number of signa-
tures shall be required for submission.  The trustees or board of educa-
tion shall cause such rule, and amendments from  time  to  time,  to  be
printed  for  general  distribution  in the district. Provided, however,
that the provisions of any  special  law  relating  to  nominations  and
elections  in any union free school district shall continue to remain in
force, and the manner of making nominations and the conduct of  meetings
and elections, shall conform to such special law.
  S  17. Paragraph a of subdivision 9 and paragraphs a and b of subdivi-
sion 12 of section 2503 of the education law, as amended by chapter  171
of the laws of 1996, are amended to read as follows:

A. 8974                            20

  a.  Shall  promote  the best interests of the schools and other activ-
ities committed to its care, and shall authorize, or in  its  discretion
conduct,  and  maintain  such  extra classroom activities, including the
operation of cafeterias or restaurant service  for  use  by  pupils  and
teachers,  as  the  board,  from  time to time, shall deem proper.  Such
cafeterias or restaurant service may be used by the community for school
related functions and activities and to furnish  meals  to  the  elderly
residents,  sixty  years of age or older, of the district. Such utiliza-
tion AND THE OPERATION OF CAFETERIAS  OR  RESTAURANT  SERVICE  shall  be
subject to the approval of the board of education[, and shall be subject
to  voter  approval unless the cafeteria or restaurant service was oper-
ated during the preceding school year and requires no tax levy]. Charges
shall be sufficient to meet the direct cost  of  preparing  and  serving
such meals, reducible by available reimbursements.
  a.    to  and  from  schools  within the school district for distances
greater than two or three miles, as applicable, and to and from  schools
outside  the district within the mileage limitations prescribed in para-
graph a of subdivision one of section thirty-six hundred thirty-five  of
this  chapter  shall always be [an ordinary contingent expense] A CHARGE
UPON THE SCHOOL DISTRICT, and
  b. for distances less than two or three miles, as applicable,  or  for
greater  than  fifteen  miles  to  and from schools outside the district
shall be [an ordinary contingent  expense]  A  CHARGE  UPON  THE  SCHOOL
DISTRICT  if:  (i) such transportation was provided during the preceding
school year and the qualified voters have not passed a special  proposi-
tion  constricting  the  mileage limitations for the current school year
from those in effect in the prior year, or  (ii)  the  qualified  voters
have  passed  a special proposition expanding the mileage limitations in
effect in the prior year.
  S 18. Section 2601-a of the education law, as added by chapter 171  of
the  laws  of  1996,  subdivision 2 as amended by section 6 of part M of
chapter 57 of the laws of 2005, subdivision 3 as amended by chapter  640
of  the laws of 2008, subdivision 4 as amended by section 8 of part M of
chapter 57 of the laws of 2005, subdivision 5 as amended by  section  29
of  part  A of chapter 436 of the laws of 1997, subdivision 6 as amended
and subdivision 7 as added by chapter  474  of  the  laws  of  1996,  is
amended to read as follows:
  S  2601-a.  Procedures  for  [adoption  of  school budgets] ANNUAL AND
SPECIAL DISTRICT MEETINGS in small city school districts. 1.  The  board
of education of each city school district subject to this article [shall
provide for the submission of a budget for approval of the voters pursu-
ant to the provisions of this section.
  2.  The  board  of education] shall ADOPT A SCHOOL DISTRICT BUDGET AND
conduct all annual and special school district meetings for the  purpose
of  [adopting  a  school district budget] VOTING ON PROPOSITIONS FOR THE
EXPENDITURE OF MONEY, INCLUDING BUT NOT LIMITED  TO  VOTES  PURSUANT  TO
SECTION  FOUR  HUNDRED  SIXTEEN  OF THIS CHAPTER, AND VOTING ON TAX LEVY
PROPOSITIONS AND UNDERRIDE PROPOSITIONS PURSUANT TO SECTION TWO THOUSAND
TWENTY-THREE-A OF THIS TITLE, in the same manner as a union free  school
district  in accordance with the provisions of article forty-one of this
title, except as otherwise provided by this section. The annual  meeting
and  election  of  each  such  city school district shall be held on the
third Tuesday of May in each year, provided, however  that  such  annual
meeting  and  election shall be held on the second Tuesday in May if the
commissioner at the request of a local school board certifies  no  later
than March first that such election would conflict with religious obser-

A. 8974                            21

vances[,  and  any school budget revote shall be held on the date and in
the same manner specified in subdivision three of section  two  thousand
seven of this title]. The provisions of this article, and where applica-
ble  subdivisions  nine and nine-a of section twenty-five hundred two of
this title, governing the qualification and registration of voters,  and
procedures  for  the  nomination and election of members of the board of
education shall continue to apply, and shall  govern  the  qualification
and  registration  of  voters  and voting procedures with respect to the
adoption of a school district budget.
  [3.] 2. The  board  of  education  shall  prepare  a  proposed  school
district  budget  for the ensuing year in accordance with the provisions
of section seventeen hundred sixteen  of  this  chapter,  including  all
provisions  relating to required notices and appendices to the statement
of expenditures. No board of education shall  incur  a  school  district
liability  except  as  authorized by the provisions of section seventeen
hundred  eighteen  of  this  chapter.  Such  proposed  budget  shall  be
presented  in three components: a program component, a capital component
and an administrative component which shall be separately delineated  in
accordance  with regulations of the commissioner after consultation with
local school district  officials.  The  administrative  component  shall
include,  but  need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business  admin-
istrators,  superintendents  of schools and deputy, assistant, associate
or other superintendents under  all  existing  employment  contracts  or
collective  bargaining  agreements,  any and all expenditures associated
with the operation of the board of education, the office of  the  super-
intendent  of  schools,  general  administration,  the  school  business
office, consulting costs not directly related to direct student services
and programs, planning and all other  administrative  activities.    The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of  teachers  and  any  school administrators or supervisors who spend a
majority of their time performing teaching duties, and  all  transporta-
tion  operating  expenses. The capital component shall include, but need
not be limited to, all transportation capital, debt service,  and  lease
expenditures;   costs   resulting   from  judgments  in  tax  certiorari
proceedings or the payment of awards from court  judgments,  administra-
tive  orders  or settled or compromised claims; and all facilities costs
of the school district, including  facilities  lease  expenditures,  the
annual  debt service and total debt for all facilities financed by bonds
and notes of the school district, and the costs of construction,  acqui-
sition,  reconstruction,  rehabilitation or improvement of school build-
ings, provided that such budget shall include a rental,  operations  and
maintenance  section  that  includes  base rent costs, total rent costs,
operation and maintenance charges, cost per square foot for each facili-
ty leased by the school district, and any and all  expenditures  associ-
ated  with custodial salaries and benefits, service contracts, supplies,
utilities, and maintenance and repairs of school  facilities.  [For  the
purposes  of  the development of a budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, the board of education  shall  sepa-
rate  its  program,  capital  and  administrative costs for the nineteen
hundred ninety-six--ninety-seven school year in the  manner  as  if  the
budget  for such year had been presented in three components.] Except as
provided in subdivision [four] THREE of this section,  nothing  in  this
section  shall  preclude  the  board, in its discretion, from submitting

A. 8974                            22

additional items of expenditure to the voters for approval  as  separate
propositions  or  the  voters from submitting propositions [pursuant] to
THE EXTENT AUTHORIZED BY sections two thousand eight  and  two  thousand
thirty-five of this chapter.
  [4. In the event the qualified voters of the district reject the budg-
et proposed pursuant to subdivision three of this section, the board may
propose  to the voters a revised budget pursuant to subdivision three of
section two thousand seven of this title  or  may  adopt  a  contingency
budget pursuant to subdivision five of this section and subdivision five
of  section  two  thousand  twenty-two  of  this  title.] 3. The [school
district budget for any school year, or any  part  of  such  budget  or]
BOARD  OF  EDUCATION  SHALL  NOT  SUBMIT  any propositions involving the
expenditure of money for such school year [shall not be submitted] for a
vote of the qualified voters more than twice. [In the event  the  quali-
fied  voters  reject  the  resubmitted  budget,  the board shall adopt a
contingency budget in accordance with subdivision five of  this  section
and  subdivision  five  of  such section two thousand twenty-two of this
title.
  5. If the qualified voters fail or refuse to vote the sum estimated to
be necessary  for  teachers'  salaries  and  other  ordinary  contingent
expenses,  the board shall adopt a contingency budget in accordance with
this subdivision and shall levy a tax  for  that  portion  of  such  sum
remaining  after  applying thereto the moneys received or to be received
from state, federal or other sources, in the same manner as if the budg-
et had been approved by the qualified voters; subject to the limitations
imposed in subdivision four of section two thousand twenty-three of this
chapter and this subdivision. The  administrative  component  shall  not
comprise a greater percentage of the contingency budget exclusive of the
capital  component than the lesser of (1) the percentage the administra-
tive component had comprised in the prior year budget exclusive  of  the
capital  component;  or  (2) the percentage the administrative component
had comprised in the last proposed  defeated  budget  exclusive  of  the
capital  component. Such contingency budget shall include the sum deter-
mined by the board to be necessary for:
  (a) teachers' salaries, including the salaries of all members  of  the
teaching and supervising staff;
  (b) items of expense specifically authorized by statute to be incurred
by  the  board of education, including, but not limited to, expenditures
for transportation to and from regular school programs included as ordi-
nary contingent expenses in subdivision twelve  of  section  twenty-five
hundred  three  of  this  chapter,  expenditures for textbooks, required
services for non-public school students, school health services, special
education services, kindergarten and nursery school  programs,  and  the
district's  share  of  the  administrative  costs  and costs of services
provided by a board of cooperative educational services;
  (c) items of expense for legal obligations of the district, including,
but not limited to, contractual obligations, debt service, court  orders
or judgments, orders of administrative bodies or officers, and standards
and  requirements of the board of regents and the commissioner that have
the force and effect of law;
  (d) the purchase of library books and  other  instructional  materials
associated with a library;
  (e) items of expense necessary to maintain the educational programs of
the  district,  preserve  the  property  of  the district or protect the
health and safety of students and staff, including, but not limited  to,
support  services,  pupil personnel services, the necessary salaries for

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the  necessary  number  of  non-teaching  employees,   necessary   legal
expenses,  water  and utility charges, instructional supplies for teach-
ers' use, emergency repairs, temporary  rental  of  essential  classroom
facilities,  and expenditures necessary to advise school district voters
concerning school matters; and
  (f) expenses incurred for interschool athletics, field trips and other
extracurricular activities; and
  (g) any other item of expense determined by the commissioner to be  an
ordinary contingent expense in any school district.
  6.  The  commissioner  shall determine appeals raising questions as to
what items of expenditure are ordinary contingent expenses  pursuant  to
subdivision five of this section in accordance with section two thousand
twenty-four and three hundred ten of this chapter.
  7.]  Each year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of  general
circulation, appending it to copies of the proposed budget made publicly
available  as  required  by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as  required  by  the
commissioner.  Such  report  card shall include measures of the academic
performance of the school district, on a school  by  school  basis,  and
measures of the fiscal performance of the district, as prescribed by the
commissioner.  Pursuant  to  regulations of the commissioner, the report
card shall also compare these measures to  statewide  averages  for  all
public  schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report  card  shall
include,  at a minimum, any information on the school district regarding
pupil performance and expenditure per pupil required to be  included  in
the  annual  report  by  the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts  (i)  identi-
fied  as  having  fifteen  percent  or more of their students in special
education, or (ii) which have fifty percent or more  of  their  students
with  disabilities  in  special  education  programs  or  services sixty
percent or more of the school day in a general  education  building,  or
(iii)  which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate  educa-
tional  settings  shall  indicate  on  their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
  S 19. Subdivision 11 of  section  3602-e  of  the  education  law,  as
amended  by  section  19 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
  11. Notwithstanding the provisions of subdivision ten of this section,
where the district serves fewer children during the current year than in
the base year, the school district shall have its apportionment  reduced
in  an  amount proportional to such deficiency in the current year or in
the succeeding school year, as determined by  the  commissioner,  except
such  reduction  shall  not  apply  to school districts which have fully
implemented a universal pre-kindergarten program by making such  program
available  to  all  eligible  children. [Expenses incurred by the school
district in implementing a pre-kindergarten  program  plan  pursuant  to
this subdivision shall be deemed ordinary contingent expenses.]
  S  20.  Paragraphs  a  and  b  of subdivision 1 of section 3635 of the
education law, paragraph a as amended by chapter 69 of the laws of 1992,
paragraph b as amended by chapter 718 of the laws of 1990  and  subpara-

A. 8974                            24

graph  (i) of paragraph b as amended by chapter 571 of the laws of 1994,
are amended to read as follows:
  a.  Sufficient  transportation facilities (including the operation and
maintenance of motor vehicles) shall be provided by the school  district
for all the children residing within the school district to and from the
school  they  legally  attend,  who  are  in need of such transportation
because of the remoteness  of  the  school  to  the  child  or  for  the
promotion  of  the  best interest of such children.  Such transportation
shall be provided for all children attending grades kindergarten through
eight who live more than two miles from the school  which  they  legally
attend  and  for  all  children attending grades nine through twelve who
live more than three miles from the school which they legally attend and
shall be provided for each such child up to a distance of fifteen miles,
the distances in each case being measured by the nearest available route
from home to school. The cost of providing such  transportation  between
two  or  three  miles,  as  the  case may be, and fifteen miles shall be
considered for the purposes of this chapter to  be  a  charge  upon  the
district [and an ordinary contingent expense of the district]. Transpor-
tation  for  a  lesser  distance  than two miles in the case of children
attending grades kindergarten through eight or three miles in  the  case
of  children  attending  grades  nine  through  twelve and for a greater
distance than fifteen miles may be provided by  the  district  WITH  THE
APPROVAL  OF  THE  QUALIFIED  VOTERS, and, if provided, shall be offered
equally to all children in like circumstances residing in the  district;
provided,  however, that this requirement shall not apply to transporta-
tion offered pursuant to section  thirty-six  hundred  thirty-five-b  of
this [article] PART.
  b. (i) School districts providing transportation to a nonpublic school
for  pupils  living  within  a specified distance from such school shall
designate one or more public schools as centralized pick-up  points  and
shall  provide  transportation  between  such  points and such nonpublic
schools for students residing in the district who live too far from such
nonpublic schools to qualify for transportation between home and school.
The district shall not be responsible for the provision  of  transporta-
tion  for  pupils  between  their  home  and  such pick-up points.   The
district may provide school bus transportation to a pupil if  the  resi-
dence  of the pupil is located on an established route for the transpor-
tation of pupils to the centralized pick-up point provided  such  trans-
portation does not result in additional costs to the district. [The cost
of providing transportation between such pick-up points and such nonpub-
lic schools shall be an ordinary contingent expense.]
  (ii)  A board of education may, at its discretion, provide transporta-
tion for pupils residing within  the  district  to  a  nonpublic  school
located more than fifteen miles from the home of any such pupil provided
that  such  transportation  has  been  provided to such nonpublic school
pursuant to this subdivision in at least one of the immediately  preced-
ing  three  school years and such transportation is provided from one or
more centralized pick-up points designated pursuant  to  this  paragraph
and  that  the distance from such pick-up points to the nonpublic school
is not more than fifteen miles. The district shall  not  be  responsible
for  the provision of transportation for pupils between [pupils] PUPILS'
homes and such pick-up points. [The  cost  of  providing  transportation
between such pick-up points and such nonpublic schools shall be an ordi-
nary contingent expense.]

A. 8974                            25

  S  21.  Subdivision  10  of  section  3635-b  of the education law, as
amended by chapter 422 of the laws  of  2004,  is  amended  to  read  as
follows:
  10.  The  cost of providing transportation, pursuant to the provisions
of this section, shall [be an ordinary contingent expense and shall]  be
included as an item of expense for purposes of determining the transpor-
tation quota of such district.
  S 22. Subdivisions 1, 3, 3-a, 4 and 5 of section 3651 of the education
law, subdivision 1 as amended by chapter 504 of the laws of 1949, subdi-
visions 3 and 4 as added by chapter 782 of the laws of 1948, subdivision
3-a  as  added  by chapter 588 of the laws of 1988, and subdivision 5 as
amended by chapter 976 of the laws of  1963,  are  amended  to  read  as
follows:
  1.  A reserve fund may be established by the school authorities of any
school district, [provided, however, that no such fund shall  be  estab-
lished  (a) until approved by a majority vote of the qualified voters of
the district voting on a proposition therefor submitted at a regular  or
special  school  district  meeting,  or in school districts which do not
have such meetings, at an election called  for  such  purpose,  and  (b)
unless  the  notice of such meeting or election shall have stated that a
proposition to establish a reserve  fund  would  be  so  submitted,  the
purpose  of the fund, the ultimate amount thereof, its probable term and
the source from which the funds would be obtained] AS DEFINED IN  SUBDI-
VISION  TWELVE OF SECTION TWO OF THIS CHAPTER.  Such reserve fund may be
established for financing, in whole or in part, the cost of  any  object
or  purpose  for  which  bonds  may  be issued by, or for the objects or
purposes of, the school district pursuant to the local finance law.  The
[proposition]  RESOLUTION  OF  THE  SCHOOL  AUTHORITIES ESTABLISHING THE
RESERVE FUND shall specify the purpose for  which  the  fund  is  estab-
lished, the ultimate amount, the probable term and the source from which
the  funds are to be obtained. There shall be paid into any such fund an
annual amount sufficient to meet the requirements of the proposition  OR
RESOLUTION.   In addition, the [voters] SCHOOL AUTHORITIES may from time
to time direct the [school authorities to pay] PAYMENT into such fund OF
moneys derived from any other source.
  3. An expenditure shall be made from a reserve fund only  by  authori-
zation  of  the [voters] SCHOOL AUTHORITIES and for the specific purpose
specified in the proposition OR RESOLUTION WHICH ESTABLISHED THE RESERVE
FUND.
  [3-a. Notwithstanding the provisions  of  subdivision  three  of  this
section, any school district which establishes a reserve fund in accord-
ance  with  subdivision one-a of this section may make expenditures from
such fund for the purposes specified in such subdivision without author-
ization of the voters.]
  4. The [voters] SCHOOL AUTHORITIES may authorize the transfer  of  all
or  any  part  of any reserve fund to any other reserve fund established
pursuant to this section.
  5. Whenever the [voters] SCHOOL AUTHORITIES shall determine  that  the
original  purpose  for  which  a reserve fund has been established is no
longer desirable, [the school authorities] THEY may liquidate  the  fund
by  first  applying  its proceeds to any outstanding bonded indebtedness
and applying the balance, if any, to  the  annual  tax  levy,  provided,
however, that the amount so applied in any one year shall not be greater
than the amount which will reduce the tax rate for school purposes below
five  mills  on  actual  valuation;  provided,  however, that the school
authorities in any school district having no outstanding bonded  indebt-

A. 8974                            26

edness  may,  in any year in which no state aid is payable thereto under
the provisions of this chapter, liquidate  such  fund  by  applying  the
balance  thereof  to the annual tax levy, regardless of the tax rate for
school purposes[, subject to the approval of a majority of the qualified
electors of the district voting on a proposition therefor submitted at a
regular or special school district meeting, or in school districts which
do not have such meetings, at an election called for such purpose].
  S  23. This act shall take effect immediately and shall first apply to
the levy of taxes by school districts for the 2010-2011 school year  and
to  school district meetings and elections held on and after such effec-
tive date; provided, however, that sections  eight,  fifteen,  nineteen,
twenty and twenty-one of this act shall take effect July 1, 2010.