Senate Bill S4587

                                 BILL NUMBER:  S4587

 TITLE OF BILL :
An act to amend chapter 605 of the laws of 2000, relating to the
construction of new educational facilities, the financing of such
facilities, and the financing of the rehabilitation and reconstruction
of existing facilities in the city of Buffalo, in relation to
apportionment of building aid


 PURPOSE :
To make projects of phase IV of the Buffalo Joint School Construction
Board (JSCB) eligible for the building aid ratio that the Buffalo
School District would be eligible for if the school district engaged
in construction outside of the JSCB.

 SUMMARY OF PROVISIONS :
Section 1: Amends section 16 of chapter 605 of the laws of 2000 to
allow for projects authorized under phase IV of the Buffalo JSCB to be
eligible for high need supplemental building aid ratio.

Section 2: Establishes the effective date of this act.

 JUSTIFICATION :
During the 2000 legislative session, legislation was enacted that
allowed the City of Buffalo and the school district to work
              

cooperatively to upgrade their aging educational facilities through
the formation of their Joint School Construction Board. Chapter 59 of
the Laws of2003, Chapter 421 of the Laws of 2004, and Chapter 283 of
the Laws of 2006 authorized the first, second, and third phases of the
financing for reconstruction and rehabilitation of projects.

Chapter 492 of 2008 authorized the financing of the fourth phase of
reconstruction which will allow the City of Buffalo and the school
district to continue its work by allowing them to continue to access
cost effective financing. This chapter also included language that
would have allowed the projects of the Buffalo JSCB to receive state
building aid using the High Need Supplemental Building Aid Ratio
(HNSBAR). Because the creation of the Buffalo JSCB was prior to the
enactment of HNSBAR, their projects have been deemed ineligible for
the higher aid ratio that HNSBAR grants the Buffalo school district,
even though each subsequent phase of construction has to be
independently approved.

Unfortunately, objections were raised to altering the aid ratio, which
would have created future financial liabilities for the state, outside
of the budgetary process and an agreement was reached to remove this
provision in a subsequent chapter amendment. The senate sought the
inclusion of such language as a part of the 2009-10 budget process,
but attempts were unsuccessful.

 LEGISLATIVE HISTORY :

This is a new bill, however, similar language was included in chapter
492 of the laws of 2008 and then repealed by chapter 497 of the laws
of 2008.

 FISCAL IMPLICATIONS :
The approximate cost of this legislation to the state would be $8
million dollars over 20 years.

 LOCAL FISCAL IMPLICATIONS :
If enacted this legislation would reduce costs to the City of Buffalo
by approximately $8 million over 20 years.

 EFFECTIVE DATE :
July 1, 2009.