Senate Bill S6471

                                 BILL NUMBER:  S6471

 TITLE OF BILL :
An act to repeal subparagraph 2 of paragraph b subdivision 7 of
section 3602 of the education law, relating to not including any
expenditures to the New York City Metropolitan Transportation
Authority for public service transportation for apportionment of
public moneys to certain school districts


 PURPOSE :
This bill would remove the provision in that education law that
prohibits the New York City school district from including the cost of
Student Metro-Cards as an operating expense.  By repealing this
provision, the cost of purchasing Student Metro-Cards can be included
in the operating expense budget of the NYC Board of Education, thereby
allowing this program to continue.

 SUMMARY OF PROVISIONS :
Section 1 - Paragraph 2 of of paragraph b of section 7 of section 3602
of the education law is REPEALED.

 EXISTING LAW :
Currently, state law explicitly prevents the New York City school
district from including the cost of Student ,Metro-Cards as an
operating expense for the purpose of calculating their necessary
              

appropriation.

 JUSTIFICATION :
Prior to 1994, New York City and New York State paid the entire costs
of the Student Fare program to fund free and half price Metro-Cards
for New York City public school students. In 1995, an agreement was
made to between New York City, New York State and the MTA to divide
these costs equally. Over time, the MTA's costs associated with the
program increased while the shares from the State and City did not.
In November of 2009, as part of the Deficit Reduction Plan, the
State's share of the school fare program was reduced from $25 million
to only $6 million. The MTA, amid its ongoing fiscal crisis has been
unable to make up the difference and provide the necessary funding for
this program, and has proposed to eliminate all funding to this
program by the start of the 2011 school year.

This is a valuable program that provides free or half fare metro-cards
to students who rely on the public transportation system in New York
City to get to and from school. Current law, explicitly prohibits
"...school districts within a city with a population in excess of one
million inhabitants..." from "...including expenditures to the New
York City Metropolitan Transportation Authority for public service
transportation..." as part of their operating budgets.  Due to the
fact that the Student Fare program had been funded by the State, City
and MTA, there was no need for the NYC school district to include
costs associated with this program as part of their operating costs.
However, because funding for the Student Fare program has been cut so
drastically by the state and is set to be completely cut by the MTA,
the NYC School District must be allowed to continue to provide this
valuable service to its school children. The only way this can occur
is if they are allowed to include the costs necessary to carry on this
program in their operating budget when they compute their necessary
appropriation.

 LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
Immediately.