S T A T E O F N E W Y O R K
________________________________________________________________________
7660
I N S E N A T E
April 29, 2010
___________
Introduced by Sen. BONACIC -- read twice and ordered printed, and when
printed to be committed to the Committee on Education
AN ACT to amend the education law, in relation to school property tax
reduction (Part A); and to amend the education law, in relation to the
submission to school district voters of a proposition relating to the
imposition of a limitation on the tax levy (Part B)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to enact this chapter of the laws of 2010. Each
component is wholly contained within a Part identified as Parts A and B.
The effective date for each particular provision contained within such
Part is set forth in the last section of such Part. Any provision in any
section contained within a Part, including the effective date of the
Part, which makes a reference to a section "of this act", when used in
connection with that particular component, shall be deemed to mean and
refer to the corresponding section of the Part in which it is found.
Section three of this act sets forth the general effective date of this
act.
PART A
Section 1. Section 2022 of the education law is amended by adding a
new subdivision 7 to read as follows:
7. A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION
TO THE CONTRARY, IN A COMMON, UNION FREE, CENTRAL, CENTRAL HIGH SCHOOL
DISTRICT OR SCHOOL DISTRICT LOCATED IN A CITY WITH GREATER THAN ONE
HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, UPON THE FILING OF A PETITION
PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION, WITH THE TRUSTEES, THE
BOARD OF EDUCATION OR THE CHANCELLOR OF A CITY SCHOOL DISTRICT LOCATED
IN A CITY WITH GREATER THAN ONE MILLION INHABITANTS SHALL SUBMIT A
PROPOSITION FOR THE PURPOSE OF VOTING ON THE QUESTION "SHALL THE
_________ SCHOOL DISTRICT ENTER INTO THE OPTIONAL SYSTEM OF STATE FUND-
ING FOR SCHOOL DISTRICT EXPENSES" TO THE QUALIFIED VOTERS OF A SCHOOL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16793-01-0
S. 7660 2
DISTRICT. SUCH VOTE SHALL BE HELD ON THE THIRD TUESDAY IN MAY, PROVIDED,
HOWEVER, THAT SUCH VOTE SHALL BE HELD ON THE SECOND TUESDAY IN MAY IF
THE COMMISSIONER AT THE REQUEST OF A LOCAL SCHOOL BOARD OR THE CHANCEL-
LOR IN THE CITY OF NEW YORK CERTIFIES NO LATER THAN MARCH FIRST THAT
SUCH ELECTION WOULD CONFLICT WITH RELIGIOUS OBSERVANCES. IF A DISTRICT
VOTES TO JOIN THE OPTIONAL SYSTEM THAT VOTE IS BINDING AND MAY NOT BE
ALTERED BY THE DISTRICT OR ITS RESIDENTS.
B. SUCH PETITION RELATING TO THE OPTIONAL SYSTEM FOR STATE FUNDING OF
SCHOOL DISTRICT EXPENSES SHALL BE SUBMITTED NO LATER THAN APRIL FIRST OF
THE SCHOOL YEAR IN WHICH SUCH QUESTION DESCRIBED IN PARAGRAPH A OF THIS
SUBDIVISION SHALL BE CONSIDERED BY THE VOTERS AND MUST BE SIGNED BY
TWENTY-FIVE PERCENT OF THE NUMBER OF QUALIFIED VOTERS WHO VOTED IN THE
PREVIOUS ANNUAL DISTRICT MEETING OR IN A CITY SCHOOL DISTRICT LOCATED IN
A CITY WITH GREATER THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS,
TWENTY-FIVE PERCENT OF THE QUALIFIED VOTERS IN THE LAST GENERAL
ELECTION. SUCH NUMBER SHALL BE DETERMINED BY THE NUMBER OF PERSONS
RECORDED ON THE POLL LIST AS HAVING VOTED AT SUCH DISTRICT MEETING IN
THE PRIOR YEAR OR IN A CITY WITH GREATER THAN ONE HUNDRED TWENTY-FIVE
THOUSAND INHABITANTS IN THE PREVIOUS GENERAL ELECTION. ANY VALID PETI-
TION CONTAINING A SUFFICIENT NUMBER OF VALID SIGNATURES TO PLACE THE
QUESTION DESCRIBED IN PARAGRAPH A OF THIS SUBDIVISION ON THE BALLOT
SUBMITTED AFTER APRIL FIRST AND BEFORE JULY FIRST SHALL BE VOTED ON THE
THIRD TUESDAY IN MAY OF THE FOLLOWING SCHOOL YEAR, PROVIDED, HOWEVER,
THAT SUCH VOTE SHALL BE HELD ON THE SECOND TUESDAY IN MAY OF THE FOLLOW-
ING SCHOOL YEAR 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.
S 2. Section 3602 of the education law is amended by adding a new
subdivision 40 to read as follows:
40. OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT EXPENSES. IN
ADDITION TO OTHER APPORTIONMENTS OF AID MADE TO DISTRICTS PURSUANT TO
THIS SECTION, ADDITIONAL APPORTIONMENTS SHALL BE MADE TO DISTRICTS WHICH
ELECT TO RECEIVE AID PURSUANT TO THIS SUBDIVISION.
A. DEFINITIONS. AS USED IN THIS SUBDIVISION: (1) "PRIMARY RESIDENTIAL
REAL PROPERTY TAX LEVY" SHALL BE DEFINED AS THE AGGREGATE PROPERTY TAXES
LEVIED BY A SCHOOL DISTRICT ON A SCHOOL DISTRICT'S STAR ELIGIBLE PROPER-
TIES AS DEFINED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
TAX LAW.
(2) "BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY" SHALL BE
DEFINED AS THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY IN THE SCHOOL
YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH THE SCHOOL DISTRICT VOTES
TO ENTER INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT
EXPENSES PURSUANT TO SUBDIVISION SEVEN OF SECTION TWO THOUSAND
TWENTY-TWO OF THIS CHAPTER.
B. TRANSITION PERIOD. (1) A SCHOOL DISTRICT SHALL CERTIFY TO THE
COMMISSIONER WITHIN THIRTY DAYS OF THE DATE AT WHICH THE VOTE WAS TAKEN
PURSUANT TO SUBDIVISION SEVEN OF SECTION TWO THOUSAND TWENTY-TWO OF THIS
CHAPTER WHETHER OR NOT THE QUALIFIED VOTERS OF THE DISTRICT HAVE ELECTED
TO ENTER INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT
EXPENSES. ONCE THE COMMISSIONER DETERMINES THAT A DISTRICT HAS OPTED
INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT EXPENSES
THE DISTRICT SHALL BEGIN RECEIVING AID PURSUANT TO THIS SUBDIVISION IN
THE SCHOOL YEAR WHICH BEGINS ON JULY FIRST IN THE SUBSEQUENT CALENDAR
YEAR.
(2) SCHOOL DISTRICTS WHICH RECEIVE AID PURSUANT TO THIS SUBDIVISION
SHALL RECEIVE AID PURSUANT TO THE SCHEDULE CONTAINED IN THIS PARAGRAPH.
S. 7660 3
SCHOOL DISTRICTS SHALL CONTINUE TO RECEIVE AID PURSUANT TO THIS PARA-
GRAPH AFTER THE PHASE IN PERIOD EQUAL TO ONE HUNDRED PERCENT OF THE BASE
YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY.
(3) DURING THE FIRST YEAR OF THE TRANSITION PERIOD, SCHOOL DISTRICTS
SHALL RECEIVE AN ADDITIONAL APPORTIONMENT EQUAL TO TWENTY PER CENTUM OF
THE BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY. IN ALL SUBSE-
QUENT YEARS OF THE TRANSITION PERIOD, SCHOOL DISTRICTS SHALL RECEIVE AN
ADDITIONAL APPORTIONMENT EQUAL TO THE FOLLOWING SCHEDULE:
PERCENT OF BASE
YEAR YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY
2 40%
3 60%
4 80%
5 100%
IN EVERY YEAR AFTER YEAR FIVE SUCH ADDITIONAL APPORTIONMENT SHALL BE
INCREASED ANNUALLY BY A COST OF LIVING INCREASE. THE COST OF LIVING
INCREASE SHALL BE ADDED TO THE ADDITIONAL APPORTIONMENT PROVIDED IN THE
PRIOR YEAR. THE COST OF LIVING INCREASE SHALL BE CALCULATED AS THE
PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FOR THE PREVIOUS TWELVE
MONTHS AS DETERMINED BY THE COMMISSIONER. SUCH PERCENTAGE INCREASE SHALL
BE MULTIPLIED BY THE PREVIOUS YEAR'S ADDITIONAL APPORTIONMENT AND THE
PRODUCT SHALL BE ADDED TO THE PREVIOUS YEAR'S ADDITIONAL APPORTIONMENT
TO CALCULATE THE CURRENT YEAR'S ADDITIONAL APPORTIONMENT.
(4) (I) A PARTICIPATING DISTRICT SHALL REDUCE THE PRIMARY RESIDENTIAL
REAL PROPERTY TAX LEVY PURSUANT TO THE SCHEDULE CONTAINED IN THIS PARA-
GRAPH. SCHOOL DISTRICTS OPTING INTO THE OPTIONAL SYSTEM FOR STATE FUND-
ING OF SCHOOL DISTRICT EXPENSES MAY NOT LEVY TAXES IN EXCESS OF THE
REMAINDER OF THE BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY
LESS THE AID PROVIDED IN SUBPARAGRAPH THREE OF THIS PARAGRAPH EXCEPT TO
FUND THE DIFFERENCE BETWEEN A DISTRICT'S CURRENT YEAR CAPITAL EXPENSES
LESS THE STATE AID APPORTIONED FOR SUCH PURPOSE.
(II) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
THE CONTRARY, A SCHOOL DISTRICT WHICH RECEIVES AID PURSUANT TO THIS
SUBDIVISION SHALL BE AUTHORIZED TO SET SEPARATE TAX WARRANTS AND TAX
RATES FOR THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY AND OTHER TAXA-
BLE PROPERTIES.
(5) THE APPORTIONMENT HEREUNDER SHALL NOT BE MADE UNTIL THE ELECTING
SCHOOL DISTRICT HAS CERTIFIED TO THE COMMISSIONER THAT THE DISTRICT'S
PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY FOR THE SCHOOL YEAR IN WHICH
AID HAS BEEN ACCEPTED PURSUANT TO THIS PARAGRAPH, DOES NOT EXCEED THE
BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY AS DEFINED IN THIS
SUBDIVISION LESS THE AID APPORTIONED PURSUANT TO THIS PARAGRAPH.
C. LOCAL FUNDING SHARE. IN EACH CITY HAVING A POPULATION OF ONE
HUNDRED TWENTY-FIVE THOUSAND OR MORE INHABITANTS FOR PURPOSES OF CALCU-
LATING THE LOCAL SHARE OF EXPENDITURES, THE AMOUNT OF THE REDUCTION IN
THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY MADE PURSUANT TO SUBPARA-
GRAPH FOUR OF PARAGRAPH B OF THIS SUBDIVISION SHALL BE DEEMED TO BE
INCORPORATED IN THE CITY SHARE OF EXPENDITURES FOR THE CITY SCHOOL
DISTRICT.
D. STATE FUNDING OF PROGRAM. THE LEGISLATURE SHALL ANNUALLY APPROPRI-
ATE AN AMOUNT SUFFICIENT TO SUPPORT ALL AID PAYMENTS INCURRED PURSUANT
TO THIS SUBDIVISION.
E. PAYMENT SCHEDULE. THE COMMISSIONER SHALL DEVELOP A PAYMENT SCHED-
ULE FOR AID PAYMENTS DUE AND PAYABLE PURSUANT TO THIS SUBDIVISION AND
SUCH SCHEDULE SHALL BE APPROVED BY THE DIRECTOR OF THE BUDGET BEFORE
SUCH PAYMENT SCHEDULE TAKES EFFECT.
S. 7660 4
S 3. This act shall take effect immediately.
PART B
Section 1. Section 2022 of the education law is amended by adding a
new subdivision 8 to read as follows:
8. A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION
TO THE CONTRARY, IN A COMMON, UNION FREE, CENTRAL, CENTRAL HIGH SCHOOL
DISTRICT OR CITY SCHOOL DISTRICT TO WHICH THIS ARTICLE APPLIES, UPON THE
FILING WITH THE TRUSTEES OR BOARD OF EDUCATION OF A PETITION PURSUANT TO
PARAGRAPH B OF THIS SUBDIVISION REQUESTING SUCH OFFICERS TO SUBMIT A
PROPOSITION FOR THE PURPOSE OF IMPOSING A LIMITATION ON THE TAX LEVY TO
THE QUALIFIED VOTERS AT THE ANNUAL DISTRICT MEETING SIGNED BY
TWENTY-FIVE PERCENT OF THE NUMBER OF QUALIFIED VOTERS WHO VOTED IN THE
PREVIOUS ANNUAL DISTRICT MEETING, SAID NUMBER TO BE DETERMINED BY THE
NUMBER OF PERSONS RECORDED ON THE POLL LIST AS HAVING VOTED AT SUCH
DISTRICT MEETING, THE TRUSTEES OR BOARD OF EDUCATION SHALL SUBMIT SUCH
PROPOSITION TO THE QUALIFIED VOTERS.
B. SUCH PETITION RELATING TO IMPOSITION OF A LIMITATION ON THE TAX
LEVY SHALL BE SUBMITTED AT LEAST THIRTY DAYS PRIOR TO THE ANNUAL
DISTRICT MEETING AND SHALL SPECIFY THE PROPOSED MAXIMUM PERCENTAGE
CHANGE IN THE ESTIMATED TAX LEVY, AS DEFINED BY THE COMMISSIONER FROM
THE ACTUAL TAX LEVY THAT RESULTED FROM THE LEVYING OF SCHOOL TAXES IN
THE PRIOR SCHOOL YEAR THAT THE TRUSTEES OR BOARD OF EDUCATION MUST APPLY
IN DEVELOPING OR ADOPTING A BUDGET FOR THE SCHOOL YEAR COMMENCING WITH
THE BUDGET TO BE SUBMITTED AT THE NEXT ANNUAL DISTRICT MEETING FOLLOWING
VOTER APPROVAL OF SUCH PROPOSITION. THE PROPOSITION PRESENTED TO THE
QUALIFIED VOTERS FOR APPROVAL MUST SPECIFY THE LIMIT ON THE PERCENTAGE
CHANGE IN THE ESTIMATED TAX LEVY THAT THE PETITION PROPOSES TO IMPOSE.
C. NOTWITHSTANDING THE PROVISIONS OF SECTION TWO THOUSAND TWENTY-THREE
OF THIS PART OR ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO THE
CONTRARY, UPON APPROVAL BY THE VOTERS OF A PROPOSITION IMPOSING A LIMI-
TATION ON TAX LEVY CHANGES PURSUANT TO THIS SUBDIVISION, FOR THE SCHOOL
YEARS IN WHICH THE LIMITATION IS IN EFFECT THE TRUSTEES OR BOARD OF
EDUCATION SHALL NOT DEVELOP AND SUBMIT A PROPOSED BUDGET TO THE VOTERS
AT THE ANNUAL DISTRICT MEETING OR A BUDGET REVOTE THAT IN COMBINATION
WITH ANY SEPARATE PROPOSITIONS INVOLVING THE EXPENDITURE OF MONEY
PROPOSED BY THE TRUSTEES OR BOARD OF EDUCATION AT SUCH ANNUAL DISTRICT
MEETING OR BUDGET REVOTE, WOULD RESULT IN AN ESTIMATED TAX LEVY, DETER-
MINED AT THE TIME THE PROPERTY TAX REPORT CARD IS PREPARED, THAT IS IN
EXCESS OF THE MAXIMUM PERCENTAGE CHANGE IN SUCH ESTIMATED TAX LEVY THAT
HAS BEEN APPROVED BY THE VOTERS, AND THE TRUSTEES OR BOARD OF EDUCATION
SHALL NOT ADOPT A CONTINGENCY BUDGET FOR SUCH SCHOOL YEARS, IN COMBINA-
TION WITH ANY SUCH SEPARATE PROPOSITIONS PROPOSED BY THE TRUSTEES OR
BOARD OF EDUCATION THAT HAVE BEEN APPROVED BY THE VOTERS, WOULD RESULT
IN AN ESTIMATED TAX LEVY IN EXCESS OF SUCH LIMITATION.
S 2. 1. Notwithstanding any other provision of law, rule or regulation
to the contrary, in a village, town, city, or county upon the filing of
a petition pursuant to subdivision two of this section with the county
board of elections in which the political subdivision which is the
subject of the petition is located, a proposition for the purpose of
imposing a limitation on the tax levy to the qualified voters at the
next general election or village general election, if the proposition
relates to a village tax levy, signed by twenty-five percent of the
number of qualified voters who voted in the previous general election or
village general election if the proposition relates to a village tax
S. 7660 5
levy, said number to be determined by respective board of elections such
proposition shall be submitted to the qualified voters.
2. Such petition relating to the imposition of a limitation on the tax
levy shall be submitted at least thirty days prior to the general
election or village general election if the proposition relates to a
village tax levy and shall specify the proposed maximum percentage
change in the estimated tax levy from the actual tax levy that resulted
from the levying of property taxes in the prior year, for the year
commencing with the budget in the year following voter approval of such
proposition. The proposition presented to the qualified voters for
approval must specify the limit on the percentage change in the esti-
mated tax levy that the petition proposes to impose.
S 3. This act shall take effect immediately.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A and B of this act shall be as
specifically set forth in the last section of such Parts.