NY State Senate Bill 2009-S875

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to local government
Jan 21, 2009	referred to local government

2009-S875 (ACTIVE) - Details

See Assembly Version of this Bill:: A6386
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §1318, RPT L; amd §1608, Ed L

2009-S875 (ACTIVE) - Summary

Relates to unexpended surplus funds which may be retained by a board of education.

2009-S875 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S875

 TITLE OF BILL :

An act to amend the real property tax law, in relation to unexpended
surplus funds which may be retained by a board of education; and to
amend the education law, in relation to property tax report cards


 PURPOSE :

This legislation permanently reduces the amount a school district may
retain in their surplus fund balance from four percent to two percent
if a school district violates the amounts set forth in subdivision 1
of section 1318 of the real property tax law, by impermissibly
retaining less than four percent as required by the aforementioned
section of law. This legislation also requires violating school
districts to admit that they have retained less than four percent in
their surplus fund balance on their school districts property tax
report card.

 SUMMARY OF PROVISIONS :

Section 1 amends the real property tax law to provide that those
school districts that retain less than three percent in their surplus
fund balance for 2007 and less than four percent in their surplus

funds balance for 2008 and all years thereafter, shall not be
permitted to retain more than two percent in their surplus fund
balance for all subsequent years.

Section 2 amends the education law to provide that those school
districts that retain less in their surplus fund balance than the
amounts required by subdivision 1 of section 1318 of the real property
tax law, shall be required to state in the school district tax report
card that the have retained less in their surplus fund balance than
required by law.

 JUSTIFICATION :

In the past school districts have complained that the two percent fund
balance limit was inadequate to meet their needs when unforeseen
expenses arose. In 2007, subdivision 1 of section 1318 of the real
property tax law was amended to increase the amount that school
districts were permitted to retain in their surplus fund balance from
two percent to three percent in 2007 and four percent in 2008. The
goal was to allow these school districts to hold greater amounts in
reserve thereby eliminating the need to borrow funds on a short term
basis.

Notwithstanding the aforementioned, there are school districts in the
State of New York who have violated this law by retaining less in
their surplus fund balance than the amounts set forth in subdivision 1
of section 1318 of the real property tax law. The law was amended to
allow these school districts to keep more money in their surplus funds
so that they could be prepared for unanticipated operating
expenditures such as higher fuel and energy costs. Despite giving
these school districts the legal mechanism to prepare for
unanticipated financial problems, some districts have disregarded the
law thereby increasing the likelihood that they will need to rely on
short term borrowing if unexpected expenses arise.

The beneficial aspects of this legislation is that it does not
penalize school districts who comply with subdivision 1 of section
1318 of the real property tax law. Another benefit is that it does not
pass any costs onto citizens of an offending school district by
increasing their taxes in any way.
This legislation also requires transparency on the part of school
districts by forcing them to admit to their noncompliance with the law
in the school district report card thereby separating those districts
who comply with the law from those that do not.

 LEGISLATIVE HISTORY :

Similar to A.415/S.1249 (2001-2002), No Action); A.7081-A/S.2232-A
(2003-2004, Passed Assembly); S.6383/A.949-A (Passed Assembly in 2005
and Veto 220 in 2006); S.1465-B/A.3249-A (passed Senate and Assembly
in 2007 and signed into law on July 18, 2007, Chapter 238); 2008,
S.7835

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act takes effect on July 1, 2009.

2009-S875 (ACTIVE) - Bill Text download pdf

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

                                   875

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 21, 2009
                               ___________

Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law,  in  relation  to  unexpended
  surplus  funds  which  may be retained by a board of education; and to
  amend the education law, in relation to property tax report cards

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

  Section 1. Subdivision 1 of section 1318 of the real property tax law,
as  amended  by  chapter  238 of the laws of 2007, is amended to read as
follows:
  1. The warrant of the collecting officer shall be signed by the  trus-
tee,  or  the trustees, or a majority of them, or the board of education
or a majority thereof. Such warrant shall state the amount of unexpended
surplus funds in the custody of the board and shall further  state  that
except  as  authorized or required by law, such unexpended surplus funds
have been applied in determining the amount of the school tax levy.  For
the two thousand seven--two thousand eight school year, surplus funds as
used  in  this  subdivision  shall mean any operating funds in excess of
three percent of the current school year budget, and shall  not  include
funds  properly  retained under other sections of law. For the two thou-
sand eight--two thousand nine school year, and thereafter, surplus funds
as used in this subdivision shall mean any operating funds in excess  of
four  percent  of  the current school year budget, and shall not include
funds properly retained under other sections of  law.    NOTWITHSTANDING
THE  EXCESS  OPERATING  FUNDS PERCENTAGES SET FORTH IN THIS SUBDIVISION,
FOR ANY BOARD THAT DOES NOT RETAIN THE PERCENTAGE  OF  EXCESS  OPERATING
FUNDS  SET  FORTH  IN  THIS  SUBDIVISION FOR THE TWO THOUSAND EIGHT--TWO
THOUSAND NINE AND TWO THOUSAND  NINE--TWO  THOUSAND  TEN  SCHOOL  YEARS,
SURPLUS  FUNDS FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR
AND THEREAFTER SHALL MEAN ANY OPERATING FUNDS IN EXCESS OF  TWO  PERCENT
OF  THE CURRENT SCHOOL YEAR BUDGET, AND SHALL NOT INCLUDE FUNDS PROPERLY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06085-01-9

S. 875                              2

RETAINED UNDER OTHER SECTIONS OF LAW. Such warrant shall have  the  same
force  and  effect  as  a  warrant issued by a board of supervisors to a
collecting officer in a town. The collecting officer to whom it  may  be
delivered  for  collection  shall  be thereby authorized and required to
collect from every person named on such school  tax  roll  the  sum  set
opposite  his name, or the amount due from any person specified therein,
in the same manner and with the same powers that collecting officers  in
towns  are  authorized  to collect taxes levied by the board of supervi-
sors.
  S 2. Paragraph a of subdivision 7 of section  1608  of  the  education
law,  as  amended by chapter 238 of the laws of 2007, is amended to read
as follows:
  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
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  dissem-
inating  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  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) the percentage increase in the consumer price
index, as defined in paragraph c  of  this  subdivision;  and  (iv)  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 unappropriated unreserved fund
balance represents; AND (V) A STATEMENT SETTING FORTH WHETHER OR NOT THE
SCHOOL DISTRICT HAS RETAINED THE PERCENTAGE OF  EXCESS  OPERATING  FUNDS
SET FORTH IN SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED EIGHTEEN OF THE
REAL PROPERTY TAX LAW.
  S 3. This act shall take effect July 1, 2009.

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Senate Bill S875

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

2009-S875 (ACTIVE) - Details

2009-S875 (ACTIVE) - Summary

2009-S875 (ACTIVE) - Sponsor Memo

2009-S875 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Kenneth P. LaValle

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

2009-S875 (ACTIVE) - Details

2009-S875 (ACTIVE) - Summary

2009-S875 (ACTIVE) - Sponsor Memo

2009-S875 (ACTIVE) - Bill Text download pdf

Comments