A. 8332 2
OF THE PRIOR FISCAL 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 ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
(E) "LOCAL GOVERNMENT" MEANS A COUNTY, CITY, TOWN, VILLAGE, FIRE
DISTRICT, OR SPECIAL DISTRICT INCLUDING BUT NOT LIMITED TO A DISTRICT
CREATED PURSUANT TO ARTICLE TWELVE OR TWELVE-A, OR GOVERNED BY ARTICLE
THIRTEEN OF THE TOWN LAW, OR CREATED PURSUANT TO ARTICLE FIVE-A, FIVE-B
OR FIVE-D OF THE COUNTY LAW, CHAPTER FIVE HUNDRED SIXTEEN OF THE LAWS OF
NINETEEN HUNDRED TWENTY-EIGHT, OR CHAPTER TWO HUNDRED SEVENTY-THREE OF
THE LAWS OF NINETEEN HUNDRED THIRTY-NINE, AND SHALL INCLUDE TOWN
IMPROVEMENTS PROVIDED PURSUANT TO ARTICLES THREE-A AND TWELVE-C OF THE
TOWN LAW BUT SHALL NOT INCLUDE THE CITY OF NEW YORK OR THE COUNTIES
CONTAINED THEREIN.
(F) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
(G) "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES AUTHORIZED TO BE LEVIED
BY OR ON BEHALF OF A LOCAL GOVERNMENT PURSUANT TO THIS SECTION,
PROVIDED, HOWEVER, THAT THE TAX LEVY LIMIT SHALL NOT INCLUDE THE FOLLOW-
ING:
(I) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM COURT ORDERS
OR JUDGMENTS AGAINST THE LOCAL GOVERNMENT ARISING OUT OF TORT ACTIONS
FOR ANY AMOUNT THAT EXCEEDS FIVE PERCENT OF THE TOTAL TAX LEVIED IN THE
PRIOR FISCAL YEAR;
(II) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, AS DEFINED
BY PARAGRAPH TEN OF SUBDIVISION A OF SECTION NINETEEN-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, INCREASES BY MORE THAN TWO PERCENTAGE
POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY FOR EXPENDITURES FOR
THE COMING FISCAL YEAR FOR LOCAL GOVERNMENT EMPLOYER CONTRIBUTIONS TO
THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM CAUSED BY
GROWTH IN THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE MINUS TWO
PERCENTAGE POINTS;
(III) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM, AS
DEFINED BY PARAGRAPH ELEVEN OF SUBDIVISION A OF SECTION THREE HUNDRED
NINETEEN-A OF THE RETIREMENT AND SOCIAL SECURITY LAW, INCREASES BY MORE
THAN TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY
FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR LOCAL GOVERNMENT EMPLOY-
ER CONTRIBUTIONS TO THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIRE-
MENT SYSTEM CAUSED BY GROWTH IN THE SYSTEM AVERAGE ACTUARIAL CONTRIB-
UTION RATE MINUS TWO PERCENTAGE POINTS;
(IV) IN YEARS IN WHICH THE NORMAL CONTRIBUTION RATE OF THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM, AS DEFINED BY PARAGRAPH A OF SUBDIVI-
SION TWO OF SECTION FIVE HUNDRED SEVENTEEN OF THE EDUCATION LAW,
INCREASES BY MORE THAN TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A
TAX LEVY NECESSARY FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR LOCAL
GOVERNMENT EMPLOYER CONTRIBUTIONS TO THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM CAUSED BY GROWTH IN THE NORMAL CONTRIBUTION RATE MINUS
TWO PERCENTAGE POINTS;
(V) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM LOST TAX
REVENUES, EXCLUDING LOST PROPERTY TAX REVENUES, WHERE SUCH LOSS IS
CERTIFIED BY THE DEPARTMENT OF TAXATION;
(VI) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM EMERGENCIES,
ACTUAL OR ANTICIPATED, IMPACTING A GOVERNMENTAL ENTITY OR SCHOOL
A. 8332 3
DISTRICT WHERE THE FISCAL IMPACT OF THE EMERGENCY IS CERTIFIED BY THE
COMPTROLLER;
(VII) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM SCHOOL
DISTRICTS WHERE ENROLLMENT IS INCREASED BY A LEAST TWO PERCENT FROM THE
PRIOR FISCAL YEAR FOR THE FISCAL YEAR OF SUCH INCREASED ENROLLMENT;
(VIII) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM ENERGY
COST INCREASES WHICH ARE EQUAL TO OR EXCEED THREE TIMES THE TAX LEVY
LIMIT WHERE THE ENERGY COST INCREASES ARE CERTIFIED BY AN INDEPENDENT
AUDITOR;
(IX) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM UTILITY COST
INCREASES WHICH ARE EQUAL TO OR EXCEED THREE TIMES THE TAX LEVY LIMIT
WHERE THE UTILITY COST INCREASES ARE CERTIFIED BY AN INDEPENDENT AUDI-
TOR;
(X) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM COSTS FOR
HEALTH INSURANCE WHERE THE SCHOOL DISTRICT OR GOVERNMENTAL ENTITY
REQUIRES THE EMPLOYEE TO CONTRIBUTE AT LEAST TEN PERCENT OF THE HEALTH
PLAN COSTS AND WHERE THE EXPENDITURES ARE EQUAL TO OR EXCEED THREE TIMES
THE TAX LEVY LIMIT.
(H) "TAX" OR "TAXES" SHALL INCLUDE (I) A CHARGE IMPOSED UPON REAL
PROPERTY BY OR ON BEHALF OF A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL
DISTRICT FOR MUNICIPAL OR SCHOOL DISTRICT PURPOSES, AND (II) SPECIAL AD
VALOREM LEVIES AND SPECIAL ASSESSMENTS AS DEFINED IN SUBDIVISIONS FOUR-
TEEN AND FIFTEEN OF SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX
LAW.
3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION,
BEGINNING WITH THE FISCAL YEAR THAT BEGINS IN TWO THOUSAND TWELVE, NO
LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT IS
GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR. PROVIDED
HOWEVER THE TAX LEVY LIMIT SHALL NOT PROHIBIT A LEVY NECESSARY TO
SUPPORT THE EXPENDITURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF
PARAGRAPH (G) OF SUBDIVISION TWO OF THIS SECTION.
(B)(I) THE COMMISSIONER OF TAXATION AND FINANCE SHALL CALCULATE A
QUANTITY CHANGE FACTOR FOR EACH LOCAL GOVERNMENT FOR THE COMING FISCAL
YEAR BASED UPON THE PHYSICAL OR QUANTITY CHANGE, AS DEFINED BY SECTION
TWELVE HUNDRED TWENTY OF THE REAL PROPERTY TAX LAW, REPORTED TO THE
COMMISSIONER OF TAXATION AND FINANCE BY THE ASSESSOR OR ASSESSORS PURSU-
ANT TO SECTION FIVE HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY TAX LAW.
THE QUANTITY CHANGE FACTOR SHALL SHOW THE PERCENTAGE BY WHICH THE FULL
VALUE OF THE TAXABLE REAL PROPERTY IN THE LOCAL GOVERNMENT HAS CHANGED
DUE TO PHYSICAL 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 IMME-
DIATELY PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES
ARE TO BE LEVIED.
(II) AFTER DETERMINING THE QUANTITY CHANGE FACTOR FOR THE LOCAL
GOVERNMENT, THE COMMISSIONER OF TAXATION AND FINANCE SHALL PROCEED AS
FOLLOWS:
(A) IF THE QUANTITY CHANGE FACTOR IS NEGATIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL NOT DETERMINE A TAX BASE GROWTH FACTOR FOR
THE LOCAL GOVERNMENT.
(B) IF THE QUANTITY CHANGE FACTOR IS POSITIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL DETERMINE A TAX BASE GROWTH FACTOR FOR THE
LOCAL GOVERNMENT WHICH IS EQUAL TO ONE PLUS THE QUANTITY CHANGE FACTOR.
(III) THE COMMISSIONER OF TAXATION AND FINANCE SHALL NOTIFY THE STATE
COMPTROLLER AND EACH LOCAL GOVERNMENT OF THE APPLICABLE TAX BASE GROWTH
FACTORS, IF ANY, AS SOON THEREAFTER AS SUCH FACTORS ARE DETERMINED.
A. 8332 4
(C) EACH LOCAL GOVERNMENT SHALL CALCULATE THE TAX LEVY LIMIT APPLICA-
BLE TO THE COMING FISCAL YEAR WHICH SHALL BE DETERMINED AS FOLLOWS:
(I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
(II) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, CALCULATED
PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, IF ANY.
(III) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR FISCAL YEAR.
(IV) SUBTRACT THE TAX LEVY NECESSARY TO SUPPORT EXPENDITURES PURSUANT
TO SUBPARAGRAPH (I) OF PARAGRAPH (G) OF SUBDIVISION TWO OF THIS SECTION
FOR THE PRIOR FISCAL YEAR, IF ANY.
(V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
(VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
(D) WHENEVER THE RESPONSIBILITY AND ASSOCIATED COST OF A LOCAL GOVERN-
MENT FUNCTION IS TRANSFERRED TO ANOTHER LOCAL GOVERNMENT, THE STATE
COMPTROLLER SHALL DETERMINE THE COSTS AND SAVINGS ON THE AFFECTED LOCAL
GOVERNMENTS ATTRIBUTABLE TO SUCH TRANSFER FOR THE FIRST FISCAL YEAR
FOLLOWING THE TRANSFER, AND NOTIFY SUCH LOCAL GOVERNMENTS OF SUCH DETER-
MINATION AND THAT THEY SHALL ADJUST THEIR TAX LEVY LIMITS ACCORDINGLY.
4. (A) WHEN TWO OR MORE LOCAL GOVERNMENTS CONSOLIDATE, THE STATE COMP-
TROLLER SHALL DETERMINE THE TAX LEVY LIMIT FOR THE CONSOLIDATED LOCAL
GOVERNMENT FOR THE FIRST FISCAL YEAR FOLLOWING THE CONSOLIDATION BASED
ON THE RESPECTIVE TAX LEVY LIMITS OF THE COMPONENT LOCAL GOVERNMENTS
THAT FORMED SUCH CONSOLIDATED LOCAL GOVERNMENT FROM THE LAST FISCAL YEAR
PRIOR TO THE CONSOLIDATION.
(B) WHEN A LOCAL GOVERNMENT DISSOLVES, THE STATE COMPTROLLER SHALL
DETERMINE THE TAX LEVY LIMIT FOR THE LOCAL GOVERNMENT THAT ASSUMES THE
DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH DISSOLVED LOCAL GOVERNMENT
FOR THE FIRST FISCAL YEAR FOLLOWING THE DISSOLUTION BASED ON THE RESPEC-
TIVE TAX LEVY LIMITS OF SUCH DISSOLVED LOCAL GOVERNMENT AND SUCH LOCAL
GOVERNMENT THAT ASSUMES THE DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH
DISSOLVED LOCAL GOVERNMENT FROM THE LAST FISCAL YEAR PRIOR TO THE
DISSOLUTION.
(C) THE TAX LEVY LIMIT ESTABLISHED BY THIS SECTION SHALL NOT APPLY TO
THE FIRST FISCAL YEAR AFTER A LOCAL GOVERNMENT IS NEWLY ESTABLISHED OR
CONSTITUTED THROUGH A PROCESS OTHER THAN CONSOLIDATION OR DISSOLUTION.
5. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMIT FOR THE COMING FISCAL YEAR, NOT
INCLUDING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT TO
SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH G OF SUBDIVISION TWO OF THIS
SECTION, ONLY IF THE GOVERNING BODY OF SUCH LOCAL GOVERNMENT FIRST
ENACTS, BY A VOTE OF SIXTY PERCENT OF THE TOTAL VOTING POWER OF SUCH
BODY, A LOCAL LAW TO OVERRIDE SUCH LIMIT FOR SUCH COMING FISCAL YEAR
ONLY, OR IN THE CASE OF A DISTRICT OR FIRE DISTRICT, A RESOLUTION,
APPROVED BY A VOTE OF SIXTY PERCENT OF THE TOTAL VOTING POWER OF SUCH
BODY, TO OVERRIDE SUCH LIMIT FOR SUCH COMING FISCAL YEAR ONLY.
6. IN THE EVENT A LOCAL GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
FISCAL YEAR EXCEEDS THE TAX LEVY LIMIT AS ESTABLISHED PURSUANT TO THIS
SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERNMENT 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 FISCAL YEAR. IF, UPON EXAMINATION PURSUANT TO SECTIONS THIRTY-
THREE AND THIRTY-FOUR OF THIS CHAPTER, THE STATE COMPTROLLER FINDS THAT
A. 8332 5
A LOCAL GOVERNMENT LEVIED TAXES IN EXCESS OF THE APPLICABLE TAX LEVY
LIMIT, THE LOCAL GOVERNMENT, AS SOON AS PRACTICABLE, SHALL PLACE AN
AMOUNT EQUAL TO THE EXCESS AMOUNT OF THE LEVY IN SUCH RESERVE IN ACCORD-
ANCE WITH THIS SUBDIVISION.
7. ALL LOCAL GOVERNMENTS SUBJECT TO THE PROVISIONS OF THIS SECTION
SHALL, PRIOR TO ADOPTING A BUDGET FOR THE COMING FISCAL YEAR, SUBMIT TO
THE STATE COMPTROLLER, IN A FORM AND MANNER AS HE OR SHE MAY PRESCRIBE,
ANY INFORMATION NECESSARY FOR CALCULATING THE TAX LEVY LIMIT FOR THE
COMING FISCAL YEAR.
S 2. The education law is amended by adding a new section 2023-a to
read as follows:
S 2023-A. 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 LIMIT ESTABLISHED PURSUANT TO THIS
SECTION, NOT INCLUDING ANY TAX LEVY NECESSARY TO SUPPORT THE EXPENDI-
TURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF
SUBDIVISION TWO OF THIS SECTION.
2. DEFINITIONS. AS USED IN THIS SECTION:
A. "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
THAN ONE.
B. "AVAILABLE CARRYOVER" MEANS THE AMOUNT BY WHICH THE TAX LEVY FOR
THE PRIOR SCHOOL YEAR WAS BELOW THE APPLICABLE TAX LEVY LIMIT FOR SUCH
SCHOOL YEAR, IF ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND
ONE-HALF PERCENT OF THE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR.
C. "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH BUDG-
ETED EXPENDITURES RESULTING FROM THE FINANCING, REFINANCING, ACQUISI-
TION, DESIGN, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, IMPROVEMENT,
FURNISHING AND EQUIPPING OF, OR OTHERWISE PROVIDING FOR SCHOOL DISTRICT
CAPITAL FACILITIES OR SCHOOL DISTRICT CAPITAL EQUIPMENT, INCLUDING DEBT
SERVICE AND LEASE EXPENDITURES, AND TRANSPORTATION CAPITAL DEBT SERVICE,
SUBJECT TO THE APPROVAL OF THE QUALIFIED VOTERS WHERE REQUIRED BY LAW.
D. "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
LOCAL EXPENDITURES, IF ANY.
E. "COMING SCHOOL YEAR" MEANS THE SCHOOL YEAR FOR WHICH TAX LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.
F. "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.
G. "PRIOR SCHOOL YEAR" MEANS THE SCHOOL YEAR IMMEDIATELY PRECEDING THE
COMING SCHOOL YEAR.
H. "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.
A. 8332 6
I. "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 FOLLOWING:
(I) A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM COURT ORDERS
OR JUDGMENTS AGAINST THE SCHOOL DISTRICT ARISING OUT OF TORT ACTIONS FOR
ANY AMOUNT THAT EXCEEDS FIVE PERCENT OF THE TOTAL TAX LEVIED IN THE
PRIOR SCHOOL YEAR;
(II) IN YEARS IN WHICH THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, AS DEFINED
BY PARAGRAPH TEN OF SUBDIVISION A OF SECTION NINETEEN-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, INCREASES BY MORE THAN TWO PERCENTAGE
POINTS FROM THE PREVIOUS YEAR, A TAX LEVY NECESSARY FOR EXPENDITURES FOR
THE COMING FISCAL YEAR FOR SCHOOL DISTRICT EMPLOYER CONTRIBUTIONS TO THE
NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM CAUSED BY GROWTH
IN THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE MINUS TWO PERCENTAGE
POINTS;
(III) IN YEARS IN WHICH THE NORMAL CONTRIBUTION RATE OF THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM, AS DEFINED BY PARAGRAPH A OF SUBDIVI-
SION TWO OF SECTION FIVE HUNDRED SEVENTEEN OF THIS CHAPTER, INCREASES BY
MORE THAN TWO PERCENTAGE POINTS FROM THE PREVIOUS YEAR, A TAX LEVY
NECESSARY FOR EXPENDITURES FOR THE COMING FISCAL YEAR FOR SCHOOL
DISTRICT EMPLOYER CONTRIBUTIONS TO THE NEW YORK STATE TEACHERS' RETIRE-
MENT SYSTEM CAUSED BY GROWTH IN THE NORMAL CONTRIBUTION RATE MINUS TWO
PERCENTAGE POINTS; AND
(IV) A CAPITAL TAX LEVY.
2-A. TAX BASE GROWTH FACTOR. A. NO LATER THAN FEBRUARY FIFTEENTH OF
EACH YEAR, THE COMMISSIONER OF TAXATION AND FINANCE 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 THE TAX
BASE GROWTH FACTORS SO DETERMINED, IF ANY.
B. THE COMMISSIONER OF TAXATION AND FINANCE SHALL CALCULATE A QUANTITY
CHANGE FACTOR FOR THE COMING SCHOOL YEAR FOR EACH SCHOOL DISTRICT BASED
UPON THE PHYSICAL OR QUANTITY CHANGE, AS DEFINED BY SECTION TWELVE
HUNDRED TWENTY OF THE REAL PROPERTY TAX LAW, REPORTED TO THE COMMISSION-
ER OF TAXATION AND FINANCE BY THE ASSESSOR OR ASSESSORS PURSUANT TO
SECTION FIVE HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY TAX LAW. 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 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 PRECED-
ING 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 COMMISSIONER OF TAXATION AND FINANCE SHALL PROCEED AS FOLLOWS:
(I) IF THE QUANTITY CHANGE FACTOR IS NEGATIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL NOT DETERMINE A TAX BASE GROWTH FACTOR FOR
THE SCHOOL DISTRICT.
(II) IF THE QUANTITY CHANGE FACTOR IS POSITIVE, THE COMMISSIONER OF
TAXATION AND FINANCE SHALL DETERMINE A TAX BASE GROWTH FACTOR FOR THE
SCHOOL DISTRICT WHICH IS EQUAL TO ONE PLUS THE QUANTITY CHANGE FACTOR.
3. COMPUTATION OF TAX LEVY LIMITS. A. EACH SCHOOL DISTRICT SHALL
CALCULATE THE TAX LEVY LIMIT FOR EACH SCHOOL YEAR WHICH SHALL BE DETER-
MINED AS FOLLOWS:
(1) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL
YEAR.
A. 8332 7
(2) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, IF ANY.
(3) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR SCHOOL YEAR.
(4) SUBTRACT THE TAX LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSU-
ANT TO SUBPARAGRAPHS (I) AND (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
THIS SECTION FOR THE PRIOR SCHOOL YEAR, IF ANY.
(5) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(6) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
(7) ADD THE AVAILABLE CARRYOVER, IF ANY.
B. ON OR BEFORE MARCH FIRST OF EACH YEAR, ANY SCHOOL DISTRICT SUBJECT
TO THE PROVISIONS OF THIS SECTION SHALL SUBMIT TO THE STATE COMPTROLLER,
THE COMMISSIONER, AND THE COMMISSIONER OF TAXATION AND FINANCE, IN A
FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER, ANY INFORMATION
NECESSARY FOR THE CALCULATION OF THE TAX LEVY LIMIT; AND THE SCHOOL
DISTRICT'S DETERMINATION OF THE TAX LEVY LIMIT PURSUANT TO THIS SECTION
SHALL BE SUBJECT TO REVIEW BY THE COMMISSIONER AND THE COMMISSIONER OF
TAXATION AND FINANCE.
4. REORGANIZED SCHOOL DISTRICTS. WHEN TWO OR MORE SCHOOL DISTRICTS
REORGANIZE, THE COMMISSIONER SHALL DETERMINE THE TAX LEVY LIMIT FOR THE
REORGANIZED SCHOOL DISTRICT FOR THE FIRST SCHOOL YEAR FOLLOWING THE
REORGANIZATION 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.
5. 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 THIS SECTION 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.
6. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN
THE EVENT THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION OF A SCHOOL
DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF THIS SECTION PROPOSES A
BUDGET THAT WILL REQUIRE A TAX LEVY THAT EXCEEDS THE TAX LEVY LIMIT FOR
THE CORRESPONDING SCHOOL YEAR, NOT INCLUDING ANY LEVY NECESSARY TO
SUPPORT THE EXPENDITURES PURSUANT TO SUBPARAGRAPHS (I) THROUGH (IV) OF
PARAGRAPH I OF SUBDIVISION TWO OF THIS SECTION, THEN SUCH BUDGET SHALL
BE APPROVED IF SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIR-
MATIVE.
(B) WHERE THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION PROPOSES A BUDG-
ET SUBJECT TO THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION, THE
BALLOT FOR SUCH BUDGET SHALL INCLUDE THE FOLLOWING STATEMENT IN SUBSTAN-
TIALLY THE SAME FORM: "ADOPTION OF THIS BUDGET REQUIRES A TAX LEVY
INCREASE OF WHICH EXCEEDS THE STATUTORY TAX LEVY INCREASE LIMIT
OF FOR THIS SCHOOL FISCAL YEAR AND THEREFORE EXCEEDS THE STATE TAX
CAP AND MUST BE APPROVED BY SIXTY PERCENT OF THE QUALIFIED VOTERS PRES-
ENT AND VOTING."
7. 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 EIGHT OF THIS SECTION OR RESUBMIT
TO THE VOTERS THE ORIGINAL OR A REVISED BUDGET AT A SPECIAL DISTRICT
A. 8332 8
MEETING IN ACCORDANCE WITH SUBDIVISION THREE OF SECTION TWO THOUSAND
SEVEN OF THIS PART. UPON ONE DEFEAT OF SUCH RESUBMITTED BUDGET, THE
SOLE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT A FINAL BUDGET
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION.
8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IF THE
QUALIFIED VOTERS FAIL TO APPROVE THE PROPOSED SCHOOL DISTRICT BUDGET
UPON RESUBMISSION OR UPON A DETERMINATION NOT TO RESUBMIT FOR A SECOND
VOTE PURSUANT TO SUBDIVISION SEVEN OF THIS SECTION, THE SOLE TRUSTEE,
TRUSTEES OR BOARD OF EDUCATION SHALL LEVY A TAX NO GREATER THAN THE TAX
THAT WAS LEVIED FOR THE PRIOR SCHOOL YEAR.
9. NOTHING IN THIS SECTION SHALL PRECLUDE THE TRUSTEE, TRUSTEES, OR
BOARD OF EDUCATION OF A SCHOOL DISTRICT, IN THEIR DISCRETION, FROM
SUBMITTING ADDITIONAL ITEMS OF EXPENDITURES TO THE VOTERS FOR APPROVAL
AS SEPARATE PROPOSITIONS OR THE VOTERS FROM SUBMITTING PROPOSITIONS
PURSUANT TO SECTIONS TWO THOUSAND EIGHT AND TWO THOUSAND THIRTY-FIVE OF
THIS PART; PROVIDED HOWEVER, EXCEPT IN THE CASE OF A PROPOSITION SUBMIT-
TED FOR ANY EXPENDITURE CONTAINED WITHIN SUBPARAGRAPHS (I) THROUGH (IV)
OF PARAGRAPH I OF SUBDIVISION TWO OF THIS SECTION, IF ANY PROPOSITION,
OR PROPOSITIONS COLLECTIVELY THAT ARE SUBJECT TO A VOTE ON THE SAME
DATE, WOULD REQUIRE AN EXPENDITURE OF MONEY THAT WOULD REQUIRE A TAX
LEVY AND WOULD RESULT IN THE TAX LEVY LIMIT BEING EXCEEDED FOR THE
CORRESPONDING SCHOOL YEAR THEN SUCH PROPOSITION SHALL BE APPROVED IF
SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE.
S 3. Section 2023 of the education law, as amended by section 24 of
part A of chapter 436 of the laws of 1997, subdivision 1 as amended by
chapter 682 of the laws of 2002, subparagraphs (v) and (vi) of paragraph
b of subdivision 4 as separately amended by section 1 of part D-2 of
chapter 57 of the laws of 2007 and chapter 422 of the laws of 2007,
subparagraph (vii) of paragraph b of subdivision 4 as added by section 1
of part D-2 of chapter 57 of the laws of 2007, subparagraph (vii) of
paragraph b of subdivision 4 as added by chapter 422 of the laws of 2007
and paragraph b-1 of subdivision 4 as amended by section 5 of part B of
chapter 57 of the laws of 2008, is amended to read as follows:
S 2023. Levy of tax for certain purposes without vote; contingency
budget. 1. If the qualified voters shall neglect or refuse to vote the
sum estimated necessary for teachers' salaries, after applying thereto
the public school moneys, and other moneys received or to be received
for that purpose, or if they shall neglect or refuse to vote the sum
estimated necessary for ordinary contingent expenses, including the
purchase of library books and other instructional materials associated
with a library and expenses incurred for interschool athletics, field
trips and other extracurricular activities and the expenses for cafete-
ria or restaurant services, the sole trustee, board of trustees, or
board of education shall adopt a contingency budget including such
expenses and shall levy a tax, SUBJECT TO THE RESTRICTIONS AS SET FORTH
IN SUBDIVISION FOUR OF THIS SECTION AND SUBDIVISION EIGHT OF SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS PART, for the same, in like manner as if
the same had been voted by the qualified voters, subject to the limita-
tions contained in subdivisions three and four of this section.
2. Notwithstanding the defeat of a school budget, school districts
shall continue to transport students to and from the regular school
program in accordance with the mileage limitations previously adopted by
the qualified voters of the school district. Such mileage limits shall
change only when amended by a special proposition passed by a majority
of the qualified voters of the school district. In cases where the
school budget is defeated by such qualified voters of the school
A. 8332 9
district, appropriations for transportation costs for purposes other
than for transportation to and from the regular school program, and
transportation that would constitute an ordinary contingent expense
pursuant to subdivision one of this section, shall be authorized in the
budget only after approval by the qualified voters of the district.
3. The administrative component of a contingency budget 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.
4. a. The contingency budget shall not result in a [percentage
increase in total spending over the district's total spending under the
school district budget for the prior school year that exceeds the lesser
of: (i) the result obtained when one hundred twenty percent is multi-
plied by the percentage increase in the consumer price index, with the
result rounded to two decimal places; or (ii) four percent.
b. The following types of expenditures shall be disregarded in deter-
mining total spending:
(i) expenditures resulting from a tax certiorari proceeding;
(ii) expenditures resulting from a court order or judgment against the
school district;
(iii) emergency expenditures that are certified by the commissioner as
necessary as a result of damage to, or destruction of, a school building
or school equipment;
(iv) capital expenditures resulting from the construction, acquisi-
tion, reconstruction, rehabilitation or improvement of school facili-
ties, including debt service and lease expenditures, subject to the
approval of the qualified voters where required by law;
(v) expenditures in the contingency budget attributable to projected
increases in public school enrollment, which, for the purpose of this
subdivision, may include increases attributable to the enrollment of
students attending a pre-kindergarten program established in accordance
with section thirty-six hundred two-e of this chapter, to be computed
based upon an increase in enrollment from the year prior to the base
year for which the budget is being adopted to the base year for which
the budget is being adopted, provided that where the trustees or board
of education have documented evidence that a further increase in enroll-
ment will occur during the school year for which the contingency budget
is prepared because of new construction, inception of a pre-kindergarten
program, growth or similar factors, the expenditures attributable to
such additional enrollment may also be disregarded;
(vi) non-recurring expenditures in the prior year's school district
budget; and
(vii) expenditures for payments to charter schools pursuant to section
twenty-eight hundred fifty-six of this chapter.
(vii) expenditures for self-supporting programs. For purposes of this
subparagraph, "self-supporting programs" shall mean any programs that
are entirely funded by private funds that cover all the costs of the
program.
b-1. Notwithstanding any other provision of this subdivision to the
contrary, in the event a state grant in aid provided to the district in
the prior year is eliminated and incorporated into a non-categorical
general state aid in the current school year, the amount of such grant
may be included in the computation of total spending for the prior
A. 8332 10
school year, provided that the commissioner has verified that the grant
in aid has been incorporated into such non-categorical general state
aid] TAX LEVY GREATER THAN THE TAX LEVIED FOR THE PRIOR SCHOOL YEAR.
[c.] B. The resolution of the trustee, board of trustees, or board of
education adopting a contingency budget shall incorporate by reference a
statement specifying the projected percentage increase or decrease in
total spending for the school year, and explaining the reasons for
disregarding any portion of an increase in spending in formulating the
contingency budget.
[d.] C. Notwithstanding any other provision of law to the contrary,
the trustees or board of education shall not be authorized to amend or
revise a final contingency budget where such amendment or revision would
result in total spending in excess of the spending limitation in para-
graph (a) of this subdivision; provided that the trustees or board of
education shall be authorized to add appropriations for[:
(i) the categories of expenditures excluded from the spending limita-
tions set forth in paragraph (b) of this subdivision, subject to
approval of the qualified voters where required by law;
(ii) expenditures resulting from an actual increase in enrollment over
the projected enrollment used to develop the contingency budget,
provided that where such actual enrollment is less than such projected
enrollment, it shall be the duty of the trustees or board of education
to use such excess funds to reduce taxes; and
(iii)] the expenditure of gifts, grants in aid for specific purposes
or for general use or insurance proceeds authorized pursuant to subdivi-
sion two of [sudivision] SECTION seventeen hundred eighteen of this
chapter in addition to that which has been previously budgeted.
[e. For the purposes of this subdivision:
(i) "Base school year" shall mean the school year immediately preced-
ing the school year for which the contingency budget is prepared.
(ii) "Consumer price index" shall mean the percentage that represents
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 current year.
(iii) "Current year" shall mean the calendar year in which the school
district budget is submitted for a vote of the qualified voters.
(iv) "Resident public school district enrollment shall mean the resi-
dent public school enrollment of the school district as defined in para-
graph n of subdivision one of section thirty-six hundred two of this
chapter.
(v) "Total spending" shall mean the total amount appropriated under
the school district budget for the school year.]
S 4. 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
A. 8332 11
levy from the school district budget for the preceding school year; and
(ii) THE DISTRICT'S TAX LEVY LIMIT DETERMINED PURSUANT TO SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS TITLE, AND THE ESTIMATED SCHOOL TAX
LEVY, EXCLUDING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT
TO SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE, THAT WOULD RESULT
FROM ADOPTION OF THE PROPOSED BUDGET; 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 para-
graph 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 unappropriated unreserved fund balance
represents.
S 5. Paragraph a of subdivision 7 of section 1716 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 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, 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 DETERMINED PURSUANT TO SECTION TWO THOUSAND
TWENTY-THREE-A OF THIS TITLE, AND THE ESTIMATED SCHOOL TAX LEVY, EXCLUD-
ING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT TO SUBPARA-
GRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS TITLE, THAT WOULD RESULT FROM ADOPTION
OF THE PROPOSED BUDGET; 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 unap-
propriated 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.
S 6. Section 2008 of the education law is amended by adding a new
subdivision 3 to read as follows:
A. 8332 12
3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY
PROPOSITION SUBMITTED BY THE VOTERS THAT REQUIRES THE EXPENDITURE OF
MONEY SHALL BE SUBJECT TO THE REQUIREMENTS SET FORTH IN SUBDIVISION NINE
OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
S 7. 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-
vision 2-a as amended by section 3 of part A of chapter 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:
S 2022. Vote on school district budgets and on the election of school
district trustees and board of education members. 1. Notwithstanding any
law, rule or regulation to the contrary, the election of trustees or
members of the board of education, and the 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 attending, a majority of the qualified voters pres-
ent and voting, by a hand or voice vote, may determine to take up the
question of voting the necessary funds to meet the estimated expendi-
tures for a specific item separately, 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 contin-
gent 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.
2. Except as provided in subdivision four of this section, nothing in
this section shall preclude the trustees or board of education, in their
discretion, from submitting additional items of expenditure to the
voters for approval as separate propositions or the voters from submit-
ting propositions pursuant to [section] SECTIONS two thousand eight and
two thousand thirty-five of this [article] PART; PROVIDED HOWEVER THAT
SUCH PROPOSITIONS SHALL BE SUBJECT TO THE REQUIREMENTS SET FORTH IN
SUBDIVISION NINE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS 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
A. 8332 13
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-
et vote, in the same manner as in the notice of annual meeting, AND
SHALL ALSO INCLUDE THE DISTRICT'S TAX LEVY LIMIT PURSUANT TO SECTION TWO
THOUSAND TWENTY-THREE-A OF THIS PART, AND THE ESTIMATED SCHOOL TAX LEVY,
EXCLUDING ANY LEVY NECESSARY TO SUPPORT THE EXPENDITURES PURSUANT TO
SUBPARAGRAPHS (I) THROUGH (IV) OF PARAGRAPH I OF SUBDIVISION TWO OF
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, THAT WOULD RESULT FROM
ADOPTION OF THE PROPOSED BUDGET. 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 commissioner, in
consultation with the office of real property services.
3. In all elections for trustees or members of boards of education or
votes involving the expenditure of money, or authorizing the levy of
taxes, the vote thereon shall be by ballot, or, in school districts that
prior to nineteen hundred ninety-eight conducted their vote at the annu-
al meeting, may be ascertained by taking and recording the ayes and noes
of such qualified voters attending and voting at such district meetings.
4. THE BUDGET ADOPTION PROCESS SHALL CONFORM TO THE REQUIREMENTS SET
FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. 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 resub-
mitted budget, the sole trustee, trustees or board of education 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
A. 8332 14
provisions of this subdivision and [section] SECTIONS two thousand twen-
ty-three AND TWO THOUSAND TWENTY-THREE-A 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-
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 8. Section 2035 of the education law is amended by adding a new
subdivision 3 to read as follows:
3. ANY PROPOSITION SUBMITTED PURSUANT TO THIS SECTION SHALL BE SUBJECT
TO THE REQUIREMENTS SET FORTH IN SUBDIVISION NINE OF SECTION TWO THOU-
SAND TWENTY-THREE-A OF THIS PART.
S 9. Section 2601-a of the education law, as added by chapter 171 of
the laws of 1996, subdivision 2 as amended by section 6 and subdivision
4 as amended by section 8 of part M of chapter 57 of the laws of 2005,
subdivision 3 as amended by chapter 640 of the laws of 2008, 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 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 pursuant to the provisions of this section AND IN
ACCORDANCE WITH THE REQUIREMENTS SET FORTH IN SECTION TWO THOUSAND TWEN-
TY-THREE-A OF THIS TITLE.
2. The board of education shall conduct all annual and special school
district meetings for the purpose of adopting a school district budget
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 observances, and any school budg-
A. 8332 15
et 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 applicable 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 nomi-
nation 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. 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 expendi-
tures. 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 admin-
istrative 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 administra-
tors, superintendents of schools and deputy, assistant, associate or
other superintendents under all existing employment contracts or collec-
tive bargaining agreements, any and all expenditures associated with the
operation of the board of education, 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 salaries and benefits of teachers and
any school administrators or supervisors 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 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, 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 expenditures associated with custodial sala-
ries and benefits, service contracts, supplies, utilities, and mainte-
nance and repairs of school facilities. For the purposes of the develop-
ment of a budget for the nineteen hundred ninety-seven--ninety-eight
school year, the board of education shall separate 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 of
this section, nothing in this section shall preclude the board, in its
discretion, from submitting additional items of expenditure to the
A. 8332 16
voters for approval as separate propositions or the voters from submit-
ting propositions pursuant to sections two thousand eight and two thou-
sand thirty-five of this chapter SUBJECT TO THE REQUIREMENTS SET FORTH
IN SUBDIVISION NINE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
4. THE BUDGET ADOPTION PROCESS SHALL CONFORM TO THE REQUIREMENTS SET
FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE. In the event
the qualified voters of the district reject the budget 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. 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. 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, SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWENTY-THREE-A OF
THIS TITLE 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
A. 8332 17
health and safety of students and staff, including, but not limited to,
support services, pupil personnel services, the necessary salaries for
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 10. Paragraph b-1 of subdivision 4 of section 3602 of the education
law, as amended by section 26 of part A of chapter 58 of the laws of
2011, is amended to read as follows:
b-1. Notwithstanding any other provision of law to the contrary, for
the two thousand seven--two thousand eight [through] school year and
thereafter, the additional amount payable to each school district pursu-
ant to this subdivision in the current year as total foundation aid,
after deducting the total foundation aid base, shall be deemed a state
grant in aid identified by the commissioner for general use for purposes
of [sections] SECTION seventeen hundred eighteen [and two thousand twen-
ty-three] of this chapter.
S 11. Paragraph a of subdivision 1 of section 3635 of the education
law, as amended by chapter 69 of the laws of 1992, is amended to read as
follows:
A. 8332 18
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. Transporta-
tion 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.
S 12. Nothing contained in this act shall impair or invalidate the
powers or duties, as authorized by law, of a control board, interim
finance authority or fiscal stability authority including such powers or
duties that may require the tax levy limit, as that term is defined in
section one or section two of this act, to be exceeded.
S 13. This act shall take effect immediately; provided, however, that
sections two through eleven of this act shall take effect July 1, 2011
and shall first apply to school district budgets and the budget adoption
process for the 2012-13 school year; provided further, that if part A of
chapter 58 of the laws of 2011 shall not have taken effect on or before
such date then section ten of this act shall take effect on the same
date and in the same manner as such chapter of the laws of 2011, takes
effect; provided further, that section one of this act shall first apply
to the levy of taxes by local governments for the fiscal year that
begins in 2012; and provided further, that this act shall remain in full
force and effect only so long as the public emergency requiring the
regulation and control of residential rents and evictions and all such
laws providing for such regulation and control continue as provided in
subdivision 3 of section 1 of the local emergency rent control act,
sections 26-501, 26-502 and 26-520 of the administrative code of the
city of New York, section 17 of chapter 576 of the laws of 1974 and
subdivision 2 of section 1 of chapter 274 of the laws of 1946 constitut-
ing the emergency housing rent control law, and section 10 of chapter
555 of the laws of 1982, amending the general business law and the
administrative code of the city of New York relating to conversions of
residential property to cooperative or condominium ownership in the
city of New York, as such sections are amended from time to time.