S T A T E   O F   N E W   Y O R K
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                                  8332

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 13, 2011
                               ___________

Introduced  by M. of A. SCHIMEL -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the general municipal law  and  the  education  law,  in
  relation to establishing limits upon school district and local govern-
  ment tax levies

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

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 3-c to read as follows:
  S  3-C.  LIMIT UPON REAL PROPERTY TAX LEVIES BY LOCAL GOVERNMENTS.  1.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF REAL PROPERTY TAXES THAT
MAY BE LEVIED BY OR ON BEHALF OF ANY LOCAL GOVERNMENT,  OTHER  THAN  THE
CITY  OF  NEW  YORK AND THE COUNTIES CONTAINED THEREIN, SHALL NOT EXCEED
THE TAX LEVY LIMIT ESTABLISHED PURSUANT TO THIS SECTION.
  2. WHEN 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 FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR,
IF  ANY, BUT NO MORE THAN AN AMOUNT THAT EQUALS ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
  (C) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR WHICH A TAX LEVY LIMIT SHALL BE DETERMINED PURSUANT TO THIS SECTION.
  (D) "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 ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL  YEAR  MINUS  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11946-01-1
              

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.

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  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-

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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.