Senate Bill S7164

2011-2012 Legislative Session

Provides that actual valuation, for state school aid purposes, shall be based on the calendar in which the base year commenced

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Archive: Last Bill Status - In Senate Committee Education Committee

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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 01, 2012	referred to education

2011-S7164 (ACTIVE) - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §3602, Ed L

2011-S7164 (ACTIVE) - Summary

Provides that actual valuation, for state school aid purposes, shall be based on the calendar in which the base year commenced; provides that the gap elimination adjustment shall be determined on the basis of the 2010 federal census.

2011-S7164 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7164

TITLE OF BILL:
An act
to amend the education law, in relation to actual valuation for state
education aid purposes and the gap elimination adjustment

SUMMARY OF SPECIFIC PROVISIONS:
Section one amends paragraph c of subdivision 1 of section 3602 of the
Education law to require that the valuation of taxable real property
in a school district obtained by taking the assessed valuation of
taxable real property within such district as it appears upon the
assessment roll of the town, city, village, or county in which such
property is located, for the calendar year immediately preceding the
calendar year in which the base year commenced be used.

Section 2 amends subitems (b), (c), (d) and (e) of item 1 of clause
(G) of subparagraph (viii) of
paragraph  b of subdivision 17 of section 3602 of
the education law to require the use of the two thousand ten
federal census.

Section 3 states the enactment date.

JUSTIFICATION:
Technology has progressed significantly in the past twenty years. With

these advances has come the ability to compile and use data almost in
real time.

Unfortunately, the current school aid formula is inconsistent in that
it relies upon stale data. Local tax levy changes from year to year
are based on the changes in local property values. Yet, the state aid
formula to determine state school aid, particularly the "GEA" (gap
elimination adjustment) uses census data that is over twelve years
old as a component of the formula.

In fact, most state school aid formulas, including the GEA, the
foundation aid formula, and cost-driven aids, use property value data
that is over three years old in calculating aid that is then used by
schools four to five years later.

For example, the enacted state school aid formula for the 2012-13
school year uses a GEA based on the year 2000 federal census, and
projected operating and foundation aid formulas for schools are based
on 2009 calendar year property value data. Therefore, schools are
being funded based on their school need and demographics as measured
in 2000 and 2009 which, by January 2013, is a gap of 13 years and 5
years, respectively.

This significant lag in data causes a disconnect between state school
aid, which uses outdated property values and very old census data and

the funding schools are authorized to raise from a local share of
aid. This makes it difficult for schools to accurately determine both
their funding needs and the amount of aid they can expect to receive,
especially in the face of a fluctuating and weak economy.

In this age where real-time data sharing is simple to do through
internet and other electronic means, the formula to determine state
school aid funding should use data from the same base year as the
year school districts use to determine the local share of funding.

By implementing this legislation, schools will receive state school
aid consistent with the most current data available. It will enable
schools to meet their fiscal obligations and needs based on school
aid driven by data from the most recent preceding year instead of
from three or more years prior. Additionally, rather than being based
on data more than a decade old, GEA formulas would be based on the
most recent census data.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Undetermined.

EFFECTIVE DATE:
This act shall take effect on July 1, 2012.

2011-S7164 (ACTIVE) - Bill Text download pdf

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

                                  7164

                            I N  S E N A T E

                               May 1, 2012
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Education

AN ACT to amend the education law, in relation to actual  valuation  for
  state education aid purposes and the gap elimination adjustment

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

  Section 1. Paragraph c of subdivision 1 of section 3602 of the  educa-
tion  law,  as amended by section 11 of part B of chapter 57 of the laws
of 2007, is amended to read as follows:
  c. "Actual valuation" shall mean the valuation of taxable real proper-
ty in a school district obtained by taking  the  assessed  valuation  of
taxable  real  property  within  such  district  as  it appears upon the
assessment roll of the town, city, village,  or  county  in  which  such
property  is  located,  for  the  calendar  year [two years prior to the
calendar year] in which the  base  year  commenced,  after  revision  as
provided  by  law,  and  dividing  it  by the state equalization rate as
determined by the state board of equalization and  assessment,  for  the
assessment  roll of such town, city, village, or county completed during
such preceding calendar year. The actual valuation  of  a  central  high
school  district  shall  be  the sum of such valuations of its component
districts. Such actual valuation  shall  include  any  actual  valuation
equivalent  of  payments in lieu of taxes determined pursuant to section
four hundred eighty-five of the real property tax law. "Selected  actual
valuation"  shall mean the lesser of actual valuation calculated for aid
payable in the current year or the two-year average of the actual  valu-
ation  calculated  for  aid  payable  in the current year and the actual
valuation calculated for aid payable in the base year.
  S 2. Subitems (b), (c), (d) and (e) of item 1 of clause (G) of subpar-
agraph (viii) of paragraph b of subdivision 17 of section  3602  of  the
education  law,  as  added  by section 37 of part A of chapter 58 of the
laws of 2011, are amended to read as follows:
  (b) in the case of a city school district in a city with a  population
of  more  than  two hundred fifty thousand inhabitants and less than one

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15566-01-2

S. 7164                             2

million inhabitants according to the two thousand  TEN  federal  census,
four and one-tenth percent (0.041),
  (c)  in the case of a city school district in a city with a population
of more than two hundred ten thousand  inhabitants  and  less  than  two
hundred  fifty  thousand  inhabitants  according to the two thousand TEN
federal census, four and thirteen hundredths percent (0.0413),
  (d) in the case of a city school district in a city with a  population
of  more than one hundred seventy thousand inhabitants and less than two
hundred ten thousand inhabitants  according  to  the  two  thousand  TEN
federal census, five and ninety-seven hundredths percent (0.0597),
  (e)  in the case of a city school district in a city with a population
of more than one hundred thousand inhabitants and less than one  hundred
seventy  thousand  inhabitants according to the two thousand TEN federal
census, five and fifty-three hundredths percent (0.0553),
  S 3. This act shall take effect July 1, 2012.

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Senate Bill S7164

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Archive: Last Bill Status - In Senate Committee Education Committee

Actions

2011-S7164 (ACTIVE) - Details

2011-S7164 (ACTIVE) - Summary

2011-S7164 (ACTIVE) - Sponsor Memo

2011-S7164 (ACTIVE) - Bill Text download pdf

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Sponsored By

Catharine Young

Archive: Last Bill Status - In Senate Committee Education Committee

Actions

2011-S7164 (ACTIVE) - Details

2011-S7164 (ACTIVE) - Summary

2011-S7164 (ACTIVE) - Sponsor Memo

2011-S7164 (ACTIVE) - Bill Text download pdf

Comments