S T A T E O F N E W Y O R K
________________________________________________________________________
5878
2013-2014 Regular Sessions
I N A S S E M B L Y
March 8, 2013
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Introduced by M. of A. BROOK-KRASNY, ARROYO -- Multi-Sponsored by -- M.
of A. COOK, GIBSON, WEISENBERG -- read once and referred to the
Committee on Education
AN ACT to amend the education law, in relation to the funding of certain
approved non-public special education programs and special act public
school districts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 9 of section 4001 of the education law, as
added by chapter 563 of the laws of 1980 and as renumbered by chapter
947 of the laws of 1981, is amended to read as follows:
9. "Tuition" shall mean the per pupil cost of all instructional
services, supplies and equipment, and the operation of instructional
facilities as determined by the commissioner. FOR THE TWO THOUSAND
THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND THEREAFTER, TUITION
RATES FOR A PARTICULAR SCHOOL YEAR THAT ARE CALCULATED BASED ON THAT
SCHOOL YEAR'S ACTUAL COSTS AND REVENUES MAY INCLUDE A SURPLUS FACTOR OF
NOT MORE THAN TWO PERCENT OF THAT SCHOOL YEAR'S ALLOWABLE AND REIMBURSA-
BLE COSTS AS DETERMINED BY THE COMMISSIONER AND APPROVED BY THE DIRECTOR
OF THE BUDGET, TO THE EXTENT THAT TUITION REVENUES EXCEED ALLOWABLE AND
REIMBURSABLE COSTS. Approved tuition shall be computed from expenditures
for which no revenue has been received from the following sources:
a. Receipts from the federal government;
b. Any cash receipts which reduce the cost of an item applied against
the item therefor, except gifts, donations and earned interest; and
c. Any refunds made or any apportionment or payment received from the
state for experimental or special programs as approved by the commis-
sioner.
S 2. Subdivision 1 of section 4003 of the education law, as amended by
chapter 947 of the laws of 1981, is amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07970-01-3
A. 5878 2
1. The commissioner [of education], the commissioner of [social] THE
OFFICE OF CHILDREN AND FAMILY services, and, when appropriate, the
commissioner of mental health shall develop reimbursement methodologies
for the tuition and maintenance components of child care institutions
and special act school districts. The commissioner [of education], in
consultation with the appropriate state agencies and departments AND IN
ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION FOUR OF SECTION FORTY-FOUR
HUNDRED FIVE OF THIS CHAPTER, shall have responsibility for developing a
reimbursement methodology for tuition which shall be based upon appro-
priate educational standards promulgated pursuant to regulations of the
commissioner [of education]. The commissioner of [social] THE OFFICE OF
CHILDREN AND FAMILY services, except for institutions for which the
state health department or the office of mental health establishes main-
tenance rates, in consultation with appropriate state agencies and
departments, shall have responsibility for developing a reimbursement
methodology for maintenance, pursuant to section three hundred ninety-
eight-a of the social services law and the regulations promulgated ther-
eunder.
S 3. Subdivision 5 of section 4401 of the education law, as amended by
chapter 470 of the laws of 1977, is amended to read as follows:
5. "Tuition" shall mean the per pupil cost of all instructional
services, supplies and equipment, the operation of instructional facili-
ties and allocable debt service for the instructional facilities, as
determined by the commissioner. FOR THE TWO THOUSAND THIRTEEN--TWO
THOUSAND FOURTEEN SCHOOL YEAR AND THEREAFTER, TUITION RATES FOR A
PARTICULAR SCHOOL THAT ARE CALCULATED BASED ON THAT SCHOOL YEAR'S ACTUAL
COSTS AND REVENUES MAY INCLUDE A SURPLUS FACTOR OF NOT MORE THAN TWO
PERCENT OF THAT SCHOOL YEAR'S ALLOWABLE AND REIMBURSABLE COSTS, AS
DETERMINED BY THE COMMISSIONER AND APPROVED BY THE DIRECTOR OF THE BUDG-
ET, TO THE EXTENT THAT TUITION REVENUES EXCEED ALLOWABLE AND REIMBURSA-
BLE COSTS. Approved tuition shall be computed from expenditures from
which no revenue has been received from the following sources:
(a) receipts from the federal government;
(b) any cash receipts which reduce the cost of an item applied against
the item therefor, except gifts, donations and earned interest[,]; and
(c) any refunds made or any apportionment or payment received from the
state for experimental or special programs as approved by the commis-
sioner.
S 4. Subdivision 4 of section 4405 of the education law is amended by
adding two new paragraphs j and k to read as follows:
J. NOTWITHSTANDING ANY PROVISION OF LAW OR REGULATION TO THE CONTRARY,
FOR THE PURPOSE OF ESTABLISHING TUITION RATES FOR THE TWO THOUSAND THIR-
TEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND THEREAFTER, THE COMMISSIONER
SHALL DEVELOP A MULTI-YEAR TUITION RATE SETTING METHODOLOGY, PURSUANT TO
THIS PARAGRAPH, IN WHICH RATES ESTABLISHED IN YEAR ONE ARE BASED ON
ALLOWABLE HISTORICAL COSTS AS DETERMINED BY THE COMMISSIONER AND
APPROVED BY THE DIRECTOR OF THE BUDGET. THE TUITION RATE FOR YEAR TWO
SHALL BE CALCULATED BY APPLYING A COST-OF-LIVING FACTOR, AS DETERMINED
BY THE COMMISSIONER AND APPROVED BY THE DIRECTOR OF THE BUDGET, TO THE
APPROVED YEAR ONE RATE. THE TUITION RATE FOR YEAR THREE SHALL BE CALCU-
LATED BY APPLYING A COST-OF-LIVING FACTOR, AS DETERMINED BY THE COMMIS-
SIONER AND APPROVED BY THE DIRECTOR OF THE BUDGET, TO THE APPROVED YEAR
TWO TUITION RATE. THIS MULTI-YEAR RATE SETTING METHODOLOGY SHALL BE
IMPLEMENTED ON A STAGGERED BASIS SO THAT APPROXIMATELY ONE-THIRD OF THE
SCHOOLS TO WHICH THE METHODOLOGY IS APPLIED WILL HAVE INITIAL YEAR ONE
RATES CALCULATED DURING EACH YEAR OF THE FIRST THREE YEAR CYCLE AS
A. 5878 3
DETERMINED BY THE COMMISSIONER, PROVIDED, HOWEVER, THAT DURING THE TRAN-
SITION PERIOD WHILE SCHOOLS ARE BEING SHIFTED TO A THREE-YEAR CYCLE,
SUCH METHODOLOGY SHALL PROVIDE FOR COST-OF-LIVING INCREASES FOR THOSE
SCHOOLS NOT YET IN YEAR TWO OF A THREE-YEAR CYCLE AS OF THE TWO THOUSAND
FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR BASED UPON APPLICATION OF A
COST-OF-LIVING FACTOR TO THE TUITION RATE OTHERWISE CALCULATED FOR SUCH
SCHOOLS PURSUANT TO THIS SUBDIVISION. THE COMMISSIONER SHALL PROMULGATE
REGULATIONS NECESSARY FOR IMPLEMENTATION OF THE MULTI-YEAR RATE SETTING
METHODOLOGY AS PROVIDED BY THIS PARAGRAPH.
K. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
THE CONTRARY, TUITION RATES FOR SPECIAL EDUCATION ITINERANT TEACHER
PROGRAMS APPROVED UNDER SECTION FORTY-FOUR HUNDRED TEN OF THIS CHAPTER
FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND
THEREAFTER SHALL BE ESTABLISHED ON A REGIONAL BASIS.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law provided, however, that the commissioner of
education shall promulgate rules and regulations immediately to effectu-
ate the timely implementation of this act.