Senate Bill S5434

                                BILL NUMBER:S5434

TITLE OF BILL:  An act directing that certain provisions of law shall
also apply to special act school districts and certain other
institutions

PURPOSE:  To provide flexibility in meeting retirement benefit
obligations for special act school districts and any institution
subject to article 85 of the education law.

SUMMARY OF PROVISIONS:

Section 1: Provides that notwithstanding any law to the contrary, part
BB of chapter 57 of the laws of 2013 shall also apply to special act
school districts and any institution subject to article 85 of the
education law.

Section 2: Sets forth an immediate effective date.

EXISTING LAW:  The 2013-2014 Budget included these flexibility
provisions for school districts and boards of cooperative educational
services.

JUSTIFICATION:  The way in which we treat the most vulnerable among us
makes a clear statement about our priorities as a society. Providing a
high quality education for all of our students, regardless of
              

geography, economic status or academic ability is paramount. Local
school districts strive to serve all students in a meaningful way,
however, there are some students for whom a traditional public school
setting is simply not appropriate. These schools, which include
special act school districts and 4201 schools, provide vital
educational, social and emotional supports to students with
disabilities including students who are visually impaired, deaf, or
physically impaired.

While they serve unique and specialized purposes, these schools are
public school districts charged with implementing and following state
laws and regulations. As such, these schools face the same fiscal
challenges in providing mandated retirement benefits as do local
public school districts. These challenges are made more acute by the
unique way in which these schools are funded. With no local taxing
authority, these schools are supported through a system of tuition
reimbursement from sending school districts, the rate for which is
established by the State Education Department in consultation with the
Division of the Budget. Unlike traditional public school districts,
these schools have not received an increase in funding for four years.

The 2013-2014 Executive Budget provided an option to smooth the fiscal
impacts of meeting retirement obligations on school districts and
boards of cooperative educational services. Therefore, because special
act and 4201 schools also educate public school students.  efforts to
provide flexibility in meeting retirement benefit obligations should
be extended to publicly funded 4201 and special act school districts.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.


EFFECTIVE DATE: Immediately.