Senate Bill S5661A

2013-2014 Legislative Session

Relates to certain tuition and reconciliation rates and establishes the special education provider revolving loan fund

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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
Jan 21, 2014	print number 5661a
Jan 21, 2014	amend and recommit to education
Jan 08, 2014	referred to education
May 31, 2013	referred to education

Bill Amendments

Original

A (Active)

2013-S5661 - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §4405, Ed L; add §97-oooo, St Fin L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S860
2017-2018: S1062

2013-S5661 - Summary

Relates to certain tuition and reconciliation rates and establishes the special education provider revolving loan fund.

2013-S5661 - Sponsor Memo

                                BILL NUMBER:S5661

TITLE OF BILL:  An act to amend the education law, in relation to
certain tuition and reconciliation rates; and to amend the state
finance law, in relation to the special education provider revolving
loan fund

PURPOSE:

To provide certain special education schools with increased rates from
the Department of Budget and to provide an alternative to Revenue
Anticipation Notes (RANS) for Special Act school districts, 853
schools and 4410 special education programs and to keep the school
open when such RANS are not available.

SUMMARY OF PROVISIONS:

Section one amends subdivision 4 of Section 4405 of the education law
by adding paragraph J to provide a tuition rate based on the personal
income growth index. Also adds paragraph K to provide that
reconciliation rates are approved by the Department of the Budget
within one hundred twenty days from submission of the rate to the
State Education Department.

Section two adds section 97 to the state finance law which establishes
a special education revolving loan fund under the joint custody of the

comptroller and the Commissioner of Tax and Finance. This section
authorizes the comptroller to provide short term loans from the fund,
pending tuition payments from the state.

Section three provides the effective date.

JUSTIFICATION:

Special Act school districts, 853 schools and 4410 special education
programs in New York State represent a particularly high needs student
population. The high need level associated with this population
results in significant costs to operate these schools. Yet for the
past six years, these schools and programs have not received a cost of
living adjustment and are functioning with a tuition rate based on
2006 costs. Under current law however, funding is provided to special
education programs through a complex methodology in which schools are
getting reimbursed at rates set in previous years, for students
previously served. These school districts currently rely heavily on
short-term borrowing from banks in the form of Revenue Anticipation
Notes (RANs), to keep their doors open. The state does not allow for
reimbursement of interest fees that are paid to banks.

These schools and programs are required to give educational services
and support to children and to do so without the same financial and
infrastructure supports that are afforded to other public schools.
For several years now, these schools and programs have lived with no
increases in their tuition reimbursements and have experienced an
inconsistent application of the tuition rate setting methodology. In
order to enable them to manage the affairs of the schools efficiently
and to address the needs of their students there must be a more
systemic approach to providing the funding and financial support the


schools and programs require. Traditional public schools receive an
allowable growth amount equal to the "personal income growth index"
and 853 schools, Special Acts and 4410 programs seek educational
funding parity between students with disabilities at special education
schools and those at public school districts.

This bill provides the funding certainty and flexibility necessary to
help these schools and programs maintain their mission and to educate
our students with some of the greatest needs. By providing a new
tuition rate methodology, the bill gives these schools and programs
the certainty of funding year to year. Furthermore by allowing New
York State to provide loans to 853 schools, Special Act schools and
4410 preschool special education programs in anticipation of the
school's revenue from the state will thereby save the schools and
programs million in interest payments at no cost to the state.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

2013-S5661 - Bill Text download pdf

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

                                  5661

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 31, 2013
                               ___________

Introduced  by Sen. CARLUCCI -- 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  certain  tuition  and
  reconciliation  rates; and to amend the state finance law, in relation
  to the special education provider revolving loan fund

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

  Section  1.  Subdivision  4  of  section  4405 of the education law is
amended by adding two new paragraphs j and k to read as follows:
  J. THE TUITION RATES ESTABLISHED FOR  SPECIAL  ACT  SCHOOL  DISTRICTS,
APPROVED  PRIVATE  SCHOOLS  FOR  STUDENTS  OF  SCHOOL  AGE, AND APPROVED
PROVIDERS OF SERVICES PURSUANT TO SECTION FORTY-FOUR HUNDRED TEN OF THIS
ARTICLE FOR THE TWO THOUSAND THIRTEEN - FOURTEEN TUITION RATE  YEAR  AND
ALL  SUBSEQUENT  YEARS THEREAFTER SHALL EQUAL THE PRODUCT OF THE TUITION
RATE FOR THE BASE YEAR AND PERSONAL INCOME GROWTH INDEX  AS  DEFINED  BY
PARAGRAPH  ONE  OF  SUBDIVISION  BB OF SECTION THIRTY-SIX HUNDRED TWO OF
THIS CHAPTER.
  K. ALL RECONCILIATION RATES FILED AFTER JULY FIRST, TWO THOUSAND THIR-
TEEN IN ACCORDANCE WITH SECTION 200.9  OF  THE  DEPARTMENT'S  RULES  AND
REGULATIONS SHALL BE ACTED UPON BY THE DIRECTOR OF THE BUDGET WITHIN ONE
HUNDRED TWENTY DAYS OF SUBMISSION TO THE DEPARTMENT. SUCH RATES SHALL BE
DEEMED APPROVED BY THE DIRECTOR OF THE BUDGET IN THE EVENT THAT NO FINAL
ACTION  IS TAKEN BY THE DIRECTOR OF THE BUDGET WITHIN ONE HUNDRED TWENTY
DAYS FROM THE SUBMISSION OF THE RECONCILIATION RATE TO THE DEPARTMENT.
  S 2. The state finance law is amended by adding a new section  97-nnnn
to read as follows:
  S  97-NNNN.  SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND.  1. THERE
IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE  COMPTROLLER  AND  THE
COMMISSIONER  OF  TAXATION AND FINANCE A FUND TO BE KNOWN AS THE SPECIAL
EDUCATION PROVIDER REVOLVING LOAN  FUND.  SUCH  FUND  SHALL  CONSIST  OF
MONEYS MADE AVAILABLE PURSUANT TO APPROPRIATION AND ANY OTHER SOURCES IN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11317-01-3

S. 5661                             2

ORDER  TO  PROVIDE SUPPORT SPECIAL ACT SCHOOL DISTRICTS, STATE EDUCATION
DEPARTMENT APPROVED PRIVATE SCHOOLS FOR SPECIAL  EDUCATION  STUDENTS  OF
SCHOOL  AGE,  AND  APPROVED  PROVIDERS  OF  SERVICES PURSUANT TO SECTION
FORTY-FOUR  HUNDRED  TEN OF THE EDUCATION LAW.  MONEYS SHALL BE PAID OUT
OF THE FUND ON THE AUDIT AND WARRANT OF THE STATE  COMPTROLLER  PURSUANT
TO SUCH SECTION.
  2.  THE  COMPTROLLER  MAY  PROVIDE SUCH A LOAN TO A SPECIAL ACT SCHOOL
DISTRICT OR APPROVED SPECIAL EDUCATION PROVIDER DEFINED  IN  SUBDIVISION
ONE  OF  THIS  SECTION  UPON  RECEIPT OF A WRITTEN AGREEMENT BETWEEN THE
SCHOOL DISTRICT OR PROVIDER AND THE STATE EDUCATION DEPARTMENT OUTLINING
THE NEED FOR SUCH LOAN AND THE ANTICIPATED TUITION  PAYMENT  OR  TUITION
RECONCILIATION THAT WILL PROVIDE REASONABLE ASSURANCES OF REPAYMENT THAT
IS  SATISFACTORY  TO  THE COMPTROLLER. SUCH LOAN SHALL NOT BEAR INTEREST
AND REPAYMENT OF SUCH LOAN MAY BE MADE UPON RECEIPT OF TUITION  PAYMENTS
AND RECONCILIATIONS, PURSUANT TO THE WRITTEN AGREEMENT.
  3. THE STATE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS WITHIN
NINETY  DAYS  OF THE EFFECTIVE DATE OF THIS SECTION FOR THE OPERATION OF
THE SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND WHICH SHALL  INCLUDE,
BUT  NOT  BE  LIMITED  TO, THE CRITERIA TO BE USED IN DETERMINING HOW AN
ELIGIBLE SPECIAL EDUCATION PROVIDER MAY RECEIVE ASSISTANCE; A  PROCEDURE
AND ANY NECESSARY INFORMATION THAT A SPECIAL EDUCATION PROVIDER NEEDS TO
SUBMIT  FOR  A  LOAN  FROM THE SPECIAL EDUCATION PROVIDER REVOLVING LOAN
FUND; A SCHEDULE FOR REVIEWING SUCH APPLICATIONS, NOT TO  EXCEED  THIRTY
DAYS,  AND  NOTIFICATION  TO  AN APPLICANT OF APPROVAL OR DISAPPROVAL OF
SUCH APPLICATION FOR A LOAN, AND ANY OTHER REQUIREMENTS DEEMED NECESSARY
BY THE STATE COMPTROLLER.
  S 3. This act shall take effect immediately.

2013-S5661A (ACTIVE) - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §4405, Ed L; add §97-oooo, St Fin L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S860
2017-2018: S1062

2013-S5661A (ACTIVE) - Summary

Relates to certain tuition and reconciliation rates and establishes the special education provider revolving loan fund.

2013-S5661A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5661A

TITLE  OF  BILL:    An  act to amend the education law, in relation to
certain tuition and reconciliation  rates;  and  to  amend  the  state
finance  law,  in relation to the special education provider revolving
loan fund

PURPOSE:  To provide certain special education schools with  increased
rates  from  the Department of Budget and to provide an alternative to
Revenue Anticipation Notes (RANS) for Special  Act  school  districts,
853 schools and 4410 special education programs and to keep the school
open when such RANS are not available.

SUMMARY OF PROVISIONS:

Section  one amends subdivision 4 of Section 4405 of the education law
by adding paragraph J to provide a tuition rate based on the  personal
income   growth   index.   Also  adds  paragraph  K  to  provide  that
reconciliation rates are approved by  the  Department  of  the  Budget
within  one  hundred  twenty  days  from submission of the rate to the
State Education Department.

Section two adds section  97-oooo  to  the  state  finance  law  which
establishes  a  special  education revolving loan fund under the joint
custody of the comptroller and the Commissioner  of  Tax  and  Finance
This  section  authorizes  the comptroller to provide short term loans

from the fund, pending tuition payments from the state.

Section three provides the effective date.

JUSTIFICATION:  Special Act school districts,  853  schools  and  4410
special  education programs in New York State represent a particularly
high needs student population. The high  need  level  associated  with
this population results in significant costs to operate these schools.
Yet  for  the  past  six  years,  these  schools and programs have not
received a cost of  living  adjustment  and  are  functioning  with  a
tuition  rate  based on 2006 costs. Under current law however, funding
is  provided  to  special  education  programs   through   a   complex
methodology  in  which  schools are getting reimbursed at rates set in
previous years, for students previously served. These school districts
currently rely heavily on short-term borrowing from banks in the  form
of  Revenue  Anticipation  Notes (RANs), to keep their doors open. The
state does not allow for reimbursement of interest fees that are  paid
to banks.

These  schools  and programs are required to give educational services
and support to children and to do so without the  same  financial  and
infrastructure  supports  that  are  afforded to other public schools.
For several years now, these schools and programs have lived  with  no
increases  in  their  tuition  reimbursements  and have experienced an
inconsistent application of the tuition rate setting  methodology.  In
order  to enable them to manage the affairs of the schools efficiently
and to address the needs of  their  students  there  must  be  a  more
systemic  approach  to providing the funding and financial support the
schools and programs require. Traditional public  schools  receive  an
allowable  growth  amount  equal to the "personal income growth index"
and 853 schools, Special  Acts  and  4410  programs  seek  educational


funding parity between students with disabilities at special education
schools and those at public school districts.

This  bill provides the funding certainty and flexibility necessary to
help these schools and programs maintain their mission and to  educate
our  students  with  some  of  the  greatest needs. By providing a new
tuition rate methodology, the bill gives these  schools  and  programs
the  certainty  of  funding  year to year. Furthermore by allowing New
York State to provide loans to 853 schools, Special  Act  schools  and
4410  preschool  special  education  programs  in  anticipation of the
school's revenue from the state will  thereby  save  the  schools  and
programs million in interest payments at no cost to the state.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:  This act shall take effect immediately.

2013-S5661A (ACTIVE) - Bill Text download pdf

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

                                 5661--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 31, 2013
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Education  --  recommitted
  to the Committee on Education in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the education law, in relation to  certain  tuition  and
  reconciliation  rates; and to amend the state finance law, in relation
  to the special education provider revolving loan fund

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

  Section  1.  Subdivision  4  of  section  4405 of the education law is
amended by adding two new paragraphs j and k to read as follows:
  J. THE TUITION RATES ESTABLISHED FOR  SPECIAL  ACT  SCHOOL  DISTRICTS,
APPROVED  PRIVATE  SCHOOLS  FOR  STUDENTS  OF  SCHOOL  AGE, AND APPROVED
PROVIDERS OF SERVICES PURSUANT TO SECTION FORTY-FOUR HUNDRED TEN OF THIS
ARTICLE FOR THE TWO THOUSAND FOURTEEN - FIFTEEN TUITION  RATE  YEAR  AND
ALL  SUBSEQUENT  YEARS THEREAFTER SHALL EQUAL THE PRODUCT OF THE TUITION
RATE FOR THE BASE YEAR AND PERSONAL INCOME GROWTH INDEX  AS  DEFINED  BY
PARAGRAPH  BB  OF  SUBDIVISION  ONE OF SECTION THIRTY-SIX HUNDRED TWO OF
THIS CHAPTER.
  K. ALL RECONCILIATION RATES FILED AFTER JULY FIRST, TWO THOUSAND FOUR-
TEEN IN ACCORDANCE WITH SECTION 200.9  OF  THE  DEPARTMENT'S  RULES  AND
REGULATIONS SHALL BE ACTED UPON BY THE DIRECTOR OF THE BUDGET WITHIN ONE
HUNDRED TWENTY DAYS OF SUBMISSION TO THE DEPARTMENT. SUCH RATES SHALL BE
DEEMED APPROVED BY THE DIRECTOR OF THE BUDGET IN THE EVENT THAT NO FINAL
ACTION  IS TAKEN BY THE DIRECTOR OF THE BUDGET WITHIN ONE HUNDRED TWENTY
DAYS FROM THE SUBMISSION OF THE RECONCILIATION RATE TO THE DEPARTMENT.
  S 2. The state finance law is amended by adding a new section  97-oooo
to read as follows:
  S  97-OOOO.  SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND.  1. THERE
IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE  COMPTROLLER  AND  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11317-02-4

S. 5661--A                          2

COMMISSIONER  OF  TAXATION AND FINANCE A FUND TO BE KNOWN AS THE SPECIAL
EDUCATION PROVIDER REVOLVING LOAN  FUND.  SUCH  FUND  SHALL  CONSIST  OF
MONEYS MADE AVAILABLE PURSUANT TO APPROPRIATION AND ANY OTHER SOURCES IN
ORDER  TO  PROVIDE SUPPORT SPECIAL ACT SCHOOL DISTRICTS, STATE EDUCATION
DEPARTMENT APPROVED PRIVATE SCHOOLS FOR SPECIAL  EDUCATION  STUDENTS  OF
SCHOOL  AGE,  AND  APPROVED  PROVIDERS  OF  SERVICES PURSUANT TO SECTION
FORTY-FOUR HUNDRED TEN OF THE EDUCATION LAW.  MONEYS SHALL BE  PAID  OUT
OF  THE  FUND ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER PURSUANT
TO SUCH SECTION.
  2. THE COMPTROLLER MAY PROVIDE SUCH A LOAN TO  A  SPECIAL  ACT  SCHOOL
DISTRICT  OR  APPROVED SPECIAL EDUCATION PROVIDER DEFINED IN SUBDIVISION
ONE OF THIS SECTION UPON RECEIPT OF  A  WRITTEN  AGREEMENT  BETWEEN  THE
SCHOOL DISTRICT OR PROVIDER AND THE STATE EDUCATION DEPARTMENT OUTLINING
THE  NEED  FOR  SUCH LOAN AND THE ANTICIPATED TUITION PAYMENT OR TUITION
RECONCILIATION THAT WILL PROVIDE REASONABLE ASSURANCES OF REPAYMENT THAT
IS SATISFACTORY TO THE COMPTROLLER. SUCH LOAN SHALL  NOT  BEAR  INTEREST
AND  REPAYMENT OF SUCH LOAN MAY BE MADE UPON RECEIPT OF TUITION PAYMENTS
AND RECONCILIATIONS, PURSUANT TO THE WRITTEN AGREEMENT.
  3. THE STATE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS WITHIN
NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION FOR THE  OPERATION  OF
THE  SPECIAL EDUCATION PROVIDER REVOLVING LOAN FUND WHICH SHALL INCLUDE,
BUT NOT BE LIMITED TO, THE CRITERIA TO BE USED  IN  DETERMINING  HOW  AN
ELIGIBLE  SPECIAL EDUCATION PROVIDER MAY RECEIVE ASSISTANCE; A PROCEDURE
AND ANY NECESSARY INFORMATION THAT A SPECIAL EDUCATION PROVIDER NEEDS TO
SUBMIT FOR A LOAN FROM THE SPECIAL  EDUCATION  PROVIDER  REVOLVING  LOAN
FUND;  A  SCHEDULE FOR REVIEWING SUCH APPLICATIONS, NOT TO EXCEED THIRTY
DAYS, AND NOTIFICATION TO AN APPLICANT OF  APPROVAL  OR  DISAPPROVAL  OF
SUCH APPLICATION FOR A LOAN, AND ANY OTHER REQUIREMENTS DEEMED NECESSARY
BY THE STATE COMPTROLLER.
  S 3. This act shall take effect immediately.

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Senate Bill S5661A

Sponsored By

Archive: Last Bill Status - In Senate Committee Education Committee

Actions

Bill Amendments

2013-S5661 - Details

2013-S5661 - Summary

2013-S5661 - Sponsor Memo

2013-S5661 - Bill Text download pdf

2013-S5661A (ACTIVE) - Details

2013-S5661A (ACTIVE) - Summary

2013-S5661A (ACTIVE) - Sponsor Memo

2013-S5661A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

David Carlucci

Archive: Last Bill Status - In Senate Committee Education Committee

Actions

Bill Amendments

2013-S5661 - Details

2013-S5661 - Summary

2013-S5661 - Sponsor Memo

2013-S5661 - Bill Text download pdf

2013-S5661A (ACTIVE) - Details

2013-S5661A (ACTIVE) - Summary

2013-S5661A (ACTIVE) - Sponsor Memo

2013-S5661A (ACTIVE) - Bill Text download pdf

Comments