senate Bill S6566

2013-2014 Legislative Session

Relates to reducing school taxes and prohibiting unfunded mandates

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Feb 06, 2014 referred to education

S6566 - Bill Details

Current Committee:
Law Section:
Education Law
Laws Affected:
Amd §§3602 & 3623-a, add §2023-b, Ed L; add §49, Leg L; add §28, St Fin L

S6566 - Bill Texts

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Enacts the school property tax reduction act to reduce school taxes and prohibit unfunded mandates; institutes cost saving measures and prohibits increased spending.

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BILL NUMBER:S6566

TITLE OF BILL: An act to amend the education law, the legislative law
and the state finance law, in relation to enacting the school property
tax reduction act

PURPOSE: To change the manner in which we fund education in New York
State by increasing the state's overall percentage of payment. To
prohibit the state legislature from mandating action by school or
school districts without providing appropriate funding, provide
appropriation in each year's state budget to fund state mandates on
schools. To require New York State to pay one hundred percent of the
cost of student transportation.

SUMMARY OF PROVISIONS:

Section 1 titles this law the School Property Tax Reduction Act.

Section 2 amends Section 3602 by adding a new subdivision to increase
foundation aid 10% above 2013-14 levels for school the 2014-15 budget
and increase those levels by five percent a year until state aid
represents 65 percent of the revenue in a school budget.

Section 3 amends section 3623 of the education law to require the
state to pay 100% of school transportation costs.

Section 4 amends the education law to require school districts to
decrease tax levy in the amount of increases in state foundation and
transportation aid.

Section 5 amends the legislative law by adding a new section 49 to
prohibit unfunded mandates on schools or school districts.

Section 6 amends the state finance law by adding a new section 28 to
provide that each year the state budget must make appropriations to
reimburse schools and school districts when the state mandates
actions.

Section 7 sets forth this action shall take effect immediately.

JUSTIFICATION: Funding education on the backs of homeowners and other
property owners results in New York having among the highest property
taxes in the county Despite actions over the last few years intended
to reduce property taxes, taxes are still increasing making it far too
costly to live or run a business in New York At the same time costs
associated with education continue to rise. We are at a crossroads and
we must find a way to invest more wisely in our children's education
so that they can compete and succeed in the economy of tomorrow.

Many of the increasing expenses experienced in schools budgets stem
from actions required by state laws or regulations that are imposed
without corresponding funding. These costs can represent as much as 80
percent of a school budget. Transportation costs represents one such
area and in some instances transportation can represent 12 percent of
a school budget.


State government has compounded the problem of these mandates by
significantly decreasing the portion of education funding that it
provides to local school districts over the last twenty years.
Currently, New York only provides 46 percent of the total cost of
educating a student in New York while local governments contribute 47
percent. Many other states contribute 65 percent or more which reduces
the burden of local property taxes to fund public education. The
state of Hawaii provides nearly 100% of the funding for state
education. The state contribution to education was not always as low
as 46 percent. As recently as 2010, New York State funded 50 percent
of the total cost of public education in New York State. In FY 2010,
32 states had larger state shares of public education funding than New
York State. Furthermore, since FY 2008, fourteen states have increased
their per-student spending by an average of 5.6 percent. In that same
period, New York State has reduced its per-student spending by 5.1%.

As a result of these changes, schools cannot keep up and we are
depriving our children of a quality education. New York State must
return toward paying its fair share of the total cost of public
education which would greatly alleviate the substantial burden on
homeowners and businesses.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: This bill will lead to lower property taxes for
property owners.

LOCAL FISCAL IMPLICATIONS: Reduce property taxes for homeowners and
business owners without impacting the revenue levels for schools and
school districts.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  6566

                            I N  S E N A T E

                            February 6, 2014
                               ___________

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

AN ACT to amend the education law, the legislative  law  and  the  state
  finance law, in relation to enacting the school property tax reduction
  act

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

  Section 1. This act shall be known and cited as the  "School  Property
Tax Reduction Act".
  S  2.  Section  3602  of  the education law is amended by adding a new
subdivision 4-a to read as follows:
  4-A. INCREASED FOUNDATION AID. NOTWITHSTANDING ANY OTHER PROVISION  OF
THIS SECTION OR ANY OTHER LAW TO THE CONTRARY, IN THE TWO THOUSAND FOUR-
TEEN--TWO  THOUSAND  FIFTEEN  SCHOOL  YEAR,  EACH  SCHOOL DISTRICT SHALL
RECEIVE A TEN PERCENT INCREASE IN THE AMOUNT OF TOTAL FOUNDATION AID, AS
DETERMINED BY SUBDIVISION FOUR OF THIS SECTION, OVER  THE  TWO  THOUSAND
THIRTEEN--TWO  THOUSAND FOURTEEN SCHOOL YEAR. BEGINNING IN THE TWO THOU-
SAND FIFTEEN--TWO THOUSAND SIXTEEN  SCHOOL  YEAR  EACH  SCHOOL  DISTRICT
SHALL  RECEIVE A FIVE PERCENT INCREASE IN THE TOTAL AMOUNT OF FOUNDATION
AID, AS DETERMINED BY SUBDIVISION FOUR OF THIS SECTION, OVER THE  PREVI-
OUS  YEAR  UNTIL  SUCH  TIME AS THE PROPORTION OF TOTAL STATE AID TO THE
TOTAL TAX LEVEL OF SUCH SCHOOL DISTRICT IS SIXTY-FIVE PERCENT.
  S 3. Section 3623-a of the education law is amended by  adding  a  new
subdivision 4 to read as follows:
  4.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE TO THE CONTRA-
RY, FOR SCHOOL YEARS COMMENCING AFTER JUNE THIRTIETH, TWO THOUSAND FOUR-
TEEN, STATE TRANSPORTATION AID SHALL  BE  EQUAL  TO  ALL  TRANSPORTATION
COSTS INCURRED BY A SCHOOL DISTRICT.
  S  4.  The  education law is amended by adding a new section 2023-b to
read as follows:
  S 2023-B. TAX  LEVY;  FOUNDATION  AID.  EVERY  SCHOOL  DISTRICT  SHALL
DECREASE  THE TAX LEVY BELOW THE AMOUNT ESTABLISHED THE PRIOR YEAR BY AN
AMOUNT WHICH IS THE PERCENTAGE INCREASE IN STATE FOUNDATION AID PURSUANT
TO SUBDIVISION FOUR-A OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13915-01-4

S. 6566                             2

  S 5. The legislative law is amended by adding a new section 49 to read
as follows:
  S   49.  PROHIBITION  ON  UNFUNDED  MANDATES  ON  SCHOOLS  AND  SCHOOL
DISTRICTS. 1. (A) ANY PROVISION OF LAW  DETERMINED  IN  ACCORDANCE  WITH
THIS SECTION TO BE AN UNFUNDED MANDATE SHALL BE VOID.
  (B)  A  PROVISION  OF LAW THAT REQUIRES A SCHOOL OR SCHOOL DISTRICT TO
EXPEND FUNDS OR TO TAKE ACTIONS REQUIRING THE EXPENDITURE OF FUNDS SHALL
BE DEEMED AN UNFUNDED MANDATE IF SUCH PROVISION OF  LAW  RESULTS  IN  AN
AGGREGATE  NET  INCREASE  OF  TEN  THOUSAND DOLLARS OR MORE IN NECESSARY
DIRECT EXPENDITURES BY ANY SCHOOL OR SCHOOL DISTRICT OF THE  STATE.  ANY
SUCH  AGGREGATE  NET  INCREASE  IN  EXPENDITURES SHALL BE OFFSET BY: (I)
MONIES PROVIDED TO SCHOOLS OR SCHOOL DISTRICTS FOR THE SPECIFIC  PURPOSE
OF  FUNDING  SUCH  PROVISION  OF LAW; AND (II) DECREASES IN EXPENDITURES
EXPECTED TO RESULT FROM OTHER PROVISIONS  OF  LAW  ENACTED  CONCURRENTLY
THEREWITH  THAT  REPEAL, REDUCE OR MODIFY EXISTING MANDATES ON SCHOOL OR
SCHOOL DISTRICT. FOR PURPOSES OF THIS  SECTION,  ALL  BUDGET  BILLS  AND
LEGISLATION  NECESSARY TO IMPLEMENT THE BUDGET ENACTED PURSUANT TO ARTI-
CLE SEVEN OF THE CONSTITUTION SHALL BE DEEMED TO HAVE BEEN  CONCURRENTLY
ENACTED INTO LAW.
  (C)  FOR PURPOSES OF THIS SECTION, THE TERM "LAW" SHALL MEAN A STATUTE
ENACTED BY THE LEGISLATURE, AN EXECUTIVE ORDER ISSUED BY  THE  GOVERNOR,
AND  A  RULE  OR  REGULATION  PROMULGATED BY A STATE AGENCY, DEPARTMENT,
BOARD, BUREAU, OFFICER, AUTHORITY OR COMMISSION.
  2. NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY,  THE
FOLLOWING TYPES OF LAWS SHALL NOT BE CONSIDERED UNFUNDED MANDATES:
  (A)  THOSE  THAT  HAVE BEEN REQUESTED BY THE AFFECTED SCHOOL OR SCHOOL
DISTRICT, OR WHICH HAVE BEEN ACCEPTED BY THE AFFECTED SCHOOL  OR  SCHOOL
DISTRICT;
  (B) THOSE APPLICABLE TO BOTH GOVERNMENT AND NON-GOVERNMENT ENTITIES IN
THE SAME OR A SUBSTANTIALLY SIMILAR MANNER; AND
  (C) THOSE IN FULL FORCE AND EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS
SECTION,  INCLUDING  ANY  PROVISION  OF LAW THAT EXTENDS OR REAUTHORIZES
SUCH A LAW.
  S 6. The state finance law is amended by adding a new  section  28  to
read as follows:
  S  28.  MANDATE  RELIEF  FOR SCHOOLS AND SCHOOL DISTRICTS. EACH FISCAL
YEAR THE BUDGET SUBMITTED BY THE GOVERNOR AND ENACTED BY THE LEGISLATURE
SHALL CONTAIN SEPARATE AND DISTINCT APPROPRIATIONS TO REIMBURSE  SCHOOLS
AND  SCHOOL  DISTRICTS  FOR  THE  ENTIRETY  OF  ANY  ADDITIONAL EXPENSES
INCURRED BY SUCH SCHOOL OR SCHOOL DISTRICT PURSUANT TO  ANY  STATE  LAW,
RULE  OR  REGULATION ENACTED TO COMPLY WITH A REQUIREMENT ESTABLISHED BY
FEDERAL LAWS, RULES OR REGULATIONS TO THE EXTENT THAT SUCH  STATE  LAWS,
RULES  OR  REGULATIONS  REQUIRE THE ASSUMPTION OF ADDITIONAL COSTS ABOVE
THOSE IMPOSED BY SUCH FEDERAL REQUIREMENTS.
  S 7. This act shall take effect immediately.

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