S T A T E   O F   N E W   Y O R K
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                                 5795--A
    Cal. No. 225

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 3, 2015
                               ___________

Introduced  by  Sen. MARCELLINO -- (at request of the State Comptroller)
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Education -- recommitted to the Committee  on  Educa-
  tion  in  accordance  with Senate Rule 6, sec. 8 -- reported favorably
  from said committee, ordered to first and second report, ordered to  a
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

AN ACT to amend the education law, in relation to  requiring  notice  of
  reserve  funds  and  reserves funded by resolution and to require that
  each school district post on its website, if any, a final annual budg-
  et and any multi-year financial plan adopted by the board of education
  or trustees

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

  Section  1. Paragraph a of subdivision 7 of section 1608 of the educa-
tion law, as amended by section 4 of part A of chapter 97 of the laws of
2011, is amended to read as follows:
  a. Each year, commencing with the proposed budget for  the  two  thou-
sand--two  thousand  one  school  year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local newspapers of general circulation, appending it to copies  of  the
proposed  budget  made  publicly available as required by law, making it
available for distribution at the annual meeting, and otherwise  dissem-
inating  it  as  required  by  the  commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy that would result from adoption of  the  proposed  budget  and  the
percentage  increase  or decrease in total spending and total school tax
levy from the school district budget for the preceding school year;  and
(ii)  the  district's  tax levy limit determined pursuant to section two
thousand twenty-three-a of this title,  and  the  estimated  school  tax

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

                                                           LBD10879-03-6

S. 5795--A                          2

levy,  excluding any levy necessary to support the expenditures pursuant
to subparagraphs (i) through (iv) of paragraph i of subdivision  two  of
section  two  thousand  twenty-three-a  of this title, that would result
from adoption of the proposed budget; and (iii) the projected enrollment
growth  for  the  school  year for which the budget is prepared, and the
percentage change in enrollment from the previous  year;  and  (iv)  the
percentage increase in the consumer price index, as defined in paragraph
c  of  this subdivision; and (v) the projected amount of the unappropri-
ated unreserved fund balance that will be retained if the proposed budg-
et is adopted, the projected amount of the reserved  fund  balance,  the
projected amount of the appropriated fund balance, the percentage of the
proposed  budget that the unappropriated unreserved fund balance repres-
ents, the actual unappropriated unreserved fund balance retained in  the
school district budget for the preceding school year, and the percentage
of  the  school  district  budget for the preceding school year that the
actual unappropriated unreserved fund balance represents, AND A SCHEDULE
OF RESERVE FUNDS, SETTING  FORTH  THE  NAME  OF  EACH  RESERVE  FUND,  A
DESCRIPTION  OF  ITS  PURPOSE,  THE BALANCE AS OF THE CLOSE OF THE THIRD
QUARTER OF THE CURRENT SCHOOL DISTRICT FISCAL YEAR AND A BRIEF STATEMENT
EXPLAINING ANY PLANS FOR THE USE OF EACH SUCH RESERVE FUND FOR THE ENSU-
ING FISCAL YEAR.
  S 1-a. Paragraph a of subdivision 7 of section 1608 of  the  education
law,  as  amended by chapter 238 of the laws of 2007, is amended to read
as follows:
  a. Each year, commencing with the proposed budget for  the  two  thou-
sand--two  thousand  one  school  year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local newspapers of general circulation, appending it to copies  of  the
proposed  budget  made  publicly available as required by law, making it
available for distribution at the annual meeting, and otherwise  dissem-
inating  it  as  required  by  the  commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy that would result from adoption of  the  proposed  budget  and  the
percentage  increase  or decrease in total spending and total school tax
levy from the school district budget for the preceding school year;  and
(ii)  the  projected enrollment growth for the school year for which the
budget is prepared, and the percentage change  in  enrollment  from  the
previous  year;  and (iii) the percentage increase in the consumer price
index, as defined in paragraph c  of  this  subdivision;  and  (iv)  the
projected amount of the unappropriated unreserved fund balance that will
be  retained  if the proposed budget is adopted, the projected amount of
the reserved fund balance, the projected amount of the appropriated fund
balance, the percentage of the proposed budget that  the  unappropriated
unreserved fund balance represents, the actual unappropriated unreserved
fund  balance  retained  in the school district budget for the preceding
school year, and the percentage of the school district  budget  for  the
preceding  school  year  that  the actual unappropriated unreserved fund
balance represents; AND (V) A SCHEDULE OF RESERVE FUNDS,  SETTING  FORTH
THE NAME OF EACH RESERVE FUND, A DESCRIPTION OF ITS PURPOSE, THE BALANCE
AS  OF  THE  CLOSE  OF  THE THIRD QUARTER OF THE CURRENT SCHOOL DISTRICT
FISCAL YEAR AND A BRIEF STATEMENT EXPLAINING ANY PLANS FOR  THE  USE  OF
EACH SUCH RESERVE FUND FOR THE ENSUING FISCAL YEAR.
  S  2.  Paragraph  a  of subdivision 7 of section 1716 of the education
law, as amended by section 5 of part A of chapter  97  of  the  laws  of
2011, is amended to read as follows:

S. 5795--A                          3

  a.  Each  year,  commencing with the proposed budget for the two thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers  of  general  circulation,  appending  it to copies of the proposed
budget made publicly available as required by law, making  it  available
for  distribution  at the annual meeting, and otherwise disseminating it
as required by the commissioner. Such report card shall include: (i) the
amount of total spending and total estimated school tax levy that  would
result  from adoption of the proposed budget and the percentage increase
or decrease in total spending and total school tax levy from the  school
district  budget  for the preceding school year; and (ii) the district's
tax  levy  limit   determined   pursuant   to   section   two   thousand
twenty-three-a of this title, and the estimated school tax levy, exclud-
ing  any levy necessary to support the expenditures pursuant to subpara-
graphs (i) through (iv) of paragraph i of subdivision two of section two
thousand twenty-three-a of this title, that would result  from  adoption
of  the  proposed  budget; and (iii) the projected enrollment growth for
the school year for which the budget is  prepared,  and  the  percentage
change  in  enrollment  from  the previous year; and (iv) the percentage
increase in the consumer price index, as defined in paragraph c of  this
subdivision;  and  (v)  the projected amount of the unappropriated unre-
served fund balance that will be retained  if  the  proposed  budget  is
adopted, the projected amount of the reserved fund balance, the project-
ed  amount  of  the  appropriated  fund  balance,  the percentage of the
proposed budget that the unappropriated unreserved fund balance  repres-
ents,  the actual unappropriated unreserved fund balance retained in the
school district budget for the preceding  school  year,  A  SCHEDULE  OF
RESERVE   FUNDS,  SETTING  FORTH  THE  NAME  OF  EACH  RESERVE  FUND,  A
DESCRIPTION OF ITS PURPOSE, THE BALANCE AS OF THE  CLOSE  OF  THE  THIRD
QUARTER OF THE CURRENT SCHOOL DISTRICT FISCAL YEAR AND A BRIEF STATEMENT
EXPLAINING ANY PLANS FOR THE USE OF EACH SUCH RESERVE FUND FOR THE ENSU-
ING FISCAL YEAR and the percentage of the school district budget for the
preceding  school  year  that  the actual unappropriated unreserved fund
balance represents.
  S 2-a. Paragraph a of subdivision 7 of section 1716 of  the  education
law,  as  amended by chapter 238 of the laws of 2007, is amended to read
as follows:
  a. Each year, commencing with the proposed budget for  the  two  thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers  of  general  circulation,  appending  it to copies of the proposed
budget made publicly available as required by law, making  it  available
for  distribution  at the annual meeting, and otherwise disseminating it
as required by the commissioner. Such report card shall include: (i) the
amount of total spending and total estimated school tax levy that  would
result  from adoption of the proposed budget and the percentage increase
or decrease in total spending and total school tax levy from the  school
district  budget  for  the preceding school year; and (ii) the projected
enrollment growth for the school year for which the budget is  prepared,
and  the  percentage  change  in  enrollment from the previous year; and
(iii) the percentage increase in the consumer price index, as defined in
paragraph c of this subdivision; and (iv) the projected  amount  of  the
unappropriated  unreserved  fund  balance  that  will be retained if the
proposed budget is adopted, the projected amount of  the  reserved  fund

S. 5795--A                          4

balance,  the  projected  amount  of  the appropriated fund balance, the
percentage of the proposed budget  that  the  unappropriated  unreserved
fund  balance  represents,  the  actual  unappropriated  unreserved fund
balance  retained in the school district budget for the preceding school
year, A SCHEDULE OF RESERVE  FUNDS,  SETTING  FORTH  THE  NAME  OF  EACH
RESERVE  FUND, A DESCRIPTION OF ITS PURPOSE, THE BALANCE AS OF THE CLOSE
OF THE THIRD QUARTER OF THE CURRENT SCHOOL DISTRICT FISCAL  YEAR  AND  A
BRIEF  STATEMENT  EXPLAINING  ANY PLANS FOR THE USE OF EACH SUCH RESERVE
FUND FOR THE ENSUING FISCAL  YEAR  and  the  percentage  of  the  school
district  budget  for the preceding school year that the actual unappro-
priated unreserved fund balance represents.
  S 3. The education law is amended by adding a new section 3653 to read
as follows:
  S 3653. RESERVES FUNDED  BY  RESOLUTION.  IN  ADDITION  TO  ANY  OTHER
REQUIREMENTS,  NO  MONIES  SHALL BE PAID OR TRANSFERRED INTO ANY RESERVE
FUND, ESTABLISHED PURSUANT TO THIS CHAPTER OR ANY OTHER CHAPTER OF  LAW,
FOR  THE  PURPOSE OF INCREASING THE FUNDING OF SUCH RESERVE FUND, UNLESS
EXPRESSLY AUTHORIZED BY A RESOLUTION OF THE BOARD OF EDUCATION OR  TRUS-
TEES OF A SCHOOL DISTRICT.
  S  4.  Section  2116-a of the education law is amended by adding a new
subdivision 3-b to read as follows:
  3-B. EACH SCHOOL DISTRICT SHALL  IN  A  TIMELY  FASHION  POST  ON  ITS
WEBSITE,  IF  ANY,  THE  ANNUAL EXTERNAL AUDIT REPORT AND THE CORRECTIVE
ACTION PLAN PREPARED IN RESPONSE TO ANY FINDINGS CONTAINED IN THE ANNUAL
EXTERNAL AUDIT REPORT OR MANAGEMENT LETTER, OR ANY  FINAL  AUDIT  REPORT
ISSUED BY THE STATE COMPTROLLER.
  S  5.  Section  2022  of  the education law is amended by adding a new
subdivision 7 to read as follows:
  7. EACH SCHOOL DISTRICT SHALL POST ON ITS WEBSITE,  IF  ANY,  A  FINAL
ANNUAL  BUDGET AND ANY MULTI-YEAR FINANCIAL PLAN ADOPTED BY THE BOARD OF
EDUCATION OR TRUSTEES.
  S 6. This act shall take effect on the first of July  next  succeeding
the date on which it shall have become a law; provided, however, that:
  a.  the  amendment  to paragraph a of subdivision 7 of section 1608 of
the education law made by section one of this act shall  be  subject  to
the expiration and reversion of such paragraph pursuant to section 13 of
part  A  of  chapter  97 of the laws of 2011, as amended, when upon such
date the provisions of section one-a of this act shall take effect;
  b. the amendment to paragraph a of subdivision 7 of  section  1716  of
the  education  law  made by section two of this act shall be subject to
the expiration and reversion of such paragraph pursuant to section 13 of
part A of chapter 97 of the laws of 2011, as  amended,  when  upon  such
date the provisions of section two-a of this act shall take effect; and
  c. provided, further, that the amendment to section 2022 of the educa-
tion  law  made by section five of this act shall survive the expiration
and reversion of such section pursuant to section 13 of part A of  chap-
ter 97 of the laws of 2011, as amended.