Senate Bill S7597

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

                                  7597

                            I N  S E N A T E

                              May 11, 2016
                               ___________

Introduced  by  Sen.  GRIFFO -- 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  the  computation  of
  foundation  aid  and  addition  of  credit recovery aid for the Maisto
  Districts; to amend the local finance law, in relation to  calculation
  of  the  period  of  probable  usefulness regarding payment for Maisto
  Districts credit recovery aid; to amend the public authorities law, in
  relation to contracts between the dormitory authority and  the  Maisto
  Districts  or  the  New  York  state  association of small city school
  districts; and to amend the state finance law, in relation  to  estab-
  lishing the credit recovery financing reserve fund

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

  Section 1. Legislative intent: It is the responsibility of the  legis-
lature  under article XI of the constitution of the state of New York to
establish and maintain a system that will provide all children an oppor-
tunity to receive a meaningful high school education.  As  a  result  of
trial in State Supreme Court of MAISTO, ET AL. V STATE OF NEW YORK it is
clear  that  resources sufficient to offer that education in eight small
city school districts, known as the  Maisto  Districts,  are  not  being
provided  to  those districts under current education law. Therefore, it
is the intention of the legislature to amend certain provisions  of  the
education law to ensure that the necessary funding is available in those
districts  to  help  them  provide  all their children an opportunity to
receive a meaningful high  school  education  and  to  maintain  healthy
vibrant educational communities that underpin a thriving state economy.
  S  2.  This legislation shall be known and may be cited as "the Maisto
District successful schools act".
  S 3. Paragraph ff of subdivision 1 of section 3602  of  the  education
law, as added by section 25 of part A of chapter 58 of the laws of 2011,
is amended to read as follows:
  ff.  "Preliminary growth amount" shall mean the difference between the
statewide total,  excluding  the  apportionments  computed  pursuant  to
subdivisions  four, OTHER THAN SUCH APPORTIONMENTS FOR MAISTO DISTRICTS,

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

                                                           LBD14924-04-6

S. 7597                             2

and seventeen of section thirty-six hundred two of the education law, of
the apportionments  due  and  owing  during  the  current  school  year,
commencing  with  the  two thousand twelve--two thousand thirteen school
year, to school districts and boards of cooperative educational services
from  the  general  support  for  public schools as computed based on an
electronic data file used to produce the  school  aid  computer  listing
produced  by  the  commissioner in support of the enacted budget for the
current year, less the statewide total of such apportionments, excluding
the apportionments computed pursuant to subdivisions  four,  OTHER  THAN
SUCH APPORTIONMENTS FOR MAISTO DISTRICTS, and seventeen of section thir-
ty-six  hundred  two of the education law, due and owing during the base
school year to school districts and boards  of  cooperative  educational
services  from  the general support for public schools as computed based
on an electronic data file used to produce the school aid computer list-
ing produced by the commissioner in support of the  enacted  budget  for
the current year.
  S  4. Subdivision 1 of section 3602 of the education law is amended by
adding two new paragraphs hh and ii to read as follows:
  HH. "NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS"  SHALL
MEAN  THE ASSOCIATION OF DISTRICTS IN CITIES WITH POPULATIONS FEWER THAN
ONE HUNDRED TWENTY-FIVE THOUSAND PERSONS IN THE MOST RECENT CENSUS.
  II. "MAISTO DISTRICTS" SHALL MEAN THE SMALL CITY SCHOOL  DISTRICTS  OF
JAMESTOWN, KINGSTON, MOUNT VERNON, NEWBURGH, NIAGARA FALLS, PORT JERVIS,
POUGHKEEPSIE AND UTICA.
  S  5. Subdivision 18 of section 3602 of the education law, as added by
section 37 of part A of chapter 58 of the laws of 2011,  is  amended  to
read as follows:
  18. Allocable growth amount apportionment. Such amount shall be appor-
tioned  for  a school year pursuant to a chapter of the laws of New York
enacted for the state fiscal year in which such school  year  commences,
and  shall be allocated to purposes including but not limited to compet-
itive grant awards made pursuant to subdivisions five and six of section
thirty-six hundred forty-one of this article, the foundation aid  phase-
in  amount or other foundation aid increase allocated pursuant to subdi-
vision four of this section and the gap elimination adjustment  restora-
tion  amount  apportioned  pursuant  to  subdivision  seventeen  of this
section. In the event that a chapter of the laws of New York enacted for
the state fiscal year  in  which  such  school  year  commences  is  not
enacted,  the  allocations  in  support  of subdivisions five and six of
section thirty-six hundred forty-one of this  article  shall  equal  the
allocations  in  support of such awards in the base year, and the appor-
tionments pursuant to subdivisions four and seventeen  of  this  section
for  the  current  year shall equal the apportionments for such subdivi-
sions four and seventeen for the base year EXCEPT  THAT  THE  APPORTION-
MENTS OF THE FOUNDATION AID PHASE-IN AMOUNT FOR THE MAISTO DISTRICTS AND
MAISTO  DISTRICT CREDIT RECOVERY AID SHALL BE THE AMOUNT COMPUTED IN THE
CURRENT YEAR.
  S 6. The opening paragraph and paragraphs a and b of subdivision 4  of
section  3602  of the education law, as amended by section 5-a of part A
of chapter 56 of the laws of 2015, are amended to read as follows:
  In addition to any other apportionment pursuant  to  this  chapter,  a
school  district, other than a special act school district as defined in
subdivision eight of section four thousand one of this chapter, shall be
eligible for total foundation aid equal to the product of total  aidable
foundation  pupil units multiplied by the district's selected foundation
aid, which shall be the greater of five hundred dollars ($500) or  foun-

S. 7597                             3

dation  formula aid, provided, however that for the two thousand seven--
two thousand eight through two thousand eight--two thousand nine  school
years,  no  school district shall receive total foundation aid in excess
of  the  sum of the total foundation aid base for aid payable in the two
thousand seven--two thousand eight  school  year  computed  pursuant  to
subparagraph (i) of paragraph j of subdivision one of this section, plus
the  phase-in  foundation  increase  computed pursuant to paragraph b of
this subdivision, and provided further that for the two thousand twelve-
-two thousand thirteen school year, no  school  district  shall  receive
total  foundation  aid  in excess of the sum of the total foundation aid
base for aid payable in the two  thousand  eleven--two  thousand  twelve
school  year computed pursuant to paragraph j of subdivision one of this
section, plus the phase-in  foundation  increase  computed  pursuant  to
paragraph  b  of this subdivision, and provided further that for the two
thousand thirteen--two thousand fourteen school year and thereafter,  no
school  district shall receive total foundation aid in excess of the sum
of the total foundation aid base computed pursuant  to  paragraph  j  of
subdivision  one  of this section, plus the phase-in foundation increase
computed pursuant to  paragraph  b  of  this  subdivision  and  provided
further  that total foundation aid shall not be less than the product of
the total foundation aid base computed pursuant to paragraph j of subdi-
vision one of this section and the due-minimum percent which  shall  be,
for  the  two  thousand  twelve--two  thousand thirteen school year, one
hundred and six-tenths percent (1.006) and for the  two  thousand  thir-
teen--two  thousand  fourteen  school  year for city school districts of
those cities having populations in excess  of  one  hundred  twenty-five
thousand  and  less than one million inhabitants one hundred and one and
one hundred and seventy-six thousandths percent (1.01176), and  for  all
other  districts  one  hundred and three-tenths percent (1.003), and for
the two thousand fourteen--two thousand fifteen school year one  hundred
and  eighty-five  hundredths  percent (1.0085), and for the two thousand
fifteen--two thousand sixteen  school  year,  one  hundred  thirty-seven
hundredths  percent  (1.0037),  subject  to  allocation  pursuant to the
provisions of subdivision eighteen of this section and any provisions of
a chapter of the laws of New York as described therein,  nor  more  than
the  product  of  such total foundation aid base and one hundred fifteen
percent, EXCEPT FOR MAISTO DISTRICTS WHICH SHALL BE ONE HUNDRED  TWENTY-
FIVE  PERCENT,  and provided further that for the two thousand nine--two
thousand ten through two thousand  eleven--two  thousand  twelve  school
years,  each  school  district  shall receive total foundation aid in an
amount equal to the amount apportioned to such school district  for  the
two  thousand  eight--two  thousand  nine  school  year pursuant to this
subdivision. Total aidable foundation pupil units  shall  be  calculated
pursuant  to  paragraph  g  of  subdivision two of this section. For the
purposes of calculating aid pursuant to this subdivision,  aid  for  the
city  school  district  of the city of New York shall be calculated on a
citywide basis.
  a. Foundation formula aid. Foundation  formula  aid  shall  equal  the
remainder  when  the  expected  minimum local contribution is subtracted
from the product of the foundation amount, the regional cost index,  and
the  pupil  need  index,  or: (foundation amount x regional cost index x
pupil need index)- expected minimum local contribution.
  (1) The foundation amount shall reflect the average per pupil cost  of
general  education instruction in successful school districts, as deter-
mined by a statistical analysis of the costs of  special  education  and
general  education  in  successful  school  districts, provided that the

S. 7597                             4

foundation amount shall be adjusted annually to reflect  the  percentage
increase in the consumer price index as computed pursuant to section two
thousand  twenty-two of this chapter, provided that for the two thousand
eight--two  thousand  nine  school year, for the purpose of such adjust-
ment, the percentage increase in  the  consumer  price  index  shall  be
deemed  to  be two and nine-tenths percent (0.029), and provided further
that the foundation amount for  the  two  thousand  seven--two  thousand
eight  school  year  shall  be  five  thousand  two  hundred fifty-eight
dollars, and provided further that for the two thousand seven--two thou-
sand eight through two thousand  fifteen--two  thousand  sixteen  school
years,  AND FOR THE MAISTO DISTRICTS FOR THE TWO THOUSAND SEVENTEEN--TWO
THOUSAND EIGHTEEN THROUGH TWO THOUSAND TWENTY--TWO  THOUSAND  TWENTY-ONE
SCHOOL  YEARS,  the  foundation  amount shall be further adjusted by the
phase-in foundation percent established pursuant to paragraph b of  this
subdivision.
  (2)  The regional cost index shall reflect an analysis of labor market
costs based on median salaries in professional occupations that  require
similar  credentials  to  those of positions in the education field, but
not including those occupations in the education  field,  provided  that
the regional cost indices for the two thousand seven--two thousand eight
school year and thereafter shall be as follows:
          Labor Force Region  Index
          Capital District    1.124
          Southern Tier       1.045
          Western New York    1.091
          Hudson Valley       1.314
          Long Island/NYC     1.425
          Finger Lakes        1.141
          Central New York    1.103
          Mohawk Valley       1.000
          North Country       1.000
  (3)  The pupil need index shall equal the sum of one plus the extraor-
dinary needs percent, provided, however, that the pupil need index shall
not be less than one nor more than two. The extraordinary needs  percent
shall  be  calculated pursuant to paragraph w of subdivision one of this
section.
  (4) The expected minimum local contribution shall equal the lesser  of
(i)  the product of (A) the quotient arrived at when the selected actual
valuation is divided by total wealth foundation pupil units,  multiplied
by  (B)  the  product  of the local tax factor, multiplied by the income
wealth index, or (ii) the product of (A) the product of  the  foundation
amount, the regional cost index, and the pupil need index, multiplied by
(B)  the  positive  difference,  if  any, of one minus the state sharing
ratio for total foundation aid. The local tax  factor  shall  be  estab-
lished by May first of each year by determining the product, computed to
four  decimal  places  without rounding, of ninety percent multiplied by
the quotient of the sum of the statewide average tax rate as computed by
the commissioner for the current year in accordance with the  provisions
of  paragraph  e of subdivision one of section thirty-six hundred nine-e
of this part plus the statewide average tax rate computed by the commis-
sioner for the base year in accordance with  such  provisions  plus  the
statewide  average  tax  rate  computed by the commissioner for the year
prior to the base year in accordance with such  provisions,  divided  by
three,  provided  however  that for the two thousand seven--two thousand
eight school year, such local tax factor shall  be  sixteen  thousandths
(0.016), and provided further that for the two thousand eight--two thou-

S. 7597                             5

sand  nine  school  year,  such  local  tax  factor shall be one hundred
fifty-four ten thousandths (0.0154). The income wealth  index  shall  be
calculated pursuant to paragraph d of subdivision three of this section,
provided, however, that for the purposes of computing the expected mini-
mum  local  contribution  the income wealth index shall not be less than
sixty-five percent (0.65) and shall not be more than two hundred percent
(2.0) and provided however that such income wealth index  shall  not  be
more  than  ninety-five  percent  (0.95) for the two thousand eight--two
thousand nine school year, and provided further that such income  wealth
index  shall  not  be  less than zero for the two thousand thirteen--two
thousand fourteen school year. The selected actual  valuation  shall  be
calculated  pursuant  to paragraph c of subdivision one of this section.
Total wealth foundation pupil units  shall  be  calculated  pursuant  to
paragraph h of subdivision two of this section.
  b.  Phase-in foundation increase. (1) The phase-in foundation increase
shall equal the product  of  the  phase-in  foundation  increase  factor
multiplied by the positive difference, if any, of (i) the product of the
total  aidable  foundation  pupil  units  multiplied  by  the district's
selected foundation aid less (ii) the total foundation aid base computed
pursuant to paragraph j of subdivision one of this section.
  (2) (i) Phase-in foundation percent. The phase-in  foundation  percent
shall  equal  one  hundred  thirteen and fourteen one hundredths percent
(1.1314) for the two thousand eleven--two thousand twelve  school  year,
one hundred ten and thirty-eight hundredths percent (1.1038) for the two
thousand  twelve--two  thousand  thirteen school year, one hundred seven
and sixty-eight hundredths percent (1.0768) for the two  thousand  thir-
teen--two  thousand  fourteen  school  year,  one  hundred  five and six
hundredths percent (1.0506) for the two thousand fourteen--two  thousand
fifteen  school  year,  and  one  hundred  two  and  five tenths percent
(1.0250) for the two thousand fifteen--two thousand sixteen school  year
AND FOR THE MAISTO DISTRICTS ONE HUNDRED TEN AND THIRTY-EIGHT HUNDREDTHS
PERCENT  (1.1038)  FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
SCHOOL YEAR,  ONE  HUNDRED  SEVEN  AND  SIXTY-EIGHT  HUNDREDTHS  PERCENT
(1.0768)  FOR  THE  TWO  THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL
YEAR, ONE HUNDRED FIVE AND SIX HUNDREDTHS PERCENT (1.0506) FOR  THE  TWO
THOUSAND  NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR, AND ONE HUNDRED TWO
AND FIVE TENTHS PERCENT (1.0250) FOR THE TWO THOUSAND TWENTY--TWO  THOU-
SAND TWENTY-ONE SCHOOL YEAR.
  (ii)  Phase-in  foundation  increase  factor.  For  the  two  thousand
eleven--two  thousand  twelve  school  year,  the  phase-in   foundation
increase  factor  shall  equal thirty-seven and one-half percent (0.375)
and the phase-in due minimum percent shall equal nineteen and  forty-one
hundredths  percent  (0.1941), for the two thousand twelve--two thousand
thirteen school year the phase-in foundation increase factor shall equal
one and seven-tenths percent (0.017), for the two thousand thirteen--two
thousand fourteen school year the phase-in  foundation  increase  factor
shall equal (1) for a city school district in a city having a population
of  one  million  or  more,  five  and  twenty-three  hundredths percent
(0.0523) or (2) for all other school districts zero percent, for the two
thousand fourteen--two thousand fifteen school year the phase-in founda-
tion increase factor shall equal (1) for a city  school  district  of  a
city  having  a  population  of one million or more, four and thirty-two
hundredths percent (0.0432) or (2) for a school district  other  than  a
city  school  district  having  a  population of one million or more for
which (A) the quotient of the  positive  difference  of  the  foundation
formula aid minus the foundation aid base computed pursuant to paragraph

S. 7597                             6

j  of  subdivision one of this section divided by the foundation formula
aid is greater than twenty-two percent (0.22) and (B) a combined  wealth
ratio  less  than thirty-five hundredths (0.35), seven percent (0.07) or
(3)  for  all  other  school  districts,  four and thirty-one hundredths
percent (0.0431), and for the two thousand fifteen--two thousand sixteen
school year the phase-in foundation increase factor shall equal: (1) for
a city school district of a city having a population of one  million  or
more,   thirteen   and  two  hundred  seventy-four  thousandths  percent
(0.13274); or (2) for districts  where  the  quotient  arrived  at  when
dividing  (A)  the  product  of the total aidable foundation pupil units
multiplied by the district's selected  foundation  aid  less  the  total
foundation  aid base computed pursuant to paragraph j of subdivision one
of this section divided by (B) the product of the total aidable  founda-
tion pupil units multiplied by the district's selected foundation aid is
greater  than nineteen percent (0.19), and where the district's combined
wealth ratio is less than  thirty-three  hundredths  (0.33),  seven  and
seventy-five  hundredths percent (0.0775); or (3) for any other district
designated as high need pursuant to clause (c) of  subparagraph  two  of
paragraph  c  of  subdivision  six  of  this  section for the school aid
computer listing produced by the commissioner in support of the  enacted
budget  for  the  two thousand seven--two thousand eight school year and
entitled "SA0708", four  percent  (0.04);  or  (4)  for  a  city  school
district  in a city having a population of one hundred twenty-five thou-
sand or more but less than one million, fourteen percent (0.14); or  (5)
for school districts that were designated as small city school districts
or  central  school  districts  whose  boundaries include a portion of a
small city for the school aid computer listing produced by  the  commis-
sioner  in support of the enacted budget for the two thousand fourteen--
two thousand fifteen school year and entitled "SA1415", four  and  seven
hundred  fifty-  one thousandths percent (0.04751); or (6) for all other
districts one percent (0.01), and  for  the  two  thousand  sixteen--two
thousand  seventeen  school  year  and thereafter the commissioner shall
annually determine the phase-in foundation increase  factor  subject  to
allocation  pursuant  to  the provisions of subdivision eighteen of this
section and any provisions of a chapter of  the  laws  of  New  York  as
described  therein, EXCEPT THAT FOR MAISTO DISTRICTS IN THE TWO THOUSAND
SEVENTEEN--TWO THOUSAND  EIGHTEEN  SCHOOL  YEAR  TWENTY-FIVE  HUNDREDTHS
PERCENT  (0.0025),  IN  THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
SCHOOL YEAR FIVE HUNDREDTHS PERCENT (0.0050), IN THE TWO THOUSAND  NINE-
TEEN--TWO  THOUSAND  TWENTY  SCHOOL YEAR SEVENTY-FIVE HUNDREDTHS PERCENT
(0.0075) AND IN THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE  SCHOOL
YEAR AND THEREAFTER ONE HUNDRED HUNDREDTHS PERCENT (0.0100).
  S  6-a.  The  opening  paragraph,  subparagraph  1 of paragraph a, and
clause (ii) of subparagraph 2 of paragraph b of subdivision 4 of section
3602 of the education law, as amended by section 7 of part A of  chapter
54 of the laws of 2016, are amended to read as follows:
  In  addition  to  any  other apportionment pursuant to this chapter, a
school district, other than a special act school district as defined  in
subdivision eight of section four thousand one of this chapter, shall be
eligible  for total foundation aid equal to the product of total aidable
foundation pupil units multiplied by the district's selected  foundation
aid,  which shall be the greater of five hundred dollars ($500) or foun-
dation formula aid, provided, however that for the two thousand  seven--
two  thousand eight through two thousand eight--two thousand nine school
years, no school district shall receive total foundation aid  in  excess
of  the  sum of the total foundation aid base for aid payable in the two

S. 7597                             7

thousand seven--two thousand eight  school  year  computed  pursuant  to
subparagraph (i) of paragraph j of subdivision one of this section, plus
the  phase-in  foundation  increase  computed pursuant to paragraph b of
this subdivision, and provided further that for the two thousand twelve-
-two  thousand  thirteen  school  year, no school district shall receive
total foundation aid in excess of the sum of the  total  foundation  aid
base  for  aid  payable  in the two thousand eleven--two thousand twelve
school year computed pursuant to subparagraph (ii)  of  paragraph  j  of
subdivision  one  of this section, plus the phase-in foundation increase
computed pursuant to paragraph  b  of  this  subdivision,  and  provided
further that for the two thousand thirteen--two thousand fourteen school
year  and  thereafter, no school district shall receive total foundation
aid in excess of the sum of  the  total  foundation  aid  base  computed
pursuant  to subparagraph (ii) of paragraph j of subdivision one of this
section, plus the phase-in  foundation  increase  computed  pursuant  to
paragraph  b  of this subdivision, and provided further that for the two
thousand sixteen--two thousand seventeen school year, no eligible school
districts shall receive total foundation aid in excess of the sum of the
total foundation aid base computed  pursuant  to  subparagraph  (ii)  of
paragraph  j  of subdivision one of this section plus the sum of (A) the
phase-in foundation increase, (B) the executive foundation increase with
a minimum increase pursuant to paragraph b-2 of  this  subdivision,  and
(C)  an  amount equal to "COMMUNITY SCHOOLS AID" in the computer listing
produced by the commissioner in support of the executive budget  request
for  the  two  thousand  sixteen--two thousand seventeen school year and
entitled "BT161-7",  where  (1)  "eligible  school  district"  shall  be
defined as a district with (a) an unrestricted aid increase of less than
seven percent (0.07) and (b) a three year average free and reduced price
lunch percent greater than fifteen percent (0.15), and (2) "unrestricted
aid  increase"  shall mean the quotient arrived at when dividing (a) the
sum of the executive foundation aid increase plus  the  gap  elimination
adjustment  for  the  base year, by (b) the difference of foundation aid
for the base year less the gap elimination adjustment for the base year,
and (3) "executive foundation increase" shall mean the difference of (a)
the amounts set forth for each school district as "FOUNDATION AID" under
the heading "2016-17 ESTIMATED AIDS" in the school aid computer  listing
produced  by the commissioner in support of the executive budget request
for the two thousand sixteen--two thousand  seventeen  school  year  and
entitled  "BT161-7"  less  (b)  the  amounts  set  forth for each school
district as "FOUNDATION AID" under the heading "2015-16 BASE YEAR  AIDS"
in  such computer listing and provided further that total foundation aid
shall not be less than the product of  the  total  foundation  aid  base
computed  pursuant to paragraph j of subdivision one of this section and
the due-minimum percent which shall be, for the two thousand twelve--two
thousand thirteen  school  year,  one  hundred  and  six-tenths  percent
(1.006)  and for the two thousand thirteen--two thousand fourteen school
year for city school districts of those  cities  having  populations  in
excess  of  one  hundred  twenty-five thousand and less than one million
inhabitants one hundred and one and one hundred  and  seventy-six  thou-
sandths  percent  (1.01176), and for all other districts one hundred and
three-tenths percent (1.003), and for  the  two  thousand  fourteen--two
thousand  fifteen  school  year  one  hundred and eighty-five hundredths
percent (1.0085), and for the two thousand fifteen--two thousand sixteen
school year,  one  hundred  thirty-seven  hundredths  percent  (1.0037),
subject to allocation pursuant to the provisions of subdivision eighteen
of  this section and any provisions of a chapter of the laws of New York

S. 7597                             8

as described therein, nor more than the product of such total foundation
aid base and one hundred fifteen percent, provided,  however,  that  for
the  two thousand sixteen--two thousand seventeen school year such maxi-
mum shall be no more than the sum of (i) the product of such total foun-
dation  aid base and one hundred fifteen percent plus (ii) the executive
foundation increase and  plus  (iii)  "COMMUNITY  SCHOOLS  AID"  in  the
computer  listing  produced by the commissioner in support of the execu-
tive budget request for the two thousand sixteen--two thousand seventeen
school year and entitled "BT161-7", EXCEPT FOR  MAISTO  DISTRICTS  WHICH
SHALL  BE ONE HUNDRED TWENTY-FIVE PERCENT, and provided further that for
the two thousand nine--two thousand ten through two thousand eleven--two
thousand twelve school years, each school district shall  receive  total
foundation  aid  in  an  amount  equal to the amount apportioned to such
school district for the two thousand  eight--two  thousand  nine  school
year  pursuant to this subdivision. Total aidable foundation pupil units
shall be calculated pursuant to paragraph g of subdivision two  of  this
section.  For  the purposes of calculating aid pursuant to this subdivi-
sion, aid for the city school district of the city of New York shall  be
calculated on a citywide basis.
  (1)  The foundation amount shall reflect the average per pupil cost of
general education instruction in successful school districts, as  deter-
mined  by  a  statistical analysis of the costs of special education and
general education in successful  school  districts,  provided  that  the
foundation  amount  shall be adjusted annually to reflect the percentage
increase in the consumer price index as computed pursuant to section two
thousand twenty-two of this chapter, provided that for the two  thousand
eight--two  thousand  nine  school year, for the purpose of such adjust-
ment, the percentage increase in  the  consumer  price  index  shall  be
deemed  to  be two and nine-tenths percent (0.029), and provided further
that the foundation amount for  the  two  thousand  seven--two  thousand
eight  school  year  shall  be  five  thousand  two  hundred fifty-eight
dollars, and provided further that for the two thousand seven--two thou-
sand eight through two thousand sixteen--two thousand  seventeen  school
years,  AND FOR THE MAISTO DISTRICTS FOR THE TWO THOUSAND SEVENTEEN--TWO
THOUSAND EIGHTEEN THROUGH TWO THOUSAND TWENTY--TWO  THOUSAND  TWENTY-ONE
SCHOOL  YEARS,  the  foundation  amount shall be further adjusted by the
phase-in foundation percent established pursuant to paragraph b of  this
subdivision.
  (ii)  Phase-in  foundation  increase  factor.  For  the  two  thousand
eleven--two  thousand  twelve  school  year,  the  phase-in   foundation
increase  factor  shall  equal thirty-seven and one-half percent (0.375)
and the phase-in due minimum percent shall equal nineteen and  forty-one
hundredths  percent  (0.1941), for the two thousand twelve--two thousand
thirteen school year the phase-in foundation increase factor shall equal
one and seven-tenths percent (0.017), for the two thousand thirteen--two
thousand fourteen school year the phase-in  foundation  increase  factor
shall equal (1) for a city school district in a city having a population
of  one  million  or  more,  five  and  twenty-three  hundredths percent
(0.0523) or (2) for all other school districts zero percent, for the two
thousand fourteen--two thousand fifteen school year the phase-in founda-
tion increase factor shall equal (1) for a city  school  district  of  a
city  having  a  population  of one million or more, four and thirty-two
hundredths percent (0.0432) or (2) for a school district  other  than  a
city  school  district  having  a  population of one million or more for
which (A) the quotient of the  positive  difference  of  the  foundation
formula aid minus the foundation aid base computed pursuant to paragraph

S. 7597                             9

j  of  subdivision one of this section divided by the foundation formula
aid is greater than twenty-two percent (0.22) and (B) a combined  wealth
ratio  less  than thirty-five hundredths (0.35), seven percent (0.07) or
(3)  for  all  other  school  districts,  four and thirty-one hundredths
percent (0.0431), and for the two thousand fifteen--two thousand sixteen
school year the phase-in foundation increase factor shall equal: (1) for
a city school district of a city having a population of one  million  or
more,   thirteen   and  two  hundred  seventy-four  thousandths  percent
(0.13274); or (2) for districts  where  the  quotient  arrived  at  when
dividing  (A)  the  product  of the total aidable foundation pupil units
multiplied by the district's selected  foundation  aid  less  the  total
foundation  aid base computed pursuant to paragraph j of subdivision one
of this section divided by (B) the product of the total aidable  founda-
tion pupil units multiplied by the district's selected foundation aid is
greater  than nineteen percent (0.19), and where the district's combined
wealth ratio is less than thirty-three hundredths PERCENT (0.33),  seven
and  seventy-five  hundredths  percent  (0.0775);  or  (3) for any other
district designated as high need pursuant to clause (c) of  subparagraph
two of paragraph c of subdivision six of this section for the school aid
computer  listing produced by the commissioner in support of the enacted
budget for the two thousand seven--two thousand eight  school  year  and
entitled  "SA0708",  four  percent  (0.04);  or  (4)  for  a city school
district in a city having a population of one hundred twenty-five  thou-
sand  or more but less than one million, fourteen percent (0.14); or (5)
for school districts that were designated as small city school districts
or central school districts whose boundaries  include  a  portion  of  a
small  city  for the school aid computer listing produced by the commis-
sioner in support of the enacted budget for the two thousand  fourteen--
two  thousand  fifteen school year and entitled "SA1415", four and seven
hundred fifty-one thousandths percent (0.04751); or (6)  for  all  other
districts  one  percent  (0.01),  and  for the two thousand sixteen--two
thousand seventeen school  year  shall  equal  for  an  eligible  school
district the greater of: (1) for a city school district in a city with a
population  of  one million or more, seven and seven hundred eighty four
thousandths percent (0.07784); or (2) for a city school  district  in  a
city  with a population of more than two hundred fifty thousand but less
than one million as of the most recent federal decennial  census,  seven
and three hundredths percent (0.0703); or (3) for a city school district
in  a  city with a population of more than two hundred thousand but less
than two hundred fifty thousand as of the most recent federal  decennial
census,  six  and  seventy-two hundredths percent (0.0672); or (4) for a
city school district in a city  with  a  population  of  more  than  one
hundred fifty thousand but less than two hundred thousand as of the most
recent federal decennial census, six and seventy-four hundredths percent
(0.0674);  or (5) for a city school district in a city with a population
of more than one hundred twenty-five thousand but less than one  hundred
fifty  thousand as of the most recent federal decennial census, nine and
fifty-five hundredths percent (0.0955); or (6) for school districts that
were designated  as  small  city  school  districts  or  central  school
districts  whose  boundaries  include  a portion of a small city for the
school aid computer listing produced by the commissioner in  support  of
the  enacted  budget for the two thousand fourteen--two thousand fifteen
school year and entitled "SA141-5" with a  combined  wealth  ratio  less
than  one and four tenths (1.4), nine percent (0.09), provided, however,
that for such districts that are also districts designated as high  need
urban-suburban pursuant to clause (c) of subparagraph two of paragraph c

S. 7597                            10

of  subdivision  six of this section for the school aid computer listing
produced by the commissioner in support of the enacted  budget  for  the
two   thousand  seven--two  thousand  eight  school  year  and  entitled
"SA0708",  nine  and  seven  hundred  and  nineteen  thousandths percent
(0.09719); or (7) for school districts designated  as  high  need  rural
pursuant to clause (c) of subparagraph two of paragraph c of subdivision
six  of this section for the school aid computer listing produced by the
commissioner in support of the  enacted  budget  for  the  two  thousand
seven--two  thousand  eight  school year and entitled "SA0708", thirteen
and six tenths percent (0.136); or (8) for school  districts  designated
as  high  need urban-suburban pursuant to clause (c) of subparagraph two
of paragraph c of subdivision six of this section  for  the  school  aid
computer  listing produced by the commissioner in support of the enacted
budget for the two thousand seven--two thousand eight  school  year  and
entitled "SA0708", seven hundred nineteen thousandths percent (0.00719);
or  (9)  for all other eligible school districts, forty-seven hundredths
percent (0.0047) and for the two thousand seventeen--two thousand  eigh-
teen  school  year and thereafter the commissioner shall annually deter-
mine the phase-in  foundation  increase  factor  subject  to  allocation
pursuant  to  the provisions of subdivision eighteen of this section and
any provisions of a chapter  of  the  laws  of  New  York  as  described
therein,  EXCEPT  THAT  FOR  MAISTO DISTRICTS IN THE TWO THOUSAND SEVEN-
TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR TWENTY-FIVE  HUNDREDTHS  PERCENT
(0.0025),  IN  THE  TWO  THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL
YEAR FIVE HUNDREDTHS PERCENT (0.0050), IN THE TWO THOUSAND NINETEEN--TWO
THOUSAND TWENTY SCHOOL YEAR SEVENTY-FIVE HUNDREDTHS PERCENT (0.0075) AND
IN THE TWO THOUSAND TWENTY--TWO  THOUSAND  TWENTY-ONE  SCHOOL  YEAR  AND
THEREAFTER ONE HUNDRED HUNDREDTHS PERCENT (0.0100).
  S  7.  Section  3602  of  the education law is amended by adding a new
subdivision 42 to read as follows:
  42. MAISTO DISTRICT CREDIT RECOVERY AID. COMMENCING WITH  AID  PAYABLE
IN THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR THROUGH
THE  TWO  THOUSAND  TWENTY--TWO  THOUSAND  TWENTY-ONE SCHOOL YEAR MAISTO
DISTRICTS SHALL BE ELIGIBLE FOR AN ADDITIONAL APPORTIONMENT AS  PROVIDED
FOR  IN  THIS SUBDIVISION. SUCH DISTRICTS SHALL BE ELIGIBLE FOR AN ADDI-
TIONAL APPORTIONMENT IN AN AMOUNT EQUAL TO  THE  PRODUCT  OF  THE  TOTAL
NUMBER  OF STUDENTS IN THE TWO THOUSAND THIRTEEN, TWO THOUSAND FOURTEEN,
TWO THOUSAND FIFTEEN AND TWO THOUSAND SIXTEEN COHORTS MULTIPLIED BY  ONE
MINUS  THE FOUR YEAR GRADUATION RATE FOR THE YEAR PRIOR TO THE BASE YEAR
AND TWO THOUSAND FIVE HUNDRED ($2,500) DOLLARS TO BE USED  FOR  PROGRAMS
WITH  RESPECT  TO  SUCH  STUDENTS  APPROVED  BY THE COMMISSIONER FOR THE
FOLLOWING PURPOSES:
  A. CREDIT RECOVERY PROGRAMS;
  B. ACADEMIC INTERVENTION SERVICES;
  C. RESPONSE TO INTERVENTION SERVICES;
  D. DROP OUT PREVENTION;
  E. INCARCERATED YOUTH SERVICES;
  F. PARENT INVOLVEMENT PROGRAMS;
  G. EXTENDED DAY AND EXTENDED YEAR PROGRAMS; AND
  H. PSYCHO-SOCIAL TESTING.
  S 8. Section 2530 of the education law, as amended by chapter  171  of
the laws of 1996, is amended to read as follows:
  S 2530. Power  to  contract  indebtedness.   Each city school district
shall be authorized to expend money for any of the objects  or  purposes
which  it  is  authorized  to accomplish by law and may contract indebt-
edness in its name pursuant to the local finance law, INCLUDING BUT  NOT

S. 7597                            11

LIMITED  TO  THE  ISSUANCE  OF  BONDS OF THE DISTRICT OR OF THE NEW YORK
STATE ASSOCIATION  OF  SMALL  CITY  SCHOOL  DISTRICTS,  ITS  AFFILIATES,
SUBSIDIARIES OR SUBDIVISIONS THEREOF TO BE REPAID BY REVENUES FROM MAIS-
TO  DISTRICT  CREDIT  RECOVERY  AID PURSUANT TO SUBDIVISION FORTY-TWO OF
SECTION THIRTY-SIX HUNDRED TWO  OF  THIS  CHAPTER.  NOTWITHSTANDING  ANY
OTHER  PROVISION  OF  LAW  TO  THE CONTRARY, EACH DISTRICT, THE NEW YORK
STATE ASSOCIATION  OF  SMALL  CITY  SCHOOL  DISTRICTS,  AND  AFFILIATES,
SUBSIDIARIES  OR  SUBDIVISIONS  THEREOF  SHALL HAVE THE POWER TO PLEDGE,
ASSIGN OR OTHERWISE MAKE AVAILABLE AS  SECURITY  FOR  SUCH  INDEBTEDNESS
WITHOUT  CONSIDERATION, REVENUES FROM STATE AID UNDER SUBDIVISION FORTY-
TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THIS CHAPTER AND BONDS OR OTHER
INDEBTEDNESS IN CONNECTION WITH SUCH  SUBDIVISION  FORTY-TWO  SHALL  NOT
REQUIRE  VOTER APPROVAL.  The provisions of section four hundred sixteen
of this chapter shall be applicable to such districts.
  S 9. Paragraph a of section 11.00 of the local finance law is  amended
by adding a new subparagraph 108 to read as follows:
  108.  PAYMENT  BY SMALL CITY SCHOOL DISTRICTS FOR OBJECTS AND PURPOSES
SET FORTH IN SUBDIVISION FORTY-TWO OF SECTION THIRTY-SIX HUNDRED TWO  OF
THE EDUCATION LAW AND AUTHORIZED UNDER SECTION TWENTY-FIVE HUNDRED THIR-
TY OF THE EDUCATION LAW, TEN YEARS.
  S  10.  Paragraph  (b)  of subdivision 2 of section 1676 of the public
authorities law is amended by adding a  new  undesignated  paragraph  to
read as follows:
  MAISTO  DISTRICTS  AS  DEFINED  BY  PARAGRAPH II OF SUBDIVISION ONE OF
SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW  AND  THE  NEW  YORK
STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS AS DEFINED BY PARAGRAPH
HH OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION
LAW, AND AFFILIATES, SUBSIDIARIES OR SUBDIVISIONS THEREOF.
  S  11.  Subdivision 1 of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
  MAISTO DISTRICTS AS DEFINED BY PARAGRAPH  II  OF  SUBDIVISION  ONE  OF
SECTION  THIRTY-SIX  HUNDRED  TWO  OF THE EDUCATION LAW AND THE NEW YORK
STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS AS DEFINED BY PARAGRAPH
HH OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION
LAW, AND AFFILIATES, SUBSIDIARIES OR SUBDIVISIONS THEREOF.
  S 12. Section 1680 of the public authorities law is amended by  adding
a new subdivision 41 to read as follows:
  41. A. THE DORMITORY AUTHORITY MAY ENTER CONTRACTS TO LOAN TO OR OTHER
AGREEMENTS  WITH THE MAISTO DISTRICTS, THE NEW YORK STATE ASSOCIATION OF
SMALL CITY SCHOOL DISTRICTS, AND AFFILIATES,  SUBSIDIARIES  OR  SUBDIVI-
SIONS  THEREOF FOR THE FINANCING OF PROGRAMS AS SPECIFIED IN SUBDIVISION
FORTY-TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW INCLUD-
ING:
  (1) CREDIT RECOVERY PROGRAMS;
  (2) ACADEMIC INTERVENTION SERVICES;
  (3) RESPONSE TO INTERVENTION SERVICES;
  (4) DROP OUT PREVENTION;
  (5) INCARCERATED YOUTH SERVICES;
  (6) PARENT INVOLVEMENT PROGRAMS;
  (7) EXTENDED DAY AND EXTENDED YEAR PROGRAMS; AND
  (8) PSYCHO-SOCIAL TESTING.
SUCH PROGRAMS SHALL BE SUBJECT TO THE APPROVAL OF  THE  COMMISSIONER  OF
EDUCATION.
  B.  EACH MAISTO DISTRICT, THE NEW YORK STATE ASSOCIATION OF SMALL CITY
SCHOOL DISTRICTS, AND AFFILIATES, SUBSIDIARIES OR  SUBDIVISIONS  THEREOF
SHALL,  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, HAVE THE POWER TO

S. 7597                            12

PLEDGE, ASSIGN OR OTHERWISE MAKE AVAILABLE TO  THE  DORMITORY  AUTHORITY
WITHOUT  CONSIDERATION, REVENUES FROM STATE AID UNDER SUBDIVISION FORTY-
TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW  SATISFACTORY
TO THE DORMITORY AUTHORITY.
  C. IN ADDITION TO PROVIDING FOR ALL OTHER MATTERS DEEMED NECESSARY AND
PROPER,  SUCH  CONTRACTS  TO LOAN OR OTHER AGREEMENTS SHALL: (1) REQUIRE
PAYMENT TO THE DORMITORY AUTHORITY THE AMOUNT REQUIRED TO PAY THE  PRIN-
CIPAL  OF  AND INTEREST ON OBLIGATIONS OF THE DORMITORY AUTHORITY ISSUED
IN RELATION TO PROVIDING SUCH FINANCING AND ALL INCIDENTAL  EXPENSES  OF
THE  DORMITORY  AUTHORITY  INCURRED  IN  RELATION  THERETO;  (2) REQUIRE
PAYMENT SUFFICIENT TO MEET OBLIGATIONS UNDER SUCH CONTRACTS TO  LOAN  OR
OTHER  AGREEMENTS;  (3)  PROVIDE  THAT THE AID PAYABLE UNDER SUBDIVISION
FORTY-TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION  LAW  SHALL
BE THE SOLE SECURITY FOR SUCH FINANCING AND ALL INCIDENTAL EXPENSES; AND
(4) NOT BE EXECUTED UNTIL SUCH PROGRAMS ARE APPROVED BY THE COMMISSIONER
OF EDUCATION.
  D.  (1)  IN  THE  EVENT  THAT THE MAISTO DISTRICTS, THE NEW YORK STATE
ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS, AND AFFILIATES, SUBSIDIARIES
OR SUBDIVISIONS THEREOF FAIL TO MAKE ANY PAYMENT OF PRINCIPAL OR  INTER-
EST  ON  ITS  OBLIGATIONS,  THE DORMITORY AUTHORITY SHALL CERTIFY TO THE
COMPTROLLER OF SUCH FAILURE. SUCH CERTIFICATE SHALL BE IN SUCH  FORM  AS
THE  AUTHORITY  DEEMS  DESIRABLE,  BUT SHALL INCLUDE THE EXACT AMOUNT OF
INTEREST AND PRINCIPAL  REQUIRED  TO  SATISFY  THE  OBLIGATIONS  TO  THE
AUTHORITY.
  (2) THE COMPTROLLER, UPON RECEIPT OF SUCH CERTIFICATE FROM THE AUTHOR-
ITY,  SHALL WITHHOLD FROM THE MAISTO DISTRICTS, THE NEW YORK STATE ASSO-
CIATION OF SMALL CITY SCHOOL DISTRICTS, AND AFFILIATES, SUBSIDIARIES  OR
SUBDIVISIONS  THEREOF ANY STATE AID PAYABLE TO SUCH ENTITY TO THE EXTENT
NECESSARY TO MEET THE CERTIFIED AMOUNT  OF  INTEREST  OR  PRINCIPAL  AND
SHALL IMMEDIATELY PAY OVER TO THE CREDIT RECOVERY FINANCING RESERVE FUND
THE AMOUNT SO WITHHELD.
  (3)  PENDING PAYMENT TO THE AUTHORITY FROM THE COMPTROLLER OF ANY SUCH
STATE AID WITHHELD, THE AUTHORITY SHALL,  IF  PAYMENTS  OF  INTEREST  OR
PRINCIPAL  ARE  DUE  ON THE AUTHORITY'S BONDS, WITHDRAW AN AMOUNT SUFFI-
CIENT TO MEET SUCH AMOUNTS WITHHELD FROM THE DEBT SERVICE  RESERVE  FUND
SECURING  SUCH  BONDS.  ANY SUCH AMOUNT WITHDRAWN FROM SUCH DEBT SERVICE
RESERVE FUND SHALL BE PAID INTO SUCH  DEBT  SERVICE  RESERVE  FUND  UPON
RECEIPT  BY  THE  AGENCY FROM THE COMPTROLLER OF ANY STATE AID WITHHELD.
ANY AMOUNT SO PAID TO THE AUTHORITY FROM SUCH STATE AID SHALL NOT  OBLI-
GATE  THE  STATE TO MAKE, NOR ENTITLE THE MAISTO DISTRICTS, THE NEW YORK
STATE ASSOCIATION  OF  SMALL  CITY  SCHOOL  DISTRICTS,  AND  AFFILIATES,
SUBSIDIARIES  OR SUBDIVISIONS THEREOF TO RECEIVE, ANY ADDITIONAL AMOUNTS
OF STATE AID.
  E. ON OR BEFORE NOVEMBER FIFTEENTH OF EACH YEAR, THE DORMITORY AUTHOR-
ITY SHALL SUBMIT, AND THEREAFTER MAY RESUBMIT, TO THE  DIRECTOR  OF  THE
BUDGET,  THE  STATE  COMPTROLLER,  THE  CHAIRMAN  OF  THE SENATE FINANCE
COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND  MEANS  COMMITTEE  A
REPORT  SETTING  FORTH  THE AMOUNTS, IF ANY, OF ALL AMOUNTS ESTIMATED TO
BECOME DUE IN THE SUCCEEDING STATE FISCAL YEAR TO THE DORMITORY AUTHORI-
TY FROM EACH MAISTO DISTRICT, THE NEW YORK STATE  ASSOCIATION  OF  SMALL
CITY  SCHOOL  DISTRICTS,  AND  AFFILIATES,  SUBSIDIARIES OR SUBDIVISIONS
THEREOF PURSUANT TO SUCH CONTRACTS TO  LOAN  OR  OTHER  AGREEMENTS.  THE
STATE COMPTROLLER SHALL PAY OVER TO THE DORMITORY AUTHORITY, PURSUANT TO
APPROPRIATIONS  THEREFOR  AND SOLELY FROM MONEYS AVAILABLE IN THE CREDIT
RECOVERY FINANCING RESERVE FUND ESTABLISHED BY SECTION NINETY-NINE-Z  OF
THE  STATE FINANCE LAW, THE AMOUNT SET FORTH IN SUCH REPORT AT THE TIMES

S. 7597                            13

AND IN THE AMOUNTS SET FORTH IN THE CERTIFICATE  FILED  WITH  THE  COMP-
TROLLER BY THE DORMITORY AUTHORITY.
  F.  EACH MAISTO DISTRICT, THE NEW YORK STATE ASSOCIATION OF SMALL CITY
SCHOOL DISTRICTS, AND AFFILIATES, SUBSIDIARIES OR  SUBDIVISIONS  THEREOF
WHICH  ELECTS  TO  AVAIL  ITSELF OF THE PROVISIONS OF THIS SECTION SHALL
HAVE ESTABLISHED WITH THE STATE COMPTROLLER A CREDIT RECOVERY  FINANCING
RESERVE  ACCOUNT  WHICH  SHALL BE USED TO PAY TO THE DORMITORY AUTHORITY
THE ANNUAL  AMOUNTS  PAYABLE  TO  THE  DORMITORY  AUTHORITY  UNDER  SUCH
CONTRACTS TO LOAN OR OTHER AGREEMENTS PURSUANT TO THE PROVISIONS OF THIS
SECTION AND SECTION NINETY-NINE-Z OF THE STATE FINANCE LAW. THE DORMITO-
RY  AUTHORITY SHALL IDENTIFY TO THE STATE COMPTROLLER AND TO THE COMMIS-
SIONER  OF  EDUCATION  WITH  RESPECT  TO  SUCH  FINANCING,  EACH  MAISTO
DISTRICT, THE NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS,
AND  AFFILIATES,  SUBSIDIARIES OR SUBDIVISIONS THEREOF WITH WHICH IT HAS
SUCH CONTRACTS TO LOAN OR OTHER AGREEMENTS PURSUANT TO THIS SECTION  AND
SHALL  ANNUALLY CERTIFY THE AMOUNTS REQUIRED TO BE PAID PURSUANT TO SUCH
CONTRACTS TO LOAN OR OTHER AGREEMENTS.
  G. ALL STATE AND LOCAL OFFICIALS ARE AUTHORIZED AND REQUIRED  TO  TAKE
WHATEVER  ACTIONS  ARE  NECESSARY  TO  CARRY  OUT THE PROVISIONS OF THIS
SECTION AND THE PROVISIONS OF ANY CONTRACT TO LOAN OR  OTHER  AGREEMENTS
ENTERED  INTO  PURSUANT  TO  THIS SECTION, INCLUDING MAKING THE REQUIRED
PAYMENTS TO THE DORMITORY AUTHORITY.
  S 13. The state finance law is amended by adding a new section 99-z to
read as follows:
  S 99-Z. CREDIT RECOVERY FINANCING RESERVE FUND.  1.  THERE  IS  HEREBY
ESTABLISHED IN THE CUSTODY OF THE STATE COMPTROLLER A SPECIAL FUND TO BE
KNOWN  AS  THE CREDIT RECOVERY FINANCING RESERVE FUND. WITHIN SUCH FUND,
THERE IS HEREBY ESTABLISHED A SPECIAL ACCOUNT FOR EACH MAISTO  DISTRICT,
THE  NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL DISTRICTS, AND EACH
AFFILIATE,  SUBSIDIARY  OR  SUBDIVISION  THEREOF  WHICH  ENTERS  INTO  A
CONTRACT  TO LOAN OR OTHER AGREEMENT WITH THE DORMITORY AUTHORITY PURSU-
ANT TO THIS SECTION.
  2. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,  SUCH  FUND  SHALL
CONSIST OF AID PAYABLE UNDER SUBDIVISION FORTY-TWO OF SECTION THIRTY-SIX
HUNDRED TWO OF THE EDUCATION LAW.  THE COMPTROLLER SHALL MAINTAIN SUFFI-
CIENT  AMOUNTS  IN  THE FUND IN ORDER TO PAY WHEN DUE AMOUNTS DUE TO THE
DORMITORY AUTHORITY PURSUANT TO ANY CONTRACT TO LOAN OR OTHER  AGREEMENT
ENTERED  INTO  PURSUANT TO THE PROVISIONS OF THIS SECTION. THE DORMITORY
AUTHORITY SHALL CERTIFY TO THE STATE COMPTROLLER THE DATES AND AMOUNT OF
SUCH ANNUAL PAYMENTS AS SCHEDULED IN ITS  CONTRACTS  TO  LOAN  OR  OTHER
AGREEMENTS.    THE COMMISSIONER OF EDUCATION SHALL CERTIFY THE AMOUNT OF
PAYMENTS DUE THE FUND FROM AID PAYABLE UNDER  SUBDIVISION  FORTY-TWO  OF
SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.
  3.  REVENUES  IN  ANY SPECIAL ACCOUNT IN THE CREDIT RECOVERY FINANCING
RESERVE FUND MAY BE COMMINGLED WITH ANY OTHER MONIES IN SUCH  FUND.  ALL
DEPOSITS  OF  SUCH  REVENUES  WITH  BANKS  AND  TRUST COMPANIES SHALL BE
SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE OF NEW  YORK
OR  ITS  POLITICAL  SUBDIVISIONS.  SUCH  OBLIGATIONS SHALL HAVE A MARKET
VALUE AT LEAST EQUAL AT ALL TIMES TO, BUT NOT  LESS  THAN,  ONE  HUNDRED
FIVE  PERCENT OF THE AMOUNT OF SUCH DEPOSITS. ALL BANKS AND TRUST COMPA-
NIES ARE AUTHORIZED TO GIVE SECURITY FOR SUCH DEPOSITS. ANY SUCH  REVEN-
UES  IN SUCH FUND MAY, IN THE DISCRETION OF THE COMPTROLLER, BE INVESTED
IN OBLIGATIONS OF THE UNITED STATES OR  THE  STATE  OR  OBLIGATIONS  THE
PRINCIPAL  OF  AND INTEREST ON WHICH ARE GUARANTEED BY THE UNITED STATES
OR BY THE STATE.  ANY INTEREST EARNED SHALL BE CREDITED TO SUCH FUND.

S. 7597                            14

  4. UPON RECEIPT BY THE COMPTROLLER OF A  CERTIFICATE  OR  CERTIFICATES
FROM THE DORMITORY AUTHORITY THAT IT REQUIRES A PAYMENT OR PAYMENTS FROM
THE  APPROPRIATE  SPECIAL  ACCOUNT IN ORDER FOR ANY MAISTO DISTRICT, THE
NEW YORK STATE ASSOCIATION OF SMALL CITY SCHOOL  DISTRICTS,  AND  AFFIL-
IATES, SUBSIDIARIES OR SUBDIVISIONS THEREOF TO COMPLY WITH SUCH CONTRACT
TO  LOAN  OR  OTHER  AGREEMENT  PURSUANT  TO THIS SECTION, EACH OF WHICH
CERTIFICATES SHALL SPECIFY THE REQUIRED PAYMENT OR PAYMENTS AND THE DATE
WHEN THE PAYMENT OR PAYMENTS IS REQUIRED, THE COMPTROLLER SHALL PAY FROM
SUCH SPECIAL ACCOUNT ON OR BEFORE THE SPECIFIED DATE  OR  WITHIN  THIRTY
DAYS  AFTER  RECEIPT  OF  SUCH CERTIFICATE OR CERTIFICATES, WHICHEVER IS
LATER, TO THE PAYING AGENT DESIGNATED BY THE DORMITORY AUTHORITY IN  ANY
SUCH CERTIFICATE, THE AMOUNT OR AMOUNTS SO CERTIFIED.
  5.  ALL  PAYMENTS  OF MONEY FROM THE CREDIT RECOVERY FINANCING RESERVE
FUND SHALL BE MADE ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER.
  S 14. This act shall take effect  July  1,  2016;  provided,  however,
that:
  a. section six of this act shall take effect July 1, 2017; and
  b.  the  amendments  to the opening paragraph, subparagraph 1 of para-
graph a and clause (ii) of subparagraph 2 of paragraph b made by section
six-a of this act shall take effect on the same date  and  in  the  same
manner  as  section 7 of part A of chapter 54 of the laws of 2016, takes
effect.