NY State Senate Bill 2017-S1062

Senate Bill S1062

2017-2018 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to education
Jan 06, 2017	referred to education

co-Sponsors

2017-S1062 (ACTIVE) - Details

See Assembly Version of this Bill:: A6473
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §4405, Ed L; add §97-rrrr, St Fin L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5661
2015-2016: S860
2019-2020: A582
2021-2022: A5996

2017-S1062 (ACTIVE) - Summary

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

2017-S1062 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1062

 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 index tuition rates paid to certain special education schools to
the personal income growth index, 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 1. Adds two new paragraphs k and 1 to subdivision 4 of section
4405 of the education law to provide a tuition rate based on the
personal income growth index and 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,
respectively.

Section 2. Adds a new section 97-qqqq to the state finance law to
establish a special education provider revolving loan fund under the

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

Section 3. 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 :

2015-16: S860 - Education Committee
2013-14: S5661-A - Education Committee

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S1062 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1062
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced by Sens. CARLUCCI, ADDABBO -- 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 k and l to read as follows:
   K.  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 SEVENTEEN--EIGHTEEN 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.
   L.  ALL  RECONCILIATION  RATES  FILED  AFTER  JULY FIRST, TWO THOUSAND
 SEVENTEEN 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.
   §  2. The state finance law is amended by adding a new section 97-rrrr
 to read as follows:
   § 97-RRRR. 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.

                                                            LBD01807-01-7

 S. 1062                             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.
   § 3. This act shall take effect immediately.

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Senate Bill S1062

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Sponsored By

David Carlucci