Senate Bill S5497

                                
 
BILL NUMBER: S5497

SPONSOR: SKOUFIS
 
TITLE OF BILL:  An act to amend the education law, in relation to what
positions constitute chief financial officer of a school district

 
PURPOSE:

To define in the education law the role of the chief financial officer
of a school district and to define what positions constitute the posi-
tion of chief financial officer.

 
SUMMARY OF PROVISIONS:

Section one amends the education law by adding a new section 2131, which
provides the definition of a chief financial officer (CFO) of a school
district. A CFO shall mean and include, but not be limited to, the
assistant superintendent for business, school business administrator,
school business officer, or other similar official that reports directly
to the superintendent and holds either the appropriate certification as
required by the department for a school district administrator, school
              

business administrator, or school district business leader, or other
person holding an appropriate certificate as a determined by the depart-
ment, or a school business manager or person holding a similar title in
a civil service position.

Section two provides the effective date.

 
JUSTIFICATION:

School districts are complex multi-million dollar operations that
require the expertise of professionals with business, accounting or
financial backgrounds, and an education background. This expertise is
provided by district staff with various titles like Assistant Super-
intendent of Business, School Business Manager or Director of Finance,
all serving the role of Chief Financial Officer (CFO).

Over the past several years (particularly since the advent of the tax
cap), various guidance documents from state agencies refer to the func-
tions or the role of the Chief Financial Officer, although no such posi-
tion is defined in the education law.

This legislation will rectify this oversight by simply defining the CFO
by who commonly fulfills that role in school districts, namely the
Assistant Superintendent for Business, School Business Manager, or
Director of Finance. The bill does not require school districts to have
a CFO; it simply defines that position in the education law. Given the
ongoing fiscal stress that many school districts face and the annual
discussions over school finances, state aid, and the tax cap, it is
important to clearly define the role of the CFO in a school district.

 
LEGISLATIVE HISTORY:

A.359 of 2017 and 2018, referred to education.
Same as S.4250 of 2017 and 2018, referred to education.
A.9427 of 2016, referred to education. Same as S.6953, referred to
education.

 
FISCAL IMPLICATIONS:
This bill will have no fiscal impact to the State.

 
EFFECTIVE DATE:
This act shall take effect on the first of July next succeeding the date
on which it becomes law.