Senate Bill S7372

                                
 
BILL NUMBER: S7372

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act to amend the education law, in relation to the additional appor-
tionment of building aid for certain projects

 
PURPOSE:

To increase the cost threshold for school construction projects' eligi-
bility for additional building aid.

 
SUMMARY OF PROVISIONS:

Amends subparagraph (1) of paragraph (b) of subdivision 6-f of section
3602 of the education law to increase the cost threshold for school
construction project eligibility for additional building aid from one
hundred thousand dollars to two hundred fifty thousand dollars.

 
              

JUSTIFICATION:

Currently, districts may be reimbursed for base year capital outlay
expenses for projects that are wholly funded through capital outlay and
which have a total cost of no more than $100,000. This allows districts
to circumvent the lengthy assumed amortization schedules of ten,
fifteen, and twenty years and instead receive the amount they spend as
they spend it. This is helpful for districts, as they receive funding
when they need it, and for the state, which then avoids paying interest
on the reimbursement.

However, costs are rising, technological advances are creating greater
demand for capital improvements, and districts are finding it difficult
to fund these projects in real time. This bill would increase the
$100,000 threshold for eligibility to a more reasonable $250,000 in
order to help districts meet these demands and to save the state money
on interest payments.

 
LEGISLATIVE HISTORY:

2017-18: S.3970/A.3231: Passed Senate; Referred Ways and Means
2015-16: S.7156/A .10573: Referred Education; Referred Education

 
FISCAL IMPLICATIONS:

State savings on interest payment.

 
EFFECTIVE DATE:
Immediately.