S T A T E O F N E W Y O R K
________________________________________________________________________
5142--A
2021-2022 Regular Sessions
I N A S S E M B L Y
February 11, 2021
___________
Introduced by M. of A. BENEDETTO, JACKSON, OTIS -- read once and
referred to the Committee on Education -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the education law, in relation to special act school
districts and special education
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 4004 of the education law is amended by adding a
new subdivision 5 to read as follows:
5. THE BOARD OF EDUCATION OF A SPECIAL ACT SCHOOL DISTRICT SHALL BE
AUTHORIZED TO ESTABLISH A FISCAL STABILIZATION RESERVE FUND. THERE MAY
BE PAID INTO SUCH FUND AN AMOUNT AS MAY BE PROVIDED PURSUANT TO THE
REQUIREMENTS OF PARAGRAPH K OF SUBDIVISION FOUR OF SECTION FORTY-FOUR
HUNDRED FIVE OF THIS TITLE.
§ 2. Subdivision 4 of section 4405 of the education law is amended by
adding a new paragraph k to read as follows:
K. THE TUITION METHODOLOGY ESTABLISHED PURSUANT TO THIS SUBDIVISION
FOR THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR AND
ANNUALLY THEREAFTER SHALL AUTHORIZE APPROVED PRIVATE RESIDENTIAL OR
NON-RESIDENTIAL SCHOOLS FOR THE EDUCATION OF STUDENTS WITH DISABILITIES
THAT ARE LOCATED WITHIN THE STATE, AND SPECIAL ACT SCHOOL DISTRICTS, TO
RETAIN FUNDS IN EXCESS OF THEIR ALLOWABLE AND REIMBURSABLE COSTS
INCURRED FOR SERVICES AND PROGRAMS PROVIDED TO SCHOOL-AGE STUDENTS. THE
AMOUNT OF FUNDS THAT MAY BE ANNUALLY RETAINED SHALL NOT EXCEED ONE
PERCENT OF THE SCHOOL'S OR SCHOOL DISTRICT'S TOTAL ALLOWABLE AND REIM-
BURSABLE COSTS FOR SERVICES AND PROGRAMS PROVIDED TO SCHOOL-AGE STUDENTS
FOR THE SCHOOL YEAR FROM WHICH THE FUNDS ARE TO BE RETAINED; PROVIDED
THAT THE TOTAL ACCUMULATED BALANCE THAT MAY BE RETAINED SHALL NOT EXCEED
FOUR PERCENT OF SUCH TOTAL COSTS FOR SUCH SCHOOL YEAR; AND PROVIDED
FURTHER THAT SUCH FUNDS SHALL NOT BE RECOVERABLE ON RECONCILIATION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02625-03-1
A. 5142--A 2
FUNDS MAY BE EXPENDED ONLY PURSUANT TO AN AUTHORIZATION OF THE GOVERNING
BOARD OF THE SCHOOL OR SCHOOL DISTRICT, FOR A PURPOSE EXPRESSLY AUTHOR-
IZED AS PART OF THE APPROVED TUITION METHODOLOGY FOR THE YEAR IN WHICH
THE FUNDS ARE TO BE EXPENDED. THE DIRECTOR OF THE BUDGET, IN CONSULTA-
TION WITH THE COMMISSIONER, SHALL ESTABLISH THE AUTHORIZED USES FOR THE
EXPENDITURES OF SUCH FUNDS AS PART OF THE APPROVED TUITION METHODOLOGY.
ANY SCHOOL OR SCHOOL DISTRICT THAT RETAINS FUNDS PURSUANT TO THIS PARA-
GRAPH SHALL BE REQUIRED TO ANNUALLY REPORT A STATEMENT OF THE TOTAL
BALANCE OF ANY SUCH RETAINED FUNDS, THE AMOUNT, IF ANY, RETAINED IN THE
PRIOR SCHOOL YEAR, THE AMOUNT, IF ANY, DISBURSED IN THE PRIOR SCHOOL
YEAR, AND ANY ADDITIONAL INFORMATION REQUESTED BY THE DEPARTMENT AS PART
OF THE FINANCIAL REPORTS THAT ARE REQUIRED TO BE ANNUALLY SUBMITTED TO
THE DEPARTMENT.
§ 3. This act shall take effect immediately.