S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8539
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2025
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Education
 
 AN ACT to amend the local finance law, in relation to authorizing school
   districts  to  borrow  against certain reserve funds; and to amend the
   general municipal law, in relation to making  a  technical  correction
   thereto

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The local finance law is amended by adding  a  new  section
 25.11 to read as follows:
   §  25.11  BORROWING FROM RESERVE FUNDS. A. 1. PURSUANT TO A RESOLUTION
 ADOPTED BY THE BOARD OF EDUCATION OF ANY SCHOOL  DISTRICT,  SUCH  SCHOOL
 DISTRICT MAY BORROW FROM CERTAIN RESERVE FUNDS TO REDUCE RELIANCE ON TAX
 ANTICIPATION NOTES AND REVENUE ANTICIPATION NOTES.
   2. SUCH RESOLUTION SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A) THE AMOUNT TO BE BORROWED;
   (B) THE RESERVE FROM WHICH THE SCHOOL DISTRICT INTENDS TO BORROW;
   (C)  THE AMOUNT AND SOURCE OF TAXES OR OTHER REVENUE ANTICIPATED TO BE
 RECEIVED; AND
   (D) THE TIMEFRAME IN WHICH SUCH TAXES OR OTHER REVENUE IS  ANTICIPATED
 TO  BE  RECEIVED  AND  THE  SCHEDULE UPON WHICH REPAYMENT SHALL BE MADE,
 INCLUDING A SPECIFIC DATE FOR FINAL REPAYMENT; PROVIDED,  HOWEVER,  THAT
 NOTHING SHALL PROHIBIT A SCHOOL DISTRICT FROM PAYING AHEAD OF SUCH SCHE-
 DULE.
   3. SCHOOL DISTRICTS SHALL NOT BORROW IN EXCESS OF SEVENTY-FIVE PERCENT
 OF THE TOTAL OF EACH RESERVE FUND.
   B.  1.  BORROWING  FROM  RESERVE  FUNDS  SHALL BE LIMITED TO TAXES AND
 REVENUE ANTICIPATED TO BE RECEIVED IN THE SAME FISCAL YEAR IN WHICH SUCH
 BORROWING TAKES PLACE; PROVIDED, HOWEVER,  THAT  DURING  THE  FINAL  TWO
 WEEKS  OF  A  GIVEN  FISCAL  YEAR,  SUCH BORROWING MAY BE INITIATED BY A

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11685-01-5
 A. 8539                             2
              

 
 SCHOOL DISTRICT IN ANTICIPATION OF MONEYS TO BE RECEIVED IN THE  FOLLOW-
 ING FISCAL YEAR.
   2.  FINAL  REPAYMENT SHALL BE SCHEDULED WITHIN THE SAME FISCAL YEAR IN
 WHICH THE BORROWING TAKES PLACE; PROVIDED, HOWEVER, THAT IF SUCH BORROW-
 ING WAS INITIATED IN THE FINAL TWO WEEKS OF THE  PRIOR  FISCAL  YEAR  IN
 ANTICIPATION  OF MONEYS TO BE RECEIVED IN THE CURRENT FISCAL YEAR PURSU-
 ANT TO SUBDIVISION ONE OF THIS PARAGRAPH, SUCH FINAL  REPAYMENT  MAY  BE
 SCHEDULED  WITHIN  THE  FISCAL YEAR DURING WHICH SUCH ANTICIPATED MONEYS
 ARE RECEIVED.
   C. THE FOLLOWING RESERVE FUNDS MAY BE BORROWED FROM PURSUANT TO  PARA-
 GRAPH A OF THIS SECTION:
   1.  WORKERS' COMPENSATION RESERVE FUND, AS AUTHORIZED BY SECTION SIX-J
 OF THE GENERAL MUNICIPAL LAW;
   2. UNEMPLOYMENT INSURANCE  PAYMENT  RESERVE  FUND,  AS  AUTHORIZED  BY
 SECTION SIX-M OF THE GENERAL MUNICIPAL LAW;
   3.  REPAIR RESERVE FUND, AS AUTHORIZED BY SECTION SIX-D OF THE GENERAL
 MUNICIPAL LAW;
   4. INSURANCE RESERVE FUND, AS  AUTHORIZED  BY  SECTION  SIX-N  OF  THE
 GENERAL MUNICIPAL LAW;
   5.  PROPERTY  LOSS  RESERVE  FUND,  AS AUTHORIZED BY SECTION SEVENTEEN
 HUNDRED NINE OF THE EDUCATION LAW;
   6. EMPLOYEE BENEFIT ACCRUED LIABILITY RESERVE FUND, AS  AUTHORIZED  BY
 SECTION SIX-P OF THE GENERAL MUNICIPAL LAW; AND
   7.  TAX  REDUCTION  RESERVE  FUND,  AS  AUTHORIZED BY SECTIONS SIXTEEN
 HUNDRED FOUR AND SEVENTEEN HUNDRED NINE OF THE EDUCATION LAW.
   § 2. The section heading of section 6-j of the general municipal  law,
 as  amended  by  chapter  704 of the laws of 1956, is amended to read as
 follows:
   [Workmen's] WORKERS' compensation reserve fund.
   § 3. This act shall take effect the first of July next succeeding  the
 date on which it shall have become a law.