S T A T E O F N E W Y O R K
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10102
I N S E N A T E
April 29, 2026
___________
Introduced by Sen. SERRANO -- (at request of the Governor) -- read twice
and ordered printed, and when printed to be committed to the Committee
on Rules
AN ACT authorizing the South Country central school district, in the
county of Suffolk, to finance certain deficits by the issuance of
bonds and providing for advance school aid to such district; and
providing for the repeal of such provisions upon expiration thereof
(Part A); and to amend part III of chapter 58 of the laws of 2023,
amending the general municipal law and the executive law relating to
directing the state inspector general to appoint an independent moni-
tor for the Orange county industrial development agency, in relation
to the effectiveness thereof; and providing for the repeal of such
provisions upon expiration thereof (Part B)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
necessary to implement the state fiscal plan for the 2026-2027 state
fiscal year. Each component is wholly contained within a Part identified
as Parts A through B. The effective date for each particular provision
contained within such Part is set forth in the last section of such
Part. Any provision in any section contained within a Part, including
the effective date of the Part, which makes a reference to a section "of
this act", when used in connection with that particular component, shall
be deemed to mean and refer to the corresponding section of the Part in
which it is found. Section three of this act sets forth the general
effective date of this act.
PART A
Section 1. South Country central school district deficit financing. 1.
The South Country central school district (hereinafter referred to in
this section as the "district"), in the county of Suffolk, is hereby
authorized to issue serial bonds, subject to the provisions of section
10.10 of the local finance law, on or before October 31, 2027, in an
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12035-01-6
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aggregate principal amount not to exceed eleven million dollars
($11,000,000) for the specific object or purpose of liquidating actual
deficits in its general fund at the close of the fiscal year ending June
30, 2026 as certified by the state comptroller. In anticipation of the
issuance and sale of such serial bonds, bond anticipation notes are
hereby authorized to be issued.
2. Notwithstanding the provisions of any other law, general, special
or local, the board of education of the district is hereby authorized to
levy a tax to be collected in annual installments sufficient to pay the
principal of and interest on said bonds and bond anticipation notes and
to adopt a bond resolution authorizing the serial bonds authorized to be
issued pursuant to this section.
3. Amounts provided from the proceeds of obligations issued pursuant
to this section in excess of the amount of the deficit as confirmed by
the state comptroller shall be accounted for in the same manner as
prescribed by the state comptroller pursuant to section 36 of the gener-
al municipal law for real property taxes levied for a planned balance
pursuant to subdivision 21 of section 2021 of the education law.
4. Notwithstanding any inconsistent provision of paragraph d of
section 10.10 of the local finance law, the board of education of the
district shall make adjustments to the district's proposed budget
consistent with any recommendations by the state comptroller and the
commissioner of education.
§ 2. South Country central school district state aid advance. The
South Country central school district (hereinafter referred to in this
section as the "district") shall be paid on an accelerated schedule
pursuant to this section.
1. (a) Notwithstanding any other provisions of law, for aid payable in
the school years 2025-26 through 2054-55 upon application to the commis-
sioner of education submitted not sooner than the second Monday in June
of the school year in which such aid is payable and not later than the
Friday following the third Monday in June of the school year in which
such aid is payable, the district shall be eligible to receive an appor-
tionment pursuant to this section in an amount equal to the product of
up to seven million dollars ($7,000,000) and the quotient of the posi-
tive difference of thirty minus the number of school years elapsed since
the 2025-26 school year divided by thirty, provided, however, that for
the 2025-26 school year such application shall be submitted no later
than May 7, 2026.
(b) Funds apportioned pursuant to this subdivision shall be used for
services and expenses of the district and shall be applied to support of
its educational programs and any liability incurred by the district in
carrying out its functions and responsibilities under the education law.
2. The claim for an apportionment to be paid to the district pursuant
to subdivision 1 of this section shall be submitted to the commissioner
of education on a form prescribed for such purpose, and shall be payable
upon determination by such commissioner that the form has been submitted
as prescribed and that the district has complied with the reporting
requirements of this section. For each school year in which application
is made pursuant to subdivision 1 of this section, such approved amount
shall be payable on or before June thirtieth of such school year upon
the audit and warrant of the state comptroller on vouchers certified or
approved by the commissioner of education in the manner prescribed by
law from moneys appropriated for general support of public schools,
provided, however, that for the 2025-26 school year such approved amount
shall be payable on or before May 18, 2026.
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3. Notwithstanding the provisions of section 3609-a of the education
law, an amount equal to the amount paid to the district during the base
year pursuant to subdivisions 1 and 2 of this section shall first be
deducted from general aid payments due during the current school year
pursuant to subparagraphs 4 and 5 of paragraph a of subdivision 1 of
section 3609-a of the education law from the fixed fall payments payable
pursuant to subparagraph 4 of such paragraph, and any remainder to be
deducted from the individualized payments due to the district pursuant
to paragraph b of such subdivision shall be deducted on a chronological
basis starting with the earliest payment due the district.
4. Notwithstanding any other provisions of law, the sum of payments
made to the district during the base year pursuant to subdivisions 1 and
2 of this section plus payments made to the district during the current
year pursuant to section 3609-a of the education law shall be deemed to
truly represent all aids paid to the district during the current school
year pursuant to such section 3609-a for the purposes of computing any
adjustments to such aids that may occur in a subsequent school year.
5. In the 2026-27 through 2054-55 school years, the chief fiscal offi-
cer of the district shall monitor all budgets and for each budget, shall
prepare a quarterly report of summarized budget data depicting overall
trends of actual revenues and budget expenditures for the entire budget
as well as individual line items. Such report shall compare revenue
estimates and appropriations as set forth in such budget with the actual
revenues and expenditures made to date. All quarterly reports shall be
accompanied by a recommendation from the superintendent of schools or
chief fiscal officer to the board of education setting forth any remedi-
al actions necessary to resolve any unfavorable budget variance includ-
ing the overestimation of revenue and underestimation of appropriations.
The chief fiscal officer shall also prepare, as part of such report, a
quarterly trial balance of general ledger accounts in accordance with
generally accepted accounting principles as prescribed by the state
comptroller. All reports shall be completed within sixty days after the
end of each quarter and shall be submitted to the chief fiscal officer
and the board of education of the district, the state division of budg-
et, the office of the state comptroller, the commissioner of education,
the chair of the assembly ways and means committee and the chair of the
senate finance committee.
§ 3. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2026; provided
however, that:
1. section one of this act shall expire and be deemed repealed Decem-
ber 31, 2037; and
2. section two of this act shall expire and be deemed repealed June
30, 2055.
PART B
Section 1. Section 3 of part III of chapter 58 of the laws of 2023,
amending the general municipal law and executive law relating to direct-
ing the state inspector general to appoint an independent monitor for
the Orange county industrial development agency, is amended to read as
follows:
§ 3. This act shall take effect immediately; provided however, that
subdivisions two, three, four and five of section 912 of the general
municipal law, as added by section one of this act, and subdivision 8 of
section 54 of the executive law, as added by section two of this act,
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shall expire and be deemed repealed [three] FOUR years after such effec-
tive date.
§ 2. This act shall take effect immediately; provided, however, that
upon enactment of legislation constituting the 2026-2027 budget, this
act shall cease to have force and effect and shall be deemed repealed.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through B of this act shall be
as specifically set forth in the last section of such Parts.
