Senate Bill S10382

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10382
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 AN ACT to amend the education law, authorizing capital reserve funds for
   special act school districts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision  5  of  section 4004 of the education law, as
 added by section 37-e of part A of chapter 56 of the laws  of  2021,  is
 amended to read as follows:
   5.  The  board  of education of a special act school district shall be
 authorized to establish a (I) fiscal  stabilization  reserve  fund;  AND
 (II)  CAPITAL  RESERVE FUND. There may be paid into such [fund] FUNDS an
 amount as may be provided pursuant to the requirements  of  paragraph  k
 FOR  THE FISCAL STABILIZATION RESERVE FUND AND PARAGRAPH L FOR THE CAPI-
 TAL RESERVE FUND 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 l to read as follows:
   L. (I) THE TUITION METHODOLOGY ESTABLISHED PURSUANT TO  THIS  SUBDIVI-
 SION  FOR  THE TWO THOUSAND TWENTY-SIX--TWO THOUSAND TWENTY-SEVEN SCHOOL
 YEAR SHALL AUTHORIZE 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  FOR  CONTRIBUTIONS  TO  A
 CAPITAL  RESERVE FUND. 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  REIMBURSABLE 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 RECOVERA-
 BLE  ON  RECONCILIATION OF TUITION RATES, AND SHALL BE SEPARATE FROM AND
 IN ADDITION TO ANY OTHER AUTHORIZATION TO RETAIN SURPLUS FUNDS ON RECON-
 CILIATION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15837-02-6
              

 S. 10382                            2
 
   (II) THE TUITION METHODOLOGY ESTABLISHED PURSUANT TO THIS  SUBDIVISION
 FOR THE TWO THOUSAND TWENTY-SEVEN--TWO THOUSAND TWENTY-EIGHT SCHOOL YEAR
 AND  ANNUALLY THEREAFTER SHALL AUTHORIZE 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 THE
 ALLOWABLE SURPLUS PERCENTAGE OF THE SPECIAL ACT SCHOOL  DISTRICTS  TOTAL
 ALLOWABLE  AND  REIMBURSABLE COSTS FOR SERVICES AND PROGRAMS PROVIDED TO
 SCHOOL-AGE STUDENTS FOR THE SCHOOL YEAR FROM WHICH THE FUNDS ARE  TO  BE
 RETAINED,  AS  DEFINED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH; PROVIDED
 THAT SUCH FUNDS SHALL NOT BE RECOVERABLE ON  RECONCILIATION  OF  TUITION
 RATES AND PROVIDED FURTHER THAT ANY INTEREST EARNED OR INVESTMENTS REAL-
 IZED  ON SUCH FUNDS SHALL SUPPLEMENT AND NOT SUPPLANT ANY FUNDS PROVIDED
 BY THE TUITION METHODOLOGY ONCE RETAINED.
   (III) THE APPROVED SURPLUS PERCENTAGE  SHALL  BE  AS  FOLLOWS:  ELEVEN
 PERCENT  FOR  THE  TWO  THOUSAND  TWENTY-SIX--TWO  THOUSAND TWENTY-SEVEN
 THROUGH TWO  THOUSAND  TWENTY-SEVEN--TWO  THOUSAND  TWENTY-EIGHT  SCHOOL
 YEARS,  EIGHT  PERCENT  FOR  THE TWO THOUSAND TWENTY-EIGHT--TWO THOUSAND
 TWENTY-NINE SCHOOL YEAR, FIVE PERCENT FOR THE TWO THOUSAND  TWENTY-NINE-
 -TWO  THOUSAND  THIRTY SCHOOL YEAR, AND TWO PERCENT FOR THE TWO THOUSAND
 THIRTY--TWO THOUSAND THIRTY-ONE SCHOOL YEAR AND ANNUALLY THEREAFTER.
   (IV) FUNDS AUTHORIZED TO BE  RETAINED  UNDER  THIS  PARAGRAPH  MAY  BE
 EXPENDED ONLY PURSUANT TO AN AUTHORIZATION OF THE GOVERNING BOARD OF THE
 SPECIAL  ACT  SCHOOL DISTRICT FOR A PURPOSE EXPRESSLY AUTHORIZED AS PART
 OF THE APPROVED TUITION METHODOLOGY FOR THE YEAR IN WHICH THE FUNDS  ARE
 TO  BE  EXPENDED FOR REPAIRS OF CAPITAL IMPROVEMENTS OR EQUIPMENT, WHICH
 ARE REPAIRS OF A TYPE NOT RECURRING ANNUALLY OR  AT  SHORTER  INTERVALS,
 PROVIDED THAT FUNDS MAY BE EXPENDED TO PAY PRIOR YEAR OUTSTANDING DEBTS.
 ANY  SPECIAL  ACT  SCHOOL DISTRICT   THAT RETAINS FUNDS PURSUANT TO THIS
 PARAGRAPH 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.