Senate Bill S423

                                 
BILL NUMBER: S423

SPONSOR: LIU
 
TITLE OF BILL:

An act to repeal paragraph (e) of subdivision 3 of section 2853 and
subdivision 6-g of section 3602 of the education law, relating to an aid
rollback for charter schools

 
PURPOSE:

The purpose of this bill is to repeal the use of public funds to pay for
private facility space rented by charter schools in New York City.

 
SUMMARY OF PROVISIONS:

The purpose of this bill is to repeal the use of public funds to pay for
private facility space rented by charter schools in New York City.

 
SUMMARY OF PROVISIONS:

              

This bill would repeal all of paragraph (e) from subdivision 3 of This
bill would repeal all of paragraph (e) from subdivision 3 of section
2853 of the education law that relates to the ability of charter schools
in New York City to request and be granted a space in a public school or
other public building free of charge to the charter school or offered a
private facility at the expense of the school district.  This bill would
also repeal subdivision 6-g of section 3602 of the education law that
creates a charter school facilities aid to provide the New York City
Department of Education a state allocation to assist with expenses
incurred by the process described in paragraph (e) from subdivision 3 of
section 2853 of the education law.

 
JUSTIFICATION:

The New York City charter school sector has become a significant finan-
cial burden to the city and state due to legislative language that was
included in the 2014-2015 state budget and amended in the 2016-2017
budget.

As a result, New York City and State have seen an astronomical hike in
funding allocations made specifically to pay for privately-owned facili-
ties for charter schools.  When the law first took effect in fiscal year
2014-2015, New York City was forced to set aside $10.2 million in fund-
ing to pay for privately owned facility space. However, a look at the
fiscal year 2019-2020 executive budget shows that New York City will
have to set aside a whopping $89.4 million to pay for these private
facilities. In a matter of five years, public funding to pay for private
spaces has grown $ 79.2 million, or 776%.

Charter schools are already notoriously known for operating like public-
ly funded private schools as it relates to the lack of transparency
around their student enrollment practices and their finance. This is yet
another example of ways charter schools abuse public dollars. This law
allows charter schools to funnel taxpayer dollars into the hands of
landlords that own the private facilities where they operate. Landlords
then, in turn, can build equity and expand their private investments
thanks to guaranteed legally mandated funding allocations.  It is time
to end this nefarious practice. Our public school dollars must be
directly invested in our public schools and our public school students,
not siphoned off into the private real estate industry.

 
PRIOR LEGISLATIVE HISTORY:

01/23/24 REFERRED TO EDUCATION

01/18/23 REFERRED TO EDUCATION

01/05/22 REFERRED TO EDUCATION

2020: REFERRED TO EDUCATION

2019: NEW BILL. REFERRED TO EDUCATION.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately