Senate Bill S7788

                                 
BILL NUMBER: S7788

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the education law, in relation to establishing reserve
funds for costs relating to special education

 
PURPOSE OF BILL:

To allow school districts to establish a reserve fund to pay for unan-
ticipated costs related to special education.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends section 3651 by adding a new subdivision 1-c and
amending subdivision 3-a to authorize school districts to establish a
reserve fund for unanticipated costs related to special education.
Districts must receive approval from voters to establish such a fund,
but do not need to receive approval to use the funds.

Section two provides the effective date.
              

 
JUSTIFICATION:

The education law and general municipal law allow fiscally independent
school districts to establish restricted reserve funds for several
specific purposes, including capital reserves, for workers compensation
liabilities, and tax certioraris, to cite a few examples. These funds
allow districts to plan ahead and save for specific expenses.

This legislation would create a new category of restricted reserve fund
for unanticipated special education costs. Under this bill, districts
could seek voter approval to establish a special education reserve fund.
If approved, districts could retain up to 4% of their current school
year's budget in the fund to use to pay for unanticipated special educa-
tion costs, including services and transportation for students with
disabilities.

Districts across the state report an increase in the number of students
with disabilities, including in students with significant needs. Many
districts are struggling to budget for the increased cost of providing
these students with the services and support they are entitled to under
state and federal law. Particularly for small districts, even one or two
new students with disabilities can pose significant financial chal-
lenges, especially if these students enroll after the district's budget
is approved by voters.

This legislation will allow districts to plan ahead for new students
with disabilities, ensuring these students can access the services they
need, without compromising the school's budget.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.
 
EFFECTIVE DATE:
This act shall take effect on July 1 next succeeding the date on which
it is signed into law.