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A03432 Summary:

BILL NOA03432
 
SAME ASNo Same As
 
SPONSORPretlow
 
COSPNSR
 
MLTSPNSR
 
Amd §3604, Ed L
 
Provides that prior year claims due to school districts shall be paid out of any excess settlement amount recovered by the attorney general prior to being apportioned to the general fund.
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A03432 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3432
 
SPONSOR: Pretlow
  TITLE OF BILL: An act to amend the education law, in relation to prior year claims due to school districts   PURPOSE: This bill provides that school aid for prior years may be paid from funds for the general support for schools after deduction of excess payments that have been made.   SUMMARY OF PROVISIONS: Section 1: Amends paragraph c of subdivision 5 of section 3604, as added by Chapter 82 of the Laws of 1995, of the Education Law. Section 2: Sets forth the effective date.   JUSTIFICATION: In an effort to ease burdens on school districts within the state, Section 31 of Chapter 57 of the Laws of 2012 made school districts that filed late final cost reports eligible for a restoration of aid, net a penalty reflecting the amount of aid that would have been paid during the years the final cost report was late. The restoration of this aid for each eligible claim is to be paid out in the order that it was approved by the Commissioner of Education. However, timetables for how and when this aid will be reimbursed has not yet been developed, but estimates of upwards of 15 years to pay schools back have been communi- cated by SED. Certain school districts, subsequent to an audit by the State Education Department, may be determined to have projects from several years prior that are deemed, in part, to not be aidable, requiring the repayment of aid that had been disbursed. For many school districts, particularly those in rural and/or economically challenged areas, this represents a significant burden since they may not have reserves or tax levy capacity to meet the obligation. Allowing these school districts to pay aid takebacks out of funds owed them by SED would provide significant relief and fiscal stability. This bill would allow school districts to be credited for aid takebacks out of an aid reimbursement they are owed by the State, alleviating a significant, undue burden on school districts as well as local taxpay- ers. School Districts and taxpayers in New York State deserve certainty with their finances   LEGISLATIVE HISTORY: 2022 01/05/22 A3411 referred to education A5983 2019-2020 referred to education A7010 03/29/17 referred to education 01/03/18 referred to education 2016: 58010 referred to education   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A03432 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3432
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 3, 2023
                                       ___________
 
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Education
 
        AN ACT to amend the education law, in relation to prior year claims  due
          to school districts
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph c of subdivision 5 of section 3604 of the  educa-
     2  tion law, as added by chapter 82 of the laws of 1995, is amended to read
     3  as follows:
     4    c.  Payment of moneys due for prior years.  (i) State aid payments due
     5  for prior years in accordance with the provisions  of  this  subdivision
     6  shall  be paid within the limit of the appropriation designated therefor
     7  provided, however, that each eligible claim  shall  be  payable  in  the
     8  order  that it has been approved for payment by the commissioner, but in
     9  no case shall a single claim draw down more than forty  percent  of  the
    10  appropriation so designated for a single year, and provided further that
    11  no  claim  shall  be  set  aside  for  insufficiency  of funds to make a
    12  complete payment, but shall be eligible for a  partial  payment  in  one
    13  year and shall retain its priority date status for appropriations desig-
    14  nated for such purposes in future years.
    15    (ii)  Notwithstanding  subparagraph  (i)  of this paragraph, all funds
    16  obtained as the result of any settlement with the office of the attorney
    17  general shall be applied to payment of money due to school districts for
    18  prior years after the distribution of funds  necessary  to  fulfill  the
    19  obligations  of  the  office  of  the  attorney  general, but before any
    20  remaining funds shall be apportioned to the general fund.
    21    § 2. This act shall take effect immediately.
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08188-01-3
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