A03432 Summary:
BILL NO | A03432 |
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SAME AS | No Same As |
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SPONSOR | Pretlow |
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COSPNSR | |
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MLTSPNSR | |
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Amd §3604, Ed L | |
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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. |
A03432 Memo:
Go to topNEW 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.
A03432 Text:
Go to top 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