A02484 Summary: Eliminates the limitations on increases in a group of aids to school districts commencing July 1, 2005 when the combined wealth ratio is below the state average

SAME AS    No same as                                                          

                                                                               

SPONSOR    Thiele                                                              

                                                                               

COSPNSR                                                                        

                                                                               

MLTSPNSR                                                                       

                                                                               

Amd S3602, Ed L                                                                

Eliminates the limitations on increases in a group of aids to school districts

commencing July 1, 2005 and thereafter under certain circumstances.            


A02484 Actions:

01/26/2005 referred to education                                               


A02484 Votes:


A02484 Memo:

TITLE  OF  BILL:   An act to amend the education law, in relation to the       

elimination of limitations on increases in a group  of  aids  to  school       

districts under certain circumstances                                          

                                                                               

PURPOSE OR GENERAL IDEA OF BILL:  To eliminate the cap on increases in a       

group  of aids to school districts commencing July 1, 1999 and thereaft-       

er. Also eliminates the cap on increases to several  categories  of  aid       

for  all school districts that have a combined wealth ratio of less than       

one.                                                                           

                                                                               

SUMMARY OF SPECIFIC PROVISIONS: Amends paragraph (a) of  subdivision  19       

of  Section  3602  of the education law to include aid payable in school       

years commencing July 1, 1999 and thereafter. Also eliminates the cap on       

increases to several categories of aid for  all  school  districts  that       

have a combined wealth ratio of less than one.                                 

                                                                               

JUSTIFICATION:  During  the days of recession and State budget shortfall       

in Albany, this artificial cap on the Transitional  Adjustment  category       

of  State  Aid  to  Education  might  have  been necessary due to fiscal       

constraints.  Today, however, with the State enjoying a surplus of  $1.8       

billion,  it  is time to remove this artificial brake on education aid--       

especially to school districts that are considered to be  "poor",  based       

on  income  and  property  wealth.  In  most cases, it is these "poorer"       

school districts that are most hurt by the Transition Adjustment cap.          

                                                                               

This legislation is intended to help these most needy  school  districts       

get  their  fair  share  of  aid  by lifting the cap on the Transitional       

Adjustment Aid category for any district  that  has  a  combined  wealth       

ratio below the state average of one percent.                                  

                                                                               

PRIOR  LEGISLATIVE  HISTORY: A9203: 05/12/98 - held for consideration in       

education A1350, 1999-00; 2001-02 A.6478 2003-04, A.1396                       

                                                                               

FISCAL IMPLICATIONS:                                                           

                                                                               

EFFECTIVE DATE: July 1, 2005     

S T A T E   O F   N E W   Y O R K                   

       ________________________________________________________________________

                                                                               

                                         2484                                  

                                                                               

                              2005-2006 Regular Sessions                       

                                                                               

                                 I N  A S S E M B L Y                          

                                                                               

                                   January 26, 2005                            

                                      ___________                              

                                                                               

       Introduced by M. of A. THIELE -- read once and referred to the Committee

         on Education                                                          

                                                                               

       AN  ACT  to  amend  the education law, in relation to the elimination of

         limitations on increases in a group of aids to school districts  under

         certain circumstances                                                 

                                                                               

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-

       BLY, DO ENACT AS FOLLOWS:                                               

                                                                               

    1    Section 1. Paragraph a of subdivision 18 of section 3602 of the educa-

    2  tion law, as amended by section 15 of part A of chapter 60 of  the  laws

    3  of 2000, is amended to read as follows:                                 

    4    a.  Limit  on  apportionment.  For aid payable in the school {year two

    5  thousand--two thousand one} YEARS COMMENCING JULY  FIRST,  TWO  THOUSAND

    6  FIVE  AND  THEREAFTER, a district may elect to receive the higher of (1)

    7  the current year aids for limiting: the  apportionments  computed  under

    8  clause  (i)  of  paragraph  a  of  subdivision twelve, operating aid and

    9  subdivisions fifteen, borough aid; sixteen,  tax  adjustment  aids;  and

   10  eighteen,  transition  adjustment, of this section or (2) the comprehen-

   11  sive  operating  aids  base  multiplied  by  one  hundred  two  percent,

   12  provided,  however,  that  FOR  A  DISTRICT WITH A COMBINED WEALTH RATIO

   13  EQUAL TO OR GREATER THAN ONE, such current year aids for limiting  shall

   14  not  exceed,  the  greater  of  (1)  one  hundred  four and twenty-seven

   15  hundredths percent of such comprehensive operating aids base or (2)  the

   16  sum  of the comprehensive operating aids base and eighteen and one tenth

   17  percent of the positive  difference  remaining  when  the  comprehensive

   18  operating aids base is subtracted from such current year aids for limit-

   19  ing.                                                                    

   20    S 2. This act shall take effect July 1, 2005.                         

                                                                               

                                                                               

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                             { } is old law to be omitted.                     

                                                                  LBD00048-01-5

.SO DOC A 2484          *END*                    BTXT                 2005