Thomas F. Barraga (Member, Committee on Ways and Means, New York State Assembly). New York State Assembly. 2005.

A04179 Summary: Enacts emergency revenues to provide education aid where budget is late

SAME AS    No same as                                                          

                                                                               

SPONSOR    Barraga                                                             

                                                                               

COSPNSR    Calhoun, Errigo, Kolb, O`Connell, Tedisco                           

                                                                               

MLTSPNSR   Acampora, Bacalles, Conte, Crouch, McDonald, McDonough, Miller,     

           Ortloff, Raia, Sayward, Thiele, Townsend, Wirth                     

                                                                               

Add S3602-g, Ed L                                                              

Provides a mechanism to pay school districts a portion of the state aid        

pursuant to applicable provisions of law where the Aid to Localities Budget    

bill is passed into law after April 1st in any year in the same amount as was  

paid pursuant to the budget for the previous year; also provides that where any

such amount is decreased, no reduction shall be allowed for amounts paid.      


A04179 Actions:

02/09/2005 referred to ways and means                                          


A04179 Votes:


A04179 Memo:

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

enacting emergency measures providing state aid  to  school  districts         

prior  to  enactment  of  the  Education,  Labor and Family Assistance         

Budget                                                                         

                                                                               

PURPOSE OR GENERAL IDEA OF BILL: To protect school districts from  the         

withholding  of  regular school aid payments due to the failure of the         

state to timely enact a state budget.   To eliminate  the  payment  of         

interest  on  loans  taken  out  by school districts to cover expenses         

between the last state aid payment in any prior year and the first aid         

payment under the budget of a new fiscal year.                                 

SUMMARY OF PROVISIONS: Amends  the  education  law  by  adding  a  new         

section  3602-g  which  provides that the state shall continue regular         

monthly state education aid  payments  pursuant  to  the  aid  formula         

calculated  for  the  prior fiscal year in the event a state budget is         

not approved by the April 1st constitutional deadline.  Such  payments         

will continue on a regular basis until a budget is approved.  Should a         

school  receive  a  decrease in aid, it would be held harmless for any         

overpayment during the  months  the  state  paid  out  aid  under  the         

previous year`s formula.                                                       

JUSTIFICATION:  Failure  to  pass a state budget on time costs schools         

millions of dollars in interest as a  result  of  borrowing  to  cover         

expenses  during  the time of loss of state funds.  This is a needless         

expense for local taxpayers and wreaks havoc on school  administrators         

who  must  attempt to cover unanticipated losses. The state budget has         

been late for the majority of  recent  years.    The  state  needs  an         

automatic  means  of  preventing the lack of a budget from devastating         

school finances.  This bill would retain the aid payments of the prior         

year until a new budget is  in  place.    School  districts  would  be         

compensated  for  any  subsequent  increase once the budget is passed.         

They would be held harmless for  any  subsequent  decrease,  for  both         

practical  reasons,  to facilitate continuity in service and to act as         

an incentive to the state to pass the budget in a timely manner.   The         

state  has  the  money  available  each  year to make the payments, as         

income tax payments are received at the time  the  payments  would  be         

made.                                                                          

FISCAL  IMPLICATIONS:  State  would  be required to absorb the cost of         

overpayments in the event a decrease is made in aid to education  from         

the previous year when the budget is not passed on time.                       

EFFECTIVE DATE: Immediately.                                                   

                               

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

       ________________________________________________________________________

                                                                               

                                         4179                                  

                                                                               

                              2005-2006 Regular Sessions                       

                                                                               

                                 I N  A S S E M B L Y                          

                                                                               

                                   February 9, 2005                            

                                      ___________                              

                                                                               

       Introduced by M. of A. BARRAGA, CALHOUN, ERRIGO, KOLB, O`CONNELL, TEDIS-

         CO  --  Multi-Sponsored  by  --  M.  of  A. ACAMPORA, BACALLES, CONTE,

         CROUCH, McDONALD, McDONOUGH, MILLER, ORTLOFF, RAIA,  SAYWARD,  THIELE,

         TOWNSEND, WIRTH -- read once and referred to the Committee on Ways and

         Means                                                                 

                                                                               

       AN  ACT  to  amend  the education law, in relation to enacting emergency

         measures providing state aid to school districts prior to enactment of

         the Education, Labor and Family Assistance Budget                     

                                                                               

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

       BLY, DO ENACT AS FOLLOWS:                                               

                                                                               

    1    Section 1. The education law is amended by adding a new section 3602-g

    2  to read as follows:                                                     

    3    S 3602-G. EMERGENCY AID. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF

    4  LAW,  DURING  ANY  STATE FISCAL YEAR UNTIL SUCH TIME AS A CHAPTER OF THE

    5  LAWS, ENTITLED  "EDUCATION,  LABOR  AND  FAMILY  ASSISTANCE  BUDGET"  IS

    6  ENACTED  INTO LAW, AID WHICH WOULD BE PAYABLE TO SCHOOL DISTRICTS PURSU-

    7  ANT TO THE APPLICABLE PROVISIONS OF THIS CHAPTER, AND OTHER LAWS,  SHALL

    8  BE  ADVANCED TO SCHOOL DISTRICTS IN THE SAME AMOUNT AND ON THE SAME DATE

    9  AS CORRESPONDINGLY APPORTIONED AND PAID TO SUCH SCHOOL DISTRICTS  DURING

   10  THE  PREVIOUS  STATE  FISCAL YEAR, AS IF THE EDUCATION, LABOR AND FAMILY

   11  ASSISTANCE BUDGET FOR THE PREVIOUS FISCAL YEAR HAD BEEN ENACTED FOR  THE

   12  THEN  CURRENT  STATE  FISCAL YEAR. ANY INCREASE IN SUCH APPORTIONMENT AS

   13  INCLUDED IN THE THEN CURRENT  EDUCATION,  LABOR  AND  FAMILY  ASSISTANCE

   14  BUDGET  OVER THE AMOUNT ACTUALLY APPORTIONED TO A SCHOOL DISTRICT IN THE

   15  PREVIOUS EDUCATION, LABOR AND FAMILY ASSISTANCE BUDGET SHALL BE ADJUSTED

   16  PRO RATA IN THE FIRST PAYMENT MADE TO A SCHOOL DISTRICT AFTER  ENACTMENT

   17  OF  THE  THEN  CURRENT EDUCATION, LABOR AND FAMILY ASSISTANCE BUDGET. IN

   18  ANY CASE WHERE AN ADVANCE MADE PURSUANT TO THIS SECTION UPON THE  PREVI-

   19  OUS  EDUCATION,  LABOR AND FAMILY ASSISTANCE BUDGET IS GREATER THAN THAT

   20  TO WHICH A SCHOOL DISTRICT WOULD BE  ENTITLED  UNDER  THE  THEN  CURRENT

   21  EDUCATION,  LABOR AND FAMILY ASSISTANCE BUDGET, NO REDUCTION IN PAYMENTS

   22  SHALL BE MADE AND  THE  AMOUNTS  THEREAFTER  APPORTIONED  SHALL  NOT  BE

   23  REDUCED TO REFLECT ANY SUCH DECREASE IN AID.                            

   24    S 2. This act shall take effect immediately.                          

                                                                               

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

                             { } is old law to be omitted.                     

                                                                  LBD06893-01-5

.SO DOC A 4179          *END*                    BTXT                 2005