BILL NUMBER: S9247
SPONSOR: MANNION
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to permitting the
Fulton city school district to establish an insurance reserve fund
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to allow the Fulton City School District to
establish an insurance reserve fund.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill would amend section 6-n of the General Municipal
Law to add the Fulton City School District to the list of schools that
are authorized to establish an insurance reserve fund.
Section 2 of this bill provides that the effective date shall take
effect immediately.
 
JUSTIFICATION:
Current law prohibits any school district from retaining more than four
percent of their budget in an unappropriated fund balance. However, this
can present a significant financial burden on certain school districts
that fare self-insured because claims are variable, often considerably,
year over year. Allowing those districts to have greater reserves would
help prevent them from hardship due to these fluctuations and ensure
they are able to pay out their claims in a timely manner. This bill
would allow the Fulton City School District to establish an insurance
reserve fund.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.