BILL NUMBER: S697
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend the education law, in relation to the establishment of
an extraordinary needs reserve fund
 
PURPOSE OR GENERAL IDEA OF BILL:
This legislation affords school districts the ability to establish an
extraordinary needs reserve fund for the expenses of providing special
education.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Amends Section 3651 of the education law by adding a new
section 1-c, authorizing that any school district may establish a
reserve fund for the payment of unanticipated costs related to the
instruction of students as defined in subparagraph one of paragraph i of
subdivision one of section thirty-six hundred two and pursuant to subdi-
vision two of section thirty-two hundred four of this chapter incurred
throughout the fiscal year.
Section two established the effective date.
 
JUSTIFICATION:
School districts face a financial burden when educating high-need
students, whose costs are greater than four times the cost of an average
pupil with a disability. Moreover, when high-need students enroll during
the school year, districts are faced with an unanticipated increase in
costs, for which they were not able to budget for. These unanticipated
costs are particularly impactful on small school district budgets.
Permitting school districts to establish such a reserve fund would
provide a cushion for these unforeseen expenditures to ensure adequate
resources are available for educating students.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S.197/A.2402 Referred to Education/held for consideration in
Education
2021-22: S.2654/A.1035 Referred to Education/held for consideration in
Education
2019-20: S.9002/A.11036 Referred to Rules/Referred to Education
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of July next succeeding the date
on which it shall have become law.

Statutes affected:
S697: 3651 education law