BILL NUMBER: S5702
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the education law, in relation to permitting special
education services and programs for preschool children with handicapping
conditions to establish reserve funds
 
PURPOSE:
To allow special education services and programs for preschool children
with handicapping conditions to establish reserve funds
 
SUMMARY OF PROVISIONS:
Section 1: Establishes that for the 2023-2024 school year and thereaft-
er, special education services and programs for children with handicap-
ping conditions may retain funds in excess of their allowable and reim-
bursable costs incurred for services and programs to students appointed.
Provides that the total accumulated balance that may be retained cannot
exceed four percent of total costs for the school year and that such
funds shall not be recoverable on reconciliation; such funds shall be
carried forward as total reimbursable costs for purposes of calculating
subsequent year prospective and reconciliation tuition rates and such
funds shall be separate from and in addition to any other authorization
to retain surplus funds on reconciliation.
Further establishes that funds may be expended only pursuant to an
authorization of the governing board of the institution for a purpose
expressly authorized as part of allowable costs for the year in which
the funds are to be expended, provided that funds may be expended to pay
prior year outstanding debts. Any institution that retains funds pursu-
ant to this subdivision shall be required to annually report a statement
of the total balance of such retained funds, the amount, if any,
retained in the prior school year, the amount, if any, disbursed in the
prior school_ year, and the financial reports that are required to be
annually submitted to the department.
Section 2: Sets Effective Date.
 
JUSTIFICATION:
New York State-approved preschool special education programs, known as
4410 schools, provide special education services to public school chil-
dren of ages 3-5, many of whom have been diagnosed with autism spectrum
disorder, cerebral palsy, or other developmental disabilities. Students
are placed in 4410s only after a determination has been made by a local
Committee on Preschool Special Education that there is no other appro-
priate educational setting available in a local public school. This
means there is no other educational option for these children.
Under current law, 853 schools and Special Act schools, which serve
school-aged children with special needs, can establish reserve funds
that allow them to save up to 1% of their budget. This provision was
included in the SFY '2023 Budget to achieve parity with traditional
public schools, which already can establish reserve funds. Unfortunate-
ly, 4410s were excluded from this benefit.
This legislation allows 4410 schools to establish reserve funds to
ensure they receive the support they need to meet the needs of our most
vulnerable populations adequately. There are currently four hundred 4410
schools throughout the State that serve the special needs of our young-
est learners. Given the complexity of their disabilities, no other
school system can address their needs. The continuity of4410 services is
essential to enriching these students' academic 'futures and providing
them with the tools necessary to succeed. New York State must address
this inequity by allowing 4410s to establish reserve funds.
 
LEGISLATION HISTORY:
Senate
2023: S7215, Referred to Disabilities
2024: S7215, Referred to Disabilities
Assembly
2023: A8086, Referred to education
2024: A8086, Referred to education
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the first of. July next succeeding the
date on which it shall have become a law.

Statutes affected:
S5702: 4405 education law