BILL NUMBER: S8218
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the education law and chapter 416 of the laws of 2007
establishing the city of Rochester and the board of education of the
city school district of the city of Rochester school facilities modern-
ization program act, in relation to certain bonds issued to finance
school rehabilitation or reconstruction costs for Rochester schools
 
PURPOSE:
To specify technical financial processes that should be followed to
ensure greater accuracy and efficiency of state funds used for projects
authorized pursuant to the city of Rochester and the board of education
of the city school district of the city of Rochester school facilities
modernization program act
 
SUMMARY OF PROVISIONS:
Section 1: amends item (iv) of clause (a) of subparagraph 5 of paragraph
e of subdivision 6 of section 3602 of the education law, as amended by
chapter 416 of the laws of 2007 to clarify the interest rate calculation
for assumed amortization, require an analysis to be provided to the
commissioner of the actual average interest rate applied to all capital
debt incurred to finance or refund debt related to school renovation,
rehabilitation or reconstruction, and establishes a tentative and
adjusted interest rate.
Section 2: adds a new subdivision (c) to Section 16 of chapter 416 of
the laws of 2007, constituting the city of Rochester and the board of
education of the city school district of the city of Rochester school
facilities modernization program act, requiring any savings realized
from refunding bonds issued for projects funded under this specific act
must only be used for funding other projects that are eligible for state
aid under Education Law § 3602, subdivision 6.
Section 3: establishes the effective date.
 
JUSTIFICATION:
This bill creates greater specificity surrounding financial calculations
around the interest rates,and bond debts and refunds involved in any
projects authorized pursuant to the city of Rochester and the board of
education of the city school district for the Rochester Schools Modern-
ization Program Act. These clarifications provide greater accuracy in
accounting, and ensure that savings are directed back into eligible
projects to create the greatest benefit for the students and faculty of
Rochester City Schools.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
Total cost to the State and Local government to be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8218: 3602 education law, 3602(6) education law