BILL NUMBER: S8867
SPONSOR: RYAN C
 
TITLE OF BILL:
An act to amend the education law, in relation to the additional appor-
tionment of building aid for certain projects
 
PURPOSE:
To increase the cost threshold for school construction projects' eligi-
bility for additional building aid.
 
SUMMARY OF PROVISIONS:
Section 1. Amends subparagraph (1) of paragraph (b) of subdivision 6-f
of section 3602 of the education law to increase the cost threshold for
school construction project eligibility for additional building aid from
one hundred thousand dollars to a minimum of two hundred fifty thousand
dollars and a maximum of five hundred thousand dollars. The legislation
would also allow the annual amount to be used on multiple projects
instead of just one.
 
JUSTIFICATION:
Currently, districts may be reimbursed for base year capital outlay
expenses for projects that are wholly funded through capital outlay and
which have a total cost of no more than $100,000. This allows districts
to circumvent the lengthy assumed amortization schedules of ten,
fifteen, and twenty years and instead receive the amount they spend as
they spend it. This is helpful for districts, as they receive funding
when they need it, and for the state, which then avoids paying interest
on the reimbursement.
However, costs are rising, technological advances are creating greater
demand for capital improvements, and districts are finding it difficult
to fund these projects in real time. This bill would increase the
$100,000 threshold for eligibility to a more reasonable $250,000 in
order to help districts meet these demands and to save the state money
on interest payments. Districts in high-cost counties would be eligible
for up to $500,000 annually to account for higher labor wages and costs
of materials.
This legislation would also allow these funds to be used on more than
one project. For instance, currently, if a district wanted to replace
windows on all its buildings, these funds can only be used on one build-
ing because the statute limits them to one project. Finally, schools
could propose multiple year projects for approval from the Education
Department. This would reduce administrative costs for school districts.
Currently, capital outlay projects must be completed within the year
that they are commenced.
 
LEGISLATIVE HISTORY:
2023-24: A1459-A- Referred to Education
2021-22: A.422-A/S.3460-A- Referred to Education
2019-20: A.5341/S.7372- Referred to Education
2017-18: A.3231- Referred to Education
2016:A.10573- Referred to Education
 
FISCAL IMPLICATIONS:
State savings on interest payments and savings for school districts.
 
EFFECTIVE DATE:
Immediately

Statutes affected:
S8867: 3602 education law, 3602(6-f) education law