BILL NUMBER: S10489
SPONSOR: BYNOE
 
TITLE OF BILL:
An act to amend the local finance law, in relation to authorizing the
village of Hempstead, county of Nassau, to amortize the cost of payments
to employees upon separation of service from the village
 
PURPOSE:
To authorize the Village of Hempstead to finance over time certain costs
associated with employee separations, including early retirement incen-
tives and accrued leave payouts.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends paragraph a of section 11.00 of the local
finance law by adding a new subdivision 111 to authorize the Village of
Hempstead to treat specified separation payments as a capital expense.
The bill applies to payments made on or after April 1, 2026, including
but not limited t; separation incentives; payments for accrued and
unused leave time; compensation in lieu of overtime; and other required
separation-related payments. Such expenditures may be financed with a
maximum period of probable usefulness of twenty years.
Section 2 provides that the act shall take effect immediately.
 
JUSTIFICATION:
Current law generally requires these costs to be paid in the year
incurred, which can create significant fiscal pressure on local budgets.
This bill authorizes the Village to amortize such costs over time,
allowing for more stable budget planning and better alignment between
upfront expenditures and long-term savings derived from personnel cost
reductions. Providing this financing flexibility will assist the Village
in responsibly managing its fiscal affairs while pursuing cost-saving
workforce strategies.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
This bill has no fiscal impact on the State. It is expected to have a
positive fiscal management impact for the Village of Hempstead by allow-
ing certain expenditures to be financed over time.
 
EFFECTIVE DATE:
This act shall take effect immediately

Statutes affected:
S10489: 11.00 local finance law