Source: http://open.nysenate.gov/legislation/api/1.0/html/bill/S2706-2011
Timestamp: 2013-06-20 03:12:57
Document Index: 60605624

Matched Legal Cases: ['§3', '§2006', '§2021', '§2023', '§3651', 'ART.\n2', 'ART.\n2']

S2706-2011 - NY Senate Open Legislation - Establishes limitations upon school district and local government tax levies; repealer - New York State Senate
Bill S2706-2011
Establishes limitations upon school district and local government tax levies; repealer
Establishes limitations upon school district and local government tax levies and provides for voter approval of such limitations.
A3982-2011
S2706-2011 Sponsor:SKELOS
ALESI, BALL, BONACIC, CARLUCCI, DEFRANCISCO, FARLEY, FLANAGAN, FUSCHILLO, GALLIVAN, GOLDEN, GRIFFO, GRISANTI, HANNON, JOHNSON, KENNEDY, KLEIN, LANZA, LARKIN, LAVALLE, LIBOUS, LITTLE, MARCELLINO, MARTINS, MAZIARZ, MCDONALD, NOZZOLIO, O'MARA, RANZENHOFER, RITCHIE, ROBACH, SALAND, SEWARD, VALESKY, YOUNG, ZELDIN
Law Section: General Municipal Law
Law: Add §3-c, Gen Muni L; rpld §2006 sub 3, §2021 subs 10, 11, 12, 15 16, 17, 18, 20 & 21, §2023, §3651 sub 3-a, amd Ed L, generally
Jan 4, 2012: REFERRED TO FINANCE
Feb 1, 2011: referred to ways and means
Jan 31, 2011: DELIVERED TO ASSEMBLY
Jan 31, 2011: PASSED SENATE
Jan 31, 2011: ORDERED TO THIRD READING CAL.39
Jan 31, 2011: REPORTED AND COMMITTED TO RULES
Jan 28, 2011: REFERRED TO FINANCE
Finance: Jan 31, 2011,
Rules: Jan 18, 2011
Floor Calendar: Jan 31, 2011
- Jan 31, 2011
Ayes (17):
Skelos, Alesi, Farley, Hannon, Johnson, Larkin, LaValle, Libous, Marcellino, Maziarz, Nozzolio, Saland, Seward, Sampson, Breslin, Smith, Stewart-Cousins
Nays (7):
Dilan, Duane, Hassell-Thompson, Krueger, Montgomery, Parker, Perkins
Ayes (45):
Adams, Alesi, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Huntley, Johnson, Kennedy, Klein, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Nozzolio, O'Mara, Oppenheimer, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Savino, Seward, Skelos, Smith, Stewart-Cousin, Valesky, Young, Zeldin
Nays (17):
Addabbo, Avella, Diaz, Dilan, Duane, Espaillat, Hassell-Thomps, Krueger, Kruger, Montgomery, Parker, Peralta, Perkins, Rivera, Serrano, Squadron, Stavisky
BILL NUMBER:S2706                REVISED (3)TITLE OF BILL:An act to amend the general municipal law, the education law and the municipal home rule law, in relation to establishing limitations upon school district and local government tax levies; and to repeal certain provisions of the education law relating theretoPURPOSE:This bill would control the ever-rising property tax by limiting the amount by which local taxing entities (e.g. schools and local governments) may increase property taxes each year.SUMMARY OF PROVISIONS:Section 1 of the bill would add a new º 3-c to the General Municipal Law to establish a real property tax levy cap for local governments, except the city of New York and any counties contained therein. Under the property tax levy cap:* No local government may increase its property tax levy by more than 2 percent or the rate of inflation (whichever is less).* A local government may exceed the tax levy cap only if the governing body enacts, by a two-thirds vote, a local law, or for district or fire districts, a resolution, overriding the tax levy cap.* The cap will have limited exceptions including:o Personal injury settlements that exceed 10 percent of the taxing entity's budget;o Certain capital expenditures; ando The increase or decrease in the county cost of state mandated social services assistance to persons eligible for public assistance (including those programs Temporary Assistance to Needy Families ("TANF") program, or the Safety Net Assistance Program ("SNAP")).o The State Comptroller will determine the tax levy limitations for local governments that are consolidated or dissolved.o Any excess levy funds that are collected due to clerical or technical errors will be held in reserve.Section 2 of the bill would add a new º 2023-a to the Education Law to establish a real property tax levy cap of 2 percent or the rate of inflation, whichever is less, upon school districts, other than school districts with a population of 125,000 or more (the "Big 5" school districts). Under the school district real property tax cap: * The Commissioner of Education will be tasked with determining the annual tax levy limit of each school district no later than March 1st of each year and certain capital expenditures will be exempt from the cap.o The Commissioner of Education will determine the tax levy limitations for school districts that are consolidated or dissolved.o Any excess levy funds that are collected due to clerical or technical errors will be held in reserve.Section 3 of the bill would add a new º 2023-b to the Education Law to establish the procedures for voter approval of school district tax levy propositions subject to the tax levy cap:o Any school district subject to a tax levy cap is required to submit a tax levy proposition for approval by voters at the district's annual meeting, which will support the proposed annual school district budget. If the proposed tax levy does not exceed the district's tax levy limit, then a majority vote is required for approval. If the proposed tax levy exceeds the district's tax levy limit, then it must be approved by 60 percent of the vote.o If the tax levy proposition is defeated after two presentations to the voters, then the district would be required to adopt a budget with a tax levy less than or equal to that of the prior year.Sections 4-5, 7, 9-10, 12, 18-21 and 23 of the bill would amend Education Law ºº 416(1) and (3), 1604(14), (15), (18) and (24), 1709(22), and (28), 1718, 2005, 2007(3), 2503(9)(a) and (12)(a) and (b), 2601-a, 3602(4)(b-1), 3602-e(11) and 3635-b(10), respectively, to remove references to school budget votes, revotes, contingency budgets and ordinary contingent expenses, and to make other conforming technical amendments.Sections 6 and 8 of the bill would amend Education Law ºº 1608 and 1716 to: (1) require districts to include information about the applicable tax levy limit on their property tax report cards; (2) remove references to budget votes; and (3) make other conforming amendments.Section 11 of the bill would repeal Education Law º 2006(3), which relates to school budget revotes.Section 13 of the bill would amend Education Law º 2008 to provide that voters cannot initiate propositions that would require the expenditure of money.Section 14 of the bill would repeal Education Law º 2021(10)-(12), (15)-(18) and (20)-(21), which provide for voter approval of specific budget items, and would amend º 2021(8) and (19) to maintain voter approval of transportation mileage issues and remove references to voter budget approvals.Section 15 of the bill would amend Education Law º 2022 to: (1) allow a school district to adopt a budget that complies with a voter approved tax levy; (2) require a school district to adopt a budget within its tax levy base if no tax levy proposition is approved by voters; (3) require districts to include information about the applicable tax levy limit on their property tax report cards; (4) remove references to budget votes, revotes and contingency budgets; and (5) make other conforming amendments.Section 16 of the bill would repeal Education Law º 2023, which governs contingency budgets.Section 17 of the bill would amend Education Law º 2035(2) to clarify that a proposition to change transportation mileage limits can be rejected if it would require additional expenditures unless the proposition includes the necessary appropriation.Section 22 of the bill would amend Education Law º 3635(1)(a) and (b) to maintain voter approval for transportation mileage changes and to remove references to ordinary contingent expenses.Sections 24-26 of the bill would repeal Education Law º 3651(3-a), which allows certain reserve fund expenditures without voter approval, and would amend Education Law º 3651(1), (3), (4) and (5) to provide for school authority approval of certain reserve fund matters that previously were approved within school budget votes. The bill provides that the bill would take effect immediately and apply to the 2012-13 school year, provided that sections 8, 15, 20, 21 and 22 would take effect July 1, 2012; and provided further that section 1 would first apply to the fiscal year that begins in 2012.EXISTING LAW:GML º 3-b, places a limitation on real estate taxes in New York City, and Article 8, º 10 sets certain limitations on property tax rates. These limitations have proven ineffective, however, and there are no laws capping the rate of growth of property taxes. Under existing law, voters outside of the Big 5 school districts--whose budgets are not voted on independently because the budgets of the Big 5 are included in the budgets of their cities--can approve a school district budget at the district's annual meeting (generally the 3rd Tuesday in May). If a school budget is defeated, the district can adopt a contingency budget or call a special district meeting (generally the 3rd Tuesday in May) to re-present the defeated budget or to present an amended budget. In the event no budget is approved by voters, the district must adopt a contingency budget.JUSTIFICATION:New York property taxes pay among the highest taxes in the nation. When you combine State and local taxes, New York has the second highest property taxes in the nation. The median U.S. property tax paid is $1,917 and in New York it is $3,755--96 percent higher than the national median. Moreover, New York has the highest local taxes in America as a percentage of personal income--79 percent above the national average. Local property tax levies in New York grew by 73 percent from 1998 to 2008, more than twice the rate of inflation during that period. And New York--especially Upstate New York--continues to lose population and jobs at a rate greater than the national average, while taxes continue to rise. New York property taxes have long been a problem. From 2006-2008, when property taxes were measured as a percentage of home value, the top sixteen counties in the nation were all in New York State. Local property taxes are going up at rate much faster than inflation--for the five years from 2002 to 2007, inflation was at 2.9 percent annually, whereas property tax revenues increased at higher rates for every major class of local governments.This bill is a comprehensive property tax cap that will help end the devastating impact of property taxes on homeowners throughout New York. The tax cap will apply to all school districts and local governments (i.e. counties, towns, villages and special districts) except for New York City, the counties within New York City, and the Big Five school districts. It will be set at the rate of inflation or 2 percent, whichever is less. For local governments, any property tax levy increase above the inflation rate would be prohibited, unless endorsed both 2/3 of the local governing board. For schools, any property tax levy increase above the rate of inflation would be prohibited, unless approved by 60% of the voters. This vote will be part of their regular budget voting process and for other municipalities and special districts, a referendum will not be required. The cap will apply directly to independent special districts and to town or county component special districts as part of their parent municipalities' tax levies.Only limited exceptions will be allowed for the cap, such as one-time needs for large legal settlements or capital expenditures. Counties will also be covered, but with appropriate exceptions for certain state mandated social service programs.Other states have property tax caps, including Massachusetts, Illinois, California and Michigan. New Jersey was the most recent state to enact a property tax cap.LEGISLATIVE HISTORY:This is a new bill. Similar bills have been proposed in the past. In 2008, S.8736 passed the Senate, but applied only to school districts. In 2010, A.8974 was introduced in the Assembly, but was not reported out of the Ways and Means Committee. It established a cap for all local governments.BUDGET IMPLICATIONS:This bill would have no direct fiscal implications for the State, but would limit the amount of real property taxes that school districts, counties, cities, towns, villages, special districts and fire districts can levy.EFFECTIVE DATE:This bill would take effect immediately and apply to the 2012-13 school year, provided that sections 8, 15, 20, 21 and 22 would take effect July 1, 2012; and provided further that section 1 would first apply to the fiscal year that begins in 2012. Text
Introduced  by Sen. SKELOS -- (at request of the Governor) -- read twice
AN ACT to amend the general municipal law, the  education  law  and  the
municipal  home rule law, in relation to establishing limitations upon
school district and local government tax levies; and to repeal certain
provisions of the education law relating thereto
Section  1.  The  general  municipal  law  is  amended by adding a new
section 3-c to read as follows:
S 3-C. LIMITATION UPON REAL PROPERTY TAX LEVIES BY LOCAL  GOVERNMENTS.
1.  UNLESS  OTHERWISE PROVIDED BY LAW, THE AMOUNT OF REAL PROPERTY TAXES
THAT MAY BE LEVIED BY OR ON BEHALF OF ANY LOCAL GOVERNMENT,  OTHER  THAN
THE  CITY  OF  NEW  YORK  AND  THE COUNTIES CONTAINED THEREIN, SHALL NOT
EXCEED THE TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
2. WHEN USED IN THIS SECTION:
(A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS  THE  INFLATION  FACTOR;
PROVIDED,  HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
(B) "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES  ASSOCIATED
WITH CAPITAL PROJECTS THAT HAVE BEEN APPROVED BY THE QUALIFIED VOTERS OF
(C) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNT BY WHICH THE TAX
LEVY  FOR  THE  PRIOR  FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH
FISCAL YEAR, IF ANY, BUT NO MORE THAN ONE AND ONE-HALF  PERCENT  OF  THE
TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
(D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
EXPENDITURES, IF ANY.
LBD12008-03-1
S. 2706                             2
(E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR  WHICH  A  TAX  LEVY LIMITATION SHALL BE DETERMINED PURSUANT TO THIS
(F)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START  OF  THE  COMING  FISCAL  YEAR  MINUS  THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF  THE  NATIONAL
CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
(G)  "LOCAL  GOVERNMENT"  MEANS  A  COUNTY,  CITY, TOWN, VILLAGE, FIRE
DISTRICT, OR SPECIAL DISTRICT INCLUDING BUT NOT LIMITED  TO  A  DISTRICT
CREATED  PURSUANT  TO ARTICLES TWELVE, TWELVE-A, TWELVE-C OR THIRTEEN OF
THE TOWN LAW, ARTICLES FIVE-A, FIVE-B OR FIVE-D OF THE COUNTY LAW, CHAP-
TER FIVE HUNDRED SIXTEEN OF THE LAWS OF NINETEEN  HUNDRED  TWENTY-EIGHT,
OR  CHAPTER  TWO  HUNDRED  SEVENTY-THREE OF THE LAWS OF NINETEEN HUNDRED
THIRTY-NINE, BUT SHALL NOT INCLUDE THE CITY OF NEW YORK OR THE  COUNTIES
(H)  "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
(I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
IS AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER,  THAT
THE  TAX  LEVY  LIMIT  SHALL NOT INCLUDE THE LOCAL GOVERNMENT'S APPROVED
CAPITAL TAX LEVY, IF ANY.
3. (A) SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS  SECTION,
BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND TWELVE, NO
LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY  THAT  IS
GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR.
(B)  THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION FOR
EACH LOCAL GOVERNMENT BY THE ONE HUNDRED  TWENTIETH  DAY  PRECEDING  THE
COMMENCEMENT  OF  EACH  LOCAL GOVERNMENT'S FISCAL YEAR, AND SHALL NOTIFY
EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
(C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
(I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR  THE  PRIOR  FISCAL
(II)  ADD  ANY  PAYMENTS  IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR FISCAL YEAR.
(III) SUBTRACT THE APPROVED CAPITAL TAX  LEVY  FOR  THE  PRIOR  FISCAL
YEAR, IF ANY.
(IV)  SUBTRACT  THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT OF A
TORT ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL  YEAR,
(V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(VI)  SUBTRACT  ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
(VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
(D) IN THE EVENT THE GOVERNING BODY OF A LOCAL GOVERNMENT HAS APPROVED
A LEGAL SETTLEMENT OF A TORT ACTION AGAINST THE GOVERNMENT,  THE  ANNUAL
COSTS  OF  WHICH  EXCEED TEN PERCENT OF THE PROPERTY TAXES LEVIED BY THE
LOCAL GOVERNMENT IN THE PRIOR FISCAL YEAR, THE STATE  COMPTROLLER,  UPON
APPLICATION  BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY LIMITATION
S. 2706                             3
FOR THE COMING FISCAL YEAR  APPLICABLE  TO  SUCH  LOCAL  GOVERNMENT,  BY
ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
(E)  THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX LEVY
OF EACH COUNTY THAT IS ATTRIBUTABLE TO ANY INCREASE OR DECREASE OVER THE
PRIOR YEAR IN THE COST OF THE COUNTY SHARE OF DIRECT CASH ASSISTANCE  TO
PERSONS  ELIGIBLE  FOR  THE  FEDERAL-STATE-LOCAL TEMPORARY ASSISTANCE TO
NEEDY FAMILIES PROGRAM OR THE STATE-LOCAL SAFETY NET ASSISTANCE  PROGRAM
AND SHALL ADJUST THE TAX LEVY LIMITATION FOR SUCH COUNTY TO REFLECT SUCH
(F) WHENEVER THE RESPONSIBILITY AND ASSOCIATED COST OF A LOCAL GOVERN-
MENT  ACTIVITY  IS  TRANSFERRED  TO  ANOTHER LOCAL GOVERNMENT, THE STATE
COMPTROLLER SHALL DETERMINE THE COSTS AND SAVINGS ON THE AFFECTED  LOCAL
GOVERNMENTS  ATTRIBUTABLE  TO  SUCH  TRANSFER  FOR THE FIRST FISCAL YEAR
FOLLOWING THE TRANSFER, AND ADJUST THE  TAX  LEVY  LIMITATIONS  OF  SUCH
LOCAL GOVERNMENTS ACCORDINGLY.
4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS  GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR ONLY
IF THE GOVERNING BODY OF  SUCH  LOCAL  GOVERNMENT  FIRST  ENACTS,  BY  A
TWO-THIRDS  VOTE  OF THE TOTAL VOTING POWER OF SUCH BODY, A LOCAL LAW TO
OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR  ONLY,  OR  IN  THE
CASE OF A DISTRICT OR FIRE DISTRICT, A RESOLUTION TO OVERRIDE SUCH LIMI-
TATION FOR SUCH COMING FISCAL YEAR ONLY.
5. (A) WHEN TWO OR MORE LOCAL GOVERNMENTS CONSOLIDATE, THE STATE COMP-
TROLLER  SHALL  DETERMINE  THE  TAX  LEVY  LIMITATION CONSOLIDATED LOCAL
GOVERNMENT FOR THE FIRST FISCAL YEAR FOLLOWING THE  CONSOLIDATION  BASED
ON  THE  RESPECTIVE  TAX LEVY LIMITATIONS OF THE COMPONENT LOCAL GOVERN-
MENTS THAT FORMED SUCH  CONSOLIDATED  LOCAL  GOVERNMENT  FROM  THE  LAST
FISCAL YEAR PRIOR TO THE CONSOLIDATION.
(B)  WHEN  A  LOCAL  GOVERNMENT DISSOLVES, THE STATE COMPTROLLER SHALL
DETERMINE THE TAX LEVY LIMITATION FOR THE LOCAL GOVERNMENT THAT  ASSUMES
THE  DEBTS, LIABILITIES, AND OBLIGATIONS OF SUCH DISSOLVED LOCAL GOVERN-
MENT FOR THE FIRST FISCAL YEAR FOLLOWING THE DISSOLUTION  BASED  ON  THE
RESPECTIVE  TAX  LEVY LIMITATIONS OF SUCH DISSOLVED LOCAL GOVERNMENT AND
SUCH LOCAL GOVERNMENT THAT ASSUMES THE  DEBTS,  LIABILITIES,  AND  OBLI-
GATIONS  OF  SUCH  DISSOLVED  LOCAL GOVERNMENT FROM THE LAST FISCAL YEAR
PRIOR TO THE DISSOLUTION.
(C) THE TAX LIMITATION ESTABLISHED BY THIS SECTION SHALL NOT APPLY  TO
THE  FIRST  FISCAL YEAR AFTER A LOCAL GOVERNMENT IS NEWLY ESTABLISHED OR
CONSTITUTED THROUGH A PROCESS OTHER THAN CONSOLIDATION OR DISSOLUTION.
6. IN THE EVENT A LOCAL GOVERNMENT'S  ACTUAL  TAX  LEVY  FOR  A  GIVEN
FISCAL  YEAR  EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTABLISHED PURSUANT
TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE  LOCAL  GOVERN-
MENT  SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE
WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
USE SUCH FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET  THE  TAX  LEVY
FOR THE ENSUING FISCAL YEAR.
S  2.  The  education law is amended by adding a new section 2023-a to
S 2023-A.  LIMITATIONS UPON SCHOOL DISTRICT TAX LEVIES. 1.  GENERALLY.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF TAXES THAT MAY BE LEVIED
BY  OR  ON  BEHALF  OF  ANY  SCHOOL  DISTRICT,  OTHER THAN A CITY SCHOOL
DISTRICT OF A CITY WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS  OR
MORE,  SHALL NOT EXCEED THE TAX LEVY LIMITATIONS ESTABLISHED PURSUANT TO
THIS SECTION. IT SHALL BE THE  RESPONSIBILITY  OF  THE  COMMISSIONER  TO
ANNUALLY DETERMINE THE TAX LEVY LIMIT OF EACH SCHOOL DISTRICT IN ACCORD-
ANCE WITH THE PROVISIONS OF THIS SECTION.
S. 2706                             4
2. DEFINITIONS. AS USED IN THIS SECTION:
A.  "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
B. "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNTS BY WHICH THE TAX
LEVY FOR THE PRIOR SCHOOL YEAR WAS BELOW THE APPLICABLE TAX  LEVY  LIMIT
FOR  SUCH SCHOOL YEAR, IF ANY, BUT NO MORE THAN ONE AND ONE-HALF PERCENT
OF THE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR.
C. "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH  BUDG-
ETED  EXPENDITURES  RESULTING FROM THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF SCHOOL BUILDINGS,  INCLUDING
DEBT  SERVICE  AND  LEASE  EXPENDITURES,  SUBJECT TO THE APPROVAL OF THE
QUALIFIED VOTERS WHERE REQUIRED BY LAW.
D. "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT  CAPITAL
LOCAL EXPENDITURES, IF ANY.
E.  "COMING  SCHOOL  YEAR"  MEANS  THE  SCHOOL YEAR FOR WHICH TAX LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.
F. "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE  AVERAGE  OF  THE
NATIONAL  CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST OF THE
CURRENT YEAR MINUS THE AVERAGE OF THE NATIONAL  CONSUMER  PRICE  INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD  PRECEDING  JANUARY FIRST OF THE PRIOR YEAR, DIVIDED BY: (II) THE
AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED
STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY
FIRST  OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
G. "PRIOR SCHOOL YEAR" MEANS THE SCHOOL YEAR IMMEDIATELY PRECEDING THE
H. "SCHOOL DISTRICT" MEANS A COMMON SCHOOL DISTRICT, UNION FREE SCHOOL
DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH  SCHOOL  DISTRICT  OR  A
CITY  SCHOOL  DISTRICT  IN A CITY WITH LESS THAN ONE HUNDRED TWENTY-FIVE
THOUSAND INHABITANTS.
I. "TAX LEVY BASE" MEANS THE AMOUNT OF TAXES A SCHOOL  DISTRICT  WOULD
BE  AUTHORIZED  TO  LEVY WITHOUT THE ADDITION OF ANY AVAILABLE CARRYOVER
J. "TAX LEVY LIMIT" MEANS THE AMOUNT OF TAXES  A  SCHOOL  DISTRICT  IS
AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT THE
TAX  LEVY  LIMIT  SHALL  NOT INCLUDE THE DISTRICT'S CAPITAL TAX LEVY, IF
3. COMPUTATION OF TAX LEVY LIMITS. A.  THE  TAX  LEVY  BASE  FOR  EACH
SCHOOL YEAR SHALL BE DETERMINED AS FOLLOWS:
(1)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL
(2) ADD ANY PAYMENTS IN LIEU OF TAXES  THAT  WERE  RECEIVABLE  IN  THE
PRIOR SCHOOL YEAR.
(3) SUBTRACT THE CAPITAL TAX LEVY FOR THE PRIOR SCHOOL YEAR, IF ANY.
(4) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(5)  SUBTRACT  ANY  PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
B. THE TAX LEVY LIMIT FOR THE COMING SCHOOL YEAR SHALL BE THE  SUM  OF
THE  TAX  LEVY  BASE  AND THE AVAILABLE CARRYOVER, IF ANY. NO LATER THAN
MARCH FIRST OF EACH YEAR, THE COMMISSIONER SHALL CALCULATE THE TAX  LEVY
LIMIT  FOR  EACH  SCHOOL  DISTRICT FOR THE COMING SCHOOL YEAR, AND SHALL
S. 2706                             5
NOTIFY EACH SCHOOL DISTRICT OF THE ALLOWABLE  LEVY  GROWTH  FACTOR,  THE
DISTRICT'S TAX LEVY BASE AND THE DISTRICT'S TAX LEVY LIMIT.
4.  REORGANIZED  SCHOOL  DISTRICTS.  WHEN TWO OR MORE SCHOOL DISTRICTS
REORGANIZE, THE COMMISSIONER SHALL DETERMINE THE TAX LEVY LIMIT FOR  THE
REORGANIZED  SCHOOL  DISTRICT  FOR  THE  FIRST SCHOOL YEAR FOLLOWING THE
REORGANIZATION BASED ON THE RESPECTIVE TAX LEVY  LIMITS  OF  THE  SCHOOL
DISTRICTS THAT FORMED THE REORGANIZED DISTRICT FROM THE LAST SCHOOL YEAR
IN  WHICH  THEY  WERE  SEPARATE DISTRICTS, PROVIDED THAT IN THE EVENT OF
FORMATION OF A NEW CENTRAL HIGH SCHOOL DISTRICT, THE TAX LEVY LIMITS FOR
THE NEW CENTRAL HIGH SCHOOL DISTRICT AND ITS COMPONENT SCHOOL  DISTRICTS
SHALL  BE  DETERMINED IN ACCORDANCE WITH A METHODOLOGY PRESCRIBED BY THE
5. ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX  LEVY
FOR  A  GIVEN  SCHOOL  YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTAB-
LISHED PURSUANT TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE
SCHOOL DISTRICT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE  IN
ACCORDANCE   WITH   SUCH  REQUIREMENTS  AS  THE  STATE  COMPTROLLER  MAY
PRESCRIBE, AND SHALL USE SUCH FUNDS AND ANY INTEREST EARNED  THEREON  TO
OFFSET THE TAX LEVY FOR THE ENSUING SCHOOL YEAR.
S  3.  The  education law is amended by adding a new section 2023-b to
S 2023-B. VOTER APPROVAL OF TAX LEVY LIMITATIONS. 1. THE TAX LEVY  FOR
ANY  SCHOOL  DISTRICT SUBJECT TO THE TAX LEVY LIMITATIONS ESTABLISHED BY
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS ARTICLE SHALL BE APPROVED BY
THE QUALIFIED VOTERS OF THE SCHOOL DISTRICT AS PROVIDED IN THIS SECTION.
AS USED IN THIS SECTION, THE TERM "TAX LEVY PROPOSITION" MEANS A  PROPO-
SITION TO AUTHORIZE A TAX LEVY SUFFICIENT TO SUPPORT THE PROPOSED SCHOOL
DISTRICT BUDGET, EXCLUDING ANY PROPOSED CAPITAL TAX LEVY.
2. A. THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION OF A SCHOOL DISTRICT
SHALL  PRESENT AT THE ANNUAL MEETING AND ELECTION A TAX LEVY PROPOSITION
IN SUBSTANTIALLY THE FOLLOWING FORM:   "SHALL  THE  SCHOOL  DISTRICT  BE
AUTHORIZED TO IMPOSE A TAX LEVY FOR THE SCHOOL YEAR, EXCLUDING ANY CAPI-
TAL  TAX  LEVY,  OF  ______  WHEN  THE STATUTORY TAX LEVY LIMIT FOR THAT
SCHOOL YEAR IS ______?"
B. EXCEPT AS OTHERWISE PROVIDED IN SECTION TWO THOUSAND TWENTY-THREE-A
OF THIS ARTICLE, IF THE PROPOSED TAX LEVY DOES NOT EXCEED THE  TAX  LEVY
LIMIT DETERMINED PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS
ARTICLE, THEN THE PROPOSITION SHALL BE APPROVED IF OVER FIFTY PERCENT OF
THE  VOTES CAST THEREON ARE IN THE AFFIRMATIVE. IF THE PROPOSED TAX LEVY
EXCEEDS THE TAX LEVY LIMIT DETERMINED PURSUANT TO SECTION  TWO  THOUSAND
TWENTY-THREE-A  OF  THIS ARTICLE, THEN THE PROPOSITION SHALL BE APPROVED
IF OVER SIXTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE.
C. IF THE TAX LEVY PROPOSITION IS APPROVED BY  THE  QUALIFIED  VOTERS,
THE  TAX  LEVY  LIMIT IMPOSED THEREBY SHALL BE DEEMED TO BE THE TAX LEVY
LIMIT FOR THE SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND THE  TRUS-
TEES  OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT COMPLIES WITH SUCH
TAX LEVY LIMIT.  IF THE TAX LEVY PROPOSITION  IS  NOT  APPROVED  BY  THE
QUALIFIED  VOTERS, THEN THE TRUSTEES OR BOARD OF EDUCATION SHALL PRESENT
ON THE THIRD TUESDAY OF JUNE A TAX LEVY PROPOSITION IN  ACCORDANCE  WITH
PARAGRAPHS  A  AND  B  OF  THIS SUBDIVISION.   IF, HOWEVER, THE TAX LEVY
PROPOSITION IS THEN NOT APPROVED BY THE QUALIFIED VOTERS, THEN THE TRUS-
TEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY
NO GREATER THAN THAT FOR THE PRIOR SCHOOL YEAR.
S 4. Subdivisions 1 and 3 of section 416 of the education law,  subdi-
vision 1 as amended by chapter 687 of the laws of 1949 and subdivision 3
S. 2706                             6
as  amended  by  chapter 171 of the laws of 1996, are amended to read as
1. A majority of the voters of any school district, present and voting
at  any annual or special district meeting, duly convened, may authorize
such acts and vote such taxes as they shall deem  expedient  for  making
additions,  alterations, repairs or improvements, to the sites or build-
ings belonging to the  district,  or  for  altering  and  equipping  for
library use any former schoolhouse belonging to the district, or for the
purchase  of  other sites or buildings, or for a change of sites, or for
the purchase of land and buildings  for  agricultural,  athletic,  play-
ground  or social center purposes, or for the erection of new buildings,
or for building a bus garage, or for [buying apparatus,  implements,  or
fixtures,  or  for  paying  the  wages  of  teachers,  and the necessary
expenses of the school, or for the purpose of paying  any  judgment,  or
for] the payment or refunding of an outstanding bonded indebtedness[, or
for such other purpose relating to the support and welfare of the school
as they may, by resolution, approve].
3.  No  addition to or change of site or purchase of a new site or tax
for the purchase of any new site or structure, or for grading or improv-
ing a school site, or for the purchase of an addition to the site of any
schoolhouse, or for the purchase of lands  and  buildings  for  agricul-
tural,  athletic,  playground or social center purposes, or for building
any new schoolhouse or for the erection of an addition  to  any  school-
house  already  built, or for the payment or refunding of an outstanding
bonded indebtedness, shall be voted at any such meeting in a union  free
school  district or a city school district [which conducts annual budget
votes in accordance with article forty-one of this chapter  pursuant  to
section  twenty-six  hundred  one-a of this chapter] IN A CITY WITH LESS
THAN ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS, unless  a  notice  by
the board of education stating that such tax will be proposed, and spec-
ifying  the object thereof and the amount to be expended therefor, shall
have been given in the manner provided herein for the notice of an annu-
al meeting. In a common school district the notice of a special  meeting
to authorize any of the improvements enumerated in this section shall be
given  as provided in [section two thousand six] THIS CHAPTER. The board
of education of a union free school district or a city  school  district
[which conducts annual budget votes in accordance with article forty-one
of  this  chapter  pursuant  to section twenty-six hundred one-a of this
chapter] IN A CITY WITH  LESS  THAN  ONE  HUNDRED  TWENTY-FIVE  THOUSAND
INHABITANTS, may determine that the vote upon any question to be submit-
ted at a special meeting as provided in this section shall be by ballot,
in  which  case it shall state in the notice of such special meeting the
hours during which the polls shall be kept open. Printed ballots may  be
prepared  by  the board in advance of the meeting and the proposition or
propositions called for in the notice of the meeting may be submitted in
substantially the same manner as propositions to  be  voted  upon  at  a
S  5.  Subdivisions 14, 15, 18 and 24 of section 1604 of the education
law, subdivision 14 and 18 as amended by chapter  654  of  the  laws  of
1953, are amended to read as follows:
14.  To  keep  each  of  the  schoolhouses under their charge, and its
furniture, school apparatus and appurtenances, in necessary  and  proper
repair, and make the same reasonably comfortable for use[, but shall not
expend  therefor  without  vote  of the district an amount to exceed one
hundred dollars in any one year].
S. 2706                             7
15. To make any repairs and  abate  any  nuisances,  pursuant  to  the
direction of the district superintendent as herein provided, and provide
fuel,  stoves or other heating apparatus, pails, brooms and other imple-
ments necessary to keep the schoolhouses and the schoolrooms clean,  and
make  them  reasonably  comfortable for use[, when no provision has been
made therefor by a vote of  the  district,  or  the  sum  voted  by  the
district for said purposes shall have proved insufficient].
18.  To  [expend  in  the]  purchase [of] a dictionary, books, reprod-
uctions of standard works of art, maps, globes or other  school  appara-
tus,  including  implements,  apparatus  and supplies for instruction in
agriculture, or for conducting athletic playgrounds  and  social  center
activities[,  a sum not exceeding fifty dollars in any one year, without
a vote of the district].
24. To furnish lighting facilities, janitorial  care  and  supervision
for  highway underpasses [when authorized to do so by vote of a district
meeting under the provisions of subdivision twenty of section two  thou-
sand fifteen of this chapter].
S  6.  Section  1608  of the education law, as amended by section 5 of
part A of chapter 436 of the laws of  1997,  subdivisions  2  and  4  as
amended  by chapter 640 of the laws of 2008, subdivision 7 as amended by
section 4 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision 7 as amended by chapter 238 of the laws of 2007, is  amended
S  1608.  Estimated expenses for ensuing year. 1. It shall be the duty
of the trustees of each common school district to present at the  annual
budget  hearing  a  detailed statement in writing of the amount of money
which will be required for the ensuing year for school purposes,  speci-
fying  the several purposes and the amount for each. The amount for each
purpose estimated necessary for payments to boards of cooperative educa-
tional services shall be shown in full, with no deduction  of  estimated
state aid. The amount of state aid provided and its percentage relation-
ship  to  the total expenditures shall also be shown. This section shall
not be construed to prevent the trustees from presenting such  statement
at a budget hearing held not less than seven nor more than fourteen days
prior to a special meeting called for the purpose, nor from presenting a
supplementary and amended statement or estimate at any time.
2.  Such  statement  shall be completed at least seven days before the
budget hearing at which it is to be presented and copies  thereof  shall
be  prepared and made available, upon request and at the school district
offices, at any public library or free association  library  within  the
district  and  on the school district's internet website, if one exists,
to residents within the district during  the  period  of  fourteen  days
immediately  preceding  the  annual  meeting  [and  election  or special
district meeting at which the budget vote will occur] and at such  meet-
ing or hearing. The board shall also as a part of the notice required by
section two thousand three of this chapter give notice of the date, time
and place of the budget hearing and that a copy of such statement may be
obtained  by  any  resident  in  the district at each schoolhouse in the
district in which school is maintained during certain  designated  hours
on each day other than a Saturday, Sunday or holiday during the fourteen
days  immediately preceding such meeting. The board shall include notice
of the availability of such statement at least once  during  the  school
year in any district-wide mailing distributed.
3.  Commencing with the proposed budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, such proposed  budget  shall  be  in
plain  language  and shall be consistent with regulations promulgated by
S. 2706                             8
the commissioner pursuant to subdivision  twenty-six  of  section  three
hundred  five of this chapter. Categorization of and format for revenue,
including payments in lieu of taxes, property tax refunds from  certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes  in  such data from the prior year and, in the case of [a resub-
mitted or] AN amended budget, changes in such information from the prior
year's submitted budget, shall be complete and accurate and set forth in
such a manner as to best promote public comprehension and readability.
4. Commencing with the proposed budget for the nineteen hundred  nine-
ty-eight--ninety-nine   school  year,  such  proposed  budget  shall  be
presented in three components: a program component, a capital  component
and  an administrative component which shall be separately delineated in
accordance with regulations of the commissioner after consultation  with
local  school  district  officials.  The  administrative component shall
include, but need not be limited to, office and  central  administrative
expenses, traveling expenses and all compensation, salaries and benefits
of  all school administrators and supervisors, including business admin-
istrators, superintendents of schools and deputy,  assistant,  associate
or  other  superintendents  under  all  existing employment contracts or
collective bargaining agreements, any and  all  expenditures  associated
with  the  operation  of the office of trustee or board of trustees, the
office of the superintendent of  schools,  general  administration,  the
school  business office, consulting costs not directly related to direct
student services and programs, planning  and  all  other  administrative
activities. The program component shall include, but need not be limited
to, all program expenditures of the school district, including the sala-
ries  and benefits of teachers and any school administrators or supervi-
sors who spend a majority of their time performing teaching duties,  and
all  transportation  operating  expenses.    The capital component shall
include, but need not be limited to, all  transportation  capital,  debt
service,  and  lease expenditures; costs resulting from judgments in tax
certiorari proceedings or the payment of awards  from  court  judgments,
administrative  orders or settled or compromised claims; and all facili-
ties costs of the school district, including facilities  lease  expendi-
tures,  the  annual  debt  service  and  total  debt  for all facilities
financed by bonds and notes of the school district,  and  the  costs  of
construction, acquisition, reconstruction, rehabilitation or improvement
of  school  buildings, provided that such budget shall include a rental,
operations and maintenance section that includes base rent costs,  total
rent  costs, operation and maintenance charges, cost per square foot for
each facility leased by the school district, and any  and  all  expendi-
tures   associated   with   custodial  salaries  and  benefits,  service
contracts, supplies, utilities, and maintenance and  repairs  of  school
facilities.  [For  the  purposes  of the development of a budget for the
nineteen hundred ninety-eight--ninety-nine school year, the  trustee  or
board  of  trustees  shall  separate the district's program, capital and
administrative costs for the nineteen hundred ninety-seven--ninety-eight
school year in the manner as if  the  budget  for  such  year  had  been
presented in three components.]
5.  The  trustee or board of trustees shall append to the statement of
estimated expenditures a detailed statement of the total compensation to
be paid to the superintendent of schools, and any assistant or associate
superintendents of schools in  the  ensuing  school  year,  including  a
delineation  of  the salary, annualized cost of benefits and any in-kind
or other form of remuneration. The trustees shall also append a list  of
all  other  school  administrators and supervisors, if any, whose annual
S. 2706                             9
salary will be eighty-five thousand  dollars  or  more  in  the  ensuing
school year, with the title of their positions and annual salary identi-
fied;  provided  however,  that  the commissioner may adjust such salary
level to reflect increases in administrative salaries after June thirti-
eth,  nineteen hundred ninety-eight. The trustees shall submit a copy of
such list and statement, in a form prescribed by  the  commissioner,  of
compensation  to  the commissioner within five days after their prepara-
tion. The commissioner shall compile such data, together with  the  data
submitted  pursuant  to  subdivision  three of section seventeen hundred
sixteen of this chapter, into  a  single  statewide  compilation,  which
shall  be  made  available  to  the governor, the legislature, and other
interested parties upon request.
6. Each year, the board of education shall prepare a  school  district
report card, pursuant to regulations of the commissioner, and shall make
it  publicly available by transmitting it to local newspapers of general
circulation, appending it to copies of the proposed budget made publicly
available as required by law, making it available  for  distribution  at
the  annual  meeting,  and otherwise disseminating it as required by the
commissioner. Such report card shall include measures  of  the  academic
performance  of  the  school  district, on a school by school basis, and
measures of the fiscal performance of the district, as prescribed by the
commissioner. Pursuant to regulations of the  commissioner,  the  report
card  shall  also  compare  these measures to statewide averages for all
public schools, and statewide averages for public schools of  comparable
wealth  and  need, developed by the commissioner. Such report card shall
include, at a minimum, any information on the school district  regarding
pupil  performance  and expenditure per pupil required to be included in
the annual report by the regents to the  governor  and  the  legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information  required  by the commissioner. School districts (i) identi-
fied as having fifteen percent or more  of  their  students  in  special
education,  or  (ii)  which have fifty percent or more of their students
with disabilities  in  special  education  programs  or  services  sixty
percent  or  more  of the school day in a general education building, or
(iii) which have eight percent or more of their students with  disabili-
ties  in special education programs in public or private separate educa-
tional settings shall indicate on  their  school  district  report  card
their respective percentages as defined in this [subparagraph] PARAGRAPH
and [subparagraphs] PARAGRAPHS (i) and (ii) of this [paragraph] SUBDIVI-
SION as compared to the statewide average.
7. a. Each year, commencing with the proposed budget for the two thou-
sand--two  thousand  one  school  year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local newspapers of general circulation, appending it to copies  of  the
proposed  budget  made  publicly available as required by law, making it
available for distribution at the annual [meeting] BUDGET  HEARING,  and
otherwise  disseminating it as required by the commissioner. Such report
card shall include: (i) the amount of total spending and total estimated
school tax levy that would result from adoption of the  proposed  budget
and  the  percentage  increase  or  decrease in total spending and total
school tax levy from the school district budget for the preceding school
year; and (ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX  LEVY  BASE  DETER-
MINED PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE, THE
TAX  LEVY  PROPOSED  BY  THE DISTRICT, THE PROPOSED CAPITAL TAX LEVY, IF
ANY; AND (III) the projected enrollment growth for the school  year  for
S. 2706                            10
which  the  budget  is prepared, and the percentage change in enrollment
from the previous year; and [(iii)] (IV) the percentage increase in  the
consumer price index, as defined in paragraph c of this subdivision; and
[(iv)]  (V)  the  projected amount of the unappropriated unreserved fund
balance that will be retained if the proposed  budget  is  adopted,  the
projected  amount  of the reserved fund balance, the projected amount of
the appropriated fund balance, the percentage  of  the  proposed  budget
that  the  unappropriated unreserved fund balance represents, the actual
unappropriated unreserved fund balance retained in the  school  district
budget  for  the preceding school year, and the percentage of the school
district budget for the preceding school year that the  actual  unappro-
priated unreserved fund balance represents.
b.  A  copy  of  the  property tax report card prepared for the annual
[district meeting] BUDGET HEARING shall be submitted to  the  department
in  the  manner  prescribed by the department by the end of the business
day next following approval of the report card by the trustee  or  board
of  trustees,  but no later than twenty-four days prior to the statewide
uniform voting day. The department  shall  compile  such  data  for  all
school  districts  [whose budgets are subject to a vote of the qualified
voters] SUBJECT TO A TAX LEVY LIMITATION PURSUANT TO SECTION  TWO  THOU-
SAND TWENTY-THREE-A OF THIS TITLE and shall make such compilation avail-
able  electronically  at  least  ten days prior to the statewide uniform
voting day.
c. For purposes of  this  subdivision,  "percentage  increase  in  the
consumer  price  index"  shall  mean  the percentage that represents the
product of one hundred and the quotient  of:  (i)  the  average  of  the
period  preceding  January  first of the prior year, divided by (ii) the
first  of  the prior year, with the result expressed as a decimal to two
S 7. Subdivisions 22 and 28 of  section  1709  of  the  education  law
subdivision  22  as  amended  by  chapter  682  of the laws of 2002, are
22. To provide, purchase, lease, furnish  and  maintain  buildings  or
other suitable accommodations for the use of teachers or other employees
of  the  district  [when  duly  authorized by a meeting of the district]
SUBJECT TO THE APPROVAL OF VOTERS WHERE OTHERWISE REQUIRED BY  LAW,  and
to  raise  by  tax  upon the taxable property of the district and moneys
necessary for such purposes; and also to provide, maintain and operate a
cafeteria or restaurant service for the use of pupils and teachers while
at school. Such cafeteria may  be  used  by  the  community  for  school
related  functions  and  activities  and to furnish meals to the elderly
residents, sixty years of age or older, of the district. Such  CAFETERIA
OR  RESTAURANT  SERVICE  AND  SUCH  utilization  shall be subject to the
approval of the board of education.  Charges shall be sufficient to meet
the direct cost of preparing and serving such meals, reducible by avail-
able reimbursements.
28. To furnish lighting facilities, janitorial  care  and  supervision
S. 2706                            11
S  8.  Section  1716  of the education law, as amended by section 7 of
section 5 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision  7 as amended by chapter 238 of the laws of 2007, is amended
S 1716. Estimated expenses for ensuing year. 1. It shall be  the  duty
of  the  board  of  education  of each district to present at the annual
budget hearing a detailed statement in writing of the  amount  of  money
which  will be required for the ensuing year for school purposes, speci-
fying the several purposes and the amount for each. The amount for  each
tional  services  shall be shown in full, with no deduction of estimated
ship to the total expenditures shall also be shown. This  section  shall
not  be construed to prevent the board from presenting such statement at
a budget hearing held not less than seven nor more  than  fourteen  days
section  two thousand four of this chapter give notice of the date, time
obtained by any resident in the district  at  each  schoolhouse  in  the
district  in  which school is maintained during certain designated hours
days immediately preceding such meeting. The board shall include  notice
of  the  availability  of such statement at least once during the school
3. Commencing with the proposed budget for the nineteen hundred  nine-
ty-seven--ninety-eight  school  year,  such  proposed budget shall be in
plain language and shall be consistent with regulations  promulgated  by
the  commissioner  pursuant  to  subdivision twenty-six of section three
hundred five of this chapter. Categorization of and format for  revenue,
including  payments in lieu of taxes, property tax refunds from certior-
changes in such data from the prior year and, in the case of  [a  resub-
year  submitted  budget, shall be complete and accurate and set forth in
S. 2706                            12
with  the  operation of the board of education, the office of the super-
intendent  of  schools,  general  administration,  the  school  business
office, consulting costs not directly related to direct student services
and  programs,  planning  and  all other administrative activities.  The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of teachers and any school administrators or  supervisors  who  spend  a
majority  of  their time performing teaching duties, and all transporta-
tion operating expenses. The capital component shall include,  but  need
not  be  limited to, all transportation capital, debt service, and lease
expenditures;  costs  resulting  from  judgments   in   tax   certiorari
proceedings  or  the payment of awards from court judgments, administra-
tive orders or settled or compromised claims; and all  facilities  costs
of  the  school  district,  including facilities lease expenditures, the
annual debt service and total debt for all facilities financed by  bonds
and  notes of the school district, and the costs of construction, acqui-
sition, reconstruction, rehabilitation or improvement of  school  build-
ings,  provided  that such budget shall include a rental, operations and
maintenance section that includes base rent  costs,  total  rent  costs,
operation and maintenance charges, cost per square foot for each facili-
ty  leased  by the school district, and any and all expenditures associ-
ated with custodial salaries and benefits, service contracts,  supplies,
utilities,  and  maintenance  and repairs of school facilities. [For the
purposes of the development of a budget for the nineteen  hundred  nine-
ty-eight--ninety-nine school year, the board of education shall separate
the  district's  program, capital and administrative costs for the nine-
teen hundred ninety-seven--ninety-eight school year in the manner as  if
the budget for such year had been presented in three components.]
5.  The  board of education shall append to the statement of estimated
expenditures a detailed statement of the total compensation to  be  paid
to  the superintendent of schools, and any assistant or associate super-
intendents of schools in the ensuing school year,  including  a  deline-
ation  of  the  salary,  annualized  cost of benefits and any in-kind or
other form of remuneration. The board shall also append a  list  of  all
other school administrators and supervisors, if any, whose annual salary
will be eighty-five thousand dollars or more in the ensuing school year,
with the title of their positions and annual salary identified; provided
however,  that  the commissioner may adjust such salary level to reflect
increases in administrative  salaries  after  June  thirtieth,  nineteen
hundred ninety-eight. The board of education shall submit a copy of such
list and statement, in a form prescribed by the commissioner, of compen-
sation to the commissioner within five days after their preparation. The
commissioner  shall  compile such data, together with the data submitted
pursuant to subdivision four of section sixteen hundred  eight  of  this
[chapter]  TITLE,  into  a  single statewide compilation, which shall be
made available to the governor, the legislature,  and  other  interested
parties upon request.
6.  Each  year, the board of education shall prepare a school district
it publicly available by transmitting it to local newspapers of  general
available  as  required  by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as  required  by  the
S. 2706                            13
commissioner.  Such  report  card shall include measures of the academic
performance of the school district, on a school  by  school  basis,  and
commissioner.  Pursuant  to  regulations of the commissioner, the report
card shall also compare these measures to  statewide  averages  for  all
public  schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report  card  shall
include,  at a minimum, any information of the school district regarding
pupil performance and expenditure per pupil required to be  included  in
the  annual  report  by  the regents to the governor and the legislature
information required by the commissioner. School districts  (i)  identi-
fied  as  having  fifteen  percent  or more of their students in special
education, or (ii) which have fifty percent or more  of  their  students
with  disabilities  in  special  education  programs  or  services sixty
percent or more of the school day in a general  education  building,  or
(iii)  which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate  educa-
tional  settings  shall  indicate  on  their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers of general circulation, appending it  to  copies  of  the  proposed
budget  made  publicly available as required by law, making it available
for distribution at the annual [meeting] BUDGET HEARING,  and  otherwise
disseminating it as required by the commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy  that  would  result  from  adoption of the proposed budget and the
percentage increase or decrease in total spending and total  school  tax
levy  from the school district budget for the preceding school year; and
(ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETERMINED PURSUANT
TO SECTION TWO THOUSAND TWENTY-THREE-A  OF  THIS  TITLE,  THE  TAX  LEVY
PROPOSED BY THE DISTRICT, AND THE PROPOSED CAPITAL TAX LEVY, IF ANY; AND
(III)  the projected enrollment growth for the school year for which the
budget is prepared, and the percentage change  in  enrollment  from  the
previous  year; and [(iii)] (IV) the percentage increase in the consumer
price index, as defined in paragraph c of this subdivision;  and  [(iv)]
(V)  the  projected amount of the unappropriated unreserved fund balance
that will be retained if the proposed budget is adopted,  the  projected
amount  of the reserved fund balance, the projected amount of the appro-
priated fund balance, the percentage of the  proposed  budget  that  the
unappropriated  unreserved  fund balance represents, the actual unappro-
priated unreserved fund balance retained in the school  district  budget
for the preceding school year, and the percentage of the school district
budget  for  the  preceding  school  year that the actual unappropriated
unreserved fund balance represents.
b. A copy of the property tax report  card  prepared  for  the  annual
[district  meeting]  BUDGET HEARING shall be submitted to the department
in the manner prescribed by the department by the end  of  the  business
day  next  following  approval of the report card by the board of educa-
tion, but no later than twenty-four days prior to the statewide  uniform
voting  day.    The  department  shall  compile such data for all school
districts [whose budgets are subject to a vote of the qualified  voters]
S. 2706                            14
SUBJECT  TO A TAX LEVY LIMITATION PURSUANT TO SECTION TWO THOUSAND TWEN-
TY-THREE-A OF THIS TITLE and shall make such compilation available elec-
tronically at least ten days prior to the statewide uniform voting day.
c.  For  purposes  of  this  subdivision,  "percentage increase in the
consumer price index" shall mean  the  percentage  that  represents  the
product  of  one  hundred  and  the  quotient of: (i) the average of the
current  year  minus  the average of the national consumer price indexes
period preceding January first of the prior year, divided  by  (ii)  the
average  of the national consumer price indexes determined by the United
first of the prior year, with the result expressed as a decimal  to  two
S  9.  Section 1718 of the education law, as amended by chapter 774 of
the laws of 1965 and subdivision 2 as amended by chapter 82 of the  laws
of 1995, is amended to read as follows:
S 1718. Limitation  upon expenditures.  1. No board of education shall
incur a district liability in excess of the amount  appropriated  [by  a
district  meeting]  IN  THE  BUDGET  APPROVED  BY THE BOARD OF EDUCATION
unless such board is specially authorized by law to incur  such  liabil-
2.  Notwithstanding the provisions of subdivision one of this section,
grants in aid received  from  the  state  and  federal  governments  for
specific  purposes,  other state AID OR grants in aid [identified by the
commissioner] for general use [as specified by the board of  education],
other  gifts  which  are  required to be spent for particular objects or
purposes and insurance proceeds received for the loss, theft, damage  or
destruction  of  real  or personal property, when proposed to be used or
applied to repair or replace  such  property,  may  be  appropriated  by
resolution  of  the  board  of education at any time for such objects or
S 10. Section 2005 of the education law, as amended by  section  3  of
part M of chapter 57 of the laws of 2005, is amended to read as follows:
S 2005. Special  meeting to transact business of annual meeting. When-
ever the time for holding the annual meeting in a school district  shall
pass  without such meeting being held, a special meeting[, to be held on
the date specified for a school budget revote  pursuant  to  subdivision
three  of  section two thousand seven of this part,] shall thereafter be
called by the trustees or by the clerk of such district for the  purpose
of  transacting the business of the annual meeting; and if no such meet-
ing be called by the trustees or the clerk within ten  days  after  such
time  shall  have passed, the district superintendent of the supervisory
district in which said school district is situated or  the  commissioner
[of  education] may order any inhabitant of such district to give notice
of such meeting in the manner provided in section two  thousand  one  of
this  part,  and the officers of the district shall make to such meeting
the reports required to be made at the annual meeting,  subject  to  the
same  penalty in case of neglect; and the officers elected at such meet-
ing shall hold their respective offices only until the next annual meet-
ing and until their successors are elected  and  shall  have  qualified.
Notice  of  such  annual  meeting  shall comply with the requirements of
section two thousand three or section two thousand four of this part  by
publishing  such  notices  once  in  each week within the two weeks next
preceding such special meeting, the first publication  to  be  at  least
S. 2706                            15
fourteen  days  before such meeting and any required posting to be four-
teen days before the time of such meeting. [If the qualified  voters  at
such  special  district  meeting  defeat the school district budget, the
trustees or board of education shall adopt a contingency budget pursuant
to  section  two thousand twenty-three of this part. Notwithstanding any
other provision in law, the trustees or board of education following the
adoption of a contingency budget may call a special district meeting for
a second vote on the proposed budget pursuant  to  the  requirements  of
subdivision  three of section two thousand seven or subdivision three of
section two thousand six of this chapter.]
S 11. Subdivision 3 of section 2006 of the education law is REPEALED.
S 12. Subdivision 3 of section 2007 of the education law,  as  amended
by  section 5 of part M of chapter 57 of the laws of 2005, is amended to
3. a. Notwithstanding the provisions of subdivisions one  and  two  of
this  section,  and  of section two thousand four of this part, whenever
the [voters of the district  shall  have  defeated  the  budget  of  the
district, in whole or in part, or whenever the] board of education shall
have  rejected  all  bids  for  a contract or contracts for public work,
transportation or purchase[,] and [whenever  in  either  such  case  the
board  of  education shall deem] DEEMS it necessary and proper to call a
special meeting to take appropriate action, the board of education shall
be authorized to give the notices required by subdivision one of section
two thousand four of this part by publishing such notices once  in  each
week within the two weeks next preceding such special meeting, the first
publication  to  be  at  least fourteen days before such meeting and any
required posting to be fourteen days before the time of such meeting.
b. [A school budget revote called pursuant  to  paragraph  a  of  this
subdivision shall be held on the third Tuesday of June, provided, howev-
er  that  such budget revote shall be held on the second Tuesday in June
if the commissioner at the request of a local school board certifies  no
later  than  March  first  that  such vote would conflict with religious
observances.
c.] Notwithstanding the provisions of section two thousand fourteen of
this part, where a school district shall have adopted personal registra-
tion, the board of registration shall meet on such day or days as  shall
be  fixed  by  the  board  of education, the last day of which, however,
shall not be more than seven nor less than two days preceding any school
district meeting notices for which shall have been given as provided  in
S  13.  Section  2008  of the education law is amended by adding a new
subdivision 3 to read as follows:
3. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  IT
SHALL  NOT  BE  WITHIN  THE  POWER OF THE VOTERS OF A SCHOOL DISTRICT TO
SUBMIT A PROPOSITION THAT REQUIRES THE EXPENDITURE  OF  MONEY,  PROVIDED
THAT  THE  VOTERS MAY SUBMIT A PROPOSITION TO CHANGE THE MILEAGE LIMITA-
TIONS ON TRANSPORTATION PURSUANT TO SUBDIVISION NINETEEN OF SECTION  TWO
THOUSAND TWENTY-ONE OF THIS PART.
S  14.  Subdivisions  10, 11, 12, 15, 16, 17, 18, 20 and 21 of section
2021 of the education law are REPEALED and subdivisions 8 and  19,  such
section as renumbered by chapter 801 of the laws of 1953, are amended to
8.  To  vote  a  tax  upon  the  taxable  property of the district, to
purchase, lease and improve such sites or an addition to such sites  and
grounds  for the purposes specified in [the preceding] subdivision SEVEN
OF THIS SECTION, to hire or purchase rooms or buildings for school rooms
S. 2706                            16
or schoolhouses, or to  build  schoolhouses[;  to  keep  in  repair  and
furnish  the  same with necessary fuel, furniture and appurtenances, and
to purchase such implements, apparatus and supplies as may be  necessary
to  provide  instruction  in agriculture and other subjects, and for the
organization and conduct of athletic, playground and other social center
work].
19. To [provide, by tax or otherwise, for the conveyance of] DETERMINE
WHETHER TRANSPORTATION SHOULD BE PROVIDED PURSUANT  TO  PARAGRAPH  A  OF
SUBDIVISION  ONE OF SECTION THIRTY-SIX HUNDRED THIRTY-FIVE OF THIS CHAP-
TER TO pupils residing in [a] THE school  district  WHO  ARE  IN  GRADES
KINDERGARTEN  THROUGH EIGHT AND LIVE LESS THAN TWO MILES FROM THE SCHOOL
THEY LEGALLY ATTEND OR ARE IN GRADES NINE THROUGH TWELVE AND  LIVE  LESS
THAN  THREE  MILES  FROM  SUCH SCHOOL OR TO PUPILS IN ANY GRADE WHO LIVE
MORE THAN FIFTEEN MILES FROM THE SCHOOL THEY LEGALLY ATTEND, (a) to  the
elementary  or high schools, or both, maintained in such district and/or
(b) to the elementary or high schools, or both, in any city or  district
with which an education contract shall have been made, and/or (c) to the
elementary  or high schools, or both, other than public, situated within
the district or an adjacent district or  city,  whenever  such  district
shall  have  contracted with the school authorities of any city, or with
another school district, for the education therein of the pupils  resid-
ing  in  such school district, or whenever in any school district pupils
of school age shall reside so remote from the schoolhouse therein or the
elementary or high school they legally attend,  within  or  without  the
district, that they are practically deprived of school advantages during
any portion of the school year.
S  15.  Section 2022 of the education law, as amended by section 23 of
part A of chapter 436 of the laws of  1997,  subdivisions  1  and  3  as
amended by section 8 of part C of chapter 58 of the laws of 1998, subdi-
vision  2-a  as amended by section 3 of part A of chapter 60 of the laws
of 2000, paragraph b of subdivision 2-a as amended by section 5 of  part
W of chapter 57 of the laws of 2008, subdivision 4 as amended by section
7 of part M of chapter 57 of the laws of 2005 and subdivision 6 as added
by chapter 61 of the laws of 2003, is amended to read as follows:
S  2022.  [Vote  on] ADOPTION OF school district budgets [and on the];
ANNUAL DISTRICT MEETING AND election of  school  district  trustees  and
board  of  education  members. 1. Notwithstanding any law, rule or regu-
lation to the contrary, the ANNUAL  DISTRICT  MEETING  AND  election  of
trustees or members of the board of education, and the TAX LEVY PROPOSI-
TION  vote  [upon  the  appropriation of the necessary funds to meet the
estimated expenditures,] in  any  common  school  district,  union  free
school district, central school district or central high school district
shall  be held [at the annual meeting and election] on the third Tuesday
in May, provided, however, that such  election  shall  be  held  on  the
second  Tuesday  in  May  if  the commissioner at the request of a local
school board certifies no later than  March  first  that  such  election
would  conflict  with religious observances. [When such election or vote
is taken by recording the ayes and noes of the qualified voters  attend-
ing, a majority of the qualified voters present and voting, by a hand or
voice  vote,  may determine to take up the question of voting the neces-
sary funds to meet the estimated expenditures for a specific item  sepa-
rately,  and  the  qualified  voters present and voting may increase the
amount of any estimated expenditures or  reduce  the  same,  except  for
teachers'   salaries,  and  the  ordinary  contingent  expenses  of  the
schools.] The sole trustee, board of trustees or board of  education  of
every  common,  union  free, central or central high school district and
S. 2706                            17
every city school district to which this article applies  shall  hold  a
budget  hearing not less than seven nor more than fourteen days prior to
the annual meeting and election [or special district meeting at which  a
school  budget  vote  will  occur], and shall prepare and present to the
voters at such budget hearing a proposed school district budget for  the
ensuing  school year.   IF THE QUALIFIED VOTERS HAVE APPROVED A TAX LEVY
PROPOSITION IN ACCORDANCE WITH SECTION TWO  THOUSAND  TWENTY-THREE-B  OF
THIS PART, SUCH TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT
COMPLIES  WITH  SUCH  PROPOSITION.  IF  NO TAX LEVY PROPOSITION HAS BEEN
APPROVED BY THE QUALIFIED VOTERS, THEN THE TRUSTEES OR BOARD  OF  EDUCA-
TION  SHALL ADOPT A BUDGET THAT REQUIRES A TAX LEVY, EXCLUDING ANY CAPI-
TAL TAX LEVY, THAT IS NO GREATER  THAN  THE  TAX  LEVY  BASE  DETERMINED
PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
2.  [Except  as provided in subdivision four of this section, nothing]
NOTHING in this section shall preclude the trustees or board  of  educa-
tion,  in their discretion, from submitting additional items of expendi-
ture to the voters for approval as separate propositions or  the  voters
from submitting propositions pursuant to [section] SECTIONS two thousand
eight and two thousand thirty-five of this [article] PART.
2-a.  Every  common, union free, central, central high school district
and city school district to which this  article  applies  shall  mail  a
school  budget  notice  to  all  qualified voters of the school district
after the date of the budget hearing, but no later than six  days  prior
to the annual meeting and election [or special district meeting at which
a school budget vote will occur]. The school budget notice shall compare
the percentage increase or decrease in total spending under the proposed
budget  over total spending under the school district budget adopted for
the current school year, with the percentage increase or decrease in the
consumer price index, from January first of the  prior  school  year  to
January  first  of  the current school year, and shall also include [the
information required by paragraphs a and  b  of  this  subdivision.  The
notice shall also set forth the date, time and place of the school budg-
et  vote,  in  the  same  manner as in the notice of annual meeting] THE
DISTRICT'S TAX LEVY LIMIT AND  TAX  LEVY  BASE  DETERMINED  PURSUANT  TO
SECTION  TWO THOUSAND TWENTY-THREE-A OF THIS PART, THE TAX LEVY PROPOSED
BY THE DISTRICT AND THE PROPOSED CAPITAL TAX LEVY, IF ANY.  Such  notice
shall be in a form prescribed by the commissioner.
[a.  Commencing with the proposed budget for the two thousand one--two
thousand two school year, such notice shall also include  a  description
of how total spending and the tax levy resulting from the proposed budg-
et would compare with a projected contingency budget adopted pursuant to
section  two  thousand  twenty-three of this article, assuming that such
contingency budget is adopted on  the  same  day  as  the  vote  on  the
proposed  budget.  Such  comparison  shall  be in total and by component
(program, capital and administrative), and shall include a statement  of
the assumptions made in estimating the projected contingency budget.
b.]  Commencing  with the proposed budget for the two thousand eight--
two thousand nine school year, such notice  shall  also  include,  in  a
format  prescribed  by  the commissioner, an estimate of the tax savings
that would be available to an eligible homeowner under the basic  school
tax  relief  (STAR) exemption authorized by section four hundred twenty-
five of the real property tax law if the proposed budget  were  adopted.
Such  estimate shall be made in the manner prescribed by the commission-
er, in consultation with the office of real property services.
3. In all elections for trustees or members of boards of education  or
votes  involving  the  expenditure  of money, or authorizing the levy of
S. 2706                            18
taxes, the vote thereon shall be by ballot, or, in school districts that
prior to nineteen hundred ninety-eight conducted their vote at the annu-
al meeting, may be ascertained by taking and recording the ayes and noes
of such qualified voters attending and voting at such district meetings.
4.  [In the event that the original proposed budget is not approved by
the voters, the sole trustee, trustees or board of education may adopt a
final budget pursuant to subdivision five of this section or resubmit to
the voters the original or a  revised  budget  pursuant  to  subdivision
three  of  section  two  thousand seven of this part. Upon one defeat of
such resubmitted budget, the sole trustee, trustees or board  of  educa-
tion  shall  adopt  a  final budget pursuant to subdivision five of this
section.] Notwithstanding any other provision of law  to  the  contrary,
[the  school  district  budget  for any school year, or any part of such
budget or] any propositions involving the expenditure of money for  such
school  year  shall  not be submitted for a vote of the qualified voters
[5. If the qualified  voters  fail  to  approve  the  proposed  school
district  budget upon resubmission or upon a determination not to resub-
mit for a second vote pursuant to subdivision four of this section,  the
sole trustee, trustees or board of education, after applying thereto the
public  school  moneys  and  other moneys received or to be received for
that purpose, shall levy a tax for the sum necessary for teachers' sala-
ries and other ordinary  contingent  expenses  in  accordance  with  the
provisions  of this subdivision and section two thousand twenty-three of
6. Notwithstanding the provisions of subdivision four of section eigh-
teen hundred four and subdivision five of section nineteen  hundred  six
of this title, subdivision one of section two thousand two of this arti-
cle,  subdivision  one of this section, subdivision two of section twen-
ty-six hundred one-a of this title and any other provision of law to the
contrary, the annual district meeting  and  election  of  every  common,
union  free,  central  and  central  high school district and the annual
meeting of every city school district in a city having a  population  of
less than one hundred twenty-five thousand inhabitants that is scheduled
to  be  held  on  the third Tuesday of May, two thousand three is hereby
adjourned until the first Tuesday in June, two thousand three. The trus-
tees or board of education of each such school  district  shall  provide
notice  of  such adjourned meeting to the qualified voters in the manner
prescribed for notice of the  annual  meeting,  and  such  notice  shall
provide  for an adjourned budget hearing. The adjourned district meeting
or district meeting and election shall be deemed the annual  meeting  or
annual  meeting and election of the district for all purposes under this
title and the date of the adjourned meeting shall be deemed  the  state-
wide  uniform  voting  day  for all purposes under this title.  Notwith-
standing the provisions of subdivision seven of section sixteen  hundred
eight  or subdivision seven of section seventeen hundred sixteen of this
title or any other provision of law, rule or regulation to the contrary,
in two thousand three the property tax report card shall be submitted to
the department no later than twenty  days  prior  to  the  date  of  the
adjourned  meeting  and the department shall make its compilation avail-
able electronically at least seven days prior to such date.]
S 16. Section 2023 of the education law is REPEALED.
S 17. Subdivision 2 of section 2035 of the education law,  as  amended
by chapter 111 of the laws of 1979, is amended to read as follows:
2.  In  common  school  districts  the manner of making nominations or
submitting propositions by anyone other than the trustees and  in  union
S. 2706                            19
free  school  districts  the manner of submitting propositions by anyone
other than the board of education for the purpose of  preparing  ballots
for  the machine shall be prescribed by a rule previously adopted by the
trustees  or  board  of education; provided, however, that the petition,
certificate, declaration, notice or other paper required by  such  rule,
for  the  making  of  any  such nomination or submission, except as to a
question or proposition required by law to be stated in the published or
posted notice of the meeting shall be filed with the trustees  or  board
of  education not later than thirty days before the meeting or election.
Any nomination may be rejected by the trustees if the candidate is inel-
igible for the office or has declared his unwillingness  to  serve;  any
proposition may be rejected by the trustees or board of education if the
purpose  of  the  proposition  is not within the power of the voters, or
where A PROPOSITION TO CHANGE THE MILEAGE LIMITATIONS ON  TRANSPORTATION
PURSUANT  TO  SUBDIVISION NINETEEN OF SECTION TWO THOUSAND TWENTY-ONE OF
THIS PART  WOULD  REQUIRE  the  expenditure  of  ADDITIONAL  moneys  [is
required  by  the  proposition], if the proposition fails to include the
necessary specific appropriation.   Any such rule may  be  amended  from
time  to  time  and may state that a reasonable minimum number of signa-
tures shall be required for submission.  The trustees or board of educa-
tion shall cause such rule, and amendments from  time  to  time,  to  be
printed  for  general  distribution  in the district. Provided, however,
that the provisions of any  special  law  relating  to  nominations  and
elections  in any union free school district shall continue to remain in
force, and the manner of making nominations and the conduct of  meetings
and elections, shall conform to such special law.
S  18. Paragraph a of subdivision 9 and paragraphs a and b of subdivi-
sion 12 of section 2503 of the education law, as amended by chapter  171
of the laws of 1996, are amended to read as follows:
a.  Shall  promote  the best interests of the schools and other activ-
ities committed to its care, and shall authorize, or in  its  discretion
conduct,  and  maintain  such  extra classroom activities, including the
operation of cafeterias or restaurant service  for  use  by  pupils  and
teachers,  as  the  board,  from  time to time, shall deem proper.  Such
cafeterias or restaurant service may be used by the community for school
related functions and activities and to furnish  meals  to  the  elderly
residents,  sixty  years of age or older, of the district. Such utiliza-
tion AND THE OPERATION OF CAFETERIAS  OR  RESTAURANT  SERVICE  shall  be
subject to the approval of the board of education[, and shall be subject
to  voter  approval unless the cafeteria or restaurant service was oper-
ated during the preceding school year and requires no tax levy]. Charges
shall be sufficient to meet the direct cost  of  preparing  and  serving
such meals, reducible by available reimbursements.
a.    to  and  from  schools  within the school district for distances
greater than two or three miles, as applicable, and to and from  schools
outside  the district within the mileage limitations prescribed in para-
graph a of subdivision one of section thirty-six hundred thirty-five  of
this  chapter  shall always be [an ordinary contingent expense] A CHARGE
UPON THE SCHOOL DISTRICT, and
b. for distances less than two or three miles, as applicable,  or  for
greater  than  fifteen  miles  to  and from schools outside the district
shall be [an ordinary contingent  expense]  A  CHARGE  UPON  THE  SCHOOL
DISTRICT  if:  (i) such transportation was provided during the preceding
school year and the qualified voters have not passed a special  proposi-
tion  constricting  the  mileage limitations for the current school year
from those in effect in the prior year, or  (ii)  the  qualified  voters
S. 2706                            20
have  passed  a special proposition expanding the mileage limitations in
effect in the prior year.
S  19. Section 2601-a of the education law, as added by chapter 171 of
the laws of 1996, subdivision 2 as amended by section 6 and  subdivision
4  as  amended by section 8 of part M of chapter 57 of the laws of 2005,
subdivision 3 as amended by chapter 640 of the laws of 2008, subdivision
5 as amended by section 29 of part A of chapter 436 of the laws of 1997,
subdivision 6 as amended and subdivision 7 as added by  chapter  474  of
the laws of 1996, is amended to read as follows:
S  2601-a.  Procedures  for  [adoption  of  school budgets] ANNUAL AND
SPECIAL DISTRICT MEETINGS in small city school districts. 1.  The  board
of education of each city school district subject to this article [shall
provide for the submission of a budget for approval of the voters pursu-
ant to the provisions of this section.
2.  The  board  of education] shall ADOPT A SCHOOL DISTRICT BUDGET AND
conduct all annual and special school district meetings for the  purpose
of  [adopting  a  school district budget] VOTING ON PROPOSITIONS FOR THE
EXPENDITURE OF MONEY, INCLUDING BUT NOT LIMITED  TO  VOTES  PURSUANT  TO
SECTION  FOUR  HUNDRED  SIXTEEN  OF THIS CHAPTER, AND VOTING ON TAX LEVY
PROPOSITIONS PURSUANT TO SECTION TWO  THOUSAND  TWENTY-THREE-B  OF  THIS
TITLE,  in the same manner as a union free school district in accordance
with the provisions of article forty-one of this title, except as other-
wise provided by this section. The annual meeting and election  of  each
such  city  school district shall be held on the third Tuesday of May in
each year, provided, however that such annual meeting and election shall
be held on the second Tuesday in May if the commissioner at the  request
of  a  local  school board certifies no later than March first that such
election would conflict with  religious  observances[,  and  any  school
budget revote shall be held on the date and in the same manner specified
in  subdivision  three of section two thousand seven of this title]. The
provisions of this article, and where applicable subdivisions  nine  and
nine-a  of  section twenty-five hundred two of this title, governing the
qualification and registration of voters, and procedures for  the  nomi-
nation  and election of members of the board of education shall continue
to apply, and shall govern the qualification and registration of  voters
and  voting procedures with respect to the adoption of a school district
[3.] 2. The  board  of  education  shall  prepare  a  proposed  school
district  budget  for the ensuing year in accordance with the provisions
of section seventeen hundred sixteen  of  this  chapter,  including  all
provisions  relating to required notices and appendices to the statement
of expenditures. No board of education shall  incur  a  school  district
liability  except  as  authorized by the provisions of section seventeen
hundred  eighteen  of  this  chapter.  Such  proposed  budget  shall  be
presented  in three components: a program component, a capital component
and an administrative component which shall be separately delineated  in
accordance  with regulations of the commissioner after consultation with
local school district  officials.  The  administrative  component  shall
include,  but  need not be limited to, office and central administrative
of all school administrators and supervisors, including business  admin-
istrators,  superintendents  of schools and deputy, assistant, associate
or other superintendents under  all  existing  employment  contracts  or
collective  bargaining  agreements,  any and all expenditures associated
with the operation of the board of education, the office of  the  super-
S. 2706                            21
and programs, planning and all other  administrative  activities.    The
of  teachers  and  any  school administrators or supervisors who spend a
majority of their time performing teaching duties, and  all  transporta-
tion  operating  expenses. The capital component shall include, but need
not be limited to, all transportation capital, debt service,  and  lease
expenditures;   costs   resulting   from  judgments  in  tax  certiorari
proceedings or the payment of awards from court  judgments,  administra-
tive  orders  or settled or compromised claims; and all facilities costs
of the school district, including  facilities  lease  expenditures,  the
annual  debt service and total debt for all facilities financed by bonds
and notes of the school district, and the costs of construction,  acqui-
sition,  reconstruction,  rehabilitation or improvement of school build-
ings, provided that such budget shall include a rental,  operations  and
maintenance  section  that  includes  base rent costs, total rent costs,
ty leased by the school district, and any and all  expenditures  associ-
ated  with custodial salaries and benefits, service contracts, supplies,
utilities, and maintenance and repairs of school  facilities.  [For  the
purposes  of  the development of a budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, the board of education  shall  sepa-
rate  its  program,  capital  and  administrative costs for the nineteen
hundred ninety-six--ninety-seven school year in the  manner  as  if  the
budget  for such year had been presented in three components.] Except as
provided in subdivision [four] THREE of this section,  nothing  in  this
section  shall  preclude  the  board, in its discretion, from submitting
additional items of expenditure to the voters for approval  as  separate
propositions  or  the  voters from submitting propositions [pursuant] to
THE EXTENT AUTHORIZED BY sections two thousand eight  and  two  thousand
thirty-five of this chapter.
[4. In the event the qualified voters of the district reject the budg-
et proposed pursuant to subdivision three of this section, the board may
propose  to the voters a revised budget pursuant to subdivision three of
section two thousand seven of this title  or  may  adopt  a  contingency
budget pursuant to subdivision five of this section and subdivision five
of  section  two  thousand  twenty-two  of  this  title.] 3. The [school
district budget for any school year, or any  part  of  such  budget  or]
BOARD  OF  EDUCATION  SHALL  NOT  SUBMIT  any propositions involving the
expenditure of money for such school year [shall not be submitted] for a
vote of the qualified voters more than twice. [In the event  the  quali-
fied  voters  reject  the  resubmitted  budget,  the board shall adopt a
contingency budget in accordance with subdivision five of  this  section
and  subdivision  five  of  such section two thousand twenty-two of this
5. If the qualified voters fail or refuse to vote the sum estimated to
be necessary  for  teachers'  salaries  and  other  ordinary  contingent
expenses,  the board shall adopt a contingency budget in accordance with
this subdivision and shall levy a tax  for  that  portion  of  such  sum
remaining  after  applying thereto the moneys received or to be received
from state, federal or other sources, in the same manner as if the budg-
et had been approved by the qualified voters; subject to the limitations
imposed in subdivision four of section two thousand twenty-three of this
chapter and this subdivision. The  administrative  component  shall  not
comprise a greater percentage of the contingency budget exclusive of the
S. 2706                            22
capital  component than the lesser of (1) the percentage the administra-
tive component had comprised in the prior year budget exclusive  of  the
capital  component;  or  (2) the percentage the administrative component
had  comprised  in  the  last  proposed defeated budget exclusive of the
capital component. Such contingency budget shall include the sum  deter-
mined by the board to be necessary for:
(a)  teachers'  salaries, including the salaries of all members of the
teaching and supervising staff;
(b) items of expense specifically authorized by statute to be incurred
by the board of education, including, but not limited  to,  expenditures
for transportation to and from regular school programs included as ordi-
nary  contingent  expenses  in subdivision twelve of section twenty-five
hundred three of this  chapter,  expenditures  for  textbooks,  required
services for non-public school students, school health services, special
education  services,  kindergarten  and nursery school programs, and the
district's share of the  administrative  costs  and  costs  of  services
provided by a board of cooperative educational services;
(c) items of expense for legal obligations of the district, including,
but  not limited to, contractual obligations, debt service, court orders
or judgments, orders of administrative bodies or officers, and standards
and requirements of the board of regents and the commissioner that  have
the force and effect of law;
(d)  the  purchase  of library books and other instructional materials
associated with a library;
(e) items of expense necessary to maintain the educational programs of
the district, preserve the property  of  the  district  or  protect  the
health  and safety of students and staff, including, but not limited to,
support services, pupil personnel services, the necessary  salaries  for
the   necessary   number  of  non-teaching  employees,  necessary  legal
expenses, water and utility charges, instructional supplies  for  teach-
ers'  use,  emergency  repairs,  temporary rental of essential classroom
facilities, and expenditures necessary to advise school district  voters
concerning school matters; and
(f) expenses incurred for interschool athletics, field trips and other
(g)  any other item of expense determined by the commissioner to be an
ordinary contingent expense in any school district.
6. The commissioner shall determine appeals raising  questions  as  to
what  items  of expenditure are ordinary contingent expenses pursuant to
subdivision five of this section in accordance with section two thousand
twenty-four and three hundred ten of this chapter.
7.] 4. Each year, the  board  of  education  shall  prepare  a  school
district  report  card, pursuant to regulations of the commissioner, and
shall make it publicly available by transmitting it to local  newspapers
of  general  circulation,  appending it to copies of the proposed budget
made publicly available as required by  law,  making  it  available  for
distribution  at  the  annual meeting, and otherwise disseminating it as
required by the commissioner. Such report card shall include measures of
the academic performance of the school district, on a school  by  school
basis,  and  measures  of  the  fiscal  performance  of the district, as
prescribed by the commissioner. Pursuant to regulations of  the  commis-
sioner,  the  report card shall also compare these measures to statewide
averages for all public  schools,  and  statewide  averages  for  public
schools  of  comparable  wealth and need, developed by the commissioner.
Such report card shall include, at a minimum,  any  information  on  the
school  district  regarding  pupil performance and expenditure per pupil
S. 2706                            23
required to be included in the annual  report  by  the  regents  to  the
governor  and  the legislature pursuant to section two hundred fifteen-a
of this chapter; and any other information required by the commissioner.
School  districts  (i)  identified  as having fifteen percent or more of
their students in special education, or (ii) which have fifty percent or
more of their students with disabilities in special  education  programs
or  services sixty percent or more of the school day in a general educa-
tion building, or (iii) which  have  eight  percent  or  more  of  their
students  with  disabilities  in special education programs in public or
private separate educational settings shall  indicate  on  their  school
district  report  card  their  respective percentages as defined in this
paragraph and paragraphs (i) and (ii) of this subdivision as compared to
the statewide average.
S 20. Paragraph b-1 of subdivision 4 of section 3602 of the  education
law,  as  amended  by  section 13 of part A of chapter 57 of the laws of
2009, is amended to read as follows:
b-1. Notwithstanding any other provision of law to the  contrary,  for
the  two  thousand  seven--two thousand eight through two thousand thir-
teen--two thousand fourteen school years, the additional amount  payable
to each school district pursuant to this subdivision in the current year
as  total foundation aid, after deducting the total foundation aid base,
shall be deemed a state grant in aid identified by the commissioner  for
general  use  for purposes of [sections] SECTION seventeen hundred eigh-
teen [and two thousand twenty-three] of this chapter.
S 21. Subdivision 11 of  section  3602-e  of  the  education  law,  as
amended  by  section  19 of part B of chapter 57 of the laws of 2007, is
11. Notwithstanding the provisions of subdivision ten of this section,
where the district serves fewer children during the current year than in
the base year, the school district shall have its apportionment  reduced
in  an  amount proportional to such deficiency in the current year or in
the succeeding school year, as determined by  the  commissioner,  except
such  reduction  shall  not  apply  to school districts which have fully
implemented a universal pre-kindergarten program by making such  program
available  to  all  eligible  children. [Expenses incurred by the school
district in implementing a pre-kindergarten  program  plan  pursuant  to
this subdivision shall be deemed ordinary contingent expenses.]
S  22.  Paragraphs  a  and  b  of subdivision 1 of section 3635 of the
education law, paragraph a as amended by chapter 69 of the laws of 1992,
paragraph b as amended by chapter 718 of the laws of 1990  and  subpara-
graph  (i) of paragraph b as amended by chapter 571 of the laws of 1994,
a. Sufficient transportation facilities (including the  operation  and
maintenance  of motor vehicles) shall be provided by the school district
for all the children residing within the school district to and from the
school they legally attend, who  are  in  need  of  such  transportation
because  of  the  remoteness  of  the  school  to  the  child or for the
promotion of the best interest of such children.    Such  transportation
shall be provided for all children attending grades kindergarten through
eight  who  live  more than two miles from the school which they legally
attend and for all children attending grades  nine  through  twelve  who
live more than three miles from the school which they legally attend and
shall be provided for each such child up to a distance of fifteen miles,
the distances in each case being measured by the nearest available route
from  home  to school. The cost of providing such transportation between
two or three miles, as the case may  be,  and  fifteen  miles  shall  be
S. 2706                            24
considered  for  the  purposes  of  this chapter to be a charge upon the
district [and an ordinary contingent expense of the district]. Transpor-
tation for a lesser distance than two miles  in  the  case  of  children
attending  grades  kindergarten through eight or three miles in the case
of children attending grades nine  through  twelve  and  for  a  greater
distance  than  fifteen  miles  may be provided by the district WITH THE
APPROVAL OF THE QUALIFIED VOTERS, and, if  provided,  shall  be  offered
equally  to all children in like circumstances residing in the district;
provided, however, that this requirement shall not apply to  transporta-
tion  offered  pursuant  to  section thirty-six hundred thirty-five-b of
this [article] PART.
b. (i) School districts providing transportation to a nonpublic school
for pupils living within a specified distance  from  such  school  shall
designate  one  or more public schools as centralized pick-up points and
shall provide transportation between  such  points  and  such  nonpublic
schools for students residing in the district who live too far from such
nonpublic schools to qualify for transportation between home and school.
The  district  shall not be responsible for the provision of transporta-
tion for pupils between  their  home  and  such  pick-up  points.    The
district  may  provide school bus transportation to a pupil if the resi-
dence of the pupil is located on an established route for the  transpor-
tation  of  pupils to the centralized pick-up point provided such trans-
portation does not result in additional costs to the district. [The cost
of providing transportation between such pick-up points and such nonpub-
lic schools shall be an ordinary contingent expense.]
(ii) A board of education may, at its discretion, provide  transporta-
tion  for  pupils  residing  within  the  district to a nonpublic school
located more than fifteen miles from the home of any such pupil provided
that such transportation has been  provided  to  such  nonpublic  school
pursuant  to this subdivision in at least one of the immediately preced-
ing three school years and such transportation is provided from  one  or
more  centralized  pick-up  points designated pursuant to this paragraph
and that the distance from such pick-up points to the  nonpublic  school
is  not  more  than fifteen miles. The district shall not be responsible
for the provision of transportation for pupils between [pupils]  PUPILS'
homes  and  such  pick-up  points. [The cost of providing transportation
between such pick-up points and such nonpublic schools shall be an ordi-
nary contingent expense.]
S 23. Subdivision 10 of  section  3635-b  of  the  education  law,  as
amended  by  chapter  422  of  the  laws  of 2004, is amended to read as
10. The cost of providing transportation, pursuant to  the  provisions
of  this section, shall [be an ordinary contingent expense and shall] be
included as an item of expense for purposes of determining the transpor-
tation quota of such district.
S 24. Subdivision 3-a of section 3651 of the education law is REPEALED
and subdivisions 1, 3, 4 and 5, subdivision 1 as amended by chapter  504
of the laws of 1949, subdivisions 3 and 4 as added by chapter 782 of the
laws  of 1948 and subdivision 5 as amended by chapter 976 of the laws of
1963, are amended to read as follows:
1. A reserve fund may be established by the school authorities of  any
school  district,  [provided, however, that no such fund shall be estab-
lished (a) until approved by a majority vote of the qualified voters  of
the  district voting on a proposition therefor submitted at a regular or
special school district meeting, or in school  districts  which  do  not
have  such  meetings,  at  an  election called for such purpose, and (b)
S. 2706                            25
unless the notice of such meeting or election shall have stated  that  a
proposition  to  establish  a  reserve  fund  would be so submitted, the
purpose of the fund, the ultimate amount thereof, its probable term  and
the  source from which the funds would be obtained] AS DEFINED IN SUBDI-
VISION TWELVE OF SECTION TWO OF THIS CHAPTER.  Such reserve fund may  be
established  for  financing, in whole or in part, the cost of any object
or purpose for which bonds may be issued  by,  or  for  the  objects  or
purposes  of, the school district pursuant to the local finance law. The
[proposition] RESOLUTION OF  THE  SCHOOL  AUTHORITIES  ESTABLISHING  THE
RESERVE  FUND  shall  specify  the  purpose for which the fund is estab-
lished, the ultimate amount, the probable term and the source from which
the funds are to be obtained. There shall be paid into any such fund  an
annual  amount sufficient to meet the requirements of the proposition OR
RESOLUTION.  In addition, the [voters] SCHOOL AUTHORITIES may from  time
to time direct the [school authorities to pay] PAYMENT into such fund OF
moneys derived from any other source.
3.  An  expenditure shall be made from a reserve fund only by authori-
zation of the [voters] SCHOOL AUTHORITIES and for the  specific  purpose
specified in the proposition OR RESOLUTION WHICH ESTABLISHED THE RESERVE
4.  The  [voters] SCHOOL AUTHORITIES may authorize the transfer of all
or any part of any reserve fund to any other  reserve  fund  established
5.  Whenever  the [voters] SCHOOL AUTHORITIES shall determine that the
original purpose for which a reserve fund has  been  established  is  no
longer  desirable,  [the school authorities] THEY may liquidate the fund
by first applying its proceeds to any  outstanding  bonded  indebtedness
and  applying  the  balance,  if  any, to the annual tax levy, provided,
however, that the amount so applied in any one year shall not be greater
than the amount which will reduce the tax rate for school purposes below
five mills on actual  valuation;  provided,  however,  that  the  school
authorities  in any school district having no outstanding bonded indebt-
edness may, in any year in which no state aid is payable  thereto  under
the  provisions  of  this  chapter,  liquidate such fund by applying the
balance thereof to the annual tax levy, regardless of the tax  rate  for
school purposes[, subject to the approval of a majority of the qualified
electors of the district voting on a proposition therefor submitted at a
regular or special school district meeting, or in school districts which
do not have such meetings, at an election called for such purpose].
S 25. Paragraphs j and k of subdivision 2 of section 23 of the munici-
pal home rule law are relettered k and l, and a new paragraph j is added
J.  OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
YEAR IN ACCORDANCE WITH SECTION THREE-C OF THE GENERAL MUNICIPAL LAW.
S  26. This act shall take effect immediately and shall first apply to
the levy of taxes by school districts for the 2012-2013 school year  and
to  school district meetings and elections held on and after such effec-
tive date; provided, however,  that  sections  eight,  fifteen,  twenty,
twenty-one  and  twenty-two  of this act shall take effect July 1, 2012;
and provided further, that section one of this act shall first apply  to
the  levy  of taxes by local governments for the fiscal year that begins