Bill > S01636

This bill allows the Salamanca city school district to establish a federal impact aid reserve fund to help stabilize taxes and maintain educational services in case the district experiences a reduction in federal impact aid. The bill provides context that the Salamanca school district receives federal impact aid due to tax-exempt lands within the Allegany Territory of the Seneca Nation of Indians. The reserve fund would have a maximum limit of $5 million and can only be established after receiving approval from a majority vote of district voters at a special or annual district meeting. The school board can contribute to the fund using unassigned fund balances or other reserve funds that are not deemed necessary for their original purposes. The fund will be subject to annual budget approval processes, and any deposits or withdrawals must be transparently disclosed. The bill specifically allows the school board to liquidate the fund and apply its balance to the annual tax levy if the original purpose of the fund is no longer considered desirable. The legislation is designed to provide financial flexibility and protection for the Salamanca city school district in managing potential fluctuations in federal impact aid.

Education

https://www.nysenate.gov/legislation/bills/2025/S1636