Bill > A05591

This bill authorizes the Salamanca city school district to establish a federal impact aid reserve fund to help stabilize tax levies if federal impact aid is reduced. The bill specifically addresses the unique situation of the Salamanca school district, which 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 allowable balance 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 board of education can contribute to the fund using unassigned fund balances or other reserve funds that are not deemed necessary for their original purposes. Withdrawals and deposits will be subject to the district's annual budget approval process, and the fund must be managed according to existing education law provisions regarding financial management. The purpose of this fund is to provide financial stability and maintain educational programming in the event of a reduction or loss of federal impact aid, ensuring that the school district can continue to provide consistent services to students.

Education

https://www.nysenate.gov/legislation/bills/2025/A5591