Bill > A05643

This bill amends the New York State education law to modify how prior year claims for school districts are paid, specifically addressing the distribution of settlement funds recovered by the attorney general. Currently, state aid payments for prior years are processed with certain restrictions, such as limiting any single claim to no more than 40% of the designated appropriation and allowing partial payments if full funding is unavailable. The new provision requires that any settlement funds obtained by the attorney general's office must first be used to pay money due to school districts for prior years, before any remaining funds are allocated to the general fund. This change ensures that school districts have priority in receiving overdue state aid payments from settlement recovery, providing a more direct mechanism for addressing historical funding shortfalls. The bill takes effect immediately upon enactment, allowing for prompt implementation of the new payment priority rule.

Education

https://www.nysenate.gov/legislation/bills/2025/A5643