Bill > S05702

This bill amends the New York education law to allow special education institutions serving preschool children with handicapping conditions to establish reserve funds starting in the 2025-2026 school year. Specifically, these institutions can retain funds up to one percent of their total allowable and reimbursable costs for student services in a given school year, with a maximum accumulated balance of four percent. These retained funds cannot be recovered during reconciliation and will be carried forward as reimbursable costs for calculating future tuition rates. The funds can only be spent with governing board authorization for purposes expressly allowed as costs, including paying prior year outstanding debts. Institutions choosing to retain such funds must annually report details about the retained funds, including the total balance, amounts retained and disbursed in the prior school year, and submit required financial reports to the department. The bill will take effect on the first day of July following its enactment, providing a clear mechanism for special education programs to build modest financial reserves for future needs.

Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/S5702