Bill > S07524

This bill authorizes school districts to borrow from certain reserve funds as a way to reduce reliance on tax and revenue anticipation notes. Under the proposed law, school districts can borrow up to 75% of the total amount in specific reserve funds, including workers' compensation, unemployment insurance, repair, insurance, property loss, employee benefit accrued liability, and tax reduction reserve funds. The school district's board of education must pass a resolution detailing the amount to be borrowed, the specific reserve fund source, anticipated tax or revenue streams, and a repayment schedule. Borrowing is limited to taxes and revenues expected in the same fiscal year, with a special provision allowing borrowing during the final two weeks of a fiscal year in anticipation of funds to be received in the next fiscal year. The resolution must include a specific final repayment date, though districts can choose to repay ahead of schedule. The bill also makes a technical correction to the language in the general municipal law, changing "Workmen's" to "Workers'" compensation reserve fund. The act will take effect on the first of July following its passage into law.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S7524