Bill > A08539

This bill authorizes school districts to temporarily borrow money from specific reserve funds to help manage their short-term cash flow and reduce reliance on tax and revenue anticipation notes. Under the proposed law, school districts can borrow up to 75% of the total amount in certain designated reserve funds, including workers' compensation, unemployment insurance, repair, insurance, property loss, employee benefit accrued liability, and tax reduction reserve funds. When borrowing, the school district's board of education must pass a resolution that details the amount being borrowed, the specific reserve fund source, the anticipated taxes or revenue, and a repayment schedule with a specific final repayment date. The borrowing is restricted to taxes and revenues expected in the same fiscal year, with a limited exception allowing borrowing in the final two weeks of a fiscal year for anticipated revenues in the following year. Borrowers must fully repay the funds within the same fiscal year, ensuring these are truly short-term loans designed to bridge temporary cash flow gaps. The bill also makes a minor technical correction by updating the terminology from "workmen's" to "workers'" compensation reserve fund. The law would take effect on the first of July following its enactment.

Education

https://www.nysenate.gov/legislation/bills/2025/A8539