New York S 7524: Authorizes school districts to borrow against certain reserve funds

Bill Text

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S07524 Summary:

BILL NOS07524A

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SAME ASSAME AS A08539-A

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SPONSORMARTINEZ

&nbsp

COSPNSRMURRAY, PALUMBO, RHOADS

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MLTSPNSR

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Add §25.11, Loc Fin L; amd §6-j, Gen Muni L

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Authorizes school districts to borrow against certain reserve funds, pursuant to a resolution adopted by the board of education of such school district.

Go to top S07524 Actions:

BILL NOS07524A

&nbsp

04/21/2025REFERRED TO LOCAL GOVERNMENT

01/07/2026REFERRED TO LOCAL GOVERNMENT

04/02/2026AMEND AND RECOMMIT TO LOCAL GOVERNMENT

04/02/2026PRINT NUMBER 7524A

04/21/2026REPORTED AND COMMITTED TO EDUCATION

Go to topS07524 Committee&nbspVotes:

Go to topS07524 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS07524 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7524--A

 2025-2026 Regular Sessions

 IN SENATE

 April 21, 2025
 ___________

 Introduced by Sens. MARTINEZ, MURRAY -- read twice and ordered printed,
 and when printed to be committed to the Committee on Local Government
 -- recommitted to the Committee on Local Government in accordance with
 Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered
 reprinted as amended and recommitted to said committee

 AN ACT to amend the local finance law, in relation to authorizing school
 districts to borrow against certain reserve funds; and to amend the
 general municipal law, in relation to making a technical correction
 thereto

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The local finance law is amended by adding a new section
 2 25.11 to read as follows:
 3 § 25.11 Borrowing from reserve funds. a. 1. Pursuant to a resolution
 4 adopted by the board of education of any school district, such school
 5 district may borrow from certain reserve funds to reduce reliance on tax
 6 anticipation notes and revenue anticipation notes.
 7 2. Such resolution shall include the following information:
 8 (a) the amount to be borrowed;
 9 (b) the reserve from which the school district intends to borrow;
 10 (c) the amount and source of taxes or other revenue anticipated to be
 11 received; and
 12 (d) the timeframe in which such taxes or other revenue is anticipated
 13 to be received and the schedule upon which repayment shall be made,
 14 including a specific date for final repayment; provided, however, that
 15 nothing shall prohibit a school district from paying ahead of such sche-
 16 dule.
 17 3. School districts shall not borrow in excess of seventy-five percent
 18 of the total of each reserve fund.
 19 b. 1. Borrowing from reserve funds shall be limited to taxes and
 20 revenue anticipated to be received in the same fiscal year in which such

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD11685-02-6

 S. 7524--A 2

 1 borrowing takes place; provided, however, that during the final two
 2 weeks of a given fiscal year, such borrowing may be initiated by a
 3 school district in anticipation of moneys to be received in the follow-
 4 ing fiscal year.
 5 2. Final repayment shall be scheduled within the same fiscal year in
 6 which the borrowing takes place; provided, however, that if such borrow-
 7 ing was initiated in the final two weeks of the prior fiscal year in
 8 anticipation of moneys to be received in the current fiscal year pursu-
 9 ant to subdivision one of this paragraph, such final repayment may be
 10 scheduled within the fiscal year during which such anticipated moneys
 11 are received.
 12 c. The following reserve funds may be borrowed from pursuant to para-
 13 graph a of this section:
 14 1. Workers' compensation reserve fund, as authorized by section six-j
 15 of the general municipal law;
 16 2. Unemployment insurance payment reserve fund, as authorized by
 17 section six-m of the general municipal law;
 18 3. Repair reserve fund, as authorized by section six-d of the general
 19 municipal law;
 20 4. Insurance reserve fund, as authorized by section six-n of the
 21 general municipal law;
 22 5. Property loss reserve fund, as authorized by section seventeen
 23 hundred nine of the education law; and
 24 6. Tax reduction reserve fund, as authorized by sect