Authorizes fiscal reserve funds for institutions providing instruction to the deaf and blind

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Republican1

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why Shelley Mayer says this is needed

Institutions operating under article 85 of the education law serve students who are blind, visually impaired, deaf, hard of hearing, and students with disabilities requiring intensive education and related support services. They provide specialized educational programming pursuant to the tuition reimbursement methodologies established by the State Education Department. Under the current framework, amounts received in excess of allowable and reimbursable costs are subject to recovery through the reconciliation process. These schools have limited ability to accumulate operating reserves or address non-recurring fiscal pressure. As a result, 4201 schools frequently lack sufficient financial flexibility to manage cash- flow variability, unanticipated expenditures, emergency facility repairs, and other allowable program expenses that may arise outside of the prospective tuition rate-setting cycle. This legislation establishes a narrowly circumscribed authorization permitting these schools to retain a limited portion of surplus reimbursement funds. The bill limits annual retention to no more than one percent of total allowable and reimbursable costs and caps aggregate retained balances at four percent of such costs. It also requires that retained funds remain restricted to allowable program purposes, be sepa- rately accounted for, and be subject to annual reporting to the State Education Department.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.