Senate bill · S10382 (2025-26)
Authorizes capital reserve funds for special act school districts
New York State Senate
Summary
Authorizes capital reserve funds for special act school districts; provides that funds retained in this way can only be expended pursuant to an authorization by governing boards of such schools; provides that annual reports must be provided.
Summary from NY Open Legislation. How we handle summaries
Amends the Education Law.
From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 21, 2026. About our data
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Purpose, from the sponsor's memo
Section one amends subdivision five of section 4004 of the education law to authorize the governing boards of special act school districts to establish a capital reserve fund. Section two adds a new paragraph 1 to subdivision four of section 4405 of the education law establishing a capital reserve retention methodol- ogy for special act school districts. Subparagraph (i) authorizes special act school districts to retain a limited portion of surplus reimbursement funds for deposit into a capi- tal reserve fund, subject to annual and aggregate caps. Subparagraphs (ii) and (iii) establish a phased surplus retention schedule beginning in the 2027-2028 school year and gradually reducing allowable retention percentages over time. Subparagraph (iv) limits expenditures of retained funds to authorized educational and capital purposes and establishes annual reporting requirements to the State Education Department. Section three establishes the effective date.
Filed with the bill. Read it on nysenate.gov (opens in a new tab)
Where it stands
Assigned to a committee for review.
- Introduced
- In committee
- Up for a vote
- Passed one chamber
- Passed
- Enacted
Committee
Education · New York State Assembly
Also referred to Education · New York State Senate.
Cosponsors
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Read on NY Senate (opens in a new tab)- Republican1
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The sponsor's argument
Why Shelley Mayer says this is needed
Special act school districts provide highly specialized educational, residential, and therapeutic services to students with disabilities and students with intensive behavioral, mental health, and educational support needs placed pursuant to state law and local district obli- gations. These nine districts operate residential campuses and facili- ties that require ongoing maintenance, repair, and periodic capital improvement. Under current tuition reimbursement methodologies, excess reimbursement funds are generally recovered through the reconciliation process. While special act school districts are authorized to maintain fiscal stabili- zation reserve funds, they have limited ability to retain funds specif- ically for long-term capital and infrastructure needs. As a result, their capacity to plan for major repairs, infrastructure replacement, and deferred maintenance is constrained. This legislation authorizes special act school districts to establish capital reserve funds and retain a limited portion of surplus reimburse- ment funds, subject to strict caps, reporting requirements, and expendi- ture limitations. This limited reserve flexibility for capital purposes will support prudent long-telm planning, facilitate necessary infras- tructure improvements, and strengthen the fiscal stability of programs serving high-need students.
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.
Full history
- May 15, 2026
Referred to committee
REFERRED TO EDUCATION
NY Senate