Authorizes school districts to borrow against certain reserve funds

Latest action Apr 21, 2026

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

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Where it stands

Out of committee and scheduled for a vote by the full chamber.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A8539, the matching bill in the Assembly.

Amends the Local Finance Law.

Committee

Education · New York State Assembly

Also referred to Education · New York State Senate, Local Government · New York State Senate.

Purpose, from the sponsor's memo

The purpose of this bill is to allow a school district to borrow money from certain reserve funds including the workers compensation reserve, unemployment insurance reserve, repair reserve, insurance reserve fund, property loss reserve, and reserve for tax reduction.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Committee vote · Local Government
Senate Local GovernmentApr 21, 2026Result: passed
(7) (0) (0) (0)

Cosponsors

Anthony H. Palumbo, Dean Murray and 5 more on Agora

Democratic4
Republican3

See the full list on nysenate.gov

The sponsor's argument

Why Monica Martinez says this is needed

School districts may need funding for various reasons such as reno- vations or addressing a budget shortfall. When school districts issue a tax anticipation note to receive that funding, it typically involves repayment with interest which is a factor school districts must account for in the amount they choose to borrow. The burden of interest payments can divert funds away from other school priorities and create a finan- cial burden on the school. This bill allows school districts to avoid relying on tax anticipation notes and revenue anticipation notes, and it will temporarily bridge the cash flow gap between the need for funds and the arrival of expected revenues. The bill provides limitations on the amount of money a school district can borrow from a reserve fund as well as requirements for repayment of borrowed funds. This bill eliminates the problems involving interest payments with anticipation notes and creates a more efficient way to financially support school districts.

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

Apr 21, 2026
Reported out of committee
REPORTED AND COMMITTED TO EDUCATION
NY Senate
Apr 13, 2026
Amend and Recommit to Education
AMEND AND RECOMMIT TO EDUCATION
NY Assembly
Apr 2, 2026
Amend and Recommit to Local Government
AMEND AND RECOMMIT TO LOCAL GOVERNMENT
NY Senate
Jan 7, 2026
Referred to committee
REFERRED TO EDUCATION
NY Assembly
Jan 7, 2026
Referred to committee
REFERRED TO LOCAL GOVERNMENT
NY Senate

Show full history (2 earlier events)

May 20, 2025
Referred to committee
REFERRED TO EDUCATION
NY Assembly
Apr 21, 2025
Referred to committee
REFERRED TO LOCAL GOVERNMENT
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 3, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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