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Bill

S 10378

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

2025 Regular Session Introduced by Shelley Mayer

Authorizes certain NY institutions serving deaf and blind students to keep limited fiscal reserves beyond current costs, up to 1% annually and 4% cumulatively.

REFERRED TO EDUCATION
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Bill Summary · S 10378

Overview

  • Bill: S 10378 (New York)
  • Session: 2025-2026
  • Committee: Education
  • Sponsor: Sen. Mayer (co-sponsor: Shelley Mayer)
  • Purpose: Authorize fiscal reserve funds for institutions providing instruction to the deaf and blind
  • Effective date: Immediate

Main purpose and intent

The bill authorizes certain authorized institutions under New York education law, which provide instruction to deaf and blind students, to retain and carry forward a limited portion of funds beyond their current allowable and reimbursable costs. The intent appears to be allowing schools to build and maintain a reserve of funds to cover future allowable costs, thereby enabling more stable budgeting and the ability to address outstanding debts or future needs beyond a given school year.

Key provisions and changes

  • New authorization for fiscal reserves:
    • For the 2026–2027 school year and thereafter, institutions may retain funds in excess of their allowable and reimbursable costs for services and programs to students.
  • Limits on retained funds:
    • Annual retention limit: Up to 1% of the institution’s total allowable and reimbursable costs for services and programs provided to students for the current school year.
    • Cumulative cap: The total accumulated balance may not exceed 4% of the same school year’s total costs.
  • Non-recoverability on reconciliation:
    • Retained funds cannot be recovered through reconciliation.
    • They shall be carried forward as part of total reimbursable costs for calculating future year tuition rates (prospective and reconciliation).
    • These funds are separate from and in addition to any existing authorization to retain surplus funds on reconciliation.
  • Authorized uses of retained funds:
    • Funds may be expended only with authorization of the institution’s governing board.
    • Expenditures must be for purposes expressly authorized as part of allowable costs for the year in which they are expended.
    • Funds may be used to pay prior year outstanding debts.
  • Reporting requirements:
    • Institutions that retain funds must annually report:
    • The total balance of retained funds.
    • The amount retained in the prior school year.
    • The amount dispersed in the prior school year.
    • The financial reports required to be submitted to the department.

Who is affected

  • Institutions subject to New York Education Law Article (referred to in the text as “institutions subject to this article” that provide instruction to the deaf and blind).
  • Governing boards of those institutions (since expenditures require board authorization).
  • The New York Department of Education (for annual financial reporting alignment and oversight, as implied by required reports).

Procedural and timeline aspects

  • Effective date: Immediate upon enactment.
  • Applicability: Beginning with the 2026–2027 school year and continuing thereafter.
  • Reporting: Annual financial reporting requirements tied to the reserve fund activity and reconciliation of costs.

Potential impacts and considerations

  • Financial stability: Provides a mechanism for small, specialized institutions to smooth budget volatility and address prior-year debts.
  • Tuition impact: Retained funds are not recoverable via reconciliation but are included in future cost calculations, potentially influencing future tuition rates.
  • Oversight and accountability: Requires annual public reporting to the state education department and board-level approval for expenditures, creating governance and transparency.
  • Administrative burden: Adds reporting and tracking requirements for reserve balances and usage.

If you’d like, I can tailor this summary to a particular audience (e.g., policymakers, school administrators, or the general public) or add a brief comparison to how reserves are handled in other school funding contexts.

Compiled from official sources — confirm details with the bill’s official record.

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