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A 10973

Authorizes the Goshen central school district to establish an insurance reserve fund

2025 Regular Session Introduced by Brian Maher

Goshen Central School District may establish an Insurance Reserve Fund to cover insured losses, improving risk funding without using non-insurance reserves.

REFERRED TO EDUCATION
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Bill Summary · A 10973

Bill Summary — New York A.10973 (2025-2026 Session)

Basic information

  • Title: Authorizes the Goshen Central School District to establish an insurance reserve fund
  • Jurisdiction: New York
  • Type: Assembly bill
  • Introduced by: Assembly Member Maher
  • Sponsor: Co-sponsor Brian Maher
  • Committee: Education
  • Introduced: April 14, 2026
  • Effective date: Immediate upon enactment

Purpose and intent

The bill authorizes the Goshen Central School District (CSSD) to establish and operate an insurance reserve fund (IRF) as permitted for certain municipalities and school districts under the General Municipal Law. The primary purpose is to allow Goshen CSD to set aside funds specifically to cover losses, claims, actions, or judgments for which the district is required or authorized to maintain insurance, thereby improving risk management and financial resilience.

Key provisions and changes

  • Authority to establish an IRF: The bill amends General Municipal Law, enabling Goshen CSD to create an insurance reserve fund in compliance with the referenced statute and Education Law Article 74.
  • Scope of expenditures from the IRF: Money in the IRF may be expended to pay for losses, claims, actions, or judgments for which the district is required or authorized to purchase or maintain insurance.
  • Limitations on expenditures:
    • Expenditures from the IRF are restricted to risks for which insurance would be purchased or maintained under the identified provisions of the Insurance Law (specifically related to certain risk categories listed in the bill).
    • The district cannot use the IRF to fund losses that are already covered by other reserve funds established under different provisions of law.
  • Eligible districts (as antecedent precedence): The language in the bill lists a number of other districts that already have IRFs or similar arrangements and explicitly includes Goshen CSD among those eligible to establish and use an IRF. The enumerated districts provide context for where this authority has previously applied and is now extending to Goshen.
  • Compliance framework: Districts operating IRFs must comply with the general provisions of General Municipal Law and Education Law Article 74.

Who is affected

  • Goshen Central School District: The primary district affected; gains the new authority to establish and use an Insurance Reserve Fund for insured risks described above.
  • Other districts (contextual): Several other New York districts are listed to indicate the subset of districts that have similar authority or past practice; this provides a model for Goshen’s implementation.
  • Taxpayers and stakeholders: Potentially impacted by changes in how insurance-related risk is funded and how reserves are built and drawn upon, with long-term effects on district budgeting, cash flow, and liability management.

Procedural and timeline aspects

  • Effective date: Immediate upon enactment (the bill states “This act shall take effect immediately.”)
  • Process: The bill follows the standard legislative path for a law to authorize a municipal school district to create an IRF, contingent on passage by the Legislature and approval by the Governor (not specified in text but standard for NY laws).

Practical implications

  • The IRF could improve Goshen CSD’s ability to fund insurance-related losses without abrupt budget shocks.
  • It aligns Goshen with a set of other school districts that have similar reserves, suggesting established governance, reporting, and funding practices to be followed under General Municipal Law and Education Law Article 74.
  • The bill narrows permissible uses to insured-risk categories and avoids overlap with existing reserve funds.

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

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