Permits the Vestal Central School District to create an insurance reserve fund

2025 Regular Session

Allows Vestal Central School District to create an insurance reserve fund to pay insured-risk losses or claims, expanding risk financing while excluding funds for risks covered by

REFERRED TO LOCAL GOVERNMENT

Summary of Bill A. 11296 (2025-2026, New York)

Purpose and intent

Allows Vestal Central School District to establish and use an insurance reserve fund.

Aligns Vestal with other New York school districts authorized to create such funds, expanding the district’s tools to manage insurance-related costs and risk.

Key provisions and changes

Amends general municipal law, specifically paragraph (a) of subdivision 2 of section 6-n, as previously amended in 2024.

Establishes that a municipal corporation (in this context, a school district) governing board may create an “insurance reserve fund.”

Permits expenditures from the insurance reserve fund to cover losses, claims, actions, or judgments for which the district is authorized or required to purchase or maintain insurance.

This authority excludes certain risks for which specific insurance provisions exist under the Insurance Law (as listed in the bill).

Important funding and use restrictions:

Expenditures from the fund must be limited to insured-risk-related losses or claims.
A district may not use the fund for losses/claims that are already covered by another established reserve fund under different legal authorities.

Explicitly lists Vestal Central School District among a defined group of districts that may establish and use such an insurance reserve fund under the amended law.

The provision references compliance with both the insurance law and Education Law Article 74 (which governs school district internal procedures and related safeguards for such funds).

Affected entities

Primary: Vestal Central School District (New York).

Also reflects alignment with other listed districts that already have authority to establish insurance reserve funds (e.g., Scarsdale UFSD, Ithaca City SD, Kenmore-Town of Tonawanda UFSD, etc.) as a comparative framework.

By enabling an insurance reserve fund, the district’s financial management for risk and insurance-related expenditures is broadened.

Procedural and timeline aspects

Enactment: The bill amends existing law and would take effect immediately upon enactment.

Legislative path: Introduced by the Rules Committee at the request of Assembly Member Lupardo; referred to Education, with subsequent reporting to Ways and Means if advanced.

Practical impact and considerations

Financial management: Vestal would gain a dedicated source of funds to pay for uninsured or deductible costs related to insured risks, potentially improving cash flow stability and risk financing flexibility.

Risk management: Enables more proactive funding for insurance-related losses or judgments, subject to the constraints of insurance law and Education Law Article 74.

Compliance: District must ensure expenditures align with the permitted uses, avoid duplicative reserves, and maintain oversight and reporting as required by Education Law.

Fiscal note considerations (not provided in the text but generally relevant): Potential impact on district reserves, premium planning, and annual budgeting for risk management.

If you’d like, I can compare this bill’s language to the current law or provide a brief FAQ for school district officials and school boards.