A 7674: Permits special education services and programs for preschool children with handicapping conditions to establish reserve funds.

  
  STATE OF NEW YORK ________________________________________________________________________ 7674 2025-2026 Regular Sessions  IN ASSEMBLY April 4, 2025 ___________ Introduced by M. of A. SEAWRIGHT -- read once and referred to the Committee on Education AN ACT to amend the education law, in relation to permitting special education services and programs for preschool children with handicap- ping conditions to establish reserve funds The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 4405 of the education law is amended by adding a 2 new subdivision 7 to read as follows: 3 7. For the two thousand twenty-five--two thousand twenty-six school 4 year and thereafter, an institution subject to this article shall be 5 authorized to retain funds in excess of their allowable and reimbursable 6 costs incurred for services and programs to students appointed. The 7 amount of funds that may be annually retained shall not exceed one 8 percent of the institution's total allowable and reimbursable costs for 9 services and programs provided to students for the school year from 10 which the funds are to be retained, provided that the total accumulated 11 balance that may be retained shall not exceed four percent of such total 12 costs for such school year and provided, further, that such funds shall 13 not be recoverable on reconciliation, such funds shall be carried 14 forward as total reimbursable costs for purposes of calculating subse- 15 quent year prospective and reconciliation tuition rates and such funds 16 shall be separate from and in addition to any other authorization to 17 retain surplus funds on reconciliation. Funds may be expended only 18 pursuant to an authorization of the governing board of the institution 19 for a purpose expressly authorized as part of allowable costs for the 20 year in which the funds are to be expended, provided that funds may be 21 expended to pay prior year outstanding debts. Any institution that 22 retains funds pursuant to this subdivision shall be required to annually 23 report a statement of the total balance of such retained funds, the 24 amount, if any, retained in the prior school year, the amount, if any, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01034-01-5 
 A. 7674 2 1 disbursed in the prior school year, and the financial reports that are 2 required to be annually submitted to the department. 3 § 2. This act shall take effect on the first of July next succeeding 4 the date on which it shall have become a law.