Meeting of the Board of Regents | July 2007

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

 

TO:
FROM:	Johanna Duncan-Poitier
SUBJECT:	Emergency Adoption of the Proposed Amendment to the Regulations of the Commissioner Relating to Maintenance of Effort in Certain Cities
DATE:	July 11, 2007
STRATEGIC GOAL:	Goals 1 and 2
AUTHORIZATION(S):

 

SUMMARY

 

Issue for Action

 

Should the Board of Regents adopt as an emergency measure the proposed addition of section 170.13 to the Regulations of the Commissioner relating to maintenance of effort in certain cities?

 

Reason(s) for Consideration

 

Required by State statute.

 

Proposed Handling

 

This question will come before the Regents EMSC-VESID Committee at its July meeting.

 

Procedural History

 

Not applicable.

 

Background Information

 

              Education Law section 2576(5-b), as added by the 2007-08 State Budget (section 9 of Part B of Chapter 57 of the Laws of 2007), requires each school district in cities having a population of one hundred twenty-five thousand or more inhabitants and less than one million inhabitants to maintain their fiscal effort in support of education.  The statute requires the Commissioner to establish by regulation the definition of state and private sources over which the city has no discretion and which are to be excluded from the calculation of city funds subject to the maintenance of effort requirement, thus ensuring that the requirement pertains only to funds over which the cities have control.

             

              Enactment of this emergency regulation now still permits consideration of additional input and comments from the field.  There will be a 45-day public comment period on the proposed amendment following action by the Board of Regents adopting the proposed amendment on an emergency basis.  Such comment may warrant additional amendments to the regulatory language prior to confirmation as a permanent rule.  However, it is critical that school districts receive the information now through the proposed amendment in order to adjust their accounting systems in order to be able to comply with the law for the 2007-08 school year. 

 

              The proposed amendment is being presented for adoption as an emergency action.  A Statement of Facts and Circumstances Which Necessitate Emergency Action is attached.  A Notice of Proposed Rule Making will be published in the State Register on August 8, 2007.

 

Recommendation

 

Staff recommend that the Regents take the following action:

 

VOTED:  That section 170.13 of the Regulations of the Commissioner be added as submitted, effective July 31, 2007, as an emergency action upon a finding by the Board of Regents that such action is necessary for the preservation of the general welfare in order to immediately establish a definition of "city funds" for purposes of determining the fiscal maintenance of effort requirement in Education Law section 2576(5-b), including state and private funding sources over which the city has no discretion and which are to be excluded from the calculation of city funds subject to the maintenance of effort requirement, so that school districts subject to such requirement may timely align their budgets to comply with the statute's requirements for the 2007-2008 school year.

 

Timetable for Implementation

 

The emergency rule will become effective July 31, 2007 and will be submitted to the Board of Regents for confirmation as a permanent rule in October.

 

 

 

 

 

 

 

 

 

 

 

PROPOSED ADDITION OF SECTION 170.13 OF THE REGULATIONS OF THE COMMISSIONER OF EDUCATION PURSUANT TO EDUCATION LAW SECTIONS 101, 207, 305, 2576(5-b) AND CHAPTER 57 OF THE LAWS OF 2007, RELATING TO MAINTENANCE OF EFFORT IN CERTAIN CITIES

STATEMENT OF FACTS AND CIRCUMSTANCES WHICH NECESSITATE EMERGENCY ADOPTION

              The proposed amendment is necessary to implement Education Law section 2576(5-b), as added by Chapter 57 of the Laws of 2007, to require maintenance of local effort by certain specified school districts. 

              Education Law section 2576(5-b) requires each school district in cities having a population of one hundred twenty-five thousand or more inhabitants and less than one million inhabitants to maintain their fiscal effort in support of education.  The statute requires the Commissioner to establish by regulation the definition of state and private sources over which the city has no discretion and which are to be excluded from the calculation of city funds subject to the maintenance of effort requirement, thus ensuring that the requirement pertains only to funds over which the cities have control.

              State Administrative Procedure Act (SAPA) section 202 generally provides that a rule may not be adopted until at least 45 days after publication of a Notice of Proposed Rule Making in the State Register.  Because the Board of Regents meets at fixed intervals, the earliest the proposed rule could be presented for adoption by the Board of Regents, after expiration of the 45-day public comment period prescribed by SAPA , is the October 22-23, 2007 Regents meeting.  Pursuant to SAPA, the earliest effective date of the proposed amendment, if adopted at the October meeting, would be November 15, 2007, the date a Notice of Adoption would be published in the State Register.  However, affected school districts need to know now the definition of "city funds" necessary to implement Education Law section 2576(5-b), so that they may timely align their 2007-2008 school year budgets with the provisions of the statute. 

              Emergency action to adopt the proposed rule is necessary for the preservation of the general welfare in order to immediately establish a definition of "city funds" for purposes of determining the fiscal maintenance of effort requirement in Education Law section 2576(5-b), including state and private funding sources over which the city has no discretion and which are to be excluded from the calculation of city funds subject to the maintenance of effort requirement, so that school districts subject to such requirement may timely align their budgets to comply with the statute's requirements for the 2007-2008 school year.

              It is anticipated that the proposed rule will be presented for adoption as a permanent rule at the October 22-23, 2007 meeting of the Board of Regents, which is the first scheduled Regents meeting after expiration of the 45-day public comment period prescribed by the State Administrative Procedure Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMENDMENT OF THE REGULATIONS OF THE COMMISSIONER OF EDUCATION

              Pursuant to Education Law sections 101, 207, 305, 2576(5-b) and Chapter 57 of the Laws of 2007

              Section 170.13 of the Regulations of the Commissioner of Education is added, effective July 31, 2007, as follows:

§170.13  Definition of  "city funds" for purposes of determining maintenance of effort for cities having a population of one hundred twenty-five thousand or more inhabitants and less than one million inhabitants pursuant to Education Law section 2576(5-b).

              For purposes of this section and Education Law section 2576(5-b), "city funds" shall mean funds of each city having a population of one hundred twenty-five thousand or more inhabitants and less than one million inhabitants derived from any source except:

              (a)  funds contained within the capital budget;

              (b)  funds from county sales tax revenues shared with such city;

              (c)  funds derived from any federal source; and

              (d)  funds derived from any state or private sources over which the city has no discretion, including:

              (1)  gifts for specific purposes;

              (2)  grants in aid for specific purposes; or

              (3)  insurance proceeds authorized pursuant to Education Law section 1718(2) in addition to that which has been previously budgeted.