Bill to Allow Schools to Access Reserve Funds

New York State Assemblywoman Ginny Fields introduced key legislation that would allow school districts to access excess reserve funds.  

According to New York State Comptroller Thomas DiNapoli, schools from around the state have amassed $615 million in excess funds.

Assemblywoman Fields' legislation authorizes districts to access the Employee Benefit Accrued Liability Reserve (EBALR) funds, according to a statement from her staff.  

The Employee Benefit Accrued Liability Reserve fund is used to pay teachers and staff for unused leave time, such as sick and vacation days, when they leave the district. The current law states it can only be used for this purpose. Fields' legislation would allow school districts to give taxpayers much-needed relief by transferring excess reserve funds to their general fund.   

DiNapoli endorses Fields' bill, as it places control of school districts' money in the hands of the school district and not tied up based on audits or certification by the Comptroller's office or any other government entity.

School district board of education members can choose to transfer the funds to the district's general fund and the fiscal and legal officers of the districts are the ones who determine the amount that can be transferred.

"With a state deficit of over $9 billion that threatens to cut school aid and property taxes that are pushing people out of the state, school districts should be able to use whatever excess funds they have," Fields said in a statement. " It is their money to be used for an emergency and this is an emergency." 

Last week, Bruce Singer, Sachem's Assistant Superintendent for business, said, "Any legislation which would assist school districts with cash management would certainly be beneficial."

He added that as the district is, "entering very uncertain fiscal times, with unknown State aid, it is extremely difficult to budget for any level of expenditures due to unknown revenues and to maintain proper cash balances.We appreciate all efforts by our legislators to assist school districts."