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Senate education panel advances bill to speed prior-year state aid payments to schools
Summary
The Senate Education Committee advanced S.8845A on March 17, a bill that would require prior-year state aid adjustments owed to school districts to be included in the first aid payment of the subsequent school year; members pressed education officials for backlog figures, which were described as "over $300 million" but not specified for New York City.
The New York State Senate Education Committee on March 17 advanced S.8845A, a bill that would require any state aid owed to school districts from prior-year adjustments to be included in the first state aid payment of the subsequent school year rather than paid later under a queued schedule.
"What this would do ... it would require that any aid owed to a school just from prior year adjustment be passed the first aid payment of that school year," Senator Martinez said, explaining the bill's purpose as a remedy for districts that face cash-flow disruption when funds are paid on a delayed schedule.
The sponsor said school districts frequently receive prior-year adjustments and then wait for the state to clear a backlog before receiving funds, a process she described as placing districts in a queue that can delay payments substantially. Senator Martinez said the change is meant to address that imbalance.
Senator Harry Jackson pressed for the statewide and New York City-specific financial impact: "Does it impact all of the school districts? And if so, I want to know how much is New York City getting in there." An Agency official from the State Education Department responded that the outstanding backlog was "over $300 million" and said they would "follow up offline" with district- and city-level breakdowns. The official did not provide a precise New York City figure during the hearing.
Committee members noted some payments date back several years, with officials saying prior-year adjustments in the queue extend as far back as 2012 for some claims. The official and members characterized the situation as generally not fault-based, often resulting from enrollment or estimate changes rather than intentional error.
After questions and discussion, Senator Cleary moved the bill, it was seconded, and the committee advanced S.8845A to the Finance Committee by voice vote.
The committee recorded no roll-call vote during the meeting; members approved the measure on a voice vote and referred it to Finance. Agency officials committed to provide a more detailed accounting of the backlog and district-specific figures outside the hearing.
