NY S08435

Amends Section 25-b of the 2010 education law relating to contracts for excellence to change how gap elimination adjustment offsets are used by school districts in the 2010-2011 school year.

Requires school districts (excluding those identified in Section 25-a) to apply gap elimination adjustment offset amounts solely to reduce property tax levies for parcels eligible for exemptions under Section 425 of the Real Property Tax Law.

Prohibits school districts from adding offset funds to proposed, enacted, or adopted budgets, depositing them in reserve funds, or retaining them in unreserved fund balance after tax levy.

Removes previous provisions that allowed 50 percent minimum use for property tax reduction and permitted remaining amounts to be used as state grants for maintaining educational programming.

Takes effect immediately upon enactment.