NY S08623

Authorizes boards of education in special act school districts to establish fiscal stabilization reserve funds.

Allows approved private residential and non-residential schools for students with disabilities and special act school districts to retain excess funds beyond allowable and reimbursable costs, effective for the 2019-2020 school year and annually thereafter.

Limits annual retained funds to a maximum of 1 percent of the school's or district's total allowable and reimbursable costs, with a cumulative cap of 4 percent.

Requires retained funds to be expended only with governing board authorization and for purposes approved in the tuition methodology by the director of the budget in consultation with the commissioner.

Mandates annual reporting to the department of education on retained fund balances, amounts retained and disbursed in the prior year, and other requested financial information.