NY S08340

Amends Education Law Section 4405 to include special act school districts and programs approved under Section 4410 that are subject to tuition rate reconciliation in the tuition methodology for the 2021-2022 school year and annually thereafter.

Authorizes approved private residential or non-residential schools, special act school districts, and approved programs to retain funds exceeding allowable and reimbursable costs for services provided to school-age and preschool students.

Limits annual retention to one percent of total allowable and reimbursable costs, with a maximum accumulated balance not to exceed four percent of such costs for the school year.

Requires retained funds to be expended only for purposes authorized in the approved tuition methodology or to pay prior year outstanding debts, and prohibits recovery of retained funds on tuition rate reconciliation.

Mandates annual reporting to the Department of the total balance of retained funds, amounts retained and dispersed in prior years, and any additional information requested by the Department.