NY A05571

Creates unfunded mandate restrictions requiring state funding for any new or expanded program imposed on school districts or municipalities costing more than $10,000 annually per entity or $1 million aggregate, with exceptions for court orders, optional programs, home rule requests, emergency orders, and federal mandates.

Establishes optional state funding system for school districts allowing them to vote to replace local property tax revenue with state aid, phased in over five years starting at 20% of baseline residential property tax levy and increasing to 100%, with cost-of-living adjustments thereafter.

Creates capped school tax rate for seniors age 65+ meeting enhanced exemption requirements, capping their rate at the lower of the rate when they turned 65 or any subsequent lower rate, with 100% state reimbursement to school districts for revenue loss.

Establishes fixed property assessed value for seniors age 65+ with annual income under $100,000, freezing assessed value at the lower of the rate when they turned 65 or any subsequent lower rate, with state reimbursement for tax savings.

Creates blue ribbon commission on property tax reform with 11 members to examine ad valorem tax system, local education financing, governance structures, assessments, spending controls, and alternative revenue sources, with final report due December 1, 2025.

Establishes "state education fund" from lottery revenues to support school districts using optional state funding system and to compensate municipalities and school districts for unfunded mandates.