NY A08086

Allows institutions providing special education services for preschool children with handicapping conditions to retain excess funds beginning in the 2023-2024 school year and thereafter.

Limits annual retention to one percent of the institution's total allowable and reimbursable costs, with a maximum accumulated balance of four percent of total costs for the school year.

Retained funds are not recoverable on reconciliation and carry forward as reimbursable costs for calculating future prospective and reconciliation tuition rates.

Permits expenditure of retained funds only with governing board authorization for allowable costs or to pay prior year outstanding debts.

Requires institutions retaining funds to submit annual reports detailing total retained balance, amounts retained and disbursed in prior year, and required financial reports to the department.