NY A05591

Authorizes the Salamanca City School District board of education to establish a federal impact aid reserve fund with a maximum balance of $5,000,000 to stabilize taxes if federal impact aid is reduced or eliminated

Requires voter approval through a separate ballot proposition at either a special district meeting or the annual district meeting and election before the fund can be established

Allows the board to fund the reserve using unassigned fund balances that accrued before the fund's establishment and from other reserve funds deemed no longer reasonably necessary

Permits the board to liquidate the fund by applying its balance to the annual tax levy without voter authorization if the original purpose is no longer desirable

Addresses the unique situation where the Allegany Territory of the Seneca Nation of Indians, located within the district, is tax-exempt, making the district dependent on federal impact aid for student services