NY A07674

Authorizes institutions providing special education services for preschool children with disabilities to retain surplus funds beyond their allowable and reimbursable costs starting in the 2025-2026 school year

Limits annual fund retention to 1% of the institution's total allowable and reimbursable costs, with a maximum accumulated balance cap of 4% of total costs

Retained funds are protected from recovery during reconciliation and will be carried forward as reimbursable costs for calculating future tuition rates

Requires governing board authorization for expenditure of retained funds, which must be used for allowable cost purposes or to pay prior year outstanding debts

Mandates annual reporting to the department detailing total retained fund balance, amounts retained in the prior year, amounts disbursed, and required financial reports