NY S05702

Authorizes institutions providing special education services to preschool children with disabilities to retain surplus funds beginning in the 2025-2026 school year

Limits annual fund retention to 1% of the institution's total allowable and reimbursable costs for services provided that school year

Caps the total accumulated reserve balance at 4% of total costs for the school year

Requires retained funds to be approved by the institution's governing board and spent only on allowable costs, including payment of prior year outstanding debts

Mandates annual reporting to the state education department on total retained fund balance, amounts retained, and amounts disbursed in the prior school year