Raises the exclusion of certain indebtedness of school districts other than school districts in a city with one hundred twenty-five thousand inhabitants or more

Schools gain more room to borrow

Effective immediately, this law gives eligible New York school districts more borrowing room, not direct household payments. It applies only to districts outside cities with 125,000 or more people, based on the latest federal census. Districts can leave qualifying existing or planned debt out of their debt-limit calculations. This covers bonds and short-term notes issued ahead of bonds, for purposes with useful lives listed in state law. The education department must estimate how much state school-building aid will cover interest and yearly debt payments. Only that covered amount is excluded, and the estimate must identify the debt. Each estimate lasts only until June 30 of the following year. A separate exclusion covers debt to acquire, build, or install shelters or fallout shelters under the state's emergency law. That debt must not exceed $50 times the shelter's planned occupancy when the borrowing occurs or is proposed. District debt statements must list outstanding and proposed bonds and notes, plus debt from merged or annexed districts. Outstanding notes issued ahead of listed bonds are not counted separately. Districts can deduct qualifying debt and must attach a certified education department estimate when required. The statements are filed with the state comptroller and district clerk; the short-term-note filing process is also allowed. The department supplies three certified estimate copies and can set application rules.