New York Assembly Bill A08606

New York 2025-2026 Regular Session

• Introduced: 5/22/25
• Refer: 5/22/25
• Report Pass: 6/16/25
• Refer: 6/16/25

Caption

Relates to calculation of interests costs for certain bonds issued to finance school rehabilitation or reconstruction costs for Rochester schools.

Summary

This bill amends New York education law and the Rochester school facilities modernization program act to change how certain interest costs are calculated for bonds and bond anticipation notes used to finance school rehabilitation or reconstruction projects in the city of Rochester. The measure focuses on projects financed through the Monroe County Industrial Development Agency or the Dormitory Authority of the State of New York, and it updates the formula used to determine the interest rate applied for state aid apportionment purposes. The bill also adds a new rule governing refunding bonds for Rochester school projects. If refunding bonds are issued for a project funded under the Rochester modernization program, any refunding savings must be used only for projects that are eligible for apportionment under the education law provision referenced in the bill. The act takes effect immediately.

Impact

The bill narrows and clarifies the statutory method used to calculate assumed interest costs for Rochester school construction financing, which can affect the amount and timing of state aid tied to those projects. It also limits the use of savings from refunding bonds to eligible school projects, thereby directing those funds back into qualifying rehabilitation or reconstruction work rather than other uses. The practical effect is on the city of Rochester, its school district, the Monroe County Industrial Development Agency, the Dormitory Authority, and state education finance administration.

Sentiment

The available voting history shows strong support for the bill, with unanimous favorable votes in the Assembly Ways and Means Committee and the Assembly Rules Committee. No committee transcript is available, but the lack of recorded opposition and the unanimous committee votes suggest the bill was viewed as a technical, locally targeted financing adjustment rather than a controversial policy change.

Contention

No explicit points of contention appear in the provided materials. The bill’s main technical issues are the revised interest-rate calculation method and the restriction on how refunding savings may be used. Any concern would likely center on whether the new formula changes the amount of state aid or constrains local flexibility in managing bond proceeds, but no opposition is reflected in the available record.