New York Senate Bill S08218

New York 2025-2026 Regular Session

• Introduced: 5/22/25
• Refer: 5/22/25
• Engrossed: 6/12/25
• Refer: 6/12/25
• Engrossed: 6/16/25
• Enrolled: 11/17/25
• Chaptered: 11/21/25
• Passed: 11/21/25

Caption

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

Summary

S08218 amends New York education law and the Rochester school facilities modernization program act to change how interest costs are calculated for certain bonds and bond anticipation notes used to finance school rehabilitation or reconstruction projects in the City of Rochester school district. The bill updates the formula so that, for projects financed through the Monroe County Industrial Development Agency or the Dormitory Authority of the State of New York, the applicable interest rate is tied to the original obligations issued for each approved phase of project costs, and it expressly disregards any refunding of those obligations when making the calculation. The bill also adds a new rule for refunding savings: if refunding bonds are issued for a project funded under the Rochester modernization program, the savings from that refunding must be used only for projects that are eligible for state aid apportionment under the education law. In practical terms, the measure is aimed at refining how Rochester school construction debt is treated for state aid and ensuring that any savings from refinancing remain dedicated to qualifying school capital work.

Impact

This legislation affects section 3602 of the Education Law and chapter 416 of the laws of 2007, which governs the Rochester school facilities modernization program. It changes the method used by the commissioner of education to determine the interest rate and assumed amortization for certain Rochester school capital projects, which can affect the amount and timing of state aid apportionments tied to those projects. It also restricts the use of refunding savings to eligible school projects, limiting local discretion over those funds and reinforcing their use for capital purposes that qualify for state reimbursement.

Sentiment

The bill appears to have been broadly supported. It passed the Senate 58-1 and the Assembly 144-0, with unanimous approval in the Senate Rules Committee. The strong bipartisan vote totals suggest general agreement that the measure is a technical or administrative adjustment to improve the financing framework for Rochester school rehabilitation and reconstruction projects rather than a controversial policy change.

Contention

There is little evidence of major controversy in the available record, and no committee transcript is provided. The only visible point of potential concern is the bill’s narrowing of how interest costs are calculated and how refunding savings may be used, which could matter to Rochester officials, the Monroe County Industrial Development Agency, the Dormitory Authority, and school finance administrators. Any disagreement would likely center on the fiscal effects of the revised calculation method and the new restriction on refunding savings, but the recorded votes indicate that such concerns did not generate significant opposition.