New York Education Code § 3604

Conditions under which districts are entitled to apportionment
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§ 3604. Conditions under which districts are entitled to\napportionment.  Apportionment of state funds shall be made subject to\nthe following conditions:\n  4. The apportionments provided for in section thirty-six hundred two\nof this chapter are for the purpose of aiding school districts in paying\nthe salaries of teachers and the cost of school maintenance, and the\nsums so apportioned to such school districts shall be applied for such\npurposes and such sums shall not in any case be placed in the city\ntreasury of any city to the credit of the general fund of such city for\nthe reduction of taxation therein, notwithstanding any provision to the\ncontrary contained in the charter of such city or in any act relating to\nsuch city or in any general, special or local law.\n  5. a. State aid adjustments. All errors or omissions in the\napportionment shall be corrected by the commissioner. Whenever a school\ndistrict has been apportioned less money than that to which it is\nentitled, the commissioner may allot to such district the balance to\nwhich it is entitled. Whenever a school district has been apportioned\nmore money than that to which it is entitled, the commissioner may, by\nan order, direct such moneys to be paid back to the state to be credited\nto the general fund local assistance account for state aid to the\nschools, or may deduct such amount from the next apportionment to be\nmade to said district, provided, however, that, upon notification of\nexcess payments of aid for which a recovery must be made by the state\nthrough deduction of future aid payments, a school district may request\nthat such excess payments be recovered by deducting such excess payments\nfrom the payments due to such school district and payable in the month\nof June in (i) the school year in which such notification was received\nand (ii) the two succeeding school years, provided further that there\nshall be no interest penalty assessed against such district or collected\nby the state. Such request shall be made to the commissioner in such\nform as the commissioner shall prescribe, and shall be based on\ndocumentation that the total amount to be recovered is in excess of one\npercent of the district's total general fund expenditures for the\npreceding school year. The amount to be deducted in the first year shall\nbe the greater of (i) the sum of the amount of such excess payments that\nis recognized as a liability due to other governments by the district\nfor the preceding school year and the positive remainder of the\ndistrict's unreserved fund balance at the close of the preceding school\nyear less the product of the district's total general fund expenditures\nfor the preceding school year multiplied by five percent, or (ii)\none-third of such excess payments. The amount to be recovered in the\nsecond year shall equal the lesser of the remaining amount of such\nexcess payments to be recovered or one-third of such excess payments,\nand the remaining amount of such excess payments shall be recovered in\nthe third year. Provided further that, notwithstanding any other\nprovisions of this subdivision, any pending payment of moneys due to\nsuch district as a prior year adjustment payable pursuant to paragraph c\nof this subdivision for aid claims that had been previously paid as\ncurrent year aid payments in excess of the amount to which the district\nis entitled and for which recovery of excess payments is to be made\npursuant to this paragraph, shall be reduced at the time of actual\npayment by any remaining unrecovered balance of such excess payments,\nand the remaining scheduled deductions of such excess payments pursuant\nto this paragraph shall be reduced by the commissioner to reflect the\namount so recovered. The commissioner shall certify no payment to a\nschool district based on a claim submitted later than three years after\nthe close of the school year in which such payment was first to be made.\nFor claims for which payment is first t

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