DONNA A. LUPARDOMember of Assembly123
THE ASSEMBLYSTATE OF NEW YORK ALBANY
CHAIRCommittee on Children and FamiliesCOMMITTEESEconomic DevelopmentEnvironmental ConservationHigher EducationTransportationVeterans’ Affairs
Thomas P. DiNapoli, NYS ComptrollerOffice of the New York State Comptroller110 State StreetAlbany, NY 12236February 13, 2013Dear Comptroller DiNapoli,I recently met with a number of local school officials in my district regardingtheir concerns over potential fiscal and educational insolvency. While theseconcerns have been mounting over the years, the level of stress and anxiety I amwitnessing is truly unprecedented. Between the combined wealth ratio with itsartificial floor and ceiling, the gap elimination adjustment, and the property taxcap, many are wondering how they will be able to preserve the quality ofeducation in their schools.Last year, I became aware that New York State has no provision in statute toallow school districts to declare bankruptcy. My understanding is that we arenow using the language of insolvency to describe these dire conditions. I amhoping you can provide some clarification as to what that would mean for aschool district.What would happen exactly if a school district declared themselves to beinsolvent? What are the immediate practical implications? What state servicesmight be available to help them?
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