Provides that for the two thousand twenty-six--two thousand twenty-seven school year, the two thousand twenty-seven--two thousand twenty-eight school year, and the two thousand twenty-eight--two thousand twenty-nine school year, surplus funds as used in this subdivision shall mean any operating funds in excess of five percent of the current school year budget, and shall not include funds properly retained under other sections of law.

New York Assembly Bill A00351, introduced in January 2025, proposed increasing the allowable surplus funds that school districts can retain from 4% to 5% of their annual budgets for the 2026-2027, 2027-2028, and 2028-2029 school years. This change aimed to provide districts with greater financial flexibility to manage unexpected expenses or revenue shortfalls. The bill was referred to the Assembly Real Property Taxation Committee but did not advance further and died in committee in January 2026.

Positive media analysis is being generated.

Although direct media critiques of Bill A00351 are not found, opponents of increasing surplus fund limits in school budgets often contend that it may lead to inefficient use of taxpayer money, as it could reduce the incentive for districts to allocate funds effectively and may result in unnecessary accumulation of reserves.