Permits special education services and programs for preschool children with handicapping conditions to establish reserve funds

This bill allows special education programs serving preschool children with disabilities to create reserve funds from excess revenue. Institutions may retain up to 1% of their annual allowable costs each year (capped at 4% total), with funds carried forward to future years for approved uses like covering prior debts or authorized costs. Programs must report annually on reserve balances and usage to the education department. The policy applies specifically to preschool special education services under New York's education law, effective for the 2025-2026 school year and beyond.