ITHACA, N.Y. (WENY) -- Assemblywoman Barbara Lifton announced that a bill she sponsored that would allow the Ithaca City School District to create an insurance reserve fund to help manage healthcare costs has been signed into law by Governor Cuomo.

Two years ago, the Ithaca City School District elected to self-insure its employees. It was a way to cut down on healthcare costs and save taxpayers money, according to a press release.

Current law prohibits school districts from keeping more than 4 percent of their budget in unappropriated funds, so the insurance reserve fund created by bill A505 will allow the school district to meet its duties of self-insurance.

"At a time when school districts across the state are struggling with the burden of rising healthcare costs. this bill will give the school district a useful tool to manage costs more effectively, helping local taxpayers."