|SAME AS||No Same As|
|Amd S97-rrr, St Fin L|
|Provides that at the close of each fiscal year, five percent of any cash surplus in the general fund shall be transferred to the debt reduction reserve fund.|
|02/23/2015||referred to ways and means|
|01/06/2016||referred to ways and means|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5430 SPONSOR: Giglio (MS)
TITLE OF BILL: An act to amend the state finance law, in relation to the debt reduction reserve fund   PURPOSE OR GENERAL IDEA OF BILL: Provides that at the close of each fiscal year, five percent of any cash surplus in the general fund shall be transferred to the debt reduction reserve fund.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends Section 97-rrr of the state finance law, as amended by section 45 of part H of chapter 56 of the laws of 2000 and reads that at the close of each fiscal year a portion, five percent, of any cash surplus remaining in the general fund after the transfer pursuant to section ninety-two of this article shall be transferred from or retained in such fund as provided in this subdivision. A cash surplus shall be defined as the amount by which general fund receipts in a fiscal year exceed general fund expenditures in such fiscal year. Section 2 provides that the effective date shall be immediately.   EXISTING LAW: Current law provides that the debt reduction reserve fund shall be established as a capital projects fund and that such fund shall consist of all monies credited or transferred thereto from the general fund or from any other fund or sources pursuant to law.   JUSTIFICATION: New York's debt continues to grow and residents are bearing an increas- ing tax burden. Many local governments and school districts, particular- ly upstate, are being forced to increase property taxes to pay bills and continue their operation. Additionally, New York's high cost of living and doing business has led to a decline population, particularly of those people under the age of 35. This is a common sense piece of legis- lation that is only a small step toward solving complicated issues. It will require that New York use 5% of a fiscal year surplus to pay down debt incurred by the State of New York. Automatically, 5% of the surplus will be transferred to the Debt Reduction Reserve Fund for that purpose. This established fund will be jointly controlled by the Comp- troller and the Commissioner of Taxation and Finance   PRIOR LEGISLATIVE HISTORY: 2008: A.2711 (Giglio) 2010: A.6518 (Giglio) 2012: A3681 (Giglio) 2014: A6023 (Giglio)   FISCAL IMPLICATIONS: Minimal.   EFFECTIVE DATE: This act shall take effect immediately.
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STATE OF NEW YORK ________________________________________________________________________ 5430 2015-2016 Regular Sessions IN ASSEMBLY February 23, 2015 ___________ Introduced by M. of A. GIGLIO, RAIA -- read once and referred to the Committee on Ways and Means AN ACT to amend the state finance law, in relation to the debt reduction reserve fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 97-rrr of the state finance law, as amended by 2 section 45 of part H of chapter 56 of the laws of 2000, is amended to 3 read as follows: 4 § 97-rrr. Debt reduction reserve fund. 1. There is hereby established 5 in the joint custody of the comptroller and the commissioner of taxation 6 and finance a fund to be known as the debt reduction reserve fund. Such 7 fund shall be established as a [ capital projects] debt service fund, 8 provided, however, any balance of moneys in such fund shall not be 9 transferred to the general fund pursuant to subdivision four of section 10 seventy-two of this article. 11 2. [ Such fund shall consist of all monies credited or transferred12 thereto from the general fund or from any other fund or sources pursuant13 to law.] At the close of each fiscal year, a portion of any cash surplus 14 remaining in the general fund after the transfer pursuant to section 15 ninety-two of this article shall be transferred from or retained in such 16 fund as provided in this subdivision. The portion to be transferred to 17 the debt reduction reserve fund shall be equal to five percent of such 18 surplus for such fiscal year. For the purposes of this subdivision, 19 cash surplus shall be defined as the amount by which general fund 20 receipts in a fiscal year exceed general fund expenditures in such 21 fiscal year. 22 3. The monies in such fund, following appropriation by the legislature 23 and allocation by the director of the budget, shall be available for the 24 [ following purposes:EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07078-01-5A. 5430 2 1 (a) for the payment of principal, interest, and related expenses on2 general obligation bonds, lease purchase payments, or special contractu-3 al obligation payments, or for the] purposes of retiring or defeasing 4 bonds or notes previously issued, including any accrued interest there- 5 on, for any state-supported bonding program or programs[ , and;6 (b) for the funding of capital projects, equipment acquisitions, or7 similar expenses which have been authorized by law to be financed8 through the issuance of bonds, notes, or other obligations]. 9 § 2. This act shall take effect immediately.