Barclay, Castorina, Crouch, DiPietro, Fitzpatrick, Friend, Giglio, Goodell, Hawley, Johns, Kolb,
McDonough, Miller B
Amd §§22, 40 & 92, add §24-a, St Fin L; add §53-a, amd §54, Leg L
Relates to the legislative budget and deposits to the tax stabilization reserve fund; requires that no later than March fifteenth of each year the temporary president of the senate, the minority leader of the senate, the speaker of the assembly and the minority leader of the assembly shall jointly convene a general budget conference committee to resolve the differences between each house concerning the executive budget; further alters the amounts of the deposits to the tax stabilization reserve fund; provides that subsequent to April first of each year, the legislature may not consider other legislation until a budget is passed, with exceptions; limits all funds spending to the rate of the inflation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6098
SPONSOR: Oaks (MS) TITLE OF BILL: An act to amend the state finance law and the legisla-
tive law, in relation to the legislative budget and deposits to the tax
stabilization reserve fund
PURPOSE OR GENERAL IDEA OF BILL:
This legislation would implement a comprehensive plan for budget reform
that will fix the historically flawed budget adoption process, assure
on-time adoption of the State Budget, and open up the entire process to
public scrutiny.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new section 24-a to the State Finance Law requiring
that Budget Conference Committees convene by March 15th of each year and
sets forth requirements for the operation of the budget conference
committees.
Among the requirements is a provision that all meetings of the General
Committee and of the subcommittees be held in public.
On completion of efforts to resolve the differences between each house,
each subcommittee shall submit a final report to the General Committee
on the results of such efforts and make recommendations for final action
to be taken on the budget bills submitted by the Governor for the ensu-
ing fiscal year. Each subcommittee must issue a final report which must
indicate the estimated impact that each of the subcommittees recommenda-
tions would have on State furnaces for the ensuing and next two fiscal
years. The General Committee must either approve or agree upon modifica-
tions of each subcommittee report. The General Committee must issue a
written report including all recommendations for final action to be
taken on the budget bills submitted by the Governor for the ensuing
year. That report must be made available to the public.
Section 2 amends subdivisions 1, 2 and 3 of section 40 of the Stare
Finance Law to require the Executive to submit two separate appropri-
ations for school aid for the upcoming fiscal year and the succeeding
fiscal year.
Section 3 amends subdivisions 3 and 4 of section 92 of the State Finance
Law by increasing the amount that can be deposited into the Tax Stabili-
zation Reserve Fund from two-tenths of one percent of total General Fund
disbursements to one-half of one percent of-total General Fund disburse-
ments. This section also increases the maximum balance that can be in
the Tax Stabilization Reserve Fund from two percent to five percent of
General Fund disbursements.
Section 4 adds a new section 53-a to the Legislative Law which provides
that subsequent to the start of the State's April fiscal year, the
Legislature may not consider any other legislation until a State Budget
has been adopted. An exception to this prohibition is made for appropri-
ation bills submitted to the Legislature on message from the Governor
certifying to the necessity of the immediate passage of such bill.
Section 5 amends section 54 of the Legislative Law by adding new subdi-
visions 3, 4, and 5. This section would require that when both houses
are in agreement and prepared to finally act on appropriation bills
submitted by the Governor, the Secretary of the Senate Finance Committee
and the Secretary of the Assembly Ways and Means Committee must submit a
letter to the Division of the Budget which states that both houses are
in agreement and which includes information sufficient for the prepara-
tion of a plain language summary report of the appropriation bills and
related legislation to be enacted by the Legislature. This summary
report must be prepared by the Division of the Budget. The summary
report shall be in such form as to indicate that anticipated disburse-
ments will not exceed total anticipated receipts. The summary report
will further describe the impact for such fiscal year and for the
succeeding two fiscal years. The summary report shall be placed on the
desks of each member of the Legislature, and be made available to the
public for a period of at least 43 hours prior to passage of the appro-
priations bills and related legislation by each house.
Section 6 amends paragraph (a) of subdivision 2 of section 54 of the
Legislative Law to specify that the year-to-year increase in ALL FUNDS
spending may not exceed the percentage increase in the rate of inflation
for the same period. The exception would be in the event the state
received unexpected Federal Funds, which would put us over the infla-
tionrate increase.
Section 7 amends section 22 of the State Finance Law, to limit the year-
to-year increase in ALL FUNDS spending to the percentage increase in the
rate of inflation for the same period.
Section 8 prevents the Legislature from funding community projects and
organizations through lump sums, thereby providing better visibility of
what State resources are supporting.
Section 9 states that this act shall take effect immediately provided
that the provisions of section three of this act shall take effect three
years after it shall become a law.
JUSTIFICATION:
Reforms are needed to ensure a timely budget and an open process that
benefits all taxpayers. This legislation is part of a comprehensive plan
for budget reform that will fix the historically flawed budget adoption
process.
The bill will enhance the State's fiscal stability by increasing the
amount of money in the State's Rainy Day fund (Tax Stabilization Reserve
fund) from two percent to five percent. Expanding the "rainy day" fund
will ensure greater fiscal discipline in these uncertain economic times
and will preserve recent improvements to the State's credit rating.
The bill also prevents the use of lump sums for member item grants,
thereby providing transparency regarding the use of these funds.
PRIOR LEGISLATIVE HISTORY:
A.5531 of 2016 Held for consideration in Ways and Means
A.4333 of 2014 Held for consideration in Ways and Means
A.9076 of 2012 Held for consideration in Ways and Means
A.6263 of 2011 Referred to Ways and Means
A.5743 of 2010 Held for consideration in Ways and Means
A.95-A of 2008 Held for consideration in Ways and Means
A.9749 of 2006 Held for consideration in Ways and Means
FISCAL IMPLICATIONS:
None to the State
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
provisions of section three of this act shall take effect three years
after it shall have become a law.
