Bill Text: NY A03269 | 2011-2012 | General Assembly | Introduced


Bill Title: Implements provisions to limit state revenue growth; creates a revenue limitation; establishes a budget stabilization fund; sets rates for allowable growth; exempts emergencies declared by the governor; permits taxpayers to bring action to enforce revenue limitations.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2012-01-18 - to attorney-general for opinion [A03269 Detail]

Download: New_York-2011-A03269-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3269
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 24, 2011
                                      ___________
       Introduced  by  M. of A. SCHIMMINGER, SCHROEDER -- Multi-Sponsored by --
         M. of A. MAGEE, MAYERSOHN, REILLY -- read once  and  referred  to  the
         Committee on Ways and Means
                   CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
       proposing  an  amendment  to  article 7 of the constitution, relating to
         limiting the growth of New York state revenue, creates a revenue limi-
         tation and establishes a budget stabilization fund
    1    Section 1. Resolved (if the Senate concur),  That  article  7  of  the
    2  constitution be amended by adding a new section 7-a to read as follows:
    3    S 7-A. LIMITATION OF STATE REVENUES. FOR THE PURPOSES OF THIS SECTION:
    4  1.  (A)  "STATE  REVENUES" SHALL MEAN ALL REVENUES RECEIVED BY THE STATE
    5  DURING ANY FISCAL YEAR WHICH ARE INCLUDED IN THE  CASH  BASIS  FINANCIAL
    6  PLAN  OF  THE  STATE, EXCLUDING THE PROCEEDS OF GENERAL OBLIGATION BONDS
    7  AND BOND ANTICIPATION NOTES AUTHORIZED BY THE VOTERS OF  THE  STATE  AND
    8  ISSUED  BY  THE  STATE  COMPTROLLER PURSUANT TO SECTION TEN OR ELEVEN OF
    9  THIS ARTICLE, EXCLUDING FEDERAL GRANTS RECEIVED BY THE STATE AND EXCLUD-
   10  ING AMOUNTS NECESSARY FOR THE PAYMENT OF TAX REFUNDS DURING SUCH  FISCAL
   11  YEAR.
   12    (B)  "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN OR UNEXPECTED
   13  OCCURRENCE OR COMBINATION OF CIRCUMSTANCES,  EXCLUDING  ECONOMIC  CONDI-
   14  TIONS,  REVENUE  SHORTFALLS, OR SALARY OR FRINGE BENEFIT INCREASES, IN A
   15  GIVEN FISCAL YEAR WHICH REQUIRES IMMEDIATE AND SUDDEN FISCAL ACTION OF A
   16  DRASTIC BUT TEMPORARY NATURE.
   17    (C) "FISCAL GROWTH FACTOR" MEANS THE SUM OF INFLATION  AND  POPULATION
   18  CHANGE FOR THE PRIOR CALENDAR YEAR.
   19    (D)  "INFLATION"  MEANS  THE  CONSUMER PRICE INDEX (ALL ITEMS) FOR THE
   20  NORTHEAST URBAN REGION OF THE UNITED STATES OF AMERICA FOR EACH CALENDAR
   21  YEAR, AS COMPUTED BY THE FEDERAL  BUREAU  OF  LABOR  STATISTICS  OR  ITS
   22  SUCCESSOR AGENCY.
   23    (E)  "POPULATION  CHANGE"  MEANS  THE PERCENTAGE CHANGE IN STATE POPU-
   24  LATION FOR EACH CALENDAR YEAR AS DETERMINED BY THE FEDERAL CENSUS BUREAU
   25  OR ITS SUCCESSOR AGENCY.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD89080-01-1
       A. 3269                             2
    1    2. (A) THERE IS HEREBY ESTABLISHED A LIMIT  ON  THE  TOTAL  AMOUNT  OF
    2  TAXES  WHICH MAY BE IMPOSED BY THE LEGISLATURE IN ANY FISCAL YEAR ON THE
    3  TAXPAYERS OF THIS STATE. EFFECTIVE WITH THE FISCAL YEAR  IN  WHICH  THIS
    4  SECTION  TAKES EFFECT, AND FOR EACH FISCAL YEAR THEREAFTER, THE LEGISLA-
    5  TURE  SHALL  NOT IMPOSE TAXES OF ANY KIND WHICH, TOGETHER WITH ALL OTHER
    6  REVENUES OF THE STATE, FEDERAL FUNDS EXCLUDED, EXCEED THE REVENUE  LIMI-
    7  TATION  ESTABLISHED  IN  THIS  SECTION.  THE REVENUE LIMITATION SHALL BE
    8  CALCULATED FOR EACH FISCAL YEAR AND, FOR THE FISCAL YEAR IN  WHICH  THIS
    9  SECTION  TAKES EFFECT, SHALL BE EQUAL TO THE PRIOR FISCAL YEAR'S REVENUE
   10  INCREASED BY A PERCENTAGE RATE, THE FISCAL GROWTH FACTOR; AND, FOR  EACH
   11  SUBSEQUENT  YEAR,  SHALL  BE EQUAL TO THE PRIOR YEAR'S ALLOWABLE REVENUE
   12  INCREASED BY A PERCENTAGE RATE, THE FISCAL GROWTH FACTOR.
   13    (B) THE REVENUE LIMITATION ESTABLISHED IN THIS SECTION SHALL NOT APPLY
   14  TO TAXES IMPOSED FOR THE PAYMENT OF PRINCIPAL  AND  INTEREST  ON  BONDS,
   15  AUTHORIZED  BY  THE  VOTERS  OF  THE STATE AND ISSUED BY THE STATE COMP-
   16  TROLLER PURSUANT TO SECTION TEN OR ELEVEN OF THIS ARTICLE.
   17    (C) IF BY ORDER OF ANY COURT, OR LEGISLATIVE ENACTMENT, THE COSTS OF A
   18  FEDERAL OR LOCAL GOVERNMENT PROGRAM ARE TRANSFERRED TO OR FROM THE STATE
   19  OF NEW YORK,  THE  OTHERWISE  APPLICABLE  REVENUE  LIMITATION  SHALL  BE
   20  INCREASED  OR DECREASED, AS THE CASE MAY BE, BY THE DOLLAR AMOUNT OF THE
   21  COSTS OF THE PROGRAM.
   22    (D) NO EXPENSES OF STATE GOVERNMENT, EXCLUDING THE DISBURSEMENT OF THE
   23  PROCEEDS OF GENERAL OBLIGATION BONDS AND BOND ANTICIPATION NOTES AUTHOR-
   24  IZED BY THE VOTERS OF THE STATE AND  ISSUED  BY  THE  STATE  COMPTROLLER
   25  PURSUANT  TO  SECTION  TEN  OR  ELEVEN  OF  THIS  ARTICLE, EXCLUDING THE
   26  DISBURSEMENT OF FEDERAL GRANTS RECEIVED BY THE STATE  OF  NEW  YORK  AND
   27  EXCLUDING  THE  PAYMENT  OF  TAX REFUNDS DURING THE CURRENT FISCAL YEAR,
   28  SHALL BE INCURRED IN ANY FISCAL YEAR WHICH EXCEED THE SUM OF THE REVENUE
   29  LIMITATION ESTABLISHED IN THIS SECTION.
   30    3. THE STATE OF NEW YORK IS  PROHIBITED  FROM  REQUIRING  ANY  NEW  OR
   31  EXPANDED  ACTIVITIES BY COUNTIES OR OTHER POLITICAL SUBDIVISIONS WITHOUT
   32  FULL STATE FINANCING, OR FROM SHIFTING THE TAX BURDEN  TO  COUNTIES  AND
   33  OTHER POLITICAL SUBDIVISIONS.
   34    4. PURSUANT TO THIS SECTION, THE STATE OF NEW YORK IS HEREBY PROHIBIT-
   35  ED  FROM  REDUCING  THE  STATE  FINANCED  PROPORTION OF THE COSTS OF ANY
   36  EXISTING ACTIVITY OR SERVICE REQUIRED OF COUNTIES  AND  OTHER  POLITICAL
   37  SUBDIVISIONS.  A  NEW ACTIVITY OR SERVICE OR AN INCREASE IN THE LEVEL OF
   38  ANY ACTIVITY OR SERVICE BEYOND THAT REQUIRED BY EXISTING LAW  SHALL  NOT
   39  BE  REQUIRED BY THE LEGISLATURE OR ANY STATE AGENCY OF COUNTIES OR OTHER
   40  POLITICAL  SUBDIVISIONS,  UNLESS  A  STATE  APPROPRIATION  IS  MADE  AND
   41  DISBURSED  TO  PAY  THE  COUNTY  OR  OTHER POLITICAL SUBDIVISION FOR ANY
   42  INCREASED COSTS.
   43    5. THE REVENUE LIMITATION OF THIS SECTION MAY BE EXCEEDED ONLY IF  ALL
   44  THE FOLLOWING CONDITIONS ARE MET: (A) THE GOVERNOR FINDS AND DECLARES AN
   45  EMERGENCY;  (B) THE GOVERNOR PRESENTS TO THE LEGISLATURE A SPECIFIC PLAN
   46  AS TO THE NATURE OF THE EMERGENCY, THE DOLLAR AMOUNT OF  THE  EMERGENCY,
   47  AND  THE  METHOD  BY  WHICH  THE  EMERGENCY SHALL BE FUNDED; AND (C) THE
   48  LEGISLATURE AUTHORIZES THE PLAN BY A  TWO-THIRDS  VOTE  OF  THE  MEMBERS
   49  ELECTED  TO AND SERVING IN EACH HOUSE. SUCH AUTHORIZATION SHALL OCCUR IN
   50  ACCORDANCE WITH THIS SUBDIVISION PRIOR TO INCURRING ANY OF THE  EXPENSES
   51  WHICH  CONSTITUTE  THE  EMERGENCY  PLAN.  THE  REVENUE LIMITATION MAY BE
   52  EXCEEDED ONLY  DURING  THE  FISCAL  YEAR  FOR  WHICH  THE  EMERGENCY  IS
   53  DECLARED.
   54    6.  IN ANY FISCAL YEAR IF STATE REVENUES EXCEED THE REVENUE LIMITATION
   55  ESTABLISHED IN THIS SECTION, ONE-HALF OF THE  EXCESS  REVENUE  SHALL  BE
   56  REFUNDED TO THE TAXPAYERS OF THE STATE OF NEW YORK PRO RATA BASED ON THE
       A. 3269                             3
    1  LIABILITY  REPORTED  ON  NEW  YORK STATE INCOME TAX ANNUAL RETURNS FILED
    2  FOLLOWING THE CLOSE OF SUCH FISCAL YEAR AND THE OTHER  ONE-HALF  OF  THE
    3  EXCESS  REVENUE  SHALL  BE  PLACED  IN  THE BUDGET STABILIZATION FUND IN
    4  ACCORDANCE WITH SECTION SEVENTEEN-A OF THIS ARTICLE.
    5    7. ANY TAXPAYER OR STATEWIDE ELECTED OFFICIAL MAY BRING AN ACTION IN A
    6  COURT  OF  PROPER  JURISDICTION  IN ORDER TO ENFORCE COMPLIANCE WITH THE
    7  PROVISIONS OF THIS ARTICLE; IF THE SUIT IS SUSTAINED,  THE  TAXPAYER  OR
    8  STATEWIDE  ELECTED  OFFICIAL  SHALL  RECEIVE FROM THE APPLICABLE UNIT OF
    9  GOVERNMENT HIS  OR  HER  COSTS,  INCLUDING  REASONABLE  ATTORNEYS'  FEES
   10  INCURRED IN MAINTAINING SUCH SUIT.
   11    S  2. Resolved (if the Senate concur), That article 7 of the constitu-
   12  tion be amended by adding a new section 17-a to read as follows:
   13    S 17-A. BUDGET STABILIZATION FUND. 1.  THERE IS HEREBY  ESTABLISHED  A
   14  FUND,  TO  BE  KNOWN  AS  THE  BUDGET  STABILIZATION FUND, TO AID IN THE
   15  STABILIZATION OF STATE REVENUES, THE REDUCTION OF STATE TAXES,  AND  THE
   16  REDUCTION  OF  STATE  INDEBTEDNESS. THE MONIES OF THE FUND SHALL BE HELD
   17  SEPARATE AND APART FROM THE MONIES OF ALL OTHER FUNDS OF THE STATE.  THE
   18  BUDGET  STABILIZATION  FUND  SHALL  NOT  EXCEED FIVE PER CENTUM OF STATE
   19  REVENUES AS AUTHORIZED AND DEFINED BY THIS SECTION.
   20    2. FOR THE PURPOSE OF THIS SECTION: (A) "STATE  REVENUES"  SHALL  MEAN
   21  ALL  REVENUES  RECEIVED  BY  THE  STATE DURING ANY FISCAL YEAR WHICH ARE
   22  INCLUDED IN THE CASH BASIS FINANCIAL PLAN OF THE  STATE,  EXCLUDING  THE
   23  PROCEEDS OF GENERAL OBLIGATION BONDS AND BOND ANTICIPATION NOTES AUTHOR-
   24  IZED  BY  THE  VOTERS  OF  THE STATE AND ISSUED BY THE STATE COMPTROLLER
   25  PURSUANT TO SECTION TEN OR ELEVEN OF  THIS  ARTICLE,  EXCLUDING  FEDERAL
   26  GRANTS  RECEIVED  BY  THE  STATE AND EXCLUDING AMOUNTS NECESSARY FOR THE
   27  PAYMENT OF TAX REFUNDS DURING SUCH FISCAL YEAR.
   28    (B) "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN OR  UNEXPECTED
   29  OCCURRENCE  OR  COMBINATION  OF CIRCUMSTANCES, EXCLUDING ECONOMIC CONDI-
   30  TIONS, REVENUE SHORTFALLS, OR SALARY OR FRINGE BENEFIT INCREASES,  IN  A
   31  GIVEN FISCAL YEAR WHICH REQUIRES IMMEDIATE AND SUDDEN FISCAL ACTION OF A
   32  DRASTIC BUT TEMPORARY NATURE.
   33    3. IN ANY FISCAL YEAR IF STATE REVENUES EXCEED THE REVENUE LIMITATION,
   34  ONE-HALF  OF  THE  EXCESS REVENUE SHALL, UPON RECEIPT, BE TRANSFERRED TO
   35  THIS FUND. INCOME EARNED ON THE FUND SHALL ACCRUE TO THE FUND.
   36    4. THE MONIES OF THIS FUND MAY BE WITHDRAWN AND DISBURSED PURSUANT  TO
   37  APPROPRIATION,  BY THE APPROVAL OF TWO-THIRDS OF THE LEGISLATURE, DURING
   38  ANY FISCAL YEAR ONLY WHEN STATE REVENUES ARE LESS THAN THE REVENUE LIMI-
   39  TATION FOR SUCH  YEAR  OR  WHEN  THE  GOVERNOR  DECLARES  AN  EMERGENCY,
   40  PROVIDED  THAT THE REVENUE LIMITATION SHALL NOT BE EXCEEDED THROUGH SUCH
   41  APPROPRIATION.
   42    5. IF IN ANY FISCAL YEAR THE MONIES IN THE FUND EXCEED FIVE PER CENTUM
   43  OF STATE REVENUES AS AUTHORIZED AND DEFINED BY THIS SECTION, THE  EXCESS
   44  MONIES  SHALL  BE  WITHDRAWN AND DISBURSED PURSUANT TO APPROPRIATION, BY
   45  THE APPROVAL OF THE LEGISLATURE: (A) FOR THE REDUCTION OF  STATE  TAXES;
   46  AND/OR  (B)  FOR  THE RETIREMENT OF THE PRINCIPAL AMOUNT OF INDEBTEDNESS
   47  ISSUED BY OR ON BEHALF OF THE STATE EXCLUDING  NOTES  ISSUED  IN  ANTIC-
   48  IPATION  OF  TAX OR OTHER REVENUES OF THE STATE; AND/OR (C) IN ANY OTHER
   49  MANNER DETERMINED BY THE STATE LEGISLATURE, PROVIDED  THAT  THE  REVENUE
   50  LIMITATION SHALL NOT BE EXCEEDED THROUGH SUCH OTHER DETERMINATION.
   51    S  3. Resolved (if the Senate concur), That section 17 of article 7 of
   52  the constitution be amended to read as follows:
   53    S 17. The legislature may establish a fund or funds,  OTHER  THAN  THE
   54  BUDGET STABILIZATION FUND ESTABLISHED PURSUANT TO SECTION SEVENTEEN-A OF
   55  THIS  ARTICLE,  to  aid  in the stabilization of the tax revenues of the
   56  state available for expenditure or distribution. Any law creating such a
       A. 3269                             4
    1  fund shall specify the tax or taxes to  which  such  fund  relates,  and
    2  shall prescribe the method of determining the amount of revenue from any
    3  such  tax  or  taxes  which shall constitute a norm of each fiscal year.
    4  Such part as shall be prescribed by law of any revenue derived from such
    5  tax  or  taxes during a fiscal year in excess of such norm shall be paid
    6  into such fund. No moneys shall at any time be withdrawn from such  fund
    7  unless  the  revenue derived from such tax or taxes during a fiscal year
    8  shall fall below the norm for such year; in which event such  amount  as
    9  may  be  prescribed  by  law,  but  in  no event an amount exceeding the
   10  difference between such revenue and such norm, shall be paid  from  such
   11  fund into the general fund.
   12    No  law  changing  the method of determining a norm or prescribing the
   13  amount to be paid into such a fund or to be paid from such a  fund  into
   14  the general fund may become effective until three years from the date of
   15  its enactment.
   16    S 4. Resolved (if the Senate concur), That the foregoing amendments be
   17  referred  to  the  first regular legislative session convening after the
   18  next succeeding general election of members of  the  assembly,  and,  in
   19  conformity  with  section  1  of  article  19  of  the  constitution, be
   20  published for 3 months previous to the time of such election.
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