Bill Text: NY A04446 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes a spending cap and increases the maximum capacity of the rainy day fund.

Spectrum: Partisan Bill (Republican 29-1)

Status: (Introduced) 2019-02-04 - referred to ways and means [A04446 Detail]

Download: New_York-2019-A04446-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4446
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 4, 2019
                                       ___________
        Introduced  by  M.  of  A.  KOLB, FITZPATRICK, MONTESANO, PALMESANO, RA,
          MALLIOTAKIS, BLANKENBUSH, NORRIS, BRABENEC, SMITH, MIKULIN  --  Multi-
          Sponsored  by  --  M.  of  A. BARCLAY, BYRNE, CROUCH, DiPIETRO, FINCH,
          FRIEND, GIGLIO, GOODELL, HAWLEY, JOHNS, STEC, THIELE -- read once  and
          referred to the Committee on Ways and Means
        AN  ACT  to  amend  the state finance law, in relation to establishing a
          spending cap and increasing the maximum capacity of the rainy day fund
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The state finance law is amended by adding a new article 17
     2  to read as follows:
     3                                ARTICLE XVII
     4                           SPENDING GROWTH CAP ACT
     5  Section 250. Definitions.
     6          251. Establishment of annual spending growth cap.
     7          252. Provisions regarding declaration of emergency.
     8    § 250. Definitions. As used in this article, the following terms shall
     9  have the following meanings, unless otherwise specified:
    10    1.  "Annual spending growth cap" shall mean a percentage determined by
    11  adding the inflation rates from each of the three calendar  years  imme-
    12  diately prior to the commencement of a given fiscal year and then divid-
    13  ing that sum by three.
    14    2. "State operating funds spending" shall mean annual disbursements of
    15  all governmental fund types included in the cash-basis financial plan of
    16  the  state,  excluding  disbursements  from  federal  funds  and capital
    17  project funds.
    18    3. "Inflation rate" shall mean the percentage change  in  the  twelve-
    19  month  average  of  the  consumer price index for all urban consumers as
    20  published by the United States department  of  labor,  bureau  of  labor
    21  statistics or any successor agency for a given calendar year compared to
    22  the prior calendar year.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05716-01-9

        A. 4446                             2
     1    4.  "Executive budget" shall mean the budget submitted annually by the
     2  governor  pursuant  to section one of article VII of the state constitu-
     3  tion.
     4    5.   "State budget as enacted" shall mean the budget acted upon by the
     5  legislature in a given fiscal year, as subject to section four of  arti-
     6  cle VII of the state constitution and section seven of article IV of the
     7  state constitution.
     8    6.  "Emergency" shall mean an extraordinary, unforeseen, or unexpected
     9  occurrence, or combination of circumstances, including but  not  limited
    10  to a natural disaster, invasion, terrorist attack, or economic calamity.
    11    § 251. Establishment of annual spending growth cap.  1. There is here-
    12  by established an annual spending growth cap.
    13    2.  The  governor  shall not submit, and the legislature shall not act
    14  upon, a budget that contains a percentage increase over the prior fiscal
    15  year in state operating funds spending which exceeds the annual spending
    16  growth cap.
    17    3. The governor shall certify in writing that  state  operating  funds
    18  spending  in  the  executive  budget does not exceed the annual spending
    19  growth cap. If final inflation rate data for the prior calendar year  is
    20  not  yet available at the time the governor submits his or her executive
    21  budget, he or she shall furnish a  reasonable  estimate  of  such  prior
    22  calendar year inflation rate.
    23    4.  The  comptroller  shall provide, within five days of action by the
    24  legislature upon the budget, a determination as  to  whether  the  state
    25  operating  funds  spending  as  set forth in the state budget as enacted
    26  exceeds the annual spending growth cap.
    27    5. If the comptroller finds that state operating funds spending as set
    28  forth in the state budget as enacted exceeds the annual spending  growth
    29  cap, the governor shall take corrective action to ensure that funding is
    30  limited to the amount of the annual spending cap.
    31    § 252. Provisions regarding declaration of emergency.  1. Upon a find-
    32  ing  of an emergency by the governor, he or she may declare an emergency
    33  by an executive order which shall set forth the reasons for such  decla-
    34  ration.
    35    2.  Based  upon  such  declaration,  the  governor may submit, and the
    36  legislature may authorize, by a  two-thirds  super  majority,  a  budget
    37  containing  a  percentage  increase  over the prior fiscal year in state
    38  operating funds spending that exceeds the annual spending growth cap.
    39    § 2. Subdivision 2 of section 92-cc  of  the  state  finance  law,  as
    40  amended  by section 12-a of part I of chapter 60 of the laws of 2015, is
    41  amended to read as follows:
    42    2. Such fund shall have a maximum balance not to exceed [five] ten per
    43  centum of the aggregate amount projected to be disbursed from the gener-
    44  al fund during the fiscal year immediately  following  the  then-current
    45  fiscal  year.  At  the  request of the director of the budget, the state
    46  comptroller shall transfer monies to the rainy day reserve  fund  up  to
    47  and including an amount equivalent to seventy-five one-hundredths of one
    48  per  centum  of  the aggregate amount projected to be disbursed from the
    49  general fund during the then-current fiscal year, unless  such  transfer
    50  would  increase  the  rainy  day  reserve fund to an amount in excess of
    51  [five] ten per centum of the aggregate amount projected to be  disbursed
    52  from  the  general fund during the fiscal year immediately following the
    53  then-current fiscal year, in which event such transfer shall be  limited
    54  to  such  amount  as  will  increase  the rainy day reserve fund to such
    55  [five] ten per centum limitation.
    56    § 3. This act shall take effect immediately.
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