Bill Text: NY A05826 | 2019-2020 | General Assembly | Introduced

Bill Title: 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.

Spectrum: Strong Partisan Bill (Republican 10-1)

Status: (Introduced) 2019-02-19 - referred to ways and means [A05826 Detail]

Download: New_York-2019-A05826-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 19, 2019
        Introduced by M. of A. GIGLIO, BRABENEC, LAWRENCE, McDONOUGH, B. MILLER,
          MORINELLO,  RAIA,  SMULLEN -- Multi-Sponsored by -- M. of A. SAYEGH --
          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 and subdivision 4
     3  as added by section 22-b of part XXX of chapter 59 of the laws of  2017,
     4  is amended to read as follows:
     5    §  97-rrr. Debt reduction reserve fund. 1. There is hereby established
     6  in the joint custody of the comptroller and the commissioner of taxation
     7  and finance a fund to be known as the debt reduction reserve fund.  Such
     8  fund  shall  be  established  as a [capital projects] debt service fund,
     9  provided, however, any balance of moneys  in  such  fund  shall  not  be
    10  transferred  to the general fund pursuant to subdivision four of section
    11  seventy-two of this article.
    12    2. [Such fund shall consist of  all  monies  credited  or  transferred
    13  thereto from the general fund or from any other fund or sources pursuant
    14  to law.] At the close of each fiscal year, a portion of any cash surplus
    15  remaining  in  the  general  fund after the transfer pursuant to section
    16  ninety-two of this article shall be transferred from or retained in such
    17  fund as provided in this subdivision. The portion to be  transferred  to
    18  the  debt  reduction reserve fund shall be equal to five percent of such
    19  surplus for such fiscal year.   For the purposes  of  this  subdivision,
    20  cash  surplus  shall  be  defined  as  the  amount by which general fund
    21  receipts in a fiscal year  exceed  general  fund  expenditures  in  such
    22  fiscal year.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 5826                             2
     1    3. The monies in such fund, following appropriation by the legislature
     2  and allocation by the director of the budget, shall be available for the
     3  [following purposes:
     4    (a)  for  the  payment of principal, interest, and related expenses on
     5  general obligation bonds, lease purchase payments, or special contractu-
     6  al obligation payments, or for the] purposes of  retiring  or  defeasing
     7  bonds  or notes previously issued, including any accrued interest there-
     8  on, for any state-supported bonding program or programs[, and;
     9    (b) for the funding of capital projects,  equipment  acquisitions,  or
    10  similar  expenses  which  have  been  authorized  by  law to be financed
    11  through the issuance of bonds, notes, or other obligations].
    12    4. Any amounts disbursed from such fund shall  be  excluded  from  the
    13  calculation  of  annual  spending  growth in state operating funds until
    14  June 30, 2019.
    15    § 2. This act shall take effect immediately.