Bill Text: NY A09789 | 2019-2020 | General Assembly | Amended


Bill Title: Relates to the establishment by the city of New York of a revenue stabilization fund and variations from generally accepted accounting principles as applied to the budget and accounts of such city in connection with such fund.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Passed) 2020-06-17 - SIGNED CHAP.118 [A09789 Detail]

Download: New_York-2019-A09789-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         9789--A

                   IN ASSEMBLY

                                    February 11, 2020
                                       ___________

        Introduced  by  M. of A. BRAUNSTEIN, GOTTFRIED -- read once and referred
          to the Committee on Cities  --  committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee

        AN  ACT to amend the general municipal law and the New York state finan-
          cial emergency act for the city of New York, in relation to the estab-
          lishment by the city of New York of a revenue stabilization  fund  and
          variations from generally accepted accounting principles as applied to
          the budget and accounts of such city in connection with such fund

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 25 of the general municipal law, as added by  chap-
     2  ter 406 of the laws of 2019, is amended to read as follows:
     3    §  25.  Treatment  of  capital  costs  and  [restricted]  certain fund
     4  balances of the city of New York; revenue  stabilization  fund  of  such
     5  city.    Notwithstanding  the provisions of any general or special state
     6  law or local law to the contrary, including but not limited to  the  New
     7  York  city charter, the following shall apply with respect to the budget
     8  and accounts of the city of New York:
     9    1. All costs that would be capital costs in accordance with  generally
    10  accepted  accounting principles, but for the application of governmental
    11  accounting standards board statement number forty-nine, shall be  deemed
    12  to be capital costs for purposes of this chapter and any other provision
    13  of  state  or  local law, including but not limited to the New York city
    14  charter, relevant to the treatment of such costs; [and]
    15    2. The determination as to the existence of a deficit pursuant to  the
    16  New  York  state financial emergency act for the city of New York, while
    17  such act remains in effect, and any other provision of  state  or  local
    18  law,  including  but  not limited to the New York city charter, shall be
    19  made without regard to changes in restricted fund balances,  as  defined
    20  by  the  governmental  accounting standards board, where restrictions in
    21  relation to such fund balances are imposed by state or  federal  law  or
    22  regulation,  or  otherwise by private or governmental parties other than
    23  the city of New York, and without regard to funds  held  in  the  health
    24  stabilization  fund,  the  school crossing guards health insurance fund,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15355-02-0

        A. 9789--A                          2

     1  any revenue stabilization fund established pursuant to  section  fifteen
     2  hundred  twenty-eight  of  the  New York city charter and the management
     3  benefits fund established by the city of New York.   Deposits  into  any
     4  such  revenue  stabilization fund shall be deemed to be expenses of such
     5  city for all purposes in the fiscal year during which such deposits  are
     6  made,  and  withdrawals from such fund shall be deemed to be revenues of
     7  such city for all purposes in the fiscal year during  which  such  with-
     8  drawals are made; provided however, that surpluses of such city, whether
     9  accumulated  from fiscal years ending prior to the effective date of the
    10  chapter of the laws of two thousand twenty that amended this subdivision
    11  or existing at the close of any fiscal year ending after such  effective
    12  date, shall be deposited into such revenue stabilization fund as soon as
    13  practicable,  and such deposits shall not be deemed expenses of the city
    14  in the fiscal years during which such deposits are made; and
    15    3. The city of New York may establish and maintain a revenue  stabili-
    16  zation  fund pursuant to section fifteen hundred twenty-eight of the New
    17  York city charter. Except as required by subdivision two of this section
    18  with respect to surpluses, deposits into and withdrawals from such  fund
    19  may  be  made  by  means of the procedures set forth in such charter for
    20  adoption or modification of the expense budget of such city, as applica-
    21  ble, provided that no more than fifty percent of  the  total  amount  of
    22  such  fund  may  be  withdrawn  in  any fiscal year unless the mayor has
    23  certified that there is a compelling fiscal need, which may be based  on
    24  circumstances  including,  but not be limited to, a national or regional
    25  recession, a reduction in total revenues from the preceding fiscal  year
    26  as projected in the financial plan of the city of New York, a natural or
    27  other disaster, or a declared state of emergency in the city of New York
    28  or  the state of New York. The authority to establish a revenue stabili-
    29  zation fund set forth in this subdivision shall be in  addition  to  any
    30  other authorization set forth in this article or other applicable law.
    31    § 2. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
    32  868 of the laws of 1975, constituting the New York state financial emer-
    33  gency  act  for  the  city of New York, as amended by chapter 406 of the
    34  laws of 2019, is amended to read as follows:
    35    a. For its fiscal years ending June thirtieth, nineteen hundred seven-
    36  ty-nine through June thirtieth, nineteen hundred eighty-one, the  city's
    37  budget  covering  all  expenditures  other  than  capital items shall be
    38  prepared and balanced so that the results thereof would not show a defi-
    39  cit when reported in accordance with the accounting principles set forth
    40  in the state  comptroller's  uniform  system  of  accounts  for  munici-
    41  palities,  as  the same may be modified by the comptroller, in consulta-
    42  tion with the city comptroller, for application to the city; subject  to
    43  the provision of subdivision four of section three thousand thirty-eight
    44  of  the public authorities law with respect to contributions by the city
    45  or other public employer to any retirement system or  pension  fund  and
    46  subject to the provision of paragraph (c) of subdivision five of section
    47  three  thousand  thirty-eight of the public authorities law with respect
    48  to expense items included in the capital budget of  the  city.  For  the
    49  fiscal  year ending June thirtieth, nineteen hundred eighty-two, and for
    50  each fiscal year thereafter, the city's budget covering all expenditures
    51  other than capital items shall be prepared  and  balanced  so  that  the
    52  results  thereof  would  not  show a deficit when reported in accordance
    53  with generally accepted accounting principles and would  permit  compar-
    54  ison  of the budget with the report of actual financial results prepared
    55  in  accordance  with  generally  accepted  accounting  principles.  With
    56  respect  to  financial  plans  that include the fiscal years ending June

        A. 9789--A                          3

     1  thirtieth, nineteen hundred seventy-nine through June  thirtieth,  nine-
     2  teen  hundred  eighty-one,  the  city's budget covering all expenditures
     3  other than capital items shall be prepared in accordance with  generally
     4  accepted  accounting  principles and there shall be substantial progress
     5  in each such fiscal year towards achieving a city  budget  covering  all
     6  expenditures  other  than  capital  items the results of which would not
     7  show a deficit when  reported  in  accordance  with  generally  accepted
     8  accounting  principles.  The city shall eliminate expense items from its
     9  capital budget not later than the commencement of the fiscal year ending
    10  June thirtieth, nineteen hundred eighty-two. For the fiscal year  ending
    11  June  thirtieth,  nineteen hundred eighty-nine, and for each fiscal year
    12  thereafter, the budgets covering all  expenditures  other  than  capital
    13  items  of  each  of  the  covered  organizations  shall  be prepared and
    14  balanced so that the results thereof  would  not  show  a  deficit  when
    15  reported  in  accordance  with generally accepted accounting principles;
    16  and for each fiscal year  prior  thereto,  there  shall  be  substantial
    17  progress  towards  such  goal.  Notwithstanding  the  foregoing  and the
    18  provisions of any general or special state  law  or  local  law  to  the
    19  contrary,  including  but not limited to the New York city charter:  (i)
    20  all costs that would be  capital  costs  in  accordance  with  generally
    21  accepted  accounting principles, but for the application of governmental
    22  accounting standards board statement number forty-nine, shall be  deemed
    23  to  be capital costs for purposes of this act and any other provision of
    24  state or local law, including but not limited to the New York city char-
    25  ter, relevant to the treatment of such costs; and (ii) the determination
    26  as to the existence of a deficit pursuant to  this  act  and  any  other
    27  provision  of  state  or local law, including but not limited to the New
    28  York city charter, shall be made without regard to changes in restricted
    29  fund balances, as  defined  by  the  governmental  accounting  standards
    30  board,  where restrictions in relation to such fund balances are imposed
    31  by state or federal law  or  regulation,  or  otherwise  by  private  or
    32  governmental parties other than the city of New York, and without regard
    33  to  funds  held  in  the  health stabilization fund, the school crossing
    34  guards health insurance fund, any revenue stabilization fund established
    35  pursuant to section fifteen hundred twenty-eight of the  New  York  city
    36  charter  and the management benefits fund established by the city of New
    37  York. Deposits into any such revenue stabilization fund shall be  deemed
    38  to  be  expenses  of such city in the fiscal year in which such deposits
    39  are made, and withdrawals from such fund shall be deemed to be  revenues
    40  of  such  city  in the year in which such withdrawals are made; provided
    41  however, that surpluses of such city, whether  accumulated  from  fiscal
    42  years  ending  prior to the effective date of the chapter of the laws of
    43  two thousand twenty that amended this paragraph or existing at the close
    44  of any fiscal year ending after such effective date, shall be  deposited
    45  into  such  revenue  stabilization fund as soon as practicable, and such
    46  deposits shall not be deemed expenses of the city in the fiscal year  in
    47  which such deposits are made.
    48    § 3. This act shall take effect immediately.
feedback