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. LBD15355-02-0A. 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 JuneA. 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.