NY State Assembly Bill 2009-A9061

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 01, 2010	held for consideration in ways and means
Jan 06, 2010	referred to ways and means
Jun 23, 2009	referred to ways and means

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multi-Sponsors

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2009-A9061 (ACTIVE) - Details

Current Committee:: Assembly Ways And Means
Law Section:: State Finance Law
Laws Affected:: Add Art 17 §§244 - 246, amd §92-cc, St Fin L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A5370
2013-2014: A1367
2015-2016: A4383
2017-2018: A5942
2019-2020: A4446
2021-2022: A5550
2023-2024: A4845

2009-A9061 (ACTIVE) - Summary

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

2009-A9061 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A9061

TITLE OF BILL:  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

PURPOSE OR GENERAL IDEA OF BILL:  This legislation will cap the growth
of state spending and increase the allowable reserve of the rainy day
fund.

SUMMARY OF SPECIFIC PROVISIONS:  Section 1 of the bill would amend
that State Finance Law ("SFL") to add a new Article 17, establishing a
state spending cap.

* New SFL §244 sets forth definitions for Article 17.

* New SFL §245 establishes a spending cap, which limits the growth of
state operating funds spending to no more than the average rate of
inflation of the three previous calendar years. In addition, the
section requires the Governor to certify that the executive budget is
consistent with the cap and the comptroller to provide, within five
days of action by the Legislature upon the budget, a determination as
to whether the state budget as enacted exceeds the annual spending
growth cap. Finally, the section provides that is the Comptroller
finds that the state budget as enacted exceeds the annual spending
growth cap, the Governor must take corrective action, such as a veto,

reducing state agency spending reductions, to ensure that funding is
limited to the amount of the annual spending cap.

* New SFL §246 provides that upon a finding of an emergency by the
Governor, he or she may declare an emergency by executive order.
Based upon such declaration, the Governor may submit, and the
Legislature may authorize, by two-thirds supermajority, a budget
containing a percentage increase in state operating fund spending over
the prior fiscal year that exceeds the annual spending growth cap.

Section 2 of the bill would increase the maximum capacity of the
state's rainy day reserve from 3 percent of General Fund spending to
10 percent of General Fund spending.

Section 3 would make the act effective immediately.

JUSTIFICATION:  State government spending has grown substantially in
recent years - especially in good economic times. Such growth has
forced the State to take drastic actions to stabilize its finances
when revenues decline dramatically during periods of economic
difficulty.

For example, from 2002-03 to 2007-08, State Operating Funds spending
grew from $52.8 billion to $77.0 billion - an average annual rate of
7.86 percent. In great part due to this dramatic expansion in
spending, the State needed to address a nearly $20.1 billion deficit
during last year's budget process.

To end this pattern of boom and bust cycle budgeting, and impose
greater fiscal discipline on state government, this legislation would
enact a strict cap limiting the growth of State Operating Funds


spending. It also significantly increases the maximum capacity of the
State's rainy day reserve so that surplus that accrue as a result of
this cap can be used to help address revenue declines during times of
economic difficulty.

It the cap proposed in this legislation had been in place from 2002-03
to 2007-08, average annual spending growth during that period would
have averaged 2.6y percent. Additionally, 2007-08 State Operating
Funds spending would have totaled $60.0 billion - $17.0 billion lower
than actual results.

PRIOR LEGISLATIVE HISTORY:  SFL §92-cc(2) establishes a maximum
balance in the rainy day reserve fund for three percent of the
aggregate amount to be disbursed annually from the General Fund.

FISCAL IMPLICATIONS:  1 2010-11, it is expected that the cap would
limit State Operating Funds spending to no greater than $80.4 billion,
which reflects an increase of $1.7 billion or 2.1 percent from the
prior year. This capped spending level would be $2.2 billion below the
most recent current law estimates of State Operating Funds spending
for 2010-11 ($82.6 billion, an increase of $3.9 billion or 5.0
percent) projected in the Division of the Budget's financial plan.

The fiscal impact on local governments would depend upon policy
choices made during the budget process in order to comply with the cap

EFFECTIVE DATE:  The proposal would take effect immediately upon
enactment.

2009-A9061 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9061

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 23, 2009
                               ___________

Introduced  by M. of A. KOLB, AMEDORE, FITZPATRICK, HAYES, JORDAN, MILL-
  ER, QUINN -- Multi-Sponsored by -- M. of A. BACALLES,  BALL,  BARCLAY,
  BOYLE,  BURLING, BUTLER, CALHOUN, CONTE, CORWIN, CROUCH, DUPREY, ERRI-
  GO, FINCH, GIGLIO, HAWLEY, P. LOPEZ, McKEVITT, MOLINARO, OAKS, O'MARA,
  RABBITT, REILICH, SAYWARD, SCOZZAFAVA, TEDISCO, THIELE, TOBACCO, WALK-
  ER -- 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:

  Section 1. The state finance law is amended by adding a new article 17
to read as follows:
                               ARTICLE 17
                         SPENDING GROWTH CAP ACT
SECTION 244. DEFINITIONS.
        245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
        246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
  S 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED:
  1. "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED  BY
ADDING  THE  INFLATION RATES FROM EACH OF THE THREE CALENDAR YEARS IMME-
DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID-
ING THAT SUM BY THREE.
  2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF
ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF
THE STATE,  EXCLUDING  DISBURSEMENTS  FROM  FEDERAL  FUNDS  AND  CAPITAL
PROJECT FUNDS.
  3.   "INFLATION   RATE"  SHALL  MEAN  THE  PERCENTAGE  CHANGE  IN  THE
TWELVE-MONTH AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU  OF  LABOR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14444-01-9

A. 9061                             2

STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO
THE PRIOR CALENDAR YEAR.
  4.  "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE
GOVERNOR  PURSUANT  TO SECTION ONE OF ARTICLE VII OF THE STATE CONSTITU-
TION.
  5.  "STATE BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY  THE
LEGISLATURE  IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF ARTI-
CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE
STATE CONSTITUTION.
  6. "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR  UNEXPECTED
OCCURRENCE,  OR  COMBINATION OF CIRCUMSTANCES, INCLUDING BUT NOT LIMITED
TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY.
  S 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.  1. THERE IS HERE-
BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP.
  2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE  SHALL  NOT  ACT
UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL
YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING
GROWTH CAP.
  3.  THE  GOVERNOR  SHALL CERTIFY IN WRITING THAT STATE OPERATING FUNDS
SPENDING IN THE EXECUTIVE BUDGET DOES NOT  EXCEED  THE  ANNUAL  SPENDING
GROWTH  CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR IS
NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER  EXECUTIVE
BUDGET,  HE  OR  SHE  SHALL  FURNISH A REASONABLE ESTIMATE OF SUCH PRIOR
CALENDAR YEAR INFLATION RATE.
  4. THE COMPTROLLER SHALL PROVIDE, WITHIN FIVE DAYS OF  ACTION  BY  THE
LEGISLATURE  UPON  THE  BUDGET,  A DETERMINATION AS TO WHETHER THE STATE
OPERATING FUNDS SPENDING AS SET FORTH IN THE  STATE  BUDGET  AS  ENACTED
EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
  5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET
FORTH  IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH
CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE THAT FUNDING IS
LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP.
  S 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.  1. UPON A FIND-
ING OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN  EMERGENCY
BY  AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH DECLA-
RATION.
  2. BASED UPON SUCH DECLARATION,  THE  GOVERNOR  MAY  SUBMIT,  AND  THE
LEGISLATURE  MAY  AUTHORIZE,  BY  A  TWO-THIRDS SUPER MAJORITY, A BUDGET
CONTAINING A PERCENTAGE INCREASE OVER THE PRIOR  FISCAL  YEAR  IN  STATE
OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
  S 2. Subdivision 2 of section 92-cc of the state finance law, as added
by chapter 1 of the laws of 2007, is amended to read as follows:
  2.  Such  fund  shall have a maximum balance not to exceed [three] TEN
per centum of the aggregate amount projected to be  disbursed  from  the
general  fund during the fiscal year immediately following the then-cur-
rent fiscal year.
  S 3. This act shall take effect immediately.

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Assembly Bill A9061

Sponsored By

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

multi-Sponsors

2009-A9061 (ACTIVE) - Details

2009-A9061 (ACTIVE) - Summary

2009-A9061 (ACTIVE) - Sponsor Memo

2009-A9061 (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A9061

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Sponsored By

KOLB

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

George Amedore

Michael J. Fitzpatrick

James Hayes

Tony Jordan

multi-Sponsors

James Bacalles

Greg Ball

William A. Barclay

Phil Boyle

2009-A9061 (ACTIVE) - Details

2009-A9061 (ACTIVE) - Summary

2009-A9061 (ACTIVE) - Sponsor Memo

2009-A9061 (ACTIVE) - Bill Text download pdf

Comments