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

                                  1367

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. KOLB, FITZPATRICK, JORDAN, MONTESANO, McLAUGHLIN,
  PALMESANO,  RA, MALLIOTAKIS -- Multi-Sponsored by -- M. of A. BARCLAY,
  BUTLER,  CERETTO,  CORWIN,  CROUCH,  CURRAN,  DUPREY,  FINCH,  FRIEND,
  GIGLIO,  GOODELL,  HAWLEY, JOHNS, P. LOPEZ, LOSQUADRO, McKEVITT, OAKS,
  RABBITT, REILICH, TEDISCO, TENNEY, THIELE, WALTER  --  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 XVII
                         SPENDING GROWTH CAP ACT
SECTION 250. DEFINITIONS.
        251. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
        252. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
  S 250. 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.
              

                                                           LBD03650-01-3

A. 1367                             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 251. 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 252. 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
amended by section 17 of part U of chapter 59 of the laws  of  2012,  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. At the request of the  director  of  the  budget,  the
state comptroller shall transfer monies to the rainy day reserve fund up
to  and including an amount equivalent to three-tenths of one per centum
of the aggregate amount projected to be disbursed from the general  fund
during the then-current fiscal year, unless such transfer would increase
the rainy day reserve fund to an amount in excess of three per centum of
the  aggregate  amount  projected  to be disbursed from the general fund
during the fiscal year immediately  following  the  then-current  fiscal
year,  in  which  event such transfer shall be limited to such amount as

A. 1367                             3

will increase the rainy day reserve fund to such three per centum  limi-
tation.
  S 3. 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 4. This act shall take effect immediately; provided that the  amend-
ments to subdivision 2 of section 92-cc of the state finance law made by
section two of this act shall be subject to the expiration and reversion
of  such subdivision when upon such date the provisions of section three
of this act shall take effect.