S T A T E O F N E W Y O R K
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9789--A
I N A S S E M B L Y
February 11, 2020
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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:
Section 1. Section 25 of the general municipal law, as added by chap-
ter 406 of the laws of 2019, is amended to read as follows:
§ 25. Treatment of capital costs and [restricted] CERTAIN fund
balances OF THE CITY OF NEW YORK; REVENUE STABILIZATION FUND OF SUCH
CITY. Notwithstanding the provisions of any general or special state
law or local law to the contrary, including but not limited to the New
York city charter, the following shall apply with respect to the budget
and accounts of the city of New York:
1. All costs that would be capital costs in accordance with generally
accepted accounting principles, but for the application of governmental
accounting standards board statement number forty-nine, shall be deemed
to be capital costs for purposes of this chapter and any other provision
of state or local law, including but not limited to the New York city
charter, relevant to the treatment of such costs; [and]
2. The determination as to the existence of a deficit pursuant to the
New York state financial emergency act for the city of New York, while
such act remains in effect, and any other provision of state or local
law, including but not limited to the New York city charter, shall be
made without regard to changes in restricted fund balances, as defined
by the governmental accounting standards board, where restrictions in
relation to such fund balances are imposed by state or federal law or
regulation, or otherwise by private or governmental parties other than
the city of New York, and without regard to funds held in the health
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
ANY REVENUE STABILIZATION FUND ESTABLISHED PURSUANT TO SECTION FIFTEEN
HUNDRED TWENTY-EIGHT OF THE NEW YORK CITY CHARTER and the management
benefits fund established by the city of New York. DEPOSITS INTO ANY
SUCH REVENUE STABILIZATION FUND SHALL BE DEEMED TO BE EXPENSES OF SUCH
CITY FOR ALL PURPOSES IN THE FISCAL YEAR DURING WHICH SUCH DEPOSITS ARE
MADE, AND WITHDRAWALS FROM SUCH FUND SHALL BE DEEMED TO BE REVENUES OF
SUCH CITY FOR ALL PURPOSES IN THE FISCAL YEAR DURING WHICH SUCH WITH-
DRAWALS ARE MADE; PROVIDED HOWEVER, THAT SURPLUSES OF SUCH CITY, WHETHER
ACCUMULATED FROM FISCAL YEARS ENDING PRIOR TO THE EFFECTIVE DATE OF THE
CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY THAT AMENDED THIS SUBDIVISION
OR EXISTING AT THE CLOSE OF ANY FISCAL YEAR ENDING AFTER SUCH EFFECTIVE
DATE, SHALL BE DEPOSITED INTO SUCH REVENUE STABILIZATION FUND AS SOON AS
PRACTICABLE, AND SUCH DEPOSITS SHALL NOT BE DEEMED EXPENSES OF THE CITY
IN THE FISCAL YEARS DURING WHICH SUCH DEPOSITS ARE MADE; AND
3. THE CITY OF NEW YORK MAY ESTABLISH AND MAINTAIN A REVENUE STABILI-
ZATION FUND PURSUANT TO SECTION FIFTEEN HUNDRED TWENTY-EIGHT OF THE NEW
YORK CITY CHARTER. EXCEPT AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION
WITH RESPECT TO SURPLUSES, DEPOSITS INTO AND WITHDRAWALS FROM SUCH FUND
MAY BE MADE BY MEANS OF THE PROCEDURES SET FORTH IN SUCH CHARTER FOR
ADOPTION OR MODIFICATION OF THE EXPENSE BUDGET OF SUCH CITY, AS APPLICA-
BLE, PROVIDED THAT NO MORE THAN FIFTY PERCENT OF THE TOTAL AMOUNT OF
SUCH FUND MAY BE WITHDRAWN IN ANY FISCAL YEAR UNLESS THE MAYOR HAS
CERTIFIED THAT THERE IS A COMPELLING FISCAL NEED, WHICH MAY BE BASED ON
CIRCUMSTANCES INCLUDING, BUT NOT BE LIMITED TO, A NATIONAL OR REGIONAL
RECESSION, A REDUCTION IN TOTAL REVENUES FROM THE PRECEDING FISCAL YEAR
AS PROJECTED IN THE FINANCIAL PLAN OF THE CITY OF NEW YORK, A NATURAL OR
OTHER DISASTER, OR A DECLARED STATE OF EMERGENCY IN THE CITY OF NEW YORK
OR THE STATE OF NEW YORK. THE AUTHORITY TO ESTABLISH A REVENUE STABILI-
ZATION FUND SET FORTH IN THIS SUBDIVISION SHALL BE IN ADDITION TO ANY
OTHER AUTHORIZATION SET FORTH IN THIS ARTICLE OR OTHER APPLICABLE LAW.
§ 2. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
868 of the laws of 1975, constituting the New York state financial emer-
gency act for the city of New York, as amended by chapter 406 of the
laws of 2019, is amended to read as follows:
a. For its fiscal years ending June thirtieth, nineteen hundred seven-
ty-nine through June thirtieth, nineteen hundred eighty-one, the city's
budget covering all expenditures other than capital items shall be
prepared and balanced so that the results thereof would not show a defi-
cit when reported in accordance with the accounting principles set forth
in the state comptroller's uniform system of accounts for munici-
palities, as the same may be modified by the comptroller, in consulta-
tion with the city comptroller, for application to the city; subject to
the provision of subdivision four of section three thousand thirty-eight
of the public authorities law with respect to contributions by the city
or other public employer to any retirement system or pension fund and
subject to the provision of paragraph (c) of subdivision five of section
three thousand thirty-eight of the public authorities law with respect
to expense items included in the capital budget of the city. For the
fiscal year ending June thirtieth, nineteen hundred eighty-two, and for
each fiscal year thereafter, the city's budget covering all expenditures
other than capital items shall be prepared and balanced so that the
results thereof would not show a deficit when reported in accordance
with generally accepted accounting principles and would permit compar-
ison of the budget with the report of actual financial results prepared
in accordance with generally accepted accounting principles. With
respect to financial plans that include the fiscal years ending June
A. 9789--A 3
thirtieth, nineteen hundred seventy-nine through June thirtieth, nine-
teen hundred eighty-one, the city's budget covering all expenditures
other than capital items shall be prepared in accordance with generally
accepted accounting principles and there shall be substantial progress
in each such fiscal year towards achieving a city budget covering all
expenditures other than capital items the results of which would not
show a deficit when reported in accordance with generally accepted
accounting principles. The city shall eliminate expense items from its
capital budget not later than the commencement of the fiscal year ending
June thirtieth, nineteen hundred eighty-two. For the fiscal year ending
June thirtieth, nineteen hundred eighty-nine, and for each fiscal year
thereafter, the budgets covering all expenditures other than capital
items of each of the covered organizations shall be prepared and
balanced so that the results thereof would not show a deficit when
reported in accordance with generally accepted accounting principles;
and for each fiscal year prior thereto, there shall be substantial
progress towards such goal. Notwithstanding the foregoing and the
provisions of any general or special state law or local law to the
contrary, including but not limited to the New York city charter: (i)
all costs that would be capital costs in accordance with generally
accepted accounting principles, but for the application of governmental
accounting standards board statement number forty-nine, shall be deemed
to be capital costs for purposes of this act and any other provision of
state or local law, including but not limited to the New York city char-
ter, relevant to the treatment of such costs; and (ii) the determination
as to the existence of a deficit pursuant to this act and any other
provision of state or local law, including but not limited to the New
York city charter, shall be made without regard to changes in restricted
fund balances, as defined by the governmental accounting standards
board, where restrictions in relation to such fund balances are imposed
by state or federal law or regulation, or otherwise by private or
governmental parties other than the city of New York, and without regard
to funds held in the health stabilization fund, the school crossing
guards health insurance fund, ANY REVENUE STABILIZATION FUND ESTABLISHED
PURSUANT TO SECTION FIFTEEN HUNDRED TWENTY-EIGHT OF THE NEW YORK CITY
CHARTER and the management benefits fund established by the city of New
York. DEPOSITS INTO ANY SUCH REVENUE STABILIZATION FUND SHALL BE DEEMED
TO BE EXPENSES OF SUCH CITY IN THE FISCAL YEAR IN WHICH SUCH DEPOSITS
ARE MADE, AND WITHDRAWALS FROM SUCH FUND SHALL BE DEEMED TO BE REVENUES
OF SUCH CITY IN THE YEAR IN WHICH SUCH WITHDRAWALS ARE MADE; PROVIDED
HOWEVER, THAT SURPLUSES OF SUCH CITY, WHETHER ACCUMULATED FROM FISCAL
YEARS ENDING PRIOR TO THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF
TWO THOUSAND TWENTY THAT AMENDED THIS PARAGRAPH OR EXISTING AT THE CLOSE
OF ANY FISCAL YEAR ENDING AFTER SUCH EFFECTIVE DATE, SHALL BE DEPOSITED
INTO SUCH REVENUE STABILIZATION FUND AS SOON AS PRACTICABLE, AND SUCH
DEPOSITS SHALL NOT BE DEEMED EXPENSES OF THE CITY IN THE FISCAL YEAR IN
WHICH SUCH DEPOSITS ARE MADE.
§ 3. This act shall take effect immediately.