NY State Senate Bill 2019-S560

Senate Bill S560

2019-2020 Legislative Session

Enacts the "over-expenditure, under-expenditure, transfer notification (OUT) act" to provide for the use of surplus appropriated funds and over-expenditure approval

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance 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
Jan 08, 2020	referred to finance
Jan 09, 2019	referred to finance

2019-S560 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Add §53-e, St Fin L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S4141
2021-2022: S218
2023-2024: S97
2025-2026: S476

2019-S560 (ACTIVE) - Summary

Enacts the "over-expenditure, under-expenditure, transfer notification (OUT) act" to provide for the use of surplus appropriated funds and over-expenditure approval.

2019-S560 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S560

SPONSOR: TEDISCO
 
TITLE OF BILL:  An act to amend the state finance law, in relation to
enacting the "over-expenditure, under-expenditure, transfer notification
(OUT) act"

 
PURPOSE:

Requires that the Comptroller be immediately notified of any over-expen-
diture of taxpayer monies and that all leftover funds are allocated to
the general fund to pay down debt.

 
SUMMARY OF PROVISIONS:

Section 1: Cites the act as the "over-expenditure, under-expenditure,
transfer-notification (OUT) act."

Section 2: Amends the state finance law by adding a new section 53-e.

Section 53-e(1): Defines the terms of "state agencies" and "surplus

appropriated funds."

Section 53-e(2): Surplus Appropriated Funds; On April 1st, if a state
agency has a surplus of appropriated funds, the Governor, the Comp-
troller and the Legislature must be notified of the surplus and its
amount prior to April 15th. Once notified, the Governor, the Comptroller
and the Legislature must act on the surplus before May 31st. These enti-
ties may allow the state agency to use the money as they see fit or
transfer the funds to another state agency. Any appropriations proposed
to transfer surplus funds must first be approved by the Comptroller.
Failure to act on the surplus funds will result in the funds being
transferred to the General Fund.

Section 53-e(3): All state agencies must notify the Governor, Comp-
troller and the Legislature if they intend to overspend their budget
before taking such an action. The Governor and Legislature may then
enact legislation allowing such expenditures. Legislation must be
approved by the Comptroller.

 
JUSTIFICATION:

Often times, a state agency will have a small amount of money left over
at the end of the year and unilaterally go on a last minute spending
binge. Pretty soon this impulse spending adds up to big dollars.

The $168.2 billion New York State budget is really an amalgamation of
hundreds if not thousands of smaller state agency budgets. In fact:
there are more than 70 state agencies, 64 colleges in the State Univer-
sity of New York system and 20 .City University of New York campuses.

This is on top of the scores of public authorities that have little
oversight by the legislature or executive branch. Each of these entities
can be divided into smaller agencies, bureaus and departments each with
their own little budget.

Often times state agencies fear that if they come in under-budget
they'll face steep cuts in funding for the following year. It must be
established that State agencies that are fiscally-responsible and spend
only what they have been authorized to spend should be commended, not
penalized.

The O.U.T. (Over-Expenditure/Under-Expenditure/Transfer-Notification) of
Debt Act aims to prevent future attempts to empty agency their coffers
at the end of the year to justify their budgets. This act would put a
check to this practice.

This legislation would require that all leftover funds are allocated to
the general fund to pay down debt or reduce the tax burden on our citi-
zens. If state agencies fail to comply, the Comptroller would be
mandated to cancel any unapproved over-expenditures/under-expenditures
or transfers. State agencies do not need to spend taxpayer money on
additional spending for the simple reason that there is still cash in
the account.

If it's important enough to spend tax dollars at the last minute then
it's important enough to get authorization from the elected officials
that actually pass the budget. This is the taxpayers' money and should
be returned to help payoff state debt and reduce property taxes.

This bill won't erase New York's deficit on its own, but it will provide
the kind of spending transparency the state needs to help get out of
debt and save taxpayers from getting fleeced by end-of-year spending
sprees.

 
LEGISLATIVE HISTORY:

02/03/17: 5.4141 REFERRED TO FINANCE
01/03/18: 5.4141 REFERRED TO FINANCE

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act will take effect immediately.

2019-S560 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    560
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance  law,  in  relation  to  enacting  the
   "over-expenditure, under-expenditure, transfer notification (OUT) act"

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the  "over-expenditure,  under-expenditure,  transfer notification (OUT)
 act".
   § 2. The state finance law is amended by adding a new section 53-e  to
 read as follows:
   §  53-E.  SURPLUS  APPROPRIATED FUNDS; OVER-EXPENDITURE APPROVAL.   1.
 DEFINITIONS. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   A. "STATE AGENCY" SHALL MEAN  ANY  STATE  DEPARTMENT,  BOARD,  BUREAU,
 DIVISION, COMMISSION, COMMITTEE, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPO-
 RATION,  COUNCIL,  OFFICE,  OR  OTHER  GOVERNMENTAL  ENTITY PERFORMING A
 GOVERNMENTAL OR PROPRIETARY FUNCTION FOR THE STATE; AND
   B. "SURPLUS APPROPRIATED FUNDS" SHALL MEAN THE AMOUNT OF FUNDS  APPRO-
 PRIATED TO A STATE AGENCY IN A FISCAL YEAR REDUCED BY THE TOTAL EXPENDI-
 TURES  BY  SUCH  STATE  AGENCY FOR SUCH FISCAL YEAR, BUT SUCH TERM SHALL
 ONLY APPLY TO AMOUNTS OF FUNDS GREATER THAN ZERO.
   2. SURPLUS APPROPRIATED FUNDS. A. NOTWITHSTANDING ANY OTHER  PROVISION
 OF  LAW,  ANY STATE AGENCY WHICH ON APRIL FIRST HAS SURPLUS APPROPRIATED
 FUNDS SHALL, ON OR BEFORE APRIL  FIFTEENTH  OF  SUCH  YEAR,  NOTIFY  THE
 GOVERNOR,  THE  COMPTROLLER  AND  THE  LEGISLATURE  THAT SUCH AGENCY HAS
 SURPLUS APPROPRIATED FUNDS AND THE AMOUNT OF SUCH SURPLUS. UPON  RECEIPT
 OF SUCH NOTIFICATION, THE LEGISLATURE AND THE GOVERNOR MAY, ON OR BEFORE
 MAY  THIRTY-FIRST  OF  SUCH  YEAR, ENACT LEGISLATION PROVIDING THAT SUCH
 SURPLUS APPROPRIATED FUNDS MAY BE USED BY SUCH STATE  AGENCY  OR  TRANS-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD05182-01-9

 S. 560                              2
 
 FERRED  TO  ANOTHER STATE AGENCY OR BOTH. SUCH LEGISLATION SHALL CLEARLY
 SET FORTH THE PARTICULAR PURPOSE OR  PURPOSES  FOR  WHICH  SUCH  SURPLUS
 APPROPRIATED FUNDS SHALL BE USED OR TRANSFERRED. ANY LEGISLATION ENACTED
 PURSUANT TO THIS SUBDIVISION SHALL CONTAIN A CONDITION THAT SUCH SURPLUS
 APPROPRIATED  FUNDS  SHALL  NOT BE USED AS SET FORTH IN SUCH LEGISLATION
 WITHOUT THE APPROVAL OF THE STATE COMPTROLLER.
   B. ON OR BEFORE JUNE THIRTIETH  OF  SUCH  YEAR,  THE  COMPTROLLER  MAY
 APPROVE  THE  USE OR TRANSFER OF FUNDS PROVIDED FOR IN THIS SUBDIVISION.
 IF THE COMPTROLLER FAILS TO APPROVE SUCH USE OR  TRANSFER  OF  FUNDS  BY
 JUNE  THIRTIETH  OF  SUCH YEAR, SUCH SURPLUS APPROPRIATED FUNDS SHALL BE
 TRANSFERRED TO THE GENERAL FUND AND SHALL BE USED FOR THE  SOLE  PURPOSE
 OF REDUCING DEBT OF THE STATE.
   C.  ANY  SURPLUS  APPROPRIATED FUNDS FOR WHICH THE LEGISLATURE AND THE
 GOVERNOR FAIL TO ENACT LEGISLATION PROVIDING FOR THE USE OR TRANSFER  OF
 SUCH  FUNDS  SHALL  BE TRANSFERRED TO THE GENERAL FUND AND SHALL BE USED
 FOR THE SOLE PURPOSE OF REDUCING DEBT OF THE STATE.
   3. OVER-EXPENDITURE APPROVAL. NOTWITHSTANDING ANY OTHER  PROVISION  OF
 LAW,  ANY  STATE AGENCY WHICH FOR ANY REASON INTENDS TO EXPEND FUNDS FOR
 ANY PURPOSE IN ANY FISCAL YEAR IN AN AMOUNT GREATER THAN AMOUNTS  APPRO-
 PRIATED  TO  SUCH  AGENCY  FOR  SUCH  FISCAL  YEAR, SHALL, PRIOR TO SUCH
 EXPENDITURE, NOTIFY THE GOVERNOR, THE COMPTROLLER  AND  THE  LEGISLATURE
 REGARDING SUCH INTENTION WITH A DETAILED EXPLANATION OF WHY SUCH EXPEND-
 ITURE  IS  NECESSARY. UPON RECEIPT OF SUCH NOTIFICATION, THE LEGISLATURE
 AND THE GOVERNOR MAY ENACT LEGISLATION PROVIDING  FOR  AN  APPROPRIATION
 FOR  SUCH  EXPENDITURE.  SUCH  LEGISLATION  SHALL  CLEARLY SET FORTH THE
 PARTICULAR PURPOSE OR PURPOSES FOR WHICH SUCH APPROPRIATION IS MADE. ANY
 LEGISLATION ENACTED PURSUANT TO THIS SUBDIVISION SHALL CONTAIN A  CONDI-
 TION  THAT  SUCH FUNDS SHALL NOT BE APPROPRIATED WITHOUT THE APPROVAL OF
 THE STATE COMPTROLLER.
   § 3. This act shall take effect immediately.

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