S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4845
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 23, 2023
                                ___________
 
 Introduced  by  M.  of A. BARCLAY, FITZPATRICK, BLANKENBUSH, NORRIS, RA,
   PALMESANO,  BRABENEC,  SMITH,  MIKULIN,  SMULLEN,  MILLER,  MANKTELOW,
   WALSH,  SIMPSON,  LEMONDES,  JENSEN,  J. M. GIGLIO,  TAGUE,  SLATER --
   Multi-Sponsored by -- M. of A. K. BROWN, DiPIETRO,  FRIEND,  GALLAHAN,
   GOODELL,  HAWLEY, THIELE -- 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.
   § 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
 STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO
 THE PRIOR CALENDAR YEAR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06036-01-3
 A. 4845                             2
 
   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.
   § 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.
   § 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.
   § 2. Subdivision 2 of section 92-cc  of  the  state  finance  law,  as
 amended  by section 26 of part FFF of chapter 56 of the laws of 2022, is
 amended to read as follows:
   2. Such fund shall have a maximum  balance  not  to  exceed  [fifteen]
 TWENTY 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. 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 per centum of the aggre-
 gate 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 [fifteen] TWENTY  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
 will increase the rainy day reserve fund to such  [fifteen]  TWENTY  per
 centum limitation.
   § 3. This act shall take effect immediately.