NY State Senate Bill 2025-S1296

Current 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 09, 2025	referred to finance

co-Sponsors

2025-S1296 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Add Art 17 §§244 - 246, St Fin L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5916
2011-2012: S716
2013-2014: S3770
2015-2016: S5507
2017-2018: S365
2019-2020: S7622
2021-2022: S1756
2023-2024: S681

2025-S1296 (ACTIVE) - Summary

Establishes an annual spending growth cap.

2025-S1296 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1296

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the state finance law, in relation to establishing a
spending cap

 
PURPOSE:

This legislation will cap the growth of state spending and increase the
allowable reserve of the rainy-day fund.

 
SUMMARY OF PROVISIONS:

Section one of the bill would amend the State Finance Law ("SFL") to add
a new Article 17, establishing a state spending cap.

*New SFL § 244 sets for 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 will 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 if 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 within the control of the Executive or working with the
Legislature to enact 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 a two-thirds super majority ,a budget containing a percent-
age 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.

 
EXISTING LAW:

SFL S 92-cc (2) establishes a maximum balance in the rainy-day reserve
fund of three percent of the aggregate amount projected to be disbursed
annually from the General Fund.

 
JUSTIFICATION:

State government spending has grown substantially in recent years espe-
cially in good economic times. Such growth has forced the State to take
drastic actions to stabilize; its finances when revenues decline dramat-
ically 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. 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 surpluses that accrue as a result of this cap can be
used to help address revenue declines during times of economic difficul-
ty.

If 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 2.6 percent. Additionally, 2007-08 State Operating Funds spend-
ing would have totaled $60.0 billion - $17.0 billion lower than actual
results.

 
LEGISLATIVE HISTORY:

2024: S681/A5893 Referred to Finance

2023: S681/A5893 Referred to Finance

2022: S.1756 Referred to Finance

2020: S.7622 Referred to Finance

2018 S.365 Passed Senate

2017 S.365 Passed Senate

2016 S.5507 Passed Senate

2015 S.5507 Referred to Finance

2014 S.3770 Referred to Rules.

2013 S.3770 Passed Senate

2012 S.716 Passed Senate

2011 S.716 Passed Senate

2010 S.5916 Referred to Finance

2009 S.5916 Referred to Rules

 
FISCAL IMPLICATIONS:

To Be Determined

 
EFFECTIVE DATE:
30 days after it shall have become law.

2025-S1296 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1296
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2025
                                ___________
 
 Introduced  by  Sens. BORRELLO, CANZONERI-FITZPATRICK, LANZA, OBERACKER,
   O'MARA -- 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 establishing a
   spending cap

   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
                      ANNUAL SPENDING GROWTH CAP ACT
 SECTION 244. DEFINITIONS.
         245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
         246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
   § 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 OR TWO PERCENT, WHICHEVER IS LESS.
   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.
                                                            LBD01635-01-5
 S. 1296                             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.
   § 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 THEIR EXECUTIVE BUDG-
 ET,  THE  GOVERNOR  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.
   § 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.  1. UPON A FIND-
 ING OF AN EMERGENCY BY THE GOVERNOR, THE GOVERNOR MAY DECLARE  AN  EMER-
 GENCY  BY  AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH
 DECLARATION.
   2. BASED UPON SUCH DECLARATION,  THE  GOVERNOR  MAY  SUBMIT,  AND  THE
 LEGISLATURE  MAY  AUTHORIZE,  BY  A  TWO-THIRDS  SUPERMAJORITY, A BUDGET
 CONTAINING A PERCENTAGE INCREASE OVER THE PRIOR  FISCAL  YEAR  IN  STATE
 OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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Senate Bill S1296

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

co-Sponsors

2025-S1296 (ACTIVE) - Details

2025-S1296 (ACTIVE) - Summary

2025-S1296 (ACTIVE) - Sponsor Memo

2025-S1296 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1296

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Sponsored By

George M. Borrello

Current Bill Status - In Senate Committee Finance Committee

co-Sponsors

Patricia Canzoneri-Fitzpatrick

Andrew J. Lanza

Peter Oberacker

Thomas F. O'Mara

2025-S1296 (ACTIVE) - Details

2025-S1296 (ACTIVE) - Summary

2025-S1296 (ACTIVE) - Sponsor Memo

2025-S1296 (ACTIVE) - Bill Text download pdf

Comments