SEN. FARLEY REPORTS SENATE PASSES A STATE SPENDING CAP TO ENSURE FISCAL DISCIPLINE

State Senator Hugh T. Farley (R, C, I – Schenectady) announced that he and his colleagues in the New York State Senate today passed legislation that would permanently cap state spending, codifying the self-imposed spending restraint demonstrated with the past five state budgets enacted by the Legislature and Governor. The bill (S5507) would limit state spending to a three-year rolling average of inflation. This approach would help end the historic pattern of “boom and bust” cycle budgeting, impose greater fiscal discipline on state government, and continue providing significant savings for taxpayers.

The bill would take effect in the 2017 Fiscal Year. When applying the actual and projected rates of inflation for 2014 (1.6%), 2015 (0.2%), and 2016 (2%), the three year rolling average spending cap for 2017 would be 1.27%. This bill would then result in an expected savings of $12.8 billion for the state’s spending plans in Fiscal Years 2017 through 2019.

The self-imposed state spending cap saved taxpayers nearly $23 billion on a cumulative basis since the 2010-2011 budget.

New York State is now on much stronger fiscal footing and, in contrast with the excessive spending of the past, has enacted budgets that create a surplus. This bill would ensure the fiscal restraint would permanently continue in the state’s budgeting process.

The bill will be sent to the Assembly.