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                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 7615                                                 A. 11702
 
                SENATE - ASSEMBLY
 
                                      June 19, 2004
                                       ___________
 
        IN  SENATE -- Introduced by COMMITTEE ON RULES -- read twice and ordered
          printed, and when printed to be committed to the Committee on Rules
 
        IN ASSEMBLY -- Introduced  by  COMMITTEE  ON  RULES  --  read  once  and
          referred to the Committee on Ways and Means
 
        AN  ACT  to  amend  the state finance law, in relation to establishing a

          procedure for the implementation of a contingency budget; to amend the
          state finance law, in relation to  appropriations  for  the  education
          department  for  elementary,  secondary  and  continuing education; to
          amend the state finance law, in relation to  submission  of  financial
          plans;  to amend the state finance law, in relation to requiring sepa-
          rate schedules; to amend the state finance law, in relation to  multi-
          year  financial  plan  changes;  to  amend  the  state finance law, in
          relation to additional debt reporting; to amend the state finance law,
          in relation to revisions of financial plans  and  capital  improvement
          programs;  to amend the state finance law, in relation to establishing
          earlier time frames for certain actions  (quickstart);  to  amend  the
          state  finance law, in relation to creating the health care reform act

          (HCRA) fund; to amend the  state  finance  law,  in  relation  to  the
          reporting  of journal voucher transactions; to amend the state finance
          law, the tax law, the parks, recreation and historic preservation law,
          the labor law and the retirement and social security law, in  relation
          to changing the fiscal year; to amend the legislative law, in relation
          to creating the New York state independent budget office; to amend the
          state finance law, in relation to information technology reporting; to
          amend the state finance law, in relation to financial plan revision by
          the  executive; to amend the state finance law, in relation to the tax
          stabilization reserve fund and establishing the  fiscal  stabilization
          reserve  fund;  and  to  amend the state finance law, in relation to a
          current services budget
 

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  state finance law is amended by adding a new section
     2  24-a to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD18492-01-4
        S. 7615                             2                           A. 11702
 
     1    § 24-a. Contingency budget. 1. A contingency budget shall take  effect
     2  on the first day of the fiscal year in the event the legislature has not
     3  finally acted upon all the appropriation bills submitted by the governor

     4  for  such  fiscal year and shall be sufficient for the ongoing operation
     5  and  support of state government and local assistance.  Such contingency
     6  budget shall take effect without further action by  the  legislature  or
     7  the governor, and shall remain in effect until both houses of the legis-
     8  lature  pass  a  single  multiple  appropriation  bill which alters such
     9  contingency budget.  Passage by both houses of the legislature  of  such
    10  multiple  appropriation  bill  shall  constitute  the  conclusion of the
    11  contingency period.
    12    2. The contingency budget shall authorize the renewal of the appropri-
    13  ations and reappropriations enacted for the immediately preceding fiscal
    14  year. Such appropriations  and  reappropriations,  in  addition  to  any

    15  related  statutory spending and revenue provisions in effect during such
    16  year, shall remain in effect for the  same  period  as  the  contingency
    17  budget remains effective.
    18    3.  (a)  The  aggregate disbursements authorized by appropriations and
    19  reappropriations in the contingency budget for such  fiscal  year  shall
    20  not  exceed  aggregate  disbursements  made in the immediately preceding
    21  fiscal year, provided further that disbursements authorized by  individ-
    22  ual items of appropriation and reappropriation in the contingency budget
    23  shall  not exceed disbursements made for such individual items of appro-
    24  priation and reappropriation in the immediately preceding  fiscal  year,
    25  with the following exceptions:

    26    (i)  payments  related  to  public  assistance grants under the family
    27  assistance, safety net and disability  assistance  programs  established
    28  pursuant  to  chapter  four  hundred  thirty-six of the laws of nineteen
    29  hundred ninety-seven, and for  emergency  assistance  for  families  and
    30  payments  for  eligible  aged,  blind  and  disabled  persons related to
    31  supplemental security income;
    32    (ii) federal funds for which receipt would be jeopardized  or  federal
    33  law would be violated if subject to such disbursement limitation; and
    34    (b)  The  contingency budget shall not authorize disbursements for the
    35  contingency period for any:
    36    (i) spending related to prior year appropriations or  reappropriations

    37  for items which were one-time or non-recurring in nature; or
    38    (ii)  new  contracts  that  are  not  for  the continuation of ongoing
    39  services or capital projects; or
    40    (iii) trend factors, cost of living adjustments or other rate  adjust-
    41  ments  that would otherwise automatically become effective, except those
    42  required by federal law.
    43    (c) No law changing the exceptions contained in paragraph (a)  or  (b)
    44  of this subdivision may become effective until three years from the date
    45  of its enactment.
    46    4.  If,  after a contingency budget becomes effective, the independent
    47  budget office projects that annual receipts  are  insufficient  to  meet
    48  annual  disbursements  under  the contingency budget, uniform reductions

    49  shall be applied to all disbursements other than those included in para-
    50  graph (a) of subdivision three of this section in  order  to  achieve  a
    51  balanced  plan  of  receipts and disbursements. Such reductions shall be
    52  applied not later than the thirtieth day that the contingency budget  is
    53  in  effect,  except  where  federal or other notification is required to
    54  effectuate a reduction, in which case such notification shall be made no
    55  later than the thirtieth day after the contingency budget is  in  effect
    56  and  the  related  reduction  shall  take  effect  as soon thereafter as
        S. 7615                             3                           A. 11702
 
     1  allowed. No reduction implemented under this subdivision shall alter any

     2  eligibility provision for any program.
     3    §  2.  Subdivisions 1, 2 and 3 of section 40 of the state finance law,
     4  as amended by chapter 169 of the laws of 1994, are amended  to  read  as
     5  follows:
     6    1.  The  budget  and  the budget bills submitted by the governor shall
     7  include all appropriations which in the opinion of the governor will  be
     8  required  during the full succeeding fiscal year.  In the case of appro-
     9  priations for the general  support  of  public  schools  and  the  state
    10  lottery  fund, the budget and the budget bills submitted by the governor
    11  shall include all appropriations  for  the  general  support  of  public
    12  schools  and the state lottery fund which in the opinion of the governor
    13  will be required during the next full fiscal year following the succeed-

    14  ing fiscal year, and  any  additional  appropriations  for  the  general
    15  support  of  public schools which in the opinion of the governor will be
    16  required during the full succeeding fiscal year above, at or  below  the
    17  amounts  appropriated for such purposes in the current fiscal year. Such
    18  appropriations shall be proposed  as  separate  appropriations  applying
    19  individually  to  the  succeeding  fiscal  year  and the next succeeding
    20  fiscal year.
    21    2. (a) No appropriation made at a regular session of  the  legislature
    22  shall,  unless  the  contrary  is expressly provided in the act by which
    23  such appropriation is made, be available prior to  the  commencement  of
    24  the  fiscal  year  for  which the budget is adopted at such session, and

    25  every appropriation made at such session, except as  provided  in  para-
    26  graphs  (b), (d), and (e) of this subdivision, shall cease to have force
    27  and effect, except as to liabilities already incurred thereunder, at the
    28  close of [such] the fiscal year in which such appropriation shall  first
    29  become available.
    30    (b)  Every  deficiency  appropriation made at a regular session of the
    31  legislature which by the express terms of the act by which  such  appro-
    32  priation  is  made  shall  be available prior to the commencement of the
    33  fiscal year for which the budget is adopted at such session shall  cease
    34  to  have  force  and  effect,  except as to liabilities already incurred
    35  thereunder, at the close of the fiscal year in which such  appropriation
    36  shall become available.

    37    (c) Every appropriation made at an extraordinary session of the legis-
    38  lature  shall,  unless  the contrary is expressly provided in the act by
    39  which such appropriation is made,  be  available  immediately  upon  the
    40  taking  effect  of  such  act  and shall cease to have force and effect,
    41  except as to liabilities already incurred thereunder, at  the  close  of
    42  the fiscal year in which such appropriation shall become available.
    43    (d)  Every  appropriation  enacted  in  the  fund type special revenue
    44  funds-federal for a grant period which  extends  beyond  [March  thirty-
    45  first]  April  thirtieth  of the fiscal year in which the appropriations
    46  are enacted shall be available  for  liabilities  incurred  during  such
    47  grant period after such [March thirty-first] April thirtieth date.

    48    (e) All state operations appropriations made to the city university of
    49  New  York and the state university of New York shall cease to have force
    50  and effect, except as to liabilities already incurred thereunder, as  of
    51  the  thirtieth  day  of June immediately following the state fiscal year
    52  for which they are enacted.
    53    3. Every appropriation for whatever purpose which at the close of  the
    54  fiscal  year  in  which such appropriation shall first become available,
    55  shall cease to have force and effect except as  to  liabilities  already
    56  incurred  thereunder  shall as to such liabilities continue in force and
        S. 7615                             4                           A. 11702
 
     1  effect until the dates specified in paragraphs (a), (b), (c) and (d)  of
     2  this  subdivision,  on which dates such appropriation shall lapse and no

     3  money shall thereafter be paid out of the state treasury or any  of  its
     4  funds  or  any of the funds under its management pursuant to such appro-
     5  priation.
     6    (a) Except for appropriations made to the city university of New  York
     7  and  the  state  university  of New York, all state operations appropri-
     8  ations including special revenue funds-federal appropriations  continued
     9  pursuant to paragraph (d) of subdivision two of this section shall lapse
    10  on the [thirtieth] thirty-first day of [June] July immediately following
    11  the  close  of  the  fiscal  year.  The  appropriations made to the city
    12  university of New York or the state university of New York  shall  lapse
    13  on the thirtieth day of September immediately following the close of the
    14  fiscal year.
    15    (b)  All  aid  to  localities appropriations including special revenue

    16  funds-federal appropriations continued  pursuant  to  paragraph  (d)  of
    17  subdivision  two  of  this  section  shall lapse on the fifteenth day of
    18  [September] October immediately following the close of the fiscal year.
    19    (c) All capital projects appropriations shall lapse on  the  fifteenth
    20  day of [September] October immediately following the close of the fiscal
    21  year.
    22    (d)  All  other  appropriations  shall  lapse  on the fifteenth day of
    23  [September] October immediately following the close of the fiscal year.
    24    § 3. Paragraph d-2 of subdivision 3 of section 22 of the state finance
    25  law, as amended by chapter 260 of the laws of 1993, is amended  to  read
    26  as follows:
    27    d-2.  Within  ten days following the submission of the financial plans

    28  presented in accordance with subdivisions one and two of  this  section,
    29  the  director  of  the  budget  shall  submit to the comptroller and the
    30  chairs of the senate finance committee and the assembly ways  and  means
    31  committee:
    32    (i)  a  detailed  schedule  by  fund of the receipts and disbursements
    33  comprising such summary financial plan, and
    34    (ii) a schedule for each governmental fund type other than the general
    35  fund showing the differences between projected operating  results  on  a
    36  cash basis and those on the basis of generally accepted accounting prin-
    37  ciples, and
    38    (iii)  a detailed schedule by fund of revenues and expenditures within
    39  the general fund, and
    40    (iv) a detailed schedule by fund of receipts for  the  prior,  current

    41  and  next  ensuing  fiscal  years  shown by each major revenue category,
    42  including each individual tax, each individual component part of miscel-
    43  laneous receipts, and each revenue source which accounts  for  at  least
    44  one-half of one percent of all receipts within each fund type, and
    45    (v) an itemized list of transfers to and from each fund.
    46    §  4.  Paragraph e of subdivision 3 of section 22 of the state finance
    47  law, as amended by chapter 762 of the laws of 1992, is amended  to  read
    48  as follows:
    49    e.  The  anticipated  general  fund quarterly schedule and fiscal year
    50  total for the prior, current and next ensuing fiscal  [year]  years  of:
    51  disbursements;  receipts; repayments of advances; total tax refunds; and

    52  refunds for the tax imposed under article twenty-two  of  the  tax  law.
    53  Such  information  shall  be  presented  in the same form as the summary
    54  financial plans presented in accordance with subdivisions one and two of
    55  this section.  A separate, detailed, report of such  schedule  shall  be
    56  provided  with  receipts shown by each major revenue category, including
        S. 7615                             5                           A. 11702
 
     1  each individual tax, each individual  component  part  of  miscellaneous
     2  receipts,  and  each revenue source which accounts for at least one-half
     3  of one per centum of  all  receipts  within  each  fund  type  and  with
     4  disbursements shown by major agency or major spending item.

     5    The  director  of  the  division of the budget shall submit concurrent
     6  with the submission of the financial plan to the legislature pursuant to
     7  subdivision two of this section and with each update thereafter a sched-
     8  ule of actual and planned disbursements by month and by fund type  stat-
     9  ing  separately  and  distinctly  variances between actual and projected
    10  disbursements for the most recent practicable month and previous  twelve
    11  months.  Such report shall document actual and projected state disburse-
    12  ments inclusive of, and distinctly stated by categories of local assist-
    13  ance grants including general purpose, education, social services, medi-
    14  caid, health and environment, mental hygiene,  transportation,  criminal

    15  justice and miscellaneous; by departmental operations including personal
    16  services  and  non-personal  services;  by general state charges; and by
    17  debt service payments. Such reports shall utilize a  format  that  shall
    18  facilitate  comparison  and analysis with those reports submitted to the
    19  legislature by the office of audit and control pursuant  to  subdivision
    20  nine of section eight of this chapter.
    21    § 5. Paragraph e-2 of subdivision 3 of section 22 of the state finance
    22  law,  as added by chapter 762 of the laws of 1992, is amended to read as
    23  follows:
    24    e-2. A [measure of the] description of employment [level]  levels  for
    25  each state department, division or office, for [both] the prior, current

    26  and next ensuing fiscal [year, provided however that for the fiscal year
    27  beginning  April first, nineteen hundred ninety-three--ninety-four, such
    28  measure shall be presented only for the general fund]  years  containing
    29  separate  schedules  for the following fund types: general fund; federal
    30  special revenue funds; other special  revenue  funds;  capital  projects
    31  funds; and an all funds summary.  Such information shall be presented in
    32  summary  form  suitable  for  comparison and shall contain the following
    33  measures including actual experience where possible:
    34    (i) budgeted-fill level or measure of  employment  used  to  determine
    35  personal service appropriations;
    36    (ii) full-time equivalents;

    37    (iii) civil service jurisdiction classification (competitive, non-com-
    38  petitive, exempt, labor);
    39    (iv) employee status (permanent, temporary, provisional); and
    40    (v)  changes  to  the  work  force  proposed  in  the executive budget
    41  proposal, including but not limited to: new positions,  layoffs,  attri-
    42  tion,  elimination  of  funded vacancies, and transfers to other funding
    43  sources.
    44    § 6. Subdivision 4 of section 22 of the state finance law, as  amended
    45  by chapter 762 of the laws of 1992, is amended to read as follows:
    46    4.  (a)  Include  a  three  year financial projection[, which shall be
    47  submitted not later than thirty days after submission of  the  financial

    48  plans  pursuant  to subdivision one of this section,] showing the antic-
    49  ipated disbursements and receipts for  each  of  the  governmental  fund
    50  types  of  the state [and, for the general fund the anticipated expendi-
    51  tures and revenues for the ensuing fiscal year and  for  the  two  years
    52  following  the ensuing fiscal year]. For the purposes of this three year
    53  financial  projection,  disbursements  [and   expenditures]   shall   be
    54  presented  by the following purposes:  state purposes, local assistance,
    55  capital projects, debt service, transfers and general state charges with
    56  each major agency or major spending item  identified  separately  within
        S. 7615                             6                           A. 11702
 

     1  each  purpose; and receipts [and revenues] shall be presented[,] by each
     2  major revenue category, including each individual tax,  each  individual
     3  component  part of miscellaneous receipts, and each revenue source which
     4  accounts  for at least one-half of one per centum of all receipts within
     5  each fund type and with disbursements shown by  major  agency  or  major
     6  spending  item  for  the  ensuing  and each of the next [successive] two
     7  fiscal [year by each revenue source which accounts for not less than one
     8  per centum of all receipts or revenues of the general fund]  years,  and
     9  otherwise  by  each  major  source  which  is  separately  estimated and

    10  presented pursuant to paragraph b of subdivision three of  this  section
    11  [and,  for  the  remaining  fiscal  year  by  each  revenue source which
    12  accounts for at least ten per centum of all the receipts or revenues and
    13  otherwise by categories of revenue sources. Provided however,  that  for
    14  the  fiscal  year  beginning  in  nineteen hundred ninety-three, for the
    15  governmental funds other  than  the  general  fund,  receipts  shall  be
    16  presented  by  each  revenue  source which accounts for at least ten per
    17  centum of all the  receipts  and  otherwise  by  categories  of  revenue
    18  source].  Receipts  and disbursements for special revenue funds shall be
    19  presented separately for federal funds and  all  other  special  revenue

    20  funds. Whenever receipts and disbursements are proposed to be moved to a
    21  different   fund  type,  each  significant  amount  so  moved  shall  be
    22  explained. This three year financial projection shall include an  expla-
    23  nation  of  any  changes  to the financial plans submitted in accordance
    24  with subdivision one of this section and  include  explanations  of  the
    25  economic, statutory and other assumptions used to estimate the disburse-
    26  ments[,  expenditures,] and receipts [and revenues] which are presented.
    27  Whenever the projections for receipts and  disbursements  are  based  on
    28  assumptions  other  than the current levels of service, such assumptions
    29  shall be separately identified and explained. The three  year  financial

    30  projections  shall  include  a  description of any projected deficits or
    31  surpluses with a discussion of the causes and effects of  such  deficits
    32  or surpluses as well as a description of available options to reduce any
    33  projected deficits or utilize any projected surpluses.
    34    (b) Include a three year financial projection prepared on the basis of
    35  generally  accepted  accounting  principles  similar  in  format to that
    36  required by paragraph (a) of this subdivision. Such projection shall  be
    37  updated each year no later than September thirtieth.
    38    § 7. Subdivision 11 of section 22 of the state finance law, as amended
    39  by  chapter  762  of  the laws of 1992 and as renumbered by section 2 of
    40  part F of chapter 389 of the  laws  of  1997,  is  amended  to  read  as
    41  follows:

    42    11.  (a)  Within  ten  days  following the submission of the financial
    43  plans presented in accordance with subdivisions  one  and  two  of  this
    44  section,  the  director  of the budget shall submit to the chairs of the
    45  senate finance committee and the assembly ways and means  committee  for
    46  the  prior, the current and next ensuing fiscal years detailed schedules
    47  by agency [for the general fund] or major program and bill and fund type
    48  with general state charges identified separately showing proposed appro-
    49  priations [in the state operations and aid to localities  budget  bills]
    50  with  disbursements  to  be made against such appropriations, as well as
    51  disbursements to be made against any existing appropriations in  a  form
    52  suitable for comparison.

    53    (b)  The following detail on appropriations and disbursements for debt
    54  service as required by paragraph (a) of this subdivision shall  also  be
    55  provided:
        S. 7615                             7                           A. 11702
 
     1    (1)  For  all bonds, notes or other obligations issued on or after the
     2  effective date of the chapter of the laws of  two  thousand  four  which
     3  amended this subdivision:
     4    (i)  a  schedule  of each of the issuance's gross principal, interest,
     5  and other payments, by payment date;
     6    (ii) a schedule of any funds used or expected to  be  used  to  offset
     7  such payments as detailed in clause (i) of this subparagraph, by payment

     8  date, which shall include, but not be limited to, each of the following:
     9    A. accrued interest;
    10    B. capitalized interest;
    11    C.  principal  or  interest earnings for monies held as bond proceeds,
    12  debt service, debt service reserve or any other reserve funds;
    13    D. principal, interest or any other monies  utilized  from  any  other
    14  funds, accounts or other sources;
    15    (iii) a schedule of each of the issuance's net principal, interest and
    16  other payments, by payment date, which shall be those amounts arrived at
    17  by  subtracting clause (ii) of this subparagraph from clause (i) of this
    18  subparagraph.
    19    For purposes of this paragraph, information for payments on  refunding

    20  bonds may be substituted for information for payments on the bonds which
    21  have been refunded.
    22    (2) For each projected issuance of bonds, notes or other obligations:
    23    (i) projected issuance date;
    24    (ii) projected amount to be issued;
    25    (iii) the projected final maturity of such bonds, notes or other obli-
    26  gations to be sold;
    27    (iv)  assumptions  as  to  interest  rates, structuring, use of credit
    28  enhancement, and any other relevant information;
    29    (v) a schedule of each of the issuance's  projected  gross  principal,
    30  interest and other payments, by payment date;
    31    (vi)  a  schedule  of  any funds used or expected to be used to offset
    32  such payments as detailed in clause (v) of this subparagraph, by payment

    33  date, which shall include, but not be limited to, each of the following:
    34    A. accrued interest;
    35    B. capitalized interest;
    36    C. principal or interest earnings for monies held  as  bond  proceeds,
    37  debt service, debt service reserve or any other reserve funds;
    38    D.  principal,  interest  or  any other monies utilized from any other
    39  funds, accounts or other sources.
    40    (vii) a schedule of each of the issuance's  projected  net  principal,
    41  interest  and  other  payments,  by  payment  date, which shall be those
    42  amounts arrived at by subtracting clause (vi) of this subparagraph  from
    43  clause (v) of this subparagraph.
    44    (viii)  if  such issuance consists of refunding bonds, notes, or other

    45  obligations, a schedule of  both  gross  and  net  projected  principal,
    46  interest, and other payment savings, by payment date.
    47    (3)  For  each bonding program, a projected schedule of both the gross
    48  and net principal, interest and other payments to  be  made  during  the
    49  next succeeding three state fiscal years.
    50    §  8.  Subdivisions  3  and  4 of section 23 of the state finance law,
    51  subdivision 3 as amended by chapter 837 of the laws of 1983 and subdivi-
    52  sion 4 as amended by chapter 59 of the laws of 2000, are amended to read
    53  as follows:
    54    3. Financial plans and capital improvement program;  revisions.    [As
    55  soon  as  practicable]  Not later than thirty days after the legislature
    56  has completed action on the budget bills submitted by the governor  [for

        S. 7615                             8                           A. 11702

     1  state purposes, local assistance, capital projects and debt service, the
     2  governor]  who  shall  cause  to  be  submitted  to  the legislature the
     3  revisions to the financial plans and the capital plan required by subdi-
     4  visions  one, two, four and five of section twenty-two of this [chapter]
     5  article as are necessary to account for  all  enactments  affecting  the
     6  financial  plans  and  the capital plan. [Such] The financial plan shall
     7  also contain a cash flow analysis of projected  receipts  and  disburse-
     8  ments  and other financing sources or uses for each month of the state's

     9  fiscal year. Notwithstanding any other law to the contrary, such revised
    10  plans and accompanying cash flow analysis  shall  be  submitted  to  the
    11  legislature  and  the  comptroller in [the same] such form as the [plans
    12  required by such subdivisions] comptroller shall prescribe.
    13    4. Financial plan updates. Quarterly, throughout the fiscal year,  the
    14  governor  shall  submit  to  the  comptroller, the [chair] chairs of the
    15  senate finance [committee] and [the chair  of]  the  assembly  ways  and
    16  means  [committee  for  the use of the committees and the information of
    17  the legislature] committees, within thirty days  of  the  close  of  the

    18  quarter  to which it shall pertain, a report which summarizes the actual
    19  experience to date and projections for the  remaining  quarters  of  the
    20  current  fiscal  year  and  for  each  of  the  next two fiscal years of
    21  receipts,  disbursements,  tax  refunds,  and  repayments  of   advances
    22  presented  in  forms  suitable  for  comparison  with the financial plan
    23  submitted pursuant to [subdivision] subdivisions one, four, five, eleven
    24  and thirteen and paragraphs d-2, e  and  e-2  of  subdivision  three  of
    25  section  twenty-two  of  this article and revised in accordance with the
    26  provisions of subdivision three of  this  section.  The  governor  shall
    27  submit  with  the  budget  and on September first of each year a similar
    28  report that summarizes revenue and expenditure  experience  to  date  as

    29  well  as  projections  for  the remaining quarters of the current fiscal
    30  year and each of the next two  fiscal  years  in  a  form  suitable  for
    31  comparison with the financial plan submitted pursuant to subdivision two
    32  of section twenty-two of this article and revised in accordance with the
    33  provisions  of  subdivision  three of this section.  Each such quarterly
    34  report shall also contain a cash flow analysis of projected receipts and
    35  disbursements  and  other  financing  sources  or  uses,  in  a   format
    36  prescribed  by  the  comptroller, for each month remaining in the fiscal
    37  year. Such reports shall provide an explanation of  the  causes  of  any
    38  major deviations from the revised financial plans and, shall provide for
    39  the  amendment  of  the  plan  or plans to reflect those deviations. The

    40  governor may, if he  determines  it  advisable,  provide  more  frequent
    41  reports  to  the  legislature regarding actual experience as compared to
    42  the financial plans. The quarterly financial plan update most  proximate
    43  to  October  thirty-first  of each year shall include the calculation of
    44  the limitations on the issuance of state-supported debt computed  pursu-
    45  ant  to the provisions of subdivisions one and two of section sixty-sev-
    46  en-b of this chapter.
    47    § 9. Subdivision 5 of section 23 of the state finance law, as added by
    48  chapter 762 of the laws of 1992, is amended to read as follows:
    49    5. Financial  information  review.  Annually  on  or  before  November
    50  fifteenth,  the  governor,  temporary  president  of  the senate and the
    51  speaker of the assembly shall cause their respective appropriate person-
    52  nel to meet for the purpose of  jointly  reviewing  available  financial

    53  information  [and developing a process] to facilitate timely adoption of
    54  a budget for the next fiscal year. Such [process] review  shall  include
    55  meetings  to  discuss the economic outlook, revenue forecasts, projected
    56  spending, the impact of relevant state and federal statutory provisions,
        S. 7615                             9                           A. 11702
 
     1  and any other  matters  deemed  appropriate.  Not  later  than  December
     2  [fifteenth]  fifth,  such respective appropriate personnel shall [report
     3  to their principals on the steps necessary to accomplish the adoption of
     4  a  timely budget] separately prepare and make available reports on esti-

     5  mated state receipts and state disbursements for the current and ensuing
     6  fiscal years. Each report on estimated state receipts shall include, but
     7  shall not be limited to, estimated tax receipts on an  all-funds  basis,
     8  estimated  lottery  receipts,  estimated  miscellaneous  receipts  to be
     9  received in the general fund, and the underlying factors and  data  upon
    10  which  such estimated receipts are based. Each report on estimated state
    11  disbursements shall include, but shall not be limited to,  estimates  of
    12  state  disbursements for Medicaid and the underlying factors and data on
    13  which such estimates are based, estimates  of  state  disbursements  for
    14  public assistance and the underlying caseload and other factors and data

    15  on  which such estimates are based, and estimates of state disbursements
    16  for assistance for elementary and secondary education and the underlying
    17  factors and data on which such estimates are based.
    18    The governor, temporary president of the senate and the speaker of the
    19  assembly shall cause their  respective  appropriate  personnel  to  meet
    20  annually  on  or  after December fifth to review the separate reports on
    21  estimated state receipts and state disbursements. The respective  appro-
    22  priate personnel shall identify and evaluate the differences between the
    23  estimates of state receipts and state disbursements, and the differences
    24  between  the  underlying  factors  and  data on which such estimates are

    25  based, and separately report such differences and the evaluation thereof
    26  to their principals.
    27    § 10. The state finance law is amended by adding a new  section  92-cc
    28  to read as follows:
    29    §  92-cc.    Health  care  reform  act (HCRA) fund. 1. There is hereby
    30  established in the joint custody of the comptroller and  the  department
    31  of  taxation  and  finance a special fund to be known as the health care
    32  reform act fund.
    33    2. On and after April first, two thousand six, such fund shall consist
    34  of the revenues collected or required to be deposited pursuant to  para-
    35  graph  (a)  of  subdivision  eighteen  of  section  twenty-eight hundred
    36  seven-c, and sections twenty-eight hundred seven-j, twenty-eight hundred

    37  seven-s and twenty-eight hundred  seven-t  of  the  public  health  law,
    38  section  four  hundred  eighty-two  of  the tax law, subparagraph (o) of
    39  paragraph four of subsection (j) of section four thousand three  hundred
    40  one  of  the  insurance  law, section twenty-seven of chapter one of the
    41  laws of two thousand two and all other moneys  credited  or  transferred
    42  thereto from any other fund or source pursuant to law.
    43    3.  Moneys  in  the health care reform act fund shall be kept separate
    44  from and shall not be commingled with any other moneys in the  joint  or
    45  sole  custody  of  the  comptroller  and  the department of taxation and
    46  finance.
    47    4. With submission of the budget for the fiscal year  beginning  April

    48  first, two thousand six, the governor shall be required to provide sepa-
    49  rate  appropriations  from  the  fund for each item included in sections
    50  twenty-eight hundred seven-k, twenty-eight hundred seven-l, twenty-eight
    51  hundred seven-m, twenty-eight hundred seven-s and  twenty-eight  hundred
    52  seven-v  of  the  public  health  law,  as  necessary  to accomplish the
    53  purposes of the health care reform act.
    54    5. Moneys of the fund,  following  appropriation  by  the  legislature
    55  shall  be  expended  in  accordance  with  sections twenty-eight hundred
    56  seven-k, twenty-eight hundred  seven-l,  twenty-eight  hundred  seven-m,
        S. 7615                            10                           A. 11702
 

     1  twenty-eight  hundred  seven-s  and  twenty-eight hundred seven-v of the
     2  public health law, pursuant to a certificate of approval of availability
     3  issued by the director of the budget, upon  the  recommendation  of  the
     4  commissioner  of  health,  or  where  appropriate, the superintendent of
     5  insurance, and the commissioner of mental health  and  a  copy  of  such
     6  certificate filed with the state comptroller, the chairman of the senate
     7  finance  committee  and  the  chairman  of  the  assembly ways and means
     8  committee.
     9    6. The moneys, following allocation, shall be paid out of the fund  on
    10  the  audit  and  warrant  of  the  comptroller  on vouchers certified or
    11  approved by the commissioner of health, or by an officer or employee  of

    12  the department of health designated by the commissioner.
    13    §  11. Section 8 of the state finance law is amended by adding two new
    14  subdivisions 19 and 20 to read as follows:
    15    19.  Notwithstanding  any  inconsistent  provision  of  law,  maintain
    16  detailed  records  of all activity commonly known as "journal transfers"
    17  relating to any fund or account of the state for which he or she has the
    18  duty pursuant to law to audit and maintain accountability, including any
    19  supporting documentation relating thereto.
    20    20. On or before April fifteenth of each year, submit an annual report
    21  of such activity pursuant to subdivision nineteen of this section to the
    22  temporary president of the senate and to the speaker of the assembly.

    23    § 12. Section 2 of the state finance law is amended by  adding  a  new
    24  subdivision 20 to read as follows:
    25    20.  "Journal transfer".   Any transfer or other method of movement of
    26  federal or state monies by the comptroller including,  but  not  limited
    27  to,  expenditure journal transfers, revenue journal transfers and statu-
    28  tory transfers, between accounts and/or funds not  specifically  author-
    29  ized by the state legislature.
    30    § 13. Section 3 of the state finance law, as added by chapter 1 of the
    31  laws of 1943 and as separately renumbered by chapters 405 and 957 of the
    32  laws of 1981, is amended to read as follows:
    33    §  3.  Fiscal  year.  1.  The [current] fiscal year of the state which

    34  [commenced] commences with the first  day  of  [July]  April,  [nineteen
    35  hundred  forty-two]  two thousand six, is hereby [abridged] extended and
    36  shall end with the [thirty-first] thirtieth day of [March] April, [nine-
    37  teen hundred forty-three] two thousand seven.    For  [all  purposes  of
    38  determining  annual increments of state employees pursuant to the educa-
    39  tion law, the civil service  law  or  other  state  law,  and  for]  all
    40  purposes  whenever  by  law some act is to be performed or time is to be
    41  measured by the fiscal year of the  state,  [the  current]  such  fiscal

    42  year, as so [abridged] extended, shall be deemed to be [a full] only one
    43  year unless the context clearly requires a contrary construction.
    44    On  and  after  the first day of [April] May, [nineteen hundred forty-
    45  three] two thousand seven, the fiscal year of the state, for the purpose
    46  of budget, appropriations, receipts and disbursements  of  state  moneys
    47  and  all  other  state affairs which are regulated in accordance with or
    48  based on fiscal years, including the fiscal affairs of all state depart-
    49  ments, commissions, boards, agencies, offices  and  institutions,  shall
    50  begin  with the first day of [April] May and end with the next following
    51  [thirty-first] thirtieth day of [March] April.

    52    2. All books and accounts in the offices of the  comptroller  and  the
    53  department  of  taxation  and finance shall be kept by fiscal years. All
    54  annual accounts required to be rendered to the comptroller  or  to  such
    55  department by any person shall be closed on the [thirty-first] thirtieth
        S. 7615                            11                           A. 11702
 
     1  day of [March] April in each year, and be rendered as soon thereafter as
     2  practicable, if no time is specially prescribed by law.
     3    3.  Where any statute provides, in terms or effect, that any inventory
     4  or account, or a report relating in whole or in  part  to  receipts  and
     5  disbursements  of money, be made to the legislature or any state officer
     6  annually, or for a year, by a department, commission, board, or  officer

     7  under  the  state government, such inventory or account, and such report
     8  so far as it relates to such receipts and disbursements,  shall  be  for
     9  the  preceding  fiscal  year,  unless  the  calendar  year  be expressly
    10  mentioned.
    11    4. Existing provisions of other laws  describing  or  referring  to  a
    12  fiscal  year  of  the  state  as beginning [July] April first and ending
    13  [June thirtieth] March thirty-first,  or  making  any  requirement  with
    14  respect  to  such fiscal year, or referring to any year so beginning and
    15  ending which applies to [inventories or accounts in] state  matters,  or
    16  to  [reports relating to] state money or property, shall be deemed modi-
    17  fied by and be construed in connection with this section, and be  deemed

    18  to  refer  to  a  fiscal  [or to another] year [or period] beginning May
    19  first, and ending [as herein prescribed for a fiscal year] April thirti-
    20  eth. Nothing contained in this subdivision shall be deemed to alter  any
    21  statutory  requirement  with  respect  to  an obligation of the state to
    22  disburse moneys on or before a specific date or with respect to an obli-
    23  gation of any person to make required payments in  the  form  of  taxes,
    24  fees  or  other charges or other obligations to the state on or before a
    25  specific date.
    26    § 14. The opening paragraph of subdivision 17  of  section  8  of  the
    27  state  finance  law,  as  added  by  chapter 992 of the laws of 1983, is
    28  amended to read as follows:

    29    Report annually to the legislature on or before [May]  June  first  on
    30  the  contracts  issued by state agencies during the previous fiscal year
    31  for consulting services. The report shall include the following informa-
    32  tion for each agency:
    33    § 15. Intentionally omitted.
    34    § 16. The opening paragraph of paragraph j of subdivision 1 of section
    35  54 of the state finance law, as added by chapter  430  of  the  laws  of
    36  1997, is amended to read as follows:
    37    The  comptroller  and  the  commissioner of taxation and finance shall
    38  jointly prepare and furnish to the state board of real property services
    39  by [June] July fifteenth of each year, a certified report setting  forth
    40  total state tax collections during the prior state fiscal year.
    41    §  17.  The  opening  paragraph  of subdivision 5 of section 55 of the

    42  state finance law, as added by chapter  59  of  the  laws  of  1982,  is
    43  amended to read as follows:
    44    The  comptroller shall annually submit a report to the director of the
    45  budget, the [chairman] chairs of the senate finance  committee  and  the
    46  [chairman  of  the] assembly ways and means committee. Such report shall
    47  be submitted no later than the last business  day  of  [June]  July  and
    48  shall  provide  a  comprehensive  analysis  of any flexible notes and/or
    49  short-term series notes issued or outstanding  in  the  previous  fiscal
    50  year. Such report shall include, but not be limited to:
    51    §  18.  Subparagraph (ii) of paragraph 4 of subdivision (a) of section
    52  83 of the state finance law, as amended by chapter 512 of  the  laws  of
    53  1994, is amended to read as follows:

    54    (ii) The state comptroller shall provide an annual report of the trust
    55  account  which lists the amount of the principal, the earned income, the
    56  earned income accrued to the principal, and  the  earned  income  trans-
        S. 7615                            12                           A. 11702
 
     1  ferred  to  the conservation fund pursuant to subparagraph (iii) of this
     2  paragraph not later than [April] May tenth of each year  for  the  state
     3  fiscal  year ending the immediately preceding [March thirty-first] April
     4  thirtieth. A copy of such report shall be transmitted, forthwith, to the
     5  director  of  the  division  of  the budget, the [chairman] chair of the
     6  senate finance committee, the [chairman] chair of the assembly ways  and

     7  means  committee,  the  commissioner  of the department of environmental
     8  conservation and each of the eleven members  of  the  conservation  fund
     9  advisory  [council] board, created pursuant to section [seven hundred of
    10  the executive law] 11-0327 of the environmental conservation law.
    11    § 19. Subdivision 6 of section 85 of the state finance law,  as  added
    12  by chapter 63 of the laws of 1988, is amended to read as follows:
    13    6.  Commencing  [April] May first, [nineteen hundred ninety] two thou-
    14  sand seven and at the beginning of each fiscal year thereafter,  if  the
    15  state  comptroller finds that the total amount to the credit of the fund
    16  as of the first day of the previous month is in excess of the sum of one

    17  million dollars, he shall advise the  [chairman]  chair  of  the  senate
    18  finance  committee,  the [chairman] chair of the assembly ways and means
    19  committee and the director of the budget of  such  findings,  and  shall
    20  within  thirty days thereafter transfer to the general fund of the state
    21  a sum equal to the amount of such excess.
    22    § 20. Subdivision 4 of section 92-a of the state finance law, as added
    23  by chapter 53 of the laws of 1985, is amended to read as follows:
    24    4. In the budget bills accompanying the budget for each  state  fiscal
    25  year  beginning on or after April first, nineteen hundred eighty-six but
    26  prior to [April] May first,  two  thousand  seven,  the  governor  shall
    27  recommend an appropriation to be made to the account established by this

    28  section  during  the  ensuing fiscal year from any moneys in the general
    29  fund to the credit of the local assistance account. The amount  of  such
    30  recommended  appropriation  shall  be an amount that the governor deter-
    31  mines to be appropriate based on the economic condition of the state  at
    32  such time, his prognosis as to the condition of the state economy during
    33  the  ensuing  fiscal year, [his] estimates of all the state expenditures
    34  that are necessary to be made for  other  purposes  during  the  ensuing
    35  fiscal  year,  and [his] projections of all the revenues and moneys that
    36  are likely to be available therefor. No moneys shall be paid  into  such
    37  fund  until  a certificate of approval by the director of the budget has
    38  been filed with the [chairmen] chairs of the  senate  finance  committee
    39  and the assembly ways and means committee.

    40    § 21. Subdivision 4 of section 94 of the state finance law, as amended
    41  by chapter 190 of the laws of 1990, is amended to read as follows:
    42    4.  On  or before [April] May twentieth in each year[, commencing with
    43  April twentieth, nineteen hundred ninety-one], the  chief  administrator
    44  shall  determine  and certify to the comptroller the difference between:
    45  (a) the aggregate receipts derived by the state from the fees  specified
    46  in  paragraph (e) of subdivision two of section thirty-nine of the judi-
    47  ciary law during the fiscal year ending  the  preceding  [March  thirty-
    48  first]  April  thirtieth  plus  all interest paid to the commissioner of
    49  taxation and finance during such fiscal year  pursuant  to  section  one
    50  hundred  eighty-two  of  this  chapter,  and  (b) the aggregate receipts

    51  derived by the state from the fees specified in paragraph (e) of  subdi-
    52  vision  two of section thirty-nine of the judiciary law during the state
    53  fiscal year commencing April first, nineteen  hundred  eighty-six.  One-
    54  half  of the amount of such difference shall thereupon be transferred by
    55  the comptroller from the general fund to the court facilities  incentive
    56  aid fund.
        S. 7615                            13                           A. 11702
 
     1    § 22. Subdivision 4 of section 99-d of the state finance law, as added
     2  by chapter 474 of the laws of 1996, is amended to read as follows:
     3    4.  Notwithstanding  section  forty  of  this  chapter  or  any  other
     4  provision of law, appropriations of this fund  shall  be  available  for
     5  liabilities  incurred  during and after the close of the fiscal year for

     6  which such appropriations are enacted, provided however that such appro-
     7  priations shall lapse  on  the  fifteenth  day  of  [September]  October
     8  following  the  close of the fiscal year, and no monies shall thereafter
     9  be paid out of the state treasury or any of its funds or the funds under
    10  its management pursuant to such appropriations.
    11    § 23. Subdivision 2 of section 99-e of the state finance law, as added
    12  by chapter 309 of the laws of 1996, is amended to read as follows:
    13    2. Such account shall consist (a) of any and all unexpended and  unen-
    14  cumbered  moneys  received  by  the  state  university  of New York from
    15  tuition, fees, user charges, or other sources  and  deposited  into  the
    16  income  offset  account,  and  (b)  any other undisbursed balance of the
    17  general fund appropriation as of the last day of  the  state  university

    18  fiscal  year  as  reduced pursuant to subparagraph six of paragraph c of
    19  subdivision four of section three hundred fifty-five  of  the  education
    20  law  to  reflect any aggregate amount established by the director of the
    21  budget less than the amount appropriated. Such moneys  shall  be  trans-
    22  ferred  by  the  state  comptroller into the stabilization account on or
    23  before [September] October fifteenth within thirty days of such date. In
    24  addition, all or a portion  of  the  account  balances  in  other  state
    25  university  income  accounts,  except  the dormitory income reimbursable
    26  account, shall be transferred by the state comptroller, at  the  request
    27  of the state university, to the stabilization account.
    28    §  24.  Subdivision  a  of  section 1615 of the tax law, as amended by
    29  chapter 170 of the laws of 1994, is amended to read as follows:

    30    a. All books, accounts and records of the division,  relating  to  the
    31  state  lottery, shall be kept by fiscal years beginning on the first day
    32  of [April] May and ending on the [thirty-first] thirtieth day of [March]
    33  April next following. The division shall separately identify the  actual
    34  sales  receipts, prizes, appropriations and expenditures for advertising
    35  and promotions, reserves and the interest thereon by type by  game,  and
    36  the  source  and  use  of  unclaimed  prize  funds by type by game on an
    37  accrual and cash basis where both are available and  on  an  accrual  or
    38  cash basis where both are not available.
    39    § 25. Section 17.03 of the parks, recreation and historic preservation
    40  law is amended to read as follows:
    41    §  17.03  Allocation of monies.  The monies received by the state from

    42  the sale of bonds sold pursuant to the  outdoor  recreation  development
    43  bond  act  shall  be expended pursuant to appropriations for (1) marine,
    44  (2) park, (3) historic site and (4) forest recreation projects, and  for
    45  (5)  municipal  park  projects  in  New York city and (6) municipal park
    46  projects outside New York City. The director of the budget shall certify
    47  to the state comptroller on the first day of [April] May  of  each  year
    48  that  portion  of  the  outdoor recreation development bond act authori-
    49  zation estimated to be expended in the ensuing fiscal year for  each  of
    50  the  above  purposes  in fulfillment of capital construction development
    51  appropriations, and proceeds of the sale of outdoor recreation  develop-
    52  ment bonds shall be so allocated. Such certification may be amended from
    53  time  to  time by the director of the budget. The director of the budget

    54  shall file a copy of such certificate and each  amendment  thereof  with
    55  the [chairman] chair of the senate finance committee, and the [chairman]
    56  chair  of the assembly ways and means committee.
        S. 7615                            14                           A. 11702
 
     1    §  26.  Subdivision  1  of  section 27.15 of the parks, recreation and
     2  historic preservation law, as amended by chapter  400  of  the  laws  of
     3  1973, is amended to read as follows:
     4    1.  Every  county,  city,  town or village enforcing the provisions of
     5  this chapter relating to snowmobiles shall be entitled to receive  state
     6  aid  as  hereinafter  provided.  A county, city, town or village seeking
     7  reimbursement for expenditures incurred in enforcement of this  article,

     8  including  expenditures  incurred  for signs and markers therefor, shall
     9  submit to the commissioner by January first of each year an estimate  of
    10  such expenditures for the current fiscal year, in such form and contain-
    11  ing  such  information as the commissioner may require. Within one month
    12  after the close of the fiscal year, each  such  county,  city,  town  or
    13  village  shall  submit  to  the  commissioner  a statement of authorized
    14  expenditures actually incurred, in such form and containing such  infor-
    15  mation as he may require. For the purpose of this section, "fiscal year"
    16  shall  mean  the  period  from  [April] May first through [March thirty-
    17  first] April thirtieth.
    18    § 27. Subdivision 3 of section 27.17  of  the  parks,  recreation  and
    19  historic  preservation law, as amended by section 2 of part G of chapter

    20  82 of the laws of 2002, is amended to read as follows:
    21    3. Every county or, where applicable, any city, town or village within
    22  such county, shall be eligible for a grant for the development and main-
    23  tenance of a system of snowmobile trails and  a  program  with  relation
    24  thereto  within its boundaries. Such grants shall be made by the commis-
    25  sioner and may constitute up to one hundred percent of the cost of  such
    26  program including expenditures incurred for signs and markers of snowmo-
    27  bile  trails. Any county or, where applicable, any city, town or village
    28  within such county, applying for such grant shall submit to the  commis-
    29  sioner  by September first of each year an estimate of such expenditures
    30  for the current fiscal year, in such form and containing  such  informa-
    31  tion  as  the  commissioner  may require.   No city, town or village may

    32  apply for such grant where the county within which it is  contained  has
    33  submitted  an  application  for the same fiscal year. For the purpose of
    34  this section, "fiscal year" shall mean the period from [April] May first
    35  through [March thirty-first] April thirtieth.   The  commissioner  shall
    36  review all such applications and shall determine the amount of state aid
    37  to  be  allocated to each county or, where applicable, any city, town or
    38  village within such county in accordance with the provisions of subdivi-
    39  sion five of this section. Of the  amount  the  commissioner  determines
    40  each  county or, where applicable, any city, town or village within such
    41  county is eligible to receive, seventy percent shall be  made  available
    42  for  distribution  by November first and thirty percent for distribution

    43  upon demonstration of  completion,  submitted  by  June  first,  of  the
    44  program.
    45    § 28. Subdivision 3 of section 551 of the labor law, as added by chap-
    46  ter 705 of the laws of 1944, is amended to read as follows:
    47    3.  Payment  of  administrative expenses. The total amount of expenses
    48  incurred by the commissioner in connection with  the  administration  of
    49  this  article  and  such proportion of the total expenses of maintaining
    50  the public employment offices as established under this chapter and  for
    51  the purposes of this article, as shall be determined to be necessary and
    52  required  by  the  provisions  of  this  article and so certified by the
    53  commissioner, shall, upon audit by the comptroller,  be  disbursed  from
    54  the  unemployment  administration fund. Annually, as soon as practicable

    55  after [April] May first, the  commissioner  and  the  comptroller  shall
    56  ascertain  the total amount of such expenses incurred during the preced-
        S. 7615                            15                           A. 11702
 
     1  ing fiscal year. An itemized statement of the total expenses  so  ascer-
     2  tained  shall  be open to public inspection in the office of the commis-
     3  sioner after notice in an official publication of  the  department.  All
     4  disbursements  from such fund shall be made by the commissioner of taxa-
     5  tion and finance on the warrant of the comptroller.
     6    § 29. Subdivision d of section 16-a of the retirement and social secu-
     7  rity law, as added by chapter 33 of the laws of 1986, is amended to read
     8  as follows:
     9    d. On or before October fifteenth of nineteen hundred  eighty-six  and

    10  each  succeeding  year  during  the amortization period, the comptroller
    11  shall file with the director of the budget an estimate of the amount  of
    12  the  annual  payment required to be made pursuant to this section in the
    13  state fiscal year beginning the first day of [April] May next succeeding
    14  such October fifteenth.
    15    § 30. Subdivision a of section 316 of the retirement and social  secu-
    16  rity  law,  as  amended by chapter 33 of the laws of 1986, is amended to
    17  read as follows:
    18    a. Upon the basis of each annual  actuarial  valuation  and  appraisal
    19  provided  for  in  this  article,  the  comptroller,  on  or  before the
    20  fifteenth day of October of each year, shall prepare and file  with  the
    21  director  of the budget an itemized estimate of the amounts necessary to
    22  be appropriated by the state to the pension accumulation  fund  and  the

    23  New  York state public employees group life insurance plan, as appropri-
    24  ate. Such itemized estimate may be revised on or before December thirti-
    25  eth of each such year. Such amounts shall be sufficient to  provide  for
    26  payment  in  full  for  (i)  the succeeding fiscal year of all estimated
    27  obligations of the state to the [policemen's  and  firemen's]  New  York
    28  state  and  local police and fire retirement system; and (ii) any actual
    29  obligations of the state to such retirement  system,  remaining  unpaid,
    30  plus  interest  on such amount, for the fiscal year ending on the [March
    31  thirty-first] April thirtieth preceding such  date;  provided,  however,
    32  that  such  estimate of actual obligations shall be made commencing with
    33  the filings due on October fifteenth,  [nineteen  hundred  eighty-seven]

    34  two  thousand  six  and  thereafter.  If,  as  a  result of the estimate
    35  required to be made pursuant to clause (i) of  the  preceding  sentence,
    36  the state overpaid its actual obligation to the retirement system in any
    37  year,  the  amount  estimated in the filing required by this subdivision
    38  next succeeding such overpayment shall reflect the amount of such  over-
    39  payment,  plus  interest  on such amount, as a reduction in amounts that
    40  would otherwise be estimated to be due the retirement  system  from  the
    41  state. An item of appropriation which shall be sufficient to provide for
    42  such obligations shall be included in the next annual appropriation bill
    43  when  it  is  presented  to  the legislature for passage. The amounts so
    44  appropriated or so much thereof as may be required shall  be  paid  from
    45  the  state treasury on warrant of the comptroller into the pension accu-

    46  mulation fund and the New York state public employees group life  insur-
    47  ance plan, as appropriate, on March first of each state fiscal year. For
    48  the  purposes  of this section, interest shall mean the rate or rates of
    49  interest used in the actuarial valuations covering the  period  of  time
    50  over which such interest is computed.
    51    §  31.  Subdivision  d  of  section 316-a of the retirement and social
    52  security law, as added by chapter 33 of the laws of 1986, is amended  to
    53  read as follows:
    54    d. On or before October fifteenth of [nineteen hundred eighty-six] two
    55  thousand  six  and  each succeeding year during the amortization period,
    56  the comptroller shall file with the director of the budget  an  estimate
        S. 7615                            16                           A. 11702
 

     1  of the amount of the annual payment required to be made pursuant to this
     2  section  in the state fiscal year beginning the first day of [April] May
     3  next succeeding such October fifteenth.
     4    §  32.  The  legislative law is amended by adding a new article 4-B to
     5  read as follows:
     6                                 ARTICLE 4-B
     7                  NEW YORK STATE INDEPENDENT BUDGET OFFICE
     8  Section 75. Powers and duties of the New York state  independent  budget
     9                office.
    10          76. Director of the New York state independent budget office.
    11    §  75.  Powers  and  duties  of  the New York state independent budget
    12  office.  There shall hereby be established a New York state  independent

    13  budget office. 1. It shall be the duty of the New York state independent
    14  budget  office  to provide the members and committees of the legislature
    15  with information which will assist such  officials  and  bodies  in  the
    16  discharge  of  their responsibilities which are related to the budgetary
    17  process including:
    18    (a) information with respect to the budget, appropriations  bills  and
    19  proposed laws with fiscal implications;
    20    (b)  information  with respect to estimated revenues and receipts, and
    21  changing revenue conditions; and
    22    (c) to the extent practicable, such other information or  analyses  as
    23  may be requested by such officials and bodies.
    24    Requests  made by the speaker of the assembly, the temporary president

    25  of the senate, the chair of the assembly ways and  means  committee  and
    26  the chair of the senate finance committee regarding the budget, revenues
    27  and expenditures shall receive priority attention.
    28    2.  The  independent budget office may complete a fiscal impact state-
    29  ment:
    30    (a) for any bill at the request of the speaker of the assembly or  the
    31  temporary president of the senate; and
    32    (b)  at the request of committee chairs for any bill referred to their
    33  respective committees.  Fiscal  impact  statements  shall  estimate  the
    34  impact on state revenues or expenditures.
    35    3.  The independent budget office may publish a report with respect to
    36  the expected levels of state revenues by the first day of  January,  the

    37  first  day  of April, the first day of July and the first day of October
    38  of each year.
    39    4. The independent budget office may prepare an economic  and  revenue
    40  forecast  in  time  for  its  review  by  the conveners of the consensus
    41  economic and revenue forecasting conference in the  month  of  March  of
    42  each year.
    43    5. The independent budget office may publish by December first of each
    44  year  a  report  analyzing  the fiscal outlook of the state for the next
    45  three years.
    46    6. The independent budget office may, from time to time, publish  such
    47  reports  as may be appropriate to enhance the official and public under-
    48  standing of the budgetary process and of the budget documents.

    49    7. All studies and reports prepared by the independent  budget  office
    50  shall  be  made available to the public and shall also be made available
    51  by electronic means over the internet.
    52    § 76. Director of the New York state independent budget office. 1. The
    53  New York state independent budget office shall be headed by  a  director
    54  who  shall  be  jointly appointed by the speaker of the assembly and the
    55  temporary president of the senate.
        S. 7615                            17                           A. 11702
 
     1    2. (a) There shall be an independent budget office advisory  committee
     2  consisting  of  (i)  one person appointed by each of the following offi-

     3  cials and who shall serve at the pleasure of such officials;  the  chair
     4  and  ranking  member  of  the  assembly ways and means committee and the
     5  chair  and  ranking member of the senate finance committee, and (ii) six
     6  other members jointly appointed by the speaker of the assembly  and  the
     7  temporary  president  of the senate, who shall serve for two year terms.
     8  The members shall all be individuals with extensive experience and know-
     9  ledge in the fields of finance, economics, accounting,  public  adminis-
    10  tration  and  public  policy  analysis including at least one nationally
    11  recognized expert in the fields of budget theory and the budget process;
    12  one dean or director or former dean or director of a graduate school  of

    13  business administration located in New York state; one officer or former
    14  officer  or  economic  advisor  of  a labor union; one officer or former
    15  officer or economic advisor to a business corporation; and  one  officer
    16  or  former  officer  of a civic or public interest advocacy organization
    17  involved in budget matters.
    18    (b) The independent budget office advisory committee may assist in the
    19  development of guidelines for the  best  practices  of  the  independent
    20  budget  office.  The  independent budget office advisory committee shall
    21  meet annually.  In the event of a vacancy, the committee  shall  provide
    22  to the speaker of the assembly and the temporary president of the senate
    23  a list of qualified candidates for the position of director.

    24    (c)  Members  of  the advisory committee shall receive no compensation
    25  but shall be reimbursed for reasonable expenses incurred  in  connection
    26  with their duties.
    27    3.  The  director  of the independent budget office shall be appointed
    28  without regard to political affiliation  and  solely  on  the  basis  of
    29  fitness to perform the duties assigned by this article. The initial term
    30  of office of the first director shall be three years commencing on Janu-
    31  ary  first,  two thousand six, and the subsequent terms of office there-
    32  after shall be for two years  commencing  January  first,  two  thousand
    33  nine.    Any individual appointed to fill a vacancy prior to the expira-
    34  tion of a term shall serve only for the unexpired portion of such  term.

    35  An  individual  serving  as  director  at the expiration of the term may
    36  continue to serve until a successor is appointed.
    37    4. The director of the independent budget office  shall  appoint  such
    38  personnel  and  procure  the  services  of such experts and consultants,
    39  within the appropriations available therefor, as may  be  necessary  for
    40  such director to carry out the duties and functions assigned pursuant to
    41  this  article.  Such  personnel and experts shall perform such duties as
    42  may be assigned to them by the director.
    43    5. The director of the independent budget office shall  be  authorized
    44  to secure such information, data, estimates and statistics directly from
    45  the agencies of the state as the director determines to be necessary for

    46  the  performance  of  the functions and duties of the independent budget
    47  office, and such agencies shall provide such  information  in  a  timely
    48  fashion. Such director shall not be entitled to obtain records which are
    49  protected by the privileges for attorney-client communications, attorney
    50  work product and material prepared for litigation.
    51    §  33.  Section 22 of the state finance law is amended by adding a new
    52  subdivision 16 to read as follows:
    53    16. (a) With respect to appropriations for any information  technology
    54  project  involving  one  or  more  contracts  and totalling five million
    55  dollars or more proposed for funding in the budget submitted annually by
    56  the governor to the legislature, the amount requested to fund each  such

        S. 7615                            18                           A. 11702
 
     1  project  shall  be  set  forth  as  a  separate  item  of appropriation.
     2  Notwithstanding any provision of law to the contrary, such appropriation
     3  or a portion thereof shall be made available only upon the submission to
     4  the  director  of  the  budget,  the  chairperson  of the senate finance
     5  committee and the chairperson of the assembly ways and means  committee,
     6  of a project design, development and implementation plan prepared by the
     7  commissioner  of  the  lead  agency  for  the project.   Such plan shall
     8  include, but not be limited to, a schedule for the  design,  development
     9  and  implementation  of  the  project  that identifies functional design

    10  components, specifications, and requirements, key milestones, timetable,
    11  the estimated cost of each phase of the project and weighs the appropri-
    12  ateness of discrete technical and  functional  project  components.  The
    13  plan  shall  document  the  rationale  for  project  scope and method of
    14  procurement, including whether the project will be procured as a  single
    15  contract  or  as separate contracts of discrete technical and functional
    16  components. Any expenditure made pursuant to such appropriation shall be
    17  in accordance with such plan.
    18    (b) Within thirty days following the submission of the budget  by  the
    19  governor  for each fiscal year, beginning with the two thousand six--two

    20  thousand seven fiscal year, the director of the budget shall transmit to
    21  the chairs of the senate finance committee and  the  assembly  ways  and
    22  means committee a report which includes project specific information for
    23  the proposed appropriations identified in paragraph (a) of this subdivi-
    24  sion  and any other projects which appear as separate items of appropri-
    25  ation. Such report shall set forth:
    26    (i) existing or anticipated contracts, including the agency  or  agen-
    27  cies which let or anticipate letting such contracts;
    28    (ii) vendor name when available;
    29    (iii)  a  description of the project and contract purpose in less than
    30  thirty words;
    31    (iv) whether such contracts are or are anticipated to  be  centralized

    32  contracts;
    33    (v) anticipated lifetime contract costs, broken down by fiscal year;
    34    (vi)  contract  amendments and/or change orders for the current fiscal
    35  year, including value if any and reasons therefor;
    36    (vii) the estimated date  of  contract  completion,  including  annual
    37  timetable  for  a  multi-year  contract and any change in such timetable
    38  since the previous report and the reasons therefor;
    39    (viii) the total of all expenditures on such specific  contracts  made
    40  prior to the then current fiscal year, including all agencies which have
    41  incurred  such  costs  including  when  expenditures  are  made off of a
    42  centralized contract;
    43    (ix) the total amount of expenditures on such specific contracts esti-

    44  mated to be made during the then current fiscal year and during each  of
    45  the  next  ensuing five fiscal years for multi-year contracts, including
    46  all agencies which have incurred such costs including when  expenditures
    47  are made off of a centralized contract;
    48    (x)  whether  such project is financed by the issuance of certificates
    49  of participation or similar instruments and the associated costs related
    50  thereto; and
    51    (xi) such other information as necessary to fully describe  the  state
    52  obligation with regard to such specific or anticipated contracts.
    53    §  34. The state finance law is amended by adding a new section 2-b to
    54  read as follows:
    55    § 2-b. Additional  definition.  As  used  in  subdivision  sixteen  of

    56  section  twenty-two  of  this chapter, the term "information technology"
        S. 7615                            19                           A. 11702
 
     1  shall mean a good, service  or  good  and  service  that  results  in  a
     2  digital, electronic or similar technical method of achieving a practical
     3  purpose or in improvements in productivity, including but not limited to
     4  information  management,  equipment, software, operating systems, inter-
     5  face systems, interconnected systems, telecommunications,  data  manage-
     6  ment,  networks,  and  network management, consulting, supplies, facili-
     7  ties, maintenance and training.
     8    § 35. Section 23 of the state finance law is amended by adding  a  new
     9  subdivision 7 to read as follows:

    10    7.  Revision of information. Information required by subdivisions one,
    11  three, seven, ten, eleven, twelve, and thirteen of section twenty-two of
    12  this article shall be revised to reflect legislative action on the exec-
    13  utive budget and on the contingency budget and shall be presented to the
    14  legislature and the public  within  thirty  days  of  final  legislative
    15  action on appropriation bills, not including any deficiency bill.
    16    §  36. Subdivisions 3 and 4 of section 92 of the state finance law, as
    17  separately amended by chapters 405 and 957 of  the  laws  of  1981,  are
    18  amended to read as follows:
    19    3.  At the close of each fiscal year any cash surplus remaining in the
    20  general fund over and above the norm  for  such  fiscal  year  shall  be

    21  transferred  from or retained in such fund as hereinafter in this subdi-
    22  vision provided. There shall be transferred  to  the  tax  stabilization
    23  reserve  fund  all of such surplus moneys, up to and including an amount
    24  equivalent to two-tenths of one per centum of  such  norm,  unless  such
    25  transfer  would  increase  such  reserve  fund to an amount in excess of
    26  [two] three per centum of the amount of the norm for such  fiscal  year,
    27  in  which  event  such  transfer shall be limited to such amount as will
    28  increase such reserve fund to such [two] three  per  centum  limitation.
    29  Any  balance of such surplus moneys, thereafter remaining in the general
    30  fund, shall be retained in such fund and be available for the  reduction
    31  of state taxes.
    32    4.  In  the  event  that  at the close of any fiscal year the receipts

    33  derived from the taxes, fees and other  sources,  required  to  be  paid
    34  during  such  fiscal  year into the general fund of the state shall fall
    35  below the norm for such fiscal year, there shall be transferred from the
    36  tax stabilization reserve fund to the general fund to  the  extent  that
    37  there  are  sufficient  moneys in the tax stabilization reserve fund, an
    38  amount equal to the difference between the norm and the amount  of  such
    39  receipts. If such transfer reduces the tax stabilization reserve fund to
    40  an  amount  less than [two] three per centum of the norm for such fiscal
    41  year, the amount so transferred shall be repaid in  cash  prior  to  the
    42  computation and payment of any transfer to the fund pursuant to subdivi-
    43  sion  three of this section in not less than three equal annual install-
    44  ments within the period of six years or less next succeeding the date of

    45  such transfer; provided, however, that if any  such  annual  installment
    46  shall  increase  such reserve fund to an amount in excess of [two] three
    47  per centum of the amount of the norm for the then current  fiscal  year,
    48  such  installment  shall be limited to such amount as will increase such
    49  reserve fund to such [two] three per centum limitation  and  no  further
    50  repayment of the whole or any part of such transfer shall be required in
    51  any  subsequent fiscal year. Repayments to the tax stabilization reserve
    52  fund shall be stipulated in annual budget bills.
    53    § 37. The state finance law is amended by adding a new  section  92-dd
    54  to read as follows:
    55    §  92-dd. Fiscal stabilization reserve fund. 1. There is hereby estab-
    56  lished in the state treasury a fund to be known as the fiscal stabiliza-

        S. 7615                            20                           A. 11702
 
     1  tion reserve fund. Such fund shall consist of moneys  deposited  therein
     2  and  monies  shall  be withdrawn from such fund only for the purposes as
     3  provided therein.
     4    2.  For each fiscal year commencing on or after April first, two thou-
     5  sand six, an amount shall be  transferred  from  the  general  fund  and
     6  deposited in the fiscal stabilization reserve fund which shall be calcu-
     7  lated  as  two-tenths of one per centum of all moneys deposited into the
     8  state  treasury  excluding  federal  funds,  fiduciary  funds  and  bond
     9  proceeds,  during  the  immediately preceding fiscal year reduced by the

    10  amount that the sum of the balance of the fund at the beginning  of  the
    11  fiscal year and two-tenths of one per centum of all the moneys deposited
    12  into  the  state  treasury  during the immediately preceding fiscal year
    13  exceeds three per centum of the moneys deposited in the  state  treasury
    14  excluding  federal  funds,  fiduciary  funds and bond proceeds deposited
    15  into the state treasury during the immediately preceding fiscal year.
    16    3. Moneys available in the fiscal stabilization reserve fund shall  be
    17  withdrawn  from  the  fund  and  transferred  to the general fund in any
    18  subsequent fiscal year for  the  payment  of  education  aid  to  school
    19  districts  and  boards  of  cooperative  educational services during the

    20  first two months of the state fiscal year for each year beginning on  or
    21  after May first, two thousand seven and for other purposes in the amount
    22  jointly  certified as necessary by the governor, the temporary president
    23  of the senate and speaker of the  assembly,  provided  that  the  amount
    24  transferred  shall  not  exceed  the  amount  of moneys available in the
    25  fiscal stabilization reserve fund. Any transfers from the fund  for  the
    26  payment  of  education aid to school districts and boards of cooperative
    27  education shall be repaid in the subsequent fiscal  year.  If  an  addi-
    28  tional  transfer  reduces  the  fiscal  stabilization reserve fund to an
    29  amount less than three per centum of the moneys deposited in  the  state

    30  treasury excluding  federal funds, fiduciary funds and bond proceeds for
    31  such  fiscal  year,  the  amount  so transferred shall be repaid in cash
    32  prior to the computation and payment of any transfer to the fund in  not
    33  less than three equal annual installments within the period of six years
    34  or  less  next  succeeding the date of such transfer; provided, however,
    35  that if any such annual installment shall increase such reserve fund  to
    36  an  amount  in  excess  of  three per centum of the amount of the moneys
    37  deposited in the state treasury excluding federal funds, fiduciary funds
    38  and bond proceeds for the then current  fiscal  year,  such  installment
    39  shall  be  limited  to such amount as will increase such reserve fund to

    40  such three per centum limitation and no further repayment of  the  whole
    41  or  any part of such transfer shall be required in any subsequent fiscal
    42  year.
    43    § 38. Section 22 of the state finance law is amended by adding two new
    44  subdivisions 14 and 15 to read as follows:
    45    14. (a) Include a current services estimate  projecting  the  cost  of
    46  continuing  levels of activities and programs authorized for the current
    47  state fiscal year as well as provisions of law scheduled to take  effect
    48  through the conclusion of the ensuing state fiscal year.
    49    Calculation  of current services projections shall include, but not be
    50  limited to, the following elements:
    51    (1) Adjustments for authorized interchanges, transfers  and  deficien-
    52  cies;

    53    (2) Adjustments for annualization, or the full year cost of implement-
    54  ing current state fiscal year budget actions, especially new initiatives
    55  which received partial year funding;
    56    (3) Elimination of non-recurring costs;
        S. 7615                            21                           A. 11702
 
     1    (4)  Adjustments  for  inflation costs associated with meeting nonper-
     2  sonal service expenditures;
     3    (5) Adjustments for negotiated personal service contractual agreements
     4  and related fringe benefit costs; and
     5    (6)  Adjustments  for currently enacted statutory changes scheduled to
     6  take effect in the current or ensuing  state  fiscal  year,  entitlement

     7  growth, and population driven service delivery growth.
     8    (b)  Current  service projections shall be presented in a standardized
     9  tabular format showing a comparison with  current  year  appropriations,
    10  current  year  adjusted appropriations and appropriations recommended by
    11  the governor for the following  state  fiscal  year.  These  comparisons
    12  shall be made at the following level of detail, where applicable, and in
    13  the following order:
    14    (1) Program;
    15    (2)  Purpose  which  shall include state operations, local assistance,
    16  and capital projects;
    17    (3) Fund type which shall include  general  fund,  special  revenue  -
    18  other  funds,  capital  project  funds,  debt  service funds and federal
    19  funds; and

    20    (4) Object level which shall  include  personal  service,  nonpersonal
    21  service, and maintenance undistributed.
    22    (c)  Accompanying the standardized tabular comparison shall be a brief
    23  narrative description of  the  effects  of  the  governor's  recommended
    24  appropriations on the current services estimate.
    25    15.  Include  a  contingency  budget  estimate  projecting the cost of
    26  activities and programs authorized during the current fiscal year.
    27    Calculation of a contingency budget shall include, but not be  limited
    28  to:
    29    (a)  Level  of  appropriations and reappropriations enacted during the
    30  current fiscal year;
    31    (b) Level of disbursements authorized during the current fiscal year;

    32    (c) Adjustments for related statutory spending and revenue  provisions
    33  which would remain in effect;
    34    (d)  Adjustments  for exceptions to contingency limits provided for in
    35  subdivision three of section twenty-four-a of this article.
    36    § 39. This act shall take effect immediately, provided, however, that:
    37    1. Sections one through thirty-five and section thirty-eight  of  this
    38  act  shall take effect on the same date as amendments to articles IV and
    39  VII of the state constitution relating to the submission of  the  budget
    40  to  the legislature by the governor as proposed in S.7317 and A.11231, a
    41  Concurrent Resolution of the Senate and Assembly, take effect; and
    42    2. Sections thirty-six and thirty-seven of this act shall take  effect
    43  three  years  after  the  date  on  which  it  shall  have become a law;

    44  provided, however, that in the event  a  Concurrent  Resolution  of  the
    45  Senate  and  Assembly proposing amendments to articles IV and VII of the
    46  constitution relating to the submission of the budget to the legislature
    47  by the governor as proposed in legislative bills numbers S. 7317 and  A.
    48  11231  fails  to  become  a  part  of  the  constitution pursuant to the
    49  provisions of section 1 of article XIX of the constitution then this act
    50  shall not take effect and the amendments to  subdivisions  3  and  4  of
    51  section  92  of the state finance law made by section thirty-six of this
    52  act and section 92-dd of the state finance law as added by section thir-
    53  ty-seven of this act shall be deemed repealed.