Requires municipalities to submit a multi-year financial plan to the comptroller which shall identify actions necessary to achieve and maintain long-term fiscal stability.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8562
SPONSOR: Rajkumar (MS) TITLE OF BILL:
An act to amend the general municipal law, in relation to requiring
municipalities to submit a multi-year financial plan to the comptroller
PURPOSE OR GENERAL IDEA OF BILL:
This bill, unless already required, by law, would require every city,
county and every town and village with annual budgets in excess of ten
million dollars to annually prepare and submit a multi-year financial
plan to the comptroller.
SUMMARY OF PROVISIONS:
Section 1 amends the general municipal law by adding a new section 40
which requires all eligible municipalities to annually prepare and
submit a multi-year financial plan to the comptroller for review.
Section 2 is the effective date.
JUSTIFICATION:
This bill will allow the comptroller to review the long term financial
plan of municipalities. Often, short term budgeting decisions may mask
long term fiscal issues; this requirement will force municipalities to
plan ahead. This requirement of a multi-year plan will provide long term
fiscal stability for municipalities and avoid financial troubles in the
future.
PRIOR LEGISLATIVE HISTORY:
2023-24: A.2951 (Zebrowski)2015-16: A.1780
2021-22: A.67212013-14: A.1446
2019-2020: A.34282011-12: A.10223
2017-18: A.1478
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TBD
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
8562
2025-2026 Regular Sessions
IN ASSEMBLY
May 20, 2025
___________
Introduced by M. of A. RAJKUMAR, BRABENEC -- Multi-Sponsored by -- M. of
A. COOK -- read once and referred to the Committee on Local Govern-
ments
AN ACT to amend the general municipal law, in relation to requiring
municipalities to submit a multi-year financial plan to the comp-
troller
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general municipal law is amended by adding a new
2 section 40 to read as follows:
3 § 40. Multi-year financial plan. Except if already required by law,
4 every city, county and every town and village with annual budgets in
5 excess of ten million dollars shall annually prepare and submit a
6 multi-year financial plan to the comptroller. Such multi-year financial
7 plans shall be filed with the comptroller by the chief financial officer
8 of the municipality no later than one hundred twenty days after the
9 adoption of the municipality's budget. The multi-year financial plan
10 shall cover the proposed budget, the next succeeding fiscal year and the
11 two fiscal years thereafter. The multi-year financial plan shall at
12 minimum include projected employment levels, projected annual expendi-
13 tures for personal service, fringe benefits, non-personal services and
14 debt service; appropriate reserve fund amounts; estimated annual reven-
15 ues including projected property tax rates, the value of the taxable
16 real property and resulting tax levy, annual growth in sales tax and
17 non-property tax revenues, and the proposed use of one-time revenue
18 sources. The financial plan shall also identify actions necessary to
19 achieve and maintain long-term fiscal stability, including, but not
20 limited to, improved management practices, initiatives to minimize or
21 reduce operating expenses, and potential shared services agreements with
22 other municipalities. The comptroller may, upon written request from a
23 municipality, grant an extension of up to thirty days.
24 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13023-01-5
