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S00002 Summary:

BILL NOS00002
 
SAME ASSAME AS A00001
 
SPONSORBRUNO
 
COSPNSRJOHNSON, LIBOUS, SALAND, WINNER, ALESI, BALBONI, BONACIC, DEFRANCISCO, FARLEY, FLANAGAN,FUSCHILLO, GOLDEN, HANNON, LARKIN, LAVALLE, LEIBELL, LITTLE, MALTESE, MARCELLINO, MARCHI, MAZIARZ,MCGEE, MEIER, MORAHAN, NOZZOLIO, PADAVAN, RATH, ROBACH, SEWARD, SKELOS, TRUNZO, VOLKER, WRIGHT,ALESI, BALBONI, BONACIC, DEFRANCISCO
 
MLTSPNSR
 
Amd St Fin L, generally; amd S1615, Tax L; amd SS17.03, 27.15 & 27.17, Pks & Rec L; amd S551, LabL; amd SS16-a, 316 & 316-a, R & SS L; add Art 4-B SS75 & 76, Leg L
 
Establishes procedure for implementation of a contingency budget on the first day of the fiscal year in the event the legislature has not finally acted upon all appropriation bills submitted by the governor; enacts provisions relating to appropriations for public education; submission of financial plans; requires use of separate schedules; multi-year financial plan changes; provides for additional debt reporting; revisions of financial plans and capital improvement programs; establishes earlier time frames for certain actions (quickstart); creates the health care reform act fund; provides for reporting of journal voucher transactions; changes the date of the fiscal year; creates the New York state independent budget office; provides for procedures relating to appropriations and reporting for information technology projects; provides for revision of information by the executive to reflect legislative action on the executive budget and contingency budget; relates to amounts held and transferred to and by the tax stabilization reserve fund and establishes the fiscal stabilization reserve fund; and provides that the budget shall include a current services budget projecting the cost of continuing levels of activities and programs authorized for the current state fiscal year as well as provisions of law scheduled to take effect through the conclusion of the ensuing state fiscal year.
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S00002 Actions:

BILL NOS00002
 
01/05/2005REFERRED TO FINANCE
01/11/2005ORDERED TO THIRD READING CAL.1
01/11/2005PASSED SENATE
01/11/2005DELIVERED TO ASSEMBLY
01/11/2005referred to ways and means
02/16/2005substituted for a1
02/16/2005ordered to third reading rules cal.16
02/16/2005passed assembly
02/16/2005returned to senate
04/21/2005DELIVERED TO GOVERNOR
05/03/2005VETOED MEMO.5
05/04/2005TABLED
05/09/2005MOTION TAKEN FROM TABLE
05/09/2005MOTION TO OVERRIDE VETO BY GOVERNOR
05/09/2005REPASSED SENATE
05/09/2005RETURNED TO ASSEMBLY
05/23/2005motion to override veto by governor
05/23/2005repassed assembly
05/23/2005returned to senate
08/15/2005DELIVERED TO SECRETARY OF STATE
08/15/2005CHAPTER 666
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S00002 Memo:

Memo not available
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S00002 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                            2
 
                               2005-2006 Regular Sessions
 
                    IN SENATE
 
                                     January 5, 2005
                                       ___________
 
        Introduced  by  Sens.  BRUNO,  JOHNSON,  LIBOUS,  SALAND, WINNER, ALESI,
          BALBONI, BONACIC, DeFRANCISCO, FARLEY,  FLANAGAN,  FUSCHILLO,  GOLDEN,
          HANNON, LARKIN, LAVALLE, LEIBELL, LITTLE, MALTESE, MARCELLINO, MARCHI,
          MAZIARZ,  McGEE,  MEIER,  MORAHAN,  NOZZOLIO,  PADAVAN,  RATH, ROBACH,
          SEWARD, SKELOS, TRUNZO, VOLKER,  WRIGHT  --  read  twice  and  ordered

          printed, and when printed to be committed to the Committee on Finance
 
        AN  ACT  to  amend  the state finance law, in relation to establishing a
          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
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
        S                                                          LBD05043-01-5

        S. 2                                2
 
          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:
     3    § 24-a. Contingency budget. 1. A contingency budget shall take  effect
     4  on the first day of the fiscal year in the event the legislature has not

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

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

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

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

    50  annual disbursements under the contingency  budget,  uniform  reductions
    51  shall be applied to all disbursements other than those included in para-
    52  graph  (a)  of  subdivision  three of this section in order to achieve a
    53  balanced plan of receipts and disbursements. Such  reductions  shall  be

        S. 2                                3
 
     1  applied  not later than the thirtieth day that the contingency budget is
     2  in effect, except where federal or other  notification  is  required  to
     3  effectuate a reduction, in which case such notification shall be made no
     4  later  than  the thirtieth day after the contingency budget is in effect
     5  and the related reduction  shall  take  effect  as  soon  thereafter  as

     6  allowed. No reduction implemented under this subdivision shall alter any
     7  eligibility provision for any program.
     8    §  2.  Subdivisions 1, 2 and 3 of section 40 of the state finance law,
     9  as amended by chapter 169 of the laws of 1994, are amended  to  read  as
    10  follows:
    11    1.  The  budget  and  the budget bills submitted by the governor shall
    12  include all appropriations which in the opinion of the governor will  be
    13  required  during the full succeeding fiscal year.  In the case of appro-
    14  priations for the general  support  of  public  schools  and  the  state
    15  lottery  fund, the budget and the budget bills submitted by the governor
    16  shall include all appropriations  for  the  general  support  of  public
    17  schools  and the state lottery fund which in the opinion of the governor

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

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

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

    53    (e) All state operations appropriations made to the city university of
    54  New  York and the state university of New York shall cease to have force
    55  and effect, except as to liabilities already incurred thereunder, as  of

        S. 2                                4
 
     1  the  thirtieth  day  of June immediately following the state fiscal year
     2  for which they are enacted.
     3    3.  Every appropriation for whatever purpose which at the close of the
     4  fiscal year in which such appropriation shall  first  become  available,
     5  shall  cease  to  have force and effect except as to liabilities already
     6  incurred thereunder shall as to such liabilities continue in  force  and
     7  effect  until the dates specified in paragraphs (a), (b), (c) and (d) of
     8  this subdivision, on which dates such appropriation shall lapse  and  no

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

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

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

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

        S. 2                                5
 

     1  disbursements; receipts; repayments of advances; total tax refunds;  and
     2  refunds  for  the  tax  imposed under article twenty-two of the tax law.
     3  Such information shall be presented in the  same  form  as  the  summary
     4  financial plans presented in accordance with subdivisions one and two of
     5  this  section.    A separate, detailed, report of such schedule shall be
     6  provided with receipts shown by each major revenue  category,  including
     7  each  individual  tax,  each  individual component part of miscellaneous
     8  receipts, and each revenue source which accounts for at  least  one-half
     9  of  one  per  centum  of  all  receipts  within  each fund type and with
    10  disbursements shown by major agency or major spending item.
    11    The director of the division of the  budget  shall  submit  concurrent

    12  with the submission of the financial plan to the legislature pursuant to
    13  subdivision two of this section and with each update thereafter a sched-
    14  ule  of actual and planned disbursements by month and by fund type stat-
    15  ing separately and distinctly variances  between  actual  and  projected
    16  disbursements  for the most recent practicable month and previous twelve
    17  months. Such report shall document actual and projected state  disburse-
    18  ments inclusive of, and distinctly stated by categories of local assist-
    19  ance grants including general purpose, education, social services, medi-
    20  caid,  health  and environment, mental hygiene, transportation, criminal
    21  justice and miscellaneous; by departmental operations including personal

    22  services and non-personal services; by general  state  charges;  and  by
    23  debt  service  payments.  Such reports shall utilize a format that shall
    24  facilitate comparison and analysis with those reports submitted  to  the
    25  legislature  by  the office of audit and control pursuant to subdivision
    26  nine of section eight of this chapter.
    27    § 5. Paragraph e-2 of subdivision 3 of section 22 of the state finance
    28  law, as added by chapter 762 of the laws of 1992, is amended to read  as
    29  follows:
    30    e-2.  A  [measure of the] description of employment [level] levels for
    31  each state department, division or office, for [both] the prior, current
    32  and next ensuing fiscal [year, provided however that for the fiscal year

    33  beginning April first, nineteen hundred ninety-three--ninety-four,  such
    34  measure  shall  be presented only for the general fund] years containing
    35  separate schedules for the following fund types: general  fund;  federal
    36  special  revenue  funds;  other  special revenue funds; capital projects
    37  funds; and an all funds summary.  Such information shall be presented in
    38  summary form suitable for comparison and  shall  contain  the  following
    39  measures including actual experience where possible:
    40    (i)  budgeted-fill  level  or  measure of employment used to determine
    41  personal service appropriations;
    42    (ii) full-time equivalents;
    43    (iii) civil service jurisdiction classification (competitive, non-com-

    44  petitive, exempt, labor);
    45    (iv) employee status (permanent, temporary, provisional); and
    46    (v) changes to  the  work  force  proposed  in  the  executive  budget
    47  proposal,  including  but not limited to: new positions, layoffs, attri-
    48  tion, elimination of funded vacancies, and transfers  to  other  funding
    49  sources.
    50    §  6. Subdivision 4 of section 22 of the state finance law, as amended
    51  by chapter 762 of the laws of 1992, is amended to read as follows:
    52    4. a. Include a three  year  financial  projection[,  which  shall  be
    53  submitted  not  later than thirty days after submission of the financial
    54  plans pursuant to subdivision one of this section,] showing  the  antic-
    55  ipated  disbursements  and  receipts  for  each of the governmental fund

    56  types of the state [and, for the general fund the  anticipated  expendi-

        S. 2                                6

     1  tures  and  revenues  for  the ensuing fiscal year and for the two years
     2  following the ensuing fiscal year]. For the purposes of this three  year
     3  financial   projection,   disbursements   [and  expenditures]  shall  be
     4  presented  by the following purposes:  state purposes, local assistance,
     5  capital projects, debt service, transfers and general state charges with
     6  each major agency or major spending item  identified  separately  within
     7  each  purpose; and receipts [and revenues] shall be presented[,] by each
     8  major revenue category, including each individual tax,  each  individual

     9  component  part of miscellaneous receipts, and each revenue source which
    10  accounts for at least one-half of one per centum of all receipts  within
    11  each  fund  type  and  with disbursements shown by major agency or major
    12  spending item for the ensuing and each  of  the  next  [successive]  two
    13  fiscal [year by each revenue source which accounts for not less than one
    14  per  centum  of all receipts or revenues of the general fund] years, and
    15  otherwise by  each  major  source  which  is  separately  estimated  and
    16  presented  pursuant  to paragraph b of subdivision three of this section
    17  [and, for the  remaining  fiscal  year  by  each  revenue  source  which
    18  accounts for at least ten per centum of all the receipts or revenues and

    19  otherwise  by  categories of revenue sources. Provided however, that for
    20  the fiscal year beginning in  nineteen  hundred  ninety-three,  for  the
    21  governmental  funds  other  than  the  general  fund,  receipts shall be
    22  presented by each revenue source which accounts for  at  least  ten  per
    23  centum  of  all  the  receipts  and  otherwise  by categories of revenue
    24  source]. Receipts and disbursements for special revenue funds  shall  be
    25  presented  separately  for  federal  funds and all other special revenue
    26  funds. Whenever receipts and disbursements are proposed to be moved to a
    27  different  fund  type,  each  significant  amount  so  moved  shall   be
    28  explained.  This three year financial projection shall include an expla-

    29  nation of any changes to the financial  plans  submitted  in  accordance
    30  with  subdivision  one  of  this section and include explanations of the
    31  economic, statutory and other assumptions used to estimate the disburse-
    32  ments[, expenditures,] and receipts [and revenues] which are  presented.
    33  Whenever  the  projections  for  receipts and disbursements are based on
    34  assumptions other than the current levels of service,  such  assumptions
    35  shall  be  separately identified and explained. The three year financial
    36  projections shall include a description of  any  projected  deficits  or
    37  surpluses  with  a discussion of the causes and effects of such deficits
    38  or surpluses as well as a description of available options to reduce any

    39  projected deficits or utilize any projected surpluses.
    40    b. Include a three year financial projection prepared on the basis  of
    41  generally  accepted  accounting  principles  similar  in  format to that
    42  required by paragraph (a) of this subdivision. Such projection shall  be
    43  updated each year no later than September thirtieth.
    44    § 7. Subdivision 11 of section 22 of the state finance law, as amended
    45  by  chapter  762  of  the laws of 1992 and as renumbered by section 2 of
    46  part F of chapter 389 of the  laws  of  1997,  is  amended  to  read  as
    47  follows:
    48    11. a. Within ten days following the submission of the financial plans
    49  presented  in  accordance with subdivisions one and two of this section,
    50  the director of the budget shall submit to  the  chairs  of  the  senate

    51  finance  committee  and  the  assembly  ways and means committee for the
    52  prior, the current and next ensuing fiscal years detailed  schedules  by
    53  agency  [for  the  general fund] or major program and bill and fund type
    54  with general state charges identified separately showing proposed appro-
    55  priations [in the state operations and aid to localities  budget  bills]
    56  with  disbursements  to  be made against such appropriations, as well as

        S. 2                                7
 
     1  disbursements to be made against any existing appropriations in  a  form
     2  suitable for comparison.
     3    b.  The  following detail on appropriations and disbursements for debt
     4  service as required by paragraph a of this  subdivision  shall  also  be
     5  provided:

     6    (1)  For  all bonds, notes or other obligations issued on or after the
     7  effective date of the chapter of the laws of  two  thousand  five  which
     8  amended this subdivision:
     9    (i)  a  schedule  of each of the issuance's gross principal, interest,
    10  and other payments, by payment date;
    11    (ii) a schedule of any funds used or expected to  be  used  to  offset
    12  such payments as detailed in clause (i) of this subparagraph, by payment
    13  date, which shall include, but not be limited to, each of the following:
    14    A. accrued interest;
    15    B. capitalized interest;
    16    C.  principal  or  interest earnings for monies held as bond proceeds,
    17  debt service, debt service reserve or any other reserve funds;

    18    D. principal, interest or any other monies  utilized  from  any  other
    19  funds, accounts or other sources;
    20    (iii) a schedule of each of the issuance's net principal, interest and
    21  other payments, by payment date, which shall be those amounts arrived at
    22  by  subtracting clause (ii) of this subparagraph from clause (i) of this
    23  subparagraph.
    24    For purposes of this paragraph, information for payments on  refunding
    25  bonds may be substituted for information for payments on the bonds which
    26  have been refunded.
    27    (2) For each projected issuance of bonds, notes or other obligations:
    28    (i) projected issuance date;
    29    (ii) projected amount to be issued;

    30    (iii) the projected final maturity of such bonds, notes or other obli-
    31  gations to be sold;
    32    (iv)  assumptions  as  to  interest  rates, structuring, use of credit
    33  enhancement, and any other relevant information;
    34    (v) a schedule of each of the issuance's  projected  gross  principal,
    35  interest and other payments, by payment date;
    36    (vi)  a  schedule  of  any funds used or expected to be used to offset
    37  such payments as detailed in clause (v) of this subparagraph, by payment
    38  date, which shall include, but not be limited to, each of the following:
    39    A. accrued interest;
    40    B. capitalized interest;
    41    C. principal or interest earnings for monies held  as  bond  proceeds,

    42  debt service, debt service reserve or any other reserve funds;
    43    D.  principal,  interest  or  any other monies utilized from any other
    44  funds, accounts or other sources.
    45    (vii) a schedule of each of the issuance's  projected  net  principal,
    46  interest  and  other  payments,  by  payment  date, which shall be those
    47  amounts arrived at by subtracting clause (vi) of this subparagraph  from
    48  clause (v) of this subparagraph.
    49    (viii)  if  such issuance consists of refunding bonds, notes, or other
    50  obligations, a schedule of  both  gross  and  net  projected  principal,
    51  interest, and other payment savings, by payment date.
    52    (3)  For  each bonding program, a projected schedule of both the gross

    53  and net principal, interest and other payments to  be  made  during  the
    54  next succeeding three state fiscal years.
    55    §  8.  Subdivisions  3  and  4 of section 23 of the state finance law,
    56  subdivision 3 as amended by chapter 837 of the laws of 1983 and subdivi-

        S. 2                                8
 
     1  sion 4 as amended by chapter 59 of the laws of 2000, are amended to read
     2  as follows:
     3    3.  Financial  plans  and capital improvement program; revisions.  [As
     4  soon as practicable] Not later than thirty days  after  the  legislature
     5  has  completed action on the budget bills submitted by the governor [for
     6  state purposes, local assistance, capital projects and debt service, the

     7  governor] who shall  cause  to  be  submitted  to  the  legislature  the
     8  revisions to the financial plans and the capital plan required by subdi-
     9  visions  one, two, four and five of section twenty-two of this [chapter]
    10  article as are necessary to account for  all  enactments  affecting  the
    11  financial  plans  and  the capital plan. [Such] The financial plan shall
    12  also contain a cash flow analysis of projected  receipts  and  disburse-
    13  ments  and other financing sources or uses for each month of the state's
    14  fiscal year. Notwithstanding any other law to the contrary, such revised
    15  plans and accompanying cash flow analysis  shall  be  submitted  to  the

    16  legislature  and  the  comptroller in [the same] such form as the [plans
    17  required by such subdivisions] comptroller shall prescribe.
    18    4. Financial plan updates. Quarterly, throughout the fiscal year,  the
    19  governor  shall  submit  to  the  comptroller, the [chair] chairs of the
    20  senate finance [committee] and [the chair  of]  the  assembly  ways  and
    21  means  [committee  for  the use of the committees and the information of
    22  the legislature] committees, within thirty days  of  the  close  of  the
    23  quarter  to which it shall pertain, a report which summarizes the actual
    24  experience to date and projections for the  remaining  quarters  of  the

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

    35  year and each of the next two  fiscal  years  in  a  form  suitable  for
    36  comparison with the financial plan submitted pursuant to subdivision two
    37  of section twenty-two of this article and revised in accordance with the
    38  provisions  of  subdivision  three of this section.  Each such quarterly
    39  report shall also contain a cash flow analysis of projected receipts and
    40  disbursements  and  other  financing  sources  or  uses,  in  a   format
    41  prescribed  by  the  comptroller, for each month remaining in the fiscal
    42  year. Such reports shall provide an explanation of  the  causes  of  any
    43  major deviations from the revised financial plans and, shall provide for
    44  the  amendment  of  the  plan  or plans to reflect those deviations. The
    45  governor may, if he  determines  it  advisable,  provide  more  frequent

    46  reports  to  the  legislature regarding actual experience as compared to
    47  the financial plans. The quarterly financial plan update most  proximate
    48  to  October  thirty-first  of each year shall include the calculation of
    49  the limitations on the issuance of state-supported debt computed  pursu-
    50  ant  to the provisions of subdivisions one and two of section sixty-sev-
    51  en-b of this chapter.
    52    § 9. Subdivision 5 of section 23 of the state finance law, as added by
    53  chapter 762 of the laws of 1992, is amended to read as follows:
    54    5. Financial  information  review.  Annually  on  or  before  November
    55  fifteenth,  the  governor,  temporary  president  of  the senate and the
    56  speaker of the assembly shall cause their respective appropriate person-

        S. 2                                9
 

     1  nel to meet for the purpose of  jointly  reviewing  available  financial
     2  information  [and developing a process] to facilitate timely adoption of
     3  a budget for the next fiscal year. Such [process] review  shall  include
     4  meetings  to  discuss the economic outlook, revenue forecasts, projected
     5  spending, the impact of relevant state and federal statutory provisions,
     6  and any other  matters  deemed  appropriate.  Not  later  than  December
     7  [fifteenth]  fifth,  such respective appropriate personnel shall [report
     8  to their principals on the steps necessary to accomplish the adoption of
     9  a timely budget] separately prepare and make available reports on  esti-
    10  mated state receipts and state disbursements for the current and ensuing

    11  fiscal years. Each report on estimated state receipts shall include, but
    12  shall  not  be limited to, estimated tax receipts on an all-funds basis,
    13  estimated lottery  receipts,  estimated  miscellaneous  receipts  to  be
    14  received  in  the general fund, and the underlying factors and data upon
    15  which such estimated receipts are based. Each report on estimated  state
    16  disbursements  shall  include, but shall not be limited to, estimates of
    17  state disbursements for Medicaid and the underlying factors and data  on
    18  which  such  estimates  are  based, estimates of state disbursements for
    19  public assistance and the underlying caseload and other factors and data
    20  on which such estimates are based, and estimates of state  disbursements

    21  for assistance for elementary and secondary education and the underlying
    22  factors and data on which such estimates are based.
    23    The governor, temporary president of the senate and the speaker of the
    24  assembly  shall  cause  their  respective  appropriate personnel to meet
    25  annually on or after December fifth to review the  separate  reports  on
    26  estimated  state receipts and state disbursements. The respective appro-
    27  priate personnel shall identify and evaluate the differences between the
    28  estimates of state receipts and state disbursements, and the differences
    29  between the underlying factors and data  on  which  such  estimates  are
    30  based, and separately report such differences and the evaluation thereof
    31  to their principals.

    32    §  10.  The state finance law is amended by adding a new section 92-cc
    33  to read as follows:
    34    § 92-cc.   Health care reform act (HCRA)  fund.  1.  There  is  hereby
    35  established  in  the joint custody of the comptroller and the department
    36  of taxation and finance a special fund to be known as  the  health  care
    37  reform act fund.
    38    2. On and after April first, two thousand six, such fund shall consist
    39  of  the revenues collected or required to be deposited pursuant to para-
    40  graph (a)  of  subdivision  eighteen  of  section  twenty-eight  hundred
    41  seven-c, and sections twenty-eight hundred seven-j, twenty-eight hundred
    42  seven-s  and  twenty-eight  hundred  seven-t  of  the public health law,

    43  section four hundred eighty-two of the  tax  law,  subparagraph  (O)  of
    44  paragraph  four of subsection (j) of section four thousand three hundred
    45  one of the insurance law, section twenty-seven of part A of chapter  one
    46  of  the laws of two thousand two and all other moneys credited or trans-
    47  ferred thereto from any other fund or source pursuant to law.
    48    3. Moneys in the health care reform act fund shall  be  kept  separate
    49  from  and  shall not be commingled with any other moneys in the joint or
    50  sole custody of the comptroller  and  the  department  of  taxation  and
    51  finance.
    52    4.  With  submission of the budget for the fiscal year beginning April
    53  first, two thousand six, the governor shall be required to provide sepa-

    54  rate appropriations from the fund for each  item  included  in  sections
    55  twenty-eight hundred seven-k, twenty-eight hundred seven-l, twenty-eight
    56  hundred  seven-m,  twenty-eight hundred seven-s and twenty-eight hundred

        S. 2                               10
 
     1  seven-v of the  public  health  law,  as  necessary  to  accomplish  the
     2  purposes of the health care reform act.
     3    5.  Moneys  of  the  fund,  following appropriation by the legislature
     4  shall be expended  in  accordance  with  sections  twenty-eight  hundred
     5  seven-k,  twenty-eight  hundred  seven-l,  twenty-eight hundred seven-m,
     6  twenty-eight hundred seven-s and twenty-eight  hundred  seven-v  of  the

     7  public health law, pursuant to a certificate of approval of availability
     8  issued  by  the  director  of the budget, upon the recommendation of the
     9  commissioner of health, or  where  appropriate,  the  superintendent  of
    10  insurance,  and  the  commissioner  of  mental health and a copy of such
    11  certificate filed with the state comptroller, the chairman of the senate
    12  finance committee and the  chairman  of  the  assembly  ways  and  means
    13  committee.
    14    6.  The moneys, following allocation, shall be paid out of the fund on
    15  the audit and warrant  of  the  comptroller  on  vouchers  certified  or
    16  approved  by the commissioner of health, or by an officer or employee of
    17  the department of health designated by the commissioner.

    18    § 11. Section 8 of the state finance law is amended by adding two  new
    19  subdivisions 19 and 20 to read as follows:
    20    19.  Notwithstanding  any  inconsistent  provision  of  law,  maintain
    21  detailed records of all activity commonly known as  "journal  transfers"
    22  relating to any fund or account of the state for which he or she has the
    23  duty pursuant to law to audit and maintain accountability, including any
    24  supporting documentation relating thereto.
    25    20. On or before April fifteenth of each year, submit an annual report
    26  of such activity pursuant to subdivision nineteen of this section to the
    27  temporary president of the senate and to the speaker of the assembly.
    28    §  12.  Section  2 of the state finance law is amended by adding a new
    29  subdivision 20 to read as follows:

    30    20. "Journal transfer".  Any transfer or other method of  movement  of
    31  federal  or  state  monies by the comptroller including, but not limited
    32  to, expenditure journal transfers, revenue journal transfers and  statu-
    33  tory  transfers,  between accounts and/or funds not specifically author-
    34  ized by the state legislature.
    35    § 13. Section 3 of the state finance law, as added by chapter 1 of the
    36  laws of 1943 and as separately renumbered by chapters 405 and 957 of the
    37  laws of 1981, is amended to read as follows:
    38    § 3. Fiscal year. 1. The [current] fiscal  year  of  the  state  which
    39  [commenced]  commences  with  the  first  day of [July] April, [nineteen

    40  hundred forty-two] two thousand six, is hereby [abridged]  extended  and
    41  shall end with the [thirty-first] thirtieth day of [March] April, [nine-
    42  teen  hundred  forty-three]  two  thousand seven.   For [all purposes of
    43  determining annual increments of state employees pursuant to the  educa-
    44  tion  law,  the  civil  service  law  or  other  state law, and for] all
    45  purposes whenever by law some act is to be performed or time  is  to  be
    46  measured  by  the  fiscal  year  of the state, [the current] such fiscal
    47  year, as so [abridged] extended, shall be deemed to be [a full] only one

    48  year unless the context clearly requires a contrary construction.
    49    On and after the first day of [April] May,  [nineteen  hundred  forty-
    50  three] two thousand seven, the fiscal year of the state, for the purpose
    51  of  budget,  appropriations,  receipts and disbursements of state moneys
    52  and all other state affairs which are regulated in  accordance  with  or
    53  based on fiscal years, including the fiscal affairs of all state depart-
    54  ments,  commissions,  boards,  agencies, offices and institutions, shall
    55  begin with the first day of [April] May and end with the next  following
    56  [thirty-first] thirtieth day of [March] April.

        S. 2                               11
 

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

    12  so far as it relates to such receipts and disbursements,  shall  be  for
    13  the  preceding  fiscal  year,  unless  the  calendar  year  be expressly
    14  mentioned.
    15    4. Existing provisions of other laws  describing  or  referring  to  a
    16  fiscal  year  of  the  state  as beginning [July] April first and ending
    17  [June thirtieth] March thirty-first,  or  making  any  requirement  with
    18  respect  to  such fiscal year, or referring to any year so beginning and
    19  ending which applies to [inventories or accounts in] state  matters,  or
    20  to  [reports relating to] state money or property, shall be deemed modi-
    21  fied by and be construed in connection with this section, and be  deemed
    22  to  refer  to  a  fiscal  [or to another] year [or period] beginning May

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

    34  the  contracts  issued by state agencies during the previous fiscal year
    35  for consulting services. The report shall include the following informa-
    36  tion for each agency:
    37    § 15. Intentionally omitted.
    38    § 16. The opening paragraph of paragraph j of subdivision 1 of section
    39  54 of the state finance law, as added by chapter  430  of  the  laws  of
    40  1997, is amended to read as follows:
    41    The  comptroller  and  the  commissioner of taxation and finance shall
    42  jointly prepare and furnish to the state board of real property services
    43  by [June] July fifteenth of each year, a certified report setting  forth
    44  total state tax collections during the prior state fiscal year.
    45    §  17.  The  opening  paragraph  of subdivision 5 of section 55 of the
    46  state finance law, as added by chapter  59  of  the  laws  of  1982,  is
    47  amended to read as follows:

    48    The  comptroller shall annually submit a report to the director of the
    49  budget, the [chairman] chairs of the senate finance  committee  and  the
    50  [chairman  of  the] assembly ways and means committee. Such report shall
    51  be submitted no later than the last business  day  of  [June]  July  and
    52  shall  provide  a  comprehensive  analysis  of any flexible notes and/or
    53  short-term series notes issued or outstanding  in  the  previous  fiscal
    54  year. Such report shall include, but not be limited to:

        S. 2                               12
 
     1    §  18.  Subparagraph (ii) of paragraph 4 of subdivision (a) of section
     2  83 of the state finance law, as amended by chapter 512 of  the  laws  of
     3  1994, is amended to read as follows:
     4    (ii) The state comptroller shall provide an annual report of the trust

     5  account  which lists the amount of the principal, the earned income, the
     6  earned income accrued to the principal, and  the  earned  income  trans-
     7  ferred  to  the conservation fund pursuant to subparagraph (iii) of this
     8  paragraph not later than [April] May tenth of each year  for  the  state
     9  fiscal  year ending the immediately preceding [March thirty-first] April
    10  thirtieth. A copy of such report shall be transmitted, forthwith, to the
    11  director of the division of the budget,  the  [chairman]  chair  of  the
    12  senate  finance committee, the [chairman] chair of the assembly ways and
    13  means committee, the commissioner of  the  department  of  environmental
    14  conservation  and  each  of  the eleven members of the conservation fund

    15  advisory [council] board, created pursuant to section [seven hundred  of
    16  the executive law] 11-0327 of the environmental conservation law.
    17    §  19.  Subdivision 6 of section 85 of the state finance law, as added
    18  by chapter 63 of the laws of 1988, is amended to read as follows:
    19    6. Commencing [April] May first, [nineteen hundred ninety]  two  thou-
    20  sand  seven  and at the beginning of each fiscal year thereafter, if the
    21  state comptroller finds that the total amount to the credit of the  fund
    22  as of the first day of the previous month is in excess of the sum of one
    23  million  dollars,  he  shall  advise  the [chairman] chair of the senate
    24  finance committee, the [chairman] chair of the assembly ways  and  means

    25  committee  and  the  director  of the budget of such findings, and shall
    26  within thirty days thereafter transfer to the general fund of the  state
    27  a sum equal to the amount of such excess.
    28    § 20. Subdivision 4 of section 92-a of the state finance law, as added
    29  by chapter 53 of the laws of 1985, is amended to read as follows:
    30    4.  In  the budget bills accompanying the budget for each state fiscal
    31  year beginning on or after April first, nineteen hundred eighty-six  but
    32  prior  to  [April]  May  first,  two  thousand seven, the governor shall
    33  recommend an appropriation to be made to the account established by this
    34  section during the ensuing fiscal year from any moneys  in  the  general
    35  fund  to  the credit of the local assistance account. The amount of such
    36  recommended appropriation shall be an amount that  the  governor  deter-

    37  mines  to be appropriate based on the economic condition of the state at
    38  such time, his prognosis as to the condition of the state economy during
    39  the ensuing fiscal year, [his] estimates of all the  state  expenditures
    40  that  are  necessary  to  be  made for other purposes during the ensuing
    41  fiscal year, and [his] projections of all the revenues and  moneys  that
    42  are  likely  to be available therefor. No moneys shall be paid into such
    43  fund until a certificate of approval by the director of the  budget  has
    44  been  filed  with  the [chairmen] chairs of the senate finance committee
    45  and the assembly ways and means committee.
    46    § 21. Subdivision 4 of section 94 of the state finance law, as amended
    47  by chapter 190 of the laws of 1990, is amended to read as follows:

    48    4. On or before [April] May twentieth in each year[,  commencing  with
    49  April  twentieth,  nineteen hundred ninety-one], the chief administrator
    50  shall determine and certify to the comptroller the  difference  between:
    51  (a)  the aggregate receipts derived by the state from the fees specified
    52  in paragraph (e) of subdivision two of section thirty-nine of the  judi-
    53  ciary  law  during  the  fiscal year ending the preceding [March thirty-
    54  first] April thirtieth plus all interest paid  to  the  commissioner  of
    55  taxation  and  finance  during  such fiscal year pursuant to section one
    56  hundred eighty-two of this  chapter,  and  (b)  the  aggregate  receipts

        S. 2                               13
 
     1  derived  by the state from the fees specified in paragraph (e) of subdi-

     2  vision two of section thirty-nine of the judiciary law during the  state
     3  fiscal  year  commencing  April first, nineteen hundred eighty-six. One-
     4  half  of the amount of such difference shall thereupon be transferred by
     5  the comptroller from the general fund to the court facilities  incentive
     6  aid fund.
     7    § 22. Subdivision 4 of section 99-d of the state finance law, as added
     8  by chapter 474 of the laws of 1996, is amended to read as follows:
     9    4.  Notwithstanding  section  forty  of  this  chapter  or  any  other
    10  provision of law, appropriations of this fund  shall  be  available  for
    11  liabilities  incurred  during and after the close of the fiscal year for
    12  which such appropriations are enacted, provided however that such appro-
    13  priations shall lapse  on  the  fifteenth  day  of  [September]  October

    14  following  the  close of the fiscal year, and no monies shall thereafter
    15  be paid out of the state treasury or any of its funds or the funds under
    16  its management pursuant to such appropriations.
    17    § 23. Subdivision 2 of section 99-e of the state finance law, as added
    18  by chapter 309 of the laws of 1996, is amended to read as follows:
    19    2. Such account shall consist (a) of any and all unexpended and  unen-
    20  cumbered  moneys  received  by  the  state  university  of New York from
    21  tuition, fees, user charges, or other sources  and  deposited  into  the
    22  income  offset  account,  and  (b)  any other undisbursed balance of the
    23  general fund appropriation as of the last day of  the  state  university
    24  fiscal  year  as  reduced pursuant to subparagraph six of paragraph c of
    25  subdivision four of section three hundred fifty-five  of  the  education

    26  law  to  reflect any aggregate amount established by the director of the
    27  budget less than the amount appropriated. Such moneys  shall  be  trans-
    28  ferred  by  the  state  comptroller into the stabilization account on or
    29  before [September] October fifteenth within thirty days of such date. In
    30  addition, all or a portion  of  the  account  balances  in  other  state
    31  university  income  accounts,  except  the dormitory income reimbursable
    32  account, shall be transferred by the state comptroller, at  the  request
    33  of the state university, to the stabilization account.
    34    §  24.  Subdivision  a  of  section 1615 of the tax law, as amended by
    35  chapter 170 of the laws of 1994, is amended to read as follows:
    36    a. All books, accounts and records of the division,  relating  to  the
    37  state  lottery, shall be kept by fiscal years beginning on the first day

    38  of [April] May and ending on the [thirty-first] thirtieth day of [March]
    39  April next following. The division shall separately identify the  actual
    40  sales  receipts, prizes, appropriations and expenditures for advertising
    41  and promotions, reserves and the interest thereon by type by  game,  and
    42  the  source  and  use  of  unclaimed  prize  funds by type by game on an
    43  accrual and cash basis where both are available and  on  an  accrual  or
    44  cash basis where both are not available.
    45    § 25. Section 17.03 of the parks, recreation and historic preservation
    46  law is amended to read as follows:
    47    §  17.03  Allocation of monies.  The monies received by the state from
    48  the sale of bonds sold pursuant to the  outdoor  recreation  development
    49  bond  act  shall  be expended pursuant to appropriations for (1) marine,

    50  (2) park, (3) historic site and (4) forest recreation projects, and  for
    51  (5)  municipal  park  projects  in  New York city and (6) municipal park
    52  projects outside New York City. The director of the budget shall certify
    53  to the state comptroller on the first day of [April] May  of  each  year
    54  that  portion  of  the  outdoor recreation development bond act authori-
    55  zation estimated to be expended in the ensuing fiscal year for  each  of
    56  the  above  purposes  in fulfillment of capital construction development

        S. 2                               14
 
     1  appropriations, and proceeds of the sale of outdoor recreation  develop-
     2  ment bonds shall be so allocated. Such certification may be amended from
     3  time  to  time by the director of the budget. The director of the budget

     4  shall  file  a  copy of such certificate and each amendment thereof with
     5  the [chairman] chair of the senate finance committee, and the [chairman]
     6  chair  of the assembly ways and means committee.
     7    § 26. Subdivision 1 of section 27.15  of  the  parks,  recreation  and
     8  historic  preservation  law,  as  amended  by chapter 400 of the laws of
     9  1973, is amended to read as follows:
    10    1. Every county, city, town or village  enforcing  the  provisions  of
    11  this  chapter relating to snowmobiles shall be entitled to receive state
    12  aid as hereinafter provided. A county, city,  town  or  village  seeking
    13  reimbursement  for expenditures incurred in enforcement of this article,
    14  including expenditures incurred for signs and  markers  therefor,  shall
    15  submit  to the commissioner by January first of each year an estimate of

    16  such expenditures for the current fiscal year, in such form and contain-
    17  ing such information as the commissioner may require. Within  one  month
    18  after  the  close  of  the  fiscal year, each such county, city, town or
    19  village shall submit to  the  commissioner  a  statement  of  authorized
    20  expenditures  actually incurred, in such form and containing such infor-
    21  mation as he may require. For the purpose of this section, "fiscal year"
    22  shall mean the period from [April]  May  first  through  [March  thirty-
    23  first] April thirtieth.
    24    §  27.  Subdivision  3  of  section 27.17 of the parks, recreation and
    25  historic preservation law, as amended by section 2 of part G of  chapter
    26  82 of the laws of 2002, is amended to read as follows:
    27    3. Every county or, where applicable, any city, town or village within

    28  such county, shall be eligible for a grant for the development and main-
    29  tenance  of  a  system  of snowmobile trails and a program with relation
    30  thereto within its boundaries. Such grants shall be made by the  commis-
    31  sioner  and may constitute up to one hundred percent of the cost of such
    32  program including expenditures incurred for signs and markers of snowmo-
    33  bile trails. Any county or, where applicable, any city, town or  village
    34  within  such county, applying for such grant shall submit to the commis-
    35  sioner by September first of each year an estimate of such  expenditures
    36  for  the  current fiscal year, in such form and containing such informa-
    37  tion as the commissioner may require.   No city,  town  or  village  may
    38  apply  for  such grant where the county within which it is contained has
    39  submitted an application for the same fiscal year. For  the  purpose  of

    40  this section, "fiscal year" shall mean the period from [April] May first
    41  through  [March  thirty-first] April thirtieth.   The commissioner shall
    42  review all such applications and shall determine the amount of state aid
    43  to be allocated to each county or, where applicable, any city,  town  or
    44  village within such county in accordance with the provisions of subdivi-
    45  sion  five  of  this  section. Of the amount the commissioner determines
    46  each county or, where applicable, any city, town or village within  such
    47  county  is  eligible to receive, seventy percent shall be made available
    48  for distribution by November first and thirty percent  for  distribution
    49  upon  demonstration  of  completion,  submitted  by  June  first, of the
    50  program.
    51    § 28. Subdivision 3 of section 551 of the labor law, as added by chap-

    52  ter 705 of the laws of 1944, is amended to read as follows:
    53    3. Payment of administrative expenses. The total  amount  of  expenses
    54  incurred  by  the  commissioner in connection with the administration of
    55  this article and such proportion of the total  expenses  of  maintaining
    56  the  public employment offices as established under this chapter and for

        S. 2                               15
 
     1  the purposes of this article, as shall be determined to be necessary and
     2  required by the provisions of this  article  and  so  certified  by  the
     3  commissioner,  shall,  upon  audit by the comptroller, be disbursed from
     4  the  unemployment  administration fund. Annually, as soon as practicable
     5  after [April] May first, the  commissioner  and  the  comptroller  shall
     6  ascertain  the total amount of such expenses incurred during the preced-

     7  ing fiscal year. An itemized statement of the total expenses  so  ascer-
     8  tained  shall  be open to public inspection in the office of the commis-
     9  sioner after notice in an official publication of  the  department.  All
    10  disbursements  from such fund shall be made by the commissioner of taxa-
    11  tion and finance on the warrant of the comptroller.
    12    § 29. Subdivision d of section 16-a of the retirement and social secu-
    13  rity law, as added by chapter 33 of the laws of 1986, is amended to read
    14  as follows:
    15    d. On or before October fifteenth of nineteen hundred  eighty-six  and
    16  each  succeeding  year  during  the amortization period, the comptroller
    17  shall file with the director of the budget an estimate of the amount  of
    18  the  annual  payment required to be made pursuant to this section in the

    19  state fiscal year beginning the first day of [April] May next succeeding
    20  such October fifteenth.
    21    § 30. Subdivision a of section 316 of the retirement and social  secu-
    22  rity  law,  as  amended by chapter 33 of the laws of 1986, is amended to
    23  read as follows:
    24    a. Upon the basis of each annual  actuarial  valuation  and  appraisal
    25  provided  for  in  this  article,  the  comptroller,  on  or  before the
    26  fifteenth day of October of each year, shall prepare and file  with  the
    27  director  of the budget an itemized estimate of the amounts necessary to
    28  be appropriated by the state to the pension accumulation  fund  and  the
    29  New  York state public employees group life insurance plan, as appropri-
    30  ate. Such itemized estimate may be revised on or before December thirti-
    31  eth of each such year. Such amounts shall be sufficient to  provide  for

    32  payment  in  full  for  (i)  the succeeding fiscal year of all estimated
    33  obligations of the state to the [policemen's  and  firemen's]  New  York
    34  state  and  local police and fire retirement system; and (ii) any actual
    35  obligations of the state to such retirement  system,  remaining  unpaid,
    36  plus  interest  on such amount, for the fiscal year ending on the [March
    37  thirty-first] April thirtieth preceding such  date;  provided,  however,
    38  that  such  estimate of actual obligations shall be made commencing with
    39  the filings due on October fifteenth,  [nineteen  hundred  eighty-seven]
    40  two  thousand  six  and  thereafter.  If,  as  a  result of the estimate
    41  required to be made pursuant to clause (i) of  the  preceding  sentence,

    42  the state overpaid its actual obligation to the retirement system in any
    43  year,  the  amount  estimated in the filing required by this subdivision
    44  next succeeding such overpayment shall reflect the amount of such  over-
    45  payment,  plus  interest  on such amount, as a reduction in amounts that
    46  would otherwise be estimated to be due the retirement  system  from  the
    47  state. An item of appropriation which shall be sufficient to provide for
    48  such obligations shall be included in the next annual appropriation bill
    49  when  it  is  presented  to  the legislature for passage. The amounts so
    50  appropriated or so much thereof as may be required shall  be  paid  from
    51  the  state treasury on warrant of the comptroller into the pension accu-
    52  mulation fund and the New York state public employees group life  insur-
    53  ance plan, as appropriate, on March first of each state fiscal year. For

    54  the  purposes  of this section, interest shall mean the rate or rates of
    55  interest used in the actuarial valuations covering the  period  of  time
    56  over which such interest is computed.

        S. 2                               16
 
     1    §  31.  Subdivision  d  of  section 316-a of the retirement and social
     2  security law, as added by chapter 33 of the laws of 1986, is amended  to
     3  read as follows:
     4    d. On or before October fifteenth of [nineteen hundred eighty-six] two
     5  thousand  six  and  each succeeding year during the amortization period,
     6  the comptroller shall file with the director of the budget  an  estimate
     7  of the amount of the annual payment required to be made pursuant to this
     8  section  in the state fiscal year beginning the first day of [April] May

     9  next succeeding such October fifteenth.
    10    § 32. The legislative law is amended by adding a new  article  4-B  to
    11  read as follows:
    12                                 ARTICLE 4-B
    13                  NEW YORK STATE INDEPENDENT BUDGET OFFICE
    14  Section 75. Powers  and  duties of the New York state independent budget
    15                office.
    16          76. Director of the New York state independent budget office.
    17    § 75. Powers and duties of  the  New  York  state  independent  budget
    18  office.   There shall hereby be established a New York state independent
    19  budget office. 1. It shall be the duty of the New York state independent
    20  budget office to provide the members and committees of  the  legislature

    21  with  information  which  will  assist  such officials and bodies in the
    22  discharge of their responsibilities which are related to  the  budgetary
    23  process including:
    24    (a)  information  with respect to the budget, appropriations bills and
    25  proposed laws with fiscal implications;
    26    (b) information with respect to estimated revenues and  receipts,  and
    27  changing revenue conditions; and
    28    (c)  to  the extent practicable, such other information or analyses as
    29  may be requested by such officials and bodies.
    30    Requests made by the speaker of the assembly, the temporary  president
    31  of  the  senate,  the chair of the assembly ways and means committee and
    32  the chair of the senate finance committee regarding the budget, revenues

    33  and expenditures shall receive priority attention.
    34    2. The independent budget office may complete a fiscal  impact  state-
    35  ment:
    36    (a)  for any bill at the request of the speaker of the assembly or the
    37  temporary president of the senate; and
    38    (b) at the request of committee chairs for any bill referred to  their
    39  respective  committees.  Fiscal  impact  statements  shall  estimate the
    40  impact on state revenues or expenditures.
    41    3. The independent budget office may publish a report with respect  to
    42  the  expected  levels of state revenues by the first day of January, the
    43  first day of April, the first day of July and the first day  of  October
    44  of each year.

    45    4.  The  independent budget office may prepare an economic and revenue
    46  forecast in time for its  review  by  the  conveners  of  the  consensus
    47  economic  and  revenue  forecasting  conference in the month of March of
    48  each year.
    49    5. The independent budget office may publish by December first of each
    50  year a report analyzing the fiscal outlook of the  state  for  the  next
    51  three years.
    52    6.  The independent budget office may, from time to time, publish such
    53  reports as may be appropriate to enhance the official and public  under-
    54  standing of the budgetary process and of the budget documents.

        S. 2                               17
 
     1    7.  All  studies and reports prepared by the independent budget office

     2  shall be made available to the public and shall also be  made  available
     3  by electronic means over the internet.
     4    § 76. Director of the New York state independent budget office. 1. The
     5  New  York  state independent budget office shall be headed by a director
     6  who shall be jointly appointed by the speaker of the  assembly  and  the
     7  temporary president of the senate.
     8    2.  (a) There shall be an independent budget office advisory committee
     9  consisting of (i) one person appointed by each of  the  following  offi-
    10  cials  and  who shall serve at the pleasure of such officials; the chair
    11  and ranking member of the assembly ways  and  means  committee  and  the
    12  chair  and  ranking member of the senate finance committee, and (ii) six

    13  other members jointly appointed by the speaker of the assembly  and  the
    14  temporary  president  of the senate, who shall serve for two year terms.
    15  The members shall all be individuals with extensive experience and know-
    16  ledge in the fields of finance, economics, accounting,  public  adminis-
    17  tration  and  public  policy  analysis including at least one nationally
    18  recognized expert in the fields of budget theory and the budget process;
    19  one dean or director or former dean or director of a graduate school  of
    20  business administration located in New York state; one officer or former
    21  officer  or  economic  advisor  of  a labor union; one officer or former
    22  officer or economic advisor to a business corporation; and  one  officer

    23  or  former  officer  of a civic or public interest advocacy organization
    24  involved in budget matters.
    25    (b) The independent budget office advisory committee may assist in the
    26  development of guidelines for the  best  practices  of  the  independent
    27  budget  office.  The  independent budget office advisory committee shall
    28  meet annually.  In the event of a vacancy, the committee  shall  provide
    29  to the speaker of the assembly and the temporary president of the senate
    30  a list of qualified candidates for the position of director.
    31    (c)  Members  of  the advisory committee shall receive no compensation
    32  but shall be reimbursed for reasonable expenses incurred  in  connection
    33  with their duties.

    34    3.  The  director  of the independent budget office shall be appointed
    35  without regard to political affiliation  and  solely  on  the  basis  of
    36  fitness to perform the duties assigned by this article. The initial term
    37  of office of the first director shall be three years commencing on Janu-
    38  ary  first,  two thousand six, and the subsequent terms of office there-
    39  after shall be for two years  commencing  January  first,  two  thousand
    40  nine.    Any individual appointed to fill a vacancy prior to the expira-
    41  tion of a term shall serve only for the unexpired portion of such  term.
    42  An  individual  serving  as  director  at the expiration of the term may
    43  continue to serve until a successor is appointed.

    44    4. The director of the independent budget office  shall  appoint  such
    45  personnel  and  procure  the  services  of such experts and consultants,
    46  within the appropriations available therefor, as may  be  necessary  for
    47  such director to carry out the duties and functions assigned pursuant to
    48  this  article.  Such  personnel and experts shall perform such duties as
    49  may be assigned to them by the director.
    50    5. The director of the independent budget office shall  be  authorized
    51  to secure such information, data, estimates and statistics directly from
    52  the agencies of the state as the director determines to be necessary for
    53  the  performance  of  the functions and duties of the independent budget

    54  office, and such agencies shall provide such  information  in  a  timely
    55  fashion. Such director shall not be entitled to obtain records which are

        S. 2                               18
 
     1  protected by the privileges for attorney-client communications, attorney
     2  work product and material prepared for litigation.
     3    §  33.  Section 22 of the state finance law is amended by adding a new
     4  subdivision 16 to read as follows:
     5    16. a.  With respect to appropriations for any information  technology
     6  project  involving  one  or  more  contracts  and totalling five million
     7  dollars or more proposed for funding in the budget submitted annually by
     8  the governor to the legislature, the amount requested to fund each  such

     9  project  shall  be  set  forth  as  a  separate  item  of appropriation.
    10  Notwithstanding any provision of law to the contrary, such appropriation
    11  or a portion thereof shall be made available only upon the submission to
    12  the director of the budget, the chair of the  senate  finance  committee
    13  and  the  chair  of  the assembly ways and means committee, of a project
    14  design, development and implementation plan prepared by the commissioner
    15  of the lead agency for the project.  Such plan shall include, but not be
    16  limited to, a schedule for the design, development and implementation of
    17  the project that identifies  functional  design  components,  specifica-
    18  tions,  and  requirements, key milestones, timetable, the estimated cost

    19  of each phase of the project and weighs the appropriateness of  discrete
    20  technical and functional project components. The plan shall document the
    21  rationale for project scope and method of procurement, including whether
    22  the  project  will  be  procured  as  a  single  contract or as separate
    23  contracts of discrete technical and functional components. Any  expendi-
    24  ture  made  pursuant  to  such appropriation shall be in accordance with
    25  such plan.
    26    b. Within thirty days following the submission of the  budget  by  the
    27  governor  for each fiscal year, beginning with the two thousand six--two
    28  thousand seven fiscal year, the director of the budget shall transmit to
    29  the chairs of the senate finance committee and  the  assembly  ways  and

    30  means committee a report which includes project specific information for
    31  the  proposed  appropriations identified in paragraph a of this subdivi-
    32  sion and any other projects which appear as separate items of  appropri-
    33  ation. Such report shall set forth:
    34    (1)  existing  or anticipated contracts, including the agency or agen-
    35  cies which let or anticipate letting such contracts;
    36    (2) vendor name when available;
    37    (3) a description of the project and contract  purpose  in  less  than
    38  thirty words;
    39    (4)  whether  such  contracts are or are anticipated to be centralized
    40  contracts;
    41    (5) anticipated lifetime contract costs, broken down by fiscal year;

    42    (6) contract amendments and/or change orders for  the  current  fiscal
    43  year, including value if any and reasons therefor;
    44    (7)  the estimated date of contract completion, including annual time-
    45  table for a multi-year contract and any change in such  timetable  since
    46  the previous report and the reasons therefor;
    47    (8)  the  total  of  all  expenditures on such specific contracts made
    48  prior to the then current fiscal year, including all agencies which have
    49  incurred such costs including  when  expenditures  are  made  off  of  a
    50  centralized contract;
    51    (9)  the total amount of expenditures on such specific contracts esti-
    52  mated to be made during the then current fiscal year and during each  of

    53  the  next  ensuing five fiscal years for multi-year contracts, including
    54  all agencies which have incurred such costs including when  expenditures
    55  are made off of a centralized contract;

        S. 2                               19
 
     1    (10)  whether such project is financed by the issuance of certificates
     2  of participation or similar instruments and the associated costs related
     3  thereto; and
     4    (11)  such  other information as necessary to fully describe the state
     5  obligation with regard to such specific or anticipated contracts.
     6    § 34. The state finance law is amended by adding a new section 2-b  to
     7  read as follows:
     8    §  2-b.  Additional  definition.  As  used  in  subdivision sixteen of

     9  section twenty-two of this chapter, the  term  "information  technology"
    10  shall  mean  a  good,  service  or  good  and  service that results in a
    11  digital, electronic or similar technical method of achieving a practical
    12  purpose or in improvements in productivity, including but not limited to
    13  information management, equipment, software, operating  systems,  inter-
    14  face  systems,  interconnected systems, telecommunications, data manage-
    15  ment, networks, and network management,  consulting,  supplies,  facili-
    16  ties, maintenance and training.
    17    §  35.  Section 23 of the state finance law is amended by adding a new
    18  subdivision 7 to read as follows:
    19    7. Revision of information. Information required by subdivisions  one,

    20  three, seven, ten, eleven, twelve, and thirteen of section twenty-two of
    21  this article shall be revised to reflect legislative action on the exec-
    22  utive budget and on the contingency budget and shall be presented to the
    23  legislature  and  the  public  within  thirty  days of final legislative
    24  action on appropriation bills, not including any deficiency bill.
    25    § 36. Subdivisions 3 and 4 of section 92 of the state finance law,  as
    26  separately  amended  by  chapters  405  and 957 of the laws of 1981, are
    27  amended to read as follows:
    28    3. At the close of each fiscal year any cash surplus remaining in  the
    29  general  fund  over  and  above  the  norm for such fiscal year shall be
    30  transferred from or retained in such fund as hereinafter in this  subdi-
    31  vision  provided.  There  shall  be transferred to the tax stabilization

    32  reserve fund all of such surplus moneys, up to and including  an  amount
    33  equivalent  to  two-tenths  of  one per centum of such norm, unless such
    34  transfer would increase such reserve fund to  an  amount  in  excess  of
    35  [two]  three  per centum of the amount of the norm for such fiscal year,
    36  in which event such transfer shall be limited to  such  amount  as  will
    37  increase  such  reserve  fund to such [two] three per centum limitation.
    38  Any balance of such surplus moneys, thereafter remaining in the  general
    39  fund,  shall be retained in such fund and be available for the reduction
    40  of state taxes.
    41    4. In the event that at the close of  any  fiscal  year  the  receipts
    42  derived  from  the  taxes,  fees  and other sources, required to be paid
    43  during such fiscal year into the general fund of the  state  shall  fall

    44  below the norm for such fiscal year, there shall be transferred from the
    45  tax  stabilization  reserve  fund to the general fund to the extent that
    46  there are sufficient moneys in the tax stabilization  reserve  fund,  an
    47  amount  equal  to the difference between the norm and the amount of such
    48  receipts. If such transfer reduces the tax stabilization reserve fund to
    49  an amount less than [two] three per centum of the norm for  such  fiscal
    50  year,  the  amount  so  transferred shall be repaid in cash prior to the
    51  computation and payment of any transfer to the fund pursuant to subdivi-
    52  sion three of this section in not less than three equal annual  install-
    53  ments within the period of six years or less next succeeding the date of
    54  such  transfer;  provided,  however, that if any such annual installment

    55  shall increase such reserve fund to an amount in excess of  [two]  three
    56  per  centum  of the amount of the norm for the then current fiscal year,

        S. 2                               20
 
     1  such installment shall be limited to such amount as will  increase  such
     2  reserve  fund  to  such [two] three per centum limitation and no further
     3  repayment of the whole or any part of such transfer shall be required in
     4  any  subsequent fiscal year. Repayments to the tax stabilization reserve
     5  fund shall be stipulated in annual budget bills.
     6    § 37. The state finance law is amended by adding a new  section  92-dd
     7  to read as follows:
     8    §  92-dd. Fiscal stabilization reserve fund. 1. There is hereby estab-
     9  lished in the state treasury a fund to be known as the fiscal stabiliza-

    10  tion reserve fund. Such fund shall consist of moneys  deposited  therein
    11  and  monies  shall  be withdrawn from such fund only for the purposes as
    12  provided therein.
    13    2. For each fiscal year commencing on or after April first, two  thou-
    14  sand  six,  an  amount  shall  be  transferred from the general fund and
    15  deposited in the fiscal stabilization reserve fund which shall be calcu-
    16  lated as two-tenths of one per centum of all moneys deposited  into  the
    17  state  treasury  excluding  federal  funds,  fiduciary  funds  and  bond
    18  proceeds, during the immediately preceding fiscal year  reduced  by  the
    19  amount  that  the sum of the balance of the fund at the beginning of the
    20  fiscal year and two-tenths of one per centum of all the moneys deposited

    21  into the state treasury during the  immediately  preceding  fiscal  year
    22  exceeds  three  per centum of the moneys deposited in the state treasury
    23  excluding federal funds, fiduciary funds  and  bond  proceeds  deposited
    24  into the state treasury during the immediately preceding fiscal year.
    25    3.  Moneys available in the fiscal stabilization reserve fund shall be
    26  withdrawn from the fund and transferred  to  the  general  fund  in  any
    27  subsequent  fiscal  year  for  the  payment  of  education aid to school
    28  districts and boards of  cooperative  educational  services  during  the
    29  first  two months of the state fiscal year for each year beginning on or
    30  after May first, two thousand seven and for other purposes in the amount

    31  jointly certified as necessary by the governor, the temporary  president
    32  of  the  senate  and  speaker  of the assembly, provided that the amount
    33  transferred shall not exceed the  amount  of  moneys  available  in  the
    34  fiscal  stabilization  reserve fund. Any transfers from the fund for the
    35  payment of education aid to school districts and boards  of  cooperative
    36  education  shall  be  repaid  in the subsequent fiscal year. If an addi-
    37  tional transfer reduces the fiscal  stabilization  reserve  fund  to  an
    38  amount  less  than three per centum of the moneys deposited in the state
    39  treasury excluding  federal funds, fiduciary funds and bond proceeds for
    40  such fiscal year, the amount so transferred  shall  be  repaid  in  cash

    41  prior  to the computation and payment of any transfer to the fund in not
    42  less than three equal annual installments within the period of six years
    43  or less next succeeding the date of such  transfer;  provided,  however,
    44  that  if any such annual installment shall increase such reserve fund to
    45  an amount in excess of three per centum of  the  amount  of  the  moneys
    46  deposited in the state treasury excluding federal funds, fiduciary funds
    47  and  bond  proceeds  for  the then current fiscal year, such installment
    48  shall be limited to such amount as will increase such  reserve  fund  to
    49  such  three  per centum limitation and no further repayment of the whole
    50  or any part of such transfer shall be required in any subsequent  fiscal
    51  year.

    52    § 38. Section 22 of the state finance law is amended by adding two new
    53  subdivisions 14 and 15 to read as follows:
    54    14.  (a)  Include  a  current services estimate projecting the cost of
    55  continuing levels of activities and programs authorized for the  current

        S. 2                               21
 
     1  state  fiscal year as well as provisions of law scheduled to take effect
     2  through the conclusion of the ensuing state fiscal year.
     3    Calculation  of current services projections shall include, but not be
     4  limited to, the following elements:
     5    (1) Adjustments for authorized interchanges, transfers  and  deficien-
     6  cies;
     7    (2) Adjustments for annualization, or the full year cost of implement-

     8  ing current state fiscal year budget actions, especially new initiatives
     9  which received partial year funding;
    10    (3) Elimination of non-recurring costs;
    11    (4)  Adjustments  for  inflation costs associated with meeting nonper-
    12  sonal service expenditures;
    13    (5) Adjustments for negotiated personal service contractual agreements
    14  and related fringe benefit costs; and
    15    (6) Adjustments for currently enacted statutory changes  scheduled  to
    16  take  effect  in  the  current or ensuing state fiscal year, entitlement
    17  growth, and population driven service delivery growth.
    18    (b) Current service projections shall be presented in  a  standardized
    19  tabular  format  showing  a comparison with current year appropriations,

    20  current year adjusted appropriations and appropriations  recommended  by
    21  the  governor  for  the  following  state fiscal year. These comparisons
    22  shall be made at the following level of detail, where applicable, and in
    23  the following order:
    24    (1) Program;
    25    (2) Purpose which shall include state  operations,  local  assistance,
    26  and capital projects;
    27    (3)  Fund  type  which  shall  include general fund, special revenue -
    28  other funds, capital project  funds,  debt  service  funds  and  federal
    29  funds; and
    30    (4)  Object  level  which  shall include personal service, nonpersonal
    31  service, and maintenance undistributed.
    32    (c) Accompanying the standardized tabular comparison shall be a  brief

    33  narrative  description  of  the  effects  of  the governor's recommended
    34  appropriations on the current services estimate.
    35    15. Include a contingency  budget  estimate  projecting  the  cost  of
    36  activities and programs authorized during the current fiscal year.
    37    Calculation  of a contingency budget shall include, but not be limited
    38  to:
    39    (a) Level of appropriations and reappropriations  enacted  during  the
    40  current fiscal year;
    41    (b) Level of disbursements authorized during the current fiscal year;
    42    (c)  Adjustments for related statutory spending and revenue provisions
    43  which would remain in effect;
    44    (d) Adjustments for exceptions to contingency limits provided  for  in

    45  subdivision three of section twenty-four-a of this article.
    46    § 39. This act shall take effect immediately, provided, however, that:
    47    1.  Sections  one through thirty-five and section thirty-eight of this
    48  act shall take effect on the same date as amendments made by  a  concur-
    49  rent  resolution  entitled  a  "Concurrent  Resolution of the Senate and
    50  Assembly proposing amendments to  articles  IV  and  VII  of  the  state
    51  constitution in relation to the submission of the budget to the legisla-
    52  ture by the governor", take effect; and
    53    2.  Sections thirty-six and thirty-seven of this act shall take effect
    54  three years after the  date  on  which  it  shall  have  become  a  law;
    55  provided,  however, that in the event that a concurrent resolution enti-
    56  tled "Concurrent Resolution of the Senate and Assembly proposing  amend-


        S. 2                               22
 
     1  ments  to  articles  IV  and VII of the constitution, in relation to the
     2  submission of the budget to the legislature by the  governor"  fails  to
     3  become  a part of the constitution pursuant to the provisions of section
     4  1 of article XIX of the constitution then this act shall not take effect
     5  and  the  amendments  to subdivisions 3 and 4 of section 92 of the state
     6  finance law made by section thirty-six of this act and section 92-dd  of
     7  the state finance law as added by section thirty-seven of this act shall
     8  be deemed repealed.
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