Relates to the submission of the budget to the legislature by the governor and requires that copies of the release of agency budget requests furnished to the executive be made available to the legislature and the public; authorizes a contingency budget to take effect in certain circumstances; reduces the amount of time during which the governor may amend the executive budget without consent of the legislature from 30 to 21 days; creates a fiscal stabilization reserve fund.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2
SPONSOR: Silver (MS)
 
TITLE OF BILL: CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing amendments to articles IV and VII of the constitution, in
relation to the submission of the budget to the legislature by the
Governor
 
PURPOSE OF BILL:
This bill would change the constitution to provide for reforms to the
budget process including advancing and opening up the process, estab-
lishing a contingency budget and creating reserve funds.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Requires that copies of the release of agency budget requests
furnished to the Executive be made available to the Legislature and the
public.
Section 2. Requires an earlier submission of the Executive Budget to be
on or before January 15th, or February first for a newly elected Gover-
nor.
Section 3. Reduces the amount of time during which the Governor may
amend the Executive Budget without the consent of the Legislature from
30 to 21 days.
Section 4. Requires that no appropriation bill submitted by the Governor
and acted upon by the Legislature would become law until all of the
appropriation bills submitted by the Governor are acted upon by the
Legislature. The debt service appropriation bill, however, would become
law upon passage by the Legislature. The Governor would maintain exist-
ing approval authority over items added to his original appropriation
bills.
Sections 5, 6 and 7. Provides for the establishment of a contingency
budget to take effect automatically on the first day of the fiscal year,
in the event that the Legislature has not acted upon all of the budget
bills submitted by the Governor. The time during which the contingency
budget remains in effect would be known as the "contingency period".
Section 8. Creates a fiscal stabilization reserve fund to provide
adequate funding for May and June school aid payments and provide
reserves for use in the upcoming fiscal year.
Section 9. Effective date.
 
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
Amends Article VII of constitution: section 1 for departmental esti-
mates; sections 2 and 3 for budget submission; sections 4, 5, and 6 for
establishing a contingency budget; section 17 for the fiscal stabiliza-
tion reserve fund.
Amends Article IV of the constitution: section 4 in relation to contin-
gency budget.
 
JUSTIFICATION:
These amendments to the constitution along with companion legislation
amending the State Finance Law are part of a comprehensive plan to over-
haul and restructure the budget process, so that state budgets are more
open and timely.
 
PRIOR LEGISLATIVE HISTORY:
Passed both houses of the Legislature in 2004.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Savings to state and local governments accruing from an improved state
budget process.
 
EFFECTIVE DATE:
These amendments would be submitted to the voters after passage by both
houses of the Legislature in 2005 or 2006 and would become effective
with their approval.
STATE OF NEW YORK
________________________________________________________________________
2
2005-2006 Regular Sessions
IN ASSEMBLY(Prefiled)
January 5, 2005
___________
Introduced by M. of A. SILVER, FARRELL, DESTITO, GRANNIS, JOHN, TOKASZ,
GALEF, ESPAILLAT -- Multi-Sponsored by -- M. of A. ABBATE, AUBERTINE,
AUBRY, BING, BOYLAND, BRADLEY, BRENNAN, BRODSKY, CAHILL, CANESTRARI,
CHRISTENSEN, CLARK, A. COHEN, M. COHEN, COLTON, COOK, CUSICK, CYMBROW-
ITZ, DelMONTE, L. DIAZ, DiNAPOLI, DINOWITZ, EDDINGTON, ENGLEBRIGHT,
FIELDS, GANTT, GIANARIS, GLICK, GORDON, GOTTFRIED, GREENE, GUNTHER,
HEASTIE, JACOBS, KARBEN, KOON, LAFAYETTE, LATIMER, LAVELLE, LAVINE,
LENTOL, LIFTON, LUPARDO, MAGEE, MAGNARELLI, MARKEY, McENENY, McLAUGH-
LIN, MENG, MILLMAN, MORELLE, NOLAN, NORMAN, O'DONNELL, ORTIZ, PARMENT,
PAULIN, PEOPLES, PERALTA, PERRY, PHEFFER, POWELL, PRETLOW, RAMOS,
REILLY, P. RIVERA, ROBINSON, SANDERS, SCARBOROUGH, SCHROEDER, SEDDIO,
STRINGER, SWEENEY, TITUS, TONKO, TOWNS, WEINSTEIN, WEISENBERG, WEPRIN,
ZEBROWSKI -- read once and referred to the Committee on Ways and Means
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing amendments to articles IV and VII of the constitution, in
relation to the submission of the budget to the legislature by the
Governor
1 Section 1. Resolved (if the Senate concur), That section 1 of article
2 7 of the constitution be amended to read as follows:
3 Section 1. For the preparation of the budget, the head of each depart-
4 ment of state government, except the legislature and judiciary, shall
5 furnish the governor such estimates and information in such form and at
6 such times as the governor may require, and, at such times, shall forth-
7 with provide copies of [which shall forthwith be furnished] such esti-
8 mates and information to the appropriate committees of the legislature
9 and make such estimates and information available to the public. The
10 governor shall hold hearings thereon at which the governor may require
11 the attendance of heads of departments and their subordinates. Desig-
12 nated representatives of such committees shall be entitled to attend the
13 hearings thereon and to make inquiry concerning any part thereof.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD89067-01-5
A. 2 2
1 Itemized estimates of the financial needs of the legislature, certi-
2 fied by the presiding officer of each house, and of the judiciary,
3 approved by the court of appeals and certified by the chief judge of the
4 court of appeals, shall be transmitted to the governor not later than
5 the first day of December in each year for inclusion in the budget with-
6 out revision but with such recommendations as the governor may deem
7 proper. Copies of the itemized estimates of the financial needs of the
8 judiciary also shall forthwith be transmitted to the appropriate commit-
9 tees of the legislature.
10 § 2. Resolved (if the Senate concur), That section 2 of article 7 of
11 the constitution be amended to read as follows:
12 § 2. Annually, on or before the first day of February in each year
13 following the year [fixed by the constitution for the election of gover-
14 nor and lieutenant governor] in which a governor is elected, provided
15 such governor did not hold the office of governor at the time of the
16 election, and on or before [the second Tuesday following the first day
17 of the annual meeting of the legislature] January fifteenth, in all
18 other years, the governor shall submit to the legislature a budget
19 containing a complete plan of [expenditures] disbursements proposed to
20 be made before the close of the ensuing fiscal year and all moneys [and
21 revenues estimated] available and anticipated to be available and all
22 receipts estimated to be available therefor, together with an explana-
23 tion of the basis of such estimates and recommendations as to proposed
24 legislation, if any, which the governor may deem necessary to provide
25 moneys and [revenues] receipts sufficient to meet such proposed [expend-
26 itures] disbursements. It shall also contain such other recommendations
27 and information as the governor may deem proper and such additional
28 information as may be required by law.
29 § 3. Resolved (if the Senate concur), That section 3 of article 7 of
30 the constitution be amended to read as follows:
31 § 3. At the time of submitting the budget to the legislature the
32 governor shall submit a bill or bills containing all the proposed appro-
33 priations and reappropriations included in the budget and the proposed
34 legislation, if any, recommended therein.
35 The governor may at any time within [thirty] twenty-one days thereaft-
36 er and, with the consent of the legislature, at any time before the
37 adjournment thereof, amend or supplement the budget and submit amend-
38 ments to any bills submitted by him or her or submit supplemental bills.
39 The governor and the heads of departments shall have the right, and it
40 shall be the duty of the heads of departments when requested by either
41 house of the legislature or an appropriate committee thereof, to appear
42 and be heard in respect to the budget during the consideration thereof,
43 and to answer inquiries relevant thereto. The procedure for such appear-
44 ances and inquiries shall be provided by law.
45 § 4. Resolved (if the Senate concur), That section 4 of article 7 of
46 the constitution be amended to read as follows:
47 § 4. The legislature may not alter an appropriation bill submitted by
48 the governor except to strike out or reduce items therein, but it may
49 add thereto items of appropriation provided that such additions are
50 stated separately and distinctly from the original items of the bill and
51 refer each to a single object or purpose. None of the restrictions of
52 this section, however, shall apply to appropriations for the legislature
53 or judiciary.
54 [Such an] An appropriation bill making an appropriation or appropri-
55 ations solely for the purpose of meeting the legal requirements of the
56 state's debt service and lease purchase payments or other special
A. 2 3
1 contractual obligations shall, when passed by both houses, be [a] law
2 immediately without further action by the governor, except that separate
3 items added to the governor's bills by the legislature shall be subject
4 to the governor's approval as provided in section 7 of article IV.
5 Neither house of the legislature shall act on any other appropriation
6 bill submitted by the governor pursuant to sections 2 and 3 of this
7 article for the ensuing fiscal year after the beginning of such fiscal
8 year. Appropriation bills other than those making an appropriation or
9 appropriations solely for the purpose of meeting the legal requirements
10 of the state's debt service and lease purchase payments or other special
11 contractual obligations shall, when passed by both houses, be law with-
12 out further action by the governor only at such time as all other appro-
13 priation bills submitted by the governor pursuant to sections 2 and 3 of
14 this article have been voted upon by both houses before the beginning of
15 the fiscal year; provided, however, that appropriations for the legisla-
16 ture and judiciary and separate items added to the governor's bills by
17 the legislature shall be subject to approval of the governor as provided
18 in section 7 of article IV. In a year that a contingency budget takes
19 effect, appropriation bills submitted by the governor pursuant to
20 sections 2 and 3 of this article, and passed by both houses prior to the
21 beginning of the fiscal year shall automatically become law without
22 further action by the governor upon passage of a multiple appropriation
23 bill pursuant to section 5 of this article; provided, however, that
24 appropriations for the legislature and judiciary and separate items
25 added to the governor's bills by the legislature shall be subject to
26 approval of the governor as provided in section 7 of article IV.
27 § 5. Resolved (if the Senate concur), That section 5 of article 7 of
28 the constitution be amended to read as follows:
29 § 5. 1. Neither house of the legislature shall consider any other bill
30 making an appropriation until all the appropriation bills submitted by
31 the governor shall have been finally acted on by both houses, except on
32 message from the governor certifying to the necessity of the immediate
33 passage of such a bill. During a contingency period, as provided for in
34 subdivision two of this section, neither house of the legislature shall
35 consider any other appropriation bill except a multiple appropriation
36 bill altering the contingency budget.
37 2. A contingency budget, as provided for in statute, shall take effect
38 without further action by the legislature or the governor on the first
39 day of the fiscal year in the event the legislature has not finally
40 acted upon all the appropriation bills submitted by the governor for
41 such fiscal year. Such contingency budget shall constitute an act of
42 the legislature and final action upon all of the appropriation bills
43 submitted by the governor as herein described. The legislature may
44 consider and adopt alterations to the contingency budget through the
45 passage by both houses of the legislature of a single multiple appropri-
46 ation bill. Those provisions in the contingency budget not altered by
47 the legislature shall remain in effect until such provisions are
48 reenacted, repealed or superseded by subsequent legislation or the
49 commencement of the next fiscal year. Passage by both houses of the
50 legislature of such multiple appropriation bill shall constitute the
51 conclusion of the contingency period. After the legislature has ended
52 the contingency period, it may propose and consider a subsequent supple-
53 mental appropriation bill or, separate individual appropriation bill or
54 bills pursuant to section 6 of this article.
55 The contingency budget, except as otherwise provided by statute, shall
56 provide the same appropriations and reappropriations as enacted for the
A. 2 4
1 immediately preceding fiscal year and spending and revenue provisions in
2 effect for the immediately preceding fiscal year shall remain in effect
3 until the conclusion of the contingency period. Except as otherwise
4 provided in statute, aggregate disbursements authorized by appropri-
5 ations and reappropriations contained in the contingency budget for the
6 fiscal year shall not exceed aggregate disbursements made in the imme-
7 diately preceding fiscal year. No law modifying the disbursements
8 authorized by appropriations and reappropriations contained in the
9 contingency budget may become effective until three years from the date
10 of its enactment. During a contingency period, spending and revenue
11 provisions in legislation previously enacted that become effective in
12 the current fiscal year shall not take effect until the legislature has
13 passed a multiple appropriation bill.
14 § 6. Resolved (if the Senate concur), That section 6 of article 7 of
15 the constitution be amended to read as follows:
16 § 6. [Except] No appropriations shall be made except by separate bills
17 each for a single object or purpose, except for appropriations contained
18 in the bills submitted by the governor [and], or for appropriations in a
19 supplemental appropriation bill for the support of government, [no
20 appropriations shall be made except by separate bills each for a single
21 object or purpose] or in a separate multiple appropriation bill enacted
22 during the contingency budget period. All such bills [and such supple-
23 mental appropriation bill] shall be subject to the governor's approval
24 as provided in section 7 of article IV except unaltered provisions
25 contained within the multiple appropriation bill pursuant to subdivision
26 2 of section 5 of this article that were originally included in the
27 contingency budget, which shall remain law upon passage of such multiple
28 appropriation bill.
29 No provision shall be embraced in any appropriation bill submitted by
30 the governor or in such supplemental or multiple appropriation [bill]
31 bills unless it relates specifically to some particular appropriation in
32 the bill, and any such provision shall be limited in its operation to
33 such appropriation.
34 § 7. Resolved (if the Senate concur), That section 7 of article 4 of
35 the constitution be amended to read as follows:
36 § 7. Every bill which shall have passed the senate and assembly shall,
37 before it becomes a law, be presented to the governor; if the governor
38 approve, he or she shall sign it; but if not, he or she shall return it
39 with his or her objections to the house in which it shall have origi-
40 nated, which shall enter the objections at large on the journal, and
41 proceed to reconsider it. If after such reconsideration, two-thirds of
42 the members elected to that house shall agree to pass the bill, it shall
43 be sent together with the objections, to the other house, by which it
44 shall likewise be reconsidered; and if approved by two-thirds of the
45 members elected to that house, it shall become a law notwithstanding the
46 objections of the governor. In all such cases the votes in both houses
47 shall be determined by yeas and nays, and the names of the members
48 voting shall be entered on the journal of each house respectively. If
49 any bill shall not be returned by the governor within ten days (Sundays
50 excepted) after it shall have been presented to him or her, the same
51 shall be a law in like manner as if he or she had signed it, unless the
52 legislature shall, by their adjournment, prevent its return, in which
53 case it shall not become a law without the approval of the governor. No
54 bill shall become a law after the final adjournment of the legislature,
55 unless approved by the governor within thirty days after such adjourn-
56 ment. If any bill presented to the governor [contain] contains several
A. 2 5
1 items of appropriation of money, or includes alterations to the contin-
2 gency budget, the governor may object to one or more of such items while
3 approving of the other portion of the bill. In such case the governor
4 shall append to the bill, at the time of signing it, a statement of the
5 items to which he or she objects; and the appropriation so objected to
6 shall not take effect. If the legislature be in session, he or she shall
7 transmit to the house in which the bill originated a copy of such state-
8 ment, and the items objected to shall be separately reconsidered. If on
9 reconsideration one or more of such items be approved by two-thirds of
10 the members elected to each house, the same shall be part of the law,
11 notwithstanding the objections of the governor. All the provisions of
12 this section, in relation to bills not approved by the governor, shall
13 apply in cases in which he or she shall withhold approval from any item
14 or items contained in a bill appropriating money.
15 § 8. Resolved (if the Senate concur), That section 17 of article 7 of
16 the constitution be amended to read as follows:
17 § 17. The legislature may establish a fund or funds to aid in the
18 stabilization of the tax revenues of the state available for expenditure
19 or distribution in the current fiscal year. Any law creating such a
20 fund shall specify the tax or taxes to which such fund relates, and
21 shall prescribe the method of determining the amount of revenue from any
22 such tax or taxes which shall constitute a norm of each fiscal year.
23 Such part as shall be prescribed by law of any revenue derived from such
24 tax or taxes during a fiscal year in excess of such norm shall be paid
25 into such fund. No moneys shall at any time be withdrawn from such fund
26 unless the revenue derived from such tax or taxes during a fiscal year
27 shall fall below the norm for such year; in which event such amount as
28 may be prescribed by law, but in no event an amount exceeding the
29 difference between such revenue and such norm, shall be paid from such
30 fund into the general fund.
31 The legislature may establish a fund or funds known as the fiscal
32 stabilization reserve fund, available for expenditure or distribution in
33 a subsequent fiscal year. Any law creating such fund shall specify the
34 tax or taxes to which such fund relates, and shall prescribe the method
35 of determining the amount of revenue from any such tax or taxes which
36 shall be reserved. Such portion as shall be prescribed by law of any
37 revenue derived from such tax or taxes during a fiscal year shall be
38 paid into such fiscal stabilization reserve fund. No moneys shall at any
39 time be withdrawn from such fund unless the revenue derived from such
40 tax or taxes during a subsequent fiscal year shall fall below the amount
41 jointly certified as necessary by the governor, the temporary president
42 of the senate, and the speaker of the assembly to implement the budget
43 of a subsequent year; in which event shall such amount as may be
44 prescribed by law, but in no event an amount exceeding the difference
45 between such revenue and such norm, be paid from such fund into the
46 general fund.
47 No law changing the method of determining a norm or method or
48 prescribing the amount to be paid into such [a fund] funds or to be paid
49 from such [a fund] funds into the general fund may become effective
50 until three years from the date of its enactment.
51 § 9. Resolved (if the Senate concur), That the foregoing amendment be
52 submitted to the people for approval at the general election to be held
53 in the year 2005 in accordance with the provisions of the election law.