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A00002 Summary:

A00002 Actions:

A00002 Floor Votes:

A00002 Memo:

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.

A00002 Text:

 
                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.