Amd SS8, 2, 22, 22-b, 23, 2-a & 24, add SS92-cc & 53-c, St Fin L; add Art 3 S54-a, amd S54, Leg L
 
Relates to the reporting of journal voucher transactions; relates to consensus revenue forecasting; establishes earlier time frames for certain actions (quickstart); requires separate schedules; relates to certain information technology projects and the budget; relates to multi-year financial plan changes; creates the "rainy day reserve fund"; relates to the scheduling of legislative consideration of budget bills; relates to estimates of fiscal impact; relates to the content of appropriation bills.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2755
SPONSOR: Farrell (MS)
 
TITLE OF BILL:
An act to amend the state finance law, in relation to the reporting of
journal voucher transactions; to amend the state finance law, in
relation to consensus revenue forecasting; 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 requiring
separate schedules; to amend the state finance law, in relation to
contents of the budget relating to certain information technology
projects; to amend the state finance law, in relation to multi-year
financial plan changes; to amend the state finance law, in relation to
the creation of the rainy day reserve fund; to amend the legislative
law, in relation to scheduling of legislative consideration of budget
bills; to amend the state finance law, in relation to estimates of
fiscal impact; and to amend the state finance law, in relation to the
content of appropriation bills
 
PURPOSE:
This bill enacts comprehensive statutory reforms to promote a timely,
fiscally responsible and transparent budget.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill adds new subdivisions 19 and 20 to State Finance
Law § 8 to require that the Comptroller submit a report on all journal
transfer activity to the Legislature annually, by April 15.
Section 2 of the bill adds a new subdivision 20 to State Finance Law § 2
to define the term "journal transfer."
Section 3 of the bill adds a new subdivision 1-c to State Finance Law §
22 to require that ten days after the submission of the Executive Budg-
et, the Division of the Budget must provide the Legislature with an
estimate of the fiscal impact of the Executive Budget on local govern-
ments.
Section 4 of the bill amends State Finance Law § 22-b to require that,
within thirty days after passage of the budget, the Legislature include
an estimate of the impact of the enacted budget on the General Fund,
local governments and the State workforce.
Section 5 of the bill amends State Finance Law § 22(3)(e-2) to require
that the Executive Budget include multi-year details on State workforce
levels, and proposed changes to those levels.
Section 6 of the bill amends State Finance Law § 23(6) to accelerate the
date for convening the consensus revenue forecasting conference, include
the Comptroller as a participant, and accelerate the issuance of a joint
report by March 1 of each year. If consensus is not reached, the Comp-
troller would determine a revenue amount for the upcoming budget by
March 5.
Section 7 of the bill amends State Finance Law § 23(5) to accelerate the
"Quick Start" budget process. By November 5, the Executive, Senate,
Assembly and Comptroller would provide separate reports on receipt and
disbursement estimates, including detailed information on school aid,
Medicaid, public assistance and other expenditures. Discussion of
discrepancies would be required, leading to a joint report by November
15. Additional reviews by these parties would occur within six weeks
after the first quarterly financial plan update.
Section 8 of the bill amends State Finance Law § 22(3)(d-2) to require
that the Executive Budget be submitted with a detailed schedule of
multi-year receipts by governmental fund, and itemization of all General
Fund transfers.
Section 9 of the bill amends State Finance Law § 22(3)(e) to require
that the Executive Budget include three years of detailed quarterly cash
flows, a revised monthly cash flow for the current year (to be updated
quarterly), a description of revisions, and a comparison to the prior
year, last update and enacted budget.
Section 10 of the bill adds new subdivision 14 to State Finance Law § 22
to provide that thirty days after Executive Budget submission, the
Director of the Budget must provide the Legislature with a detailed
report relating to information technology projects costing over $10
million.
Section 11 of the bill amends State Finance Law § 22(4) to require that
the Executive Budget include detailed multi-year financial plan projec-
tions by fund type, financial plan category, major categories of revenue
and spending by major functions or programs, as well as an explanation
of assumptions other than current services and a description of project-
ed surpluses or deficits.
Section 12 of the bill adds a new subdivision 15 to State Finance Law §
22 to require that the Division of the Budget provide detailed quarterly
financial plan updates, including multi-year projections and explana-
tions of assumptions and revisions. The Division must meet at least
annually with staff of the fiscal committees and staff of the Comp-
troller to review the adequacy of these reports, which are available to
the public, and must provide a debt management report at least twice
annually.
Section 13 of the bill amends State Finance Law §§ 23(3) and 23(4) to
require Executive submission of the enacted budget financial plan and
capital financing plan within thirty days after the Governor has
completed his action on the enacted budget pursuant to § 7 of Article 4
of the Constitution, including new detailed multi-year projections,
quarterly financial plan updates, and monthly cash flow data.
Section 14 of the bill adds a new § 92-cc to the State Finance Law to
create a new Rainy Day Reserve Fund consisting of an amount equivalent
to up to 3 percent of General Fund spending, for use during economic
downturns or in response to a catastrophic event. The Commissioner of
Labor would calculate and publish a monthly composite index of business
cycle indicators to provide an objective measure of the State's current
economic performance. If the composite index registers five consecutive
monthly declines -- an objective indication of a "recession" -- the
State would be authorized to withdraw a portion of the monies in the
Fund. The reserve would be available to assist the State in managing its
finances during such economic downturns, but before actually incurring
an unexpected mid-year shortfall or year-end deficit. The authority to
transfer funds under this new provision would lapse when the composite
index has increased for five consecutive months (signaling an end to the
downturn), or twelve months after the end of the consecutive decline,
whichever occurs first, and repayment must occur within three years
after that time.
Section 15 of the bill adds a new section 54-a to the Legislative Law
providing that, within ten days after the submission of the Executive
Budget, the Senate and Assembly must adopt a joint rule that requires
the Senate and Assembly to establish a schedule for joint conference
committees, and to establish other processes to assist in timely passage
of the budget.
Section 16 of the bill adds a new subdivision 2 to Legislative Law § 54
to require the Legislature to enact a balanced General Fund budget. Each
house would also be required, prior to a vote on the budget bills, to
place on the desks of its members a summary report that itemizes impacts
of proposed budget changes and, where practicable, impacts on local
governments, the State workforce and All Funds spending.
Section 17 of the bill adds a new section 53-d to the State Finance Law
to require that every budget appropriation bill passed by the Legisla-
ture include estimates of the fiscal impacts of the items added by the
Legislature.
Section 18 of the bill adds new subdivisions 7 and 8 to State Finance
Law § 2-a to define the term "lump sum appropriation" as an item of
appropriation with a single related object or purpose that provides
funding to more than one grantee, and that is not distributed pursuant
to a statutory formula, competitive process or through the allocation
process established in section 20 of the bill.
Section 19 of the bill amends State Finance Law § 24(1) to require
further itemization of the Executive Budget and prohibit lump sum appro-
priation for non-Federal state operations, Medicaid, Temporary Assist-
ance for Needy Families, and the Environmental Protection Fund.
Section 20 of the bill adds new subdivisions 4 and 5 to State Finance
Law § 24. New subdivision 4 prohibits the use of lump sum appropriations
by the Legislature. New subdivision 5 establishes the procedure for
expenditure of certain appropriations added by the Legislature that were
not initially designated for a particular grantee.
Section 21 of the bill amends State Finance Law § 22(3)(i) to require
information on capital spending that is not currently included in the
cash-basis governmental funds structure.
Section 22 of the bill adds a new subdivision 16 to State Finance Law §
22 to provide that the Governor shall seek to submit all budget amend-
ments within 21 days after submission of the Executive budget, rather
than within the current 30-day period.
Section 23 of the bill requires that the bill take effect immediately.
 
EXISTING LAW:
The current budget process is contained in Article VII of the State
Constitution, and Articles 3 and 4 of the State Finance Law.
 
STATEMENT IN SUPPORT:
This landmark legislation significantly reforms the budget process by
enacting numerous provisions that will promote timeliness, transparency
and accountability.
 
TIMELINESS
Timeliness of the budget is promoted by beginning the budget process
sooner. The bill accelerates "quick start" by requiring the Executive,
Senate, Assembly, and Comptroller to provide separate reports of
receipts and disbursement estimates by November 5 and requiring the
issuance of a joint report estimating state receipts and disbursements
by November 15.
Timeliness is also promoted by requiring that after the Governor submits
the budget, several deadlines be established and/or met sooner. The bill
requires that ten days after the Governor submits the Executive Budget,
the Senate and the Assembly must establish a schedule for joint confer-
ence committees to reconcile budget bills passed by each house as well
as set a schedule for: (a) public hearings, (b) joint budget conference
committees and (c) the issuance of final reports. The bill requires the
Governor to make all practical efforts to submit all budget amendments
within 21 days after the submission of the Executive Budget, rather than
30 days, and requires that the consensus revenue forecast will be issued
ten days earlier, by March 1.
 
TRANSPARENCY
The bill enhances transparency of the Executive Budget by requiring
substantial additional detail in the Executive Budget to facilitate
review by the public and the Legislature.
The bill includes enhanced reporting for multi-year financial plans,
multi-year receipt and disbursement forecasts, monthly cash flow projec-
tions, data on State employee employment levels, receipt expectations
for the prior, current and next three fiscal years, information technol-
ogy projects over $10 million, and analysis of the fiscal impact of the
budget on local governments. In addition, appropriation bills passed by
the Legislature must be accompanied by an estimate of fiscal impacts of
Legislative additions on the Executive Budget.
In particular, the bill requires greater itemization in the Executive
Budget of appropriations for non-Federal state operations, Temporary
Assistance to Needy Families, the Environmental Protection Fund and
Medicaid. The Legislature is restricted from adding lump sum appropri-
ations to the Executive Budget, and must itemize all additions, includ-
ing member items.
The bill promotes an open budget process and enhances the participation
of individual Legislators and the public in the consideration of the
budget. In particular, the bill provides that the joint report issued by
the Legislature and the Governor on estimates of State receipts and
disbursements must be available on their respective internet websites.
In addition, the Senate and the Assembly will implement "sunshine"
reporting when negotiations on spending bills are complete. Before a
vote may be taken on a budget bill, all members must have on their desks
a report that clearly summarizes the Legislative changes to the Execu-
tive Budget. A final, cumulative report must be provided before all
budget legislation is finally acted on.
 
ACCOUNTABILITY
Finally, the bill significantly enhances fiscal responsibility and
accountability by requiring that the General Fund budget enacted by the
Legislature be balanced. In addition, it strengthens the State's ability
to respond to an economic downturn or a catastrophic event by establish-
ing a new 3 percent "Rainy Day Fund." Combined with the existing 2
percent Tax Stabilization Reserve Fund, the State's reserves will be at
a level recommended by fiscal monitors.
 
BUDGET IMPLICATIONS:
There are no direct budget costs or savings from this bill. However,
improved transparency, timeliness and authorizing increased reserves
will have a positive overall impact on State finances.
STATE OF NEW YORK
________________________________________________________________________
2755
2007-2008 Regular Sessions
IN ASSEMBLY
January 18, 2007
___________
Introduced by M. of A. FARRELL, SILVER, GRANNIS, JOHN, DESTITO, SCHIM-
MINGER, GALEF -- Multi-Sponsored by -- M. of A. ABBATE, ALESSI, AUBER-
TINE, AUBRY, BENEDETTO, BENJAMIN, BING, BRADLEY, BRENNAN, BRODSKY,
BROOK-KRASNY, CAHILL, CANESTRARI, CARROZZA, CHRISTENSEN, CLARK,
COLTON, COOK, CUSICK, CYMBROWITZ, DelMONTE, L. DIAZ, DiNAPOLI, EDDING-
TON, ENGLEBRIGHT, ESPAILLAT, FIELDS, GABRYSZAK, GANTT, GIANARIS,
GLICK, D. GORDON, T. GORDON, GOTTFRIED, GREENE, GUNTHER, HEASTIE,
HEVESI, HOOPER, HOYT, JACOBS, JAFFEE, KAVANAGH, KOON, LAFAYETTE, LANC-
MAN, LATIMER, LAVELLE, LAVINE, LENTOL, LIFTON, LUPARDO, MAGEE, MAGNAR-
ELLI, MAISEL, MARKEY, MAYERSOHN, McENENY, MILLMAN, MORELLE, NOLAN,
O'DONNELL, ORTIZ, PAULIN, PEOPLES, PERALTA, PERRY, PHEFFER, PRETLOW,
RAMOS, REILLY, P. RIVERA, ROSENTHAL, SCARBOROUGH, STIRPE, SWEENEY,
TONKO, TOWNS, WEINSTEIN, WEISENBERG, WEPRIN, YOUNG, ZEBROWSKI -- (at
request of the Governor) -- read once and referred to the Committee on
Ways and Means
AN ACT to amend the state finance law, in relation to the reporting of
journal voucher transactions; to amend the state finance law, in
relation to consensus revenue forecasting; 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
requiring separate schedules; to amend the state finance law, in
relation to contents of the budget relating to certain information
technology projects; to amend the state finance law, in relation to
multi-year financial plan changes; to amend the state finance law, in
relation to the creation of the rainy day reserve fund; to amend the
legislative law, in relation to scheduling of legislative consider-
ation of budget bills; to amend the state finance law, in relation to
estimates of fiscal impact; and to amend the state finance law, in
relation to the content of appropriation bills
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12002-01-7
A. 2755 2
1 Section 1. Section 8 of the state finance law is amended by adding two
2 new subdivisions 19 and 20 to read as follows:
3 19. Notwithstanding any inconsistent provision of law, maintain
4 detailed records of all activity commonly known as "journal transfers"
5 relating to any fund or account of the state for which he or she has the
6 duty pursuant to law to audit and maintain accountability, including any
7 supporting documentation relating thereto.
8 20. On or before April fifteenth of each year, submit an annual report
9 of such activity pursuant to subdivision nineteen of this section to the
10 temporary president of the senate and to the speaker of the assembly.
11 § 2. Section 2 of the state finance law is amended by adding a new
12 subdivision 20 to read as follows:
13 20. "Journal transfer". Any transfer or other method of movement of
14 federal or state monies by the comptroller including, but not limited
15 to, expenditure journal transfers, revenue journal transfers and statu-
16 tory transfers, between accounts and/or funds not specifically author-
17 ized by the state legislature.
18 § 3. Section 22 of the state finance law is amended by adding a new
19 subdivision 1-c to read as follows:
20 1-c. within ten days following the submission of the financial plans
21 presented in accordance with subdivision one of this section, the direc-
22 tor of the budget shall submit to the chairs of the senate finance and
23 the assembly ways and means committees and the comptroller an estimate
24 of the fiscal impact of the executive budget general fund changes on
25 local governments and, where practicable, the fiscal impact on local
26 governments of the executive budget all fund changes concerning the
27 medicaid program, homeland security program, and workforce investment
28 programs. Such estimate shall be presented by class of local government
29 and shall measure all of the impacts of the executive budget, including
30 aid program changes, reimbursement changes, statutory changes in author-
31 izations for local taxation, mandates on local governments and other
32 requirements. Such estimate shall show the impact on local governments
33 by local fiscal years affected and shall cover the first local fiscal
34 year affected as well as the ensuing local fiscal year. Where such esti-
35 mate depends on any local option or action, the estimate shall explicit-
36 ly describe the assumptions used to calculate the estimate. When under
37 existing law a local tax option or program would end and the executive
38 budget proposes the continuation thereof, the impact shall be identified
39 as a "deferral of sunset" and shall be calculated as a separate compo-
40 nent of such estimate.
41 § 4. Section 22-b of the state finance law, as added by chapter 762 of
42 the laws of 1992, is amended to read as follows:
43 § 22-b. Report of the legislature on the enacted budget. Within thirty
44 days of passage of the budget the senate and the assembly shall issue,
45 either jointly or separately, a legislative report on the budget. Such
46 report shall contain a description of appropriation changes between the
47 budget submitted by the governor and the enacted budget and the effect
48 of such changes on employment levels. Commencing with fiscal year nine-
49 teen hundred ninety-four--nineteen hundred ninety-five, such report
50 shall also summarize changes in appropriations by function in a form
51 suitable for comparison with the schedule required to be submitted with
52 the governor's proposed budget. Commencing with fiscal year two thou-
53 sand seven--two thousand eight, such report shall also include an esti-
54 mate of the impact of the enacted budget on local governments, the state
55 workforce, and general fund projections for the ensuing fiscal year,
56 consistent with the requirements of subdivision one-c of section twen-
A. 2755 3
1 ty-two of this article. The findings and descriptions contained in the
2 report required by this section shall constitute the expression of
3 legislative intent with respect to the budget to which such report
4 relates.
5 § 5. Paragraph e-2 of subdivision 3 of section 22 of the state finance
6 law, as added by chapter 762 of the laws of 1992, is amended to read as
7 follows:
8 e-2. A [measure of the] description of employment [level] levels for
9 each state department, division or office, for [both] the prior, current
10 and next ensuing fiscal [year, provided however that for the fiscal year
11 beginning April first, nineteen hundred ninety-three--ninety-four, such
12 measure shall be presented only for the general fund] year containing:
13 (1) separate schedules for each fund type; and
14 (2) an all funds summary. Such information shall be presented in a
15 form that facilitates comparisons among agencies and across fiscal
16 years, and shall include:
17 (i) actual and projected full-time equivalents; and
18 (ii) proposed changes to the work force in the executive budget,
19 including but not limited to: new positions, layoffs, attrition, and
20 changes in funding sources. To the extent practicable, the division of
21 the budget shall facilitate the provision of other relevant information
22 on employment to the legislature in a timely manner during the state
23 fiscal year.
24 § 6. Subdivision 6 of section 23 of the state finance law, as added by
25 chapter 309 of the laws of 1996, is amended to read as follows:
26 6. Consensus economic and revenue forecasting conference; report. (a)
27 [In the month] By the end of [March] February in each year, prior to the
28 report required by paragraph (b) of this subdivision, the chairperson
29 and ranking minority member of the senate finance committee, the chair-
30 person and ranking minority member of the assembly ways and means
31 committee and the director of the budget shall jointly convene a consen-
32 sus economic and revenue forecasting conference in the form of a joint
33 legislative-executive hearing, for the purpose of assisting the governor
34 and the legislature in reaching the consensus revenue forecast required
35 by paragraph (b) of this subdivision. The conveners of the conference
36 shall invite the state comptroller and such other participants to the
37 conference as shall, in their judgment, provide guidance on the current
38 conditions in, and probable outlook for the performance of, the economy
39 of the state, as well as the effect of such conditions and such perform-
40 ance on state receipts.
41 (b) On or before March [tenth] first in each year, the director of the
42 budget and the secretary of the senate finance committee and the secre-
43 tary of the assembly ways and means committee shall issue a joint report
44 containing a consensus forecast of the economy and estimates of receipts
45 for the current and the ensuing state fiscal year. [The report] Such
46 estimates of receipts shall include, but [shall] not be limited to[, the
47 following information, presented on the cash basis of accounting]:
48 expected tax receipts on an all-funds basis, projected lottery receipts,
49 and anticipated miscellaneous receipts to be received in the general
50 fund. The estimate of receipts for the ensuing fiscal year contained in
51 the report, shall be all receipts from such sources described in this
52 subdivision available to make disbursements authorized by the appropri-
53 ation bills submitted by the governor pursuant to section three of arti-
54 cle seven of the constitution for the ensuing fiscal year.
55 (c) On a failure of the director of the budget, the secretary of the
56 senate finance committee and the secretary of the assembly ways and
A. 2755 4
1 means committee to issue a joint report containing a consensus forecast
2 as provided in paragraph (b) of this subdivision, the state comptroller
3 shall, on or before March fifth, provide estimates of receipts for the
4 current and the ensuing state fiscal year. Such estimates shall include,
5 but not be limited to, expected tax receipts on an all-funds basis,
6 projected lottery receipts, and miscellaneous receipts to be received in
7 the general fund. In rendering his or her estimate, as required in this
8 paragraph, the comptroller shall give due consideration to the inherent
9 risks in economic and revenue forecasting and the interest of the state
10 to maintain budget balance throughout the fiscal year. The estimate of
11 receipts for the ensuing fiscal year provided by the state comptroller,
12 shall be all receipts from such sources available to make disbursements
13 authorized by the appropriation bills submitted by the governor pursuant
14 to section three of article seven of the constitution for the ensuing
15 fiscal year.
16 § 7. Subdivision 5 of section 23 of the state finance law, as added by
17 chapter 762 of the laws of 1992, is amended to read as follows:
18 5. Financial information review. Annually on or before November
19 fifteenth, the governor, temporary president of the senate [and], the
20 speaker of the assembly and the comptroller shall cause their respective
21 appropriate personnel to meet and such meeting shall be open to the
22 public for the purpose of jointly reviewing available financial informa-
23 tion [and developing a process] to facilitate timely adoption of a budg-
24 et for the next fiscal year. Such [process] review shall include meet-
25 ings to discuss the economic outlook, revenue forecasts, projected
26 spending, the impact of relevant state and federal statutory provisions,
27 and any other matters deemed appropriate. Not later than [December
28 fifteenth] November fifth, such respective appropriate personnel shall
29 [report to their principals on the steps necessary to accomplish the
30 adoption of a timely budget] separately prepare and make available
31 reports on estimated state receipts and state disbursements for the
32 current and ensuing fiscal years. Each report on estimated state
33 receipts shall include, but shall not be limited to, estimated tax
34 receipts on an all-funds basis, estimated lottery receipts, estimated
35 miscellaneous receipts to be received in the general fund, and the
36 underlying factors and data upon which such estimated receipts are
37 based. Each report on estimated state disbursements shall include, but
38 shall not be limited to, estimates of state disbursements for Medicaid
39 and the underlying factors and data on which such estimates are based,
40 estimates of state disbursements for public assistance and the underly-
41 ing caseload and other factors and data on which such estimates are
42 based, and estimates of state disbursements for assistance for elementa-
43 ry and secondary education and the underlying factors and data on which
44 such estimates are based. The governor, temporary president of the
45 senate and the speaker of the assembly shall cause their respective
46 appropriate personnel to meet annually on or after November fifth to
47 review the separate reports on estimated state receipts and state
48 disbursements. The respective appropriate personnel shall identify and
49 evaluate the differences between the estimates of state receipts and
50 state disbursements, and the differences between the underlying factors
51 and data on which such estimates are based, and separately report such
52 differences and the evaluation thereof to their principals. Not later
53 than November fifteenth the governor, the temporary president of the
54 senate and the speaker of the assembly shall jointly prepare and make
55 available on their internet websites a report on the actual, estimated
56 and projected state receipts and state disbursements for the prior,
A. 2755 5
1 current and ensuing fiscal years, respectively, for all funds of the
2 state. Subsequent review shall be held within six weeks following the
3 end of the first quarter of the fiscal year.
4 § 8. Paragraph d-2 of subdivision 3 of section 22 of the state finance
5 law, as amended by chapter 260 of the laws of 1993, is amended to read
6 as follows:
7 d-2. Within ten days following the submission of the financial plans
8 presented in accordance with subdivisions one and two of this section,
9 the director of the budget shall submit to the comptroller and the
10 chairs of the senate finance committee and the assembly ways and means
11 committee:
12 (i) a detailed schedule by fund of the receipts and disbursements
13 comprising such summary financial plan[, and];
14 (ii) a schedule for each governmental fund type other than the general
15 fund showing the differences between projected operating results on a
16 cash basis and those on the basis of generally accepted accounting prin-
17 ciples[, and];
18 (iii) a detailed schedule by fund of revenues and expenditures within
19 the general fund;
20 (iv) a detailed schedule by fund of receipts for the prior, current
21 and next three fiscal years. Such schedule shall present the major
22 revenue sources for each fund, including detail for each major tax, and
23 major components of miscellaneous receipts; and
24 (v) an itemized list of transfers to and from the general fund.
25 § 9. Paragraph e of subdivision 3 of section 22 of the state finance
26 law, as amended by chapter 762 of the laws of 1992, is amended to read
27 as follows:
28 e. The anticipated general fund quarterly schedule and fiscal year
29 total for the prior, current and next ensuing fiscal [year] years of:
30 disbursements; receipts; repayments of advances; total tax refunds; and
31 refunds for the tax imposed under article twenty-two of the tax law.
32 Such information shall be presented in the same form as the summary
33 financial plans presented in accordance with subdivisions one and two of
34 this section. A separate, detailed, report of such schedule shall be
35 provided with receipts shown by each major revenue category, including
36 detail for each major tax and major components of miscellaneous
37 receipts, and with disbursements shown by major function or program. The
38 director of the division of the budget shall submit concurrent with the
39 submission of the financial plan to the legislature pursuant to subdivi-
40 sion two of this section and with each update thereafter a revised
41 monthly general fund cash flow projection of receipts and disbursements
42 for the current fiscal year that: (1) compares actual results to (i)
43 actual results through the same period for the prior year and (ii) the
44 most recent prior update to the financial plan and to the enacted budget
45 financial plan; (2) summarizes the reasons for any variances; and (3)
46 describes the revisions to the cash flow projections. The monthly gener-
47 al fund cash flow projection shall be stated by major category of local
48 assistance, personal service, nonpersonal service, general state charg-
49 es, and debt service, and by major category of revenue. Such reports
50 shall utilize a format that shall facilitate comparison and analysis
51 with those reports submitted to the legislature by the office of audit
52 and control pursuant to subdivision nine of section eight of this chap-
53 ter.
54 § 10. Section 22 of the state finance law is amended by adding a new
55 subdivision 14 to read as follows:
A. 2755 6
1 14. a. With respect to information technology projects, dependent on
2 funding in the executive budget, involving one or more contracts
3 projected to total ten million dollars or more, within thirty days
4 following the submission of the budget by the governor for each fiscal
5 year, beginning with the two thousand eight--two thousand nine fiscal
6 year, the director of the budget shall transmit to the chairs of the
7 senate finance committee and the assembly ways and means committee a
8 report which shall set forth the following:
9 (1) project summary describing the project purpose, proposed approach,
10 key milestones, current status and timetable;
11 (2) the proposed method of procurement, including whether the project
12 will, in whole or in part, utilize a centralized contract or a sole-
13 source contract; and
14 (3) the proposed funding source, financing method and estimated costs
15 by fiscal year.
16 b. Information provided pursuant to paragraph a of this subdivision
17 may not be disclosed to any party other than a governmental entity as
18 defined in section one hundred thirty-nine-j of this chapter, if such
19 disclosure would impair the fairness or competitiveness of a pending or
20 potential procurement process.
21 Estimated costs by fiscal year shall not be disclosed.
22 § 11. Subdivision 4 of section 22 of the state finance law, as amended
23 by chapter 762 of the laws of 1992, is amended to read as follows:
24 4. a. Include a three year financial projection[, which shall be
25 submitted not later than thirty days after submission of the financial
26 plans pursuant to subdivision one of this section,] showing the antic-
27 ipated disbursements and receipts for each of the governmental fund
28 types of the state [and, for the general fund the anticipated expendi-
29 tures and revenues for the ensuing fiscal year and for the two years
30 following the ensuing fiscal year]. For the purposes of this three year
31 financial projection, disbursements [and expenditures] shall be
32 presented by the following purposes: state purposes, local assistance,
33 capital projects, debt service, transfers and general state charges with
34 each major function or major program identified separately within each
35 purpose; and receipts [and revenues] shall be presented[,] by each major
36 revenue category, including detail for each major tax, and major compo-
37 nents of miscellaneous receipts and with disbursements shown by major
38 function or program for the prior year, current year and next three
39 [ensuing and next successive] fiscal [year by each revenue source which
40 accounts for not less than one per centum of all receipts or revenues of
41 the general fund] years, and otherwise by each major source which is
42 separately estimated and presented pursuant to paragraph b of subdivi-
43 sion three of this section [and, for the remaining fiscal year by each
44 revenue source which accounts for at least ten per centum of all the
45 receipts or revenues and otherwise by categories of revenue sources.
46 Provided however, that for the fiscal year beginning in nineteen hundred
47 ninety-three, for the governmental funds other than the general fund,
48 receipts shall be presented by each revenue source which accounts for at
49 least ten per centum of all the receipts and otherwise by categories of
50 revenue source]. Receipts and disbursements for special revenue funds
51 shall be presented separately for federal funds and all other special
52 revenue funds. Whenever receipts and disbursements are proposed to be
53 moved to a different fund type, each significant amount so moved shall
54 be explained. This three year financial projection shall include an
55 explanation of any changes to the financial plans submitted in accord-
56 ance with subdivision one of this section and include explanations of
A. 2755 7
1 the economic, statutory and other assumptions used to estimate the
2 disbursements[, expenditures,] and receipts [and revenues] which are
3 presented. Whenever the projections for receipts and disbursements are
4 based on assumptions other than the current levels of service, such
5 assumptions shall be separately identified and explained. The three year
6 financial projections shall include a description of any projected defi-
7 cits or surpluses.
8 § 12. Section 22 of the state finance law is amended by adding a new
9 subdivision 15 to read as follows:
10 15. The division of the budget shall prepare the reports, schedules,
11 and other information described in this subdivision. To the extent prac-
12 ticable, such reports, schedules, and information shall be in a form,
13 and presented at a level of detail, that facilitates comparison on an
14 annual basis and against actual results, as appropriate, and in a manner
15 consistent with the other reporting requirements enumerated in this
16 section. The reports, schedules, and other information required by this
17 subdivision shall be submitted to the chair of the senate finance
18 committee, the chair of the assembly ways and means committee, the
19 minority leaders of both houses, and the comptroller according to the
20 schedules set forth in this section. In determining the final content
21 and format of the information required by this section, the division of
22 the budget shall consult annually with the designees of the temporary
23 president of the senate, the speaker of the assembly, the minority lead-
24 ers of both houses, and the comptroller. All information described in
25 this subdivision shall be made available to the public.
26 a. The executive budget, the enacted budget report and each quarterly
27 update to the financial plan shall include an updated general fund fore-
28 cast of receipts and disbursements for the current and two succeeding
29 fiscal years. Such updated forecast shall clearly identify and explain
30 the revisions to the receipts and disbursements projections from the
31 most recent prior update to the financial plan, and any significant
32 revisions to the underlying factors affecting receipts and disbursements
33 by major function, and may include, but not be limited to: caseload,
34 service, and utilization rates; demographic trends; economic variables;
35 pension fund performance; incarceration rates; prescription drug prices;
36 health insurance premiums; inflation; contractual obligations; liti-
37 gation; and state employment trends.
38 b. The capital program and financing plan submitted pursuant to
39 section twenty-two-c of this article, and the update thereto required
40 pursuant to section twenty-three of this article, shall include a report
41 on the management of state-supported debt. Such report may include, but
42 is not limited to: (1) an assessment of the affordability of state debt,
43 including debt as a percent of personal income, debt per capita, and
44 debt service costs as a percent of the budget; (2) a summary and analy-
45 sis of the interest rate exchange agreements and variable rate exposure;
46 and (3) an assessment of financing opportunities related to the state's
47 debt portfolio.
48 § 13. Subdivisions 3 and 4 of section 23 of the state finance law,
49 subdivision 3 as amended by chapter 837 of the laws of 1983 and subdivi-
50 sion 4 as amended by chapter 59 of the laws of 2000, are amended to read
51 as follows:
52 3. Financial plans and capital improvement program; revisions. [As
53 soon as practicable] Not later than thirty days after the legislature
54 has completed action on the budget bills submitted by the governor [for
55 state purposes, local assistance, capital projects and debt service, the
56 governor] and the period for the governor's review has elapsed, the
A. 2755 8
1 governor shall cause to be submitted to the legislature the revisions to
2 the financial plans and the capital plan required by subdivisions one,
3 two, four and five of section twenty-two of this [chapter] article as
4 are necessary to account for all enactments affecting the financial
5 plans and the capital plan. [Such] The financial plan shall also contain
6 a cash flow analysis of projected receipts and disbursements and other
7 financing sources or uses for each month of the state's fiscal year.
8 Notwithstanding any other law to the contrary, such revised plans and
9 accompanying cash flow analysis shall be submitted to the legislature
10 and the comptroller in the same form as the plans required by such
11 subdivisions.
12 4. Financial plan updates. Quarterly, throughout the fiscal year, the
13 governor shall submit to the comptroller, the [chair] chairs of the
14 senate finance [committee] and [the chair of] the assembly ways and
15 means [committee for the use of the committees and the information of
16 the legislature] committees, within thirty days of the close of the
17 quarter to which it shall pertain, a report which summarizes the actual
18 experience to date and projections for the remaining quarters of the
19 current fiscal year and for each of the next two fiscal years of
20 receipts, disbursements, tax refunds, and repayments of advances
21 presented in forms suitable for comparison with the financial plan
22 submitted pursuant to [subdivision] subdivisions one, four, and five, of
23 section twenty-two of this article and revised in accordance with the
24 provisions of subdivision three of this section. The governor shall
25 submit with the budget [and on September first of each year] a similar
26 report that summarizes revenue and expenditure experience to date in a
27 form suitable for comparison with the financial plan submitted pursuant
28 to subdivision two of section twenty-two of this article and revised in
29 accordance with the provisions of subdivision three of this section.
30 Such reports shall provide an explanation of the causes of any major
31 deviations from the revised financial plans and, shall provide for the
32 amendment of the plan or plans to reflect those deviations. The governor
33 may, if he determines it advisable, provide more frequent reports to the
34 legislature regarding actual experience as compared to the financial
35 plans. The quarterly financial plan update most proximate to October
36 thirty-first of each year shall include the calculation of the limita-
37 tions on the issuance of state-supported debt computed pursuant to the
38 provisions of subdivisions one and two of section sixty-seven-b of this
39 chapter.
40 § 14. The state finance law is amended by adding a new section 92-cc
41 to read as follows:
42 § 92-cc. Rainy day reserve fund. 1. There is hereby established in
43 the state treasury a fund to be known as the "rainy day reserve fund".
44 Such fund shall consist of moneys deposited therein and monies shall be
45 withdrawn from such fund only for the purposes as provided therein.
46 2. Such fund shall have a maximum balance not to exceed three per
47 centum of the aggregate amount projected to be disbursed from the gener-
48 al fund during the fiscal year immediately following the then-current
49 fiscal year.
50 3. a. The amounts available in such reserve may be used if the follow-
51 ing conditions are met:
52 (i) Economic downturn. The commissioner of labor shall calculate and
53 publish, on or before the fifteenth day of each month, a composite index
54 of business cycle indicators. Such index shall be calculated using
55 monthly data on New York state employment, total manufacturing hours
56 worked, and unemployment prepared by the department of labor or its
A. 2755 9
1 successor agency, and total sales tax collected net of law changes,
2 prepared by the department of taxation and finance or its successor
3 agency. Such index shall be constructed in accordance with the proce-
4 dures for calculating composite indexes issued by the conference board
5 or its successor organization, and adjusted for seasonal variations in
6 accordance with the procedures issued by the census bureau of the United
7 States department of commerce or its successor agency. If the composite
8 index declines for five consecutive months, the commissioner of labor
9 shall notify the governor, the speaker of the assembly, the temporary
10 president of the senate, and the minority leaders of the assembly and
11 the senate. Upon such notification, the director of the budget may
12 authorize and direct the comptroller to transfer from the rainy day
13 reserve fund to the general fund such amounts as the director of the
14 budget deems necessary to meet the requirements of the state financial
15 plan. The authority to transfer funds under the provisions of this
16 subdivision shall lapse when the composite index shall have increased
17 for five consecutive months or twelve months from the original notifica-
18 tion of the commissioner of labor, whichever occurs earlier. Provided,
19 however, that for every additional and consecutive monthly decline
20 succeeding the five month decline so noted by the commissioner of labor,
21 the twelve month lapse date shall be extended by one additional month;
22 or
23 (ii) Catastrophic events. In the event of a need to repel invasion,
24 suppress insurrection, defend the state in war, or to respond to any
25 other emergency resulting from a disaster, including but not limited to,
26 a disaster caused by an act of terrorism, the director of the budget may
27 authorize and direct the comptroller to transfer from the rainy day
28 reserve fund to the general fund such amounts as the director of the
29 budget deems necessary to meet the requirements of the state financial
30 plan.
31 b. Prior to authorizing any transfer from the rainy day reserve fund
32 pursuant to the provisions of this section, the director of the budget
33 shall notify the speaker of the assembly, the temporary president of the
34 senate, and the minority leaders of the assembly and the senate. Such
35 letter shall specify the reasons for the transfer and the amount there-
36 of. Any amounts transferred from the rainy day reserve fund to the
37 general fund shall be subject to all the repayment provisions of this
38 section.
39 4. Any transfer authorized in subdivision three of this section shall
40 be repaid in cash within a period of three years after the date that
41 such authority to transfer funds under the provisions of this subdivi-
42 sion lapses, provided however that any transfer authorized as a result
43 of a catastrophic event shall be subject to repayment provisions to be
44 proposed by the governor and implemented by appropriation or transfer of
45 funds.
46 § 15. Article 3 of the legislative law is amended by adding a new
47 section 54-a to read as follows:
48 § 54-a. Scheduling of legislative consideration of budget bills. The
49 legislature shall by concurrent resolution of the senate and assembly
50 prescribe by joint rule or rules a procedure for:
51 1. establishing a joint budget conference committee or joint budget
52 conference committees within ten days following the submission of the
53 budget by the governor pursuant to article seven of the constitution, to
54 consider and reconcile such budget resolution or budget bills as may be
55 passed by each house; and
A. 2755 10
1 2. promulgating a schedule within ten days following the submission of
2 the budget by the governor pursuant to article seven of the constitu-
3 tion, for considering and acting upon such budget appropriation and
4 related bills which shall include:
5 (a) dates for those actions required to be taken by the legislature
6 pursuant to section fifty-three of this chapter;
7 (b) dates for public hearings on submissions by the governor as
8 required by section thirty-two-a of this chapter;
9 (c) a date for the establishment of joint budget conference committee
10 or committees; and
11 (d) a date by which such joint budget conference committee or commit-
12 tees shall issue their final reports.
13 § 16. The opening paragraph of section 54 of the legislative law is
14 designated subdivision 1 and a new subdivision 2 is added to read as
15 follows:
16 2. (a) The legislature shall enact a budget for the upcoming fiscal
17 year that it determines is balanced in the general fund.
18 (b) Before voting upon an appropriation bill submitted by the governor
19 and related legislation, as amended, in accordance with article seven of
20 the constitution, each house shall place on the desks of its members a
21 report relating to each such bill and, preceding final action on all
22 such appropriation bills and legislation, members shall be so provided
23 with a comprehensive, cumulative report relating to all such bills and
24 legislation.
25 (c) The reports prepared by each house shall include for the general
26 fund a summary of proposed legislative revisions to the executive budget
27 for the ensuing fiscal year, and shall separately identify and present
28 all legislative additions, reestimates and other revisions that increase
29 or decrease disbursements, and separately identify and present all
30 legislative reestimates and other revisions that increase or decrease
31 available resources. Such report shall, where practicable, display and
32 separately identify and present all legislative additions, reestimates,
33 and other revisions that increase or decrease state funds and all funds
34 spending, including an estimate of the impact of the proposed revisions
35 on local governments and the state workforce.
36 § 17. The state finance law is amended by adding a new section 53-d to
37 read as follows:
38 § 53-d. Estimates of fiscal impact. If an appropriation bill passed by
39 the legislature contains items that the legislature has added in accord
40 with section four of article seven of the constitution, then such bill
41 must be accompanied by an estimate of the fiscal impact of such legis-
42 lation on the budget submitted by the governor pursuant to section two
43 of article seven of the constitution which shall include, if appropri-
44 ate, an estimate of moneys and revenues, either in law or in legislation
45 passed by both houses with the budget, sufficient to meet such addi-
46 tions. Such bill shall also include such other recommendations and
47 information as the legislature may deem proper and such additional
48 information as may be required by law. None of the restrictions of this
49 section, however, shall apply to appropriations for the legislature or
50 judiciary.
51 § 18. Section 2-a of the state finance law is amended by adding two
52 new subdivisions 7 and 8 to read as follows:
53 7. "Lump sum appropriation". An item of appropriation with a single
54 related object or purpose, the purpose of which is to fund more than one
55 grantee by a means other than a statutorily prescribed formula, a
A. 2755 11
1 competitive process, or an allocation pursuant to subdivision five of
2 section twenty-four of this chapter.
3 8. "Grantee". Any group, corporation, municipal or governmental entity
4 that receives funding from the state.
5 § 19. Subdivision 1 of section 24 of the state finance law, as amended
6 by chapter 762 of the laws of 1992, is amended to read as follows:
7 1. The budget submitted annually by the governor shall be simultane-
8 ously accompanied by a bill or bills for all proposed appropriations and
9 reappropriations and for the proposed measures of taxation or other
10 legislation, if any, recommended therein. Such bills shall be submitted
11 by the governor and shall be known as budget bills.
12 (a) For all non-federal state operations appropriations, such bill or
13 bills shall only contain itemized appropriations and shall be made,
14 where practicable, by agency and within each agency by program and with-
15 in each program at the following level of detail and in the following
16 order:
17 (i) by fund type, which at a minimum shall include general fund,
18 special revenue-other funds, capital projects funds, and debt service
19 funds;
20 (ii) for personal service appropriations, separate appropriations
21 shall be made for regular personal service, temporary personal service,
22 and holiday and overtime pay;
23 (iii) for nonpersonal service appropriations, separate appropriations
24 shall be made for supplies and materials, travel, contractual services,
25 equipment, and fringe benefits, as appropriate.
26 (b) Any appropriation for temporary assistance for needy families, the
27 environmental protection fund, and the medical assistance program, shall
28 only contain itemized appropriations which shall not be in the form of
29 lump sum appropriations, provided, however, for the purposes of the
30 medical assistance program, itemized appropriations shall consist of
31 categories-of-service with separate appropriations for hospital inpa-
32 tient, hospital outpatient and emergency room, clinic, nursing home,
33 other long-term care, managed care, pharmacy, dental, transportation,
34 and other non-institutional services.
35 § 20. Section 24 of the state finance law is amended by adding two new
36 subdivisions 4 and 5 to read as follows:
37 4. Any appropriation added to such budget bills, pursuant to section
38 four of article seven of the constitution, shall only contain itemized
39 appropriations which shall not be in the form of lump sum appropri-
40 ations, and provided further that for all non-federal state operations
41 appropriations, such bill or bills shall only contain itemized appropri-
42 ations and shall be made, where practicable, by agency, and within each
43 agency by program and within each program at the following level of
44 detail and in the following order:
45 (a) by fund type, which at a minimum shall include general fund,
46 special revenue-other funds, capital projects funds and debt service
47 funds;
48 (b) for personal service appropriations, separate appropriations shall
49 be made for regular personal service, temporary personal service, and
50 holiday and overtime pay;
51 (c) for nonpersonal service appropriations, separate appropriations
52 shall be made for supplies and materials, travel, contractual services,
53 equipment and fringe benefits, as appropriate.
54 5. Any appropriation added pursuant to section four of article seven
55 of the constitution without designating a grantee shall be allocated
56 only pursuant to a plan setting forth an itemized list of grantees with
A. 2755 12
1 the amount to be received by each, or the methodology for allocating
2 such appropriation. Such plan shall be subject to the approval of the
3 chair of the senate finance committee, the chair of the assembly ways
4 and means committee, and the director of the budget, and thereafter
5 shall be included in a concurrent resolution calling for the expenditure
6 of such monies, which resolution must be approved by a majority vote of
7 all members elected to each house upon a roll call vote.
8 § 21. Paragraph i of subdivision 3 of section 22 of the state finance
9 law, as amended by chapter 762 of the laws of 1992, is amended to read
10 as follows:
11 i. A statement setting forth state involvement in the fiscal oper-
12 ations of those public authorities and public benefit corporations which
13 may be part of the development of a comprehensive state budget system
14 and provided therefor in the state financial plan. Such statement shall
15 include those public authorities and public benefit corporations with
16 disbursements which are not currently reflected in the state central
17 accounting system from proceeds of any notes or bonds issued by any
18 public authority, and which bonds or notes would be considered as state-
19 supported debt as defined in section sixty-seven-a of this chapter. Such
20 statement shall set forth the amount of all of the bonds, notes and
21 other obligations of each public authority, public benefit corporation
22 and all other agencies and instrumentalities of the state for which the
23 full faith and credit of the state has been pledged or on account of
24 which the state has by law given its pledge or assurance for the contin-
25 ued operation and solvency of the authority, public corporation, or
26 other agency or instrumentality of the state, as the case may be. Such
27 statement shall also set forth all proposed appropriations to be made to
28 any public authority, public benefit corporation, and any other agency
29 or instrumentality of the state which has been created or continued by
30 law and which is separate and distinct from the state itself.
31 § 22. Section 22 of the state finance law is amended by adding a new
32 subdivision 16 to read as follows:
33 16. The governor shall make all practicable efforts to amend or
34 supplement the budget and submit supplemental bills or amendments to any
35 bills pursuant to article seven of the constitution within twenty-one
36 days after the budget is submitted to the legislature.
37 § 23. This act shall take effect immediately.