-  This bill is not active in this session.
 

A02755 Summary:

BILL NOA02755
 
SAME ASSAME AS S01322
 
SPONSORFarrell (MS)
 
COSPNSRSilver, Grannis, John, Destito, Schimminger, Galef
 
MLTSPNSRAbbate, Alessi, Alfano, Aubertine, Aubry, Bacalles, Ball, Barclay, Barra, Benedetto, Benjamin, Bing, Bradley, Brennan, Brodsky, Brook-Krasny, Burling, Butler, Cahill, Calhoun, Canestrari, Carrozza, Christensen, Clark, Cole, Colton, Conte, Cook, Crouch, Cusick, Cymbrowitz, DelMonte, Diaz L, DiNapoli, Dinowitz, Duprey, Eddington, Englebright, Errigo, Espaillat, Fields, Finch, Fitzpatrick, Gabryszak, Gantt, Gianaris, Giglio, Glick, Gordon D, Gordon T, Gottfried, Greene, Gunther, Hawley, Hayes, Heastie, Hevesi, Hooper, Hoyt, Ignizio, Jacobs, Jaffee, Kavanagh, Kirwan, Kolb, Koon, Lafayette, Lancman, Latimer, Lavelle, Lavine, Lentol, Lifton, Lopez P, Lupardo, Magee, Magnarelli, Maisel, Markey, Mayersohn, McDonald, McEneny, McKevitt, Miller, Millman, Molinaro, Morelle, Nolan, Oaks, O'Donnell, O'Mara, Ortiz, Paulin, Peoples, Peralta, Perry, Pheffer, Pretlow, Quinn, Rabbitt, Raia, Ramos, Reilich, Reilly, Rivera P, Rosenthal, Saladino, Sayward, Scarborough, Scozzafava, Seminerio, Spano, Stirpe, Sweeney, Tedisco, Thiele, Tonko, Towns, Townsend, Walker, Weinstein, Weisenberg, Weprin, Young, Zebrowski
 
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.
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A02755 Actions:

BILL NOA02755
 
01/18/2007referred to ways and means
01/22/2007reported referred to rules
01/22/2007reported
01/22/2007rules report cal.1
01/22/2007ordered to third reading rules cal.1
01/22/2007motion to amend lost
01/22/2007passed assembly
01/22/2007delivered to senate
01/22/2007REFERRED TO RULES
01/23/2007SUBSTITUTED FOR S1322
01/23/20073RD READING CAL.38
01/23/2007PASSED SENATE
01/23/2007RETURNED TO ASSEMBLY
01/24/2007delivered to governor
01/24/2007signed chap.1
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A02755 Floor Votes:

DATE:01/22/2007Assembly Vote  YEA/NAY: 144/0
AbbateYCarrozzaYGabryszakYKavanaghYMolinaroYRosenthalY
AlessiYChristensenYGalefYKirwanYMorelleYSaladinoY
AlfanoYClarkYGanttYKolbYNolanYSaywardY
ArroyoYColeYGianarisYKoonYOaksYScarboroughY
AubertineYColtonYGiglioYLafayetteYO'DonnellYSchimmingerY
AubryYConteYGlickYLancmanYO'MaraYSchroederY
BacallesYCookYGord D ERLatimerYOrtizYScozzafavaY
BallYCrouchYGord TPYLavelleERParmentYSeminerioY
BarclayYCusickYGottfriedYLavineYPaulinYSpanoY
BarraYCymbrowitzYGrannisYLentolYPeoplesYStirpeY
BenedettoYDelMonteYGreeneYLiftonYPeraltaYSweeneyY
BenjaminYDestitoYGuntherYLope PDYPerryYTediscoY
BingYDiaz LMYHawleyYLope VJYPhefferERThieleY
BoylandYDiaz R YHayesYLupardoYPowellYTitusY
BoyleERDiNapoliYHeastieYMageeYPretlowYTonkoY
BradleyYDinowitzERHevesiYMagnarelliYQuinnYTownsY
BrennanYDupreyYHikindERMaiselYRabbittYTownsendY
BrodskyYEddingtonYHooperYMarkeyYRaiaYWalkerY
Brook KrasnyYEnglebrightYHoytYMayersohnYRamosYWeinsteinY
BurlingYErrigoYHyer SpencerYMcDonaldYReilichYWeisenbergY
ButlerYEspaillatYIgnizioYMcDonoughYReillyYWeprinY
CahillYFarrellYJacobsYMcEnenyYRive J YWrightY
CalhounYFieldsYJaffeeYMcKevittYRive N YYoungY
CamaraYFinchYJeffriesYMillerYRive PMYZebrowskiY
CanestrariYFitzpatrickYJohnYMillmanYRobinsonYMr SpkrY

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A02755 Memo:

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.
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A02755 Text:



 
                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.
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