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S01322 Summary:

BILL NOS01322
 
SAME ASSAME AS A02755
 
SPONSORBRUNO
 
COSPNSRJOHNSON, ALESI, BONACIC, DEFRANCISCO, FARLEY, FLANAGAN, FUSCHILLO, GOLDEN, GRIFFO, HANNON, LANZA, LARKIN, LAVALLE, LEIBELL, LIBOUS, LITTLE, MALTESE, MARCELLINO, MAZIARZ, MORAHAN, NOZZOLIO, PADAVAN, RATH, ROBACH, SALAND, SEWARD, SKELOS, TRUNZO, VOLKER, WINNER, WRIGHT, YOUNG, ALESI
 
MLTSPNSR
 
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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S01322 Actions:

BILL NOS01322
 
01/18/2007REFERRED TO FINANCE
01/22/2007REPORTED AND COMMITTED TO RULES
01/22/2007ORDERED TO THIRD READING CAL.38
01/22/2007PASSED SENATE
01/22/2007DELIVERED TO ASSEMBLY
01/22/2007referred to ways and means
01/23/2007RECALLED FROM ASSEMBLY
01/23/2007returned to senate
01/23/2007VOTE RECONSIDERED - RESTORED TO THIRD READING
01/23/2007SUBSTITUTED BY A2755
 A02755 AMEND= Farrell (MS)
 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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S01322 Memo:

Memo not available
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S01322 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1322
 
                               2007-2008 Regular Sessions
 
                    IN SENATE
 
                                    January 18, 2007
                                       ___________
 
        Introduced by Sens. BRUNO, JOHNSON, ALESI, BONACIC, DeFRANCISCO, FARLEY,
          FLANAGAN,  FUSCHILLO,  GOLDEN, GRIFFO, HANNON, LANZA, LARKIN, LAVALLE,
          LEIBELL, LIBOUS, LITTLE, MALTESE, MARCELLINO, MAZIARZ, MORAHAN, NOZZO-
          LIO, PADAVAN, RATH, ROBACH, SALAND, SEWARD,  SKELOS,  TRUNZO,  VOLKER,
          WINNER,  WRIGHT,  YOUNG  -- (at request of the Governor) -- read twice

          and ordered printed, and when printed to be committed to the Committee
          on Finance
 
        AN ACT to amend the state finance law, in relation to 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:
 
     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.
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12002-01-7

        S. 1322                             2
 
     1    20. On or before April fifteenth of each year, submit an annual report
     2  of such activity pursuant to subdivision nineteen of this section to the
     3  temporary president of the senate and to the speaker of the assembly.
     4    §  2.  Section  2  of the state finance law is amended by adding a new
     5  subdivision 20 to read as follows:
     6    20. "Journal transfer". Any transfer or other method  of  movement  of
     7  federal  or  state  monies by the comptroller including, but not limited

     8  to, expenditure journal transfers, revenue journal transfers and  statu-
     9  tory  transfers,  between accounts and/or funds not specifically author-
    10  ized by the state legislature.
    11    § 3. Section 22 of the state finance law is amended by  adding  a  new
    12  subdivision 1-c to read as follows:
    13    1-c.  within  ten days following the submission of the financial plans
    14  presented in accordance with subdivision one of this section, the direc-
    15  tor of the budget shall submit to the chairs of the senate  finance  and
    16  the  assembly  ways and means committees and the comptroller an estimate
    17  of the fiscal impact of the executive budget  general  fund  changes  on
    18  local  governments  and,  where  practicable, the fiscal impact on local

    19  governments of the executive budget  all  fund  changes  concerning  the
    20  medicaid  program,  homeland  security program, and workforce investment
    21  programs. Such estimate shall be presented by class of local  government
    22  and  shall measure all of the impacts of the executive budget, including
    23  aid program changes, reimbursement changes, statutory changes in author-
    24  izations for local taxation, mandates on  local  governments  and  other
    25  requirements.  Such  estimate shall show the impact on local governments
    26  by local fiscal years affected and shall cover the  first  local  fiscal
    27  year affected as well as the ensuing local fiscal year. Where such esti-
    28  mate depends on any local option or action, the estimate shall explicit-

    29  ly  describe  the assumptions used to calculate the estimate. When under
    30  existing law a local tax option or program would end and  the  executive
    31  budget proposes the continuation thereof, the impact shall be identified
    32  as  a  "deferral of sunset" and shall be calculated as a separate compo-
    33  nent of such estimate.
    34    § 4. Section 22-b of the state finance law, as added by chapter 762 of
    35  the laws of 1992, is amended to read as follows:
    36    § 22-b. Report of the legislature on the enacted budget. Within thirty
    37  days of passage of the budget the senate and the assembly  shall  issue,
    38  either  jointly  or separately, a legislative report on the budget. Such
    39  report shall contain a description of appropriation changes between  the
    40  budget  submitted  by the governor and the enacted budget and the effect

    41  of such changes on employment levels.  Commencing with fiscal year nine-
    42  teen hundred  ninety-four--nineteen  hundred  ninety-five,  such  report
    43  shall  also  summarize  changes  in appropriations by function in a form
    44  suitable for comparison with the schedule required to be submitted  with
    45  the  governor's  proposed budget.  Commencing with fiscal year two thou-
    46  sand seven--two thousand eight, such report shall also include an  esti-
    47  mate of the impact of the enacted budget on local governments, the state
    48  workforce,  and  general  fund  projections for the ensuing fiscal year,
    49  consistent with the requirements of subdivision one-c of  section  twen-
    50  ty-two  of  this article. The findings and descriptions contained in the
    51  report required by this  section  shall  constitute  the  expression  of

    52  legislative  intent  with  respect  to  the  budget to which such report
    53  relates.
    54    § 5. Paragraph e-2 of subdivision 3 of section 22 of the state finance
    55  law, as added by chapter 762 of the laws of 1992, is amended to read  as
    56  follows:

        S. 1322                             3
 
     1    e-2.  A  [measure of the] description of employment [level] levels for
     2  each state department, division or office, for [both] the prior, current
     3  and next ensuing fiscal [year, provided however that for the fiscal year
     4  beginning April first, nineteen hundred ninety-three--ninety-four,  such
     5  measure shall be presented only for the general fund] year containing:
     6    (1) separate schedules for each fund type; and

     7    (2)  an  all  funds  summary. Such information shall be presented in a
     8  form that facilitates  comparisons  among  agencies  and  across  fiscal
     9  years, and shall include:
    10    (i) actual and projected full-time equivalents; and
    11    (ii)  proposed  changes  to  the  work  force in the executive budget,
    12  including but not limited to: new  positions,  layoffs,  attrition,  and
    13  changes  in  funding sources. To the extent practicable, the division of
    14  the budget shall facilitate the provision of other relevant  information
    15  on  employment  to  the  legislature in a timely manner during the state
    16  fiscal year.
    17    § 6. Subdivision 6 of section 23 of the state finance law, as added by
    18  chapter 309 of the laws of 1996, is amended to read as follows:

    19    6. Consensus economic and revenue forecasting conference; report.  (a)
    20  [In the month] By the end of [March] February in each year, prior to the
    21  report  required  by  paragraph (b) of this subdivision, the chairperson
    22  and ranking minority member of the senate finance committee, the  chair-
    23  person  and  ranking  minority  member  of  the  assembly ways and means
    24  committee and the director of the budget shall jointly convene a consen-
    25  sus economic and revenue forecasting conference in the form of  a  joint
    26  legislative-executive hearing, for the purpose of assisting the governor
    27  and  the legislature in reaching the consensus revenue forecast required
    28  by paragraph (b) of this subdivision. The conveners  of  the  conference
    29  shall  invite  the  state comptroller and such other participants to the

    30  conference as shall, in their judgment, provide guidance on the  current
    31  conditions  in, and probable outlook for the performance of, the economy
    32  of the state, as well as the effect of such conditions and such perform-
    33  ance on state receipts.
    34    (b) On or before March [tenth] first in each year, the director of the
    35  budget and the secretary of the senate finance committee and the  secre-
    36  tary of the assembly ways and means committee shall issue a joint report
    37  containing a consensus forecast of the economy and estimates of receipts
    38  for  the  current  and  the ensuing state fiscal year. [The report] Such
    39  estimates of receipts shall include, but [shall] not be limited to[, the
    40  following information, presented  on  the  cash  basis  of  accounting]:

    41  expected tax receipts on an all-funds basis, projected lottery receipts,
    42  and  anticipated  miscellaneous  receipts  to be received in the general
    43  fund.  The estimate of receipts for the ensuing fiscal year contained in
    44  the report, shall be all receipts from such sources  described  in  this
    45  subdivision  available to make disbursements authorized by the appropri-
    46  ation bills submitted by the governor pursuant to section three of arti-
    47  cle seven of the constitution for the ensuing fiscal year.
    48    (c) On a failure of the director of the budget, the secretary  of  the
    49  senate  finance  committee  and  the  secretary of the assembly ways and
    50  means committee to issue a joint report containing a consensus  forecast

    51  as  provided in paragraph (b) of this subdivision, the state comptroller
    52  shall, on or before March fifth, provide estimates of receipts  for  the
    53  current and the ensuing state fiscal year. Such estimates shall include,
    54  but  not  be  limited  to,  expected tax receipts on an all-funds basis,
    55  projected lottery receipts, and miscellaneous receipts to be received in
    56  the general fund. In rendering his or her estimate, as required in  this

        S. 1322                             4
 
     1  paragraph,  the comptroller shall give due consideration to the inherent
     2  risks in economic and revenue forecasting and the interest of the  state
     3  to  maintain  budget balance throughout the fiscal year. The estimate of

     4  receipts  for the ensuing fiscal year provided by the state comptroller,
     5  shall be all receipts from such sources available to make  disbursements
     6  authorized by the appropriation bills submitted by the governor pursuant
     7  to  section  three  of article seven of the constitution for the ensuing
     8  fiscal year.
     9    § 7. Subdivision 5 of section 23 of the state finance law, as added by
    10  chapter 762 of the laws of 1992, is amended to read as follows:
    11    5. Financial  information  review.  Annually  on  or  before  November
    12  fifteenth,  the  governor,  temporary president of the senate [and], the
    13  speaker of the assembly and the comptroller shall cause their respective
    14  appropriate personnel to meet and such meeting  shall  be  open  to  the

    15  public for the purpose of jointly reviewing available financial informa-
    16  tion [and developing a process] to facilitate timely adoption of a budg-
    17  et  for  the next fiscal year. Such [process] review shall include meet-
    18  ings to discuss  the  economic  outlook,  revenue  forecasts,  projected
    19  spending, the impact of relevant state and federal statutory provisions,
    20  and  any  other  matters  deemed  appropriate.  Not later than [December
    21  fifteenth] November fifth, such respective appropriate  personnel  shall
    22  [report  to  their  principals  on the steps necessary to accomplish the
    23  adoption of a timely  budget]  separately  prepare  and  make  available
    24  reports  on  estimated  state  receipts  and state disbursements for the

    25  current and  ensuing  fiscal  years.  Each  report  on  estimated  state
    26  receipts  shall  include,  but  shall  not  be limited to, estimated tax
    27  receipts on an all-funds basis, estimated  lottery  receipts,  estimated
    28  miscellaneous  receipts  to  be  received  in  the general fund, and the
    29  underlying factors and data  upon  which  such  estimated  receipts  are
    30  based.   Each report on estimated state disbursements shall include, but
    31  shall not be limited to, estimates of state disbursements  for  Medicaid
    32  and  the  underlying factors and data on which such estimates are based,
    33  estimates of state disbursements for public assistance and the  underly-
    34  ing  caseload  and  other  factors  and data on which such estimates are

    35  based, and estimates of state disbursements for assistance for elementa-
    36  ry and secondary education and the underlying factors and data on  which
    37  such  estimates  are  based.    The governor, temporary president of the
    38  senate and the speaker of the  assembly  shall  cause  their  respective
    39  appropriate  personnel  to  meet  annually on or after November fifth to
    40  review the separate  reports  on  estimated  state  receipts  and  state
    41  disbursements.  The  respective appropriate personnel shall identify and
    42  evaluate the differences between the estimates  of  state  receipts  and
    43  state  disbursements, and the differences between the underlying factors
    44  and data on which such estimates are based, and separately  report  such

    45  differences  and  the  evaluation thereof to their principals. Not later
    46  than November fifteenth the governor, the  temporary  president  of  the
    47  senate  and  the  speaker of the assembly shall jointly prepare and make
    48  available on their internet websites a report on the  actual,  estimated
    49  and  projected  state  receipts  and  state disbursements for the prior,
    50  current and ensuing fiscal years, respectively, for  all  funds  of  the
    51  state.  Subsequent  review  shall be held within six weeks following the
    52  end of the first quarter of the fiscal year.
    53    § 8. Paragraph d-2 of subdivision 3 of section 22 of the state finance
    54  law, as amended by chapter 260 of the laws of 1993, is amended  to  read
    55  as follows:


        S. 1322                             5
 
     1    d-2.  Within  ten days following the submission of the financial plans
     2  presented in accordance with subdivisions one and two of  this  section,
     3  the  director  of  the  budget  shall  submit to the comptroller and the
     4  chairs of the senate finance committee and the assembly ways  and  means
     5  committee:
     6    (i)  a  detailed  schedule  by  fund of the receipts and disbursements
     7  comprising such summary financial plan[, and];
     8    (ii) a schedule for each governmental fund type other than the general
     9  fund showing the differences between projected operating  results  on  a
    10  cash basis and those on the basis of generally accepted accounting prin-
    11  ciples[, and];
    12    (iii)  a detailed schedule by fund of revenues and expenditures within

    13  the general fund;
    14    (iv) a detailed schedule by fund of receipts for  the  prior,  current
    15  and  next  three  fiscal  years.  Such  schedule shall present the major
    16  revenue sources for each fund, including detail for each major tax,  and
    17  major components of miscellaneous receipts; and
    18    (v) an itemized list of transfers to and from the general fund.
    19    §  9.  Paragraph e of subdivision 3 of section 22 of the state finance
    20  law, as amended by chapter 762 of the laws of 1992, is amended  to  read
    21  as follows:
    22    e.  The  anticipated  general  fund quarterly schedule and fiscal year
    23  total for the prior, current and next ensuing fiscal  [year]  years  of:
    24  disbursements;  receipts; repayments of advances; total tax refunds; and

    25  refunds for the tax imposed under article twenty-two  of  the  tax  law.
    26  Such  information  shall  be  presented  in the same form as the summary
    27  financial plans presented in accordance with subdivisions one and two of
    28  this section. A separate, detailed, report of  such  schedule  shall  be
    29  provided  with  receipts shown by each major revenue category, including
    30  detail  for  each  major  tax  and  major  components  of  miscellaneous
    31  receipts, and with disbursements shown by major function or program. The
    32  director  of the division of the budget shall submit concurrent with the
    33  submission of the financial plan to the legislature pursuant to subdivi-
    34  sion two of this section and  with  each  update  thereafter  a  revised

    35  monthly  general fund cash flow projection of receipts and disbursements
    36  for the current fiscal year that: (1) compares  actual  results  to  (i)
    37  actual  results  through the same period for the prior year and (ii) the
    38  most recent prior update to the financial plan and to the enacted budget
    39  financial plan; (2) summarizes the reasons for any  variances;  and  (3)
    40  describes the revisions to the cash flow projections. The monthly gener-
    41  al  fund cash flow projection shall be stated by major category of local
    42  assistance, personal service, nonpersonal service, general state  charg-
    43  es,  and  debt  service,  and by major category of revenue. Such reports
    44  shall utilize a format that shall  facilitate  comparison  and  analysis

    45  with  those  reports submitted to the legislature by the office of audit
    46  and control pursuant to subdivision nine of section eight of this  chap-
    47  ter.
    48    §  10.  Section 22 of the state finance law is amended by adding a new
    49  subdivision 14 to read as follows:
    50    14. a. With respect to information technology projects,  dependent  on
    51  funding  in  the  executive  budget,  involving  one  or  more contracts
    52  projected to total ten million  dollars  or  more,  within  thirty  days
    53  following  the  submission of the budget by the governor for each fiscal
    54  year, beginning with the two thousand eight--two  thousand  nine  fiscal
    55  year,  the  director  of  the budget shall transmit to the chairs of the


        S. 1322                             6
 
     1  senate finance committee and the assembly ways  and  means  committee  a
     2  report which shall set forth the following:
     3    (1) project summary describing the project purpose, proposed approach,
     4  key milestones, current status and timetable;
     5    (2)  the proposed method of procurement, including whether the project
     6  will, in whole or in part, utilize a centralized  contract  or  a  sole-
     7  source contract; and
     8    (3)  the proposed funding source, financing method and estimated costs
     9  by fiscal year.
    10    b. Information provided pursuant to paragraph a  of  this  subdivision
    11  may  not  be  disclosed to any party other than a governmental entity as

    12  defined in section one hundred thirty-nine-j of this  chapter,  if  such
    13  disclosure  would impair the fairness or competitiveness of a pending or
    14  potential procurement process.
    15    Estimated costs by fiscal year shall not be disclosed.
    16    § 11. Subdivision 4 of section 22 of the state finance law, as amended
    17  by chapter 762 of the laws of 1992, is amended to read as follows:
    18    4. a. Include a three  year  financial  projection[,  which  shall  be
    19  submitted  not  later than thirty days after submission of the financial
    20  plans pursuant to subdivision one of this section,] showing  the  antic-
    21  ipated  disbursements  and  receipts  for  each of the governmental fund
    22  types of the state [and, for the general fund the  anticipated  expendi-

    23  tures  and  revenues  for  the ensuing fiscal year and for the two years
    24  following the ensuing fiscal year]. For the purposes of this three  year
    25  financial   projection,   disbursements   [and  expenditures]  shall  be
    26  presented by the following purposes: state purposes,  local  assistance,
    27  capital projects, debt service, transfers and general state charges with
    28  each  major  function or major program identified separately within each
    29  purpose; and receipts [and revenues] shall be presented[,] by each major
    30  revenue category, including detail for each major tax, and major  compo-
    31  nents  of  miscellaneous  receipts and with disbursements shown by major

    32  function or program for the prior year,  current  year  and  next  three
    33  [ensuing  and next successive] fiscal [year by each revenue source which
    34  accounts for not less than one per centum of all receipts or revenues of
    35  the general fund] years, and otherwise by each  major  source  which  is
    36  separately  estimated  and presented pursuant to paragraph b of subdivi-
    37  sion three of this section [and, for the remaining fiscal year  by  each
    38  revenue  source  which  accounts  for at least ten per centum of all the
    39  receipts or revenues and otherwise by  categories  of  revenue  sources.
    40  Provided however, that for the fiscal year beginning in nineteen hundred
    41  ninety-three,  for  the  governmental funds other than the general fund,

    42  receipts shall be presented by each revenue source which accounts for at
    43  least ten per centum of all the receipts and otherwise by categories  of
    44  revenue  source].  Receipts  and disbursements for special revenue funds
    45  shall be presented separately for federal funds and  all  other  special
    46  revenue  funds.  Whenever  receipts and disbursements are proposed to be
    47  moved to a different fund type, each significant amount so  moved  shall
    48  be  explained.  This  three  year  financial projection shall include an
    49  explanation of any changes to the financial plans submitted  in  accord-
    50  ance  with  subdivision  one of this section and include explanations of
    51  the economic, statutory and  other  assumptions  used  to  estimate  the

    52  disbursements[,  expenditures,]  and  receipts  [and revenues] which are
    53  presented. Whenever the projections for receipts and  disbursements  are
    54  based  on  assumptions  other  than  the current levels of service, such
    55  assumptions shall be separately identified and explained. The three year

        S. 1322                             7
 
     1  financial projections shall include a description of any projected defi-
     2  cits or surpluses.
     3    §  12.  Section 22 of the state finance law is amended by adding a new
     4  subdivision 15 to read as follows:
     5    15. The division of the budget shall prepare the  reports,  schedules,
     6  and other information described in this subdivision. To the extent prac-

     7  ticable,  such  reports,  schedules, and information shall be in a form,
     8  and presented at a level of detail, that facilitates  comparison  on  an
     9  annual basis and against actual results, as appropriate, and in a manner
    10  consistent  with  the  other  reporting  requirements enumerated in this
    11  section. The reports, schedules, and other information required by  this
    12  subdivision  shall  be  submitted  to  the  chair  of the senate finance
    13  committee, the chair of the  assembly  ways  and  means  committee,  the
    14  minority  leaders  of  both houses, and the comptroller according to the
    15  schedules set forth in this section. In determining  the  final  content
    16  and  format of the information required by this section, the division of

    17  the budget shall consult annually with the designees  of  the  temporary
    18  president of the senate, the speaker of the assembly, the minority lead-
    19  ers  of  both  houses, and the comptroller. All information described in
    20  this subdivision shall be made available to the public.
    21    a. The executive budget, the enacted budget report and each  quarterly
    22  update to the financial plan shall include an updated general fund fore-
    23  cast  of  receipts  and disbursements for the current and two succeeding
    24  fiscal years. Such updated forecast shall clearly identify  and  explain
    25  the  revisions  to  the  receipts and disbursements projections from the
    26  most recent prior update to the  financial  plan,  and  any  significant

    27  revisions to the underlying factors affecting receipts and disbursements
    28  by  major  function,  and  may include, but not be limited to: caseload,
    29  service, and utilization rates; demographic trends; economic  variables;
    30  pension fund performance; incarceration rates; prescription drug prices;
    31  health  insurance  premiums;  inflation;  contractual obligations; liti-
    32  gation; and state employment trends.
    33    b. The capital  program  and  financing  plan  submitted  pursuant  to
    34  section  twenty-two-c  of  this article, and the update thereto required
    35  pursuant to section twenty-three of this article, shall include a report
    36  on the management of state-supported debt. Such report may include,  but

    37  is not limited to: (1) an assessment of the affordability of state debt,
    38  including  debt  as  a  percent of personal income, debt per capita, and
    39  debt service costs as a percent of the budget; (2) a summary and  analy-
    40  sis of the interest rate exchange agreements and variable rate exposure;
    41  and  (3) an assessment of financing opportunities related to the state's
    42  debt portfolio.
    43    § 13. Subdivisions 3 and 4 of section 23 of  the  state  finance  law,
    44  subdivision 3 as amended by chapter 837 of the laws of 1983 and subdivi-
    45  sion 4 as amended by chapter 59 of the laws of 2000, are amended to read
    46  as follows:
    47    3.  Financial  plans  and  capital improvement program; revisions. [As
    48  soon as practicable] Not later than thirty days  after  the  legislature

    49  has  completed action on the budget bills submitted by the governor [for
    50  state purposes, local assistance, capital projects and debt service, the
    51  governor] and the period for the  governor's  review  has  elapsed,  the
    52  governor shall cause to be submitted to the legislature the revisions to
    53  the  financial  plans and the capital plan required by subdivisions one,
    54  two, four and five of section twenty-two of this  [chapter]  article  as
    55  are  necessary  to  account  for  all enactments affecting the financial
    56  plans and the capital plan. [Such] The financial plan shall also contain

        S. 1322                             8
 
     1  a cash flow analysis of projected receipts and disbursements  and  other

     2  financing  sources  or  uses  for each month of the state's fiscal year.
     3  Notwithstanding any other law to the contrary, such  revised  plans  and
     4  accompanying  cash  flow  analysis shall be submitted to the legislature
     5  and the comptroller in the same form  as  the  plans  required  by  such
     6  subdivisions.
     7    4.  Financial plan updates. Quarterly, throughout the fiscal year, the
     8  governor shall submit to the comptroller,  the  [chair]  chairs  of  the
     9  senate  finance  [committee]  and  [the  chair of] the assembly ways and
    10  means [committee for the use of the committees and  the  information  of
    11  the  legislature]  committees,  within  thirty  days of the close of the

    12  quarter to which it shall pertain, a report which summarizes the  actual
    13  experience  to  date  and  projections for the remaining quarters of the
    14  current fiscal year and for  each  of  the  next  two  fiscal  years  of
    15  receipts,   disbursements,  tax  refunds,  and  repayments  of  advances
    16  presented in forms suitable  for  comparison  with  the  financial  plan
    17  submitted pursuant to [subdivision] subdivisions one, four, and five, of
    18  section  twenty-two  of  this article and revised in accordance with the
    19  provisions of subdivision three of  this  section.  The  governor  shall
    20  submit  with  the budget [and on September first of each year] a similar
    21  report that summarizes revenue and expenditure experience to date  in  a
    22  form  suitable for comparison with the financial plan submitted pursuant

    23  to subdivision two of section twenty-two of this article and revised  in
    24  accordance  with  the  provisions  of subdivision three of this section.
    25  Such reports shall provide an explanation of the  causes  of  any  major
    26  deviations  from  the revised financial plans and, shall provide for the
    27  amendment of the plan or plans to reflect those deviations. The governor
    28  may, if he determines it advisable, provide more frequent reports to the
    29  legislature regarding actual experience as  compared  to  the  financial
    30  plans.  The  quarterly  financial  plan update most proximate to October
    31  thirty-first of each year shall include the calculation of  the  limita-
    32  tions  on  the issuance of state-supported debt computed pursuant to the
    33  provisions of subdivisions one and two of section sixty-seven-b of  this
    34  chapter.
    35    §  14.  The state finance law is amended by adding a new section 92-cc

    36  to read as follows:
    37    § 92-cc. Rainy day reserve fund.  1. There is  hereby  established  in
    38  the  state  treasury a fund to be known as the "rainy day reserve fund".
    39  Such fund shall consist of moneys deposited therein and monies shall  be
    40  withdrawn from such fund only for the purposes as provided therein.
    41    2.  Such  fund  shall  have  a maximum balance not to exceed three per
    42  centum of the aggregate amount projected to be disbursed from the gener-
    43  al fund during the fiscal year immediately  following  the  then-current
    44  fiscal year.
    45    3. a. The amounts available in such reserve may be used if the follow-
    46  ing conditions are met:
    47    (i)  Economic  downturn. The commissioner of labor shall calculate and

    48  publish, on or before the fifteenth day of each month, a composite index
    49  of business cycle indicators.  Such  index  shall  be  calculated  using
    50  monthly  data  on  New  York state employment, total manufacturing hours
    51  worked, and unemployment prepared by the  department  of  labor  or  its
    52  successor  agency,  and  total  sales  tax collected net of law changes,
    53  prepared by the department of taxation  and  finance  or  its  successor
    54  agency.  Such  index  shall be constructed in accordance with the proce-
    55  dures for calculating composite indexes issued by the  conference  board
    56  or  its  successor organization, and adjusted for seasonal variations in

        S. 1322                             9
 

     1  accordance with the procedures issued by the census bureau of the United
     2  States department of commerce or its successor agency. If the  composite
     3  index  declines  for  five consecutive months, the commissioner of labor
     4  shall  notify  the  governor, the speaker of the assembly, the temporary
     5  president of the senate, and the minority leaders of  the  assembly  and
     6  the  senate.    Upon  such  notification, the director of the budget may
     7  authorize and direct the comptroller to  transfer  from  the  rainy  day
     8  reserve  fund  to  the  general fund such amounts as the director of the
     9  budget deems necessary to meet the requirements of the  state  financial
    10  plan.  The  authority  to  transfer  funds  under the provisions of this

    11  subdivision shall lapse when the composite index  shall  have  increased
    12  for five consecutive months or twelve months from the original notifica-
    13  tion  of  the commissioner of labor, whichever occurs earlier. Provided,
    14  however, that for  every  additional  and  consecutive  monthly  decline
    15  succeeding the five month decline so noted by the commissioner of labor,
    16  the  twelve  month lapse date shall be extended by one additional month;
    17  or
    18    (ii) Catastrophic events. In the event of a need  to  repel  invasion,
    19  suppress  insurrection,  defend  the  state in war, or to respond to any
    20  other emergency resulting from a disaster, including but not limited to,
    21  a disaster caused by an act of terrorism, the director of the budget may

    22  authorize and direct the comptroller to  transfer  from  the  rainy  day
    23  reserve  fund  to  the  general fund such amounts as the director of the
    24  budget deems necessary to meet the requirements of the  state  financial
    25  plan.
    26    b.  Prior  to authorizing any transfer from the rainy day reserve fund
    27  pursuant to the provisions of this section, the director of  the  budget
    28  shall notify the speaker of the assembly, the temporary president of the
    29  senate,  and  the minority leaders of the assembly and the senate.  Such
    30  letter shall specify the reasons for the transfer and the amount  there-
    31  of.  Any  amounts  transferred  from  the  rainy day reserve fund to the
    32  general fund shall be subject to all the repayment  provisions  of  this

    33  section.
    34    4.  Any transfer authorized in subdivision three of this section shall
    35  be repaid in cash within a period of three years  after  the  date  that
    36  such  authority  to transfer funds under the provisions of this subdivi-
    37  sion lapses, provided however that any transfer authorized as  a  result
    38  of  a  catastrophic event shall be subject to repayment provisions to be
    39  proposed by the governor and implemented by appropriation or transfer of
    40  funds.
    41    § 15. Article 3 of the legislative law is  amended  by  adding  a  new
    42  section 54-a to read as follows:
    43    §  54-a. Scheduling of legislative consideration of budget bills.  The
    44  legislature shall by concurrent resolution of the  senate  and  assembly

    45  prescribe by joint rule or rules a procedure for:
    46    1.  establishing  a  joint budget conference committee or joint budget
    47  conference committees within ten days following the  submission  of  the
    48  budget by the governor pursuant to article seven of the constitution, to
    49  consider  and reconcile such budget resolution or budget bills as may be
    50  passed by each house; and
    51    2. promulgating a schedule within ten days following the submission of
    52  the budget by the governor pursuant to article seven  of  the  constitu-
    53  tion,  for  considering  and  acting  upon such budget appropriation and
    54  related bills which shall include:
    55    (a) dates for those actions required to be taken  by  the  legislature

    56  pursuant to section fifty-three of this chapter;

        S. 1322                            10
 
     1    (b)  dates  for  public  hearings  on  submissions  by the governor as
     2  required by section thirty-two-a of this chapter;
     3    (c)  a date for the establishment of joint budget conference committee
     4  or committees; and
     5    (d) a date by which such joint budget conference committee or  commit-
     6  tees shall issue their final reports.
     7    §  16.  The  opening paragraph of section 54 of the legislative law is
     8  designated subdivision 1 and a new subdivision 2 is  added  to  read  as
     9  follows:
    10    2.  (a)  The  legislature shall enact a budget for the upcoming fiscal
    11  year that it determines is balanced in the general fund.

    12    (b) Before voting upon an appropriation bill submitted by the governor
    13  and related legislation, as amended, in accordance with article seven of
    14  the constitution, each house shall place on the desks of its  members  a
    15  report  relating  to  each  such bill and, preceding final action on all
    16  such appropriation bills and legislation, members shall be  so  provided
    17  with  a  comprehensive, cumulative report relating to all such bills and
    18  legislation.
    19    (c) The reports prepared by each house shall include for  the  general
    20  fund a summary of proposed legislative revisions to the executive budget
    21  for  the  ensuing fiscal year, and shall separately identify and present
    22  all legislative additions, reestimates and other revisions that increase

    23  or decrease disbursements,  and  separately  identify  and  present  all
    24  legislative  reestimates  and  other revisions that increase or decrease
    25  available resources. Such report shall, where practicable,  display  and
    26  separately  identify and present all legislative additions, reestimates,
    27  and other revisions that increase or decrease state funds and all  funds
    28  spending,  including an estimate of the impact of the proposed revisions
    29  on local governments and the state workforce.
    30    § 17. The state finance law is amended by adding a new section 53-d to
    31  read as follows:
    32    § 53-d. Estimates of fiscal impact. If an appropriation bill passed by
    33  the legislature contains items that the legislature has added in  accord

    34  with  section  four of article seven of the constitution, then such bill
    35  must be accompanied by an estimate of the fiscal impact of  such  legis-
    36  lation  on  the budget submitted by the governor pursuant to section two
    37  of article seven of the constitution which shall include,  if  appropri-
    38  ate, an estimate of moneys and revenues, either in law or in legislation
    39  passed  by  both  houses  with the budget, sufficient to meet such addi-
    40  tions. Such bill shall  also  include  such  other  recommendations  and
    41  information  as  the  legislature  may  deem  proper and such additional
    42  information as may be required by law. None of the restrictions of  this
    43  section,  however,  shall apply to appropriations for the legislature or
    44  judiciary.

    45    § 18. Section 2-a of the state finance law is amended  by  adding  two
    46  new subdivisions 7 and 8 to read as follows:
    47    7.  "Lump  sum  appropriation". An item of appropriation with a single
    48  related object or purpose, the purpose of which is to fund more than one
    49  grantee by a means  other  than  a  statutorily  prescribed  formula,  a
    50  competitive  process,  or  an allocation pursuant to subdivision five of
    51  section twenty-four of this chapter.
    52    8. "Grantee". Any group, corporation, municipal or governmental entity
    53  that receives funding from the state.
    54    § 19. Subdivision 1 of section 24 of the state finance law, as amended
    55  by chapter 762 of the laws of 1992, is amended to read as follows:

        S. 1322                            11
 

     1    1. The budget submitted annually by the governor shall  be  simultane-
     2  ously accompanied by a bill or bills for all proposed appropriations and
     3  reappropriations  and  for  the  proposed  measures of taxation or other
     4  legislation, if any, recommended therein. Such bills shall be  submitted
     5  by the governor and shall be known as budget bills.
     6    (a)  For all non-federal state operations appropriations, such bill or
     7  bills shall only contain itemized  appropriations  and  shall  be  made,
     8  where practicable, by agency and within each agency by program and with-
     9  in  each  program  at the following level of detail and in the following
    10  order:
    11    (i) by fund type, which at  a  minimum  shall  include  general  fund,
    12  special  revenue-other  funds,  capital projects funds, and debt service

    13  funds;
    14    (ii) for  personal  service  appropriations,  separate  appropriations
    15  shall  be made for regular personal service, temporary personal service,
    16  and holiday and overtime pay;
    17    (iii) for nonpersonal service appropriations, separate  appropriations
    18  shall  be made for supplies and materials, travel, contractual services,
    19  equipment, and fringe benefits, as appropriate.
    20    (b) Any appropriation for temporary assistance for needy families, the
    21  environmental protection fund, and the medical assistance program, shall
    22  only contain itemized appropriations which shall not be in the  form  of
    23  lump  sum  appropriations,  provided,  however,  for the purposes of the

    24  medical assistance program, itemized  appropriations  shall  consist  of
    25  categories-of-service  with  separate  appropriations for hospital inpa-
    26  tient, hospital outpatient and emergency  room,  clinic,  nursing  home,
    27  other  long-term  care,  managed care, pharmacy, dental, transportation,
    28  and other non-institutional services.
    29    § 20. Section 24 of the state finance law is amended by adding two new
    30  subdivisions 4 and 5 to read as follows:
    31    4. Any appropriation added to such budget bills, pursuant  to  section
    32  four  of  article seven of the constitution, shall only contain itemized
    33  appropriations which shall not be in the  form  of  lump  sum  appropri-
    34  ations,  and  provided further that for all non-federal state operations

    35  appropriations, such bill or bills shall only contain itemized appropri-
    36  ations and shall be made, where practicable, by agency, and within  each
    37  agency  by  program  and  within  each program at the following level of
    38  detail and in the following order:
    39    (a) by fund type, which at  a  minimum  shall  include  general  fund,
    40  special  revenue-other  funds,  capital  projects funds and debt service
    41  funds;
    42    (b) for personal service appropriations, separate appropriations shall
    43  be made for regular personal service, temporary  personal  service,  and
    44  holiday and overtime pay;
    45    (c)  for  nonpersonal  service appropriations, separate appropriations
    46  shall be made for supplies and materials, travel, contractual  services,

    47  equipment and fringe benefits, as appropriate.
    48    5.  Any  appropriation added pursuant to section four of article seven
    49  of the constitution without designating a  grantee  shall  be  allocated
    50  only  pursuant to a plan setting forth an itemized list of grantees with
    51  the amount to be received by each, or  the  methodology  for  allocating
    52  such  appropriation.  Such  plan shall be subject to the approval of the
    53  chair of the senate finance committee, the chair of  the  assembly  ways
    54  and  means  committee,  and  the  director of the budget, and thereafter
    55  shall be included in a concurrent resolution calling for the expenditure

        S. 1322                            12
 

     1  of such monies, which resolution must be approved by a majority vote  of
     2  all members elected to each house upon a roll call vote.
     3    §  21. Paragraph i of subdivision 3 of section 22 of the state finance
     4  law, as amended by chapter 762 of the laws of 1992, is amended  to  read
     5  as follows:
     6    i.  A  statement  setting  forth state involvement in the fiscal oper-
     7  ations of those public authorities and public benefit corporations which
     8  may be part of the development of a comprehensive  state  budget  system
     9  and  provided therefor in the state financial plan. Such statement shall
    10  include those public authorities and public  benefit  corporations  with
    11  disbursements  which  are  not  currently reflected in the state central
    12  accounting system from proceeds of any notes  or  bonds  issued  by  any

    13  public authority, and which bonds or notes would be considered as state-
    14  supported debt as defined in section sixty-seven-a of this chapter. Such
    15  statement  shall  set  forth  the  amount of all of the bonds, notes and
    16  other obligations of each public authority, public  benefit  corporation
    17  and  all other agencies and instrumentalities of the state for which the
    18  full faith and credit of the state has been pledged  or  on  account  of
    19  which the state has by law given its pledge or assurance for the contin-
    20  ued  operation  and  solvency  of  the authority, public corporation, or
    21  other agency or instrumentality of the state, as the case may  be.  Such
    22  statement shall also set forth all proposed appropriations to be made to
    23  any  public  authority, public benefit corporation, and any other agency
    24  or instrumentality of the state which has been created or  continued  by

    25  law and which is separate and distinct from the state itself.
    26    §  22.  Section 22 of the state finance law is amended by adding a new
    27  subdivision 16 to read as follows:
    28    16. The governor shall  make  all  practicable  efforts  to  amend  or
    29  supplement the budget and submit supplemental bills or amendments to any
    30  bills  pursuant  to  article seven of the constitution within twenty-one
    31  days after the budget is submitted to the legislature.
    32    § 23. This act shall take effect immediately.
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