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.
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.
