Assembly's Budget Reforms Will Open Budget-Making Process, Promote Accountability

Assemblyman Bill Magnarelli (D-Syracuse) announced Assembly introduction of a comprehensive reform plan to make New York's budget process more open, accountable and efficient.

"We have an obligation to spend tax dollars wisely and effectively," Magnarelli said. "This plan allows us to do just that by completely overhauling the way the budget crafting system works. With this plan in place, taxpayers will be able to have confidence that the right choices are being made with their money."

Making government accountable

The Assembly's reform package would change the beginning of the fiscal year from April 1 to May 1 (A.8989). "By starting the fiscal year a month later, we'll be able to get more accurate revenue forecasts and a bit more time to make better decisions," Magnarelli said.

To address ongoing scandals and questionable accounting tactics by state authorities and public benefit corporations, the Assembly proposes new legislation to combat those abuses. The measure would require state-related spending by most authorities involved in state functions to be included as part of the overall budget process.

"Secrecy is so pervasive in a number of state institutions that the public has lost its right to know what government is up to. We should welcome greater public scrutiny and oversight, not hide from it," Magnarelli said. "State authorities need this kind of accountability and openness."

The Assembly's reform package would also open hearings on state agency budgets to the public; require the governor to include more detail in his budget submission; increase the tax stabilization fund - allowing the state to put more money away in "rainy day" funds; and withhold the governor's salary until the budget is passed (A.8991). Currently, legislators' salaries are withheld. Ideally, this measure would encourage the governor to become more actively involved in the budget process.

Speeding along the budget process

The plan also creates a state legislative budget office to provide objective, non-partisan analysis of state revenues, expenditures and management practices (A.8446-A). The office would be modeled after the Congressional Budget Office and the New York City Independent Budget Office.

"A non-partisan budget office will help all of us do our jobs more efficiently, because we'll all have the same starting point," Magnarelli said.

Helping government run more smoothly

To improve efficiency and save taxpayers' dollars, the Assembly's plan would also:

  • create a strategic planning and performance measurement system to detail what the state budgets and spends, and determine how effectively and efficiently state agencies are operating (A.8990);
  • require additional reporting on the acquisition of information technology to keep officials and the public aware of how much money is being spent on those purchases (A.6977-A); and
  • provide state agencies access to information about responsible bidders on state contracts, helping them determine a bidder's history of contract performance and compliance with laws (A.3730).

Protecting health care quality and access

"While the Health Care Reform Act ensures access to quality, affordable health care for thousands of New Yorkers, more than half of the program's funding falls outside the scope of the state budget," said Magnarelli. "We can't let that lack of oversight become the program's undoing."

The Assembly introduced a bill establishing the Health Care Reform Act State Budget Transition Fund, which would receive HCRA revenues and be under the watch of the state comptroller (A.9106). More than half of the program, or approximately $2 billion annually, is currently "off-budget" and not subject to the normal financial checks and balances that would ensure accountability. The governor would be required to put this spending "on-budget" by providing appropriations for this program in the Executive Budget proposal.

"Opening up our budget process will help instill more confidence in state government, but more importantly, it will provide a level of scrutiny that will keep everyone honest," Magnarelli said. "New Yorkers must have confidence that their tax dollars are being spent on the things that are important to them - things like education and health care. This reform will give them just that."



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