Source: https://www.nysenate.gov/legislation/bills/2015/s5507/amendment/original
Timestamp: 2019-04-21 18:15:35
Document Index: 269067011

Matched Legal Cases: ['Art 17', '§244', '§92', '§ 244', '§ 245', '§ 246', '§ 92']

NY State Senate Bill S5507
senate Bill S5507
Get Status Alerts for S5507
Jan 12, 2016 referred to ways and means
Jan 11, 2016 ordered to third reading cal.7
May 14, 2015 referred to finance
Jan 12, 2016 - floor Vote
Floor Vote: Jan 12, 2016
Rules Committee Vote: Jan 11, 2016
S5507 (ACTIVE) - Details
Add Art 17 §§244 - 246, amd §92-cc, St Fin L
2009-2010: S5916
2011-2012: S716
2013-2014: S3770
2017-2018: S365
S5507 (ACTIVE) - Summary
Establishes an annual spending growth cap and increases the maximum capacity of the rainy day fund.
S5507 (ACTIVE) - Sponsor Memo
BILL NUMBER:S5507
An act to amend the state finance law, in relation to establishing a
spending cap and increasing the maximum capacity of the rainy day fund
This legislation will cap the growth of state spending and increase the
allowable reserve of the rainy day fund.
Section one of the bill would amend the State Finance Law ("SFL") to add
a new Article 17, establishing a state spending cap.
* New SFL § 244 sets for definitions for article 17.
* New SFL § 245 establishes a spending cap, which limits the growth of
state operating funds spending to no more than-the average rate of
inflation of the three previous calendar. years. In addition, the
section requires the governor to certify that the executive budget is
consistent with the cap and the comptroller will provide, within five
days of action by the Legislature upon the budget, a determination as to
whether the state budget as enacted exceeds the annual spending growth
cap. Finally, the section provides that if the Comptroller finds that
the state budget as enacted exceeds the annual spending growth cap, the
Governor must take corrective action, such as a veto, reducing state
agency spending within the control of the Executive or working with the
Legislature to enact spending reductions, to ensure that funding is
limited to the amount of the annual spending cap.
* New SFL § 246 provides that upon a finding of an emergency by the
Governor, he or she may declare-an emergency b executive order. Based
upon such declaration, the Governor may submit and the Legislature may
authorize by a two-thirds super majority a budget containing a percent-
age increase in state operating fund spending over the prior fiscal year
that exceeds the annual spending growth cap.
Section 2 of the bill would increase the maximum capacity of the state's
rainy day reserve from 3 percent of General Fund spending to 10 percent
of General Fund spending.
Section 4 would make the act effective.
SFL § 92-cc (2) establishes a maximum balance in the rainy day reserve
fund of three percent of the aggregate amount projected to be disbursed
annually from the General Fund.
State government spending has grown substantially in recent years espe-
cially in good economic times. Such growth has forced the State to take
drastic actions to stabilize; its finances when revenues decline dramat-
ically during periods of economic difficulty. For example, from 2002-03
to 2007-08, State Operating Funds spending grew from $52.8 billion to
$77.0 billion -- an average annual rate of7.86 percent. In great part
due to this dramatic expansion in spending, the State needed to address
a nearly $20.1 billion deficit during last year's budget process. To end
this pattern of boom and bust cycle budgeting, and impose greater fiscal
discipline on state government, this legislation would enact a strict
can limiting the growth of State Operating Funds spending. It also
significantly increases the maximum capacity of the State's rainy day
reserve so that surpluses that accrue as a result of this cap can be
used to help address revenue declines during times of economic difficul-
If the cap proposed in this legislation had been in place from 2002-03
to 2007-08, average annual spending growth during that period would have
averaged 2.6 percent. Additionally, 2007-08 State Operating Funds spend-
ing would have totaled $60.0 billion - $17.0 billion lower than actual
2014 Referred to Rules
30 days after it shall have become law.
S5507 (ACTIVE) - Bill Text download pdf
Introduced  by  Sens.  ROBACH, MURPHY -- read twice and ordered printed,
AN ACT to amend the state finance law, in  relation  to  establishing  a
Section 1. The state finance law is amended by adding a new article 17
ANNUAL SPENDING GROWTH CAP ACT
SECTION 244. DEFINITIONS.
245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
S 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED:
1. "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED  BY
ADDING  THE  INFLATION RATES FROM EACH OF THE THREE CALENDAR YEARS IMME-
DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID-
ING THAT SUM BY THREE.
2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF
ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF
THE STATE,  EXCLUDING  DISBURSEMENTS  FROM  FEDERAL  FUNDS  AND  CAPITAL
3.   "INFLATION   RATE"  SHALL  MEAN  THE  PERCENTAGE  CHANGE  IN  THE
TWELVE-MONTH AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU  OF  LABOR
STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO
4.  "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE
GOVERNOR  PURSUANT  TO SECTION ONE OF ARTICLE VII OF THE STATE CONSTITU-
LBD08406-02-5
S. 5507                             2
5.  "STATE BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY  THE
LEGISLATURE  IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF ARTI-
CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE
6.  "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR UNEXPECTED
OCCURRENCE, OR COMBINATION OF CIRCUMSTANCES, INCLUDING BUT  NOT  LIMITED
TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY.
S 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.  1. THERE IS HERE-
BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP.
2.  THE  GOVERNOR  SHALL NOT SUBMIT, AND THE LEGISLATURE SHALL NOT ACT
UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL
YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING
GROWTH CAP.
3. THE GOVERNOR SHALL CERTIFY IN WRITING THAT  STATE  OPERATING  FUNDS
SPENDING  IN  THE  EXECUTIVE  BUDGET DOES NOT EXCEED THE ANNUAL SPENDING
GROWTH CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR  IS
NOT  YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER EXECUTIVE
BUDGET, HE OR SHE SHALL FURNISH A  REASONABLE  ESTIMATE  OF  SUCH  PRIOR
CALENDAR YEAR INFLATION RATE.
4.  THE  COMPTROLLER  SHALL PROVIDE, WITHIN FIVE DAYS OF ACTION BY THE
LEGISLATURE UPON THE BUDGET, A DETERMINATION AS  TO  WHETHER  THE  STATE
OPERATING  FUNDS  SPENDING  AS  SET FORTH IN THE STATE BUDGET AS ENACTED
EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET
FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING  GROWTH
CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE THAT FUNDING IS
S 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.  1. UPON A FIND-
ING  OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN EMERGENCY
BY AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH  DECLA-
2.  BASED  UPON  SUCH  DECLARATION,  THE  GOVERNOR MAY SUBMIT, AND THE
LEGISLATURE MAY AUTHORIZE,  BY  A  TWO-THIRDS  SUPERMAJORITY,  A  BUDGET
CONTAINING  A  PERCENTAGE  INCREASE  OVER THE PRIOR FISCAL YEAR IN STATE
OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
S 2. Subdivision 2 of section 92-cc  of  the  state  finance  law,  as
amended  by section 12-a of part I of chapter 60 of the laws of 2015, is
2. Such fund shall have a maximum balance not to exceed [five] TEN per
centum of the aggregate amount projected to be disbursed from the gener-
al fund during the fiscal year immediately  following  the  then-current
fiscal  year.  At  the  request of the director of the budget, the state
comptroller shall transfer monies to the rainy day reserve  fund  up  to
and including an amount equivalent to seventy-five one-hundredths of one
per  centum  of  the aggregate amount projected to be disbursed from the
general fund during the then-current fiscal year, unless  such  transfer
would increase the rainy day reserve fund to an amount in excess of five
general fund during the fiscal year immediately following the  then-cur-
rent  fiscal year, in which event such transfer shall be limited to such
amount as will increase the rainy day reserve  fund  to  such  five  per
centum limitation.