senate Bill S3323

Enacts the "over-expenditure, under-expenditure, transfer notification (OUT) act" to provide for the use of surplus appropriated funds and over-expenditure approval

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 16 / Feb / 2011
    • REFERRED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO FINANCE

Summary

Enacts the "over-expenditure, under-expenditure, transfer notification (OUT) act" to provide for the use of surplus appropriated funds and over-expenditure approval.

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Bill Details

See Assembly Version of this Bill:
A5334
Versions:
S3323
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
State Finance Law
Laws Affected:
Add ยง53-e, St Fin L

Sponsor Memo

BILL NUMBER:S3323

TITLE OF BILL:
An act
to amend the state finance law, in relation to enacting the
"over-expenditure, under-expenditure, transfer notification (OUT) act"

PURPOSE:
Requires that the Comptroller be immediately notified of any
overexpenditure of taxpayer monies and that all leftover funds are
allocated to the general fund to pay down debt.

SUMMARY OF PROVISIONS:
Section 1: Cites the act as the "over-expenditure, under-expenditure,
transfer-notification (OUT) act.

Section 2: Amends the state finance law by adding a new section 53-e.

Section 53-e(1): Defines the terms of "state agencies" and "surplus
appropriated funds."

Section 53-e(2): Surplus Appropriated Funds; On April 1st, if a state
agency has a surplus of appropriated funds, the Governor, the
Comptroller and the Legislature must be notified of the surplus and
its amount prior to April 15th. Once notified, the Governor, the
Comptroller and the Legislature must act on the surplus before May
31st. These entities may allow the state agency to use the money as
they see fit or transfer the funds to another state agency. Any
appropriations proposed to transfer surplus funds must first be
approved by the Comptroller. Failure to act on the surplus funds will
result in the funds being transferred to the General Fund.

Section 53-e(3): All state agencies must notify the Governor,
Comptroller and the Legislature if they intend to overspend their
budget before taking such an action. The Governor and Legislature may
then enact legislation allowing such expenditures.
Legislation must be approved by the Comptroller.

Section 3: Allows for the act to take effect immediately.

JUSTIFICATION:
Oftentimes, a state agency will have a small amount of
money left over at the end of the year and unilaterally go on a last
minute spending binge. Pretty soon this impulse spending adds up to
big dollars.

The $136.5 billion New York State budget is really an amalgamation of
hundreds if not thousands of smaller state agency budgets. In fact:
there are more than 70 state agencies,
64 colleges in the State University of New York system and 20 City
University of New York campuses. This is on top of the scores of
public authorities that have little oversight by the legislature or
executive branch. Each of these entities can be divided into smaller
agencies, bureaus and departments each with their own little budget.


Oftentimes state agencies fear that if they come in under-budget
they'll face steep cuts in funding for the following year. It must be
established that State agencies that are fiscally responsible and
spend only what they have been authorized to spend should be
commended, not penalized.

The O.U.T. (Over-Expenditure/Under-Expenditure/Transfer-Notification)
of Debt Act aims to prevent future attempts to empty agency their
coffers at the end of the year to justify their budgets. This act
would put a check to this practice.

This legislation would require that all leftover funds are allocated
to the general fund to pay down debt or reduce the tax burden on our
citizens. If state agencies fail to comply, the Comptroller would be
mandated to cancel any unapproved over-expenditures/underexpenditures
or transfers. State agencies do not need to spend taxpayer money on
additional spending for the simple reason that there is still cash in
the account.

If it's important enough to spend tax dollars at the last minute then
it's important enough to get authorization from the elected officials
that actually pass the budget. This is the taxpayers' money and
should be returned to help payoff state debt and reduce property taxes.

This bill won't erase New York's deficit on its own, but it will
provide the kind of spending transparency the state needs to help get
out of debt and save taxpayers from getting fleeced by end-of-year
spending sprees.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act will take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 3323                                                  A. 5334

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            February 16, 2011
                               ___________

IN  SENATE -- Introduced by Sen. BALL -- read twice and ordered printed,
  and when printed to be committed to the Committee on Finance

IN ASSEMBLY -- Introduced by M. of A. TEDISCO -- read once and  referred
  to the Committee on Ways and Means

AN  ACT  to  amend  the  state  finance law, in relation to enacting the
  "over-expenditure, under-expenditure, transfer notification (OUT) act"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This act shall be known and may be cited as the "over-ex-
penditure, under-expenditure, transfer notification (OUT) act".
  S 2. The state finance law is amended by adding a new section 53-e  to
read as follows:
  S  53-E.  SURPLUS  APPROPRIATED FUNDS; OVER-EXPENDITURE APPROVAL.   1.
DEFINITIONS. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  A. "STATE AGENCY" SHALL MEAN  ANY  STATE  DEPARTMENT,  BOARD,  BUREAU,
DIVISION, COMMISSION, COMMITTEE, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPO-
RATION,  COUNCIL,  OFFICE,  OR  OTHER  GOVERNMENTAL  ENTITY PERFORMING A
GOVERNMENTAL OR PROPRIETARY FUNCTION FOR THE STATE; AND
  B. "SURPLUS APPROPRIATED FUNDS" SHALL MEAN THE AMOUNT OF FUNDS  APPRO-
PRIATED TO A STATE AGENCY IN A FISCAL YEAR REDUCED BY THE TOTAL EXPENDI-
TURES  BY  SUCH  STATE  AGENCY FOR SUCH FISCAL YEAR, BUT SUCH TERM SHALL
ONLY APPLY TO AMOUNTS OF FUNDS GREATER THAN ZERO.
  2. SURPLUS APPROPRIATED FUNDS. A. NOTWITHSTANDING ANY OTHER  PROVISION
OF  LAW,  ANY STATE AGENCY WHICH ON APRIL FIRST HAS SURPLUS APPROPRIATED
FUNDS SHALL, ON OR BEFORE APRIL  FIFTEENTH  OF  SUCH  YEAR,  NOTIFY  THE
GOVERNOR,  THE  COMPTROLLER  AND  THE  LEGISLATURE  THAT SUCH AGENCY HAS
SURPLUS APPROPRIATED FUNDS AND THE AMOUNT OF SUCH SURPLUS. UPON  RECEIPT
OF SUCH NOTIFICATION, THE LEGISLATURE AND THE GOVERNOR MAY, ON OR BEFORE
MAY  THIRTY-FIRST  OF  SUCH  YEAR, ENACT LEGISLATION PROVIDING THAT SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08870-02-1

S. 3323                             2                            A. 5334

SURPLUS APPROPRIATED FUNDS MAY BE USED BY SUCH STATE  AGENCY  OR  TRANS-
FERRED  TO  ANOTHER STATE AGENCY OR BOTH. SUCH LEGISLATION SHALL CLEARLY
SET FORTH THE PARTICULAR PURPOSE OR  PURPOSES  FOR  WHICH  SUCH  SURPLUS
APPROPRIATED FUNDS SHALL BE USED OR TRANSFERRED. ANY LEGISLATION ENACTED
PURSUANT TO THIS SUBDIVISION SHALL CONTAIN A CONDITION THAT SUCH SURPLUS
APPROPRIATED  FUNDS  SHALL  NOT BE USED AS SET FORTH IN SUCH LEGISLATION
WITHOUT THE APPROVAL OF THE STATE COMPTROLLER.
  B. ON OR BEFORE JUNE THIRTIETH  OF  SUCH  YEAR,  THE  COMPTROLLER  MAY
APPROVE  THE USE OR TRANSFER OF FUNDS PROVIDED FOR IN SUBDIVISION TWO OF
THIS SECTION. IF THE COMPTROLLER FAILS TO APPROVE SUCH USE  OR  TRANSFER
OF FUNDS BY JUNE THIRTIETH OF SUCH YEAR, SUCH SURPLUS APPROPRIATED FUNDS
SHALL  BE TRANSFERRED TO THE GENERAL FUND AND SHALL BE USED FOR THE SOLE
PURPOSE OF REDUCING DEBT OF THE STATE.
  C. ANY SURPLUS APPROPRIATED FUNDS FOR WHICH THE  LEGISLATURE  AND  THE
GOVERNOR  FAIL TO ENACT LEGISLATION PROVIDING FOR THE USE OR TRANSFER OF
SUCH FUNDS SHALL BE TRANSFERRED TO THE GENERAL FUND AND  SHALL  BE  USED
FOR THE SOLE PURPOSE OF REDUCING DEBT OF THE STATE.
  3.  OVER-EXPENDITURE  APPROVAL. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, ANY STATE AGENCY WHICH FOR ANY REASON INTENDS TO EXPEND  FUNDS  FOR
ANY  PURPOSE IN ANY FISCAL YEAR IN AN AMOUNT GREATER THAN AMOUNTS APPRO-
PRIATED TO SUCH AGENCY FOR  SUCH  FISCAL  YEAR,  SHALL,  PRIOR  TO  SUCH
EXPENDITURE,  NOTIFY  THE  GOVERNOR, THE COMPTROLLER AND THE LEGISLATURE
REGARDING SUCH INTENTION WITH A DETAILED EXPLANATION OF WHY SUCH EXPEND-
ITURE IS NECESSARY. UPON RECEIPT OF SUCH NOTIFICATION,  THE  LEGISLATURE
AND  THE  GOVERNOR  MAY ENACT LEGISLATION PROVIDING FOR AN APPROPRIATION
FOR SUCH EXPENDITURE. SUCH  LEGISLATION  SHALL  CLEARLY  SET  FORTH  THE
PARTICULAR PURPOSE OR PURPOSES FOR WHICH SUCH APPROPRIATION IS MADE. ANY
LEGISLATION  ENACTED PURSUANT TO THIS SUBDIVISION SHALL CONTAIN A CONDI-
TION THAT SUCH FUNDS SHALL NOT BE APPROPRIATED WITHOUT THE  APPROVAL  OF
THE STATE COMPTROLLER.
  S 3. This act shall take effect immediately.

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