senate Bill S1971

Provides that upon failure by the legislature to act upon a budget within 72 hours from the beginning of the state fiscal year a default budget shall take effect

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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

  • 09 / Jan / 2013
    • REFERRED TO JUDICIARY
  • 11 / Jan / 2013
    • TO ATTORNEY-GENERAL FOR OPINION
  • 06 / Feb / 2013
    • OPINION REFERRED TO JUDICIARY
  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY
  • 13 / Jan / 2014
    • TO ATTORNEY-GENERAL FOR OPINION
  • 19 / Feb / 2014
    • OPINION REFERRED TO JUDICIARY

Summary

Reforms the state budget process to provide that upon failure by the legislature to act upon a state budget within seventy-two hours from the beginning of the state fiscal year, a default budget shall take effect.

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Bill Details

See Assembly Version of this Bill:
A4332
Versions:
S1971
Legislative Cycle:
2013-2014
Current Committee:
Senate Judiciary
Law Section:
Constitution, Concurrent Resolutions to Amend
Laws Affected:
Amd Art 7 ยง4, Constn
Versions Introduced in Previous Legislative Cycles:
2011-2012: S2867, A5650, A9075
2009-2010: S7849, A5729
2007-2008: A92, A92

Sponsor Memo

BILL NUMBER:S1971

TITLE OF BILL:
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 4 of article 7 of the constitution, in
relation to reforming the state budget process

PURPOSE:
To implement a fail safe mechanism through a Constitutional amendment
mandating the use of the prior fiscal year State budget if no budget
is agreed to within 72 hours after the April 1st commencement of the
fiscal year.

SUMMARY OF PROVISIONS:

Section 1 of the resolution amends Section 4 of Article VII of the
State Constitution to stipulate that if both houses of the
Legislature fail to finally act on all appropriation bills submitted
by the Governor within 72 hours after the start of the new fiscal
year, a "default budget" will be imposed that fiscal year.
Essentially, the prior fiscal year's budget will be comprised of all
appropriation bills for the immediately preceding fiscal year and all
laws governing apportionment and allocation of those appropriations.

Within 15 days after the date on which the default budget becomes law,
the Governor may make a determination that moneys and receipts
available for the fiscal year are less than the immediately preceding
year. In that event, the Governor shall have the following powers:
transfer any appropriation for any object or purpose to another
project or purpose only to meet contractual requirements; reduce by a
uniform percentage all appropriations from the General Fund, or
portions thereof, not necessary to meet contractual requirements or
other requirements established by State or Federal law; and modify
the operation of any law governing the apportionment and the
allocation of appropriations.

If the Governor does make such a determination that moneys and
receipts available for the fiscal year are less than for the
immediately preceding fiscal year, the Governor must notify both
houses of his determination and all modifications that will be made
to appropriations or to the operation of laws for the fiscal year.

JUSTIFICATION:
By failing to adopt an "on-time" budget, the State places schools,
municipalities, and not-for-profit organizations at risk of not
knowing when and how much State aid will be available to them. It may
also delay the commencement (or continuation) of capital projects and
other programs which are important to the residents of the State. By
having such a "default" mechanism in place, ALL parties will have a
greater incentive to negotiate in good faith and to make compromise
necessary to achieve a fair and balanced budget. In the event that

they are unable to reach a consensus, the State and its residents
will be able to move forward and to have certainty as to what
allocations and spending will occur during the fiscal year.

LEGISLATIVE HISTORY:
2011-12 S. 2867/Judiciary Committee/A. 9075 - Ways and Means Committee.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:
RESOLVED (if the Assembly concur), That the foregoing amendment
be referred to the
first regular legislative session convening after the next succeeding
general election of members of the assembly, and, in conformity with
section 1 of article 19 of the constitution, be published for 3 months
previous to the time of such election.

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

                                  1971

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  GRIFFO, SEWARD -- read twice and ordered printed,
  and when printed to be committed to the Committee on Judiciary

            CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY

proposing an amendment to section 4 of article 7 of the constitution, in
  relation to reforming the state budget process

  Section 1. Resolved (if the Assembly concur), That section 4 of  arti-
cle 7 of the constitution be amended to read as follows:
  S  4. The legislature may not alter an appropriation bill submitted by
the governor except to strike out or reduce items therein,  but  it  may
add  thereto  items  of  appropriation  provided that such additions are
stated separately and distinctly from the original items of the bill and
refer each to a single object or purpose. None of  the  restrictions  of
this section, however, shall apply to appropriations for the legislature
or judiciary.
  Such  an  appropriation bill shall when passed by both houses be a law
immediately  without  further  action  by  the  governor,  except   that
appropriations  for  the  legislature  and  judiciary and separate items
added to the governor's bills by the legislature  shall  be  subject  to
approval of the governor as provided in section 7 of article IV.
  UPON  THE  FAILURE  OF  BOTH  HOUSES TO FINALLY ACT WITHIN SEVENTY-TWO
HOURS FROM THE BEGINNING OF THE FISCAL YEAR ON ALL  APPROPRIATION  BILLS
SUBMITTED  BY  THE  GOVERNOR  IN  ACCORDANCE  WITH SECTION THREE OF THIS
ARTICLE, A DEFAULT BUDGET SHALL BE LAW FOR SUCH FISCAL YEAR AS  PROVIDED
IN   THIS  SECTION.  THE  DEFAULT  BUDGET  SHALL  BE  COMPRISED  OF  ALL
APPROPRIATION BILLS ACTED UPON BY BOTH HOUSES AND WHICH BECAME  LAW  FOR
THE  IMMEDIATELY  PRECEDING  FISCAL  YEAR  OR THE DEFAULT BUDGET FOR THE
IMMEDIATELY PRECEDING FISCAL YEAR IF A DEFAULT  BUDGET  BECAME  LAW  FOR
SUCH FISCAL YEAR AND ALL LAWS GOVERNING THE APPORTIONMENT AND ALLOCATION
APPROPRIATIONS   AND  THE  TRANSFER  AND  THE  LOAN  OF  FUNDS  FOR  THE
IMMEDIATELY PRECEDING FISCAL YEAR SHALL  CONTINUE  TO  BE  LAW  FOR  THE
FISCAL  YEAR  FOR  WHICH THE DEFAULT BUDGET IS A LAW, PROVIDED, HOWEVER,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD89051-01-3

S. 1971                             2

THAT  IN  NO  EVENT  SHALL   AGGREGATE   DISBURSEMENTS   AUTHORIZED   BY
APPROPRIATIONS  CONTAINED  IN  THE  DEFAULT  BUDGET FOR SUCH FISCAL YEAR
EXCEED AGGREGATE DISBURSEMENTS MADE IN THE IMMEDIATELY PRECEDING  FISCAL
YEAR.
  IN THE EVENT THAT A DEFAULT BUDGET BECOMES LAW FOR A FISCAL YEAR AND A
DETERMINATION  IS  MADE  BY  THE  GOVERNOR THAT, FOR THE FISCAL YEAR FOR
WHICH THE DEFAULT BUDGET IS A LAW, MONEYS AND RECEIPTS AVAILABLE FOR THE
FISCAL YEAR  ARE  LESS  THAN  MONEYS  AND  RECEIPTS  AVAILABLE  FOR  THE
IMMEDIATELY PRECEDING FISCAL YEAR, THE GOVERNOR SHALL HAVE THE FOLLOWING
POWERS:
  (A)  THE  GOVERNOR MAY TRANSFER, IN EXCESS OF ANY LIMITATION OTHERWISE
PROVIDED BY LAW, ANY APPROPRIATION OR PORTION THEREOF FOR ANY OBJECT  OR
PURPOSE   TO   ANOTHER  OBJECT  OR  PURPOSE  ONLY  TO  MEET  CONTRACTUAL
REQUIREMENTS FOR WHICH APPROPRIATIONS CONTAINED IN  THE  DEFAULT  BUDGET
ARE NOT SUFFICIENT TO MEET SUCH REQUIREMENTS;
  (B) THE GOVERNOR MAY REDUCE BY A UNIFORM PERCENTAGE ALL APPROPRIATIONS
FROM  THE  GENERAL  FUND  OR  PORTIONS  THEREOF  NOT  NECESSARY  TO MEET
CONTRACTUAL REQUIREMENTS OR OTHER REQUIREMENTS ESTABLISHED BY  STATE  OR
FEDERAL LAW;
  (C)  THE  GOVERNOR  MAY  MODIFY THE OPERATION OF ANY LAW GOVERNING THE
APPORTIONMENT AND THE ALLOCATION OF APPROPRIATIONS OR  PART  THEREOF  IF
THE  OPERATION  OF  SUCH  LAW OR PART THEREOF REQUIRES DISBURSEMENTS FOR
SUCH OBJECT OR  PURPOSE  REQUIRED  BY  THE  OPERATION  OF  LAW  FOR  THE
IMMEDIATELY PRECEDING FISCAL YEAR. THE OPERATION OF ANY SUCH LAW OR PART
THEREOF  SHALL ONLY BE MODIFIED SUCH THAT SUCH MODIFICATION SHALL RESULT
IN REQUIRED DISBURSEMENTS FOR AN OBJECT OR  PURPOSE  DURING  THE  FISCAL
YEAR  WHICH  IS  LESS  THAN THE DISBURSEMENTS FOR SUCH OBJECT OR PURPOSE
THAT WOULD OTHERWISE BE REQUIRED BY THE OPERATION OF  LAW  WITHOUT  SUCH
MODIFICATION, PROVIDED, HOWEVER, THAT SUCH MODIFICATION SHALL NOT RESULT
IN  DISBURSEMENTS  FOR  AN  OBJECT  OR  PURPOSE  WHICH ARE LESS THAN THE
DISBURSEMENTS FOR SUCH  OBJECT  OR  PURPOSE  REQUIRED  BY  LAW  FOR  THE
IMMEDIATELY  PRECEDING  FISCAL YEAR. ANY SUCH LAW WHICH PROVIDES FOR THE
ALLOCATION OR APPORTIONMENT OF APPROPRIATIONS FOR AN OBJECT  OR  PURPOSE
BETWEEN OR AMONG ENTITIES MAY BE MODIFIED BY THE GOVERNOR ONLY SUCH THAT
THE REQUIRED REDUCTION IN DISBURSEMENTS RESULTING FROM SUCH MODIFICATION
RESULTS IN A UNIFORM PERCENTAGE REDUCTION TO ALL AFFECTED ENTITIES.
  ANY  DETERMINATION MADE BY THE GOVERNOR PURSUANT TO THIS SECTION THAT,
FOR A FISCAL YEAR FOR WHICH A DEFAULT BUDGET IS LAW, MONEYS AND RECEIPTS
AVAILABLE FOR  THE  FISCAL  YEAR  ARE  LESS  THAN  MONEYS  AND  RECEIPTS
AVAILABLE  FOR  THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL ONLY BE MADE
WITHIN FIFTEEN DAYS AFTER THE DATE ON WHICH A DEFAULT BUDGET BECOMES LAW
AND THE ESTIMATE OF MONEYS AND  RECEIPTS  AVAILABLE  USED  IN  ANY  SUCH
DETERMINATION  SHALL  BE BASED ON A CONSENSUS FORECAST OR OTHER FORECAST
OF SUCH  ESTIMATES  TO  THE  EXTENT  PROVIDED  ACCORDING  TO  PROCEDURES
ESTABLISHED  BY  LAW.  ON MAKING SUCH A DETERMINATION THE GOVERNOR SHALL
NOTIFY BOTH HOUSES OF THE LEGISLATURE OF HIS OR  HER  DETERMINATION  AND
ALL  MODIFICATIONS  AUTHORIZED  BY  THIS  SECTION  THAT  WILL BE MADE TO
APPROPRIATIONS OR TO THE OPERATION OF LAWS FOR THE FISCAL YEAR.
  S 2. Resolved (if the Assembly concur), That the  foregoing  amendment
be referred to the first regular legislative session convening after the
next  succeeding  general  election  of members of the assembly, and, in
conformity with  section  1  of  article  19  of  the  constitution,  be
published for 3 months previous to the time of such election.

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