Senate Bill S4503

                                 BILL NUMBER:  S4503

 TITLE OF BILL :  CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to article 7 of the constitution, in relation
to providing for a continuing austerity contingency budget in the
event that the budget submitted by the governor is not passed by the
legislature before the start of the new fiscal year with or without
permissible alterations


 PURPOSE OF THE BILL : To amend the New York State Constitution to
provide that if the Legislature has not adopted a state budget by the
beginning of the state fiscal year, then an interim "automatic
austerity contingency budget" consisting of the preceding fiscal
year's budget bills, with most appropriations reduced by five percent,
will be in place until a new budget is enacted.

 SUMMARY OF SPECIFIC PROVISIONS :

§ 1- Amends Article VII of the State Constitution by adding a new §
4-a to require that if the Legislature has not acted upon the
Governor's Executive Budget by the beginning of the state fiscal year,
then all budget bills enacted for the preceding fiscal year, limited
by a five percent reduction in appropriations therein, shall continue
in effect. Excluded from the mandatory five percent reductions are
debt service and appropriations otherwise required by law.
              

§ 2- Effective date.

 EFFECTS OF PRESENT LAW THIS BILL WOULD ALTER : There is currently no
legal mechanism in place that provides for the continuation of state
government services in the absence of a new state budget after the
beginning of the fiscal year. Continuation of such services can only
be accomplished on an ad hoc basis, with the passage of interim
appropriation bills by the Legislature upon the issuance of messages
of necessity by the Governor.

 JUSTIFICATION : Enactment of the state budget after the beginning of
the state fiscal year on April 1 has become, unfortunately, a regular
occurrence, one that damages the credibility and credit of both the
State of New York and its localities.

This must stop. If the Legislature and the Governor are unable to
reach agreement on a state budget by the beginning of the state fiscal
year, a contingency mechanism must be in place that allows for the
continuation of state government operations (and vital state financial
aid to localities and school districts) until the Governor and
Legislature can accomplish their obligation to enact a budget.

This proposed constitutional amendment creates such an automatic
contingency mechanism, one that provides for an across-the-board, five
percent austerity reduction in all appropriations except for debt
service and entitlement programs.

Under this proposal, if a budget is not set in place by the beginning
of the fiscal year on April 1, the preceding year's budget would, by
law, be deemed to be in full force and effect - but only until such
time as the Legislature acts upon those budget bills submitted by the
Governor as part of his Executive Budget that constitute a balanced
budget.

The mechanism created by this proposal is an interim budget only. It
lasts no longer than the time during which the Legislature is unable,
after the beginning of the fiscal year, to agree on a state budget.
Once the Legislature has acted on the Governor's budget bills, the

interim automatic austerity contingency budget disappears and the
legislatively-enacted budget is set in place.

This proposal will assure that vital state revenues continue to be
collected and state obligations are paid for as long as it takes the
Governor and Legislature to agree on a state budget. Such a provision
in the law will assure that no school child, no service provider, no
visitor to a park or motor vehicle office, or recipient of a tax
refund will go without the appropriate service because agreement on a
budget is delayed.

 PRIOR LEGISLATIVE HISTORY : 2007-2008: A.4693; 2005-2006: A.3668;
2003-2004: A.3402; 2001-2002: A.948; 1999-2000: A. 1333; 1997-1998:
A.1185; 1995-1996: A.9391; 1993-1994: A.9391; 1991-1992: A.10162.

 FISCAL IMPLICATIONS : Savings to the taxpayer, the state and local
governments if this constitutional amendment is approved.

 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 §1 of Article 19 of
the Constitution, be published for 3 months previous to the time of
such election.