BILL NUMBER:  S5854A

 TITLE OF BILL :
An act to temporarily freeze state spending for fiscal years
2010-2011, 2011-2012 and 2012-2013


 PURPOSE :
To enact a temporary freeze on state spending in order to help New
York State reduce its debt.

 SUMMARY OF PROVISIONS :
Section 1 states that neither the governor nor the legislature shall
act upon any appropriation bills which would authorize an increase in
total state spending for the fiscal years 2009-2010, 2010-2011 and
2011-2012.

Section 2 allows that an increase in spending can occur in the case of
an emergency. In order to increase spending in excess of the
limitation provided in subdivision one an emergency must be declared
by the governor and such spending must be authorized by a two-thirds
vote in both the Assembly and Senate.

Section 3 mandates that all revenues in excess of the state spending
limitations in these fiscal years shall be deposited into a service
fund used to payoff the state debt.
              

Section 4 any legislation with fiscal implications passed after the
budget for these fiscal years shall be offset with savings derived
from existing funds and shall not impose additional costs to the
state.

Section 5a defines "Total state funding" as general funds, special
revenue funds, capital project funds, and debt service funds. It shall
not mean federal funding or federal grants.

Section 5b defines "emergency" as an extraordinary and unexpected
occurrence which requires immediate and sudden fiscal action of a
drastic but temporary nature.

 JUSTIFICATION :
This legislation will encourage New York's lawmakers to be more
fiscally responsible and will temporarily freeze state spending for
three years based on the current fiscal year's budget. This bill will
freeze state spending and use any excesses to payoff state debt.

Future legislation with fiscal implications passed after the budget
for fiscal years 2009 through 2012, shall be offset with savings
derived from existing funds and shall not impose additional costs to
the state. Additional spending will be through pay-as-you-go rules and
will allocate funding from existing sources. In any fiscal year, if
total state revenues are in excess of the state spending limitation
they shall be deposited into the debt service fund and shall be used
to pay down the state debt.

In the 2009-2010 budget, state spending increased by $3.9 billion
dollars while revenues were in decline and a $17.9 billion deficit
existed. This level of state spending is unsustainable. Along with
increased spending, various tees were created and taxes were
increased. This activity impacts business and residents of the state.
The NYS Comptroller has projected the three year budget gap to be $25
billion if this level of spending persists. NYS currently has the
second highest state and local tax burden in the nation. The level of
state spending is unsustainable.  Continuing to increase taxes and
fees to pay for larger and larger state budgets will push people out
of New York State, further burdening the remaining population.
Our New York State debt totals more than $52 billion dollars. New York
has the second highest combined state and local debt per capita in the
nation. This debt was accrued over periods of time including 1996
through 2001, during the time when the state had substantial
surpluses.  This accumulation of debt is fiscally irresponsible.

Thirty one states have instituted spending caps in various forms to
control spending and taxation.

 LEGISLATIVE HISTORY :
None.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.