S. 11--A 2 A. 11--A
PART A
Section 1. Notwithstanding any other provision of law to the contrary,
to maintain a balanced budget in the event that the federal government
does not enact an extension of enhanced Federal Medical Assistance
Percentages ("FMAP") for the state of New York in the amount assumed in
the 2010--2011 financial plan, the individual payments from all undis-
bursed general fund and state special revenue fund aid to localities
appropriations, commencing on September 16, 2010, shall be uniformly
reduced by the percentage set forth in the written allocation plan
required by this section and such reduction shall be applied, to the
extent practicable, in equal amounts during the fiscal year. Such
percent reduction to payments shall be calculated on the amounts that
were undisbursed as of September 16, 2010 to provide for a maximum annu-
al reduction of $1,085,000,000 by the end of the 2010--2011 state fiscal
year. Beginning on September 16, 2010, all payments from non-exempt
appropriations shall be reduced by the percentage set forth in the writ-
ten allocation plan required by this section. The following types of
appropriations shall be exempt from uniform reduction: (a) public
assistance payments for families and individuals and payments for eligi-
ble aged, blind and disabled persons related to supplemental social
security; (b) any reductions that would violate federal law; (c)
payments of debt service and related expenses for which the state is
constitutionally obligated to pay debt service or is contractually obli-
gated to pay debt service, subject to an appropriation, including where
the state has a contingent contractual obligation; (d) payments the
state is obligated to make pursuant to court orders or judgments; (e)
payments for CUNY senior colleges; and (f) payments to the metropolitan
transportation authority related to the mobility tax. With regard to
Medicaid payments, such reductions shall be subject to the receipt of
all necessary federal approvals. Reductions under this section shall
commence on September 16, 2010 and be made in accordance with a written
allocation plan prepared by the director of the budget, which shall be
filed with the state comptroller, the chairman of the senate finance
committee and the chairman of the assembly ways and means committee.
Such written allocation plan shall include a summary of the methodology
for calculating the percentage reductions to the payments from non-ex-
empt appropriations and cash disbursements and the reasons for any
exemptions, and a detailed schedule of the reductions and exemptions.
The director of the budget shall prepare appropriately reduced certif-
icates, which shall be filed with the state comptroller, the chairman of
the senate finance committee and the chairman of the assembly ways and
means committee. Upon request of the director of the budget, the comp-
troller shall transfer the cash equal to the uniform appropriation
reduction to the FMAP contingency fund established pursuant to section
99-r of the state finance law to the extent such cash is available. If
an extension of enhanced FMAP is not enacted by November 15, 2010, the
governor, temporary president of the senate, and the speaker of the
assembly shall cause their respective appropriate personnel to meet to
review the impact of the uniform reductions and discuss potential alter-
native reductions.
S 2. The payment reductions shall be subject to the following condi-
tions: (a) if at any time after the effective date of this section an
extension of enhanced FMAP has been enacted by the Federal government in
an amount equal to or greater than $1,085,000,000 in the fiscal year two
thousand ten--two thousand eleven financial plan, no further reductions
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shall occur and all payment amounts withheld pursuant to this section
shall be paid to the recipients from which they were withheld by March
31, 2011 or in the case of Medicaid payments, as soon as practicable
following receipt of all necessary federal approvals; (b) if an exten-
sion of enhanced FMAP is not enacted by March 31, 2011, the reductions
authorized by this section shall continue until the total amount of such
reductions is equal to $1,085,000,000; or (c) if an extension of
enhanced FMAP is enacted in an amount less than the $1,085,000,000
assumed in the fiscal year two thousand ten--two thousand eleven finan-
cial plan, the reductions authorized by this section shall continue
until the total amount of such reductions is equal to the difference
between $1,085,000,000 and the amount of enhanced FMAP provided, howev-
er, if an extension of enhanced FMAP is enacted in an amount less than
the $1,085,000,000 and at the time of the enactment the total amount of
the reductions is equal to or greater than the amount by which the
extension differs from the amount in the fiscal year two thousand ten--
two thousand eleven financial plan, no further reductions shall be made
and the amount of the reductions previously made that exceeds the
difference between $1,085,000,000 and the amount of the extension shall
be paid to the recipients subject to reduced payments in proportion to
those reductions, and such payments shall be made by March 31, 2011.
Notwithstanding any other provision of law to the contrary, liability
for amounts due under any appropriation or other applicable provision of
law subject to uniform reduction pursuant to this act shall be reduced
by March 31, 2011 in the amounts equal to any payment reduction up to
$1,085,000,000, and the appropriation shall be reduced by a commensurate
amount pursuant to subdivisions (b) and (c) of this section, as appro-
priate. Notwithstanding any inconsistent provision of law, rule or
regulation, the effectiveness of the provisions of sections 2807 and
3614 of the public health law, section 18 of chapter 2 of the laws of
1988, and 18 NYCRR S 505.14(h), as they relate to time frames for
notice, approval or certification of rates of payment, are hereby
suspended and without force or effect for purposes of implementing the
provisions of this act.
S 3. On March 31, 2011, the director of the budget shall calculate the
difference, if any, between the actual closing balance in the general
fund on March 31, 2011 and the closing balance projected by the division
of the budget in the 2010-11 enacted budget financial plan. If the actu-
al closing balance is in excess of the projected balance, the amount of
the difference shall be disbursed by April 15, 2011 or, in the case of
Medicaid, as soon as practicable following the receipt of all necessary
federal approvals, to uniformly mitigate the uniform reductions made
pursuant to section one of this act, provided, however, that no such
amount shall be available for disbursement until the director of the
budget certifies that (a) the general fund made all planned payments
anticipated in the 2010-11 financial plan including tax refunds, without
the issuance of deficit bonds or notes or extraordinary cash management
actions, (b) the balances in the tax stabilization reserve and rainy day
reserve (together, the "rainy day reserves") have been restored to a
level equal to the level as of the start of the fiscal year, and (c)
other designated balances have been maintained, as provided by law.
S 4. The state finance law is amended by adding a new section 99-r to
read as follows:
S 99-R. FMAP CONTINGENCY FUND. 1. THERE IS HEREBY ESTABLISHED IN THE
STATE TREASURY AN ACCOUNT IN THE GENERAL FUND KNOWN AS THE "FMAP CONTIN-
GENCY FUND".
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2. THE FUND SHALL CONSIST OF ALL MONIES REQUIRED BY LAW TO BE TRANS-
FERRED TO THE FUND.
3. MONIES IN THE FUND SHALL BE DISBURSED, WHEN ALLOCATED, FOR THE
PURPOSE OF MAKING PAYMENTS THAT HAD PREVIOUSLY BEEN SUBJECT TO REDUCTION
PURSUANT TO LAW AS A RESULT OF FEDERAL GOVERNMENT FAILURE TO ENACT AN
EXTENSION OF ENHANCED FEDERAL MEDICAL ASSISTANCE PERCENTAGES ("FMAP").
4. IF BY FEBRUARY FIFTEENTH, TWO THOUSAND ELEVEN, ENHANCED FMAP IS NOT
EXTENDED OR IS EXTENDED IN AN AMOUNT THAT IS LESS THAN THE
$1,085,000,000 IN THE FISCAL YEAR TWO THOUSAND TEN--TWO THOUSAND ELEVEN
FINANCIAL PLAN AS DETERMINED BY THE DIRECTOR OF THE BUDGET, MONIES IN
THE FUND ON SUCH DATE NOT REQUIRED TO BE PAID PURSUANT TO THE PROVISIONS
OF SECTION TWO OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TEN WHICH
ADDED THIS SECTION MAY BE TRANSFERRED TO THE GENERAL FUND AND ANY
AMOUNTS DEPOSITED IN THE FUND AFTER SUCH DATE MAY BE TRANSFERRED TO THE
GENERAL FUND UPON THE REQUEST OF THE DIRECTOR OF THE BUDGET.
S 5. This act shall take effect immediately; provided, however, that
section three of this act shall take effect upon the enactment of the
2010-2011 budget, and provided further, that this act shall expire and
be deemed repealed April 15, 2011, except in the case of Medicaid, when
such act shall expire and be deemed repealed July 1, 2011.
PART B
Section 1. Sections 1 and 4 of chapter 100 of the laws of 2010,
relating to making appropriations for the support of government, are
REPEALED.
S 2. Section 5 of chapter 100 of the laws of 2010, relating to making
appropriations for the support of government, is amended to read as
follows:
S 5. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2010[;
provided, however, that upon the transfer of expenditures and disburse-
ments by the comptroller as provided in section four of this act, the
appropriations made by this act and subject to such section shall be
deemed repealed].
S 3. Notwithstanding any provision of the law to the contrary, any
payment otherwise due and payable during the month of September pursuant
to: subparagraph (1) of paragraph a of subdivision 1 of section 3609-a
of the education law, subparagraph (2) of paragraph a of subdivision 1
of section 3609-a of the education law, subparagraph (3) of paragraph a
of subdivision 1 of section 3609-a of the education law, clause (vii) of
subparagraph (3) of paragraph b of subdivision 1 of section 3609-a of
the education law, subparagraph (5) of paragraph a of subdivision 2 of
section 3609-b of the education law, subdivision 1 of section 3609-d of
the education law, and paragraph (a) of subdivision 1 of section 3609-f
of the education law for the 2010-11 school year shall be due and paya-
ble on or before September 30, 2010.
S 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2010, provided
however that notwithstanding any inconsistent provision of law, sections
one and two of this act shall be deemed to have been in full force and
effect on and after the effective date of chapter 100 of the laws of
2010.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
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impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through B of this act shall be
as specifically set forth in the last section of such Parts.