Senate Bill S7839

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

                                  7839

                            I N  S E N A T E

                              May 14, 2010
                               ___________

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

AN ACT to amend the New York state financial emergency act for the  city
  of  New  York,  in  relation  to  a  variation from generally accepted
  accounting principles

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

  Section  1.  Paragraph a of subdivision 1 of section 8 of section 2 of
chapter 868 of the laws of 1975, constituting the New York state  finan-
cial  emergency  act for the city of New York, as amended by chapter 777
of the laws of 1978, is amended to read as follows:
  a. For its fiscal years ending June thirtieth, nineteen hundred seven-
ty-nine through June thirtieth, nineteen hundred eighty-one, the  city's
budget  covering  all  expenditures  other  than  capital items shall be
prepared and balanced so that the results thereof would not show a defi-
cit when reported in accordance with the accounting principles set forth
in the state  comptroller's  uniform  system  of  accounts  for  munici-
palities,  as  the same may be modified by the comptroller, in consulta-
tion with the city comptroller, for application to the city; subject  to
the provision of subdivision four of section three thousand thirty-eight
of  the public authorities law with respect to contributions by the city
or other public employer to any retirement system or  pension  fund  and
subject to the provision of paragraph (c) of subdivision five of section
three  thousand  thirty-eight of the public authorities law with respect
to expense items included in the capital budget of  the  city.  For  the
fiscal  year ending June thirtieth, nineteen hundred eighty-two, and for
each fiscal year thereafter, the city's budget covering all expenditures
other than capital items shall be prepared  and  balanced  so  that  the
results  thereof  would  not  show a deficit when reported in accordance
with generally accepted accounting principles and  [that]  WOULD  permit
comparison  of  the  budget  with the report of actual financial results
prepared in accordance with generally  accepted  accounting  principles.
With  respect  to  financial  plans that include the fiscal years ending
June thirtieth, nineteen hundred seventy-nine  through  June  thirtieth,

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

                                                           LBD17360-01-0

S. 7839                             2

nineteen hundred eighty-one, the city's budget covering all expenditures
other  than capital items shall be prepared in accordance with generally
accepted accounting principles and there shall be  substantial  progress
in  each  such  fiscal year towards achieving a city budget covering all
expenditures other than capital items the results  of  which  would  not
show  a  deficit  when  reported  in  accordance with generally accepted
accounting principles. The city shall eliminate expense items  from  its
capital budget not later than the commencement of the fiscal year ending
June  thirtieth, nineteen hundred eighty-two. For the fiscal year ending
June thirtieth, nineteen hundred eighty-nine, and for each  fiscal  year
thereafter,  the  budgets  covering  all expenditures other than capital
items of each  of  the  covered  organizations  shall  be  prepared  and
balanced  so  that  the  results  thereof  would not show a deficit when
reported in accordance with generally  accepted  accounting  principles;
and  for  each  fiscal  year  prior  thereto, there shall be substantial
progress towards such goal.    NOTWITHSTANDING  THE  FOREGOING  AND  THE
PROVISIONS  OF  ANY  GENERAL  OR  SPECIAL  STATE LAW OR LOCAL LAW TO THE
CONTRARY, INCLUDING BUT NOT LIMITED TO THE NEW YORK  CITY  CHARTER,  ALL
COSTS  THAT WOULD BE CAPITAL COSTS IN ACCORDANCE WITH GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES, BUT FOR THE APPLICATION OF GOVERNMENTAL  ACCOUNT-
ING  STANDARDS  BOARD STATEMENT NUMBER FORTY-NINE, SHALL BE DEEMED TO BE
CAPITAL COSTS FOR PURPOSES OF THIS CHAPTER AND ANY  OTHER  PROVISION  OF
STATE OR LOCAL LAW, INCLUDING BUT NOT LIMITED TO THE NEW YORK CITY CHAR-
TER, RELEVANT TO THE TREATMENT OF SUCH COSTS.
  S 2. This act shall take effect immediately.