Senate Bill S8439

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

                                  8439

                            I N  S E N A T E

                              July 11, 2010
                               ___________

Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the state finance law, in relation to the  FMAP  contin-
  gency fund; and providing for the repeal of such provisions upon expi-
  ration thereof

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

  Section 1.  For the purpose of maintaining a balanced budget,  in  the
event  that  the  federal  government  does  not  enact  an extension of
enhanced Federal Medicaid Assistance Percentages ("FMAP") for the  state
of  New  York  by  November  15,  2010, the director of the budget, upon
authorization of the state legislature, shall implement across-the-board
payment reductions to be made from  all  undisbursed  general  fund  and
state  special  revenue  fund  appropriations by $1,060,000,000 with the
following exceptions: (a) payments for emergency assistance for families
and payments for eligible 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  obligated  to  pay  debt service, subject to an appropri-
ation, including where the state  has  a  contingent  contractual  obli-
gation; and (d) binding, non-discretionary legal obligations, except for
obligations  which  are  binding  solely as a result of state statute or
regulation. Such reductions shall be made in accordance with  a  written
across-the-board allocation plan prepared by the director of the budget,
filed  with  the  state  comptroller,  the  chair  of the senate finance
committee and the chair of the assembly ways and means  committee,  and,
after  a  period  of review, shall be approved by the legislature.  Upon
such approval, the director of the budget  shall  prepare  appropriately
reduced  certificates,  which shall be filed with the state comptroller,
the chair of the senate finance committee and the chair of the  assembly
ways and means committee. All amounts so reduced shall be deposited in a
contingency  fund  established  pursuant  to  section  99-r of the state
finance law. If at any time after the effective date of this section  an

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

                                                           LBD17993-03-0

S. 8439                             2

extension of enhanced FMAP has been enacted by the Federal government in
an amount at least as great as the amount assumed in the fiscal year two
thousand  ten-eleven financial plan as determined by the director of the
budget,  no further reductions shall occur and all payment amounts with-
held pursuant to this section shall be paid to the recipients from which
they were withheld. If an extension of  enhanced  FMAP  is  not  enacted
during  the  fiscal  year,  or an extension is enacted in an amount less
than $1,060,000,000, the reductions authorized  by  this  section  shall
continue  until  the  total  amount  of  such reductions is equal to the
amount by which the extension differs from the  amount  assumed  in  the
fiscal  year two thousand ten-eleven financial plan as determined by the
director of the budget and, notwithstanding any other provision  of  law
to  the  contrary,  liability  for amounts due under an appropriation or
other applicable provision of law shall be reduced in the amounts of the
payment reduction.  If, after two weeks from the date of  submission  of
the  written  across-the-board allocation plan submitted to the legisla-
ture by the director of the budget, the legislature and executive cannot
agree on a written across-the-board allocation plan, the director of the
budget shall implement across-the-board payment  reduction  to  be  made
from  all undisbursed general fund and state special revenue fund appro-
priations by $1,060,000,000 or such lower amount which  constitutes  the
difference between $1,060,000,000 and the amount of FMAP extension funds
provided in state fiscal year two thousand ten-eleven.
  S  2. 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
JOINT  CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION
AND FINANCE A SPECIAL REVENUE FUND KNOWN AS THE "FMAP CONTINGENCY FUND".
  2. THE FUND SHALL CONSIST OF ALL MONIES REQUIRED BY LAW TO BE DEPOSIT-
ED 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 FEDERAL MEDICAID ASSISTANCE PERCENTAGES.
  4. IF THE BALANCE IN THE FUND EXCEEDS THE AMOUNT OF DISBURSEMENTS FROM
THE GENERAL FUND PROJECTED TO BE EXPENDED FOR THE NEXT SUCCEEDING  QUAR-
TERLY PERIOD, SUCH EXCESS SHALL BE TRANSFERRED TO THE GENERAL FUND.
  5.  IF BY JANUARY FIRST, TWO THOUSAND ELEVEN, FEDERAL MEDICAID ASSIST-
ANCE PERCENTAGES ARE NOT EXTENDED OR ARE EXTENDED IN AN AMOUNT  THAT  IS
LESS  THAN THE AMOUNT ASSUMED IN THE FISCAL YEAR TWO THOUSAND TEN-ELEVEN
FINANCIAL PLAN AS DETERMINED BY THE DIRECTOR OF THE BUDGET,  ALL  MONIES
IN  THE  FUND  ON SUCH DATE SHALL BE TRANSFERRED TO THE GENERAL FUND AND
ANY AMOUNTS DEPOSITED IN THE FUND AFTER SUCH DATE SHALL  BE  TRANSFERRED
TO THE GENERAL FUND UPON THE REQUEST OF THE DIRECTOR OF THE BUDGET.
  S  3.  This  act shall take effect immediately and shall expire and be
deemed repealed April 1, 2011.