senate Bill S2963

2011-2012 Legislative Session

Provides for continuing austerity contingency budget in the event of a budget stalemate

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 27, 2011 opinion referred to judiciary
Feb 07, 2011 to attorney-general for opinion
Feb 03, 2011 referred to judiciary

S2963 - Bill Details

See Assembly Version of this Bill:
A3137
Current Committee:
Law Section:
Constitution, Concurrent Resolutions to Amend
Laws Affected:
Add Art 7 §4-a, Constn
Versions Introduced in 2009-2010 Legislative Session:
S4503, A3757

S2963 - Bill Texts

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Provides that where the legislature has not passed a budget by the start of the fiscal year the budget bills for the previous year shall remain in effect with a five percent reduction in all appropriations except entitlement programs required by law and appropriations for debt service; such budget shall remain in effect until a balanced budget is passed.

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BILL NUMBER:S2963

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.

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.

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

                                  2963

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 3, 2011
                               ___________

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

            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  legis-
  lature before the start of the new fiscal year with or without permis-
  sible alterations

  Section  1.   Resolved (if the Assembly concur), That article 7 of the
constitution be amended by adding a new section 4-a to read as follows:
  S 4-A. IF, ON OR BEFORE THE FIRST DAY OF THE STATE FISCAL  YEAR  WHICH
NEXT  FOLLOWS  SUBMISSION  OF  THE  EXECUTIVE  BUDGET BILLS DESCRIBED IN
SECTION THREE OF THIS ARTICLE, THE LEGISLATURE HAS NOT PASSED,  WITH  OR
WITHOUT  PERMISSIBLE  ALTERATIONS,  ONE OR MORE OF SUCH BILLS CONTAINING
ALL THE PROPOSED APPROPRIATIONS AND  REAPPROPRIATIONS  INCLUDED  IN  THE
GOVERNOR'S SUBMISSION PURSUANT TO SECTION THREE OF THIS ARTICLE, THEN IN
SUCH  EVENT  ALL  OF THE AUTHORITY TO RAISE AND SPEND MONEYS PURSUANT TO
THE PREVIOUSLY ADOPTED BUDGET LAWS IN EFFECT FOR THE FISCAL YEAR  DURING
WHICH  THE GOVERNOR'S SUBMISSION IS MADE SHALL CONTINUE IN EFFECT DURING
THE NEXT STATE FISCAL YEAR BUT SUCH SPENDING AUTHORITY SHALL BE  LIMITED
BY  A  MANDATORY  ACROSS-THE-BOARD  FIVE  PERCENT REDUCTION IN ALL STATE
SPENDING, EXCEPT PAYMENTS FOR ENTITLEMENT PROGRAMS MANDATED BY  LAW  AND
PAYMENTS FOR SERVICING THE STATE'S DEBT, UNTIL SUCH TIME AS NEW AUTHORI-
TY  IS CONFERRED BY ADOPTION BY THE LEGISLATURE, WITH OR WITHOUT PERMIS-
SIBLE ALTERATIONS, OF A SUFFICIENT NUMBER OF THE BILLS SO  SUBMITTED  BY
THE  GOVERNOR AND APPLICABLE TO THE NEW FISCAL YEAR, WHICH ADOPTED BILLS
IN THE AGGREGATE CONSTITUTE, IN  THE  JUDGMENT  OF  THE  LEGISLATURE,  A
BALANCED BUDGET.
  S 2.  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  section  1  of  article  19  of  the  constitution,  be
published for 3 months previous to the time of such election.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD89083-01-1

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