|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|May 31, 2012||referred to ways and means|
|May 30, 2012||delivered to assembly|
|Mar 12, 2012||advanced to third reading|
|Mar 07, 2012||2nd report cal.|
|Mar 06, 2012||1st report cal.299|
|Jan 04, 2012||referred to finance|
returned to senate
died in assembly
|Jun 14, 2011||referred to ways and means|
delivered to assembly
|May 18, 2011||advanced to third reading|
|May 17, 2011||2nd report cal.|
|May 16, 2011||1st report cal.651|
|Jan 05, 2011||referred to finance|
senate Bill S716
Establishes an annual spending growth cap and increases the maximum capacity of the rainy day fund
Archive: Last Bill Status - Passed Senate
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
view actions (16)
May 30, 2012 - floor VoteS7163917floor39Aye17Nay3Absent2Excused0Abstained
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Floor Vote: May 30, 2012aye (39)
Mar 6, 2012 - Finance committee VoteS7162111committee21Aye11Nay2Aye with Reservations0Absent1Excused0Abstained
Jun 14, 2011 - floor VoteS7164418floor44Aye18Nay0Absent0Excused0Abstained
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Floor Vote: Jun 14, 2011aye (44)
May 16, 2011 - Finance committee VoteS716195committee19Aye5Nay10Aye with Reservations0Absent1Excused0Abstained
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Finance Committee Vote: May 16, 2011aye (19)aye wr (10)excused (1)
- show floor vote details
S716 - Bill Details
- Current Committee:
- Law Section:
- State Finance Law
- Laws Affected:
- Add Art 17 §§244 - 246, amd §92-cc, St Fin L
- Versions Introduced in 2009-2010 Legislative Session:
S716 - Bill Texts
Establishes an annual spending growth cap and increases the maximum capacity of the rainy day fund.
view sponsor memo
TITLE OF BILL:
to amend the state finance law, in
relation to establishing a spending cap and
increasing the maximum capacity of the
rainy day fund
This legislation will cap the growth of state spending and increase
the allowable reserve of the rainy day fund.
SUMMARY OF PROVISIONS:
Section one of the bill would amend the State Finance Law ("SFL") to
add a new Article 17, establishing a state spending cap.
* New SFL § 244 sets for definitions for article 17.
* New SFL § 245 establishes a spending cap, which limits the growth of
state operating funds spending to no more than the average rate of
inflation of the three previous calendar years. In addition, the
section requires the governor to certify that the executive budget is
consistent with the cap and the comptroller will provide, within five
days of action by the Legislature upon the budget, a determination as
to whether the state budget as enacted exceeds the annual spending
Finally, the section provides that if the Comptroller finds that the
state budget as enacted exceeds the annual spending growth cap, the
Governor must take corrective action, such as a veto, reducing state
agency spending within the control of the Executive or working with
the Legislature to enact spending reductions, to ensure that funding
is limited to the amount of the annual spending cap.
* New SFL § 246 provides that upon a finding of an emergency by the
Governor, he or she may declare an emergency b executive order. Based
upon such declaration, the Governor may submit and the Legislature
may authorize by a two-thirds super majority a budget containing a
percentage increase in state operating fund spending over the prior
fiscal year that exceeds the annual spending growth cap.
Section 2 of the bill would increase the maximum capacity of the
state's rainy day reserve from 3 percent of General Fund spending to
10 percent of General Fund spending.
Section 3 would make the act effective immediately.
SFL §92-cc (2) establishes a maximum balance in the rainy day reserve
fund of three percent of the aggregate amount projected to be disbursed
annually from the General Fund.
State government spending has grown substantially in recent years
especially in good economic times. Such growth has forced the State
to take drastic actions to stabilize its finances when revenues
decline dramatically during periods of economic difficulty.
For example, from 2002-03 to 2007-08, State Operating Funds spending
grew from $52.8 billion to $77.0 billion -- an average annual rate
of7.86 percent. In great part due to this dramatic expansion in
spending, the State needed to address a nearly $20.1 billion deficit
during last year's budget process.
To end this pattern of boom and bust cycle budgeting, and impose
greater fiscal discipline on state government, this legislation would
enact a strict cap limiting the growth of State Operating Funds
spending. It also significantly increases the maximum capacity of the
State's rainy day reserve so that surpluses that accrue as a result
of this cap can be used to help address revenue declines during times
of economic difficulty.
If the cap proposed in this legislation had been in place from 2002-03
to 2007-08, average annual spending growth during that period would
have averaged 2.6 percent. Additionally, 2007-08 State Operating
Funds spending would have totaled $60.0 billion - $17.0 billion lower
than actual results.
2010 Referred to Finance
In 2010-11, it is expected that the cap would limit State Operating
Funds spending to no greater than $80.4 billion, which reflects an
increase of $1.7 billion or 2.1 percent from the prior year. This
capped spending level would be $2.2 billion below the most recent
current law estimates of State Operating Funds spending for 2010-11
($82.6 billion, an increase of $3.9 billion of 5.0%) projected in the
Division of the Budget's financial plan.
LOCAL FISCAL IMPLICATIONS:
The fiscal impact on local governments would depend upon policy
choices made during the budget process in order to comply with the cap.
30 days after it shall have become law.
view full text
S T A T E O F N E W Y O R K ________________________________________________________________________ 716 2011-2012 Regular Sessions I N S E N A T E (PREFILED) January 5, 2011 ___________ Introduced by Sen. ROBACH -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to establishing a spending cap and increasing the maximum capacity of the rainy day fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The state finance law is amended by adding a new article 17 to read as follows: ARTICLE 17 ANNUAL SPENDING GROWTH CAP ACT SECTION 244. DEFINITIONS. 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP. 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY. S 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED: 1. "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED BY ADDING THE INFLATION RATES FROM EACH OF THE THREE CALENDAR YEARS IMME- DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID- ING THAT SUM BY THREE. 2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF THE STATE, EXCLUDING DISBURSEMENTS FROM FEDERAL FUNDS AND CAPITAL PROJECT FUNDS. 3. "INFLATION RATE" SHALL MEAN THE PERCENTAGE CHANGE IN THE TWELVE-MONTH AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO THE PRIOR CALENDAR YEAR. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01943-01-1 S. 716 2 4. "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE GOVERNOR PURSUANT TO SECTION ONE OF ARTICLE VII OF THE STATE CONSTITU- TION. 5. "STATE BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY THE LEGISLATURE IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF ARTI- CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE STATE CONSTITUTION. 6. "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR UNEXPECTED OCCURRENCE, OR COMBINATION OF CIRCUMSTANCES, INCLUDING BUT NOT LIMITED TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY. S 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP. 1. THERE IS HERE- BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP. 2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE SHALL NOT ACT UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING GROWTH CAP. 3. THE GOVERNOR SHALL CERTIFY IN WRITING THAT STATE OPERATING FUNDS SPENDING IN THE EXECUTIVE BUDGET DOES NOT EXCEED THE ANNUAL SPENDING GROWTH CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR IS NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER EXECUTIVE BUDGET, HE OR SHE SHALL FURNISH A REASONABLE ESTIMATE OF SUCH PRIOR CALENDAR YEAR INFLATION RATE. 4. THE COMPTROLLER SHALL PROVIDE, WITHIN FIVE DAYS OF ACTION BY THE LEGISLATURE UPON THE BUDGET, A DETERMINATION AS TO WHETHER THE STATE OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP. 5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE THAT FUNDING IS LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP. S 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY. 1. UPON A FIND- ING OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN EMERGENCY BY AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH DECLA- RATION. 2. BASED UPON SUCH DECLARATION, THE GOVERNOR MAY SUBMIT, AND THE LEGISLATURE MAY AUTHORIZE, BY A TWO-THIRDS SUPERMAJORITY, A BUDGET CONTAINING A PERCENTAGE INCREASE OVER THE PRIOR FISCAL YEAR IN STATE OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP. S 2. Subdivision 2 of section 92-cc of the state finance law, as added by chapter 1 of the laws of 2007, is amended to read as follows: 2. Such fund shall have a maximum balance not to exceed [three] TEN per centum of the aggregate amount projected to be disbursed from the general fund during the fiscal year immediately following the then-cur- rent fiscal year. S 3. This act shall take effect on the thirtieth day after it shall have become a law.
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