S T A T E O F N E W Y O R K
________________________________________________________________________
5969
2013-2014 Regular Sessions
I N A S S E M B L Y
March 12, 2013
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Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the state finance law, in relation to establishing a
procedure for the informed evaluation of proposed and enacted state
expenditure decreases
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "procedure for informed evaluation of state expenditure decreases
act of 2013".
S 2. Legislative findings. The legislature finds that the expenditures
of state funds for operations, maintenance, programs, activities and
assistance have significant and complex impacts on the economic, social
and environmental conditions in both the public and private sectors.
Federal funding and matching funds from municipal and private sources,
for example, can be affected by changes in levels of state expenditures
and negative secondary impacts from cuts like the failure to maintain
state property can damage the health, safety and welfare of the people
and economy of the state.
The legislature further finds that during a volatile economic time
decisions are made to cut or impound expenditures, eliminate or downsize
programs and/or lay off state employees without adequate evaluation of
the consequences thereof.
Therefore, the legislature declares that an analytical process should
be required and information therefrom should be available to the public
when a decrease in state expenditure from funds appropriated in the
immediate previous state budget is proposed in a state budget bill, or
before a reduction in expenditure or lay off of state employees is
imposed during the implementation of an enacted state budget.
S 3. The state finance law is amended by adding a new section 21-a to
read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09681-01-3
A. 5969 2
S 21-A. INFORMED EVALUATION OF STATE EXPENDITURE DECREASES. 1. THE
GOVERNOR SHALL SUBMIT TO THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE
AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE FOR USE OF
SUCH COMMITTEES, AND PROVIDE THE LEGISLATURE AND THE PUBLIC FOR THEIR
INFORMATION, (A) AT OR PRIOR TO THE TIME THE BUDGET IS SUBMITTED, AN
EVALUATION PURSUANT TO SUBDIVISION TWO OF THIS SECTION OF THE DIRECT AND
INDIRECT ECONOMIC, SOCIAL AND ENVIRONMENTAL IMPACTS OF ANY DECREASE IN
THE AMOUNT OF THE APPROPRIATION FROM THE PREVIOUS FISCAL YEAR FOR ANY
STATE PROGRAM, ACTIVITY OR ASSISTANCE, FOR LOCAL GOVERNMENT ASSISTANCE
OR FOR A PUBLIC PURPOSE BY A NOT-FOR-PROFIT ORGANIZATION SUPPORTED, IN
WHOLE OR IN PART, BY STATE FUNDS, AND (B) NOT LESS THAN FORTY-FIVE DAYS
BEFORE THE IMPLEMENTATION OF THE IMPOUNDMENT OF APPROPRIATED FUNDS
AND/OR LAYOFF OF STATE EMPLOYEES AFFECTING, DIRECTLY OR INDIRECTLY, ANY
STATE PROGRAM, ACTIVITY OR ASSISTANCE, FOR LOCAL GOVERNMENT ASSISTANCE
OR FOR A PUBLIC PURPOSE BY A NOT-FOR-PROFIT ORGANIZATION SUPPORTED, IN
WHOLE OR IN PART, BY STATE FUNDS, AN EVALUATION PURSUANT TO SUBDIVISION
TWO OF THIS SECTION OF THE DIRECT AND INDIRECT ECONOMIC, SOCIAL AND
ENVIRONMENTAL IMPACTS THEREOF.
2. AN EVALUATION OF DECREASES OR ELIMINATION OF STATE EXPENDITURES
SHALL INCLUDE, BUT NOT BE LIMITED TO:
(A) IDENTIFICATION OF WHETHER SUCH STATE EXPENDITURE WOULD HAVE BEEN
USED FOR A STATUTORY MANDATED PURPOSE, A DESCRIPTION OF SUCH PURPOSE AND
AN ESTIMATE OF FINANCIAL RETURN FROM SUCH FUNDING;
(B) IDENTIFICATION OF WHETHER SUCH STATE EXPENDITURE WOULD HAVE BEEN
USED FOR A NON-MANDATED SERVICE;
(C) IDENTIFICATION OF WHETHER THERE HAS BEEN OR WOULD BE A REVENUE
GENERATOR MULTIPLIER GREATER THAN THE AMOUNT OF THE STATE EXPENDITURE;
(D) IDENTIFICATION OF THE COST TO THE STATE, MUNICIPALITIES AND/OR
PRIVATE SOURCES, IF ANY, THAT MAY RESULT FROM THE DECREASE IN STATE
FUNDING OR EMPLOYEES, INCLUDING THE LOSS OF MATCHING FUNDS FROM SOURCES
OUTSIDE STATE GOVERNMENT. IN ESTIMATING SUCH COST, CONSIDERATION SHALL
BE TAKEN OF THE ABILITY OF THE AFFECTED STATE UNITS AND THEIR ABILITY TO
SUSTAIN THE CUTS AND LOSS, IF ANY, OF REVENUE TO THE STATE OR MUNICI-
PALITIES OR FROM THE MULTIPLIER EFFECT ON THE PRIVATE SECTOR; AND
(E) IDENTIFICATION OF THE ESTIMATED NET BENEFIT TO THE STATE TREASURY
OF DECREASES OR ELIMINATION OF STATE EXPENDITURES AND/OR THE LAYOFF OF
STATE EMPLOYEES.
3. NOT LESS THAN TWENTY DAYS BEFORE SUCH EVALUATION IS SUBMITTED TO
THE LEGISLATURE, THE GOVERNOR SHALL CAUSE TO BE HELD A PUBLIC HEARING
AVAILABLE BY INTERNET WEBCAST ON THE PROPOSED DECREASE IN STATE EXPENDI-
TURE AND/OR LAYOFF WITH THE OPPORTUNITY PROVIDED TO THE PUBLIC FOR
COMMENT BY ELECTRONIC MAIL. THE RECORD OF AND RESPONSES TO SUCH HEARING
SHALL BE INCLUDED WITH THE SUBMITTAL OF THE EVALUATION TO THE LEGISLA-
TURE AND SHALL BE AVAILABLE TO THE PUBLIC.
S 4. This act shall take effect immediately.