S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7314
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 22, 2019
                                ___________
 
 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 2018".
   § 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.
   §  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.
              

                                                            LBD09511-01-9

 A. 7314                             2
 
   § 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.
   § 4. This act shall take effect immediately.