Bill Text: NY A05425 | 2023-2024 | General Assembly | Introduced

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Bill Title: Provides that monies may not be withdrawn from the revenue stabilization fund of the city of New York in any fiscal year unless the mayor has certified that there is a compelling fiscal need, including a national or regional recession of at least two quarters of declining real gross city product, a natural or other disaster, including terrorist attacks, or a declared state of emergency in the city of New York or the state of New York.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A05425 Detail]

Download: New_York-2023-A05425-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5425

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 10, 2023
                                       ___________

        Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred to the
          Committee on Cities

        AN ACT to amend the general municipal law, in relation to  monies  with-
          drawn from the revenue stabilization fund of the city of New York

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 3 of section 25 of the general  municipal  law,
     2  as  added  by  chapter  118  of  the laws of 2020, is amended to read as
     3  follows:
     4    3. The city of New York may establish and maintain a revenue  stabili-
     5  zation  fund pursuant to section fifteen hundred twenty-eight of the New
     6  York city charter and this chapter.  A target amount of fiscal  reserves
     7  to  be maintained in such fund shall be designated at an amount adequate
     8  to fulfill the purpose of the fund with the goal of representing no less
     9  than twelve percent and no more than eighteen percent of  the  operating
    10  budget.    The  adequacy of the fund's target reserves shall be reviewed
    11  periodically and be determined based on an analysis of revenue  sources,
    12  revenue  volatility  and other relevant risk factors. Except as required
    13  by subdivision two of this section with respect to  surpluses,  deposits
    14  into  and  withdrawals from such fund may be made by means of the proce-
    15  dures set forth in such charter for  adoption  or  modification  of  the
    16  expense  budget of such city, as applicable, provided that [no more than
    17  fifty percent of the total amount of such fund] monies shall be deposit-
    18  ed annually until the target amount of fiscal reserves  is  reached  and
    19  such deposits shall be included as appropriations in the adopted expense
    20  budget  of  the city of New York, and monies may not be withdrawn in any
    21  fiscal year unless the mayor has certified in writing that  there  is  a
    22  compelling  fiscal  need[,  which may] and the withdrawal of such monies
    23  has been approved by a two-thirds vote of the city council. A compelling
    24  fiscal need shall be based  on  circumstances  including[,  but  not  be
    25  limited  to,]  a national or regional recession of at least two quarters

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10117-01-3
        A. 5425                             2

     1  of declining real gross city product, [a  reduction  in  total  revenues
     2  from the preceding fiscal year as projected in the financial plan of the
     3  city  of  New  York,]  a  natural or other disaster, including terrorist
     4  attacks, or a declared state of emergency in the city of New York or the
     5  state  of  New York.  Withdrawals shall commence within twelve months of
     6  the unanticipated event triggering such withdrawal and shall not  exceed
     7  fifty  percent of the total amount of such fund in any fiscal year.  Any
     8  withdrawals from the fund shall be replenished within the shortest prac-
     9  ticable period of time. The authority to establish a revenue  stabiliza-
    10  tion  fund  set  forth  in  this subdivision shall be in addition to any
    11  other authorization set forth in this article or other applicable law.
    12    § 2. Section  25 of the general municipal law is amended by  adding  a
    13  new subdivision 4 to read as follows:
    14    4. For as long as a revenue stabilization fund is maintained, the city
    15  of  New  York  shall  publish on its official website a statement of its
    16  budget reserve policy as it relates to  such  fund  and  the  procedures
    17  governing  the operation of the fund.  At a minimum such statement shall
    18  describe:
    19    (a) The purpose of the revenue stabilization fund;
    20    (b) The target amount of fiscal reserves to be maintained in the  fund
    21  and  the  rationale  as to why the target amount is adequate to meet the
    22  purposes of the fund;
    23    (c) The procedures for depositing  and  withdrawing  monies  from  the
    24  fund;
    25    (d)  The  process  for  budgeting  annual deposits to the fund and the
    26  analysis used to determine the amount of annual deposits; and
    27    (e) The policy for replenishing withdrawals from the fund  within  the
    28  shortest practicable period of time.
    29    § 3. This act shall take effect on the one hundred eightieth day after
    30  it shall have become a law.