Bill Text: NY A05893 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes an annual spending growth cap.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A05893 Detail]

Download: New_York-2023-A05893-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5893

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 24, 2023
                                       ___________

        Introduced by M. of A. JENSEN -- read once and referred to the Committee
          on Ways and Means

        AN  ACT  to  amend  the state finance law, in relation to establishing a
          spending cap

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

     1    Section 1. The state finance law is amended by adding a new article 17
     2  to read as follows:
     3                                 ARTICLE 17
     4                       ANNUAL SPENDING GROWTH CAP ACT
     5  Section 244. Definitions.
     6          245. Establishment of annual spending growth cap.
     7          246. Provisions regarding declaration of emergency.
     8    § 244. Definitions. As used in this article, the following terms shall
     9  have the following meanings, unless otherwise specified:
    10    1.  "Annual spending growth cap" shall mean a percentage determined by
    11  adding the inflation rates from each of the three calendar  years  imme-
    12  diately prior to the commencement of a given fiscal year and then divid-
    13  ing that sum by three or two percent, whichever is less.
    14    2. "State operating funds spending" shall mean annual disbursements of
    15  all governmental fund types included in the cash-basis financial plan of
    16  the  state,  excluding  disbursements  from  federal  funds  and capital
    17  project funds.
    18    3. "Inflation rate" shall mean the percentage change  in  the  twelve-
    19  month  average  of  the  consumer price index for all urban consumers as
    20  published by the United States department  of  labor,  bureau  of  labor
    21  statistics or any successor agency for a given calendar year compared to
    22  the prior calendar year.
    23    4.  "Executive budget" shall mean the budget submitted annually by the
    24  governor  pursuant  to section one of article VII of the state constitu-
    25  tion.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03491-01-3
        A. 5893                             2

     1    5.  "State budget as enacted" shall mean the budget acted upon by  the
     2  legislature  in a given fiscal year, as subject to section four of arti-
     3  cle VII of the state constitution and section seven of article IV of the
     4  state constitution.
     5    6.  "Emergency" shall mean an extraordinary, unforeseen, or unexpected
     6  occurrence, or combination of circumstances, including but  not  limited
     7  to a natural disaster, invasion, terrorist attack, or economic calamity.
     8    § 245. Establishment of annual spending growth cap.  1. There is here-
     9  by established an annual spending growth cap.
    10    2.  The  governor  shall not submit, and the legislature shall not act
    11  upon, a budget that contains a percentage increase over the prior fiscal
    12  year in state operating funds spending which exceeds the annual spending
    13  growth cap.
    14    3. The governor shall certify in writing that  state  operating  funds
    15  spending  in  the  executive  budget does not exceed the annual spending
    16  growth cap. If final inflation rate data for the prior calendar year  is
    17  not  yet available at the time the governor submits his or her executive
    18  budget, he or she shall furnish a  reasonable  estimate  of  such  prior
    19  calendar year inflation rate.
    20    4.  The  comptroller  shall provide, within five days of action by the
    21  legislature upon the budget, a determination as  to  whether  the  state
    22  operating  funds  spending  as  set forth in the state budget as enacted
    23  exceeds the annual spending growth cap.
    24    5. If the comptroller finds that state operating funds spending as set
    25  forth in the state budget as enacted exceeds the annual spending  growth
    26  cap, the governor shall take corrective action to ensure that funding is
    27  limited to the amount of the annual spending cap.
    28    § 246. Provisions regarding declaration of emergency.  1. Upon a find-
    29  ing  of an emergency by the governor, he or she may declare an emergency
    30  by an executive order which shall set forth the reasons for such  decla-
    31  ration.
    32    2.  Based  upon  such  declaration,  the  governor may submit, and the
    33  legislature may authorize,  by  a  two-thirds  supermajority,  a  budget
    34  containing  a  percentage  increase  over the prior fiscal year in state
    35  operating funds spending that exceeds the annual spending growth cap.
    36    § 2. This act shall take effect on the thirtieth day  after  it  shall
    37  have become a law.