Bill Text: NY A06294 | 2019-2020 | General Assembly | Amended


Bill Title: Establishes permitted variations from generally accepted accounting principles for the purposes of determining a deficit with respect to the budget and accounts of the city of New York.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-06-17 - reported referred to rules [A06294 Detail]

Download: New_York-2019-A06294-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         6294--A
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 4, 2019
                                       ___________
        Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
          Committee on Cities -- committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
        AN  ACT to amend the general municipal law and the New York state finan-
          cial emergency act for the city of New York, in  relation  to  certain
          variations from generally accepted accounting principles as applied to
          the budget and accounts 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. The general municipal  law  is  amended  by  adding  a  new
     2  section 25 to read as follows:
     3    §  25.  Treatment  of  capital  costs  and  restricted  fund balances.
     4  Notwithstanding the provisions of any general or special  state  law  or
     5  local  law  to  the  contrary, including but not limited to the New York
     6  city charter, the following shall apply with respect to the  budget  and
     7  accounts of the city of New York:
     8    1.  All costs that would be capital costs in accordance with generally
     9  accepted accounting principles, but for the application of  governmental
    10  accounting  standards board statement number forty-nine, shall be deemed
    11  to be capital costs for purposes of this chapter and any other provision
    12  of state or local law, including but not limited to the  New  York  city
    13  charter, relevant to the treatment of such costs; and
    14    2.  The determination as to the existence of a deficit pursuant to the
    15  New York state financial emergency act for the city of New  York,  while
    16  such  act  remains  in effect, and any other provision of state or local
    17  law, including but not limited to the New York city  charter,  shall  be
    18  made  without  regard to changes in restricted fund balances, as defined
    19  by the governmental accounting standards board,  where  restrictions  in
    20  relation  to  such  fund balances are imposed by state or federal law or
    21  regulation, or otherwise by private or governmental parties  other  than
    22  the  city  of  New  York, and without regard to funds held in the health
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10352-02-9

        A. 6294--A                          2
     1  stabilization fund, the school crossing guards health insurance fund and
     2  the management benefits fund established by the city of New York.
     3    § 2. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
     4  868 of the laws of 1975, constituting the New York state financial emer-
     5  gency  act  for the city of New York, as amended by section 1 of part PP
     6  of chapter 56 of the laws of 2010, is amended to read as follows:
     7    a. For its fiscal years ending June thirtieth, nineteen hundred seven-
     8  ty-nine through June thirtieth, nineteen hundred eighty-one, the  city's
     9  budget  covering  all  expenditures  other  than  capital items shall be
    10  prepared and balanced so that the results thereof would not show a defi-
    11  cit when reported in accordance with the accounting principles set forth
    12  in the state  comptroller's  uniform  system  of  accounts  for  munici-
    13  palities,  as  the same may be modified by the comptroller, in consulta-
    14  tion with the city comptroller, for application to the city; subject  to
    15  the provision of subdivision four of section three thousand thirty-eight
    16  of  the public authorities law with respect to contributions by the city
    17  or other public employer to any retirement system or  pension  fund  and
    18  subject to the provision of paragraph (c) of subdivision five of section
    19  three  thousand  thirty-eight of the public authorities law with respect
    20  to expense items included in the capital budget of  the  city.  For  the
    21  fiscal  year ending June thirtieth, nineteen hundred eighty-two, and for
    22  each fiscal year thereafter, the city's budget covering all expenditures
    23  other than capital items shall be prepared  and  balanced  so  that  the
    24  results  thereof  would  not  show a deficit when reported in accordance
    25  with generally accepted accounting principles and would  permit  compar-
    26  ison  of the budget with the report of actual financial results prepared
    27  in  accordance  with  generally  accepted  accounting  principles.  With
    28  respect  to  financial  plans  that include the fiscal years ending June
    29  thirtieth, nineteen hundred seventy-nine through June  thirtieth,  nine-
    30  teen  hundred  eighty-one,  the  city's budget covering all expenditures
    31  other than capital items shall be prepared in accordance with  generally
    32  accepted  accounting  principles and there shall be substantial progress
    33  in each such fiscal year towards achieving a city  budget  covering  all
    34  expenditures  other  than  capital  items the results of which would not
    35  show a deficit when  reported  in  accordance  with  generally  accepted
    36  accounting  principles.  The city shall eliminate expense items from its
    37  capital budget not later than the commencement of the fiscal year ending
    38  June thirtieth, nineteen hundred eighty-two. For the fiscal year  ending
    39  June  thirtieth,  nineteen hundred eighty-nine, and for each fiscal year
    40  thereafter, the budgets covering all  expenditures  other  than  capital
    41  items  of  each  of  the  covered  organizations  shall  be prepared and
    42  balanced so that the results thereof  would  not  show  a  deficit  when
    43  reported  in  accordance  with generally accepted accounting principles;
    44  and for each fiscal year  prior  thereto,  there  shall  be  substantial
    45  progress  towards  such  goal.    Notwithstanding  the foregoing and the
    46  provisions of any general or special state  law  or  local  law  to  the
    47  contrary, including but not limited to the New York city charter[,]: (i)
    48  all  costs  that  would  be  capital  costs in accordance with generally
    49  accepted accounting principles, but for the application of  governmental
    50  accounting  standards board statement number forty-nine, shall be deemed
    51  to be capital costs for purposes of this [chapter]  act  and  any  other
    52  provision  of  state  or local law, including but not limited to the New
    53  York city charter, relevant to the treatment of such costs; and (ii) the
    54  determination as to the existence of a deficit pursuant to this act  and
    55  any  other provision of state or local law, including but not limited to
    56  the New York city charter, shall be made without regard  to  changes  in

        A. 6294--A                          3
     1  restricted  fund  balances,  as  defined  by the governmental accounting
     2  standards board, where restrictions in relation to  such  fund  balances
     3  are  imposed  by  state  or  federal  law or regulation, or otherwise by
     4  private  or  governmental  parties  other than the city of New York, and
     5  without regard to funds held  in  the  health  stabilization  fund,  the
     6  school crossing guards health insurance fund and the management benefits
     7  fund established by the city of New York.
     8    § 3. This act shall take effect immediately.
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