STATE OF NEW YORK
________________________________________________________________________
9789--A
IN ASSEMBLY
February 11, 2020
___________
Introduced by M. of A. BRAUNSTEIN, GOTTFRIED -- 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 the estab-
lishment by the city of New York of a revenue stabilization fund and
variations from generally accepted accounting principles as applied to
the budget and accounts of such city in connection with such fund
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 25 of the general municipal law, as added by chap-
2 ter 406 of the laws of 2019, is amended to read as follows:
3 § 25. Treatment of capital costs and [restricted] certain fund
4 balances of the city of New York; revenue stabilization fund of such
5 city. Notwithstanding the provisions of any general or special state
6 law or local law to the contrary, including but not limited to the New
7 York city charter, the following shall apply with respect to the budget
8 and accounts of the city of New York:
9 1. All costs that would be capital costs in accordance with generally
10 accepted accounting principles, but for the application of governmental
11 accounting standards board statement number forty-nine, shall be deemed
12 to be capital costs for purposes of this chapter and any other provision
13 of state or local law, including but not limited to the New York city
14 charter, relevant to the treatment of such costs; [and]
15 2. The determination as to the existence of a deficit pursuant to the
16 New York state financial emergency act for the city of New York, while
17 such act remains in effect, and any other provision of state or local
18 law, including but not limited to the New York city charter, shall be
19 made without regard to changes in restricted fund balances, as defined
20 by the governmental accounting standards board, where restrictions in
21 relation to such fund balances are imposed by state or federal law or
22 regulation, or otherwise by private or governmental parties other than
23 the city of New York, and without regard to funds held in the health
24 stabilization fund, the school crossing guards health insurance fund,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15355-02-0
A. 9789--A 2
1 any revenue stabilization fund established pursuant to section fifteen
2 hundred twenty-eight of the New York city charter and the management
3 benefits fund established by the city of New York. Deposits into any
4 such revenue stabilization fund shall be deemed to be expenses of such
5 city for all purposes in the fiscal year during which such deposits are
6 made, and withdrawals from such fund shall be deemed to be revenues of
7 such city for all purposes in the fiscal year during which such with-
8 drawals are made; provided however, that surpluses of such city, whether
9 accumulated from fiscal years ending prior to the effective date of the
10 chapter of the laws of two thousand twenty that amended this subdivision
11 or existing at the close of any fiscal year ending after such effective
12 date, shall be deposited into such revenue stabilization fund as soon as
13 practicable, and such deposits shall not be deemed expenses of the city
14 in the fiscal years during which such deposits are made; and
15 3. The city of New York may establish and maintain a revenue stabili-
16 zation fund pursuant to section fifteen hundred twenty-eight of the New
17 York city charter. Except as required by subdivision two of this section
18 with respect to surpluses, deposits into and withdrawals from such fund
19 may be made by means of the procedures set forth in such charter for
20 adoption or modification of the expense budget of such city, as applica-
21 ble, provided that no more than fifty percent of the total amount of
22 such fund may be withdrawn in any fiscal year unless the mayor has
23 certified that there is a compelling fiscal need, which may be based on
24 circumstances including, but not be limited to, a national or regional
25 recession, a reduction in total revenues from the preceding fiscal year
26 as projected in the financial plan of the city of New York, a natural or
27 other disaster, or a declared state of emergency in the city of New York
28 or the state of New York. The authority to establish a revenue stabili-
29 zation fund set forth in this subdivision shall be in addition to any
30 other authorization set forth in this article or other applicable law.
31 § 2. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
32 868 of the laws of 1975, constituting the New York state financial emer-
33 gency act for the city of New York, as amended by chapter 406 of the
34 laws of 2019, is amended to read as follows:
35 a. For its fiscal years ending June thirtieth, nineteen hundred seven-
36 ty-nine through June thirtieth, nineteen hundred eighty-one, the city's
37 budget covering all expenditures other than capital items shall be
38 prepared and balanced so that the results thereof would not show a defi-
39 cit when reported in accordance with the accounting principles set forth
40 in the state comptroller's uniform system of accounts for munici-
41 palities, as the same may be modified by the comptroller, in consulta-
42 tion with the city comptroller, for application to the city; subject to
43 the provision of subdivision four of section three thousand thirty-eight
44 of the public authorities law with respect to contributions by the city
45 or other public employer to any retirement system or pension fund and
46 subject to the provision of paragraph (c) of subdivision five of section
47 three thousand thirty-eight of the public authorities law with respect
48 to expense items included in the capital budget of the city. For the
49 fiscal year ending June thirtieth, nineteen hundred eighty-two, and for
50 each fiscal year thereafter, the city's budget covering all expenditures
51 other than capital items shall be prepared and balanced so that the
52 results thereof would not show a deficit when reported in accordance
53 with generally accepted accounting principles and would permit compar-
54 ison of the budget with the report of actual financial results prepared
55 in accordance with generally accepted accounting principles. With
56 respect to financial plans that include the fiscal years ending June
A. 9789--A 3
1 thirtieth, nineteen hundred seventy-nine through June thirtieth, nine-
2 teen hundred eighty-one, the city's budget covering all expenditures
3 other than capital items shall be prepared in accordance with generally
4 accepted accounting principles and there shall be substantial progress
5 in each such fiscal year towards achieving a city budget covering all
6 expenditures other than capital items the results of which would not
7 show a deficit when reported in accordance with generally accepted
8 accounting principles. The city shall eliminate expense items from its
9 capital budget not later than the commencement of the fiscal year ending
10 June thirtieth, nineteen hundred eighty-two. For the fiscal year ending
11 June thirtieth, nineteen hundred eighty-nine, and for each fiscal year
12 thereafter, the budgets covering all expenditures other than capital
13 items of each of the covered organizations shall be prepared and
14 balanced so that the results thereof would not show a deficit when
15 reported in accordance with generally accepted accounting principles;
16 and for each fiscal year prior thereto, there shall be substantial
17 progress towards such goal. Notwithstanding the foregoing and the
18 provisions of any general or special state law or local law to the
19 contrary, including but not limited to the New York city charter: (i)
20 all costs that would be capital costs in accordance with generally
21 accepted accounting principles, but for the application of governmental
22 accounting standards board statement number forty-nine, shall be deemed
23 to be capital costs for purposes of this act and any other provision of
24 state or local law, including but not limited to the New York city char-
25 ter, relevant to the treatment of such costs; and (ii) the determination
26 as to the existence of a deficit pursuant to this act and any other
27 provision of state or local law, including but not limited to the New
28 York city charter, shall be made without regard to changes in restricted
29 fund balances, as defined by the governmental accounting standards
30 board, where restrictions in relation to such fund balances are imposed
31 by state or federal law or regulation, or otherwise by private or
32 governmental parties other than the city of New York, and without regard
33 to funds held in the health stabilization fund, the school crossing
34 guards health insurance fund, any revenue stabilization fund established
35 pursuant to section fifteen hundred twenty-eight of the New York city
36 charter and the management benefits fund established by the city of New
37 York. Deposits into any such revenue stabilization fund shall be deemed
38 to be expenses of such city in the fiscal year in which such deposits
39 are made, and withdrawals from such fund shall be deemed to be revenues
40 of such city in the year in which such withdrawals are made; provided
41 however, that surpluses of such city, whether accumulated from fiscal
42 years ending prior to the effective date of the chapter of the laws of
43 two thousand twenty that amended this paragraph or existing at the close
44 of any fiscal year ending after such effective date, shall be deposited
45 into such revenue stabilization fund as soon as practicable, and such
46 deposits shall not be deemed expenses of the city in the fiscal year in
47 which such deposits are made.
48 § 3. This act shall take effect immediately.