Bill S1892-2011

Places limitations on the amount of money that the governor may propose to spend in a given fiscal year; repealer

Places limitations on the amount of money that the governor may propose to spend in a given fiscal year.

Details

Actions

  • Feb 8, 2012: OPINION REFERRED TO JUDICIARY
  • Jan 9, 2012: TO ATTORNEY-GENERAL FOR OPINION
  • Jan 4, 2012: REFERRED TO FINANCE
  • Feb 2, 2011: OPINION REFERRED TO JUDICIARY
  • Jan 19, 2011: referred to ways and means
  • Jan 19, 2011: DELIVERED TO ASSEMBLY
  • Jan 19, 2011: PASSED SENATE
  • Jan 18, 2011: ORDERED TO THIRD READING CAL.3
  • Jan 18, 2011: REPORTED AND COMMITTED TO RULES
  • Jan 14, 2011: TO ATTORNEY-GENERAL FOR OPINION
  • Jan 14, 2011: REFERRED TO FINANCE

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Rules - Jan 18, 2011
Ayes (13): Skelos, Libous, Alesi, Farley, Hannon, Johnson, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Saland, Seward
Ayes W/R (2): Duane, Smith
Nays (9): Sampson, Breslin, Dilan, Hassell-Thompson, Krueger, Montgomery, Parker, Perkins, Stewart-Cousins

Memo

BILL NUMBER:S1892

TITLE OF BILL:

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment to article 7 of the constitution, in relation to limiting the growth on New York state disbursements and creating a revenue stabilization tax reduction and debt repayment fund; repealing section 17 of article 7 of the constitution relating to authorizing the establishment of a fund to aid in the stabilization of tax revenues

PURPOSE:

The purpose of this legislation is to ensure state fiscal discipline by constitutionally limiting the percentage of growth from fiscal year to fiscal year in the state's budget.

SUMMARY OF PROVISIONS:

Section 1 amends Article VII, by creating a new Section 7-a which limits state fiscal year spending to the preceding year's spending plus the product of the preceding years spending the lesser of 120% of the inflation rate or 2%. Section 2 repeals Section 17 of Article VII and adds a new Section 17 which requires revenues in excess of the state spending limitation be deposited into the tax stabilization reserve fund. The remainder of the revenues are to be returned to New York resident taxpayers in proportion to their personal income tax liability.

EXISTING LAW:

Presently, there are no limitations as to how much state spending may increase from year to year.

JUSTIFICATION:

By all measures, the tax burden on New Yorkers is among the highest in the nation. Unchecked growth in spending from one fiscal year to the next serves only to increase the tax burden on New Yorkers. By limiting the amount of annual growth in the state's budget, New York can check the growth of government and the attendant tax burden on its citizens.

LEGISLATIVE HISTORY:

S.6960 of 2010

FISCAL IMPLICATIONS:

Savings to the state from an improved budget process.

LOCAL FISCAL IMPLICATIONS: None.

EFFECTIVE DATE Resolved (if the Assembly concur), That the foregoing amendments be referred to the first regular legislative session convening after the next succeeding general election of members of the assembly, and in conformity with section 1 of article 19 of the constitution, be published for 3 months previous to the time of such election.


Text

STATE OF NEW YORK ________________________________________________________________________ 1892 2011-2012 Regular Sessions IN SENATE January 14, 2011 ___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment to article 7 of the constitution, in relation to limiting the growth on New York state disbursements and creating a revenue stabilization tax reduction and debt repayment fund; repealing section 17 of article 7 of the constitution relating to authorizing the establishment of a fund to aid in the stabilization of tax reven- ues Section 1. Resolved (if the Assembly concur), That article 7 of the constitution be amended by adding a new section 7-a to read as follows: S 7-A. 1. EXCEPT IN THE CASE OF AN EMERGENCY, THE GOVERNOR SHALL NOT SUBMIT ANY APPROPRIATION BILL OR BILLS, NOR SHALL THE LEGISLATURE ACT UPON ANY SUCH APPROPRIATION BILL OR SUPPLEMENTAL APPROPRIATION BILL OR BILLS FOR THE SUPPORT OF GOVERNMENT WHICH AUTHORIZE AN INCREASE IN TOTAL STATE SPENDING OVER THE PRECEDING STATE FISCAL YEAR WHICH IS IN EXCESS OF THE PRODUCT OF THE TOTAL STATE SPENDING FOR THE PRECEDING FISCAL YEAR AND THE LESSER OF ONE HUNDRED TWENTY PERCENT OF THE INFLATION RATE OR TWO PERCENT. 2. UPON A FINDING AND DECLARATION OF AN EMERGENCY BY THE GOVERNOR WITH CONCURRENCE OF THE COMPTROLLER, THE GOVERNOR MAY SUBMIT AN APPROPRIATION BILL OR BILLS WHICH AUTHORIZE TOTAL STATE SPENDING IN EXCESS OF THE LIMITATION PROVIDED IN SUBDIVISION ONE OF THIS SECTION. 3. FOR PURPOSES OF THIS SECTION: A. "TOTAL STATE SPENDING" SHALL MEAN ALL STATE FUNDS, WHICH SHALL CONSTITUTE: (I) GENERAL FUNDS; (II) SPECIAL REVENUE FUNDS; (III) CAPITAL PROJECT FUNDS; (IV) DEBT SERVICE FUNDS. B. "INFLATION RATE" SHALL MEAN THE ANNUAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX, ALL URBAN, AS PUBLISHED BY THE BUREAU OF LABOR STATISTICS, OR ANY SUCCESSOR AGENCY, FOR THE PREVIOUS TWELVE MONTH PERI- OD ENDING OCTOBER THIRTY-FIRST. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. S LBD89094-02-1 S. 1892 2 C. "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN OR UNEXPECTED OCCURRENCE OR COMBINATION OF CIRCUMSTANCES IN A GIVEN FISCAL YEAR WHICH REQUIRES IMMEDIATE AND SUDDEN FISCAL ACTION OF A DRASTIC BUT TEMPORARY NATURE. S 2. Resolved (if the Assembly concur), That section 17 of article 7 of the constitution be REPEALED and a new section 17 be added to read as follows: S 17. IN ANY STATE FISCAL YEAR IF TOTAL STATE REVENUES ARE IN EXCESS OF THE STATE SPENDING LIMITATION PURSUANT TO SUBDIVISION ONE OF SECTION SEVEN-A OF THIS ARTICLE, ONE-HALF OF THE REVENUES IN EXCESS OF SUCH STATE SPENDING LIMITATION MUST BE DEPOSITED INTO THE TAX STABILIZATION RESERVE FUND. THE REMAINDER SHALL BE RETURNED TO NEW YORK RESIDENT TAXPAYERS IN PROPORTION TO PERSONAL INCOME TAX LIABILITY. S 3. Resolved (if the Assembly concur), That the foregoing amendments be referred to the first regular legislative session convening after the next succeeding general election of members of the assembly, and, in conformity with section 1 of article 19 of the constitution, be published for 3 months previous to the time of such election.

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