Reforms the state budget process to provide that upon failure by the legislature to act upon a state budget within sixty days from the beginning of the state fiscal year, a default budget shall take effect.

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S2867-2011 Actions

• Feb 8, 2012: OPINION REFERRED TO JUDICIARY
• Jan 9, 2012: TO ATTORNEY-GENERAL FOR OPINION
• Jan 4, 2012: REFERRED TO JUDICIARY
• Apr 27, 2011: OPINION REFERRED TO JUDICIARY
• Feb 7, 2011: TO ATTORNEY-GENERAL FOR OPINION
• Feb 2, 2011: REFERRED TO JUDICIARY

S2867-2011 Memo

BILL NUMBER:S2867

TITLE OF BILL:
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 4 of article 7 of the constitution, in
relation to reforming the state budget process

PURPOSE:
To implement a fail safe mechanism through a Constitutional amendment
mandating the use of the prior fiscal year State budget if no budget
is agreed to within 72 hours after the April 1st commencement of the
fiscal year.

SUMMARY OF PROVISIONS:
Section 1 of the resolution amends Section 4 of Article VII of the
State Constitution to stipulate that if both houses of the
Legislature fail to finally act on all appropriation bills submitted
by the Governor within 72 hours after the start of the new fiscal
year, a "default budget" will be imposed that fiscal year.
Essentially, the prior fiscal year's budget will be comprised of all
appropriation bills for the immediately preceding fiscal year and all
laws governing apportionment and allocation of those appropriations.
Within 15 days after the date on which the default budget becomes
law, the Governor may make a determination that moneys and receipts
available for the fiscal year are less than the immediately preceding
year. In that event, the Governor shall have the following powers:
transfer any appropriation for any object or purpose to another
project or purpose only to meet contractual requirements; reduce by a
uniform percentage ail appropriations from the General Fund, or
portions thereof, not necessary to meet contractual requirements or
other requirements established by State or Federal law; and modify
the operation of any law governing the apportionment and the
allocation of appropriations. If the Governor does make such
a determination that moneys and receipts available for the fiscal
year are less than for the immediately preceding fiscal year, the
Governor must notify both houses of his determination and all
modifications that will be made to appropriations or to the operation
of laws for the fiscal year.

JUSTIFICATION:
Until 2005, it had been 20 years since the State budget had been
adopted before the start of the new fiscal year (April 1st). By
failing to adopt an "on-time" budget, the State
places schools, municipalities, and not-for-profit organizations at
risk of not knowing when and how much State aid will be available to
them. It may also delay the commencement (or continuation) of capital
projects and other programs which are important to the residents of
the State. By having such a "default" mechanism in place, ALL parties
will have a greater incentive to negotiate in good faith and to make
compromise necessary to achieve a fair and balanced budget. In the
event that they are unable to reach a consensus, the State and its
residents will be able to move forward and to have certainty as to
what allocations and spending will occur during the fiscal year.

LEGISLATIVE HISTORY:
2010: S.7849/A.5729 - Judiciary Committee/Ways and Means


FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
RESOLVED (if the Assembly concur,) That the foregoing amendments be
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.

S2867-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2867

                         2011-2012 Regular Sessions

                              I N  SENATE

                              February 2, 2011
                                 ___________

  Introduced by Sens. GRIFFO, RANZENHOFER -- read twice and ordered print-
    ed, and when printed to be committed to the Committee on Judiciary

              CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY

  proposing an amendment to section 4 of article 7 of the constitution, in
    relation to reforming the state budget process

    Section  1. Resolved (if the Assembly concur), That section 4 of arti-
  cle 7 of the constitution be amended to read as follows:

    S 4. The legislature may not alter an appropriation bill submitted  by
  the  governor  except  to strike out or reduce items therein, but it may
  add thereto items of appropriation  provided  that  such  additions  are
  stated separately and distinctly from the original items of the bill and
  refer  each  to  a single object or purpose. None of the restrictions of
  this section, however, shall apply to appropriations for the legislature
  or judiciary.
    Such an appropriation bill shall when passed by both houses be  a  law
  immediately   without  further  action  by  the  governor,  except  that
  appropriations for the legislature  and  judiciary  and  separate  items
  added  to  the  governor's  bills by the legislature shall be subject to
  approval of the governor as provided in section 7 of article IV.
    UPON THE FAILURE OF BOTH HOUSES  TO  FINALLY  ACT  WITHIN  SEVENTY-TWO
  HOURS  FROM  THE BEGINNING OF THE FISCAL YEAR ON ALL APPROPRIATION BILLS
  SUBMITTED BY THE GOVERNOR IN  ACCORDANCE  WITH  SECTION  THREE  OF  THIS
  ARTICLE,  A DEFAULT BUDGET SHALL BE LAW FOR SUCH FISCAL YEAR AS PROVIDED
  IN  THIS  SECTION.  THE  DEFAULT  BUDGET  SHALL  BE  COMPRISED  OF   ALL
  APPROPRIATION  BILLS  ACTED UPON BY BOTH HOUSES AND WHICH BECAME LAW FOR
  THE IMMEDIATELY PRECEDING FISCAL YEAR OR  THE  DEFAULT  BUDGET  FOR  THE
  IMMEDIATELY  PRECEDING  FISCAL  YEAR  IF A DEFAULT BUDGET BECAME LAW FOR
  SUCH FISCAL YEAR AND ALL LAWS GOVERNING THE APPORTIONMENT AND ALLOCATION
  APPROPRIATIONS  AND  THE  TRANSFER  AND  THE  LOAN  OF  FUNDS  FOR   THE
  IMMEDIATELY  PRECEDING  FISCAL  YEAR  SHALL  CONTINUE  TO BE LAW FOR THE
  FISCAL YEAR FOR WHICH THE DEFAULT BUDGET IS A  LAW,  PROVIDED,  HOWEVER,
  THAT   IN   NO   EVENT   SHALL  AGGREGATE  DISBURSEMENTS  AUTHORIZED  BY

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD89074-01-1

 S. 2867                             2

  APPROPRIATIONS CONTAINED IN THE DEFAULT  BUDGET  FOR  SUCH  FISCAL  YEAR
  EXCEED  AGGREGATE DISBURSEMENTS MADE IN THE IMMEDIATELY PRECEDING FISCAL
  YEAR.
    IN THE EVENT THAT A DEFAULT BUDGET BECOMES LAW FOR A FISCAL YEAR AND A
  DETERMINATION  IS  MADE  BY  THE  GOVERNOR THAT, FOR THE FISCAL YEAR FOR
  WHICH THE DEFAULT BUDGET IS A LAW, MONEYS AND RECEIPTS AVAILABLE FOR THE
  FISCAL YEAR  ARE  LESS  THAN  MONEYS  AND  RECEIPTS  AVAILABLE  FOR  THE
  IMMEDIATELY PRECEDING FISCAL YEAR, THE GOVERNOR SHALL HAVE THE FOLLOWING
  POWERS:

    (A)  THE  GOVERNOR MAY TRANSFER, IN EXCESS OF ANY LIMITATION OTHERWISE
  PROVIDED BY LAW, ANY APPROPRIATION OR PORTION THEREOF FOR ANY OBJECT  OR
  PURPOSE   TO   ANOTHER  OBJECT  OR  PURPOSE  ONLY  TO  MEET  CONTRACTUAL
  REQUIREMENTS FOR WHICH APPROPRIATIONS CONTAINED IN  THE  DEFAULT  BUDGET
  ARE NOT SUFFICIENT TO MEET SUCH REQUIREMENTS;
    (B) THE GOVERNOR MAY REDUCE BY A UNIFORM PERCENTAGE ALL APPROPRIATIONS
  FROM  THE  GENERAL  FUND  OR  PORTIONS  THEREOF  NOT  NECESSARY  TO MEET
  CONTRACTUAL REQUIREMENTS OR OTHER REQUIREMENTS ESTABLISHED BY  STATE  OR
  FEDERAL LAW;
    (C)  THE  GOVERNOR  MAY  MODIFY THE OPERATION OF ANY LAW GOVERNING THE
  APPORTIONMENT AND THE ALLOCATION OF APPROPRIATIONS OR  PART  THEREOF  IF
  THE  OPERATION  OF  SUCH  LAW OR PART THEREOF REQUIRES DISBURSEMENTS FOR
  SUCH OBJECT OR  PURPOSE  REQUIRED  BY  THE  OPERATION  OF  LAW  FOR  THE
  IMMEDIATELY PRECEDING FISCAL YEAR. THE OPERATION OF ANY SUCH LAW OR PART
  THEREOF  SHALL ONLY BE MODIFIED SUCH THAT SUCH MODIFICATION SHALL RESULT
  IN REQUIRED DISBURSEMENTS FOR AN OBJECT OR  PURPOSE  DURING  THE  FISCAL
  YEAR  WHICH  IS  LESS  THAN THE DISBURSEMENTS FOR SUCH OBJECT OR PURPOSE
  THAT WOULD OTHERWISE BE REQUIRED BY THE OPERATION OF  LAW  WITHOUT  SUCH
  MODIFICATION, PROVIDED, HOWEVER, THAT SUCH MODIFICATION SHALL NOT RESULT
  IN  DISBURSEMENTS  FOR  AN  OBJECT  OR  PURPOSE  WHICH ARE LESS THAN THE
  DISBURSEMENTS FOR SUCH  OBJECT  OR  PURPOSE  REQUIRED  BY  LAW  FOR  THE
  IMMEDIATELY  PRECEDING  FISCAL YEAR. ANY SUCH LAW WHICH PROVIDES FOR THE
  ALLOCATION OR APPORTIONMENT OF APPROPRIATIONS FOR AN OBJECT  OR  PURPOSE
  BETWEEN OR AMONG ENTITIES MAY BE MODIFIED BY THE GOVERNOR ONLY SUCH THAT
  THE REQUIRED REDUCTION IN DISBURSEMENTS RESULTING FROM SUCH MODIFICATION
  RESULTS IN A UNIFORM PERCENTAGE REDUCTION TO ALL AFFECTED ENTITIES.
    ANY  DETERMINATION MADE BY THE GOVERNOR PURSUANT TO THIS SECTION THAT,
  FOR A FISCAL YEAR FOR WHICH A DEFAULT BUDGET IS LAW, MONEYS AND RECEIPTS
  AVAILABLE FOR  THE  FISCAL  YEAR  ARE  LESS  THAN  MONEYS  AND  RECEIPTS
  AVAILABLE  FOR  THE IMMEDIATELY PRECEDING FISCAL YEAR SHALL ONLY BE MADE
  WITHIN FIFTEEN DAYS AFTER THE DATE ON WHICH A DEFAULT BUDGET BECOMES LAW
  AND THE ESTIMATE OF MONEYS AND  RECEIPTS  AVAILABLE  USED  IN  ANY  SUCH
  DETERMINATION  SHALL  BE BASED ON A CONSENSUS FORECAST OR OTHER FORECAST
  OF SUCH  ESTIMATES  TO  THE  EXTENT  PROVIDED  ACCORDING  TO  PROCEDURES
  ESTABLISHED  BY  LAW.  ON MAKING SUCH A DETERMINATION THE GOVERNOR SHALL
  NOTIFY BOTH HOUSES OF THE LEGISLATURE OF HIS OR  HER  DETERMINATION  AND
  ALL  MODIFICATIONS  AUTHORIZED  BY  THIS  SECTION  THAT  WILL BE MADE TO
  APPROPRIATIONS OR TO THE OPERATION OF LAWS FOR THE FISCAL YEAR.
    S 2. Resolved (if the Assembly concur), That the  foregoing  amendment
  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.