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STATE OF NEW YORK
________________________________________________________________________

4006

2011-2012 Regular Sessions

IN SENATE

March 12, 2011
___________

Introduced  by  Sen.  SKELOS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the legislative law, in relation to establishing the New
  York state legislative budget office; to amend the state  finance  law
  and  the  legislative  law,  in relation to enacting a balanced budget
  requirement; and to amend the state finance law, in relation to budget
  reform

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The legislative law is amended by adding a new article 4-B
to read as follows:
                                ARTICLE 4-B
                NEW YORK STATE LEGISLATIVE BUDGET OFFICE
SECTION 75. POWERS AND DUTIES OF THE NEW YORK STATE  LEGISLATIVE  BUDGET
              OFFICE.
        76. DIRECTOR OF THE NEW YORK STATE LEGISLATIVE BUDGET OFFICE.
  S  75.  POWERS  AND  DUTIES  OF  THE NEW YORK STATE LEGISLATIVE BUDGET
OFFICE. THERE SHALL HEREBY BE ESTABLISHED AN  OFFICE  OF  THE  NEW  YORK
STATE  LEGISLATURE  TO BE KNOWN AS THE NEW YORK STATE LEGISLATIVE BUDGET
OFFICE.  1. IT SHALL BE THE PRIMARY DUTY AND FUNCTION OF  THE  NEW  YORK
STATE LEGISLATIVE BUDGET OFFICE TO PROVIDE THE MEMBERS AND COMMITTEES OF
THE  LEGISLATURE  WITH  INFORMATION WHICH WILL ASSIST SUCH OFFICIALS AND
BODIES IN THE DISCHARGE OF MATTERS WITHIN THEIR JURISDICTION  PERTAINING
TO THE BUDGETARY PROCESS INCLUDING:
  (A)  INFORMATION  WITH RESPECT TO THE BUDGET, APPROPRIATIONS BILLS AND
OTHER   BILLS   AUTHORIZING   OR   PROVIDING   FOR   EXPENDITURES   FROM
GOVERNMENT-WIDE  FUNDS  OR  REVENUES TO THOSE FUNDS; INCLUDING ANY BILLS
THAT HAVE A DIRECT OR INDIRECT FISCAL IMPACT IN  TERMS  OF  SPENDING  OR
REVENUE;
  (B)  INFORMATION  WITH RESPECT TO ESTIMATED REVENUES AND RECEIPTS, AND
CHANGING REVENUE CONDITIONS;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10223-01-1
S. 4006                             2

  (C) INFORMATION WITH RESPECT TO THE PERFORMANCE AND  EFFECTIVENESS  OF
STATE AGENCIES AND PROGRAMS; AND
  (D)  TO  THE EXTENT PRACTICABLE, SUCH OTHER INFORMATION OR ANALYSES AS
MAY BE REQUESTED BY SUCH OFFICIALS AND BODIES, AND THE GENERAL PUBLIC.
  REQUESTS MADE BY THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF
THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE AND THE CHAIR OF
THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE BUDGET, REVENUES AND
EXPENDITURES SHALL RECEIVE PRIORITY ATTENTION.
  2.   THE LEGISLATIVE BUDGET OFFICE  SHALL  COMPLETE  A  FISCAL  IMPACT
STATEMENT:  (A)  FOR  ANY  BILL BEING CONSIDERED ON AN ASSEMBLY WAYS AND
MEANS COMMITTEE AGENDA OR A SENATE  FINANCE  COMMITTEE  AGENDA,  TO  THE
EXTENT  POSSIBLE;  (B)  FOR  ANY  BILL  AT THE REQUEST OF THE SPEAKER OR
MINORITY LEADER OF THE ASSEMBLY OR THE TEMPORARY PRESIDENT  OR  MINORITY
LEADER  OF  THE  SENATE;  AND (C) AT THE REQUEST OF A COMMITTEE CHAIR OR
RANKING MEMBER OF A COMMITTEE FOR ANY BILL REFERRED TO THEIR  RESPECTIVE
COMMITTEE.   FISCAL IMPACT STATEMENTS SHALL ESTIMATE THE IMPACT ON STATE
REVENUES OR EXPENDITURES.
  3.  THE LEGISLATIVE BUDGET OFFICE SHALL  SUBMIT  AN  ANALYSIS  OF  THE
EXECUTIVE  BUDGET  BY  MARCH  FIRST  OF  EACH YEAR TO THE MEMBERS OF THE
ASSEMBLY WAYS AND MEANS COMMITTEE AND THE SENATE FINANCE COMMITTEE,  AND
MAKE  COPIES  OF  SUCH  ANALYSIS  AVAILABLE  TO ALL OTHER MEMBERS OF THE
LEGISLATURE AND ALL OTHER INDIVIDUALS, UPON REQUEST.
  4. THE LEGISLATIVE BUDGET OFFICE SHALL,  TO  THE  EXTENT  PRACTICABLE,
DEVELOP  PROPOSALS FOR COST EFFECTIVE ALTERNATIVE APPROACHES TO MEET THE
FINANCIAL OBLIGATIONS OF THE STATE.
  5. THE LEGISLATIVE BUDGET OFFICE SHALL PUBLISH A REPORT  WITH  RESPECT
TO  THE  EXPECTED  LEVELS OF STATE REVENUES BY THE FIRST DAY OF JANUARY,
THE FIRST DAY OF APRIL, THE FIRST DAY OF JULY AND THE FIRST DAY OF OCTO-
BER OF EACH YEAR.
  6. THE LEGISLATIVE BUDGET OFFICE SHALL PUBLISH BY  DECEMBER  FIRST  OF
EACH  YEAR  A  REPORT  ANALYZING THE FISCAL OUTLOOK OF THE STATE FOR THE
NEXT FIVE YEARS.
  7. AT THE REQUEST OF ANY MEMBER OR COMMITTEE  OF  THE  SENATE  OR  THE
ASSEMBLY,  THE  LEGISLATIVE BUDGET OFFICE SHALL, TO THE EXTENT PRACTICA-
BLE, CONSULT WITH AND ASSIST SUCH COMMITTEE IN ANALYZING  THE  BUDGETARY
OR FINANCIAL IMPACT OF ANY PROPOSED LEGISLATION THAT MAY HAVE:
  (A) A SIGNIFICANT BUDGETARY IMPACT ON LOCAL OR TRIBAL GOVERNMENTS;
  (B) A SIGNIFICANT FINANCIAL IMPACT ON THE PRIVATE SECTOR; OR
  (C) A SIGNIFICANT EMPLOYMENT IMPACT ON THE PRIVATE SECTOR.
  8.  (A)  THE  DIRECTOR  OF THE LEGISLATIVE BUDGET OFFICE SHALL CONDUCT
CONTINUING STUDIES ON FISCAL MATTERS INCLUDING WAYS TO  ENHANCE  COMPAR-
ISONS OF BUDGET AUTHORITY AND OUTLAYS, DEBT AUTHORITY, AND TAX POLICY.
  (B)  (1) AT THE REQUEST OF ANY CHAIR OR RANKING MEMBER OF THE MINORITY
OF A COMMITTEE OF THE SENATE OR THE ASSEMBLY, THE DIRECTOR SHALL, TO THE
EXTENT PRACTICABLE, CONDUCT A STUDY OF A LEGISLATIVE PROPOSAL CONTAINING
A STATE MANDATE.
  (2) IN CONDUCTING A STUDY ON  INTERGOVERNMENTAL  MANDATES  UNDER  THIS
PARAGRAPH, THE DIRECTOR SHALL:
  (I)  SOLICIT  AND  CONSIDER INFORMATION OR COMMENTS FROM ELECTED OFFI-
CIALS (INCLUDING THEIR DESIGNATED REPRESENTATIVES) OF STATE,  LOCAL,  OR
TRIBAL GOVERNMENTS AS MAY PROVIDE HELPFUL INFORMATION OR COMMENTS;
  (II)  CONSIDER  ESTABLISHING  ADVISORY  PANELS OF ELECTED OFFICIALS OR
THEIR DESIGNATED REPRESENTATIVES, OF LOCAL OR TRIBAL GOVERNMENTS IF  THE
DIRECTOR  DETERMINES  THAT  SUCH  ADVISORY  PANELS  WOULD  BE HELPFUL IN
PERFORMING RESPONSIBILITIES OF THE DIRECTOR UNDER THIS SECTION; AND
S. 4006                             3

  (III) IF, AND TO THE EXTENT THAT THE DIRECTOR DETERMINES THAT ACCURATE
ESTIMATES ARE REASONABLY FEASIBLE, INCLUDE ESTIMATES OF:
  (A)  THE  FUTURE  DIRECT  COST OF THE STATE MANDATE TO THE EXTENT THAT
SUCH COSTS SIGNIFICANTLY DIFFER FROM  OR  EXTEND  BEYOND  THE  FIVE-YEAR
PERIOD AFTER THE MANDATE IS FIRST EFFECTIVE; AND
  (B)  ANY  DISPROPORTIONATE  BUDGETARY  EFFECTS  OF STATE MANDATES UPON
PARTICULAR INDUSTRIES OR SECTORS OF THE ECONOMY, REGIONS, AND  URBAN  OR
RURAL OR OTHER TYPES OF COMMUNITIES, AS APPROPRIATE.
  (3)  IN CONDUCTING A STUDY ON STATE MANDATES UNDER SUBPARAGRAPH ONE OF
THIS PARAGRAPH, THE DIRECTOR SHALL PROVIDE  ESTIMATES,  IF  AND  TO  THE
EXTENT  THAT  THE DIRECTOR DETERMINES THAT SUCH ESTIMATES ARE REASONABLY
FEASIBLE, OF:
  (I) FUTURE COSTS OF STATE MANDATES  ON  PRIVATE  SECTOR  ENTITIES  AND
LOCAL  GOVERNMENTS TO THE EXTENT THAT SUCH MANDATES DIFFER SIGNIFICANTLY
FROM OR EXTEND BEYOND THE FIVE-YEAR TIME PERIOD REFERRED TO IN ITEM  (A)
OF CLAUSE (III) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH;
  (II)  ANY  DISPROPORTIONATE  FINANCIAL EFFECTS OF STATE PRIVATE SECTOR
MANDATES AND OF ANY STATE FINANCIAL ASSISTANCE  IN  THE  BILL  OR  JOINT
RESOLUTION  UPON  ANY  PARTICULAR  INDUSTRIES OR SECTORS OF THE ECONOMY,
REGIONS, AND URBAN OR RURAL OR OTHER TYPES OF COMMUNITIES; AND
  (III) THE EFFECT OF STATE MANDATES IN THE BILL OR JOINT RESOLUTION  ON
THE ECONOMY OF THE STATE, INCLUDING THE EFFECT ON PRODUCTIVITY, ECONOMIC
GROWTH,  FULL  EMPLOYMENT, CREATION OF PRODUCTIVE JOBS, AND COMPETITIVE-
NESS OF GOODS AND SERVICES.
  9. THE LEGISLATIVE BUDGET OFFICE SHALL, FROM  TIME  TO  TIME,  PUBLISH
SUCH  REPORTS  AS  MAY BE APPROPRIATE TO ENHANCE THE OFFICIAL AND PUBLIC
UNDERSTANDING OF THE BUDGETARY PROCESS AND OF THE BUDGET DOCUMENTS. SUCH
OFFICE SHALL, FROM TIME TO TIME, PUBLISH SUCH REPORTS AS MAY  BE  NECES-
SARY  OR  APPROPRIATE  TO PROVIDE SUCH INFORMATION, DATA AND ANALYSIS AS
WILL ENHANCE OFFICIAL AND PUBLIC UNDERSTANDING OF  MATTERS  RELATING  TO
STATE REVENUES, EXPENDITURES, MANAGEMENT PRACTICES AND RELATED MATTERS.
  10.  ALL  INFORMATION, DATA, ESTIMATES AND STATISTICS, AND ALL STUDIES
AND REPORTS PREPARED BY THE LEGISLATIVE  BUDGET  OFFICE  SHALL  BE  MADE
AVAILABLE  TO  THE PUBLIC AND SHALL ALSO BE MADE AVAILABLE BY ELECTRONIC
MEANS TO THE EXTENT PRACTICABLE OVER THE INTERNET.
  11. NOTHING HEREIN SHALL BE CONSTRUED TO  REQUIRE  THE  DISCLOSURE  OF
INFORMATION  THAT  IS  OTHERWISE  PROTECTED  AS  CONFIDENTIAL  BY  OTHER
PROVISIONS OF STATE OR FEDERAL LAW.
  S 76.  DIRECTOR OF THE NEW YORK STATE LEGISLATIVE  BUDGET  OFFICE.  1.
THE NEW YORK STATE LEGISLATIVE BUDGET OFFICE SHALL BE HEADED BY A DIREC-
TOR  WHO  SHALL BE APPOINTED, FROM ONE OR MORE CANDIDATES RECOMMENDED BY
THE LEGISLATIVE BUDGET OFFICE  BOARD  OF  DIRECTORS  (ALSO  REFERRED  TO
INTERCHANGEABLY  AS THE "BOARD"), BY THE SPEAKER OF THE ASSEMBLY AND THE
TEMPORARY PRESIDENT OF THE SENATE. THE RECOMMENDATIONS FOR  THE  INITIAL
APPOINTMENT  OF  SUCH  DIRECTOR  SHALL  BE  MADE  NO  LATER THAN JANUARY
FIFTEENTH, TWO THOUSAND TWELVE  TO  THE  SPECIAL  COMMITTEE.  SUBSEQUENT
RECOMMENDATIONS  SHALL  BE  MADE  BETWEEN  JANUARY  SECOND  AND  JANUARY
FIFTEENTH EVERY SIXTH YEAR THEREAFTER. THE SPEAKER OF THE  ASSEMBLY  AND
TEMPORARY  PRESIDENT OF THE SENATE SHALL APPOINT THE INITIAL DIRECTOR NO
LATER THAN FEBRUARY FIFTEENTH, TWO  THOUSAND  TWELVE  AND  SUCH  INITIAL
DIRECTOR  SHALL  TAKE OFFICE BEGINNING APRIL FIRST, TWO THOUSAND TWELVE.
SUBSEQUENT APPOINTMENTS SHALL BE MADE NO LATER THAN  FEBRUARY  FIFTEENTH
EVERY SIXTH YEAR THEREAFTER.
  2.  (A)  THERE SHALL BE A LEGISLATIVE BUDGET OFFICE BOARD OF DIRECTORS
CONSISTING OF (1) ONE PERSON APPOINTED BY EACH OF  THE  FOLLOWING  OFFI-
CIALS  AND  WHO SHALL SERVE AT THE PLEASURE OF SUCH OFFICIALS; THE CHAIR
S. 4006                             4

AND RANKING MEMBER OF THE ASSEMBLY WAYS  AND  MEANS  COMMITTEE  AND  THE
CHAIR  AND  RANKING  MEMBER OF THE SENATE FINANCE COMMITTEE, AND (2) SIX
OTHER MEMBERS JOINTLY APPOINTED BY THE SPEAKER OF THE ASSEMBLY  AND  THE
TEMPORARY  PRESIDENT  OF THE SENATE, WHO SHALL SERVE FOR SIX YEAR TERMS,
PROVIDED, HOWEVER THAT OF THE MEMBERS FIRST APPOINTED, TWO  SHALL  SERVE
FOR  TERMS  EXPIRING  ON  MARCH THIRTY-FIRST, TWO THOUSAND THIRTEEN; TWO
SHALL SERVE FOR TERMS  EXPIRING  ON  MARCH  THIRTY-FIRST,  TWO  THOUSAND
FIFTEEN;  AND  TWO SHALL SERVE FOR TERMS EXPIRING ON MARCH THIRTY-FIRST,
TWO THOUSAND SEVENTEEN. THE MEMBERS SHALL ALL BE INDIVIDUALS WITH EXTEN-
SIVE EXPERIENCE AND KNOWLEDGE  IN  THE  FIELDS  OF  FINANCE,  ECONOMICS,
ACCOUNTING,  PUBLIC  ADMINISTRATION AND PUBLIC POLICY ANALYSIS INCLUDING
AT LEAST ONE NATIONALLY RECOGNIZED EXPERT IN THE FIELDS OF BUDGET THEORY
AND THE BUDGET PROCESS; ONE DEAN OR DIRECTOR OR FORMER DEAN OR  DIRECTOR
OF  A  GRADUATE  SCHOOL  OF  BUSINESS  ADMINISTRATION, PUBLIC AFFAIRS OR
PUBLIC ADMINISTRATION LOCATED IN NEW YORK STATE; ONE OFFICER  OR  FORMER
OFFICER  OR  ECONOMIC  ADVISOR  OF  A LABOR UNION; ONE OFFICER OR FORMER
OFFICER OR ECONOMIC ADVISOR TO A BUSINESS CORPORATION;  ONE  OFFICER  OR
FORMER  OFFICER  OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, ONE
OFFICER OR FORMER OFFICER OF A COUNTY; AND ONE OFFICER OR FORMER OFFICER
OF A CIVIC OR PUBLIC INTEREST ADVOCACY ORGANIZATION DIRECTLY INVOLVED IN
BUDGET MATTERS.  NO INDIVIDUAL SHALL SERVE CONSECUTIVE TERMS.
  (B) THE LEGISLATIVE BUDGET OFFICE BOARD  OF  DIRECTORS  SHALL  DEVELOP
GUIDELINES  FOR THE BEST PRACTICES OF THE LEGISLATIVE BUDGET OFFICE. THE
LEGISLATIVE BUDGET OFFICE BOARD OF DIRECTORS SHALL  MEET  ANNUALLY  WITH
THE  DIRECTOR  TO  REVIEW  SUCH  GUIDELINES  AND  TO  MAKE  COMMENTS AND
SUGGESTIONS ON THE OVERALL PRACTICES  OF  THE  OFFICE.    IN  DEVELOPING
GUIDELINES  FOR  BEST  PRACTICES,  SUCH STANDARDS SHALL BE IN COMPLIANCE
WITH STANDARDS PROMULGATED  BY  THE  GOVERNMENTAL  ACCOUNTING  STANDARDS
BOARD  OR  ANOTHER  COMPARABLE STANDARD SETTING ENTITY WHEN PRACTICABLE.
NOTHING IN THIS SECTION SHALL PRECLUDE THE BOARD FROM  USING  PRONOUNCE-
MENTS;  STANDARDS  AND  OTHER OTHER DOCUMENTS DEVELOPED AND PUBLISHED BY
ORGANIZATIONS THAT ARE  NATIONALLY  RECOGNIZED  AUTHORITIES  IN  MATTERS
PERTAINING  TO  PUBLIC  FINANCE EXCEPT THAT THE BOARD SHALL DEVELOP SUCH
BEST PRACTICES WITH  THE  INTENT  OF  COMPLYING  WITH  THE  GOVERNMENTAL
ACCOUNTING STANDARDS BOARD WHERE PRACTICABLE AND APPLICABLE.
  (C)  MEMBERS  OF  THE BOARD OF DIRECTORS SHALL RECEIVE NO COMPENSATION
BUT SHALL BE REIMBURSED FOR REASONABLE EXPENSES INCURRED  IN  CONNECTION
WITH THEIR DUTIES.
  3.  THE  DIRECTOR  OF THE LEGISLATIVE BUDGET OFFICE SHALL BE APPOINTED
WITHOUT REGARD TO POLITICAL AFFILIATION  AND  SOLELY  ON  THE  BASIS  OF
FITNESS  TO  PERFORM  THE  DUTIES  ASSIGNED BY THIS ARTICLE. THE TERM OF
OFFICE  OF  THE  DIRECTOR  FIRST  APPOINTED  SHALL  EXPIRE  ON  FEBRUARY
FIFTEENTH,  TWO  THOUSAND EIGHTEEN, AND THE TERMS OF OFFICE OF DIRECTORS
SUBSEQUENTLY APPOINTED SHALL EXPIRE ON SUCH  DATE  IN  EACH  SIXTH  YEAR
THEREAFTER.  ANY  INDIVIDUAL  APPOINTED  TO  FILL A VACANCY PRIOR TO THE
EXPIRATION OF A TERM SHALL SERVE ONLY FOR THE UNEXPIRED PORTION OF  SUCH
TERM.  AN  INDIVIDUAL  SERVING AS DIRECTOR AT THE EXPIRATION OF THE TERM
MAY CONTINUE TO SERVE UNTIL A SUCCESSOR  IS  APPOINTED.    ANY  DIRECTOR
SERVING CONSECUTIVE TERMS SHALL BE RECOMMENDED BY THE LEGISLATIVE BUDGET
OFFICE  BOARD  OF DIRECTORS AND APPOINTED BY THE SPEAKER OF THE ASSEMBLY
AND THE TEMPORARY PRESIDENT OF THE SENATE FOR THE SECOND TERM. NO DIREC-
TOR SHALL SERVE MORE THAN TWO TERMS CONSECUTIVELY.
  4. TWENTY PERCENT OF THE APPROPRIATIONS MADE TO THE  DIVISION  OF  THE
BUDGET  SHALL  BE  AVAILABLE  TO PAY FOR THE EXPENSES OF THE LEGISLATIVE
BUDGET OFFICE DURING EACH FISCAL YEAR BEGINNING WITH THE  FIRST  DAY  OF
APRIL  AFTER  THIS  SECTION SHALL HAVE BECOME A LAW. THE DIRECTOR OF THE
S. 4006                             5

LEGISLATIVE BUDGET OFFICE SHALL APPOINT SUCH PERSONNEL AND  PROCURE  THE
SERVICES  OF  SUCH  EXPERTS  AND  CONSULTANTS, WITHIN THE APPROPRIATIONS
AVAILABLE THEREFOR, AS MAY BE NECESSARY FOR SUCH DIRECTOR TO  CARRY  OUT
THE  DUTIES  AND  FUNCTIONS  ASSIGNED  PURSUANT  TO THIS ARTICLE.   SUCH
PERSONNEL AND EXPERTS SHALL PERFORM SUCH DUTIES AS MAY  BE  ASSIGNED  TO
THEM BY THE DIRECTOR.
  5.  THE  DIRECTOR  MAY  BE REMOVED BY EITHER A JOINT RESOLUTION OF THE
SENATE AND ASSEMBLY OR BY A VOTE OF SEVEN OUT  OF  TEN  MEMBERS  OF  THE
BOARD.
  6.  (A) THE DIRECTOR AND DEPUTY DIRECTOR SHALL RECEIVE COMPENSATION IN
AN AMOUNT TO BE DETERMINED PURSUANT TO A CHAPTER  OF  THE  LAWS  OF  TWO
THOUSAND ELEVEN.
  (B)  THE  DIRECTOR  SHALL  APPOINT  AND  FIX  THE COMPENSATION OF SUCH
PERSONNEL AS MAY BE NECESSARY TO CARRY OUT THE DUTIES AND  FUNCTIONS  OF
THE  OFFICE.  ALL  PERSONNEL  OF  THE  OFFICE SHALL BE APPOINTED WITHOUT
REGARD TO POLITICAL AFFILIATION AND SOLELY ON THE BASIS OF THEIR FITNESS
TO PERFORM THEIR DUTIES. THE  DIRECTOR  MAY  PRESCRIBE  THE  DUTIES  AND
RESPONSIBILITIES  OF  THE  PERSONNEL OF THE OFFICE, AND DELEGATE TO THEM
AUTHORITY TO PERFORM ANY OF THE DUTIES, POWERS, AND FUNCTIONS IMPOSED ON
THE OFFICE OR ON THE DIRECTOR. FOR PURPOSES OF PAY AND EMPLOYMENT  BENE-
FITS,  RIGHTS,  AND  PRIVILEGES,  ALL  PERSONNEL  OF THE OFFICE SHALL BE
TREATED AS IF THEY WERE EMPLOYEES OF NEW YORK STATE.
  7. THE DIRECTOR OF THE LEGISLATIVE BUDGET OFFICE SHALL HAVE ACCESS  AT
ALL  REASONABLE  TIMES  TO  OFFICES  OF  STATE DEPARTMENTS, COMMISSIONS,
BOARDS, BUREAUS AND OFFICES, TO INSTITUTIONS AND TO ALL  STATE  AUTHORI-
TIES  AND  PUBLIC  WORKS  OF  THE STATE AND THEY MAY, FOR THE PURPOSE OF
OBTAINING INFORMATION AS TO THE METHOD OF OPERATION, GENERAL  CONDITION,
MANAGEMENT  AND  NEEDS  THEREOF,  EXAMINE  THE  BOOKS, PAPERS AND PUBLIC
RECORDS THEREIN. NOTWITHSTANDING ANY OTHER PROVISION OF LAW  SUCH  STATE
DEPARTMENTS,  COMMISSIONS,  BOARDS,  BUREAUS,  DIVISIONS, OFFICES, STATE
AUTHORITIES AND OTHER INSTITUTIONS SHALL, THROUGH THEIR PROPER  OFFICERS
OR  DEPUTIES,  FURNISH  TO THE DIRECTOR SUCH DATA, INFORMATION OR STATE-
MENTS AS MAY BE NECESSARY FOR THE PROPER EXERCISE OF HIS OR  HER  POWERS
AND DUTIES AND FOR THE PURPOSE OF CARRYING INTO EFFECT THE PROVISIONS OF
THIS ARTICLE.
  8. FOR THE PURPOSES OF REVENUE LEGISLATION WHICH IS INCOME, ESTATE AND
GIFT, EXCISE, AND PAYROLL TAXES, CONSIDERED OR ENACTED IN ANY SESSION OF
THE  LEGISLATURE,  THE  LEGISLATIVE  BUDGET OFFICE SHALL CONSIDER DURING
THAT LEGISLATIVE SESSION REVENUE ESTIMATES PROVIDED TO IT BY THE  OFFICE
OF  THE  STATE  COMPTROLLER. DURING THAT SESSION OF THE LEGISLATURE SUCH
REVENUE ESTIMATES SHALL BE TRANSMITTED BY THE LEGISLATIVE BUDGET  OFFICE
TO  ANY  COMMITTEE  OF  THE ASSEMBLY OR THE SENATE REQUESTING SUCH ESTI-
MATES, AND SHALL BE USED BY SUCH COMMITTEES IN  DETERMINING  SUCH  ESTI-
MATES.  THE FISCAL COMMITTEES OF THE SENATE AND ASSEMBLY SHALL DETERMINE
ALL ESTIMATES WITH RESPECT TO THE EXECUTION  OF  THE  PURPOSES  OF  THIS
ARTICLE.    THIS SUBDIVISION SHALL NOT REQUIRE NOR PRECLUDE THE LEGISLA-
TIVE BUDGET OFFICE FROM USING ESTIMATES OF THE STATE COMPTROLLER IN  THE
CALCULATION OF THE REVENUE FORECAST AS STIPULATED IN SUBDIVISION FIVE OF
SECTION SEVENTY-FIVE OF THIS ARTICLE.
  S  2. Section 22 of the state finance law is amended by adding two new
subdivisions 17 and 18 to read as follows:
  17. DEVELOPMENT OF THE EXECUTIVE BUDGET SUBMISSION AND ENACTED BUDGET.
FOR FISCAL YEARS BEGINNING  ON  AND  AFTER  APRIL  FIRST,  TWO  THOUSAND
TWELVE,  THE EXECUTIVE BUDGET SUBMISSION AND THE ENACTED BUDGET COVERING
ALL EXPENDITURES OTHER THAN CAPITAL ITEMS SHALL BE PREPARED AND BALANCED
SO THE RESULTS THEREOF WOULD NOT SHOW A DEFICIT WHEN REPORTED IN ACCORD-
S. 4006                             6

ANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN SECTION
TWO OF THIS CHAPTER.
  18.  NOTWITHSTANDING  ANY  PROVISION  OF  LAW TO THE CONTRARY, BUDGETS
SUBMITTED PURSUANT TO THIS SECTION SHALL INCLUDE:
  A. A DESCRIPTION OF ALL OF  THE  EXPENDITURES  ESTIMATED  TO  BE  MADE
BEFORE  THE CLOSE OF THE CURRENT FISCAL YEAR AND ALL OF THE EXPENDITURES
PROPOSED TO BE MADE DURING THE ENSUING FISCAL YEAR, BOTH  IN  ACCORDANCE
WITH  GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN SECTION TWO
OF THIS CHAPTER; AND
  B. A DESCRIPTION OF ALL THE REVENUES ESTIMATED TO  ACCRUE  BEFORE  THE
CLOSE  OF  THE  CURRENT  FISCAL YEAR AND DURING THE ENSUING FISCAL YEAR,
INCLUSIVE OF ANY REVENUES WHICH ARE EXPECTED TO RESULT FROM THE PROPOSED
LEGISLATION WHICH THE  GOVERNOR  DEEMS  NECESSARY  TO  PROVIDE  RECEIPTS
SUFFICIENT TO MEET PROPOSED DISBURSEMENTS, ALL IN ACCORDANCE WITH GENER-
ALLY  ACCEPTED  ACCOUNTING  PRINCIPLES AS DEFINED IN SECTION TWO OF THIS
CHAPTER.
  S 3. Paragraph (a) of subdivision 2 of section 54 of  the  legislative
law,  as  added  by chapter 1 of the laws of 2007, is amended to read as
follows:
  (a) The legislature shall enact a budget for the upcoming fiscal  year
that  it  determines is balanced [in the] ON A general fund, STATE FUNDS
AND ALL FUNDS BASIS. THE LEGISLATURE SHALL MAKE  THIS  DETERMINATION  IN
ACCORDANCE  WITH  GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN
SECTION TWO OF THIS CHAPTER.
  S 4. Subdivision 2 of section 54 of the legislative law is amended  by
adding a new paragraph (d) to read as follows:
  (D)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW TO THE CONTRARY, BUDGETS
SUBMITTED PURSUANT TO THIS SECTION SHALL INCLUDE:
  (I) ALL OF THE EXPENDITURES ESTIMATED TO BE MADE BEFORE THE  CLOSE  OF
THE  CURRENT FISCAL YEAR AND ALL OF THE EXPENDITURES PROPOSED TO BE MADE
DURING THE ENSUING  FISCAL  YEAR,  BOTH  IN  ACCORDANCE  WITH  GENERALLY
ACCEPTED  ACCOUNTING  PRINCIPLES AS DEFINED IN SECTION TWO OF THIS CHAP-
TER; AND
  (II) A DESCRIPTION OF ALL OF THE REVENUES ESTIMATED TO  ACCRUE  BEFORE
THE CLOSE OF THE CURRENT FISCAL YEAR AND DURING THE ENSUING FISCAL YEAR,
INCLUSIVE OF ANY REVENUES WHICH ARE EXPECTED TO RESULT FROM THE PROPOSED
LEGISLATION  WHICH  THE  LEGISLATURE DEEMS NECESSARY TO PROVIDE RECEIPTS
SUFFICIENT TO MEET PROPOSED DISBURSEMENTS, ALL IN ACCORDANCE WITH GENER-
ALLY ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN SECTION  TWO  OF  THIS
CHAPTER.
  S  5.  Section  22 of the state finance law is amended by adding a new
subdivision 19 to read as follows:
  19. THE DIVISION OF THE BUDGET SHALL PREPARE THE  REPORTS,  SCHEDULES,
AND OTHER INFORMATION DESCRIBED BELOW IN THIS SUBDIVISION. TO THE EXTENT
PRACTICABLE,  SUCH  REPORTS,  SCHEDULES,  AND  INFORMATION SHALL BE IN A
FORM, AND PRESENTED AT A LEVEL OF DETAIL, THAT FACILITATES COMPARISON ON
AN ANNUAL BASIS AND AGAINST ACTUAL RESULTS, AS  APPROPRIATE,  AND  IN  A
MANNER  CONSISTENT  WITH  THE OTHER REPORTING REQUIREMENTS ENUMERATED IN
THIS SECTION. THE REPORTS, SCHEDULES, AND OTHER INFORMATION REQUIRED  BY
THIS  SUBDIVISION  SHALL BE SUBMITTED TO THE CHAIR OF THE SENATE FINANCE
COMMITTEE, THE CHAIR OF THE  ASSEMBLY  WAYS  AND  MEANS  COMMITTEE,  THE
MINORITY  LEADERS  OF  BOTH HOUSES, AND THE COMPTROLLER ACCORDING TO THE
SCHEDULES SET FORTH  IN  THIS  SUBDIVISION.  IN  DETERMINING  THE  FINAL
CONTENT  AND  FORMAT  OF  THE  INFORMATION REQUIRED BY THIS SECTION, THE
DIVISION SHALL CONSULT ANNUALLY WITH THE  DIRECTOR  OF  THE  LEGISLATIVE
BUDGET  OFFICE,  THE DESIGNEES OF THE TEMPORARY PRESIDENT OF THE SENATE,
S. 4006                             7

THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADERS OF  BOTH  HOUSES,  AND
THE  COMPTROLLER. ALL INFORMATION DESCRIBED IN THIS SUBDIVISION SHALL BE
MADE AVAILABLE TO THE PUBLIC.
  A.  THE SUMMARY FINANCIAL PLAN SUBMITTED BY THE GOVERNOR TO THE LEGIS-
LATURE, IN ADDITION TO THE INFORMATION DESCRIBED IN SUBDIVISION  ONE  OF
THIS SECTION, SHALL INCLUDE:
  (1)  A  SCHEDULE  OF  RECEIPTS  FOR  THE PRIOR, CURRENT, AND NEXT FIVE
FISCAL YEARS. SUCH SCHEDULE SHALL PRESENT THE MAJOR REVENUE SOURCES  FOR
EACH  FUND,  INCLUDING DETAIL FOR EACH MAJOR TAX AND MAJOR COMPONENTS OF
MISCELLANEOUS RECEIPTS.
  (2) A DESCRIPTION OF EMPLOYMENT  LEVELS  FOR  EACH  STATE  DEPARTMENT,
DIVISION  OR OFFICE FOR THE PRIOR, CURRENT, AND NEXT ENSUING FISCAL YEAR
CONTAINING (A) SEPARATE SCHEDULES FOR EACH FUND  TYPE  AND  (B)  AN  ALL
FUNDS SUMMARY. SUCH INFORMATION SHALL BE PRESENTED IN A FORM THAT FACIL-
ITATES  COMPARISONS  AMONG  AGENCIES  AND ACROSS FISCAL YEARS, AND SHALL
INCLUDE (I) ACTUAL AND PROJECTED FULL-TIME EQUIVALENTS AND (II) PROPOSED
CHANGES TO THE WORKFORCE IN THE EXECUTIVE BUDGET,  INCLUDING  NEW  POSI-
TIONS,  LAYOFFS,  ATTRITIONS,  AND  CHANGES  IN  FUNDING SOURCES. TO THE
EXTENT PRACTICABLE, THE DIVISION OF  THE  BUDGET  SHALL  FACILITATE  THE
PROVISION OF OTHER RELEVANT INFORMATION ON EMPLOYMENT TO THE LEGISLATURE
IN A TIMELY MANNER DURING THE STATE FISCAL YEAR.
  B.  THE EXECUTIVE BUDGET, THE ENACTED BUDGET REPORT AND EACH QUARTERLY
UPDATE TO THE FINANCIAL PLAN SHALL INCLUDE THE FOLLOWING INFORMATION, IN
ADDITION TO THE INFORMATION REQUIRED ELSEWHERE IN THIS SECTION AND OTHER
SECTIONS OF LAW.
  (1) AN UPDATED GENERAL FUND FORECAST OF RECEIPTS AND DISBURSEMENTS FOR
THE CURRENT AND FIVE SUCCEEDING  FISCAL  YEARS.  SUCH  UPDATED  FORECAST
SHALL  CLEARLY  IDENTIFY  AND  EXPLAIN THE REVISIONS TO THE RECEIPTS AND
DISBURSEMENTS PROJECTIONS FROM THE  MOST  RECENT  PRIOR  UPDATE  TO  THE
FINANCIAL  PLAN, AND ANY SIGNIFICANT REVISIONS TO THE UNDERLYING FACTORS
AFFECTING RECEIPTS AND DISBURSEMENTS BY MAJOR FUNCTION, AND MAY INCLUDE,
BUT NOT BE LIMITED TO: CASELOAD, SERVICE, AND UTILIZATION  RATES;  DEMO-
GRAPHIC TRENDS; ECONOMIC VARIABLES; PENSION FUND PERFORMANCE; INCARCERA-
TION   RATES;  PRESCRIPTION  DRUG  PRICES;  HEALTH  INSURANCE  PREMIUMS;
INFLATION; CONTRACTUAL OBLIGATIONS;  LITIGATION;  AND  STATE  EMPLOYMENT
TRENDS.
  (2)  A  REVISED  MONTHLY GENERAL FUND CASH FLOW PROJECTION OF RECEIPTS
AND DISBURSEMENTS FOR THE CURRENT FISCAL YEAR THAT (A)  COMPARES  ACTUAL
RESULTS TO (I) ACTUAL RESULTS THROUGH THE SAME PERIOD FOR THE PRIOR YEAR
AND  (II)  THE MOST RECENT PRIOR UPDATE TO THE FINANCIAL PLAN AND TO THE
ENACTED BUDGET FINANCIAL PLAN, (B) SUMMARIZES THE REASONS FOR ANY  VARI-
ANCES, AND (C) DESCRIBES THE REVISIONS TO THE CASH FLOW PROJECTIONS. THE
MONTHLY GENERAL FUND CASH FLOW PROJECTION SHALL BE STATED BY MAJOR CATE-
GORY OF LOCAL ASSISTANCE, PERSONAL SERVICE, NONPERSONAL SERVICE, GENERAL
STATE CHARGES, AND DEBT SERVICE, AND BY MAJOR CATEGORY OF REVENUE.
  C.  THE  CAPITAL  PROGRAM  AND  FINANCING  PLAN  SUBMITTED PURSUANT TO
SECTION TWENTY-TWO-C OF THIS ARTICLE, AND THE  UPDATE  THERETO  REQUIRED
PURSUANT TO SECTION TWENTY-THREE OF THIS ARTICLE, SHALL INCLUDE A REPORT
ON  THE MANAGEMENT OF STATE-SUPPORTED DEBT. SUCH REPORT MAY INCLUDE, BUT
IS NOT LIMITED TO: (1) AN ASSESSMENT OF THE AFFORDABILITY OF STATE DEBT,
INCLUDING DEBT AS A PERCENT OF PERSONAL INCOME,  DEBT  PER  CAPITA,  AND
DEBT  SERVICE COSTS AS A PERCENT OF THE BUDGET, (2) A SUMMARY AND ANALY-
SIS OF THE INTEREST RATE EXCHANGE AGREEMENTS AND VARIABLE RATE EXPOSURE,
AND (3) AN ASSESSMENT OF FINANCING OPPORTUNITIES RELATED TO THE  STATE'S
DEBT PORTFOLIO.
  S 6. This act shall take effect immediately.