S6275-2011 Actions

• Jan 19, 2012: REFERRED TO FINANCE

S6275-2011 Memo

BILL NUMBER:S6275

TITLE OF BILL:
An act
to amend the executive law, in relation to a prohibition on diversion of
resources from dedicated funds derived from taxes and fees that support
the Niagara frontier transportation authority and its subsidiaries in
certain instances

PURPOSE:
To prohibit the diversion of funds dedicated for the
NFTA.

SUMMARY OF SPECIFIC PROVISIONS:
Adds a new section 183 to the
executive law prohibiting the diversion of funds dedicated to the
Niagara Frontier transportation Authority and its subsidiaries to the
general fund.

Establishes procedures and action on requests for diversions of funds
during certain periods and circumstances.

JUSTIFICATION:
The NFTA's budget deficit is caused by' converging
fiscal constraints, outside of the Authority's control. The state's
economic climate has significantly decreased the NFTA's annual state
transit operating assistance (STOA) while at the same time adversely
impacting health care insurance costs, workers compensation costs,
and mortgage recording tax levels. The NFTA's current STOA level is
$4.3 million less than the amount proposed in the 2008-2009 executive
budget. While dedicated funding sources are decreasing,
responsibilities and needs are steadily increasing. The NFTA is New
York State's second largest transit provider, and the only upstate
entity with a light rail system. The NFTA serves over 27 million
annual Metro passengers, operates two growing airports, manages 2,000
acres of real estate in Erie and Niagara Counties, as well as the
state's largest boat marina. The cost of these comprehensive
services, and maintenance of an aging transit fleet, simply exceeds
the current level of revenues and assistance received at every level
of government.

The NFTA has taken extensive steps to cut costs and increase revenues
in each business center, the same year that STOA reductions began.
However, internal measures alone will not erase the deficit.
Protection of annual STOA, in addition to further cost savings and
generation of new revenues, is necessary. The NFTA employs over
1,600 people, connects millions of people to employment, and links
the local Western New York economy to the rest of the country and the
world. Predictable funding is needed to sustain the NFTA's services
and its positive impact on the region and the entire state.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.


EFFECTIVE DATE:
Immediately.

S6275-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         6275
 I N  SENATE
 January 19, 2012
 
 Introduced  by  Sens.  GRISANTI,  MAZIARZ, RANZENHOFER -- read twice and
 ordered printed, and when printed to be committed to the Committee  on
 Finance
 AN  ACT  to  amend  the  executive  law, in relation to a prohibition on
 diversion of resources from dedicated funds  derived  from  taxes  and
 fees  that  support  the Niagara frontier transportation authority and
 its subsidiaries in certain instances
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The executive law is amended by adding a new section 183 to
 read as follows:

 

S  183. DIVERSION OF FUNDS DEDICATED TO THE NIAGARA FRONTIER TRANSPOR
 TATION AUTHORITY AND ITS SUBSIDIARIES TO THE GENERAL FUND OF  THE  STATE
 IS PROHIBITED. 1. THE DIRECTOR SHALL BE PROHIBITED FROM DIVERTING REVEN
 UES DERIVED FROM TAXES AND FEES PAID BY THE PUBLIC INTO ANY FUND CREATED
 BY LAW INCLUDING, BUT NOT LIMITED, TO SECTION NINETY-NINE-H OF THE STATE
 FINANCE LAW, AS AMENDED BY CHAPTER SEVEN HUNDRED FORTY-SEVEN OF THE LAWS
 OF  TWO  THOUSAND  SIX,  FOR THE PURPOSE OF FUNDING THE NIAGARA FRONTIER
 TRANSPORTATION AUTHORITY AND ANY OF ITS SUBSIDIARIES  INTO  THE  GENERAL
 FUND  OF  THE STATE OR INTO ANY OTHER FUND MAINTAINED FOR THE SUPPORT OF
 ANOTHER GOVERNMENTAL PURPOSE. NO DIVERSION OF FUNDS CAN  OCCUR  CONTRARY
 TO  THIS  SECTION  BY AN ADMINISTRATIVE ACT OF THE DIRECTOR OR ANY OTHER
 PERSON IN THE EXECUTIVE BRANCH BUT CAN OCCUR ONLY UPON A STATUTE ENACTED
 INTO LAW AUTHORIZING A DIVERSION THAT WOULD OTHERWISE BE  PROHIBITED  BY
 THIS SECTION.
 2. IF ANY DIVERSION OF FUNDS OCCURS BY PASSAGE OF LEGISLATION DURING A
 REGULAR  OR  EXTRAORDINARY  SESSION  OF  THE  LEGISLATURE, THE BUDGET OR
 LEGISLATION DIVERTING FUNDS SHALL INCLUDE A DIVERSION  IMPACT  STATEMENT
 WHICH INCLUDES THE FOLLOWING INFORMATION:

 (A) THE AMOUNT OF THE DIVERSION FROM DEDICATED FUNDS;
 (B) THE AMOUNT DIVERTED FROM EACH FUND;
 (C) THE AMOUNT DIVERTED EXPRESSED AS CURRENT MONTHLY FARES;
 (D) THE CUMULATIVE AMOUNT OF DIVERSION FROM DEDICATED FUNDS DURING THE
 PRECEDING FIVE YEARS;
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13949-01-2
 
       S. 6275                             2
 (E) THE DATE OR DATES WHEN THE DIVERSION IS TO OCCUR; AND
 (F)  A  DETAILED  ESTIMATE  OF  THE IMPACT OF DIVERSION FROM DEDICATED
 FUNDS WILL HAVE ON THE LEVEL  OF  TRANSPORTATION  SERVICE,  MAINTENANCE,
 SECURITY, AND THE CURRENT CAPITAL PROGRAM.
 

S 2. This act shall take effect immediately.

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!