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History
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Authorizes the director of the budget to reduce payment of all or part of any appropriation for fiscal year 2009-2010 upon certification
In Senate Committee · Rules
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A40017
Title of bill
An act to authorize the director of the budget to reduce payment of all or part of certain appropriations; and providing for the repeal of such provisions upon expiration thereof
Purpose of the bill
This bill would make clear that the Director of the Budget may direct reduction of payment of appropriated funds in an amount not to exceed that which is necessary to ensure that expenditures do not exceed anticipated receipts in fiscal year 2009-10.
Read the full memo (631 words)
Summary of provisions of the bill
Section 1 of the bill authorizes the Director of the Budget, in addition to any authority otherwise provided by law and upon approval of the Governor, to direct reduction of payment of all or part of any appropriation for Fiscal Year 2009-10, provided that such reductions are uniformly applied to the extent practicable and are in an amount that does not exceed the amount necessary to reduce estimated annual state disbursements to estimated annual receipts expected to be available in such fiscal year. Such direction may be exercised notwithstanding any other provision of law, except that it shall not apply to any funds appropriated for the payment of debt service and related expenses, funds appropriated pursuant to a collective bargaining agreement, and any payment required by federal law or the United States or New York Constitution. It is the intent of this section that any direction to deny payment shall relieve the State of any future liability for such payment.
Section 2 of the bill provides that it would be effective immediately, and would expire and be deemed repealed on December 31, 2009.
Existing law
The New York State Finance Law allows the Director of the Budget to manage the State's cash flow and expenditures, including the following provisions:
New York State Finance Law § 42 provides that amounts appropriated in any act shall be deemed to be only for so much as necessary to fulfill the purposes of such act.
New York State Finance Law § 49 provides that no lump sum appropriations for personal service, or for maintenance and operation or for non-personal service, or for maintenance undistributed including personal service, other than appropriations for the legislature or judiciary, and appropriations from proprietary or fiduciary funds, shall be available for payments for personal service, or maintenance and operation or for non-personal service, or maintenance undistributed including personal service until approved by the Director of the Budget.
Statement in support
In FY 2009-10, a mid-year deficit has developed in the State budget, now reaching $3.2 billion. No legislation has been enacted, however, that would address this gap. As a result of this shortfall, the State faces the genuine threat that it will run out of money, and as a result will not be able to pay its obligations. Moreover, traditional mechanisms for securing the funds necessary to run the State may not be available.
The State needs a formal process to address this eventuality. This bill would set forth such a process, under which the Legislature would specifically condition existing appropriations for the present fiscal year on the Governor's ability to direct denial of payment thereon solely to the extent necessary to ensure that disbursements do not exceed anticipated receipts. This would allow the State to prepare for and protect against the devastating impact of the State Treasury running out of cash, with no available stream of funds to replace it. This legislation will be in addition to the financial management tools in existing law.
Budget implications
This bill would allow the State to reduce expenditures and liabilities in the current fiscal year, so as to address the current year deficit in an orderly fashion.
Effective date
This bill would be effective immediately, and would expire and be deemed repealed December 31, 2009.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.