Creates an independent budget office to provide various offices with information which will assist in the discharge of responsibilities related to the budgetary process

Title of bill

An act to amend the state finance law, in relation to creating an independent budget office to provide various offices with information which will assist in the discharge of responsibilities related to the budgetary process

Purpose

Creates an Independent Budget Office to provide budget related information to the legislature, render revenue forecast reports to the legislature and governor, and provide assistance in determining the fiscal impact of proposed legislation.

Summary of provisions

Creates a new Article 17 of the State Finance Law to establish a New York State Independent Budget Office. A six member advisory board consisting of experts in the fields of finance, economics, accounting, and public administration, would appoint the director of the office. The director would be appointed without regard to political affiliation, hold no other public office while serving as director, and be appointed to a four year term. The office would: a) provide information to the legislature with respect to the state budget, appropriation bills and other bills providing budget authority or tax expenditures; b) examine and review all financial information of the state for the purpose of rendering revenue estimates used in determining whether any proposed state budget is balanced; c) be charged with the duty of rendering anticipated revenue forecast reports to the legislature and the governor for the purposes of facilitating passage of the state budget in a timely manner; and d) provide assistance in determining the fiscal impact of proposed legislation.

Existing law

None.

Justification

A nonpartisan Independent Budget Office (IBO) should be created in order to provide objective analysis of the state's budget and fiscal situation. Modeled on the Congressional Budget Office (CBO) and New York City's Independent Budget Office, the mission of the IBO will be to provide budget, economic and policy analysis for the residents of the state and its elected officials. The IBO will increase the legislature's and public's understanding of the budget and how it affects New Yorkers.

Currently, the majority and minority parties of each house of the legislature as well as the governor have a fiscal and budget staff to provide them insight into the financial matters of the state. These partisan offices provide information solely to their respective membership. This costly and duplicative process entrenches the parties and reinforces their positions. Rather than using unbiased figures, each house uses its numbers to the advantage of their priorities and at the expense of their adversaries. The result has been a protracted budget debate where positions are staked and compromise is limited. A single nonpartisan budget office will ameliorate the situation and provide all the members with raw data which they can utilize in shaping a policy debate among their colleagues.

Legislative history

Introduced as S.7861 in 2005. Introduced as S.1157 in 2007

Fiscal implications

Negligible.

Local fiscal implications

None.

Effective date

This act shall take effect immediately.