Relates to limiting unfunded mandates

Title of bill

An act to amend the general municipal law and the education law, in relation to limiting unfunded mandates

Purpose or general idea of bill

Prohibits the imposition of unfunded mandates upon local governments and school districts above .01% of any local government's or school district's budget, or above $10 million to all local governments or school districts within the state.

Summary of specific provisions

Section one of the bill would amend the General Municipal Law to create a new section 25. Section 25(1) would define "mandate," "unfunded mandate" and "net additional cost" in relation to unfunded mandates. These would include state laws, rules and regulations, and executive orders or guidelines. Section 25(2) would provide that no unfunded mandate can create (i) an annual net cost to any local government in excess of .01% of its annual operating budget or (ii) an aggregate annual net additional cost to all municipal corporations within the state in excess of $10 million. Section 25(3) would require that the effective date of any mandate must be fixed after considering the planning time and available funding to comply with the mandate.

Section two of the bill would amend the Education Law in parallel fashion to create a new section 308-a. Section 308-a (1) would define "mandate," "unfunded mandate" and "net additional cost" in relation to unfunded mandates. Section 308-a (2) would provide that no unfunded education mandate can create (i) an annual net cost to any school district in excess of .01% of its annual operating budget or (ii) an aggregate annual net additional cost to all school district within the state in excess of $10 million. Section 308-a (3) would require the effective date of any mandate to be fixed after considering the planning time and available funding to comply with the mandate.

Exceptions: home rule requests; requirements of federal law; public safety executive orders; legislation creating a local option to provide a service.

Justification

Unfunded mandates are program directives to local governments that come from the state government without any financial assistance with which to implement or administer them. These mandates pose serious problems for local governments because they place an added strain on local budgets and threaten other funding sources for existing programs and services. State-imposed unfunded mandates cripple local governments throughout the state, driving-up the costs of living in New York State. They force local governments to cut existing services or to raise taxes to cover their additional costs. This constitutional amendment will force Albany to better consider how it passes along costs to local governments, following the example of some other states through the country have given similar constitutional protection to local governments.

Prior legislative history

This is a new bill.

Fiscal implications

Unknown.

Effective date

Immediately.