Places limitations on the amount of money that the governor may propose to spend in a given fiscal year; repealer

3 Co-sponsors

• Dean G. Skelos
• Joseph E. Robach
• John A. DeFrancisco

Title of bill

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment to article 7 of the constitution, in relation to limiting the growth on New York state disbursements and creating a revenue stabilization tax reduction and debt repayment fund; repealing section 17 of article 7 of the constitution relating to authorizing the establishment of a fund to aid in the stabilization of tax revenues

Purpose

The purpose of this legislation is to ensure state fiscal discipline by constitutionally limiting the percentage of growth from fiscal year to fiscal year in the state's budget.

Summary of provisions

Section 1 amends Article VII, by creating a new Section 7-a which limits state fiscal year spending to the preceding year's spending plus the product of the preceding years spending the lesser of 120% of the inflation rate or 4%. Section 2 repeals Section 17 of Article VII and adds a new Section 17 which requires revenues in excess of the state spending limitation be deposited into the tax stabilization reserve fund. The remainder of the revenues are to be returned to New York resident taxpayers in proportion to their personal income tax liability.

Existing law

Presently, there are no limitations as to how much state spending may increase from year to year.

Justification

By all measures, the tax burden on New Yorkers is among the highest in the nation. Unchecked growth in spending from one fiscal year to the next serves only to increase the tax burden on New Yorkers. By limiting the amount of annual growth in the state's budget, New York can check the growth of government and the attendant tax burden on its citizens.

Legislative history

New legislation.

Fiscal implications

Savings to the state from an improved state budget process.

Local fiscal implications

None.

Effective date

Resolved (if the Assembly concur), That the foregoing amendments be referred to the first regular legislative session convening after the next succeeding general election of members of the assembly, and, in conformity with section 1 of article 19 of the constitution, be published for 3 months previous to the time of such election.