Provides for emergency appropriation for the period April 1, 2010 through May 20, 2010

Section 2 appropriates an additional $160.4 million for the personal service payments scheduled to be made to State officers and employees through May 20, 2010, including payments for officers and employees of the Legislature and Judiciary, statewide elected officials and elected members of the Legislature; payments for services performed by mentally ill or developmentally disabled persons who are employed in State-operated special employment, work-for-pay or sheltered workshop programs; and, as appropriate, lump sum payments, advances, awards and longevity increases.

It should be noted that the sudden and significant loss of revenue to the State that began in 2008 has created a cash flow and deficit crisis that cannot be resolved absent extraordinary and broad-based measures to control State spending. This emergency spending budget bill provides for the first of an expected series of one-day furloughs for certain Executive Branch employees during the week commencing May 17, 2010.

Employees within the Executive Branch of government, including employees of the CUNY senior colleges, would be subject to a work week reduction of 20%. A commensurate reduction would be made to the employee's salary. Those employees who have been designated managerial/confidential, or who serve in positions fully funded by the federal government are exempt. Agency heads are authorized to exempt additional employees, based on their involvement in direct care or other duties necessary for the preservation of health and safety. The furlough would not apply to those subject to a negotiated agreement providing comparable personal savings.

This furlough addresses a necessary component of the Governor's financial plan to bring the State's finances into balance for State Fiscal Year 2010-11, and is needed to ensure the State has sufficient cash flow in the absence of an enacted budget. To respond to the severe fiscal crisis facing the State, the Governor's Executive Budget, submitted to the Legislature on January 19, proposed measures to close a $7.4 billion dollar deficit through $5 billion in broad-based spending reductions, including $250 million from state workforce savings, and $995.2 million in revenue and fee enhancements. Just weeks after the Governor's budget submission, the concensus revenue forecast agreed to between the Executive and the Legislature on March 1, 2010 estimated an additional $850 million decrease in State revenues in FY 2010-11. Subsequently, the Governor submitted a plan that included additional gap closing measures on April 27.

Achieving a balanced budget and maintaining adequate cash availability is a matter of overriding state concern, necessary to ensure that the State preserves both short and long-term fiscal stability and economic vitality. The furlough that would be enacted by this legislation is an essential part of a wide-ranging effort to curtail and delay expenditures so as to ensure that the State addresses the current fiscal crisis, and has sufficient funds to meet its obligations. Moreover, in the absence of an enacted budget, savings measures like this present the only means for the state to address these concerns.

Section 3 appropriates an additional $15.7 million to pay to the social security contribution fund the payroll taxes relating to the personal service payments specified above.

Section 4 appropriates an additional $1,000 to make payments to the Teachers Insurance and Annuity Association/College Retirement Equities Fund.

Section 5 appropriates an additional $2 million for nonpersonal service payments by the Judiciary.

Section 6 appropriates an additional $20 million for nonpersonal service payments by various State agencies including the Legislature.

Section 7 appropriates $90 million for capital projects funded by the American Recovery and Reinvestment Act of 2009, as follows:

* $10 million is added, for a total appropriation of $50 million, for transportation-related capital construction contracts approved prior to April 1, 2010 to allow payment of liabilities incurred through May 16, 2010.

* $40 million is continued for the approval of new transportation related capital construction contracts for projects from April 1, 2010 through May 16, 2010.

Section 8 continues $20 million for the approval of capital construction projects for emergency health and safety purposes from April 1, 2010 to May 16, 2010.

Section 9 appropriates $65 million to the Department of Transportation as follows:

* $40 million is continued for the payment of the Federal share of transportation capital contracts, excluding liabilities funded by the American Recovery and Reinvestment Act of 2009, approved prior to April 1, 2010, to allow payment of:

--liabilities incurred through May 16, 2010 for projects without a State funding share; and

--liabilities incurred April 1, 2010 through April 11, 2010 for projects with bond eligible State funding shares.

* An appropriation in the amount of $20 million is provided for the payment of the Federal share of transportation capital contracts that do not have any State funding shares and are approved between April 1, 2010 and May 16, 2010, excluding liabilities funded by the American Recovery and Reinvestment Act of 2009.

* An appropriation in the amount of $5 million is provided for the payment of non-State shares of transportation capital contracts approved prior to April 1 and funded through deposits in the Miscellaneous New York State Agency Fund - Highway Costs Improvement Accounts, to allow payment of liabilities incurred through May 16, 2010.

Section 9-a appropriates $5 million for payment of bond-eligible state shares of transportation capital contracts and construction inspection contracts approved prior to April 1, 2010, to allow payment of liabilities incurred from April 1, 2010 through April 11, 2010, only to the extent bond proceeds are available.

Section 10 appropriates an additional $1.45 billion for payments to providers participating in the Medical Assistance Program, and appropriates an additional $40 million for payments to providers participating in the Child Health Insurance Program.

Section 11 provides an additional $195 million to the Department of Labor for Unemployment Insurance benefits to claimants.

Section 12 appropriates $60 million to the Office of Temporary and Disability Assistance for Supplemental Security Income (SSI) payments.

Section 13 appropriates $2.0 million for Family Care services. This Medicaid funding is supported directly by OMRDD and funds 1,100 families supporting over 2,000 individuals.

Section 14 prohibits expenditures from all appropriations until certificates of approval have been issued by the Director of the Budget and filed with certain State officers.

Section 15 requires the Comptroller to transfer any expenditures made against these appropriations to the 2010-11 Budget appropriations after they have become law.

Section 16, the severability clause, provides that if any part of this Act be adjudged by any court of competent jurisdiction to be invalid, such judgment would not invalidate the remainder of the Act.

Section 17 provides that the bill takes effect immediately and is deemed to be in full force and effect on April 1, 2010, and, further, that the appropriations made in the bill will be deemed repealed upon the transfer of expenditures by the Comptroller pursuant to section fourteen of the bill.

Statement in support

This bill will allow the State to make certain payments and incur certain liabilities during the period April 1 through May 16, 2010 on a timely basis, in the absence of an enacted budget for State fiscal year 2010-11.

Budget implications

Expenditures and disbursements made against these appropriations shall, upon final action by the Legislature on the appropriation bills submitted by the Governor for the support of government for the State fiscal year beginning April 1, 2010, be transferred by the Comptroller as expenditures and disbursements to such appropriations for State departments and agencies, the Legislature and the Judiciary. Accordingly, this bill will have no additional impact on the State's 2010-11 Financial Plan.

Effective date

Immediately, with provisions.