Relates to the administration of certain funds and accounts related to the 2011-2012 budget

7 Co-sponsors

• Patrick M. Gallivan
• Greg Ball
• George D. Maziarz
• Catharine Young
• Patty Ritchie
• Thomas F. O'Mara
• Jack M. Martins

BILL NUMBER:S5921

Title of bill

An act to amend part BB of chapter 58 of the laws of 2011 providing for the administration of certain funds and accounts related to the 2011-2012 budget, in relation to making technical corrections thereto

Purpose

To bar the transfer of funds from any account contingent upon a matching requirement for the receipt of federal revenues.

Summary of provisions

Section 1 of the bill amends sections 12, 12-1 and 13 of part BB of the Article VII budget bill for Education, Labor and Family Assistance to eliminate the authorization allowing the Director of the Budget to transfer any unencumbered balance from any fund contingent upon a matching requirement necessary for the receipt and expenditure of federal funds.

Section 2 provides for an immediate effective date.

Existing law

Chapter 58 of the laws of 2011 provided for the transfer of up to $575 million in unencumbered funds from any special revenue fund to the general fund, and up to $38 million to the community projects fund. However, transfers from federal funds, capital projects funds, debt service funds or the community projects fund were exempted from this authorization.

These transfers were authorized to provide up to $613 million in budget support for SFY 2011-12.

Justification

The enacted Education, Labor and Family Assistance budget bill authorizes the Director of the Budget to transfer excess balances over what is needed to cover encumbrances for the expenditure of State receipts from special revenue funds such as the Conservation Fund without limitation. An unintended consequence of Part BB of Chapter 58 is that certain federal funds that New York is eligible for use in this and future fiscal years that are tied to fund balances in certain accounts or combination of accounts have been placed at risk by the blanket transfer authorization. Of immediate concern is the imminent loss of $9.13 million in federal Dingell-Johnson Sport Fish Restoration Act funds and $11.22 million in federal Pittman-Robertson Wildlife Restoration funds. The United States Fish and Wildlife Service has notified the Department of Environmental Conservation that, without a statutory change to the budget transfer authorization, the State is at imminent risk of losing these federal resources.

These two, and similarly structured, federal programs require a guaranteed state matching requirement. The New York State Conservation Fund balance serves as the match guarantee for the Dingell-Johnson and Pittman-Robertson. Without enactment of this

legislation, New York will forfeit these and many other vital federal resources.

This bill would ensure that these essential assets remain available for the needs of the citizens of the State.

Legislative history

New bill.

Fiscal implications

Maintenance of at least tens of millions of dollars in federal receipts for the current fiscal year. None to state funds since sufficient authorized unencumbered fund balances will remain to reach the expressed budget targets.

Local fiscal implications

Failure of enactment of this bill will result in at least tens of millions in federal dollars that will not flow to local jurisdictions through Aid to Locality payments.

Effective date

Immediately and deemed to be in full effect as of the effective date for part BB of Chapter 58 of the laws of 2011.