Prohibits increase in state general fund spending in any fiscal year following a fiscal year in which the state has a surplus

BILL NUMBER:S3883

Title of bill

An act to amend the state finance law, in relation to establishing a state expenditure limitation for certain state fiscal years

Purpose

This legislation prohibits increase in state general fund spending in any fiscal year following a fiscal year in which the state has a surplus.

Summary of provisions

Section One - amends the state finance law by adding a new section 22-d. 22-d spending limitation. In any fiscal year that immediately follows a fiscal year in which the cash surplus from the general fund was transferred to the tax stabilization reserve fund pursuant to section ninety-two of this chapter, the governor shall not submit, and the legislature shall not act upon, a budget in which state spending in such fiscal year exceeds the amount of spending in the immediately prior fiscal year in which such surplus occurred. For purposes of this section, state spending shall now include amount appropriated to or distributed from any fund of the state other than the general fund.

Section Two - This act shall take effect immediately and shall apply to state fiscal years beginning on and after April 1, 2014.

Justification

This legislation will prohibit an increase in the state general fund spending in any fiscal year following a fiscal year in which the state has surplus.

Legislative history

05/02/12 Referred to finance

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.