Restricts the imposition of unfunded mandates on local governments

Summary of specific provisions

Amends the Legislative Law by adding a new section 51-a that provides as follows:

*Defines "political subdivision" and "qualifying bill".

*Prohibits the legislature from passing any bill - except those explicitly exempted - that establishes a state program, significantly changes services required to be provided by such program, or results in a change in revenues or expenses of a political subdivision, if the direct impact of the bill exceeds $10,000 per year for any subdivision or $100,000 if more than one subdivision is affected, unless the bill provides for state reimbursement to the affected political subdivision for reasonable and necessary costs of complying with the mandates that bill imposes.

*Requires the state to include in bills subject to this section an initial appropriation to cover the costs of implementation for the current fiscal year, and to include funding for continuing programs in the budget for subsequent fiscal years.

*Exempts from the new section certain categories of bills, including:

-bills required to comply with federal laws or rules or to meet eligibility standards for federal entitlements;

-bills similarly affecting both government and non-government entities;

-bills concerning only optional programs or services; budget bills submitted by the Governor pursuant to Article XII of the state constitution, so long as they do not impose any new mandates which, if taken by themselves, would be subject to the restrictions of the new section

-bills that repeal, revise or ease an existing mandate, or reapportion the costs of activities among local entities; bills that stem from failure to comply with previously enacted laws or rules;

-bills arising from court rulings or from executive orders of the governor exercising emergency powers;

-bills that implement the state's constitution;

-bills which are enacted after a public hearing wish a fiscal analysis, held after public notice that unfunded mandates will be considered, in addition to complying with all other requirements with regard to the enactment of law, are passed by a 3/5 vote of both the Senate and Assembly;

-and lastly, bills that are the result of a passage of a home rule message.

Justification

New York imposes numerous program and service requirements on local governments without fully considering the fiscal impacts. These unfunded mandates require localities already experiencing economic hardship to provide new or significantly expanded programs and services without the funding necessary to carry out these mandates. Arguably, the State is better able to finance any new program than are local governments, because of its broader and more equitable tax base, which draws on the income wealth of the entire State. In contrast, local governments rely heavily on burdensome property taxes and regressive sales taxes. Moreover, the State is equipped to utilize cost containment measures and economies of scale.

Bills that have an impact of more than $10,000 per year on one locality, or more than $100,000 in total, should in general include an appropriation to cover reasonable and necessary costs of compliance. In this proposal, if necessary, the legislature can override this restriction after a public hearing and a three-fifths vote of both houses.

This proposal does NOT apply to currently existing programs.

Prior legislative history

S.1176 and A.5459 of 2013/2014 S.3211 of 2011/2012 A.5789 of 2009/2010 A.2508 and S.3084 of 2007/2008 A.2055 and S.2320 of 2005/2006 A.6310 and S.1270 of 2003/2004 A.6628 and S.1306 of 2001/2002 A.2719 and S.1264 of 1999/2000 A.2417 and S.4236 of 1997/1998 A.9296 and S.6469 of 1995/1996

Fiscal implications

The State will be required to appropriate funds for new mandates on localities, and the localities will commensurately realize savings.

Effective date

This act shall take effect on the 1st of January next succeeding the date on which it became a law.