Provides for the establishment of a biennial budgeting system for the state of New York replacing the state annual budget process

2 Co-sponsors

• Bill Perkins
• José M. Serrano

BILL NUMBER:S2671

Title of bill

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing amendments to sections 1, 2 and 7 of article 7 of the constitution, in relation to providing for the establishment of a biennial budgeting system for the state replacing the state annual budget process

Purpose

This resolution proposes to amend sections 1, 2 and 7 of Article 7 of the constitution. It would provide for the establishment of a biennial budgeting process for the state that would replace the State's annual process.

Summary of provisions

Under this legislation, every two years, the Governor would be required to submit to the Legislature a document setting forth a financial program for the ensuing biennium. The Governor would be required to submit this two-year fiscal plan in odd-numbered years by the second Tuesday following the first day of the annual meeting of the Legislature, or the third Tuesday following the first day of the annual meeting of the Legislature following the year of a constitutionally-mandated election of Governor and Lieutenant Governor.

To implement a biennial budgeting process through a constitutional amendment, two separately-elected Legislatures are required to pass this concurrent resolution in consecutive sessions. Following passage by these two full Legislatures, this measure would require public approval in a statewide referendum.

Existing law

Under Article 7 of the Constitution, the Governor is annually required to submit to the Legislature a financial plan for the ensuing fiscal year. The Governor must submit this document on or before the first day of February in each year following the year fixed by the constitution for the election of Governor and Lieutenant Governor, and on or before the second Tuesday following the first day of the annual meeting of the Legislature.

Justification

Too often in New York State's financial planning process, lawmakers' emphasis falls squarely on doing whatever is necessary to pass a budget without a disciplined analysis and consideration of the state's long-term fiscal position. While these decisions have enabled the state to continue operating for another fiscal year, they also continued to weaken the state's financial stability.

A biennial budgeting process would force lawmakers to acknowledge that the one-shots, spending increases and other actions taken in one year will have consequences in the next year. This legislation proposes to require the Governor to submit to the Legislature an Executive Budget for the ensuing two years. This cycle would also provide legislators

with more time over each 24 month period to debate and consider non-fiscal policy matters important to New Yorkers.

In an August 2009 report comparing annual and biennial budgeting, the National Conference of State Legislatures stated, "Biennial budgeting represents a commitment of policy direction and funding amounts for a longer period than annual budgeting." Biennial budgeting should also reduce Executive branch costs of preparing a budget because two years' worth of financial planning activities would consolidated into one. Nationwide, 20 states operate on two-year budget cycles. out of these states with biennial budget cycles, 15 of them have annual legislative sessions similar to New York's legislative cycle.

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 three months previous to the time of such election.