What's happening
This bill creates a cap on annual state spending growth based on inflation and doubles the rainy day fund limit to 10%.
Why it matters
Restricts state spending growth. By tying annual spending increases to a three-year average inflation rate, the bill aims to prevent rapid or unpredictable growth in the state budget, potentially leading to greater fiscal restraint and predictability for taxpayers and state-funded programs.
Limits government discretion. The requirement that both the governor and legislature adhere to the spending cap, with oversight from the state comptroller, reduces opportunities for budgetary maneuvering and could force difficult choices during high-cost years or when new needs arise.
Emergency override mechanism. The bill allows the governor to declare emergencies (such as natural disasters or economic crises), enabling budget growth beyond the cap only with a two-thirds legislative supermajority. This balances fiscal discipline with flexibility to respond to genuine crises, but raises the political threshold for extraordinary spending.
Doubles rainy day fund capacity. By increasing the maximum allowable rainy day fund from 5% to 10% of annual general fund disbursements, the state would have a larger financial cushion to weather economic downturns or unexpected events—potentially reducing the need for drastic cuts or tax increases in tough times.
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Who cares
Headline styles
Limit State Spending Growth
Plain English, a few words. Used as the page title.
Sponsors
12 Co-sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5942
2017-2018 Regular Sessions
IN ASSEMBLY
February 17, 2017
Introduced by M. of A. KOLB, FITZPATRICK, MONTESANO, McLAUGHLIN, PALMES- ANO, RA, MALLIOTAKIS, CURRAN, MURRAY, BLANKENBUSH -- Multi-Sponsored by -- M. of A. BARCLAY, BUTLER, CROUCH, DiPIETRO, FINCH, FRIEND, GIGLIO, GOODELL, HAWLEY, JOHNS, LOPEZ, McKEVITT, OAKS, STEC, THIELE, WALTER -- read once and referred to the Committee on Ways and Means
AN ACT to amend the state finance law, in relation to establishing a spending cap and increasing the maximum capacity of the rainy day fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The state finance law is amended by adding a new article 17 to read as follows:
ARTICLE XVII
SPENDING GROWTH CAP ACT Section 250. Definitions.
251. Establishment of annual spending growth cap.
252. Provisions regarding declaration of emergency.
§ 250. Definitions. As used in this article, the following terms shall have the following meanings, unless otherwise specified:
1. "Annual spending growth cap" shall mean a percentage determined by adding the inflation rates from each of the three calendar years immediately prior to the commencement of a given fiscal year and then dividing that sum by three.
2. "State operating funds spending" shall mean annual disbursements of all governmental fund types included in the cash-basis financial plan of the state, excluding disbursements from federal funds and capital project funds.
3. "Inflation rate" shall mean the percentage change in the twelvemonth average of the consumer price index for all urban consumers as published by the United States department of labor, bureau of labor statistics or any successor agency for a given calendar year compared to the prior calendar year.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07975-01-7
A. 5942 2
4. "Executive budget" shall mean the budget submitted annually by the governor pursuant to section one of article VII of the state constitution.
5. "State budget as enacted" shall mean the budget acted upon by the legislature in a given fiscal year, as subject to section four of article VII of the state constitution and section seven of article IV of the state constitution.
6. "Emergency" shall mean an extraordinary, unforeseen, or unexpected occurrence, or combination of circumstances, including but not limited to a natural disaster, invasion, terrorist attack, or economic calamity.
§ 251. Establishment of annual spending growth cap. 1. There is hereby established an annual spending growth cap.
2. The governor shall not submit, and the legislature shall not act upon, a budget that contains a percentage increase over the prior fiscal year in state operating funds spending which exceeds the annual spending growth cap.
3. The governor shall certify in writing that state operating funds spending in the executive budget does not exceed the annual spending growth cap. If final inflation rate data for the prior calendar year is not yet available at the time the governor submits his or her executive budget, he or she shall furnish a reasonable estimate of such prior calendar year inflation rate.
4. The comptroller shall provide, within five days of action by the legislature upon the budget, a determination as to whether the state operating funds spending as set forth in the state budget as enacted exceeds the annual spending growth cap.
5. If the comptroller finds that state operating funds spending as set forth in the state budget as enacted exceeds the annual spending growth cap, the governor shall take corrective action to ensure that funding is limited to the amount of the annual spending cap.
§ 252. Provisions regarding declaration of emergency. 1. Upon a finding of an emergency by the governor, he or she may declare an emergency by an executive order which shall set forth the reasons for such declaration.
2. Based upon such declaration, the governor may submit, and the legislature may authorize, by a two-thirds super majority, a budget containing a percentage increase over the prior fiscal year in state operating funds spending that exceeds the annual spending growth cap.
§ 2. Subdivision 2 of section 92-cc of the state finance law, as amended by section 12-a of part I of chapter 60 of the laws of 2015, is amended to read as follows:
2. Such fund shall have a maximum balance not to exceed [five] ten per centum of the aggregate amount projected to be disbursed from the general fund during the fiscal year immediately following the then-current fiscal year. At the request of the director of the budget, the state comptroller shall transfer monies to the rainy day reserve fund up to and including an amount equivalent to seventy-five one-hundredths of one per centum of the aggregate amount projected to be disbursed from the general fund during the then-current fiscal year, unless such transfer would increase the rainy day reserve fund to an amount in excess of [five] ten per centum of the aggregate amount projected to be disbursed from the general fund during the fiscal year immediately following the then-current fiscal year, in which event such transfer shall be limited to such amount as will increase the rainy day reserve fund to such [five] ten per centum limitation.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.