Reform State Budget Rules

Section 1. This act enacts into law major components of legislation which are necessary to implement the New York state fiscal reform and accountability act. Each component is wholly contained within a Part identified as Parts A through C. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act.

§ 1-a. Short title. This act shall be known and may be cited as "the New York state fiscal reform and accountability act".

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD00039-02-7

A. 7287 2

PART A

Section 1. Subdivision 5 of section 4 of the state finance law, as amended by section 16 of part PP of chapter 56 of the laws of 2009, is amended to read as follows:

5. No money or other financial resources shall be transferred or temporarily loaned from one fund to another or, from a public authority to the state, another public authority or any private corporation, without specific statutory authorization for such transfer or temporary loan and all such transfer authorizations must include specific amounts to be transferred and identification of the specific fund, account, or public authority from which money or other financial resources are to be transferred and the specific fund, account or public authority to which money or other financial resources are to be transferred, except that money or other financial resources of a fund may be temporarily loaned to the general fund during the state fiscal year provided that such loan shall be repaid in full no later than (a) four months after it was made or (b) by the end of the same fiscal year in which it was made, whichever period is shorter, so that an accurate accounting and reporting of the balance of financial resources in each fund may be made. The comptroller is hereby authorized to temporarily loan money from the general fund or any other fund to the fund/accounts that are authorized to receive a loan. Such loans shall be limited to the amounts immediately required to meet disbursements, made in pursuance of an appropriation by law and authorized by a certificate of approval issued by the director of the budget with copies thereof filed with the comptroller and the chair of the senate finance committee and the chair of the assembly ways and means committee. The director of the budget shall not issue such a certificate unless he or she shall have determined that the amounts to be so loaned are receivable on account. When making loans, the comptroller shall establish appropriate accounts and if the loan is not repaid by the end of the month, provide on or before the fifteenth day of the following month to the director of the budget, the chair of the senate finance committee and the chair of the assembly ways and means committee, an accurate accounting and report of the financial resources of each such fund at the end of such month. Within ten days of the receipt of such accounting and reporting, the director of the budget shall provide the comptroller and the chair of the senate finance committee and the chair of the assembly ways and means committee an expected schedule of repayment by fund and by source for each outstanding loan. Repayment shall be made by the comptroller from the first cash receipt of this fund.

§ 2. Paragraphs a and e and subparagraph (v) of paragraph d-2 of subdivision 3 of section 22 of the state finance law, paragraph a as amended by chapter 762 of the laws of 1992, and subparagraph (v) of paragraph d-2 and paragraph e as amended by chapter 1 of the laws of 2007, are amended to read as follows:

a. The appropriations, including reappropriations, made for the current fiscal year, the appropriations and reappropriations recommended for the ensuing fiscal year, the disbursements estimated to be made before the close of the current fiscal year and proposed to be made during the ensuing fiscal year based upon available and recommended appropriations and reappropriations, and for each item of appropriation where the appropriation is subject to allocation by means of (i) a memorandum of understanding, (ii) an interchange with another item of appropriation, (iii) transfer or sub-allocation to another agency, or (iv)

A. 7287 3

any other method of allocating any appropriation or re-appropriation into smaller sums, shall state separately the appropriation amount, by program, object and purpose, and the projected disbursement level, by projected recipient and amount of each smaller sum such item of appropriation is projected to be allocated. Disbursements proposed to be made shall be shown in separate parts as follows: those disbursements proposed to be made for state purposes shall be set forth in one part, those disbursements proposed to be made for local assistance shall be set forth in another separate and distinct part, those disbursements proposed to be made for capital projects shall be set forth in a third separate and distinct part and those disbursements proposed to be made for debt service shall be set forth in a fourth separate and distinct part. The effect of any proposed changes in the payment dates of particular disbursements on the financial plan presented in accordance with subdivision one of this section shall be set forth separately.

(v) an itemized list of transfers to and from [the general fund] each governmental fund and the effect of such transfers on programs and activities associated with the funds from which money or other financial resources are transferred.

e. [The] For each fund type, the anticipated [general fund] quarterly schedule and fiscal year total for the prior, current and next ensuing three fiscal years of: disbursements; receipts; repayments of advances; total tax refunds; and refunds for the tax imposed under article twenty-two of the tax law. Such information shall be presented in the same form as the summary financial plans presented in accordance with subdivisions one and two of this section. A separate, detailed, report of such schedule shall be provided with receipts shown by each major revenue category, including [detail for each major tax and major components of miscellaneous receipts, and with disbursements shown by major function or program] each individual tax, each individual component part of miscellaneous receipts, and each revenue source which accounts for at least one-half of one percent of all receipts within each fund type and with disbursements shown by major agency or major spending item. The director of the division of the budget shall submit concurrent with the submission of the financial plan to the legislature pursuant to subdivision two of this section and with each update thereafter a revised monthly general fund cash flow projection of receipts and disbursements for the current fiscal year that: (1) compares actual results to (i) actual results through the same period for the prior year and (ii) the most recent prior update to the financial plan and to the enacted budget financial plan; (2) summarizes the reasons for any variances; and (3) describes the revisions to the cash flow projections. The monthly general fund cash flow projection shall be stated by major category of local assistance, personal service, nonpersonal service, general state charges, and debt service, and by major category of revenue and shall include a schedule of actual and planned disbursements by month, by agency, fund type, and program, stating separately and distinctly variances between actual and projected fiscal year to date disbursements and projected disbursements for the remaining months of the fiscal year. Such reports shall utilize a format that shall facilitate comparison and analysis with those reports submitted to the legislature by the office of audit and control pursuant to subdivision nine of section eight of this chapter.

§ 3. Subdivision 4 of section 23 of the state finance law, as amended by chapter 1 of the laws of 2007, is amended to read as follows:

A. 7287 4

4. Financial plan updates. Quarterly, throughout the fiscal year, the governor shall submit to the comptroller, the chairs of the senate finance and the assembly ways and means committees, within thirty days of the close of the quarter to which it shall pertain, a report which summarizes the actual experience to date and projections for the remaining quarters of the current fiscal year and for each of the next two fiscal years of receipts, disbursements, tax refunds, and repayments of advances presented in forms suitable for comparison with the financial plan submitted pursuant to subdivisions one, four, and five, of section twenty-two of this article including detail for each individual tax, each individual component part of miscellaneous receipts, and each revenue source which accounts for at least one-half of one percent of all receipts within each fund type and with disbursements shown by major agency or major spending item and revised in accordance with the provisions of subdivision three of this section. Such report shall include a schedule of actual and planned disbursements by month, by agency, fund type, and program, stating separately and distinctly variances between actual and projected fiscal year to date disbursements and projected disbursements for the remaining months of the fiscal year. The governor shall submit with the budget a similar report that summarizes revenue and expenditure experience to date in a form suitable for comparison with the financial plan submitted pursuant to subdivision two of section twenty-two of this article and revised in accordance with the provisions of subdivision three of this section. Such reports shall provide an explanation of the causes of any major deviations from the revised financial plans and, shall provide for the amendment of the plan or plans to reflect those deviations. The governor may, if he determines it advisable, provide more frequent reports to the legislature regarding actual experience as compared to the financial plans. The quarterly financial plan update most proximate to October thirty-first of each year shall include the calculation of the limitations on the issuance of state-supported debt computed pursuant to the provisions of subdivisions one and two of section sixty-seven-b of this chapter. On or after January first, two thousand nineteen, the enacted budget financial plan and financial plan updates submitted by the governor pursuant to this subdivision shall bear the financial plan program reference number or numbers to which every appropriation or reappropriation shall pertain, and shall be classified into the same category as the associated program or programs have been classified in such financial plan, and for each item of appropriation where the appropriation is subject to allocation by means of (i) a memorandum of understanding, (ii) an interchange with another item of appropriation, (iii) transfer or suballocation to another agency, or (iv) any other method of allocating any appropriation or reappropriation into smaller sums, shall state separately the appropriation amount, by program, object and purpose, and the projected disbursement level, by projected recipient and amount of each smaller sum such item of appropriation is projected to be allocated.

§ 4. Section 22 of the state finance law is amended by adding two new subdivisions 5-a and 5-b to read as follows:

5-a. For each agency or public authority, by program and fund, identify:

(a) amounts, by appropriation or reappropriation, proposed to maintain current services;

(b) amounts, by appropriation or reappropriation, proposed to support new program initiatives, or policy changes;

A. 7287 5

(c) estimated disbursements for each appropriation or reappropriation separately identified in paragraphs (a) and (b) of this subdivision; and

(d) estimated disbursements for carry-over spending for each appropriation, by program and fund.

5-b. Include summaries that identify disbursements, carry-over spending and new spending by each agency or public authority, by program and fund, separately identified for state purposes, local assistance, capital projects, and general state charges.

§ 5. Subdivision 3 of section 23 of the state finance law, as amended by chapter 1 of the laws of 2007, is amended to read as follows: