What's happening
This bill requires a public evaluation of the economic, social, and environmental impacts before decreasing state expenditures or laying off state employees.
Why it matters
Creates a formal process requiring the Governor to publicly evaluate and report on the full impacts of proposed state budget cuts or layoffs before they occur. , ensuring these decisions are not made in a vacuum and that potential ripple effects are made clear to lawmakers and the public.
Mandates detailed analysis of both direct and indirect consequences, including economic, social, and environmental outcomes. for example, whether cuts might lead to loss of matching funds, diminish statutory services, or have a negative multiplier effect on local economies and jobs.
Requires transparency and public participation via hearings and online comments before major expenditure decreases or layoffs. , giving stakeholders—including affected communities and organizations—a chance to weigh in and potentially influence outcomes.
Could slow or complicate the process of reducing state spending. , making it more difficult for the executive branch to make swift cuts during budget shortfalls, while providing lawmakers and the public with richer information to weigh the true costs and benefits of such decisions.
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Who cares
Headline styles
Disclose State Budget Cut Impacts
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 40
No co-sponsors yet.
History
- Referred to finance
- Print number 2277a
- Amend and recommit to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Governor Must Explain Budget Cuts
In Assembly Committee · Ways And Means · Sponsor Steven Englebright
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2277--A
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sen. MURPHY -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the state finance law, in relation to establishing a procedure for the informed evaluation of proposed and enacted state expenditure decreases
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "procedure for informed evaluation of state expenditure decreases act of 2018".
§ 2. Legislative findings. The legislature finds that the expenditures of state funds for operations, maintenance, programs, activities and assistance have significant and complex impacts on the economic, social and environmental conditions in both the public and private sectors. Federal funding and matching funds from municipal and private sources, for example, can be affected by changes in levels of state expenditures and negative secondary impacts from cuts like the failure to maintain state property can damage the health, safety and welfare of the people and economy of the state.
The legislature further finds that during a volatile economic time decisions are made to cut or impound expenditures, eliminate or downsize programs and/or lay off state employees without adequate evaluation of the consequences thereof.
Therefore, the legislature declares that an analytical process should be required and information therefrom should be available to the public when a decrease in state expenditure from funds appropriated in the immediate previous state budget is proposed in a state budget bill, or before a reduction in expenditure or lay off of state employees is imposed during the implementation of an enacted state budget.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02339-02-7
S. 2277--A 2
§ 3. The state finance law is amended by adding a new section 21-a to read as follows:
§ 21-a. Informed evaluation of state expenditure decreases. 1. The governor shall submit to the chairman of the senate finance committee and the chairman of the assembly ways and means committee for use of such committees, and provide the legislature and the public for their information, (a) at or prior to the time the budget is submitted, an evaluation pursuant to subdivision two of this section of the direct and indirect economic, social and environmental impacts of any decrease in the amount of the appropriation from the previous fiscal year for any state program, activity or assistance, for local government assistance or for a public purpose by a not-for-profit organization supported, in whole or in part, by state funds, and (b) not less than forty-five days before the implementation of the impoundment of appropriated funds and/or layoff of state employees affecting, directly or indirectly, any state program, activity or assistance, for local government assistance or for a public purpose by a not-for-profit organization supported, in whole or in part, by state funds, an evaluation pursuant to subdivision two of this section of the direct and indirect economic, social and environmental impacts thereof.
2. An evaluation of decreases or elimination of state expenditures shall include, but not be limited to:
(a) identification of whether such state expenditure would have been used for a statutory mandated purpose, a description of such purpose and an estimate of financial return from such funding;
(b) identification of whether such state expenditure would have been used for a non-mandated service;
(c) identification of whether there has been or would be a revenue generator multiplier greater than the amount of the state expenditure;
(d) identification of the cost to the state, municipalities and/or private sources, if any, that may result from the decrease in state funding or employees, including the loss of matching funds from sources outside state government. In estimating such cost, consideration shall be taken of the ability of the affected state units and their ability to sustain the cuts and loss, if any, of revenue to the state or municipalities or from the multiplier effect on the private sector; and
(e) identification of the estimated net benefit to the state treasury of decreases or elimination of state expenditures and/or the layoff of state employees.
3. Not less than twenty days before such evaluation is submitted to the legislature, the governor shall cause to be held a public hearing available by internet webcast on the proposed decrease in state expenditure and/or layoff with the opportunity provided to the public for comment by electronic mail. The record of and responses to such hearing shall be included with the submittal of the evaluation to the legislature and shall be available to the public.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to establishing a procedure for the informed evaluation of proposed and enacted state expenditure decreases
Purpose
The purpose of the bill is to require the Governor to submit to the legislature and make available to the public evaluations of proposed and enacted state expenditure decreases.
Summary of provisions
The bill amends the state finance law by adding a new section 21-a that directs the Governor to submit to the chairman of the Senate Finance Committee and the chairman of the Assembly Ways and Means Committee for use of such committees, and provide the Legislature and public the following information: (a) at or prior to the time the budget is submit- ted, an evaluation of direct and indirect economic, social and environ- mental impacts of any decrease in the level of appropriation from the previous year for any state program, activity or assistance, for local government assistance or for a public purpose by a nonprofit organiza- tion supported, in whole or in part, by state funds, and (b) not less than 45 days before the implementation of the impoundment of appropri- ated funds and/or lay off of state employees affecting directly or indi- rectly any state program, activity or assistance, for local government assistance or for a public purpose by a nonprofit organization supported, in whole or in part, by state funds of this section of direct and indirect economic, social and environmental impacts thereof. Evalu- ation of decreases or elimination of state expenditures shall include but not be limited to:
Read the full memo (659 words)
a. Identification of whether such state expenditure would have been used for a statutory mandated purpose, description of such purpose and esti- mate of financial return from such funding: b. Identification of whether such state expenditure would have been used for un-mandated service; c. Identification of whether there has been or would be a revenue gener- ator multiplier greater than the amount of the state expenditure; d. Identification of the cost to the state, municipalities and/or private sources, if any, that may result from the decrease in state funding or employees including the loss of matching funds from sources outside state government. In estimating such cost, consideration shall be taken of the ability of the affected state units and their ability to sustain the cuts and loss, if any, of revenue to the state or munici- palities or from the multiplier effect on the private sector; e. Identification of estimated net benefit to the state treasury of decreases or elimination of state expenditures and/or lay off of state employees.
Not less than 20 days before such evaluation is submitted to the legis- lature, the governor shall cause to be held a public hearing available by webcast on the proposed decrease in state expenditure and/or lay off with the opportunity provided to the public for comment by e-mail. The record and a response to such hearing shall be included with. The submittal to the evaluation to the legislature and shall be available to the public.
Justification
Currently, the state budget is done in such a way as that during a vola- tile economic time decisions are made to cut or impound expenditures, eliminate or downsize programs and/or layoff state employees without the Legislature being presented an adequate evaluation of the consequences of such actions. In order to allow the Legislature to make the most informed decision possible regarding budget cuts, this bill would create an analytical process to be made available to the public when a decrease in state expenditure from funds appropriated in the immediate previous state budget is proposed in a state budget bill, or before a reduction in expenditure or lay-off of state employees is imposed during the implementation of an enacted state budget.
Legislative history
2017: S.2277 - Referred to Finance 2015-2016: S.5741A - Referred to Finance
Fiscal implications
Minimal
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.