NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4976A
SPONSOR: Schimminger TITLE OF BILL: CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to article 7 of the constitution, in relation to
limiting the growth on New York state disbursements and creating a
revenue stabilization tax reduction and debt repayment fund; repealing
section 17 of article 7 of the constitution relating to authorizing the
establishment of a fund to aid in the stabilization of tax revenues
PURPOSE OF THE BILL: The purpose of this legislation is to ensure
state fiscal discipline by constitutionally limiting the percentage of
growth from fiscal year to fiscal year in the state's budget.
SUMMARY OF SPECIFIC PROVISIONS:
§ 1- Amends Article VII, by creating a new Section 7-a which limits
state fiscal year spending to the preceding year's spending plus the
product of the preceding years spending the lesser of 120% of the
inflation rate or 2%.
§ 2 - Repeals Section 17 of Article VII and adds a new Section 17 which
requires revenues in excess of the state spending limitation be deposit-
ed into the tax stabilization reserve fund. The remainder of the reven-
ues are to be returned to New York resident taxpayers in proportion to
their personal income tax liability.
EXISTING LAW: Presently, there are no limitations as to how much state
spending may increase from year to year.
JUSTIFICATION: By all measures, the tax burden on New Yorkers is among
the highest in the nation. Unchecked growth in spending from one fiscal
year to the next serves only to increase the tax burden on New Yorkers.
By limiting the amount of annual growth in the state's budget, New York
can cheek the growth of government and the attendant tax burden on its
citizens.
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: Savings to the state from an improved budget
process.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Resolved (if the Senate concur), That the foregoing
amendments be referred to the first regular legislative session conven-
ing after the next succeeding general election of members of the assem-
bly, and in conformity with section I of article 19 of the constitution,
be published for 3 months previous to the time of such election.
STATE OF NEW YORK
________________________________________________________________________
4976--A
2011-2012 Regular Sessions
IN ASSEMBLY
February 9, 2011
___________
Introduced by M. of A. SCHIMMINGER -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to article 7 of the constitution, in relation to
limiting the growth on New York state disbursements and creating a
revenue stabilization tax reduction and debt repayment fund; repealing
section 17 of article 7 of the constitution relating to authorizing
the establishment of a fund to aid in the stabilization of tax reven-
ues
1 Section 1. Resolved (if the Senate concur), That article 7 of the
2 constitution be amended by adding a new section 7-a to read as follows:
3 § 7-a. 1. Except in the case of an emergency, the governor shall not
4 submit any appropriation bill or bills, nor shall the legislature act
5 upon any such appropriation bill or supplemental appropriation bill or
6 bills for the support of government which authorize an increase in total
7 state spending over the preceding state fiscal year which is in excess
8 of the product of the total state spending for the preceding fiscal year
9 and the lesser of one hundred twenty percent of the inflation rate or
10 two percent.
11 2. Upon a finding and declaration of an emergency by the governor with
12 concurrence of the comptroller, the governor may submit an appropriation
13 bill or bills which authorize total state spending in excess of the
14 limitation provided in subdivision one of this section.
15 3. For purposes of this section:
16 a. "Total state spending" shall mean all state funds, which shall
17 constitute: (i) general funds; (ii) special revenue funds; (iii) capital
18 project funds; (iv) debt service funds.
19 b. "Inflation rate" shall mean the annual percentage change in the
20 consumer price index, all urban, as published by the bureau of labor
21 statistics, or any successor agency, for the previous twelve month peri-
22 od ending October thirty-first.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD89094-03-1
A. 4976--A 2
1 c. "Emergency" shall mean an extraordinary, unforeseen or unexpected
2 occurrence or combination of circumstances in a given fiscal year which
3 requires immediate and sudden fiscal action of a drastic but temporary
4 nature.
5 § 2. Resolved (if the Senate concur), That section 17 of article 7 of
6 the constitution be REPEALED and a new section 17 be added to read as
7 follows:
8 § 17. In any state fiscal year if total state revenues are in excess
9 of the state spending limitation pursuant to subdivision one of section
10 seven-a of this article, one-half of the revenues in excess of such
11 state spending limitation must be deposited into the tax stabilization
12 reserve fund. The remainder shall be returned to New York resident
13 taxpayers in proportion to personal income tax liability.
14 § 3. Resolved (if the Senate concur), That the foregoing amendments be
15 referred to the first regular legislative session convening after the
16 next succeeding general election of members of the assembly, and, in
17 conformity with section 1 of article 19 of the constitution, be
18 published for 3 months previous to the time of such election.
