•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video 

A06556 Summary:

BILL NOA06556
 
SAME ASNo Same As
 
SPONSOROaks
 
COSPNSRFinch, Lawrence, Murray, Blankenbush, Errigo, Giglio
 
MLTSPNSRCastorina
 
Amd 92, St Fin L
 
Increases the maximum percentage allowed to be deposited from surplus revenues into the state tax stabilization reserve fund to 4 percent.
Go to top    

A06556 Actions:

BILL NOA06556
 
03/09/2017referred to ways and means
Go to top

A06556 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6556
 
SPONSOR: Oaks (MS)
  TITLE OF BILL: An act to amend the state finance law, in relation to the tax stabilization reserve fund   PURPOSE OR GENERAL IDEA OF BILL: To increase the maximum amounts permissible for annual deposit of state surplus moneys to the Tax Stabilization Reserve Fund to four percent, in order to increase the size of the fund.   SUMMARY OF SPECIFIC PROVISIONS: Section 1, Subdivisions 3 and 4 of section 92 of the state finance law, as separately amended by chapters 405 and 957 of the laws of 1981, are amended to increase the size of the Tax Stabilization Reserve fund up to four percent   JUSTIFICATION: The last time this cap was adjusted was in 1981. At that time, the Divi- sion of the Budget stated that the two percent cap "represent(ed) a more manageable and realistic target in the present decade." However, this cap is simply too low today. A general rule of thumb utilized by rating agencies and good government groups concerning the preferred size of reserve funds is five percent of the General Fund, except for those large states like New York and Cali- fornia that have such large budgets, where a somewhat lower reserve allocation is acceptable. The balance in the Tax Stabilization Reserve Fund is currently well below two percent, this legislation will permit the State to build up these reserves to more appropriate levels.   PRIOR LEGISLATIVE HISTORY: A3994 of 2014-Held in Ways & Means A5532 of 2016-Held in Ways & Means   FISCAL IMPLICATIONS: To be determined   EFFECTIVE DATE: This act shall take effect three years after it shall have become law.
Go to top

A06556 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6556
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 9, 2017
                                       ___________
 
        Introduced by M. of A. OAKS, FINCH, LAWRENCE, MURRAY, BLANKENBUSH, ERRI-
          GO,  GIGLIO  --  Multi-Sponsored by -- M. of A. CASTORINA -- read once
          and referred to the Committee on Ways and Means
 
        AN ACT to amend the state finance law, in relation to the tax stabiliza-
          tion reserve fund

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivisions  3  and 4 of section 92 of the state finance
     2  law, as separately amended by chapters 405 and 957 of the laws of  1981,
     3  are amended to read as follows:
     4    3.  At the close of each fiscal year any cash surplus remaining in the
     5  general fund over and above the norm  for  such  fiscal  year  shall  be
     6  transferred  from or retained in such fund as hereinafter in this subdi-
     7  vision provided.  There shall be transferred to  the  tax  stabilization
     8  reserve  fund  all of such surplus moneys, up to and including an amount
     9  equivalent to [two-tenths] four-tenths of one per centum of  such  norm,
    10  unless  such  transfer  would increase such reserve fund to an amount in
    11  excess of [two] four per centum of the  amount  of  the  norm  for  such
    12  fiscal  year,  in  which  event  such  transfer shall be limited to such
    13  amount as will increase such reserve fund to such [two] four per  centum
    14  limitation.  Any balance of such surplus moneys, thereafter remaining in
    15  the  general  fund,  shall be retained in such fund and be available for
    16  the reduction of state taxes.
    17    4. In the event that at the close of  any  fiscal  year  the  receipts
    18  derived  from  the  taxes,  fees  and other sources, required to be paid
    19  during such fiscal year into the general fund of the  state  shall  fall
    20  below the norm for such fiscal year, there shall be transferred from the
    21  tax  stabilization  reserve  fund to the general fund to the extent that
    22  there are sufficient moneys in the tax stabilization  reserve  fund,  an
    23  amount  equal  to the difference between the norm and the amount of such
    24  receipts. If such transfer reduces the tax stabilization reserve fund to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08401-01-7

        A. 6556                             2
 
     1  an amount less than [two] four per centum of the norm  for  such  fiscal
     2  year,  the  amount  so  transferred shall be repaid in cash prior to the
     3  computation and payment of any transfer to the fund pursuant to subdivi-
     4  sion  three of this section in not less than three equal annual install-
     5  ments within the period of six years or less next succeeding the date of
     6  such transfer; provided, however, that if any  such  annual  installment
     7  shall  increase  such  reserve fund to an amount in excess of [two] four
     8  per centum of the amount of the norm for the then current  fiscal  year,
     9  such  installment  shall be limited to such amount as will increase such
    10  reserve fund to such [two] four per centum  limitation  and  no  further
    11  repayment of the whole or any part of such transfer shall be required in
    12  any  subsequent fiscal year. Repayments to the tax stabilization reserve
    13  fund shall be stipulated in annual budget bills.
    14    § 2. This act shall take effect 3 years after it shall have  become  a
    15  law.
Go to top