|SAME AS||No Same As|
|COSPNSR||Finch, Lawrence, Murray, Blankenbush, Errigo, Giglio|
|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.|
|03/09/2017||referred to ways and means|
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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.
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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. LBD08401-01-7A. 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.