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A05666 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5666
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 3, 2015
                                       ___________
 
        Introduced by M. of A. KOLB, MONTESANO -- Multi-Sponsored by -- M. of A.
          BARCLAY,  BUTLER, CROUCH, DUPREY, FINCH, FITZPATRICK, GOODELL, HAWLEY,
          McDONOUGH, McKEVITT, OAKS, RAIA, SALADINO,  TEDISCO,  TENNEY  --  read
          once and referred to the Committee on Ways and Means
 
        AN  ACT to amend the state finance law and the education law in relation
          to extending the state fiscal year; and to amend the state finance law
          in relation to requiring the  use  of  generally  accepted  accounting
          principles in the state fiscal plan
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 3 of the state finance law, as added by  chapter  1
     2  of the laws of 1943 and as separately renumbered by chapters 405 and 957
     3  of the laws of 1981, is amended to read as follows:
     4    §  3.  Fiscal  year.  1.  The  current  fiscal year of the state which
     5  commenced with the first  day  of  [July,  nineteen  hundred  forty-two]
     6  April,  two  thousand  fourteen, is hereby [abridged] extended and shall
     7  end with the [thirty-first] thirtieth day of  [March,  nineteen  hundred
     8  forty-three]  April, two thousand fifteen. For all purposes of determin-
     9  ing annual increments of state employees pursuant to the education  law,
    10  the  civil service law or other state law, and for all purposes whenever
    11  by law some act is to be performed or time is  to  be  measured  by  the
    12  fiscal  year  of  the  state,  the current fiscal year, as so [abridged]
    13  extended, shall be deemed to be a full year unless the  context  clearly
    14  requires a contrary construction.
    15    On  and  after  the first day of [April, nineteen hundred forty-three]
    16  May, two thousand fifteen, the fiscal year of the state, for the purpose
    17  of budget, appropriations, receipts and disbursements  of  state  moneys
    18  and  all  other  state affairs which are regulated in accordance with or
    19  based on fiscal years, including the fiscal affairs of all state depart-
    20  ments, commissions, boards, agencies, offices  and  institutions,  shall
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03503-02-5

        A. 5666                             2
 
     1  begin  with the first day of [April] May and end with the next following
     2  [thirty-first] thirtieth day of [March] April.
     3    2.  All  books  and accounts in the offices of the comptroller and the
     4  department of taxation and finance shall be kept by  fiscal  years.  All
     5  annual  accounts  required  to be rendered to the comptroller or to such
     6  department by any person shall be closed on the [thirty-first] thirtieth
     7  day of [March] April in each year, and be rendered as soon thereafter as
     8  practicable, if no time is specially prescribed by law.
     9    3. Where any statute provides, in terms or effect, that any  inventory
    10  or  account,  or  a  report relating in whole or in part to receipts and
    11  disbursements of money, be made to the legislature or any state  officer
    12  annually,  or for a year, by a department, commission, board, or officer
    13  under the state government, such inventory or account, and  such  report
    14  so  far  as  it relates to such receipts and disbursements, shall be for
    15  the preceding  fiscal  year,  unless  the  calendar  year  be  expressly
    16  mentioned.
    17    4.  Existing  provisions  of  other  laws describing or referring to a
    18  fiscal year of the state as beginning July first and ending June thirti-
    19  eth or as beginning April first and ending March thirty-first, or making
    20  any requirement with respect to such fiscal year, or  referring  to  any
    21  year so beginning and ending which applies to inventories or accounts in
    22  state  matters, or to reports relating to state money or property, shall
    23  be deemed modified by and be construed in connection with this  section,
    24  and  be  deemed to refer to a fiscal or to another year or period begin-
    25  ning and ending as [herein] prescribed in  this  section  for  a  fiscal
    26  year.
    27    § 2. Subdivision 1 of section 2022 of the education law, as amended by
    28  section  7  of  part  A of chapter 97 of the laws of 2011, is amended to
    29  read as follows:
    30    1. Notwithstanding any law, rule or regulation to  the  contrary,  the
    31  election  of trustees or members of the board of education, and the vote
    32  upon the appropriation of the necessary  funds  to  meet  the  estimated
    33  expenditures, in any common school district, union free school district,
    34  central school district or central high school district shall be held at
    35  the  annual  meeting  and  election  on the third Tuesday in [May] June,
    36  provided, however, that such election shall be held on the second  Tues-
    37  day  in  [May] June if the commissioner at the request of a local school
    38  board certifies no later than  March  first  that  such  election  would
    39  conflict with religious observances. The sole trustee, board of trustees
    40  or  board  of  education of every common, union free, central or central
    41  high school district and every city school district to which this  arti-
    42  cle  applies  shall  hold  a budget hearing not less than seven nor more
    43  than fourteen days prior to the annual meeting and election  or  special
    44  district  meeting  at  which  a school budget vote will occur, and shall
    45  prepare and present to the voters at  such  budget  hearing  a  proposed
    46  school district budget for the ensuing school year.
    47    § 3. Subdivision 1 of section 2022 of the education law, as amended by
    48  section  8  of  part  C of chapter 58 of the laws of 1998, is amended to
    49  read as follows:
    50    1. Notwithstanding any law, rule or regulation to  the  contrary,  the
    51  election  of trustees or members of the board of education, and the vote
    52  upon the appropriation of the necessary  funds  to  meet  the  estimated
    53  expenditures, in any common school district, union free school district,
    54  central school district or central high school district shall be held at
    55  the  annual  meeting  and  election  on the third Tuesday in [May] June,
    56  provided, however, that such election shall be held on the second  Tues-

        A. 5666                             3
 
     1  day  in  [May] June if the commissioner at the request of a local school
     2  board certifies no later than  March  first  that  such  election  would
     3  conflict with religious observances. When such election or vote is taken
     4  by  recording  the  ayes  and  noes of the qualified voters attending, a
     5  majority of the qualified voters present and voting, by a hand or  voice
     6  vote,  may  determine  to  take  up the question of voting the necessary
     7  funds to meet the estimated expenditures for a specific item separately,
     8  and the qualified voters present and voting may increase the  amount  of
     9  any  estimated  expenditures  or  reduce  the same, except for teachers'
    10  salaries, and the ordinary contingent expenses of the schools. The  sole
    11  trustee,  board of trustees or board of education of every common, union
    12  free, central or central high school  district  and  every  city  school
    13  district  to  which this article applies shall hold a budget hearing not
    14  less than seven nor more than fourteen days prior to the annual  meeting
    15  and  election  or special district meeting at which a school budget vote
    16  will occur, and shall prepare and present to the voters at  such  budget
    17  hearing a proposed school district budget for the ensuing school year.
    18    §  4. Subdivision 2 of section 2601-a of the education law, as amended
    19  by section 9 of part A of chapter 97 of the laws of 2011, is amended  to
    20  read as follows:
    21    2.  The board of education shall conduct all annual and special school
    22  district meetings for the purpose of adopting a school  district  budget
    23  in  the  same  manner as a union free school district in accordance with
    24  the provisions of article forty-one of this title, except  as  otherwise
    25  provided  by  this section. The annual meeting and election of each such
    26  city school district shall be held on the third Tuesday of [May] June in
    27  each year, provided, however that such annual meeting and election shall
    28  be held on the second Tuesday in [May] June if the commissioner  at  the
    29  request of a local school board certifies no later than March first that
    30  such  election would conflict with religious observances, and any school
    31  budget revote shall be held on the date and in the same manner specified
    32  in subdivision three of section two thousand seven of  this  title.  The
    33  provisions  of  this article, and where applicable subdivisions nine and
    34  nine-a of section twenty-five hundred two of this title,  governing  the
    35  qualification  and  registration of voters, and procedures for the nomi-
    36  nation and election of members of the board of education shall  continue
    37  to  apply, and shall govern the qualification and registration of voters
    38  and voting procedures with respect to the adoption of a school  district
    39  budget.
    40    §  5. Subdivision 2 of section 2601-a of the education law, as amended
    41  by section 6 of part M of chapter 57 of the laws of 2005, is amended  to
    42  read as follows:
    43    2.  The board of education shall conduct all annual and special school
    44  district meetings for the purpose of adopting a school  district  budget
    45  in  the  same  manner as a union free school district in accordance with
    46  the provisions of article forty-one of this title, except  as  otherwise
    47  provided  by  this section. The annual meeting and election of each such
    48  city school district shall be held on the third Tuesday of [May] June in
    49  each year, provided, however that such annual meeting and election shall
    50  be held on the second Tuesday in [May] June if the commissioner  at  the
    51  request of a local school board certifies no later than March first that
    52  such  election would conflict with religious observances, and any school
    53  budget revote shall be held on the date and in the same manner specified
    54  in subdivision three of section two thousand seven of  this  title.  The
    55  provisions  of  this article, and where applicable subdivisions nine and
    56  nine-a of section twenty-five hundred two of this title,  governing  the

        A. 5666                             4
 
     1  qualification  and  registration of voters, and procedures for the nomi-
     2  nation and election of members of the board of education shall  continue
     3  to  apply, and shall govern the qualification and registration of voters
     4  and  voting procedures with respect to the adoption of a school district
     5  budget.
     6    § 6. Section 2515 of the education law, as added by chapter 171 of the
     7  laws of 1996, is amended to read as follows:
     8    § 2515. Fiscal year. The fiscal year for   city  school  districts  of
     9  cities with less than one hundred twenty-five thousand inhabitants shall
    10  be  the period commencing with [July] August first and ending with [June
    11  thirtieth] July thirty-first next following.
    12    § 7. Subdivision 3 of section 2006 of the education law, as  added  by
    13  section  4  of  part  M of chapter 57 of the laws of 2005, is amended to
    14  read as follows:
    15    3. Whenever the voters shall have defeated the budget  of  the  school
    16  district  at  the  annual  meeting and election, the trustees may call a
    17  special district meeting for a school budget revote to be  held  on  the
    18  third  Tuesday of [June] July, provided, however that such budget revote
    19  shall be held on the second Tuesday in [June] July if  the  commissioner
    20  at  the  request  of  a local school board certifies no later than March
    21  first that such vote would  conflict  with  religious  observances.  The
    22  trustees  shall  give the notices required by subdivision one of section
    23  two thousand three of this part and  this  section  by  publishing  such
    24  notices  once  in  each  week  within  the two weeks next preceding such
    25  special meeting, the first publication to  be  at  least  fourteen  days
    26  before  such  meeting,  with  any  required  posting to be fourteen days
    27  before the time of such meeting.
    28    § 8. Paragraph b of subdivision 3 of section  2007  of  the  education
    29  law,  as  amended  by  section  5 of part M of chapter 57 of the laws of
    30  2005, is amended to read as follows:
    31    b. A school budget revote called  pursuant  to  paragraph  a  of  this
    32  subdivision shall be held on the third Tuesday of [June] July, provided,
    33  however  that  such budget revote shall be held on the second Tuesday in
    34  [June] July if the commissioner at the request of a local  school  board
    35  certifies  no  later than March first that such vote would conflict with
    36  religious observances.
    37    § 9. The state finance law is amended by adding a new article  3-A  to
    38  read as follows:
    39                                ARTICLE III-A
    40        BALANCED BUDGETING ACCORDING TO GENERALLY ACCEPTED ACCOUNTING
    41                                 PRINCIPLES
    42  Section 35. Definition.
    43          36. Comptroller advice to the director of budget; legislature.
    44          37. Identifying budget gaps; pro rata spending reductions.
    45    §  35.  Definition.  As  used  in  this article:   "Generally accepted
    46  accounting principles" means the set of accounting principles for finan-
    47  cial reporting established by the Financial Accounting  Standards  Advi-
    48  sory  Board  and  governed by the American Institute of Certified Public
    49  Accountants for federal reporting entities.
    50    § 36. Comptroller advice to the director of budget; legislature.  Upon
    51  receipt  of  a financial plan after January first, two thousand fifteen,
    52  the state comptroller shall, within seven days, provide  advice  to  the
    53  director  of  the budget, the chair of the senate finance committee, the
    54  chair of the assembly ways and means committee, the    ranking  minority
    55  member  of the senate finance committee, and the ranking minority member
    56  of the assembly ways and means committee or their designees,  concerning

        A. 5666                             5
 
     1  present  "cash-basis"  balanced  budget  issues and incremental steps in
     2  movement toward achieving  a  balanced  budget  according  to  generally
     3  accepted  accounting principles by the thirtieth day of April, two thou-
     4  sand fifteen.
     5    §  37.  Identifying budget gaps; pro rata spending reductions. 1. Upon
     6  receipt of each financial  plan  and  quarterly  financial  plan  update
     7  during  the  first or third quarter of a state fiscal year after January
     8  first, two thousand fifteen, the state comptroller shall,  within  seven
     9  days, determine if the submitted financial plan is balanced according to
    10  generally accepted accounting principles.
    11    2.  If  the state comptroller determines that the current year portion
    12  of a financial plan or quarterly financial plan update during the  first
    13  or  third  quarter  of  a state fiscal year identifies a budget gap, the
    14  state comptroller shall advise the director of the budget, the chair  of
    15  the  senate  finance committee, the chair of the assembly ways and means
    16  committee, the ranking minority member of the senate finance  committee,
    17  and the ranking minority member of the assembly ways and means committee
    18  or  their  designees  of  his  or  her findings and make recommendations
    19  concerning actions to close such budget gaps.
    20    3. If within thirty days, the governor  and  the  legislature  do  not
    21  enact  measures  to  close  such  gaps, the governor will be granted the
    22  authority to make pro rata  spending  reductions  to  close  such  gaps,
    23  excepting  appropriations for the operation of the legislative and judi-
    24  cial branches of state government.
    25    § 10. Subdivision 1 of section 22 of the state finance law, as amended
    26  by chapter 762 of the laws of 1992, is amended and a new subdivision 1-d
    27  is added to read as follows:
    28    1. include (a) both the current year plan and a  five  year  financial
    29  plan that employs generally accepted accounting principles, as such term
    30  is  defined  in  section thirty-five of this chapter, identifies current
    31  and future budget gaps, and proposes actions to close gaps; (b) a summa-
    32  ry financial plan showing for each of the governmental fund types: [(a)]
    33  (i) the disbursements estimated to be  made  before  the  close  of  the
    34  current  fiscal  year  and  the  moneys  estimated  to be available from
    35  receipts and other sources therefor; and [(b)]  (ii)  the  disbursements
    36  proposed to be made during the ensuing fiscal year, and the moneys esti-
    37  mated to be available from receipts and other sources therefor inclusive
    38  of  any  receipts which are expected to result from proposed legislation
    39  which he or she deems necessary to provide receipts sufficient  to  meet
    40  such  proposed disbursements. For the purposes of this summary financial
    41  plan, disbursements shall be presented by the following purposes:  state
    42  purposes,  local assistance, capital projects, debt service, and general
    43  state charges; receipts shall be presented for each fund  type  by  each
    44  revenue  source  which  accounts for at least one per centum of all such
    45  receipts and otherwise by categories of revenue  sources;  receipts  and
    46  disbursements  for  special  revenue funds shall be presented separately
    47  for federal funds and all other special revenue funds. Whenever receipts
    48  or disbursements are proposed to be moved to a different fund type, each
    49  significant amount so moved shall be identified.
    50    1-d. provide that quarterly updates to both the current year  and  the
    51  five  year  financial plans required by paragraph (a) of subdivision one
    52  of this section shall be submitted to the state comptroller,  the  chair
    53  of  the  senate  finance  committee,  the chair of the assembly ways and
    54  means committee, the ranking  minority  member  of  the  senate  finance
    55  committee,  and  the  ranking  minority  member of the assembly ways and

        A. 5666                             6
 
     1  means committee or their designees, within ten days after the  commence-
     2  ment of each quarter of the state fiscal year.
     3    §  11.  Separability.  If any clause, sentence, paragraph, section, or
     4  part of this act shall be adjudged by any court of  competent  jurisdic-
     5  tion to be invalid, such judgment shall not affect, impair or invalidate
     6  the  remainder  thereof,  but  shall be confined in its operation to the
     7  clause, sentence, paragraph, section, or part thereof  involved  in  the
     8  controversy in which such judgment shall have been rendered.
     9    § 12. This act shall take effect immediately, provided that the amend-
    10  ments  to  subdivision  1  of  section 2022 of the education law made by
    11  section two of this act shall be subject to the expiration and reversion
    12  of such section pursuant to chapter 97 of the laws of 2011  as  amended,
    13  when  upon  such  date the provisions of section three of this act shall
    14  take effect; and provided further that the amendments to  subdivision  2
    15  of  section 2601-a of the education law made by section four of this act
    16  shall be subject to the expiration and reversion of such section  pursu-
    17  ant  to  chapter  97 of the laws of 2011 as amended, when upon such date
    18  the provisions of section five of this act shall take effect.
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