A05430 Summary:

BILL NO    A05430 

SAME AS    No same as 

SPONSOR    Giglio (MS)

COSPNSR    Raia

MLTSPNSR   

Amd S97-rrr, St Fin L

Provides that at the close of each fiscal year, five percent of any cash
surplus in the general fund shall be transferred to the debt reduction reserve
fund.
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A05430 Actions:

BILL NO    A05430 

02/23/2015 referred to ways and means
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A05430 Votes:

There are no votes for this bill in this legislative session.
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A05430 Memo:

BILL NUMBER:A5430

TITLE OF BILL:

An act to amend the state finance law, in relation to the debt
reduction reserve fund

PURPOSE OR GENERAL IDEA OF BILL:

Provides that at the close of each fiscal year, five percent of any
cash surplus in the general fund shall be transferred to the debt
reduction reserve fund.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends Section 97-rrr of the state finance law, as amended
by section 45 of part H of chapter 56 of the laws of 2000 and reads
that at the close of each fiscal year a portion, five percent, of any
cash surplus remaining in the general fund after the transfer pursuant
to section ninety-two of this article shall be transferred from or
retained in such fund as provided in this subdivision. A cash surplus
shall be defined as the amount by which general fund receipts in a
fiscal year exceed general fund expenditures in such fiscal year.

Section 2 provides that the effective date shall be immediately.

EXISTING LAW:

Current law provides that the debt reduction reserve fund shall be
established as a capital projects fund and that such fund shall
consist of all monies credited or transferred thereto from the general
fund or from any other fund or sources pursuant to law.

JUSTIFICATION:

New York's debt continues to grow and residents are bearing an
increasing tax burden. Many local governments and school districts,
particularly upstate, are being forced to increase property taxes to
pay bills and continue their operation. Additionally, New York's high
cost of living and doing business has led to a decline population,
particularly of those people under the age of 35. This is a common
sense piece of legislation that is only a small step toward solving
complicated issues. It will require that New York use 5% of a fiscal
year surplus to pay down debt incurred by the State of New York.
Automatically, 5% of the surplus will be transferred to the Debt
Reduction Reserve Fund for that purpose. This established fund will be
jointly controlled by the Comptroller and the Commissioner of Taxation
and Finance

PRIOR LEGISLATIVE HISTORY:

2008: A.2711 (Giglio)
2010: A.6518 (Giglio)
2012: A3681 (Giglio)
2014: A6023 (Giglio)

FISCAL IMPLICATIONS:


Minimal.

EFFECTIVE DATE:

This act shall take effect immediately.
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A05430 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         5430

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   February 23, 2015
                                      ___________

       Introduced  by  M.  of  A. GIGLIO, RAIA -- read once and referred to the
         Committee on Ways and Means

       AN ACT to amend the state finance law, in relation to the debt reduction
         reserve fund

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  Section  97-rrr  of  the state finance law, as amended by
    2  section 45 of part H of chapter 56 of the laws of 2000,  is  amended  to
    3  read as follows:
    4    S  97-rrr. Debt reduction reserve fund. 1. There is hereby established
    5  in the joint custody of the comptroller and the commissioner of taxation
    6  and finance a fund to be known as the debt reduction reserve fund.  Such
    7  fund  shall  be  established  as a [capital projects] DEBT SERVICE fund,
    8  PROVIDED, HOWEVER, ANY BALANCE OF MONEYS  IN  SUCH  FUND  SHALL  NOT  BE
    9  TRANSFERRED  TO THE GENERAL FUND PURSUANT TO SUBDIVISION FOUR OF SECTION
   10  SEVENTY-TWO OF THIS ARTICLE.
   11    2. [Such fund shall consist of  all  monies  credited  or  transferred
   12  thereto from the general fund or from any other fund or sources pursuant
   13  to law.] AT THE CLOSE OF EACH FISCAL YEAR, A PORTION OF ANY CASH SURPLUS
   14  REMAINING  IN  THE  GENERAL  FUND AFTER THE TRANSFER PURSUANT TO SECTION
   15  NINETY-TWO OF THIS ARTICLE SHALL BE TRANSFERRED FROM OR RETAINED IN SUCH
   16  FUND AS PROVIDED IN THIS SUBDIVISION. THE PORTION TO BE  TRANSFERRED  TO
   17  THE  DEBT  REDUCTION RESERVE FUND SHALL BE EQUAL TO FIVE PERCENT OF SUCH
   18  SURPLUS FOR SUCH FISCAL YEAR.   FOR THE PURPOSES  OF  THIS  SUBDIVISION,
   19  CASH  SURPLUS  SHALL  BE  DEFINED  AS  THE  AMOUNT BY WHICH GENERAL FUND
   20  RECEIPTS IN A FISCAL YEAR  EXCEED  GENERAL  FUND  EXPENDITURES  IN  SUCH
   21  FISCAL YEAR.
   22    3. The monies in such fund, following appropriation by the legislature
   23  and allocation by the director of the budget, shall be available for the
   24  [following purposes:

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07078-01-5
       A. 5430                             2

    1    (a)  for  the  payment of principal, interest, and related expenses on
    2  general obligation bonds, lease purchase payments, or special contractu-
    3  al obligation payments, or for the] purposes of  retiring  or  defeasing
    4  bonds  OR NOTES previously issued, including any accrued interest there-
    5  on, for any state-supported bonding program or programs[, and;
    6    (b)  for  the  funding of capital projects, equipment acquisitions, or
    7  similar expenses which have  been  authorized  by  law  to  be  financed
    8  through the issuance of bonds, notes, or other obligations].
    9    S 2. This act shall take effect immediately.
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