BILL NO A05430
SAME AS No same as
SPONSOR Giglio (MS)
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
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.
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.
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
PRIOR LEGISLATIVE HISTORY:
2008: A.2711 (Giglio)
2010: A.6518 (Giglio)
2012: A3681 (Giglio)
2014: A6023 (Giglio)
This act shall take effect immediately.
S T A T E O F N E W Y O R K
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
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.
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.