A05430 Summary:

BILL NOA05430
 
SAME ASNo Same As
 
SPONSORGiglio
 
COSPNSRRaia
 
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 NOA05430
 
02/23/2015referred to ways and means
01/06/2016referred to ways and means
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A05430 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5430
 
SPONSOR: Giglio (MS)
  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 increas- ing tax burden. Many local governments and school districts, particular- ly 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 legis- lation 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 Comp- troller 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:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5430
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    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    §  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    § 2. This act shall take effect immediately.
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