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S06804 Summary:

BILL NOS06804
 
SAME ASSAME AS A08737
 
SPONSORBENJAMIN
 
COSPNSRJACKSON
 
MLTSPNSR
 
Amd §6-e, Gen Muni L; amd §8, Chap 868 of 1975
 
Excludes certain expenditures supported by monies retained in a municipal contingency and tax stabilization reserve fund from the budget when determining whether the budget is balanced in accordance with generally accepted accounting principles set forth in the state comptroller's uniform system of accounts for municipalities.
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S06804 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6804
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                    October 25, 2019
                                       ___________
 
        Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to amend the general municipal law and the New York state  finan-
          cial  emergency  act for the city of New York, in relation to expendi-
          tures supported by monies retained in a municipal contingency and  tax
          stabilization reserve fund
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph l of subdivision 1 of section 6-e of the  general
     2  municipal  law,  as added by chapter 655 of the laws of 1992, is amended
     3  and a new paragraph o is added to read as follows:
     4    l. "Unanticipated revenue  loss"  means  estimated  revenue  which  is
     5  rendered  unreceivable  because  of  a  change in federal or state laws,
     6  rules or regulations, a court order, judgement or  decree,  an  economic
     7  recession,  or  other  circumstance,  which takes effect or occurs after
     8  final adoption of the annual  budget  and  which  could  not  have  been
     9  reasonably anticipated prior to final adoption of the annual budget.
    10    o. "Economic recession" means two quarters of negative economic growth
    11  as evidenced by a decline in income, employment or spending.
    12    § 2. Subdivisions 3 and 4 of section 6-e of the general municipal law,
    13  subdivision 3 and paragraph d of subdivision 4 as amended by chapter 528
    14  of  the  laws  of  2000 and subdivision 4 as added by chapter 655 of the
    15  laws of 1992, are amended to read as follows:
    16    3. There may be  paid  into  the  contingency  and  tax  stabilization
    17  reserve  fund  such  amounts  as  may  be provided therefor by budgetary
    18  appropriation, unappropriated unreserved fund balance  in  the  eligible
    19  portion  of  the annual budget, and such revenues as are not required by
    20  law to be paid into any other fund or account; provided,  however,  that
    21  no  amount  may  be  appropriated for payment into a contingency and tax
    22  stabilization reserve fund which would cause the balance of the fund  to
    23  exceed  ten percent of the eligible portion of the annual budget for the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14029-02-9

        S. 6804                             2
 
     1  fiscal year for which the appropriation would be made ; provided, howev-
     2  er, that no such limitation shall exist for funds established in a  city
     3  having a population of one million or more.
     4    4.  a.  The moneys in a contingency and tax stabilization reserve fund
     5  may be expended only pursuant to an appropriation for a purpose  author-
     6  ized  by this subdivision. Except as provided in paragraph [e] f of this
     7  subdivision, such an appropriation shall be made only upon the recommen-
     8  dation of the chief executive officer and the adoption of  a  resolution
     9  appropriating  the  recommended  amount  by  at  least two-thirds of the
    10  voting strength of the governing board.
    11    b. The moneys in a contingency and tax stabilization reserve fund  may
    12  be  used  to  finance  an  unanticipated  revenue loss chargeable to the
    13  eligible portion of the annual budget, subject to the following  limita-
    14  tions:
    15    (1)  the  maximum  amount  of  moneys  in the fund that may be used to
    16  finance an unanticipated revenue loss shall equal either the  amount  of
    17  the  revenue  actually  received  for the base year or the amount of the
    18  estimated revenue for the current fiscal year, whichever is less,  minus
    19  the amount of the revenue actually received for the current fiscal year;
    20  and
    21    (2) the moneys in the fund may be used only to finance that portion of
    22  the  unanticipated  revenue  loss  which,  as a matter of law, cannot be
    23  financed with amounts available in any other account or fund.
    24    c. The moneys in a contingency and tax stabilization reserve fund  may
    25  be  used  to  finance  an  unanticipated revenue loss due to an economic
    26  recession chargeable to the  eligible  portion  of  the  annual  budget,
    27  subject to the following limitations:
    28    (1)  the  maximum  amount  of  moneys  in the fund that may be used to
    29  finance an unanticipated revenue loss  due  to  a  recession  shall  not
    30  exceed  one  hundred two percent of expenditures in the base year or the
    31  amount of the estimated expenditures for the current fiscal year, which-
    32  ever is less, minus the amount of the revenue actually received for  the
    33  current fiscal year; and
    34    (2) the moneys in the fund may be used only to finance that portion of
    35  the  unanticipated  revenue  loss  which,  as a matter of law, cannot be
    36  financed with amounts available in any other account or fund.
    37    d. The moneys in a contingency and tax stabilization reserve fund  may
    38  be used to finance an unanticipated expenditure chargeable to the eligi-
    39  ble portion of the annual budget, subject to the following limitations:
    40    (1)  the  maximum  amount  of  moneys  in the fund that may be used to
    41  finance an unanticipated expenditure shall equal the sum of  the  amount
    42  of  the  unanticipated  expenditure and the amount appropriated for that
    43  purpose for the current fiscal year minus either the amount appropriated
    44  for that purpose for the current fiscal year or the  actual  expenditure
    45  for the same purpose in the base year, whichever is greater; and
    46    (2) the moneys in the fund may be used only to finance that portion of
    47  an  unanticipated  expenditure  which,  as  a  matter  of law, cannot be
    48  financed with amounts available in any other account or fund.
    49    [d.] e. The moneys in the contingency and  tax  stabilization  reserve
    50  fund  may  be used to lessen or prevent any projected increase in excess
    51  of two and one-half percent in the amount of the real property tax  levy
    52  needed to finance the eligible portion of the annual budget for the next
    53  succeeding  fiscal  year.  The maximum amount of moneys in the fund that
    54  may be used for this purpose shall  equal  the  difference  between  the
    55  projected  amount of such real property tax levy and one hundred two and
    56  one-half percent of the amount of the real property tax levy  needed  to

        S. 6804                             3
 
     1  finance the eligible portion of the annual budget for the current fiscal
     2  year.
     3    [e.]  f.  When  preparing  the  tentative budget of a municipal corpo-
     4  ration, if the current balance of a contingency  and  tax  stabilization
     5  reserve  fund,  as  shown  by  the statement of the chief fiscal officer
     6  required by subdivision six of this section, exceeds ten percent of  the
     7  eligible  portion of the annual budget for the current fiscal year, such
     8  excess shall be used to reduce the amount of real property taxes  needed
     9  to  finance  the  eligible  portion  of  the  annual budget for the next
    10  succeeding fiscal year; provided,  however,  that  no  such  requirement
    11  shall  exist  for funds established in a city having a population of one
    12  million or more.
    13    § 3. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
    14  868 of the laws of 1975, constituting the New York state financial emer-
    15  gency act for the city of New York, as amended by section 1 of  part  PP
    16  of chapter 56 of the laws of 2010, is amended to read as follows:
    17    a.  (i)  For  its fiscal years ending June thirtieth, nineteen hundred
    18  seventy-nine through June thirtieth, nineteen  hundred  eighty-one,  the
    19  city's  budget  covering all expenditures other than capital items shall
    20  be prepared and balanced so that the results thereof would  not  show  a
    21  deficit  when  reported in accordance with the accounting principles set
    22  forth in the state comptroller's uniform system of accounts for  munici-
    23  palities,  as  the same may be modified by the comptroller, in consulta-
    24  tion with the city comptroller, for application to the city; subject  to
    25  the provision of subdivision four of section three thousand thirty-eight
    26  of  the public authorities law with respect to contributions by the city
    27  or other public employer to any retirement system or  pension  fund  and
    28  subject to the provision of paragraph (c) of subdivision five of section
    29  three  thousand  thirty-eight of the public authorities law with respect
    30  to expense items included in the capital budget of  the  city.  For  the
    31  fiscal  year ending June thirtieth, nineteen hundred eighty-two, and for
    32  each fiscal year thereafter, the city's budget covering all expenditures
    33  other than capital items shall be prepared  and  balanced  so  that  the
    34  results  thereof  would  not  show a deficit when reported in accordance
    35  with generally accepted accounting principles and would  permit  compar-
    36  ison  of the budget with the report of actual financial results prepared
    37  in  accordance  with  generally  accepted  accounting  principles.  With
    38  respect  to  financial  plans  that include the fiscal years ending June
    39  thirtieth, nineteen hundred seventy-nine through June  thirtieth,  nine-
    40  teen  hundred  eighty-one,  the  city's budget covering all expenditures
    41  other than capital items shall be prepared in accordance with  generally
    42  accepted  accounting  principles and there shall be substantial progress
    43  in each such fiscal year towards achieving a city  budget  covering  all
    44  expenditures  other  than  capital  items the results of which would not
    45  show a deficit when  reported  in  accordance  with  generally  accepted
    46  accounting  principles.  The city shall eliminate expense items from its
    47  capital budget not later than the commencement of the fiscal year ending
    48  June thirtieth, nineteen hundred eighty-two. For the fiscal year  ending
    49  June  thirtieth,  nineteen hundred eighty-nine, and for each fiscal year
    50  thereafter, the budgets covering all  expenditures  other  than  capital
    51  items  of  each  of  the  covered  organizations  shall  be prepared and
    52  balanced so that the results thereof  would  not  show  a  deficit  when
    53  reported  in  accordance  with generally accepted accounting principles;
    54  and for each fiscal year  prior  thereto,  there  shall  be  substantial
    55  progress  towards  such  goal.  Notwithstanding  the  foregoing  and the
    56  provisions of any general or special state  law  or  local  law  to  the

        S. 6804                             4
 
     1  contrary,  including  but  not limited to the New York city charter, all
     2  costs that would be capital costs in accordance with generally  accepted
     3  accounting  principles, but for the application of governmental account-
     4  ing  standards  board statement number forty-nine, shall be deemed to be
     5  capital costs for purposes of this chapter and any  other  provision  of
     6  state or local law, including but not limited to the New York city char-
     7  ter, relevant to the treatment of such costs.
     8    (ii)  Expenditures supported by monies retained in a municipal contin-
     9  gency and tax stabilization reserve fund created  pursuant  to,  and  in
    10  accordance  with,  section  six-e  of the general municipal law shall be
    11  excluded from the budget when determining whether the budget is balanced
    12  in accordance with generally accepted accounting principles set forth in
    13  the state comptroller's uniform system of accounts  for  municipalities,
    14  as the same may be modified by the comptroller, in consultation with the
    15  city comptroller.
    16    § 4. This act shall take effect immediately.
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