STATE OF NEW YORK
________________________________________________________________________
S. 1 A. 2
Second Extraordinary Session
SENATE - ASSEMBLY
July 30, 2010
___________
IN SENATE -- Introduced by COMMITTEE ON RULES -- (at request of the
Governor) -- read twice and ordered printed, and when printed to be
committed to the Committee on Rules
IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of the
Governor) -- read once and referred to the Committee on Ways and Means
AN ACT to amend the state finance law, in relation to establishing the
FMAP contingency fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Notwithstanding any other provision of law to the contrary,
2 to maintain a balanced budget in the event that the federal government
3 does not enact an extension of enhanced Federal Medicaid Assistance
4 Percentages ("FMAP") for the state of New York by September 1, 2010, the
5 amount of all undisbursed general fund and state special revenue fund
6 aid to localities appropriations available for expenditure and disburse-
7 ment on or after September 1, 2010 shall be uniformly reduced by the
8 amount that was undisbursed as of September 1, 2010 to a maximum annual
9 reduction of $1,085,000,000 by the end of the 2010-2011 state fiscal
10 year. The following types of appropriations shall be exempt from uniform
11 reduction: (a) payments for emergency assistance for families and
12 payments for eligible aged, blind and disabled persons related to
13 supplemental social security; (b) any reductions that would violate
14 federal law; (c) payments of debt service and related expenses for which
15 the state is constitutionally obligated to pay debt service or is
16 contractually obligated to pay debt service, subject to an appropri-
17 ation, including where the state has a contingent contractual obli-
18 gation; and (d) binding, non-discretionary legal obligations, except for
19 obligations which are binding solely as a result of state statute or
20 regulation. Such reductions shall take effect on September 1, 2010 and
21 be made in accordance with a written allocation plan prepared by the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12305-01-0
S. 1 2 A. 2
1 director of the budget, which shall be filed with the state comptroller,
2 the chairman of the senate finance committee and the chairman of the
3 assembly ways and means committee. The director of the budget shall
4 prepare appropriately reduced certificates, which shall be filed with
5 the state comptroller, the chairman of the senate finance committee and
6 the chairman of the assembly ways and means committee. Upon request of
7 the director of the budget, the comptroller shall transfer the cash
8 equal to the uniform appropriation reduction to a contingency fund
9 established pursuant to section 99-r of the state finance law to the
10 extent such cash is available. Amounts on deposit in the contingency
11 fund may be temporarily loaned to the general fund. If at any time
12 after the effective date of this section an extension of enhanced FMAP
13 has been enacted by the Federal government in an amount at least as
14 great as the amount assumed in the fiscal year two thousand ten-two
15 thousand eleven financial plan as determined by the director of the
16 budget, no further reductions shall occur and all payment amounts with-
17 held pursuant to this section shall be paid to the recipients from which
18 they were withheld. If an extension to enhanced FMAP is not enacted by
19 November 5, 2010, the governor, temporary president of the senate, and
20 the speaker of the assembly shall cause their respective appropriate
21 personnel to meet to review the impact of the uniform reductions and
22 discuss potential alternative reductions. If an extension of enhanced
23 FMAP is not enacted during the fiscal year, or an extension is enacted
24 in an amount less than the amount assumed in the fiscal year two thou-
25 sand ten-two thousand eleven financial plan as determined by the direc-
26 tor of the budget, the reductions authorized by this section shall
27 continue until the total amount of such reductions is equal to the
28 amount by which the extension differs from the amount assumed in the
29 fiscal year two thousand ten-two thousand eleven financial plan as
30 determined by the director of the budget and, notwithstanding any other
31 provision of law to the contrary, liability for amounts due under an
32 appropriation or other applicable provision of law shall be reduced in
33 the amounts of the payment reduction up to one billion eighty-five
34 million dollars ($1,085,000,000).
35 § 2. The state finance law is amended by adding a new section 99-r to
36 read as follows:
37 § 99-r. FMAP contingency fund. 1. There is hereby established in the
38 state treasury a fund known as the "FMAP contingency fund".
39 2. The fund shall consist of all monies required by law to be trans-
40 ferred to the fund.
41 3. Monies in the fund shall be disbursed, when allocated, for the
42 purpose of making payments that had previously been subject to reduction
43 pursuant to law as a result of federal government failure to enact an
44 extension of Federal Medicaid assistance percentages.
45 4. Moneys in the FMAP contingency fund may be temporarily loaned to
46 the general fund during any fiscal year upon approval of the director of
47 the budget.
48 5. If by January first, two thousand eleven, Federal Medicaid percent-
49 ages are not extended or are extended in an amount that is less than the
50 amount assumed in the fiscal year two thousand ten-two thousand eleven
51 financial plan as determined by the director of the budget, all monies
52 in the fund on such date shall be transferred to the general fund and
53 any amounts deposited in the fund after such date shall be transferred
54 to the general fund upon the request of the director of the budget.
55 § 3. This act shall take effect immediately.
