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A02490 Summary:

BILL NOA02490
 
SAME ASNo Same As
 
SPONSORGiglio JM
 
COSPNSR
 
MLTSPNSR
 
Amd §97-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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A02490 Actions:

BILL NOA02490
 
01/26/2023referred to ways and means
01/03/2024referred to ways and means
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A02490 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2490
 
SPONSOR: Giglio JM
  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 PROVISIONS: Section 1. Section 97-rrr of the state finance law, as amended by section 45 of part H of chapter 56 of the laws of 2000, shall be amended. Paragraph (1) establishes the debt reduction reserve fund, which shall be in the joint custody of the comptroller and the commis- sioner of taxation and finance. Paragraph (2) requires that at the close of each fiscal year, a portion 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. Cash surplus shall be defined as the amount by which general fund receipts in a fiscal year exceed general funds expenditures in such fiscal year. Para- graph (3) states that the monies in such fund shall be available for the payment of principal, interest and related expenses on general obli- gation bonds, lease purchase payments, special contractual obligation payments, for the purposes of retiring or defensing bonds or notes previously issued, for the funding of capital projects, equipment acqui- sitions, or similar authorized expenses. Section 2. This act shall take effect immediately.   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 commonsense 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 Comptroller and the Commissioner of Taxation and Finance   PRIOR LEGISLATIVE HISTORY: 10/20/21 referred to ways and means 01/05/22 referred to ways and means   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Minimal.   EFFECTIVE DATE: This act shall take effect immediately. An act to amend the public offi- cers law, in relation to prohibiting executive sessions for the appoint- ment of elected office.
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A02490 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2490
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 26, 2023
                                       ___________
 
        Introduced  by  M.  of  A. J. M. GIGLIO -- 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 and subdivision 4
     3  as added by section 22-b of part XXX of chapter 59 of the laws of  2017,
     4  is amended to read as follows:
     5    §  97-rrr. Debt reduction reserve fund. 1. There is hereby established
     6  in the joint custody of the comptroller and the commissioner of taxation
     7  and finance a fund to be known as the debt reduction reserve fund.  Such
     8  fund  shall  be  established  as a [capital projects] debt service fund,
     9  provided, however, any balance of moneys  in  such  fund  shall  not  be
    10  transferred  to the general fund pursuant to subdivision four of section
    11  seventy-two of this article.
    12    2. [Such fund shall consist of  all  monies  credited  or  transferred
    13  thereto from the general fund or from any other fund or sources pursuant
    14  to law.] At the close of each fiscal year, a portion of any cash surplus
    15  remaining  in  the  general  fund after the transfer pursuant to section
    16  ninety-two of this article shall be transferred from or retained in such
    17  fund as provided in this subdivision. The portion to be  transferred  to
    18  the  debt  reduction reserve fund shall be equal to five percent of such
    19  surplus for such fiscal year.   For the purposes  of  this  subdivision,
    20  cash  surplus  shall  be  defined  as  the  amount by which general fund
    21  receipts in a fiscal year  exceed  general  fund  expenditures  in  such
    22  fiscal year.
    23    3. The monies in such fund, following appropriation by the legislature
    24  and allocation by the director of the budget, shall be available for the
    25  [following purposes:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01679-01-3

        A. 2490                             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    4.  Any  amounts  disbursed  from such fund shall be excluded from the
    10  calculation of annual spending growth in  state  operating  funds  until
    11  June 30, 2019.
    12    § 2. This act shall take effect immediately.
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