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S04196 Summary:

S04196 Actions:

S04196 Committee Votes:

S04196 Floor Votes:

S04196 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4196
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                      March 4, 2019
                                       ___________
 
        Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government
 
        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 certain
          variations from generally accepted accounting principles as applied to
          the budget and accounts of the city of New York
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  general  municipal  law  is  amended by adding a new
     2  section 25 to read as follows:
     3    § 25.  Treatment  of  capital  costs  and  restricted  fund  balances.
     4  Notwithstanding  the  provisions  of any general or special state law or
     5  local law to the contrary, including but not limited  to  the  New  York
     6  city  charter,  the following shall apply with respect to the budget and
     7  accounts of the city of New York:
     8    1. All costs that would be capital costs in accordance with  generally
     9  accepted  accounting principles, but for the application of governmental
    10  accounting standards board statement number forty-nine, shall be  deemed
    11  to be capital costs for purposes of this chapter and any other provision
    12  of  state  or  local law, including but not limited to the New York city
    13  charter, relevant to the treatment of such costs; and
    14    2. The determination as to the existence of a deficit pursuant to  the
    15  New  York  state financial emergency act for the city of New York, while
    16  such act remains in effect, and any other provision of  state  or  local
    17  law,  including  but  not limited to the New York city charter, shall be
    18  made without regard to changes in restricted fund balances,  as  defined
    19  by  the  governmental  accounting standards board, where restrictions in
    20  relation to such fund balances are imposed by state or  federal  law  or
    21  regulation,  or  otherwise by private or governmental parties other than
    22  the city of New York, and without regard to funds  held  in  the  health
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10407-01-9
        S. 4196                             2
 
     1  stabilization fund, the school crossing guards health insurance fund and
     2  the management benefits fund established by the city of New York.
     3    § 2. Paragraph a of subdivision 1 of section 8 of section 2 of chapter
     4  868 of the laws of 1975, constituting the New York state financial emer-
     5  gency  act  for the city of New York, as amended by section 1 of part PP
     6  of chapter 56 of the laws of 2010, is amended to read as follows:
     7    a. For its fiscal years ending June thirtieth, nineteen hundred seven-
     8  ty-nine through June thirtieth, nineteen hundred eighty-one, the  city's
     9  budget  covering  all  expenditures  other  than  capital items shall be
    10  prepared and balanced so that the results thereof would not show a defi-
    11  cit when reported in accordance with the accounting principles set forth
    12  in the state  comptroller's  uniform  system  of  accounts  for  munici-
    13  palities,  as  the same may be modified by the comptroller, in consulta-
    14  tion with the city comptroller, for application to the city; subject  to
    15  the provision of subdivision four of section three thousand thirty-eight
    16  of  the public authorities law with respect to contributions by the city
    17  or other public employer to any retirement system or  pension  fund  and
    18  subject to the provision of paragraph (c) of subdivision five of section
    19  three  thousand  thirty-eight of the public authorities law with respect
    20  to expense items included in the capital budget of  the  city.  For  the
    21  fiscal  year ending June thirtieth, nineteen hundred eighty-two, and for
    22  each fiscal year thereafter, the city's budget covering all expenditures
    23  other than capital items shall be prepared  and  balanced  so  that  the
    24  results  thereof  would  not  show a deficit when reported in accordance
    25  with generally accepted accounting principles and would  permit  compar-
    26  ison  of the budget with the report of actual financial results prepared
    27  in  accordance  with  generally  accepted  accounting  principles.  With
    28  respect  to  financial  plans  that include the fiscal years ending June
    29  thirtieth, nineteen hundred seventy-nine through June  thirtieth,  nine-
    30  teen  hundred  eighty-one,  the  city's budget covering all expenditures
    31  other than capital items shall be prepared in accordance with  generally
    32  accepted  accounting  principles and there shall be substantial progress
    33  in each such fiscal year towards achieving a city  budget  covering  all
    34  expenditures  other  than  capital  items the results of which would not
    35  show a deficit when  reported  in  accordance  with  generally  accepted
    36  accounting  principles.  The city shall eliminate expense items from its
    37  capital budget not later than the commencement of the fiscal year ending
    38  June thirtieth, nineteen hundred eighty-two. For the fiscal year  ending
    39  June  thirtieth,  nineteen hundred eighty-nine, and for each fiscal year
    40  thereafter, the budgets covering all  expenditures  other  than  capital
    41  items  of  each  of  the  covered  organizations  shall  be prepared and
    42  balanced so that the results thereof  would  not  show  a  deficit  when
    43  reported  in  accordance  with generally accepted accounting principles;
    44  and for each fiscal year  prior  thereto,  there  shall  be  substantial
    45  progress  towards  such  goal.    Notwithstanding  the foregoing and the
    46  provisions of any general or special state  law  or  local  law  to  the
    47  contrary, including but not limited to the New York city charter[,]: (i)
    48  all  costs  that  would  be  capital  costs in accordance with generally
    49  accepted accounting principles, but for the application of  governmental
    50  accounting  standards board statement number forty-nine, shall be deemed
    51  to be capital costs for purposes of this [chapter]  act  and  any  other
    52  provision  of  state  or local law, including but not limited to the New
    53  York city charter, relevant to the treatment of such costs; and (ii) the
    54  determination as to the existence of a deficit pursuant to this act  and
    55  any  other provision of state or local law, including but not limited to
    56  the New York city charter, shall be made without regard  to  changes  in
        S. 4196                             3
 
     1  restricted  fund  balances,  as  defined  by the governmental accounting
     2  standards board, where restrictions in relation to  such  fund  balances
     3  are  imposed  by  state  or  federal  law or regulation, or otherwise by
     4  private  or  governmental  parties  other than the city of New York, and
     5  without regard to funds held  in  the  health  stabilization  fund,  the
     6  school crossing guards health insurance fund and the management benefits
     7  fund established by the city of New York.
     8    § 3. This act shall take effect immediately.