S04043 Summary:

Amd Art 7 SS1 - 7, 11 - 13, 16 & Art 4 S7, rpld & add Art 7 S17; add Art 7 S20, Constn
Substantially revises provisions of the constitution relating to the state's budget and finances; provides for an independent budget office; bases the budget on expenditures and anticipated receipts.
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S04043 Actions:

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S04043 Floor Votes:

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S04043 Text:

                STATE OF NEW YORK
                               2005-2006 Regular Sessions
                    IN SENATE
                                      April 6, 2005
        Introduced  by  Sen.  SPANO  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary
        proposing amendments to article VII and section 7 of article IV  of  the
          constitution,  in  relation  to  modifying  provisions for the state's

          finances and the state's budget and to repeal section  17  of  article
          VII of the constitution relating to tax stabilization funds
     1    Section  1. Resolved (if the Assembly concur), That section 1 of arti-
     2  cle 7 of the constitution be amended to read as follows:
     3    Section 1. By November first  of  each  proceeding  budget  period,  a
     4  preliminary  anticipated  receipts forecast shall be issued by the comp-
     5  troller and the independent budget office. By  December  first  of  each
     6  proceeding  budget  year,  the comptroller shall certify and transmit to
     7  the governor and the legislature the actual and unencumbered moneys  and
     8  receipts  anticipated  to  be  available  in the state treasury. For the
     9  preparation of the budget, the head of each department of state  govern-

    10  ment,  except  the legislature and judiciary, shall furnish the governor
    11  such estimates and information in such form and at  such  times  as  the
    12  governor may require, and, at such times, shall forthwith provide copies
    13  of  [which  shall forthwith be furnished] such estimates and information
    14  to the appropriate committees of the legislature and make such estimates
    15  and information available to the public.  The governor shall hold  hear-
    16  ings  thereon  at which the governor may require the attendance of heads
    17  of departments and their subordinates.   Designated  representatives  of
    18  such  committees shall be entitled to attend the hearings thereon and to
    19  make inquiry concerning any part thereof. If  the  anticipated  receipts
    20  forecasts  cannot be agreed upon by the two houses of the legislature by

    21  the tenth of March, the anticipated receipts forecasts provided  by  the
    22  independent budget office shall be binding.
    23    The  governor  shall  hold hearings by the fifteenth of February, in a
    24  manner prescribed by law, on the capital needs of the state,  and  shall
    25  submit  to the legislature an assessment of capital assets and needs, at
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 4043                             2
     1  such times and in such manner prescribed  by  law.  Within  thirty  days
     2  following  the submission of the budget to the legislature, the governor

     3  shall submit a detailed, multi-year capital program and  financing  plan
     4  to the legislature, as provided by law.
     5    Itemized  estimates  of the financial needs of the legislature, certi-
     6  fied by the presiding officer of  each  house,  and  of  the  judiciary,
     7  approved by the court of appeals and certified by the chief judge of the
     8  court  of  appeals,  shall be transmitted to the governor not later than
     9  the first day of December in each year for inclusion in the budget with-
    10  out revision but with such recommendations  as  the  governor  may  deem
    11  proper.   Copies of the itemized estimates of the financial needs of the
    12  judiciary also shall forthwith be transmitted to the appropriate commit-
    13  tees of the legislature.
    14    § 2. Resolved (if the Assembly concur), That section 2 of article 7 of
    15  the constitution be amended to read as follows:

    16    § 2. Annually, on or before the first day of  February  in  each  year
    17  following the year [fixed by the constitution for the election of gover-
    18  nor  and lieutenant governor] in which the governor is elected, provided
    19  such governor did not hold the office of governor at  the  time  of  the
    20  election,  and  on or before [the second Tuesday following the first day
    21  of the annual meeting of the  legislature]  January  fifteenth,  in  all
    22  other  years,  the  governor  shall  submit  to the legislature a budget
    23  containing a complete plan of expenditures proposed to  be  made  before
    24  the  close of the ensuing fiscal year and all moneys [and revenues esti-
    25  mated] available and anticipated receipts certified by  the  comptroller

    26  to  be  available therefor, together with an explanation of the basis of
    27  such estimates and recommendations as to proposed legislation,  if  any,
    28  which  the  governor may deem necessary to provide moneys and [revenues]
    29  receipts sufficient to meet such proposed expenditures.  It  shall  also
    30  contain  such  other recommendations and information as the governor may
    31  deem proper and such additional information as may be required by law.
    32    § 3. Resolved (if the Assembly concur), That section 3 of article 7 of
    33  the constitution be amended to read as follows:
    34    § 3. At the time of submitting  the  budget  to  the  legislature  the
    35  governor  shall  submit  a  bill  or  bills  containing all the proposed
    36  [appropriations and reappropriations] expenditures included in the budg-
    37  et and the proposed legislation, if any, recommended therein.

    38    The governor may at any time within [thirty] twenty-one days thereaft-
    39  er and, with the consent of the legislature,  at  any  time  before  the
    40  adjournment  thereof,  amend  or supplement the budget and submit amend-
    41  ments to any bills submitted by him or her or submit supplemental bills.
    42    The governor and the heads of departments shall have the right, and it
    43  shall be the duty of the heads of departments when requested  by  either
    44  house  of the legislature or an appropriate committee thereof, to appear
    45  and be heard in respect to the budget during the consideration  thereof,
    46  and to answer inquiries relevant thereto. The procedure for such appear-
    47  ances and inquiries shall be provided by law.
    48    No expenditure shall provide any language which attempts to modify any

    49  general,  special or local law, or which attempts to create an exception
    50  to any such law.
    51    § 4. Resolved (if the Assembly concur), That section 4 of article 7 of
    52  the constitution be amended to read as follows:
    53    § 4. The legislature may not alter an [appropriation] expenditure bill
    54  submitted by the governor except to strike out or reduce  items  or  all
    55  such  conditions  contained  therein,  but  it  may add thereto items of
    56  [appropriation] expenditure provided  that  such  additions  are  stated

        S. 4043                             3
     1  separately  and distinctly from the original items of the bill and refer
     2  each to a single object or purpose. None of  the  restrictions  of  this

     3  section,  however,  shall apply to [appropriations] expenditures for the
     4  legislature or judiciary.
     5    [Such  an  appropriation]  An  expenditure  bill making an expenditure
     6  solely for the purpose of meeting the legal requirements of the  state's
     7  debt  service  and  lease purchase payments or other special contractual
     8  obligations shall, when passed by both houses, be  [a]  law  immediately
     9  without  further  action  by  the governor, except that [appropriations]
    10  separate items added to the governor's bills by the legislature shall be
    11  subject to the governor's approval as provided in section 7  of  article
    12  IV  and  except  that expenditures for the legislature and judiciary and

    13  separate items added to the governor's bills by the legislature shall be
    14  subject to approval of the governor as provided in section 7 of  article
    15  IV.
    16    Action by the legislature on the expenditure bills and proposed legis-
    17  lation,  if  any, submitted by the governor shall not result in expendi-
    18  tures for the ensuing fiscal year being in excess of moneys  and  antic-
    19  ipated  receipts  certified  by the comptroller to be available for such
    20  fiscal year, as provided by  law.  The  comptroller  shall  certify  and
    21  ensure  that each expenditure bill and proposed legislation shall not be
    22  in excess of moneys and anticipated receipts available for  such  fiscal
    23  year.
    24    § 5. Resolved (if the Assembly concur), That section 5 of article 7 of

    25  the constitution be amended to read as follows:
    26    §  5.  Neither  house of the legislature shall consider any other bill
    27  making an [appropriation]  expenditure  until  all  the  [appropriation]
    28  expenditure  bills  submitted  by  the  governor shall have been finally
    29  acted on by both houses, except on message from the governor  certifying
    30  to the necessity of the immediate passage of such a bill.
    31    If, by April fifteenth, the legislature has not finally acted upon all
    32  of the expenditure bills submitted by the governor for such fiscal year,
    33  a  contingency  budget,  as  the legislature shall provide by law, shall
    34  take effect without further action by the legislature or  the  governor;
    35  provided,  however,  that expenditures for the legislature and judiciary

    36  and separate items added to the  governor's  bills  by  the  legislature
    37  shall be subject to approval of the governor as provided in section 7 of
    38  article  IV.  The contingency budget shall provide the same expenditures
    39  as were enacted or otherwise became law for  the  immediately  preceding
    40  fiscal  year,  and  expenditure  and  anticipated receipts provisions in
    41  effect for the immediately preceding fiscal year shall remain in  effect
    42  until  the conclusion of the contingency period. Those provisions in the
    43  contingency budget not altered by the legislature shall remain in effect
    44  until such provisions are reenacted, repealed or  superseded  by  subse-
    45  quent legislation or the commencement of the next fiscal year.

    46    § 6. Resolved (if the Assembly concur), That section 6 of article 7 of
    47  the constitution be amended to read as follows:
    48    §  6.  Except for [appropriations] expenditures contained in the bills
    49  submitted by the governor and in a supplemental [appropriation] expendi-
    50  ture bill for the support of government,  no  [appropriations]  expendi-
    51  tures shall be made except by separate bills each for a single object or
    52  purpose,  and  such  bills  shall not contain statutory changes or other
    53  statutory language other than such language specifically related to  the
    54  expenditure  of  such expenditures. All such bills and such supplemental
    55  [appropriation] expenditure bill shall  be  subject  to  the  governor's

    56  approval as provided in section 7 of article IV.

        S. 4043                             4
     1    No provision shall be embraced in any [appropriation] expenditure bill
     2  submitted  by  the  governor  or  in  such  supplemental [appropriation]
     3  expenditure bill unless  it  relates  specifically  to  some  particular
     4  [appropriation] expenditure in the bill, and any such provision shall be
     5  limited in its operation to such [appropriation] expenditure.
     6    § 7. Resolved (if the Assembly concur), That section 7 of article 7 of
     7  the constitution be amended to read as follows:
     8    §  7.  No money shall ever be paid out of the state treasury or any of
     9  its funds, or any of the funds under its management, except in pursuance

    10  of an [appropriation] expenditure by law; nor  unless  such  payment  be
    11  made  within  two  years  next after the passage of such [appropriation]
    12  expenditure act; and every such law making a new [appropriation] expend-
    13  iture or continuing or reviving an  [appropriation]  expenditure,  shall
    14  distinctly  specify  the  sum [appropriated] of the expenditure, and the
    15  object or purpose to which it is to be applied;  and  it  shall  not  be
    16  sufficient for such law to refer to any other law to fix such sum.
    17    §  8.  Resolved (if the Assembly concur), That section 11 of article 7
    18  of the constitution be amended to read as follows:
    19    § 11. Except the debts or refunding debts specified in sections 9,  10

    20  and  13  of this article, no debt shall be hereafter contracted by or in
    21  behalf of the state, unless such debt shall be authorized  by  law,  for
    22  some single work or [purpose] multiple work or purposes, to be distinct-
    23  ly  specified therein[. No]; provided that no such law shall take effect
    24  until it shall, at a  general  election,  have  been  submitted  to  the
    25  people,  and  have  received  a  majority  of all the votes cast for and
    26  against it at such election nor shall it be submitted  to  be  voted  on
    27  within  three months after its passage nor at any general election [when
    28  any other law or any  bill  shall  be  submitted  to  be  voted  for  or
    29  against].  The  state  shall  not  enter into any borrowing arrangement,

    30  including any contract, lease or other similar agreement, whether or not
    31  on a contingent basis, for the purposes of making payments of  principal
    32  or  interest  on indebtedness of the state or any municipality, individ-
    33  ual, or public or private corporation.
    34    The legislature may, at any time after the approval of such law by the
    35  people, if no debt shall have  been  contracted  in  pursuance  thereof,
    36  repeal  the same; and may at any time, by law, forbid the contracting of
    37  any further debt or liability under such law.  
    38    § 9. Resolved (if the Assembly concur), That subdivision 8 of  section
    39  12 of article 7 of the constitution be amended to read as follows:
    40    8.  No  appropriation shall be required for [disbursement] expenditure
    41  of money, or income earned thereon, from any sinking fund created pursu-

    42  ant to this section for the purpose of paying principal of and  interest
    43  on the obligations for which such fund was created, except that interest
    44  shall  be paid from any such fund only if, and to the extent that, it is
    45  not payable annually and contributions on account of such interest  were
    46  made thereto.
    47    § 10. Resolved (if the Assembly concur), That subdivision 3 of section
    48  13 of article 7 of the constitution be amended to read as follows:
    49    3.  Proceeds  of  refunding  obligations  shall be deposited in escrow
    50  funds which shall be maintained and managed by the state comptroller  or
    51  by an agent or trustee designated by the state comptroller and no legis-
    52  lative [appropriation] expenditure shall be required for disbursement of
    53  money, or income earned thereon, from such escrow funds for the purposes
    54  enumerated in this section.

    55    §  11. Resolved (if the Assembly concur), That section 16 of article 7
    56  of the constitution be amended to read as follows:

        S. 4043                             5
     1    § 16.  The  legislature  shall  annually  provide  by  [appropriation]
     2  expenditure  for  the  payment  of the interest upon and installments of
     3  principal of all debts or refunding debts created on behalf of the state
     4  except those contracted under section 9 of this  article,  as  the  same
     5  shall  fall  due,  and  for the contribution to all of the sinking funds
     6  created by law, of the amounts annually  to  be  contributed  under  the
     7  provisions  of  section 12, 13 or 15 of this article. If at any time the
     8  legislature shall fail to make any such [appropriation] expenditure, the

     9  comptroller shall set apart from the first revenues thereafter received,
    10  applicable to the general fund of the state, a  sum  sufficient  to  pay
    11  such interest, installments of principal, or contributions to such sink-
    12  ing  fund,  as  the  case may be, and shall so apply the moneys thus set
    13  apart. The comptroller may be required  to  set  aside  and  apply  such
    14  revenues as aforesaid, at the suit of any holder of such bonds.
    15    Notwithstanding  the  foregoing  provisions of this section, the comp-
    16  troller may covenant with the purchasers of any state  obligations  that
    17  they  shall have no further rights against the state for payment of such
    18  obligations or any interest thereon after an amount  or  amounts  deter-
    19  mined in accordance with the provisions of such covenant is deposited in
    20  a described fund or with a named or described agency or trustee. In such

    21  case,  this  section  shall  have no further application with respect to
    22  payment of such obligations or any  interest  thereon  after  the  comp-
    23  troller has complied with the prescribed conditions of such covenant.
    24    The  state  shall have limited authority to issue revenue bonds as the
    25  legislature shall provide by law.
    26    § 12. Resolved (if the Assembly concur), That section 17 of article  7
    27  of the constitution be REPEALED and a new section 17 be added to read as
    28  follows:
    29    §  17.  There is hereby established in the state treasury a fund to be
    30  known as the fiscal stabilization reserve fund. Such fund shall  consist
    31  of  moneys  deposited  therein,  and moneys shall be withdrawn from such
    32  fund only for the purposes as provided  herein.  For  each  fiscal  year

    33  commencing on or after May first, two thousand eight, an amount shall be
    34  transferred from the general fund and deposited in the fiscal stabiliza-
    35  tion reserve fund which shall be calculated as one percent of all moneys
    36  deposited  into  the  state treasury, excluding federal funds, fiduciary
    37  funds and bond proceeds, during the immediately preceding  fiscal  year,
    38  reduced  by  the  amount  that the sum of the balance of the fund at the
    39  beginning of the fiscal year and one percent of all the moneys deposited
    40  into the state treasury during the  immediately  preceding  fiscal  year
    41  exceeds  five  percent  of the moneys excluding federal funds, fiduciary
    42  funds and bond proceeds deposited into the  state  treasury  during  the

    43  immediately  preceding  fiscal  year.  Moneys  available  in  the fiscal
    44  stabilization reserve fund shall be withdrawn from the fund  and  trans-
    45  ferred  to  the general fund at the end of any fiscal year in the amount
    46  that moneys deposited in the general fund during  such  fiscal  year  is
    47  less than the amount paid from the general fund during such fiscal year,
    48  provided  that  the  amount  transferred  shall not exceed the amount of
    49  moneys available in the fiscal stabilization reserve fund.
    50    This section shall not apply in  cases  of  invasion,  suppression  of
    51  insurrection,  or  defense of the state in war, or suppression of forest
    52  fires.
    53    § 13. Resolved (if the Assembly concur), That article 7 of the consti-

    54  tution be amended by adding a new section 20 to read as follows:

        S. 4043                             6
     1    § 20.  Independent budget office. There is hereby established an inde-
     2  pendent budget office to provide  independent  analysis  of  fiscal  and
     3  economic conditions.
     4    This  section  shall  take  effect one year after it shall have become
     5  law.
     6    § 14. Resolved (if the Assembly concur), That section 7 of  article  4
     7  of the constitution be amended to read as follows:
     8    § 7. Every bill which shall have passed the senate and assembly shall,
     9  before  it  becomes a law, be presented to the governor; if the governor
    10  approve, he or she shall sign it; but if not, he or she shall return  it
    11  with  his  or  her objections to the house in which it shall have origi-

    12  nated, which shall enter the objections at large  on  the  journal,  and
    13  proceed  to  reconsider it. If after such reconsideration, two-thirds of
    14  the members elected to that house shall agree to pass the bill, it shall
    15  be sent together with the objections, to the other house,  by  which  it
    16  shall  likewise  be  reconsidered;  and if approved by two-thirds of the
    17  members elected to that house, it shall become a law notwithstanding the
    18  objections of the governor. In all such cases the votes in  both  houses
    19  shall  be  determined  by  yeas  and  nays, and the names of the members
    20  voting shall be entered on the journal of each  house  respectively.  If
    21  any  bill shall not be returned by the governor within ten days (Sundays
    22  excepted) after it shall have been presented to him  or  her,  the  same
    23  shall  be a law in like manner as if he or she had signed it, unless the

    24  legislature shall, by their adjournment, prevent its  return,  in  which
    25  case  it shall not become a law without the approval of the governor. No
    26  bill shall become a law after the final adjournment of the  legislature,
    27  unless  approved  by the governor within thirty days after such adjourn-
    28  ment. If any bill presented to the governor  contain  several  items  of
    29  [appropriation]  expenditure of money, the governor may object to one or
    30  more of such [items] expenditures while approving of the  other  portion
    31  of  the bill. In such case the governor shall append to the bill, at the
    32  time of signing it, a statement of the items to which he or she objects;
    33  and the [appropriation]  expenditure  so  objected  to  shall  not  take
    34  effect.  If  the  legislature be in session, he or she shall transmit to

    35  the house in which the bill originated a copy of such statement, and the
    36  [items] expenditures  objected  to  shall  be  separately  reconsidered.
    37  Either house of the legislature may reconsider the governor's objections
    38  first.  If  the  house  that  was not of original jurisdiction wishes to
    39  reconsider the objections first, such house may recall the bill from the
    40  house of original jurisdiction. If on reconsideration  one  or  more  of
    41  such  [items]  expenditures  be  approved  by  two-thirds of the members
    42  elected to each house, the same shall be part of the law,  notwithstand-
    43  ing  the objections of the governor. All the provisions of this section,
    44  in relation to bills not approved by the governor, shall apply in  cases

    45  in  which  he  or  she  shall  withhold  approval from any item or items
    46  contained in a bill [appropriating] expending money.
    47    § 15. Resolved (if the Assembly concur), That the foregoing amendments
    48  be referred to the first regular legislative session convening after the
    49  next succeeding general election of members of  the  assembly,  and,  in
    50  conformity  with  section  1  of  article  19  of  the  constitution, be
    51  published for 3 months previous to the time of such election.
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