Bill S5921 Would Protect Conservation Fund

Information as of 1-10-2011

S5921 GRISANTI No Same as
ON FILE: 01/04/12 State Finance
TITLE....Relates to the administration of certain funds and accounts related to the 2011-2012 budget
Currently on Senate Committee Agenda
Senate Standing Committee on Finance
Senator John A. DeFrancisco, Chair
1:00 PM, Monday, January 9, 2012
Room 124 CAP
Currently on Senate Committee Agenda
Senate Standing Committee on Rules
Senator Dean G. Skelos, Chair
January 9, 2012
Room 332 CAP

GRISANTI, GALLIVAN, BALL, MAZIARZ, YOUNG, RITCHIE, O'MARA, MARTINS
Amd Part BB SS12, 12-a & 13, Chap 58/2011
Relates to the administration of certain funds and accounts related to the 2011-2012 budget.

STATE OF NEW YORK

________________________________________________________________________

S5921

2011-2012 Regular Sessions

IN SENATE

December 2, 2011

___________

Introduced by Sens. GRISANTI, GALLIVAN, BALL, MAZIARZ, YOUNG, RITCHIE,

O'MARA -- read twice and ordered printed, and when printed to be

committed to the Committee on Finance

AN ACT to amend part BB of chapter 58 of the laws of 2011 providing for

the administration of certain funds and accounts related to the 2011-

2012 budget, in relation to making technical corrections thereto

The People of the State of New York, represented in Senate and Assem-

bly, do enact as follows:

1 Section 1. Sections 12, 12-a, and 13 of part BB of chapter 58 of the

2 laws of 2011, providing for the administration of certain funds and

3 accounts related to the 2011-2012 budget are amended to read as follows:

4 § 12. Notwithstanding any law to the contrary, and in accordance with

5 section 4 of the state finance law, the comptroller is hereby authorized

6 and directed to transfer, at the request of the director of the budget,

7 up to $500 million from the unencumbered balance of any special revenue

8 fund or account, or combination of funds and accounts, to the general

9 fund. The amounts transferred pursuant to this authorization shall be in

10 addition to any other transfers expressly authorized in the 2011-12

11 budget. Transfers from federal funds, funds contingent upon any matching

12 requirement or other requirement for the receipt of federal funds, debt

13 service funds, capital projects funds, or the community projects fund

14 are not permitted pursuant to this authorization. The director of the

15 budget shall notify both houses of the legislature in writing prior to

16 initiating transfers pursuant to this authorization.

17 § 12-a. Notwithstanding any law to the contrary, and in accordance

18 with section 4 of the state finance law, the comptroller is hereby

19 authorized and directed to transfer, at the request of the director of

20 the budget, up to $38 million from the unencumbered balance of any

21 special revenue fund or account, or combination of funds and accounts,

22 to the community projects fund. The amounts transferred pursuant to this

23 authorization shall be in addition to any other transfers expressly

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD13717-02-1

S. 5921 2

1 authorized in the 2011-12 budget. Transfers from federal funds, funds

2 contingent upon any matching requirement or other requirement for the

3 receipt of federal funds, debt service funds, or capital projects funds

4 are not permitted pursuant to this authorization. The director of the

5 budget shall (a) have [recieved] received a request in [writting] writ-

6 ing from one or both houses of the legislature, and (b) notify both

7 houses of the legislature in writing prior to initiating transfers

8 pursuant to this authorization. The comptroller shall provide the

9 director of the budget, the chair of the senate finance committee, and

10 the chair of the assembly ways and means committee with an accurate

11 accounting and report of any transfers that occur pursuant to this

12 section on or before the fifteenth day of the following month in which

13 such transfers occur.

14 § 13. Notwithstanding any law to the contrary, and in accordance with

15 section 4 of the state finance law, the comptroller is hereby authorized

16 and directed to transfer, at the request of the director of the budget,

17 up to $75 million from the unencumbered balance of any non-general fund

18 or account, or combination of funds and accounts, to the general fund.

19 The amounts transferred pursuant to this authorization shall be equal to

20 those savings achieved in such non-general funds as a result of work-

21 force savings actions and are in addition to any other transfers

22 expressly authorized. Transfers from federal funds, or funds contingent

23 upon any matching requirement or other requirement for the receipt of

24 federal funds, are not permitted pursuant to this authorization. The

25 director of the budget shall notify both houses of the legislature in

26 writing prior to initiating transfers pursuant to this authorization.

27 § 2. This act shall take effect immediately and shall be deemed to

28 have been in full force and effect on the same date and in the same

29 manner as part BB of chapter 58 of the laws of 2011, took effect; and

30 provided, however, that the amendments to sections 12, 12-a, and 13 of

31 part BB of chapter 58 of the laws of 2011 made by section one of this

32 act shall not affect the repeal of such sections and shall expire and be

33 deemed repealed therewith.

NEW YORK STATE SENATE
INTRODUCER'S MEMORANDUM IN SUPPORT
submitted in accordance with Senate Rule VI. Sec 1

BILL NUMBER: S5921

SPONSOR: GRISANTI

TITLE OF BILL:

An act to amend part BB of chapter 58 of the laws of 2011 providing for

the administration of certain funds and accounts related to the

2011-2012 budget, in relation to making technical corrections thereto

PURPOSE:

To bar the transfer of funds from any account contingent upon a matching

requirement for the receipt of federal revenues.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends sections 12, 12-1 and 13 of part BB of the

Article VII budget bill for Education, Labor and Family Assistance to

eliminate the authorization allowing the Director of the Budget to

transfer any unencumbered balance from any fund contingent upon a match-

ing requirement necessary for the receipt and expenditure of federal

funds.

Section 2 provides for an immediate effective date.

EXISTING LAW:

Chapter 58 of the laws of 2011 provided for the transfer of up to $575

million in unencumbered funds from any special revenue fund to the

general fund, and up to $38 million to the community projects fund.

However, transfers from federal funds, capital projects funds, debt

service funds or the community projects fund were exempted from this

authorization.

These transfers were authorized to provide up to $613 million in budget

support for SFY 2011-12.

JUSTIFICATION:

The enacted Education, Labor and Family Assistance budget bill author-

izes the Director of the Budget to transfer excess balances over what is

needed to cover encumbrances for the expenditure of State receipts from

special revenue funds such as the Conservation Fund without limitation.

An unintended consequence of Part BB of Chapter 58 is that certain

federal funds that New York is eligible for use in this and future

fiscal years that are tied to fund balances in certain accounts or

combination of accounts have been placed at risk by the blanket transfer

authorization. Of immediate concern is the imminent loss of $9.13

million in federal Dingell-Johnson Sport Fish Restoration Act funds and

$11.22 million in federal Pittman-Robertson Wildlife Restoration funds.

The United States Fish and Wildlife Service has notified the Department

of Environmental Conservation that, without a statutory change to the

budget transfer authorization, the State is at imminent risk of losing

these federal resources.

These two, and similarly structured, federal programs require a guaran-

teed state matching requirement. The New York State Conservation Fund

balance serves as the match guarantee for the Dingell-Johnson and Pitt-

man-Robertson. Without enactment of this legislation, New York will

forfeit these and many other vital federal resources.

This bill would ensure that these essential assets remain available for

the needs of the citizens of the State.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

Maintenance of at least tens of millions of dollars in federal receipts

for the current fiscal year. None to state funds since sufficient

authorized unencumbered fund balances will remain to reach the expressed

budget targets.

LOCAL FISCAL IMPLICATIONS:

Failure of enactment of this bill will result in at least tens of

millions in federal dollars that will not flow to local jurisdictions

through Aid to Locality payments.

EFFECTIVE DATE:

Immediately and deemed to be in full effect as of the effective date for

part BB of Chapter 58 of the laws of 2011.

NYSCC

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OSWEGO COUNTY

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JEFFERSON COUNTY