NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2432
SPONSOR: Giglio JM
 
TITLE OF BILL:
An act to amend the state finance law, in relation to increasing the
amount of money that may be maintained in the tax stabilization reserve
fund
 
PURPOSE OR GENERAL IDEA OF BILL::
Increases the amount allowed by law to the tax stabilization reserve
fund, or "rainy day fund," to 5% of state fiscal year disbursements.
Currently. the amount allowed by law in this fund is 2% of state fiscal
year disbursements.
 
SUMMARY OF PROVISIONS::
Section 1. Subdivisions 3 and 4 of section 92 of the state finance law
shall be amended. Subdivision 3 requires any cash surplus remaining in
the general fund over and above the norm at the close of each fiscal
year be transferred from or retained in such fund. All of such surplus
moneys shall be transferred to the tax stabilization reserve fund. Any
balance of such surplus moneys, thereafter retained in the general fund,
shall be retained in such fund and be available for the reduction of
state taxes. Subdivision 4 requires that in the event that at the close
of any fiscal year the receipts derived from the taxes, fees and other
sources shall fall below the norm for such fiscal year, there shall be
transferred from the tax stabilization reserve fund to the general fund
to the extent that there are sufficient moneys in the tax stabilization
reserve fund, an amount equal to the difference between the norm and the
amount of such receipts.
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 common sense piece of legis-
lation that is only a small step toward solving complicated issues. It
will provide the State with the ability to place more money in the tax
stabilization reserve fund, basically meaning a "rainy day fund" to be
used for the reduction of or an offset to an increase of state taxes.
 
PRIOR LEGISLATIVE HISTORY::
10/20/21 referred to ways and means
01/05/22 referred to ways and means
Subdivisions 3 and 4 of section 92 of the state finance law. as sepa-
rately amended by chapter 405 and 957 of the laws of 1981 provide that
only 2 percent of state fiscal year disbursements may be placed in the
tax stabilization reserve fund.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::
Minimal
 
EFFECTIVE DATE::
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2432
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 increasing the
amount of money that may be maintained in the tax stabilization
reserve fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 3 and 4 of section 92 of the state finance
2 law, as separately amended by chapters 405 and 957 of the laws of 1981,
3 are amended to read as follows:
4 3. At the close of each fiscal year any cash surplus remaining in the
5 general fund over and above the norm for such fiscal year shall be
6 transferred from or retained in such fund as hereinafter in this subdi-
7 vision provided. There shall be transferred to the tax stabilization
8 reserve fund all of such surplus moneys, up to and including an amount
9 equivalent to two-tenths of one per centum of such norm, unless such
10 transfer would increase such reserve fund to an amount in excess of
11 [two] five per centum of the amount of the norm for such fiscal year, in
12 which event such transfer shall be limited to such amount as will
13 increase such reserve fund to such [two] five per centum limitation. Any
14 balance of such surplus moneys, thereafter remaining in the general
15 fund, shall be retained in such fund and be available for the reduction
16 of state taxes.
17 4. In the event that at the close of any fiscal year the receipts
18 derived from the taxes, fees and other sources, required to be paid
19 during such fiscal year into the general fund of the state shall fall
20 below the norm for such fiscal year, there shall be transferred from the
21 tax stabilization reserve fund to the general fund to the extent that
22 there are sufficient moneys in the tax stabilization reserve fund, an
23 amount equal to the difference between the norm and the amount of such
24 receipts. If such transfer reduces the tax stabilization reserve fund to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02824-01-3
A. 2432 2
1 an amount less than [two] five per centum of the norm for such fiscal
2 year, the amount so transferred shall be repaid in cash prior to the
3 computation and payment of any transfer to the fund pursuant to subdivi-
4 sion three of this section in not less than three equal annual install-
5 ments within the period of six years or less next succeeding the date of
6 such transfer; provided, however, that if any such annual installment
7 shall increase such reserve fund to an amount in excess of [two] five
8 per centum of the amount of the norm for the then current fiscal year,
9 such installment shall be limited to such amount as will increase such
10 reserve fund to such [two] five per centum limitation and no further
11 repayment of the whole or any part of such transfer shall be required in
12 any subsequent fiscal year. Repayments to the tax stabilization reserve
13 fund shall be stipulated in annual budget bills.
14 § 2. This act shall take effect immediately.