AN ACT to amend the state finance law and the legislative law, in relation to legislative action on the budget
As part of the Governor's agenda for budget reform, this bill advances the date for convening the Consensus Revenue Forecasting Conference; provides a timetable for establishment of legislative conference committees to deliberate on the budget; requires the Division of the Budget to prepare a summary for legislators on the financial plan impact of a proposed budget agreement before they vote on changes to the Executive Budget; increases the level of permissible contributions to the Tax Stabilization Reserve Fund ("rainy day" fund); and implements a proposed Constitutional amendment that requires a two-thirds majority of both Houses to approve any tax increase of $50 million or more.
This bill amends the Legislative Law and State Finance Law as follows:
Section 1 advances the date for convening the Consensus Revenue Forecasting Conference from March to February and requires that the participants issue a joint report by March 1 of each year (rather than March 10).
Section 2 requires the Senate and Assembly to appoint conference committees to deliberate on the budget if the Legislature fails to act on the Executive Budget by March 1.
Section 3 requires the Legislature to place on the desks of its members a summary report of the financial plan impact of the proposed budget agreement prior to a vote on the budget bills. The bill directs the Division of the Budget to prepare the summary report upon joint notification of a proposed budget agreement by the Senate and Assembly. It does not require the Division to prepare a summary unless both Houses confirm that they are in agreement and ready to act on the budget.
Section 4 increases the percentage of any cash surplus in the General Fund that can be transferred to the Tax Stabilization Reserve Fund.
Section 5 provides specific guidance on when a two-thirds vote of the Legislature is required for enactment of a revenue bill.
Section 6 provides that the provisions on consensus revenue forecasting (section 1), conference committees (section 2), and financial plan summaries (section three) take effect on April 1, 2000. The provision on "rainy day" fund deposits (section four) takes effect three years after enactment, as provided by Article VII, §17 of the State Constitution. The provision on tax increases (section five) becomes effective on the same date as the concurrent resolution adopted pursuant to Article XIX, § one of the State Constitution.
The sections on conference committees, tax increases requiring a two-thirds vote, and the submission of a financial plan to legislators before a vote on the budget agreement are new. The sections on consensus revenue forecasting and the TSRF amends existing State finance law.
This bill promotes an orderly process for deliberating on the State budget and for timely adoption. Advancing the Consensus Revenue Forecasting Conference and establishing conference committees by March 1 will help ensure that deliberations on the budget will be open and initiated in a timely manner. The publication of a summary for legislators on the financial plan impact of a proposed budget agreement helps to ensure that the budget remains in balance and that legislators fully understand the current and long-term fiscal implications of their actions.
The bill has no direct fiscal implications, but it promotes sound fiscal management practices by permitting the State to deposit more money into the State's "rainy day" reserve and requiring a two-thirds legislative majority to approve any tax increase of $50 million or more.