SENATE RENEWS CALL FOR BUDGET REFORM

Bruno Decries Assembly Inaction, Cites Need for Accountability

Monday, January 15, 2001

Senate Majority Leader Joseph L. Bruno, citing the need to restore public confidence in New York's budget-making process, today renewed the Senate's call for meaningful budget reform that guarantees an end to budget delays and promotes fiscal stability for the state.

Senator Bruno announced the reintroduction of the Senate Majority's sweeping budget reform plan, which calls for reshaping the state's budget-making process, including shifting the start of the state fiscal year, requiring joint revenue forecasting and imposing a "default" budget as a back-up to ensure a spending plan is in place by the deadline.

"Once again, the Senate Majority is taking the lead in urging real reforms that will restore public confidence in our state budget-making process, and assure the public that we too are tired of the business-as-usual attitude in the other chamber," said Senator Bruno (R-C, Brunswick).

"Unfortunately, while the Assembly charades about reform, its deafening silence on reforming the way we spend taxpayer money speaks volumes about their true commitment to change," Senator Bruno said. "The public is demanding reform and now is the time to act."

"The Senate Majority's budget reform plan is a well-conceived strategy that will end late budgets forever, while at the same time enhancing our state's financial health by embracing structural reforms that will pay dividends to state taxpayers for years to come," said Senate Finance Committee Chairman Ronald B. Stafford (R-C, Plattsburgh).

The Senate last year with bipartisan support overwhelmingly approved its budget reform plan reintroduced today, but the Assembly took no action on it or any other plan. The Senate has proposed budget reform plans for the last six years in a row. Governor Pataki has previously indicated he supports the Senate Majority's plan.

The Senate Majority's eight-point plan would include:

BUDGET REQUESTS (Oct. 15) -- requires agencies to submit individual preliminary budget requests to the Legislature at the same time they are forwarded to the Governor, providing additional time for study and review;

"FAST START," TIMELY FINISH (Nov. 15) -- requires commencement of three-way discussions between the Senate, Assembly and Governor to project expenditures for Medicaid, public assistance, school aid and other costs, as well as begin the process of estimating tax and other revenues for the coming year;

EARLY BUDGET SUBMISSION (Jan. 15) -- requires earlier submission of the Executive Budget and shortens the amendment period from 30 days to 15 days to allow additional time for legislative review;

CONSENSUS REVENUE FORECASTS (Mar. 1) -- requires three-way agreement by March 1 on revenues for the new fiscal year, clearing a major stumbling block for an on-time budget. If the Legislature and Executive fail to agree on a forecast, the independently elected Comptroller is charged with providing a binding forecast of tax, lottery and fee revenues within five days;

BUDGET CONFERENCE COMMITTEES (Mar. 16) -- requires General Conference Committee to establish spending parameters for individual service areas. Individual conference committees would negotiate budgets for assigned agencies;

NEW START OF FISCAL YEAR (May 1) -- the start of the fiscal year would move from April 1 to May 1 to provide adequate time for analysis and discussion of budget proposals. New York currently has the shortest time frame for legislative budget deliberations of the largest states in the nation;

DEFAULT BUDGET (May 1) -- requires that in the absence of an agreed-to budget, the prior year's plan would remain in place after May 1, and spending would be capped at prior year levels;

STRUCTURAL REFORMS/RESERVE FUND -- requires three-year projection of the financial impact of any changes to the Executive Budget by individual conference committees. Additionally, a reserve fund equal to five percent of all state funds would be created to cushion unexpected economic downturns and natural disasters. Such a fund, if it were in place today, would require reserves of approximately $2.8 billion, or four times the current requirement.

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