BILL NUMBER: S476
SPONSOR: TEDISCO
 
TITLE OF BILL:
An act to amend the state finance law, in relation to enacting the
"over-expenditure, under-expenditure, transfer notification (OUT) act"
 
PURPOSE:
Requires that the Comptroller be immediately notified of any over-expen-
diture of taxpayer monies and that all leftover funds are allocated to
the general fund to pay down debt.
 
SUMMARY OF PROVISIONS:
Section 1: Cites the act as the "over-expenditure, under-expenditure,
transfer-notification (OUT) act."
Section 2: Amends the state finance law by adding a new section 53-e.
Section 53-e(1): Defines the terms of "state agencies" and "surplus
appropriated funds."
Section 53-e(2): Surplus Appropriated Funds; On April 1st, if a state
agency has a surplus of appropriated funds, the Governor, the Comp-
troller and the Legislature must be notified of the surplus and its
amount prior to April 15th. Once notified, the Governor, the Comptroller
and the Legislature must act on the surplus before May 31st. These enti-
ties may allow the state agency to use the money as they see fit or
transfer the funds to another state agency. Any appropriations proposed
to transfer surplus funds must first be approved by the Comptroller.
Failure to act on the surplus funds will result in the funds being
transferred to the General Fund.
Section 53-e(3): All state agencies must notify the Governor, Comp-
troller and the Legislature if they intend to overspend their budget
before taking such an action. The Governor and Legislature may then
enact legislation allowing such expenditures. Legislation must be
approved by the Comptroller.
 
JUSTIFICATION:
Often times, a state agency will have a small amount of money left over
at the end of the year and unilaterally go on a last-minute spending
binge. Pretty so., this impulse spending adds up to big dollars.
The $168.2 billion New York State budget is really an amalgamation of
hundreds if not thousands of smaller state agency budgets. In fact:
there are more than 70 state agencies, 64 colleges in the State Univer-
sity of New York system and 20 City University of New York campuses.
This is on top of the scores of public authorities that have little
oversight by the legislature or executive branch. Each of these entities
can be divided into smaller agencies, bureaus and departments each with
their own little budget.
Often times state agencies fear that if they come in under-budget
they'll face steep cuts in funding for the following year. It must be
established that State agencies that are fiscally-responsible and spend
only what they have been authorized to spend should be commended, not
penalized.
The O.U.T. (Over-Expenditure/Under-Expenditure/Transfer-Notification) of
Debt Act aims to prevent future attempts to empty agency their offers at
the end of the year to justify their budgets. This act would put a check
to this practice.
This legislation would require that all leftover funds are allocated to
the general fund to pay down debt or reduce the tax burden on our citi-
zens. If state agencies fail to comply, the Comptroller would be
mandated to cancel any unapproved overexpenditures/under-expenditures or
transfers. State agencies do not need to spend taxpayer money on addi-
tional spending for the simple reason that there is still cash in the
account.
If it's important enough to spend tax dollars at the last minute then
it's important enough to get authorization from the elected officials
that actually pass the budget. This is the taxpayers' money and should
be returned to help payoff state debt and reduce property taxes.
This bill won't erase New York's deficit on its own, but it will provide
the kind of spending transparency the state needs to help get out of
debt and save taxpayers from getting fleeced by end-of-year spending
sprees.
 
LEGISLATIVE HISTORY:
02/03/17: S.4141 REFERRED TO FINANCE
01/03/18: S.4141 REFERRED TO FINANCE
01/09/19: S.560 REFERRED TO FINANCE
01/08/20: S.560 REFERRED TO FINANCE
01/06/21: S.218 REFERRED TO FINANCE
01/05/22: S.218 REFERRED TO FINANCE
01/04/23: S.97 REFERRED TO FINANCE
01/03/24: S.97 REFERRED TO FINANCE
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act will take effect immediately.