BILL NUMBER: S34
SPONSOR: TEDISCO
 
TITLE OF BILL:
An act to amend the election law and the state finance law, in relation
to requiring a proposition authorizing the creation of a state debt to
contain an estimate of the debt service payable thereon; and to amend
the state finance law, in relation to requiring publication of an expla-
nation of the proposition authorizing the creation of state debt, depos-
its to the tax stabilization reserve fund, and using surplus moneys to
reduce outstanding state funded debt
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill requires that 10 percent of the surplus at the, and of a
fiscal year shall be used to retire the State's highest cost of debt and
that the amounts that are required to be deposited into the Tax Stabili-
zation Reserve Fund be increased. In addition, this bill would provide
greater accuracy and understanding for the voting public by requiring a
bond act in the ballot proposition to list the total debt expected and
the number of years over which it will be paid. This bill also requires
that any state publication, which is designed to promote awareness, must
also include the estimate of the amortization period and the total
anticipated debt service payable on the
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill adds a new §7-112 to the Election Law to require that any
ballot proposition creating a State debt shall contain an estimate of
the amortization period and total expected debt service payments.
Amends S4-116 of the Election Law to incorporate such reference in
ballot publication requirements. Adds a new S6 to the State Finance Law
to require that any State publications promoting awareness of, or
explaining provisions in, such a proposition shall include the amorti-
zation and total debt information.
This bill increases the amount of money at the end of the fiscal year
that may be deposited into the Tax Stabilization Reserve Fund from 2
percent to 5 percent of the .General Pond spending. This bill requires
that 10 percent of any cash surplus at the end of a fiscal year be
deposited into a new fund for the purpose of retiring the State's high-
est cost debt.
 
JUSTIFICATION:
The State's debt is reaching levels that are unmanageable; these
provisions will help the State to control its level of indebtedness.
Current law provides that ballot propositions must show the principal
amount of proposed debt. This is extremely misleading, as the actual
taxpayer cost of the debt should also include the interest to be paid
over a certain number of years. On long-term debt, interest payments can
more than double the principal amount. State publications often play an
important role in educating the public about ballot issues. Accordingly,
these should show the true total cost of any new debt and the number of
years over which it will be paid.
 
PRIOR, LEGISLATIVE HISTORY:
02/03/17: S.4140 REFERRED
01/03/18: S.4140 REFERRED TO ELECTIONS
01/09/19: S.559 REFERRED TO ELECTIONS
01/08/20: S.559 REFERRED TO ELECTIONS
01/06/21: S.219 REFERRED TO ELECTIONS
01/05/22: S.219 REFERRED TO ELECTIONS
01/04/23: S.43 REFERRED TO ELECTIONS
01/03/24: S.43 REFERRED TO ELECTIONS
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
provisions of section four of this act shall take effect three years
after it shall have become a law.

Statutes affected:
S34: 4-116 election law, 4-116(2) election law