BUDGET REFORM

Change is needed in the State Budget process. I feel we must restore public confidence in New York's budget-making process; I have called
for meaningful budget reform to end budget delays and enhance fiscal stability for the state.

I'm backing a budget reform plan, which calls for reshaping the state's budget-making process, 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.

The plan includes, with specific dates for budgetary action:

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.