CHANGE THE FISCAL YEAR - Changing the fiscal year from April 1 to May 1 would allow more time for legislative deliberation, joint budget conference committees and action on the Executive Budget. This change would give the State a chance to assess what its actual income is as a result of the April 15, income tax deadline. The 2007-08 state fiscal year would begin on April 1 and be extended by one month to run through April 30, 2008. Thereafter, the fiscal year would begin on May 1 and end on April 30.
ESTABLISH A BINDING REVENUE FORECAST MECHANISM - Budget deliberations could be accelerated if agreement were reached on revenues earlier in the process. This bill would allow the Comptroller would establish a binding revenue estimate which would be used only if the Legislature failed to reach an agreement by March 1.
START THE BUDGET PROCESS EARLIER - Requires the Executive, Senate, Assembly
and the Comptroller to begin discussions about revenue forecasts and spending projections for the current and upcoming fiscal years by December 5th each year
Subsequent ongoing review would be required at least twice during the fiscal year.
II. ENHANCE TRANSPARENCY
REQUIRE REVIEW OF TRANSFERS BETWEEN APPROPRIATIONS NOT APPROVED IN THE BUDGET - (Journal Vouchers) Once the Budget is passed, the Division of Budget routinely transfers tens of millions of dollars between funds and appropriations each year that are not subject to public review or legislative oversight. All transfers between funds would be subject to public review.
CREATE AN INDEPENDENT BUDGET OFFICE - The Independent Budget Office would be charged with providing the Legislature and the public with independent analysis relating to: appropriations; revenues; revenue estimates; the fiscal impact of proposed laws; and the performance and effectiveness of State agencies. In addition, the IBO would publish reports to enhance public understanding of the budget process and budget documents.
REQUIRE NEW REPORTING REQUIREMENTS:
-Expand State agency and contract personnel reporting requirements.
-New information technology disclosure requirements.
-Expanded revenue and spending reporting requirements.
III. ENHANCE ACCOUNTABILITY
INSTITUTIONALIZE THE PUBLIC CONFERENCE COMMITTEE PROCESS Individual legislators would have a stronger role in the Budget making process by serving on budget conference committees that have significant influence over the content of appropriation bills. Not in statute - There is an agreement to a joint rule requiring budget conference committees. The Senate will also pass a bill (S.8200 -Robach).
BUILD PERFORMANCE MEASURES INTO THE BUDGET DOCUMENTS - Agency heads should be more accountable for their agency’s performance. More indicators of performance and goals would be included in budget documents, including agency budget requests and the Executive Budget.
PREPARE MORE EXTENSIVE MULTI-YEAR FINANCIAL PLANS AND IMPROVE REPORTING - Require submission along with the Executive budget of a three-year fiscal plan, to be updated 60 days after adoption of a new budget. The Executive would also be required to submit an estimate of the fiscal impact of the Executive Budget on local governments.
ENSURE THAT THE BUDGET SUBMITTED BY THE GOVERNOR ADDRESSES ONLY FISCAL MATTERS AND IS NOT USED TO CIRCUMVENT EXISTING LAW Recent court decisions have made it possible to unilaterally alter laws that under normal circumstances could not be changed without consent of the Legislature. The court’s recent decision as evidenced by the 2006 Executive’s Budget actions have distorted the balance of power between the Governor and the Legislature. The court has given the Executive the power to stretch existing statutes to accommodate a Governor’s budget plan, and to also completely rewrite and create wholly new statutes as part of an appropriation bill. This constitutional amendment would prohibit non budgetary legislation in a budget bill. a most reform will be past again in 2007 (Constitutional Amendment - First passage in both houses in 2006 (S.3195) requires 2nd passage in 2007).
IV. CONTROL SPENDING - ELIMINATE DEFICITS AND REDUCE GAPS
ADOPT ONLY BALANCED BUDGETS - Constitutionally requires the Legislature to estimate the fiscal impact of any additions to the Governor’s Budget and to identify sources of revenue for such additions, in a manner to be determined by law (Constitutional Amendment - First passage in both houses in 2006 (S.3195) requires 2nd passage in 2007).
INCREASE THE RAINY DAY FUND BY 250 PERCENT - To reduce the need for long-term borrowing in the event of an economic downturn the Rainy Day Reserve Fund is increased from two to five percent of State Fund spending (excluding Federal Funds)
.
