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Office of the New York State Comptroller

Fiscal Reform

In January, 2006, the Comptroller's Office issued an agenda of 21 reform measures to strengthen New York’s fiscal management practices, as well as an analysis of best fiscal practices of other states and New York City conducted during the past several months.

The agenda is designed to accomplish the following:

Factors influencing the budget process include:

  • Lack of Time. Currently, the Legislature and public have only two and a half months after submission by the Executive to consider a $110 billion budget. Every other state has at least four months.
  • Lack of Access. Currently, one agency, the Division of the Budget, which develops and controls the financial plan, is the only organization with the information and capacity to monitor throughout the year the financial plan that it developed. The Legislature, the Office of the State Comptroller and the public do not have adequate access to the day-to-day or even month-to-month supporting data which details the State’s fiscal plan as the year progresses.
    States with more stringent oversight by multiple entities are more likely to have stronger finances and more responsible long-term planning in the development and enactment stages of the budget process.

Details of the plan are:

Improve Fiscal Responsibility

  • Require a balanced Enacted Budget. Currently, only the proposed Executive Budget must be balanced.
  • Improve out-year financial planning by expanding the current three-year plan to a four-year plan.
  • Modify the Tax Stabilization Reserve Fund by removing the caps and enacting minimums rather than maximums on the balance in the Fund and on deposits into the Fund. If the Fund is too small, it has little value as a protection against bad times.
  • Require monthly cash flow reporting for each of the government fund types. The State is increasingly using other funds to pay for State spending.
  • To ensure that the actual size of the year-end surplus is clear and public, reveal year-end obligations and certify the size of the surplus.

Lengthen the Budget Deliberation Process

  • Change the beginning of the fiscal year to July 1 and establish a May 1 deadline for budget passage.
  • Establish quarterly fiscal status meetings, so everyone knows how the State is doing. This recognizes that budgeting is a year-round process and will help establish the basis for agreement on revenue forecasts.
  • Lengthen the consensus revenue forecast timetable.
  • Require the Comptroller to resolve revenue forecast deadlocks.

Enhance Accountability

  • Require the Legislature to report on any changes it has made to the budget before passage.
  • Require quarterly reporting on the allocation of lump-sum appropriations. More than $1 billion is appropriated through memorandums of understanding with no details regarding expenditures.
  • Improve the legislative report on the budget after passage (the Green Book) by requiring full and uniform reporting of all differences between the proposed executive budget and the final enacted budget.
  • Require public authorities to fully report how they spend State money.

Provide the Public with Better Information

  • Modify the capital plan to include detailed financing and debt service information within a comprehensive project-by-project list.
  • Require a Gap-Closing Report, showing the actual effectiveness and results of gap-closing proposals.
  • Require a Local Government Impact Report, so local governments know how provisions of the budget will directly affect them.
  • Require more Personal Service spending information, especially on people hired through consulting contracts.
  • Tie appropriation bills to the financial plan, linking the planned spending of the appropriations bills to actual expenditures.

Foster Public Participation

  • Constitutionally create a truly Independent Budget Office to provide analysis and reports for the Legislature and the public.
  • Expand the Executive’s budget hearing process to permit more public participation.
  • Require posting of all information on the Internet.