STATE ASSEMBLYWOMAN JENIFER RAJKUMAR INTRODUCES LEGISLATIVE PACKAGE OF BILLS BRINGING SOUND FISCAL POLICY TO ALBANY

 

GAME-CHANGING BILLS REVOLUTIONIZE BUDGET PROCESS TO DELIVER FISCAL DISCIPLINE, TRANSPARENCY, AND ACCOUNTABILITY FOR TAXPAYER DOLLARS

Assemblywoman Jenifer Rajkumar unveiled her comprehensive fiscal reform package that will change the face of budgeting in New York and ensure responsible management of hundreds of billions of taxpayer dollars. Her bills instill fiscal discipline, ensure balanced budgets, provide unprecedented transparency, and guarantee sound State spending.

Assemblywoman Rajkumar said, “New Yorkers work hard and play by the rules, and they expect their state government to do the same. These groundbreaking reforms will require best bookkeeping practices, transparent budgeting, and responsible spending. They will shine a light on every penny of spending, so New Yorkers know exactly where their money is going. These bills provide a full arsenal of solutions to instill fiscal responsibility and smart budgeting, allowing New York to spend wisely and navigate any financial crisis.”

Assemblywomen Rajkumar’s extensive list of budgetary reforms includes:

Rainy Day Act

So that New York can always pay its bills, Assemblywoman Rajkumar introduced the Rainy Day Act (A10594). This bill will let New York State increase deposits in the Rainy Day Reserve Fund from 25% of spending to 30%, providing ample reserves to plug any future budget deficits. As of now, New York State ranks 45th in reserves as a percentage of operating budget, and the Assemblywoman’s bill will save the State from painful decisions during an economic downturn. The Rainy Day Act also mandates deposits into the reserve fund, and repeals other slush funds used to stabilize the budget.

Better Balanced Budgets

Assemblywoman Rajkumar introduced the Better Balanced Budget Act to hold New York accountable for balancing the budget. Among the bill’s diverse array of tools are quarterly analyses to confirm the State will meet its obligations; a prohibition on accounting gimmicks to hide deficits; and guidelines to show which appropriations correspond to which items of spending.

The Assemblywoman also introduced a Constitutional amendment (A10633) to lock in responsible budgeting for future generations. The amendment requires the State Legislature to pass balanced budgets—a requirement that currently only applies to the Governor’s proposed budget—and sets Constitutional limits on borrowing.

Appropriate Appropriations Act

To bring even more fiscal discipline to Albany, Assemblywoman Rajkumar introduced the Appropriate Appropriations Act (A10632) to eliminate certain appropriations that have little oversight or transparency.  These include lump sum appropriations whose use is not specified in the budget; reappropriating a previous year’s unused appropriation; use of one-time emergency funds for ongoing programs; and “dry appropriations,” where a budget bill grants spending authority without allocating funds for the expenditure. The Act also requires a public database of all grants made by the State.

The Appropriate Appropriations Act puts an end to some irresponsible budget practices. Budget bills frequently carry over agencies’ unused spending authority from one year to the next, resulting in almost a trillion dollars in spending authority for a $237 billion budget. Dry appropriations can create massive unfunded mandates. The Act requires a source of revenue for each expenditure, ending the current practice of budget bills not even identifying whether appropriations have funding allocated for them.

Return on Investment Act

Assemblywoman Rajkumar also introduced the Return on Investment Act (A10612), for the first time providing full accountability of economic development programs. These grants, tax abatements, and other incentives cost New Yorkers over $10 billion a year, yet the benefits are unclear. Some projects have failed to meet expectations: the State granted $13 million to an electronics plant that promised to employ 290 people, only for it to employ 22 people and close in four years. Assemblywoman Rajkumar’s ROI Act will provide comprehensive analyses of all economic development programs to make sure these billions in subsidies are providing a good return for taxpayers.

Mandatory Fiscal Notes for Bills

The final bill in Assemblywoman Rajkumar’s package will require fiscal notes for any Albany bills with budgetary implications. Currently, the legislature passes bills requiring millions in new spending, yet bear a note simply stating, “Fiscal Implications: To be determined.” Some speciously say there is no cost. Assemblywoman Rajkumar’s bill will require actually calculating the fiscal implications, ensuring that her Albany colleagues and all New Yorkers know the price tag of every bill before it goes to a vote.