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WPCNR’S ADAM IN ALBANY. By New York State District 89 Assemblyman Adam T. Bradley. March 19, 2004: Budget reform is something that I have advocated throughout my career in public service.
I am pleased that the Assembly recently passed a comprehensive reform plan to make New York’s budget process more open, accountable and efficient (A.9615). This plan overhauls how the budget is negotiated and shines light on state spending by making more expenditures subject to budget negotiation checks and balances.
Now conference committees are being held with the Senate to iron out differences in each house’s version of these reforms and agreements have been made on many issues. The Assembly and Senate are closer to agreement on a budget reform package than they have ever been.
The Assembly and Senate are also considering a bill that creates a two-year education spending plan to give schools the information they need to plan timely budgets and prepare programs that meet high standards (A.9711). This bill will help remove the annual fiscal uncertainty and guard against unnecessary education cuts that could force school districts to raise taxes.
In the first year of the Assembly’s “Step Ahead” school budgeting plan, the Legislature would adopt an education budget for the next two fiscal years. Thereafter, the Legislature would adopt the education budget for the following fiscal year, letting school districts know a year in advance how much money they will receive. This will lessen the chance that school districts are forced to raise property taxes because of fiscal uncertainty.
Increasing accountability and timeliness
While discussions are still continuing, many of the Assembly’s proposals have been agreed to, including changing the beginning of the fiscal year from April 1 to May 1 (A.8989). Starting the state’s fiscal year a month later will lead to more accurate revenue forecasts and give the Legislature more time to review the details of the governor’s budget proposal so better decisions can be made.
The Assembly’s reform package would also:
· open hearings on state agency budgets to the public;
· require the governor to include more detail in his budget submission;
· increase the tax stabilization fund – allowing the state to put more money away in “rainy day” funds; and
· withhold the governor’s salary until the budget is passed, in the same way legislators’ salaries are withheld, encouraging the governor to become more actively involved in the budget process (A.8991).
Removing obstacles to budget negotiations
The Assembly’s plan also creates a state legislative budget office to provide objective, non-partisan analysis of state revenues, expenditures and management practices (A.8446-A). The office would be modeled after the Congressional Budget Office and the New York City Independent Budget Office. An independent budget office would make a revenue forecast that could be used to make decisions in a non-partisan manner.
Streamlining state operations and improving oversight
To improve efficiency and save taxpayers’ dollars, the Assembly’s plan would also:
· create a strategic planning and performance measurement system to detail what the state budgets and spends, and determine how effectively and efficiently state agencies are operating (A.8990);
· require additional reporting on the acquisition of information technology to keep officials and the public aware of how much money is being spent on those purchases (A.6977-A); and
· provide state agencies access to information about responsible bidders on state contracts, helping them determine a bidder’s history of contract performance and compliance with laws (A.3730).
To address the lack of accountability within public authorities and public benefit corporations, the Assembly’s plan would also require spending by most authorities involved in state functions to be subject to legislative oversight.
Another portion of the plan creates the Health Care Reform Act State Budget Transition Fund which would receive HCRA revenues and place them under the watch of the state comptroller. More than half of the program, or approximately $2 billion annually, is currently “off-budget” and not subject to the normal financial checks and balances that would ensure accountability. The governor would be required to put this spending “on-budget” by providing appropriations for this program in his budget proposal.
We have a historic opportunity this year to pass a progressive set of budget reforms. I am encouraged by the progress made so far and will continue to work for meaningful reforms. I truly hope we can reach an agreement so New York can have the functional, efficient budget process its taxpayers deserve.