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SWEEPING REFORMS PROPOSED FOR STATE BUDGET PROCESS

Governor Eliot Spitzer, Assembly Speaker Sheldon Silver and Majority Leader Joseph Bruno today proposed sweeping reform of the state budget process.

"The drive to improve accountability in state government begins with the budget," said Governor Spitzer. “For decades, the budget process has been characterized by secrecy, gamesmanship and a lack of accountability. These common-sense measures are an excellent first step toward opening up the process and helping ensure timely budgets with greater transparency and accountability.”

Speaker Silver said, "With this agreement, we move our state's budget process into the 21st Century with a strong constitutional emphasis on mutual respect between the executive and legislative branches in forging a fiscal plan for our state. We will continue to rely upon the joint conference committees. We will have a more transparent, more easily understood budget process. We will enact a fair, balanced and on-time state budget this year that addresses the needs of working families in education, health care and job creation."

Majority Leader Bruno said, "These budget reforms will help bring greater openness, transparency and accountability to the state budget and help ensure that it is passed on time. The agreement includes many proposals that the Senate Majority has sought including greater itemization of state spending, budget conference committees, accelerating the budget process and getting an agreement on state revenue projections.

I look forward to seeing how these reforms work this year and we will continue to review the budget process with an eye towards additional reforms in the future."

Highlights of the reform package include the following:

* "Quick start" budget discussions will be required each November and quarterly meetings will be held thereafter between executive and legislature;

* The consensus revenue process will be expedited;

* The State Comptroller will be authorized to resolve disputes over revenue;

* Plain language impact statements will be prepared on a range of program areas, including local governments;

* The legislature will resolve budget bill disagreements by prompt referral to joint conference committee.

* The legislature will be statutorily required to enact a balanced budget;

* The legislature will be required to explain fiscal impacts of changes it makes to the governor's budget bills;

* Lump sum appropriations, including “member items,” will be itemized.

* There will be a new "rainy day" fund, setting aside three percent of the General Fund in reserve, which will be added on top of the current two percent “rainy day” fund for a total of five percent. The new fund can be used in the event of economic downturn or disaster.

Citizens Budget Commission President, Diana Fortuna, said, "It is heartening to see this quick agreement to improve the budget process. With appropriate follow-through and cooperation, this lays the groundwork for a more transparent, timely, and responsible state budget."