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CITIZENS UNION
NEW YORK STATE BUDGET REFORM REPORT CARD:
2012 AN IMPROVEMENT BUT STILL AN INCOMPLETE
April 2012
With no messages of necessity used to pass the state’s final budget bills for the first time in years, and the budget enacted one day ahead of
the deadline, New York State’s budget process saw some welcomed improvement in the 2012 budget process compared to recent years.
Though progress was made, the entire state budget process still fell short; the state did not fully meet the modest improvements of the
budget reforms of 2007, and there was no action on further reforms, leaving in place a process that is still too opaque, complicated and
rushed.
This report card reviews the state budget process as conducted in 2012, 2011 and 2010, and their respective adherence to elements of the
2007 reforms. It also points out areas where additional reform is needed to improve the process. This report card builds upon previous
Citizens Union reports on state budget reform, including a report card on the 2008 and 2009 cyclesi, and a December 2008 Issue Brief and
Position Statement on New York State Budget Reform.ii
The 2007 reforms included, among other items, “quick‐start” budget discussions and a March 1st deadline for revenue consensus; itemization
of certain lump‐sum appropriations and prohibition of legislative lump‐sum additions; a requirement for the legislature to pass rules
regarding the formation of joint conference committees and issuance of a schedule of dates for public hearings and meetings; provision of
fiscal impact statements on legislative changes before any vote; executive multiyear financial plans; and authorization of a new “Rainy Day”
fund at up to three percent of General Fund spending.
Citizens Union of the City of New York
299 Broadway, Suite 700 New York, NY 10007‐1976
phone 212‐227‐0342 • fax 212‐227‐0345 • citizens@citizensunion.org • www.citizensunion.org
Peter J.W. Sherwin, Chair • Dick Dadey, Executive Director
Citizens Union Page 2
NYS Budget Reform Report Card April 2012
This report card finds mixed results regarding implementation of major aspects of the 2007 reforms and no action to enact further reforms,
resulting in a budget process that, while improved, continues to be flawed.
Our findings are listed below, which highlight the most recent budget adoption cycle that concluded at the end of March in 2012.
1. While no messages of necessity were used for budget bills in 2012, unlike in 2010 and 2011, other major pieces of legislation with
large fiscal impacts were unfortunately passed with such messages prior to the adoption of the budget, including the Tier 6 Pension
legislation in March 2012 and the income tax overhaul of December 2011.
2. The unfulfilled requirements of the 2007 Budget Reform Act during this year’s budget process were: missing the deadline for the
start of the “quick‐start” budget negotiations in November 2011, the exempting of certain lump‐sum appropriations from itemization
in joint resolutions of the senate and assembly, and the lack of fiscal impact statements for certain budget bills in both houses prior to
votes.
3. There continues to be no movement on other widely‐supported measures to improve the budget process, such as incorporating
performance measurement, requiring the use of Generally Accepted Accounting Principles (GAAP), and the creation of an
Independent Budget Office.
4. The state budget continues to lack adequate transparency, with budget documents hard to decipher for the general public, and no
release of budget data in user‐friendly formats such as spreadsheets to allow for independent analysis.
5. While new member items have not been funded in the budget for the last few years, discretionary funds continue to be available
and are distributed through “reappropriations” of the Community Projects Fund, and other funds have been treated like member
items such as the ”bullet aid” for school districts, and have largely lacked needed public scrutiny.
The spirit and legal requirements of the 2007 reforms must be met and additional budget reforms are still needed if New Yorkers are to hold
state government accountable and trust in the decisions it makes – especially in continued trying fiscal times when tough decisions need to
be made about taxes and spending. Citizens Union urges the Governor and State Legislature to enact Citizens Union’s reform proposals
contained in this report card to enhance budget integrity, improve transparency, and increase efficiency of the budget process.
Citizens Union Page 3
NYS Budget Reform Report Card April 2012
KEY
Thumbs up – progress was made
Thumbs down – reforms were ignored or process continued to be broken (text in italics)
Mixed – some progress or adherence to law, but more work to do
Further action needed – Citizens Union recommendations
BUDGET REFORMS CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
OF 2007 RECOMMENDATIONS
State law was No conference Conference committees were Conference committees Enact changes to the
amended to require committees were used to reconcile some of the were convened and used law to explicitly
that the legislature formed. There different budget proposals of to reconcile the different require the creation
adopt joint rules to was no public each house, though meetings budget proposals. There of joint conference
establish joint discussion of were brief, limiting the role of continued to be a committees and
Use of budget conference smaller pieces of rank and file members. sentiment, however, that joint public
Conference committees. the budget. The Budget negotiations continued major decisions were conference
Committees legislative behind closed doors, largely made behind closed committee
The Senate and
leaders’ meeting, driven by leadership. doors.iii meetings, and
Assembly adopted
therefore, was ensure rank‐and‐file
joint rules
the only forum members have a
establishing
where the budget meaningful role in
conference
was discussed the process.
committees.
publicly.
Reforms did not In spite of several In spite of several legislative In spite of several An independent
create an legislative proposals, no reforms were legislative proposals, no budget office should
Independent Budget proposals, no enacted. reforms were enacted. be established to
Creation of an Office. reforms were conduct economic
Independent enacted. analyses and provide
Budget Office nonpartisan
projections of the
state’s revenues and
expenditures.
Citizens Union Page 4
NYS Budget Reform Report Card April 2012
BUDGET REFORMS OF CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
2007 RECOMMENDATIONS
Law amended to Governor Governor Cuomo released his Governor Cuomo
require earlier Paterson executive budget on February released the executive
“Quick Start” budget released the 1st, the Constitutional budget on January 17th,
discussions among executive budget requirement for the first term the Constitutional
the Executive, on January 19th, of a new governor. requirement for mid‐ There should be full
Assembly and the term governors. public availability of
“Quick Start” budget
Senate in Constitutional all final budget bills
discussions held in fall 2010. “Quick Start” discussions
November, as well requirement for before a scheduled
took place later than
as a March 1st mid‐term vote that will allow
required in 2011; leaders
deadline for revenue governors. sufficient time for
cited volatile markets for
consensus between analysis, discussion,
“Quick Start” the lack of revenue
the three parties. and debate, as well
budget forecasts, and some
discussions held advocates disagreed with as provide better
in fall 2009. the level of uncertainty.iv opportunities for
public participation
Law amended to Amendments to Amendments to the executive Amendments to the and review by rank‐
Increased
require the governor the executive budget were made within 21 executive budget were and‐file members.
Legislative
to make all practical budget were days, but additional made within 21 days, but
Deliberation
efforts to submit all made within 21 amendments were made 30 additional amendments
budget amendments days. days after introduction. were made 30 days after
within 21 days after introduction.
Establish a later start
the submission of
the Executive date for the fiscal
Budget. year in order to
provide more time
Reforms did not In spite of Nearly all votes on final budget In spite of various for deliberation, and
alter the total delayed passage bills occurred within a day of legislative proposals to a more accurate
amount of time of state budget, amendment due to messages establish a later fiscal accounting of tax
available for public some messages of necessity. year start date, no action receipts.
and legislative of necessity were The Senate Rules amended, occurred.
evaluation during used, limiting allowing budget bills to go
the various stages of legislative directly to the floor, bypassing
the budget process. review. the Rules Committee; floor
debate was reduced to 2
minutes per member.
Citizens Union Page 5
NYS Budget Reform Report Card April 2012
BUDGET REFORMS CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
OF 2007 RECOMMENDATIONS
State law was While new While new New member items were not
amended to member items member items included in the budget, but
require that were not included were not funds from previous years
member items be in the budget, the included in the continue to exist in the
itemized in legislature budget, the Community Projects Fund, Sponsoring legislators’
resolutions if not in reappropriated legislature which have been redirected to names should be listed
budget bills (for a past funds, which reappropriated new projects.vii Capital funds along with the itemized
discussion of other were vetoed by past funds, which from previous years also member items they
funds required to Governor were vetoed by continue to exist. sponsored in budget
be itemized, see Paterson.v Governor appropriation bills
Discretionary funding
the section ‘Lump Cuomo.vi during the normal
continues to exist in New York
Sum budget process before
State through other means,
Appropriations’). they are passed,
such as the “bullet aid” for
school districts, and Regional standards should be
Economic Councils funds. viii developed for their
Discretionary The process of awarding these distribution, and
Funding/Member funds has received little public reporting should be
Items scrutiny (for more information, required on their usage.
see the ‘Lump Sum
Appropriations’ section).
Member items should
No requirement for In spite of the In spite of the In spite of the introduction of be equitably distributed
equitable introduction of introduction of reform legislation to require to all members, along
distribution of reform legislation reform legislation equal distribution of funds to with increased
member items. to require equal to require equal members and increased transparency and
distribution of distribution of accountability and accountability.
No requirement
funds to members funds to transparency, no reforms have
that legislators’
and increased members and been enacted.
names be listed
accountability and increased
with their
transparency, no accountability
sponsored member
reforms have been and
items in
enacted. transparency, no
appropriations bills.
reforms have
been enacted.
Citizens Union Page 6
NYS Budget Reform Report Card April 2012
BUDGET REFORMS CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
OF 2007 RECOMMENDATIONS
Budget reforms did Messages of Messages of No messages of necessity The use of messages of
not address necessity were necessity were were used for budget bills, necessity should be
messages of used in both used in both which aged the full three days. limited to when it is
necessity. houses for all houses for nearly evident that a delay in
Major pieces of legislation
twelve budget all budget bills, the Legislature’s action
with large fiscal impacts,
extenders, though excluding the would have significant
however, were passed with
only for certain debt service adverse consequences
messages of necessity, such as
budget bills in the appropriation and the governor
the enactment of Tier 6 and
regular budget bill. presents
other pension reforms in
process: in both documentation of such
In spite of March 2012 and the revision
houses, the need.
legislative of the tax code in December
deficiency budget,
proposals, no 2011.
and in the
reforms were
Use of Messages Assembly the In spite of legislative
enacted.
of Necessityix Public Protection & proposals, no reforms were
General enacted.
Government and
Transportation,
and Economic
Development
Environmental
Protection (TED)
bills.
In spite of
legislative
proposals, no
reforms were
enacted.
Citizens Union Page 7
NYS Budget Reform Report Card April 2012
BUDGET REFORMS CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
OF 2007 RECOMMENDATIONS
Budget reforms did Most state funds Most state funds Most state funds continue to Performance budgeting
not address lack any real lack any real lack any real measure of and outcome
performance measure of measure of performance and measurement should be
budgeting. performance and performance and accountability for their usage, used to help
accountability for accountability for except for limited education policymakers determine
their usage, except their usage, funding. whether programs are
for education except for meeting stated goals
New efforts regarding
funding through education and promote a more
Use of performance for education
Contracts for funding through rational appropriation
Performance funding focus largely on cost‐
Excellence. Contracts for of state funds.
Budgeting to Tie savings and efficiency rather
Excellence.
Funding with In spite of several than performance. Examples
Results legislative In spite of several include performance
proposals, no legislative measurement for teachers in
reforms were proposals, no exchange for federal funds,
enacted. reforms were and competitive grants for
enacted. education.x
In spite of several legislative
proposals, no reforms were
enacted.
Citizens Union Page 8
NYS Budget Reform Report Card April 2012
BUDGET REFORMS CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
OF 2007 RECOMMENDATIONS
Law amended to Legislative Legislative Several lump‐sum
require itemization additions can still additions can still appropriations were exempted
Lump‐sum
of funds for be made in lump be made in lump from the 2007 reform law,
appropriations should
Temporary sum sum allowing the Senate and
disclose the detailed
Assistance for appropriations appropriations Assembly to pass separate
purposes and criteria
Needy Families except in except in resolutions reminiscent of
set forth for their
(TANF), Medicaid, categories denied categories denied member items. Examples of
distribution.
and the by the 2007 budget by the 2007 such lump sums include the
Environmental reforms. budget reforms. new “bullet aid” to schools
Protection Fund. totaling nearly $30 million,
A time limit for the
and smaller pots of domestic
Loophole remains reappropriation of
violence prevention and other
to allow lump‐sum lump‐sums should be
local law enforcement funds.xi
additions by the instituted to decrease
legislature in slush funds and the use
Lump‐sum
budget legislation of such funds as “one‐
Appropriations
provided they are shot” budget gap fillers.
itemized in joint
resolutions passed
after the normal There should be regular
budget process. reporting on lump‐sum
appropriations that
includes detailed
The reforms did not No criteria for No criteria for No criteria for distribution of information regarding
establish criteria distribution of or distribution of or or reporting required for lump‐ funds distributed and
for distributing reporting required reporting sum appropriations. their recipients, and
lump‐sum for lump‐sum required for remaining funds.
appropriations or appropriations. lump‐sum
require reports on appropriations.
their usage.
Citizens Union Page 9
NYS Budget Reform Report Card April 2012
BUDGET REFORMS CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
OF 2007 RECOMMENDATIONS
Law amended to No fiscal impact While fiscal impact Members of the The Governor should
require fiscal statements or statements and Assembly Minority submit a budget
impact statements summary documents summary documents Conference criticized presentation book that
on changes before were used for outlining changes to the lack of fiscal contains a complete and
any vote, legislative changes to the budget legislation impact statements clear financial picture of
executive the budget prior to were largely on for the Assembly state operations and fiscal
multiyear financial adoption. members’ desk at the one‐house budget responsibilities, including
plans, monthly time of the budget’s legislation.xiii Fiscal those of public authorities.
Twelve budget
cash flow passage in the Senate, impact statements
extenders which Budget presentations
projections, and one of the budget bills were not made
enacted cuts and should integrate
assessment of was passed through available on the
policy changes were information regarding the
impact on local committee without Senate floor for
used in the absence expense of tax expenditures
governments and documents available approximately half of
of an on‐time budget projected under current law
state workforce and changes were the budget bills.
through June 2010, and off‐budget items which
levels. described on the floor
all passed using The Governor are financial obligations of
of the Senate.
Increase Reforms did not messages of proposed language the state, but not currently
Integrity in require budget necessity. xii regarding the presented as part of the
Budgeting documents to list unilateral transfer of state’s budget.
the full financial funds in the state
The Governor and
obligations of the operations budget
state with regard which was met with Legislature should examine
to public widespread criticism. models for the NYC
authorities or the The final language budgeting process regarding
impact on allowed transfers for consolidations of services
localities. only back office and functions, including
operations. submission of a
reorganization plan and
Reforms did not In spite of several In spite of several In spite of several required legislative approval
require the use of recommendations recommendations and recommendations of transfers over a certain
Generally and proposals proposals regarding and proposals threshold.xiv
Accepted regarding the use of the use of GAAP, no regarding the use of
Accounting GAAP, no reforms reforms were enacted. GAAP, no reforms Generally Accepted
Principles (GAAP). were enacted. were enacted. Accounting Principles
(GAAP) should be used as
the state’s basis for
accounting.
Citizens Union Page 10
NYS Budget Reform Report Card April 2012
BUDGET REFORMS CITIZENS UNION
REFORM ACTION IN 2010 ACTION IN 2011 ACTION IN 2012
OF 2007 RECOMMENDATIONS
Law amended to Joint conference With the goal of The Governor
require the committees were passing the budget developed an online
legislature to issue never formed, one day early, the engagement website, There should be ample
a budget schedule meaning that the budget was largely Citizens Connect, advance notice prior to
for: (a) public public had little passed via the usage which included scheduling or cancellation
hearings, (b) joint knowledge of budget of messages of information about of budget hearings and
budget conference discussions or necessity which budget meetings and meetings.
committees and opportunity to provided little hearings, held online
(c) the issuance of comment. opportunity for public chats and solicited
final reports. and legislative review. general input, but All budget documents
The use of budget should facilitate and
did not attempt to
extenders passed via The public was encourage public and
provide user‐friendly
messages of temporarily shut out of legislative review by being
summaries of the
necessity limited the viewing galleries of presented in user‐friendly
budget and budget
public and legislative the legislative and consistent formats.
process.xv
Transparency review. chambers during the
and Ease of budget debate.
Public The Legislature should
Understanding Reforms did not Format and Format and Format and
address user‐ presentation of presentation of budget presentation of present changes to the
friendliness of budget bills and bills and other budget bills and Governor’s appropriations
budget other documents was documents was largely other documents was bills in a comparable format
documents. largely not user‐ not user‐friendly. The largely not user‐ with updated financial plan
friendly. The executive budget friendly. The tables and projections.
executive budget summaries provided executive budget
summaries provided only broad overviews, summaries provided
only broad overviews, and documents were only broad The adopted budget bills
and documents were not provided in overviews, and should be reported in the
not provided in formats, such as documents were not same format as proposed in
formats, such as spreadsheets, that provided in formats, the executive budget
spreadsheets, that allowed for such as spreadsheets, presentation.
allowed for independent analysis. that allowed for
independent analysis. independent
analysis.
Citizens Union Page 11
NYS Budget Reform Report Card April 2012
i
Citizens Union’s Budget Reform Report Card for 2008 and 2009 is available at:
http://www.citizensunion.org/www/cu/site/hosting/IssueBriefs/CU%20Budget%20Reform%20Report%20Card%20November%202009.pdf
ii
Citizens Union’s 2008 Issue Brief and Position Statement on State Budget Reform is available at:
http://www.citizensunion.org/www/cu/site/hosting/issuebriefs/2008ib_statebudgetreform.pdf
iii
DeWitt, Karen. “Budget close down nears.” New York Now. March 26, 2012. Available at: http://nynow.org/post/budget‐close‐down‐nears
iv
Gormley, Michael. “Governor Cuomo, New York State Legislature Miss Budget Deadline, City Economic Turmoil.” Associated Press. November 10, 2012.
http://www.huffingtonpost.com/2011/11/10/new‐york‐cuomo‐misses‐budget‐deadline‐2011_n_1086247.html
v
Bridenbach, Michelle. “NY Gov. David Paterson Vetoes Pork Barrel Grants to Dozens of CNY organizations.” Syracuse Post Standard. July 2010. Available at:
http://www.syracuse.com/news/index.ssf/2010/07/ny_gov_david_paterson_vetoes_p.html
vi
Benjamin, Liz. “Cuomo Vetoes Phantom Member Items.” April 2011. Available at: http://www.capitaltonight.com/2011/04/cuomo‐vetoes‐phantom‐member‐items/
vii
Nahmias, Laura. “Pork Resurrection.” March 20, 2012. City and State. Available at: http://www.cityandstateny.com/pork‐resurrection/
viii
Gershman, Jacob, and Fleischer, Lisa. “Pork Decried, Not Dead.” The Wall Street Journal. March 29, 2012. Available at:
http://online.wsj.com/article/SB10001424052702303404704577312161276788318.html
ix
Messages of necessity are issued by the governor to allow bills to be passed immediately without aging for three days.
x
For more information, see: http://www.governor.ny.gov/BuildingaNew1/ny‐students‐first See also the School District Management Efficiency Competitive Grant Program at
http://www.p12.nysed.gov/funding/gc‐12‐010/
xi
For more information, see the Aid to Localities Appropriations Legislation, S.6253 of 2012. The legislation exempts the funding from the 2007 reforms with the following
language: “Notwithstanding any provision of law this appropriation shall be allocated only pursuant to a plan setting forth an itemized list of grantees with the amount to be
received by each, or the methodology for allocating such appropriation...” Available at: http://assembly.state.ny.us/leg/?default_fld=&bn=S06253&term=&Summary=Y&Text=Y
xii
For more information on the use of budget extenders by Governor Paterson, see “Paterson Also Rises” by Reid Fillipant, NY Observer. March 29, 2011. Available at:
http://www.observer.com/2011/politics/paterson‐also‐rises.
xiii
Statement for Assemblymember Mark Johns, March 12, 2012. Available at: http://assembly.state.ny.us/mem/Mark‐Johns/story/46832/
xiv
For more information see Citizens Union’s Position Statement on Budget Transfers, March 2012, available at:
http://www.citizensunion.org/www/cu/site/hosting/Reports/CU_Position_BudgetTransferLanguage_March2012.pdf
xv
See www.governor.ny.gov/citizenconnects/
