Bill > S00034

This bill introduces several provisions aimed at increasing transparency and fiscal responsibility regarding state debt and surplus funds. First, it requires that any ballot proposition creating a state debt must include an estimate of the amortization period (the total time it will take to pay off the debt) and the total expected debt service (the total amount of principal and interest payments) until the bonds are fully retired. These details must be prominently displayed on the ballot and in any related state publications. The bill also modifies the tax stabilization reserve fund rules, changing the percentage of surplus funds that can be transferred and adjusting the fund's maximum limit from 2% to 5% of the fiscal year norm. Additionally, the bill mandates that at least 10% of any cash surplus remaining in the general fund must be transferred to a debt reduction reserve fund, which can only be used for retiring or defeasing previously issued state-funded debt. These changes aim to provide voters with more information about state borrowing and to create a more disciplined approach to managing state finances by prioritizing debt reduction. The bill will take effect immediately, with some provisions becoming active three years after enactment.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S34