Bill > S01296

This bill establishes an annual spending growth cap for New York state government that limits increases in state operating funds spending. The cap is calculated by averaging the inflation rates from the previous three calendar years, or two percent, whichever is lower. State operating funds are defined as annual disbursements from governmental fund types, excluding federal and capital project funds. The governor must certify that the executive budget does not exceed this cap, and the state comptroller must verify compliance after the budget is enacted. If the spending cap is exceeded, the governor is required to take corrective action to reduce spending. In emergencies, such as natural disasters, terrorist attacks, or economic calamities, the legislature can approve a budget that exceeds the cap with a two-thirds supermajority vote. The governor must declare such an emergency by executive order, specifying the reasons for the declaration. The bill aims to provide a mechanism for controlling state government spending growth while maintaining flexibility for extraordinary circumstances.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1296