Bill > A02258

This bill amends the state finance law to increase the maximum percentage that can be deposited into the tax stabilization reserve fund from 2% to 4% of the state's annual budget norm. Specifically, the bill changes two key provisions: first, at the end of each fiscal year, surplus money from the general fund can now be transferred to the tax stabilization reserve fund up to four-tenths of one percent (instead of two-tenths), as long as this transfer does not cause the reserve fund to exceed 4% of the annual budget norm. Second, if state tax revenues fall below the budgeted norm in a given year, money can be withdrawn from the tax stabilization reserve fund to make up the difference, with the requirement that any withdrawn funds be repaid over time, ensuring the fund maintains at least 4% of the annual budget norm. The tax stabilization reserve fund acts as a financial cushion, helping the state manage budget fluctuations and maintain fiscal stability. The bill will take effect three years after becoming law, allowing time for implementation and adjustment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2258