Bill > A03537

This bill enacts the Rainy Day Act, which makes several significant changes to how New York manages its fiscal reserves. The bill transfers all funds from the existing tax stabilization reserve fund to a newly expanded rainy day reserve fund and increases the maximum balance of that fund from 25% to 30% of projected general fund disbursements. The bill introduces new mandatory deposit requirements, including an annual deposit of two-thirds of tax receipt growth exceeding 2% and a requirement that at least 10% of any extraordinary monetary settlement over $10 million be deposited into the fund. The legislation also mandates that if mandatory transfers would exceed the 30% fund limit, the excess funds would be directed to the retiree health benefits trust fund. Additionally, the bill prohibits the establishment of any new economic uncertainty funds except through specific legislative action, effectively consolidating such reserves under the rainy day reserve fund. The goal appears to be creating a more robust and standardized approach to managing state fiscal reserves, providing greater flexibility and stability during potential economic downturns.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3537