N.Y. State Finance Law § 92-cc: Rainy day reserve fund

§ 92-cc. Rainy day reserve fund. 1. There is hereby established in the

state treasury a fund to be known as the "rainy day reserve fund". Such

fund shall consist of moneys deposited therein and monies shall be

withdrawn from such fund only for the purposes as provided therein.

2. Such fund shall have a maximum balance not to exceed twenty-five

per centum of the aggregate amount projected to be disbursed from the

general fund during the then-current fiscal year. At the request of the

director of the budget, the state comptroller shall transfer monies to

the rainy day reserve fund up to and including an amount equivalent to

fifteen per centum of the aggregate amount projected to be disbursed

from the general fund during the then-current fiscal year, unless such

transfer would increase the rainy day reserve fund to an amount in

excess of twenty-five per centum of the aggregate amount projected to be

disbursed from the general fund during the then-current fiscal year, in

which event such transfer shall be limited to such amount as will

increase the rainy day reserve fund to such twenty-five per centum

limitation.

3. a. The amounts available in such reserve may be used if the

following conditions are met:

(i) Economic downturn. The commissioner of labor shall calculate and

publish, on or before the fifteenth day of each month, a composite index

of business cycle indicators. Such index shall be calculated using

monthly data on New York state private sector employment, average weekly

hours of manufacturing workers, and the unemployment rate prepared by

the department of labor or its successor agency, and total sales tax

collections adjusted for inflation, prepared by the department of

taxation and finance or its successor agency. Such index shall be

adjusted for seasonal variations in accordance with the procedures

issued by the United States Census Bureau or its successor agency. If

the composite index declines for five consecutive months, the

commissioner of labor shall notify the governor, the speaker of the

assembly, the temporary president of the senate, and the minority

leaders of the assembly and the senate. Upon such notification, the

director of the budget may authorize and direct the comptroller to

transfer from the rainy day reserve fund to the general fund such

amounts as the director of the budget deems necessary to meet the

requirements of the state financial plan. The authority to transfer

funds under the provisions of this subdivision shall lapse when the

composite index shall have increased for five consecutive months or

twelve months from the original notification of the commissioner of

labor, whichever occurs earlier. Provided, however, that for every

additional and consecutive monthly decline succeeding the five month

decline so noted by the commissioner of labor, the twelve month lapse

date shall be extended by one additional month; or

(ii) Catastrophic events. In the event of a need to repel invasion,

suppress insurrection, defend the state in war, or to respond to any

other emergency resulting from a disaster, including but not limited to,

a disaster caused by an act of terrorism, the director of the budget may

authorize and direct the comptroller to transfer from the rainy day

reserve fund to the general fund such amounts as the director of the

budget deems necessary to meet the requirements of the state financial

plan.

b. Prior to authorizing any transfer from the rainy day reserve fund

pursuant to the provisions of this section, the director of the budget

shall notify the speaker of the assembly, the temporary president of the

senate, and the minority leaders of the assembly and the senate. Such

letter shall specify the reasons for the transfer and the amount

thereof. Any amounts transferred from the rainy day reserve fund to the

general fund shall be subject to all the repayment provisions of this

section.

4. Any transfer authorized in subdivision three of this section shall

be repaid in cash within a period of three years after the date that

such authority to transfer funds under the provisions of this

subdivision lapses, provided however that any transfer authorized as a

result of a catastrophic event shall be subject to repayment provisions

to be proposed by the governor and implemented by appropriation or

transfer of funds.

5. Moneys in the rainy day reserve fund may be temporarily loaned to

the general fund during any fiscal year in anticipation of the receipt

of revenues from taxes, fees and other sources required to be paid into

the general fund during such fiscal year. Moneys so temporarily loaned

shall be repaid in cash during the same fiscal year.