Filed Under: State | Statewide

New York State Capitol Building

The state budget is the primary focus of the Governor and the Legislature during each session. The budget includes state funding and federal funding received by the state. Most of the funding is divided between State Operations, money used by state government, and Aid to Localities, money distributed by local government. Major environmental funding allocated in the budget process includes the 1996 Clean Air/Clean Water Bond Act and the annual Environmental Protection Fund.

The Governor submits his budget proposal in January, after which he/she has 30 days to make certain changes. The Executive Budget contains three parts: 1) a budget that describes planned spending for the coming fiscal year and anticipated revenues to support the spending; 2) bills containing all proposed appropriations and reappropriations; and, 3) legislation necessary to implement the budget. Thus, the Executive Budget documents consist of three volumes and several bills.

The three volumes of the Governor's budget are available on the Internet (the Division of Budget's Web site is at http://www.budget.state.ny.us/  at the New York State Library, State University libraries and many local libraries around the state. The related bills (Appropriation and Article VII bills) are available in the Senate and Assembly Document Rooms located in the Capitol and the Legislative Office Building in Albany.

The Legislature uses this budget as a starting point, and typically submits proposed changes for revenue and spending, along with new programs they want funded. The Assembly Ways and Means Committee and the Senate Finance Committee hold hearings, analyze the budget proposal, and develop each house's position.

In 1998, the Legislature adopted a new Joint Conference Committee process to organize its budget review. The result is a General Budget Conference Committee, chaired by the Speaker and Majority Leader, which oversees the review, establishes fiscal targets and assigns specific program and fiscal analysis to several conference subcommittees. These subcommittees may also hold public hearings and use other means to collect input and information about spending for various programs. The subcommittees publicly report recommendations back to the Budget Conference Committee, which then makes final decisions and amendments to the Executive Budget. At this point, the entire legislature can pass amended Appropriation and Article VII bills. The final approved budget is supposedly due April 1, the start of the state's fiscal year. The April 1st deadline is rarely met, as back and forth negotiations between the Speaker, Majority Leader and the Governor often go on for months.

For budget items where funds are approved, but the spending details are not, they can be included "subject to a chapter amendment." To spend those funds, a specific bill must be passed later providing details.

The Legislature and the Judiciary draw up their own budgets for their own operations, which includes so-called "legislative initiatives" also known as "member items" i.e., special appropriations earmarked for projects in legislators' home districts. The Governor may use a line item veto to reject certain items, while approving the remainder of the bill.

Public and media scrutiny of the budget is concentrated during the January to April (or later) period of legislative action. In reality, the budget process is ongoing, with agency heads and others lobbying the Governor's office during the preceding months. The Division of Budget plays a central role as it oversees all state income and expenses, assesses the results of program spending, issues quarterly reports and coordinates the budget proposals from all the state agencies, starting in July. The Governor's office meets regularly with the Budget office through the fall to come up with the document presented in January.