§ 92-CC — Rainy day reserve fund

§ 92-cc. Rainy day reserve fund. 1. There is hereby established in the\nstate treasury a fund to be known as the "rainy day reserve fund". Such\nfund shall consist of moneys deposited therein and monies shall be\nwithdrawn from such fund only for the purposes as provided therein.\n 2. Such fund shall have a maximum balance not to exceed twenty-five\nper centum of the aggregate amount projected to be disbursed from the\ngeneral fund during the then-current fiscal year. At the request of the\ndirector of the budget, the state comptroller shall transfer monies to\nthe rainy day reserve fund up to and including an amount equivalent to\nfifteen per centum of the aggregate amount projected to be disbursed\nfrom the general fund during the then-current fiscal year, unless such\ntransfer would increase the rainy day reserve fund to an amount in\nexcess of twenty-five per centum of the aggregate amount projected to be\ndisbursed from the general fund during the then-current fiscal year, in\nwhich event such transfer shall be limited to such amount as will\nincrease the rainy day reserve fund to such twenty-five per centum\nlimitation.\n 3. a. The amounts available in such reserve may be used if the\nfollowing conditions are met:\n (i) Economic downturn. The commissioner of labor shall calculate and\npublish, on or before the fifteenth day of each month, a composite index\nof business cycle indicators. Such index shall be calculated using\nmonthly data on New York state private sector employment, average weekly\nhours of manufacturing workers, and the unemployment rate prepared by\nthe department of labor or its successor agency, and total sales tax\ncollections adjusted for inflation, prepared by the department of\ntaxation and finance or its successor agency. Such index shall be\nadjusted for seasonal variations in accordance with the procedures\nissued by the United States Census Bureau or its successor agency. If\nthe composite index declines for five consecutive months, the\ncommissioner of labor shall notify the governor, the speaker of the\nassembly, the temporary president of the senate, and the minority\nleaders of the assembly and the senate. Upon such notification, the\ndirector of the budget may authorize and direct the comptroller to\ntransfer from the rainy day reserve fund to the general fund such\namounts as the director of the budget deems necessary to meet the\nrequirements of the state financial plan. The authority to transfer\nfunds under the provisions of this subdivision shall lapse when the\ncomposite index shall have increased for five consecutive months or\ntwelve months from the original notification of the commissioner of\nlabor, whichever occurs earlier. Provided, however, that for every\nadditional and consecutive monthly decline succeeding the five month\ndecline so noted by the commissioner of labor, the twelve month lapse\ndate shall be extended by one additional month; or\n (ii) Catastrophic events. In the event of a need to repel invasion,\nsuppress insurrection, defend the state in war, or to respond to any\nother emergency resulting from a disaster, including but not limited to,\na disaster caused by an act of terrorism, the director of the budget may\nauthorize and direct the comptroller to transfer from the rainy day\nreserve fund to the general fund such amounts as the director of the\nbudget deems necessary to meet the requirements of the state financial\nplan.\n b. Prior to authorizing any transfer from the rainy day reserve fund\npursuant to the provisions of this section, the director of the budget\nshall notify the speaker of the assembly, the temporary president of the\nsenate, and the minority leaders of the assembly and the senate. Such\nletter shall specify the reasons for the transfer and the amount\nthereof. Any amounts transferred from the rainy day reserve fund to the\ngeneral fund shall be subject to all the repayment provisions of this\nsection.\n 4. Any transfer authorized in subdivision three of this section shall\nbe repaid in cash within a period of three years after the date that\nsuch authority to transfer funds under the provisions of this\nsubdivision lapses, provided however that any transfer authorized as a\nresult of a catastrophic event shall be subject to repayment provisions\nto be proposed by the governor and implemented by appropriation or\ntransfer of funds.\n 5. Moneys in the rainy day reserve fund may be temporarily loaned to\nthe general fund during any fiscal year in anticipation of the receipt\nof revenues from taxes, fees and other sources required to be paid into\nthe general fund during such fiscal year. Moneys so temporarily loaned\nshall be repaid in cash during the same fiscal year.\n