Vote Smart's Synopsis:

Vote to pass a bill that submits a constitutional amendment to the voters that places a cap on state spending, saves excess revenue into a tax stabilization reserve fund, and distributes the remainder to New York resident taxpayers.

Highlights:

• Prohibits the Governor from submitting, and the legislature from acting upon, any appropriations bill that allows the increase of the total state spending amount to exceed either 120 percent or 2 percent of the inflation rate, whichever is lower, except in an emergency (Sec. 1).

• Defines "total state spending" as all state funds that include the following (Sec. 1):
• General funds;
• Special revenue funds;
• Capital project funds; and
• Debt service funds.

• Defines "inflation rate" as the annual percentage of change in the consumer price index in the previous twelve month period (Sec. 1).

• Defines "emergency" as an unforeseen or unexpected event or a combination of circumstances in a given year that requires an immediate fiscal action (Sec. 1).

• Repeals provisions of the state constitution that authorizes the legislature to establish a fund for tax revenue stabilization reserves and to regulate both payments and withdrawals (Sec. 2).

• Amends the state constitution so that if total state revenues are in excess, the state will take half of the excess, deposit it into the tax stabilization reserve fund, and distribute the remaining 50 percent of the excess to New York resident taxpayers in proportion to personal income tax liability (Sec. 2).

Full Bill Text