State Senate passes spending cap backed by Ranzenhofer

Press release:

The New York State Senate has passed legislation (S365) to enact into law a permanent cap on state spending. The bill would further increase savings from a self-imposed restraint that has already saved taxpayers a cumulative $31 billion since the 2010-11 budget. Senator Ranzenhofer voted in favor of the proposal.

“A state spending cap ensures fiscal discipline and saves taxpayers billions of dollars,” Ranzenhofer said. “Enacting a long-lasting limit on state expenditures would allow taxpayers to keep more of their hard-earned dollars.”

Since 2010, six on-time budgets have restricted spending growth at or below 2 percent. Maintaining this level of fiscal responsibility has fostered major investments in education by abolishing the Gap Elimination Adjustment (GEA) budget cuts, infrastructure projects by delivering Upstate’s fair share of state transportation dollars, and economic development projects to create jobs. 

The legislation would control spending to a three-year rolling average of inflation and increase the maximum capacity to the state’s rainy day fund. This approach helps end the historic pattern of “boom and bust” cycle budgeting.

The bill will be sent to the State Assembly.