NY A41011

Establishes FMAP contingency fund in state treasury to hold cash withheld from state payments if federal government fails to extend enhanced Medical Assistance Percentages (FMAP) by required deadlines.

Authorizes uniform reduction of up to $1,085,000,000 in state payments to localities and non-exempt appropriations beginning September 16, 2010, with exemptions for public assistance, debt service, court-ordered payments, CUNY senior colleges, and MTA mobility tax payments.

Requires Director of Budget to file written allocation plan detailing reduction methodology and exemptions with state comptroller and legislative finance committee chairs; reductions cease and withheld amounts are repaid if enhanced FMAP extension is enacted by March 31, 2011.

Delays school district aid payments otherwise due in September 2010 to September 30, 2010 for specified education law provisions related to state aid formulas.

Repeals sections 1 and 4 of chapter 100 of the laws of 2010; act expires April 15, 2011 (July 1, 2011 for Medicaid payments).