NY S67001

Authorizes uniform reduction of up to $1,085,000,000 in undisbursed general fund and state special revenue fund aid to localities if federal enhanced FMAP is not extended by September 1, 2010.

Exempts from reduction: emergency assistance for families, supplemental social security payments, debt service obligations, and binding non-discretionary legal obligations not solely based on state statute or regulation.

Establishes the FMAP Contingency Fund to hold withheld appropriations; allows temporary loans of fund monies to the general fund.

Requires director of the budget to file a written allocation plan and appropriately reduced certificates with the state comptroller and legislative finance committee chairs.

Provides that if enhanced FMAP is extended at assumed levels, all withheld payments shall be restored; if not extended by January 1, 2011, remaining contingency fund monies transfer to the general fund.