NY A05550

Establishes an annual spending growth cap calculated as the average of inflation rates from the three calendar years immediately prior to the fiscal year in question.

Prohibits the governor from submitting and the legislature from enacting budgets where state operating funds spending increases by a percentage exceeding the annual spending growth cap.

Allows the governor to declare an emergency by executive order and, with a two-thirds legislative supermajority, authorize a budget that exceeds the spending cap during extraordinary, unforeseen circumstances including natural disasters, terrorism, or economic calamity.

Increases the maximum balance of the rainy day reserve fund from 5 percent to 10 percent of the aggregate amount projected to be disbursed from the general fund during the following fiscal year.