Section 3957. County financial plans

1. Commencing with the county's two
  thousand six fiscal year, the county executive shall prepare and  submit
  to  the authority a four-year financial plan, and the county executive's
  proposed county budget, not later than the date required for  submission
  of  such  budget to the legislature pursuant to the county charter. Such
  financial plan shall, in addition  to  the  requirements  for  financial
  plans  set  forth in subdivisions two and three of this section, contain
  actions sufficient to ensure with respect to the major  operating  funds
  for  each  fiscal  year  of  the  plan  that  annual aggregate operating
  expenses  for  such  fiscal  year  shall  not  exceed  annual  aggregate
  operating  revenues  for  such  fiscal year. For purposes of determining
  operating revenues in the fiscal years two  thousand  five  through  two
  thousand  nine,  such  plan  may  assume  receipt by the county of ECFSA
  assistance in the  following  collective  amounts  for  each  respective
  fiscal year:
            Amount              Fiscal Year
            2005 amount         2005
            2006 amount         2006
            2007 amount         2007
            2008 amount         2008
            2009 amount         2009
  As used in this subdivision:
  "2005 amount" means that amount expected to be provided by the authority
  to   ensure   balanced   major   operating   fund  operations  upon  its
  determination that the county has taken recurring actions subsequent  to
  June  first,  two  thousand  five  to close at a minimum between ten per
  centum and fifteen per centum of the projected gap.
  Provided, however, for this purpose "projected  gap"  means  the  amount
  identified  by  a  report  of the state comptroller in June two thousand
  five.
  "2006 amount" means that amount expected to be provided by the authority
  to  ensure  balanced  major   operating   fund   operations   upon   its
  determination  that the county has taken recurring actions to close at a
  minimum between thirty-five per centum  and  forty  per  centum  of  the
  projected gap.
  "2007 amount" means that amount expected to be provided by the authority
  to   ensure   balanced   major   operating   fund  operations  upon  its
  determination that the county has taken recurring actions to close at  a
  minimum  between  forty-five  per  centum  and  fifty  per centum of the
  projected gap.
  "2008 amount" means that amount expected to be provided by the authority
  to  ensure  balanced  major   operating   fund   operations   upon   its
  determination  that the county has taken recurring actions to close at a
  minimum between sixty per  centum  and  sixty-five  per  centum  of  the
  projected gap.
  "2009 amount" means that amount expected to be provided by the authority
  to   ensure   balanced   major   operating   fund  operations  upon  its
  determination that the county has taken recurring actions to close at  a
  minimum  between  eighty  per  centum  and eighty-five per centum of the
  projected gap.
    2. Pursuant to the procedures contained in this subdivision, each year
  during an advisory period or during a control period  the  county  shall
  develop,  and  may  from  time  to  time  modify,  taking  into  account
  recommendations of the authority, a four-year  financial  plan  covering
  the  county  and  the  covered  organizations.  Each  financial plan and
  financial  plan  modification  shall  conform  to  the  requirements  of
  paragraph  (a)  of  this  subdivision  and  shall provide that the major
  operating funds of the  county  will  be  balanced  in  accordance  with

  generally  accepted  accounting  principles. The financial plan shall be
  developed and approved, and may  from  time  to  time  be  modified,  in
  accordance with the following procedures:
    (a)  The  county executive shall submit to the authority a certificate
  stating that the budget submitted to the authority  is  consistent  with
  the  financial  plan  submitted  therewith and that operation within the
  budget is feasible.
    (b) Not more than twenty days after submission of a financial plan  or
  more   than   fifteen   days   after  submission  of  a  financial  plan
  modification, the authority shall determine whether the  financial  plan
  or  financial  plan  modification  is  complete  and  complies  with the
  provisions of this section and the other requirements of this title, and
  shall submit its recommendations with respect to the financial  plan  or
  financial  plan  modification  in accordance with the provisions of this
  subdivision.
    (c) Upon the approval by the county of a budget in accordance with the
  provisions of the county charter, the county executive shall submit such
  approved budget and financial  plan  to  the  authority  accompanied  by
  expenditure,  revenue and cash flow projections on a quarterly basis and
  certify to the  authority  that  such  budget  is  consistent  with  the
  financial plan to be submitted to the authority.
    (d)  If  the authority determines that the financial plan or financial
  plan modification provided pursuant to paragraph  (c)  or  (f)  of  this
  subdivision  is  complete  and  complies with the standards set forth in
  this subdivision, the authority shall make a certification to the county
  setting forth revenue estimates agreed to by the authority in accordance
  with such determination.
    (e) The authority shall, in the event it disagrees  with  elements  of
  the  financial  plan  provided  pursuant to paragraph (c) or (f) of this
  subdivision provide notice thereof to the county,  with  copies  to  the
  director  of  the  budget, the state comptroller, the chair of the state
  assembly ways and means committee and the  chair  of  the  state  senate
  finance  committee, if, in the judgment of the authority, such plan: (i)
  is incomplete;  (ii)  fails  to  contain  projections  of  revenues  and
  expenditures  that  are  based on reasonable and appropriate assumptions
  and methods of estimations; (iii) fails to provide  that  operations  of
  the  county  and  the covered organizations will be conducted within the
  cash resources available; or (iv) fails to comply with the provisions of
  this title or other requirements of law.
    (f) After the initial adoption of  an  approved  financial  plan,  the
  revenue  estimates  certified  by  the  authority and the financial plan
  shall be regularly reexamined by the authority in consultation with  the
  county  and  the  covered  organizations  and the county executive shall
  provide a modified financial plan in such detail and  within  such  time
  periods as the authority may require. In the event of reductions in such
  revenue  estimates, or in the event the county or a covered organization
  shall expend funds at a rate that would exceed the aggregate expenditure
  limitation  for  the  county  or  covered  organization  prior  to   the
  expiration  of  the  fiscal  year,  the  county executive shall submit a
  financial plan  modification  to  effect  such  adjustments  in  revenue
  estimates  and  reductions  in total expenditures as may be necessary to
  conform to such  revised  revenue  estimates  or  aggregate  expenditure
  limitations.
    (g)  If,  within  a time period specified by the authority, the county
  fails to make such modifications after reductions in revenue  estimates,
  or  to  provide  a  modified  plan in detail and within such time period
  required by the authority, the authority shall  adopt  a  resolution  so
  finding.

    (h) The county shall amend its budget or shall submit a financial plan
  modification  for  the  approval of the authority such that the county's
  budget and the approved financial plan shall be consistent. In no  event
  shall  the  county  operate  under a budget that is inconsistent with an
  approved financial plan.
    3.  The  financial  plan  shall be in such form and shall contain such
  information for each year during which the financial plan is  in  effect
  as  the  authority may specify, and shall include the county and all the
  covered organizations, and shall, in such detail as the  authority  from
  time  to  time  may  prescribe,  include (a) statements of all estimated
  revenues and of all expenditures and cash flow projections of the county
  and each covered organization, and (b) an accounting of the  expenditure
  of  efficiency incentive grants available to the county for each year of
  the plan.
    4.  The  financial  plan  shall  include  any  information  which  the
  authority  may  request to satisfy itself that: (a) projected employment
  levels, collective bargaining agreements and other actions  relating  to
  employee  costs,  capital  construction  and  such  other matters as the
  authority may specify are consistent with the provisions made  for  such
  obligations  in  the  financial  plan;  (b)  the  county and the covered
  organizations are taking whatever action is necessary  with  respect  to
  programs  mandated  by state and federal law to ensure that expenditures
  for such programs are limited to and covered by the expenditures  stated
  in  the  financial  plan; (c) adequate reserves are provided to maintain
  essential programs in the event  revenues  have  been  overestimated  or
  expenditures  underestimated  for  any  period;  and  (d) the county has
  adequate cash resources to meet its obligations. In addition, except  to
  the  extent  such  reporting  requirements  may  be modified pursuant to
  agreement between the authority and the county,  for  each  fiscal  year
  occurring  during  a  control  period,  or  while  bonds, notes or other
  obligations issued pursuant to this title are  outstanding,  the  county
  executive  shall  prepare  a  quarterly report of summarized budget data
  depicting overall trends, by major  category  within  funds,  of  actual
  revenues  and  budget  expenditures  for  the  entire budget rather than
  individual  line  items,  as  well  as  updated  quarterly   cash   flow
  projections  of  receipts  and disbursements. Such reports shall compare
  revenue estimates and appropriations as set forth in such budget and  in
  the  quarterly  revenue and expenditure projections submitted therewith,
  with the actual revenues and expenditures made  to  date.  Such  reports
  shall  also compare actual receipts and disbursements with the estimates
  contained in the cash flow  projections,  together  with  variances  and
  their  explanation.  All  quarterly  reports  shall  be  accompanied  by
  recommendations from the county executive  to  the  legislature  setting
  forth  any  remedial  action necessary to resolve any unfavorable budget
  variance   including   the   overestimation   of   revenues   and    the
  underestimation  of  appropriations.  These  reports  shall be completed
  within thirty days after the end of each quarter and shall be  submitted
  to the legislature, the authority, the director of the budget, the chair
  of  the  state senate finance committee, the chair of the state assembly
  ways and means committee and the state comptroller. For each fiscal year
  occurring during a control or advisory period or while bonds,  notes  or
  other  obligations  issued  pursuant  to this title are outstanding, the
  county executive shall submit a proposed budget or revision  thereto  to
  the  authority  concurrent with submission to the legislature, and shall
  submit  the  adopted  budget  to  the  authority  immediately  upon  its
  adoption.
    5.  For  each  financial  plan  and  financial plan modification to be
  prepared and submitted by the county executive to the authority pursuant

  to the provisions of  this  section,  the  covered  organizations  shall
  submit  to  the  county such information with respect to their projected
  expenditures, revenues and cash flows for each of the years  covered  by
  such  financial  plan  or  modification  as  the  county executive shall
  determine.