The state legislature passed legislation to reform New York's budget process. Through bipartisan negotiations the two houses were able to reach an agreement that will bring improved timeliness, enhanced transparency and more accountability.

Senator Frank Padavan, who co-chaired the New York State Senate Task Force on Government Reform, said, "Our budget was late for too many years. For the last two it has been on time and that is in large part due to changes that we made in 2004. I'm elated that even after two successfully negotiated budgets my colleagues realize that there are still problems with the process, enough problems that we were able to come together and pass legislation that truly will reform the budget process."

The new legislation will improve the budget's timeliness by changing the fiscal year from April 1 to May 1 so that the state has a chance to assess its actual income after the April 15 income tax deadline; establishing a binding revenue forecast mechanism saving the legislature valuable deliberation time; and providing an earlier start to the budget process - the executive, legislature and comptroller would be required to begin discussions by Dec. 5 each year.

The legislation will also increase accountability by institutionalizing the Public Conference Committee process, giving individual legislators more of a role in the budget making process; establishing more performance measures to be included in budget bills so that agency heads are more accountable; ensuring the Executive Budget only addresses fiscal matters. A constitutional amendment, this bill will need to be passed again in 2007.

It will control spending, eliminate deficit and reduce gaps by adopting only balanced budgets, requiring the Legislature to estimate the fiscal impact of any additions to the governor's budget and to identify sources of revenue and increasing the Rainy Day Fund by 250 percent in case of an economic downturn.

"The budget is one of the most important things we do in Albany as a Legislature. The reforms, in conjunction with other recent changes, are steps to ensure an on-time budget every single year," Padavan said. "We cannot go back to having one late budget, let alone 20 in a row. I refuse to let that happen. With this legislation we are well on our way to preventing late budgets."

Senator Frank Padavan announced agreement on Timothy's Law legislation that would provide parity in insurance coverage for mental illnesses. The agreement would require insurance companies to cover most mental illnesses and would require coverage for a broad range of mental illnesses and conditions specifically related to children. The legislative agreement is expected to be acted on the next time the Legislature reconvenes.

"We've worked hard to pass this bill in a manner that is fair and provides adequate coverage to New York families," Padavan noted. "As the former chairman of the Mental Hygiene and Addiction Control Committee, I saw firsthand how important this legislation is, how important it is for New York. In fact, I sponsored one of the first pieces of legislation that required mental health coverage in a group policy back in 1977 - this agreement has been a long time coming."

Tom O'Clair, who urged Governor George Pataki to support the bipartisan mental-health parity legislation, added, "After four and a half years, it is gratifying to see the Legislature coming together and recognize the difficulties confronting families who need mental health insurance coverage. I look forward to the day when Timothy's Law is the law, and I urge this bill to be finalized as soon as possible. I am grateful for the efforts of both houses and their staffs for working to make Timothy's Law a reality."

The agreement includes the following provisions:

Coverage for Treatment of Mental Illnesses

The agreement would require insurance companies to cover 30 inpatient days of treatment and 20 outpatient days of treatment for all mental illnesses. The agreement would also require insurance companies to fully cover biologically based mental illnesses, including schizophrenia/psychotic disorders, major depression, bipolar disorder, delusional disorders, panic disorder, obsessive compulsive disorder, bulimia, anorexia and binge eating.

Coverage for Children With Mental Illness

In addition, the agreed upon bill would require insurance coverage for children under age 18 with attention deficit disorder, disruptive behavior disorders or pervasive development disorders where there are serious suicidal symptoms or other life-threatening self-destructive behaviors; significant psychotic symptoms (hallucinations, delusion, bizarre behaviors); behavior caused by emotional disturbances that place the child at risk of causing personal injury or significant property damage; or behavior caused by emotional disturbances that place the child at substantial risk of removal from the household.

To address cost concerns raised by small businesses, the agreement directs the state Superintendent of Insurance to develop a methodology that would hold businesses with 50 or fewer employees harmless from any increase in insurance premiums that result from this measure.

The bill would also require the state Insurance Department and the Office of Mental Health to conduct a two year study to determine the effectiveness and impact of mental health parity legislation in New York and other states. When enacted, the bill would take effect Jan. 1, 2007 and sunset Dec. 31, 2009, to provide for an opportunity to amend the law based on the findings and recommendations of the study.