§ 40. Period for which appropriations made. 1. The budget and the budget bills submitted by the governor shall include all appropriations which in the opinion of the governor will be required during the full succeeding fiscal year.

2. (a) No appropriation made at a regular session of the legislature shall, unless the contrary is expressly provided in the act by which such appropriation is made, be available prior to the commencement of the fiscal year for which the budget is adopted at such session, and every appropriation made at such session, except as provided in paragraphs (b), (d), and (e) of this subdivision, shall cease to have force and effect, except as to liabilities already incurred thereunder, at the close of such fiscal year.

(b) Every deficiency appropriation made at a regular session of the legislature which by the express terms of the act by which such appropriation is made shall be available prior to the commencement of the fiscal year for which the budget is adopted at such session shall cease to have force and effect, except as to liabilities already incurred thereunder, at the close of the fiscal year in which such appropriation shall become available.

(c) Every appropriation made at an extraordinary session of the legislature shall, unless the contrary is expressly provided in the act by which such appropriation is made, be available immediately upon the taking effect of such act and shall cease to have force and effect, except as to liabilities already incurred thereunder, at the close of the fiscal year in which such appropriation shall become available.

(d) Every appropriation enacted in the fund type special revenue funds-federal for a grant period which extends beyond March thirty-first of the fiscal year in which the appropriations are enacted shall be available for liabilities incurred during such grant period after such March thirty-first date.

(e) All state operations appropriations made to the city university of New York and the state university of New York shall cease to have force and effect, except as to liabilities already incurred thereunder, as of the thirtieth day of June immediately following the state fiscal year for which they are enacted.

3. Every appropriation for whatever purpose which at the close of the fiscal year shall cease to have force and effect except as to liabilities already incurred thereunder shall as to such liabilities continue in force and effect until the dates specified in paragraphs (a), (b), (c) and (d) of this subdivision, on which dates such appropriation shall lapse and no money shall thereafter be paid out of the state treasury or any of its funds or any of the funds under its management pursuant to such appropriation.

(a) Except for appropriations made to city university of New York and the state university of New York, all state operations appropriations including special revenue funds-federal appropriations continued pursuant to paragraph (d) of subdivision two of this section shall lapse on the thirtieth day of June immediately following the close of the fiscal year. The appropriations made to the city university of New York or the state university of New York shall lapse on the thirtieth day of September immediately following the close of the fiscal year.

(b) All aid to localities appropriations including special revenue funds-federal appropriations continued pursuant to paragraph (d) of subdivision two of this section shall lapse on the fifteenth day of September immediately following the close of the fiscal year.

(c) All capital projects appropriations shall lapse on the fifteenth day of September immediately following the close of the fiscal year.

(d) All other appropriations shall lapse on the fifteenth day of September immediately following the close of the fiscal year.

* 4. Every appropriation made from a fund or account to a department or agency shall be available for the payment of prior years' liabilities in such fund or account for fringe benefits, indirect costs, and telecommunications expenses and expenses for other centralized services fund programs without limit. Every appropriation shall also be available for the payment of prior years' liabilities other than those indicated above, but only to the extent of one-half of one percent of the total amount appropriated to a department or agency in such fund or account.

The provisions of this subdivision shall expire March thirty-first, two thousand twenty-four.

* NB Expires March 31, 2024