N.Y. GMU Law § 9

§ 9. Use of tax moneys raised outside constitutional tax limit. 1.\nWhenever any county, city (other than the city of New York), village, or\nschool district which is coterminous with, or partly within, or wholly\nwithin, a city having less than one hundred twenty-five thousand\ninhabitants according to the latest federal census, shall make a direct\nbudgetary appropriation for any fiscal year for\n a. The payment in such year or in any future fiscal year or years of\nall or any part of the cost of an object or purpose for which bonds may\nbe issued, or\n b. The payment of the interest on and principal of indebtedness, and\nthe taxes required for such appropriation are excluded from the tax\nlimitation prescribed by section ten of article eight of the state\nconstitution, the amount so appropriated shall be used only for the\nobject or purpose for which such appropriation was made, except as\notherwise provided in subdivision two of this section.\n 2. Whenever the total amount of any such appropriation is not used for\nthe object or purpose for which made, any unexpended balance therein may\nbe used, in the manner provided and when authorized by law, for any of\nthe following objects or purposes or a combination thereof:\n a. An appropriation for an object or purpose for which bonds may be\nissued;\n b. An appropriation to a reserve fund established pursuant to law for\nthe financing of all or part of the cost of an object or purpose for\nwhich bonds may be issued; or\n c. An appropriation for the payment of the interest on and principal\nof indebtedness, other than indebtedness evidenced by bonds and notes\ndescribed in paragraphs A and D of section five of article eight of the\nstate constitution, or renewals thereof.\n