Meeting of the Board of Regents | November 2009

Executive Summary

Issue for Discussion

The October Fiscal Report is presented for your review, discussion and acceptance.

As we began the third quarter of the 2009-10 State fiscal year, we revisited our expenditure and revenue projections and adjusted them to reflect:

• the start of the new federal fiscal year for programs beginning on October 1,

• the 15 percent increase in professional licensing registration fees that became effective on September 25, 2009,

• higher than projected revenue in the Tuition Reimbursement Account, and

• the 25 percent travel and 11.25 percent nonpersonal service spending reductions of $2,186,000 for the General Fund and $2,813,000 for Special Revenue Funds.  There reductions were imposed by Governor Paterson as part of a $500 million decrease in State operations spending which will help close a projected current year shortfall of approximately $3.2 billion.

An October Variance Report summarizing these adjustments is attached.

Reason(s) for Consideration

              Update on Department State Operations expenditure and revenue projections.

Proposed Handling

              Review, discussion and acceptance.

Procedural History

The October report reflects actual expenditures through the first seven months of the 2009-2010 State fiscal year and projected expenditures through the lapse period ending June 30, 2010.

Background Information

• All Funds - Spending controls continue.
• General Fund – All of our general fund accounts are in structural balance with the exception of the Tenured Teacher Hearing account.
• Special Revenue – Our revenue accounts are in structural balance (allowing for normal reimbursement delays and the planned use of prior year balances) with the exception of the Cultural Education Account due to declining revenues and continued reliance on the account by other agencies. After expending prior year funds, the Archives Partnership Trust (APT) will use sufficient revenue from the APT endowment, pursuant to Chapter 399 of the Laws of 1998, to maintain structural balance.
• Federal Accounts – Our federal accounts are in structural balance.  This report reflects current year activity for two year grant awards.

              Our Budget Coordination staff and I will continue to closely monitor each of these accounts and work with program office fiscal staff and the Deputies to ensure structural balance. 

Recommendation

I recommend that the Board of Regents accept the October 2009 State Education Department Fiscal Report as presented.

Timetable for Implementation

              N/A

Attachment 1

Attachment 2