2004 Yellow Book
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Change Percent


General Fund 900,018,000 651,131,000 (248,887,000) -27.7%
Special Revenue-Other 99,139,000 102,494,000 3,355,000 3.4%
Special Revenue-Federal 11,556,000 12,419,000 863,000 7.5%

Total for AGENCY SUMMARY: 1,010,713,000 766,044,000 (244,669,000) -24.2%

* 2000-01 through 2002-03 reflect enacted appropriations.
* 2003-04 and 2004-05 reflect Executive recommended appropriations.


Fund Current

All Other Funds: 735 735 0

TOTAL: 735 735 0

Budget Highlights

The Higher Education Services Corporation administers the State's Tuition Assistance Program (TAP), the Federal Family Education Loan Program, and other State and Federal aid programs.

The Higher Education Services Corporation is located in the Education, Labor and Family Assistance appropriation bill.

State Operations

The Executive recommends a total State Operations appropriation of $105,697,000 for the Corporation. This represents a net increase of $4,218,000 above State Fiscal Year (SFY) 2003-04 levels. The increase is attributable to a $863,000 increase in federal support for State Operations, and a $3,355,000 increase in support through Special Revenue Funds. The $863,000 increase is from additional federal funds made available for the Gear-Up Program and the $3,355,000 increase is to cover inflation and increases in fringe benefit costs.

Aid To Localities

The Executive provides an All Funds Aid to Localities appropriation of $660,347,000 reflecting a net decrease of $248,887,000 below SFY 2003-04 levels. This includes an appropriation of $604,233,000 in support of the TAP Program which represents a $259,237,000 reduction from Academic Year 2003-04 funding levels and a $302,400,000 reduction from estimated TAP expenditures in the 2004-05 Academic Year.

The Executive's proposal would alter the TAP Program by creating two components of the TAP Award. First, students would be eligible to receive a TAP base award which is equivalent to only two-thirds of what current law would provide. Students would then be required to self-finance the remaining one-third of their TAP award through Federal and State student loan programs. Upon the completion of an approved college degree program, students would become eligible to receive a TAP Performance Award equal to the one-third up-front reduction of their TAP award inclusive of accrued interest that resulted from the need to enter into additional student loans.

In addition, the Executive proposes to create a new TAP Loan Program of $11,500,000 to ensure that students that have exhausted their Federal student loan eligibility will have the ability to access necessary student loans through this newly created State loan program.

The Executive maintains funding for the Aid for Part-Time Study Program at the SFY 2003-04 level of $14,630,000.

The Executive recommends $20,768,000 for various scholarship and fellowship programs administered by the Corporation, which represents a reduction of $1,150,000 from SFY 2003-04 levels. Although $1,700,000 in new awards will be administered for the new Military Enhanced Recognition, Incentive and Tribute (MERIT) Scholarships, there is a savings of $2,900,000 due to the phasing out of the Regents Health Care Opportunity Scholarships Program, the Regents Professional Opportunity Scholarship Program, and the Regents Physician Loan Forgiveness Program. An additional $4,000,000 to maintain support for the Volunteer Recruitment Service Scholarships Program is also proposed.

The adjusted appropriation includes a recommended deficiency appropriation of $33,900,000 for the Corporation to accommodate a larger than projected enrollment in the TAP Program and higher average award levels.

Article VII

The Executive proposal includes Article VII language providing for the implementation of the one-third reduction of all TAP Awards, the creation of a new TAP Performance Award, and the creation of a new TAP Loan Program.

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