2004 Yellow Book
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STATE UNIVERSITY OF NEW YORK (Summary) View Details

		Adjusted Appropriation 2003-04	Executive Request 2004-05	Change	Percent Change

AGENCY SUMMARY
	General Fund	1,869,655,000	1,938,884,000	69,229,000	3.7%
	Special Revenue-Other	3,119,951,000	3,466,452,000	346,501,000	11.1%
	Special Revenue-Federal	216,550,000	200,550,000	(16,000,000)	-7.4%
	Capital Projects Fund	35,000,000	175,000,000	140,000,000	400.0%
	Capital Projects Fund - Advances	525,000,000	1,612,000,000	1,087,000,000	207.0%
	State University Residence Hall
	Rehabilitation Fund	335,000,000	0	(335,000,000)	-100.0%
	Internal Service Fund	9,000,000	11,000,000	2,000,000	22.2%
Total for AGENCY SUMMARY:		6,110,156,000	7,403,886,000	1,293,730,000	21.2%

Budget Highlights

The State University of New York (SUNY) was created in 1948. It consists of sixty-four campuses including four university centers, thirteen university colleges, two independent health centers, four specialized colleges of technology, five statutory colleges, six colleges of technology and thirty community colleges.

The State University of New York is included within the Education, Labor and Family Assistance appropriation bill.

State Operations

The Executive recommends funding campus operations at SUNY state operated campuses at $1,892,478,000 for State Fiscal Year (SFY) 2004-05. This represents a $26,127,000 net increase in General Fund Support for State Operated campuses from SFY 2003-04 funding levels. This is comprised of a $6,526,000 or 0.74 percent, increase in General Fund state support for SUNY campus operations, and a $19,601,000, or 2.14 percent, increase in tuition generated revenues.

The Executive proposes Special Revenue Fund-Other appropriations totaling $3,466,452,000, an increase of $352,501,000 above SFY 2003-04 levels. Included within this increase is a $19,601,000 increase to the General Revenue Offset Account. This General Revenue Offset account increase is comprised of the following:

a $4,205,000 increase is due to the inclusion of the SUNY college fee within the General Revenue Offset Account. The SUNY college fee is a system-wide $25 fee on students that was formerly deposited into the Dormitory Income Fund;

an $8,396,000 increase from increased application of indirect cost recoveries due to the removal of waivers on fringe benefit costs for employees funded by Special Revenue Fund – Other appropriations; and

a $7,000,000 appropriation to support potential increases in graduate tuition rates. This $7,000,000 could allow SUNY to raise tuition for graduate or professional programs.

The Executive provides $15,580,000 in support for the Educational Opportunity Program reflecting a five percent reduction from the 2003-04 Academic Year funding levels.

The Executive proposal maintains support for childcare centers for students attending State-operated campuses at $1,498,000, consistent with the levels provided in the 2003-04 Academic Year.

The Executive recommends $13,810,000 to support SUNY central administrative programs, reflecting an increase of $190,000 above the 2003-04 Academic Year.

Exclusive of the General Revenue Offset Account, the Governor proposed to provide $2,463,750,000 for SUNY’s special revenue funding, reflecting a $332,900,000 increase from SFY 2003-04 funding levels. Included in this increase is:

a $140,500,000 increase for SUNY hospitals covering personal, non personal, and fringe benefits assisting their expansion of operations to become more self- sufficient;

an $82,700,000 increase in the SUNY General Income Reimbursable Account. This increase is attributable to a $17,700,000 increase due to inflation, a $40,000,000 increase to cover bonding disbursements of nonpersonal services formerly supported by the General Fund, and a $25,000,000 transfer of funds from the Dormitory Income Fund into the General Income Reimbursable Account;

an $80,000,000 increase reflecting the continuation of the SUNY Stabilization Account, which has a two- year life and is appropriated every other year; and

a $20,000,000 increase in the Dormitory Income Fund Reimbursable Account in part reflecting inflation.

The Executive Proposal includes a provision to utilize short- term borrowing to finance equipment costs that have historically been supported by General Fund revenues. Under this proposal, SUNY would be required to reimburse the General Fund for up to $40,000,000 in equipment costs deemed eligible for short-term financing based upon expected useful life. In addition, the Executive Proposal provides on appropriation of $3,814,000 to reflect the anticipated SFY 2004-05 debt service costs for such expanded use of short-term borrowing. In addition, the proposal has already been implemented retroactively, providing savings of $66,000,000 for the period of February 2002 through August 2003. In addition, the Executive Proposal assumes that this plan will provide General Fund savings of $23,500,000 in SFY 2004-05.

The Executive Proposal provides a $3,000,000 appropriation for the Neil D. Levin Graduate Institute of International Relations and Commerce. This reflects an increase of $2,500,000 from SFY 2003-04 levels.

The Executive Proposal provides a $5,000,000 appropriation for the Academic Equipment Replacement Program. This reflects a $2,488,000 reduction from SFY 2003-04 levels.

The Executive Proposal includes a request for a $6,000,000 deficiency appropriation to accommodate increased collection of outstanding Federal Perkins Loans.

SUNY Health Science Centers

The Executive proposal continues the appropriation structure first enacted in SFY 2001-02 for the SUNY Health Science Centers (HSC’s). In addition, the HSC’s continue to be responsible for the funding of fringe benefits and debt service.

In an effort to recognize the hospitals' costs of operating as a State agency, the Executive continues to provide the HSC’s with a direct State subsidy of $92,600,000 to support their operations. This maintains funding at SFY 2003-04 levels and is based on continuing a previously used methodology for determining the costs of the HSC’s to operate as a State agency.

Finally, the Executive would provide for the transfer of $13,000,000 from the Dormitory Authority to the State University Income Offset Account for the third payment in the State's multi-year plan to retire the accumulated short-term investment pool (STIP) loan to the hospitals.

Aid To Localities

The Executive provides $358,730,000 in aid to community colleges reflecting a decrease of $5,982,000 or 0.9 percent from SFY 2003-04 levels. This includes a net reduction of $18,457,000 in support resulting from the Governor’s proposal to reduce funding of Community College Base Aid by $115 per Full-time Equivalent (FTE) student from $2,300 per FTE to a proposed $2,185 per FTE for the 2004-05 Academic Year. Offsetting this reduction is an increase in support of $7,300,000 to fund projected enrollment growth. In addition, the Executive maintains the 2003-04 $2,776,000 appropriation in support of rental aid for leased space and a $1,000,000 appropriation for contract courses.

The Executive provides $3,670,000 in support of the Cornell Cooperative Extension, reflecting a reduction of $193,000, or 5 percent, from SFY 2003-04 levels.

The Executive recommends maintaining support for childcare centers for students attending SUNY community colleges at $1,065,000, consistent with the levels provided in the 2003-04 Academic Year.

The Executive proposal includes a request for a deficiency appropriation of $2,900,000 to accommodate greater than anticipated enrollment at SUNY community colleges in the 2003-04 Academic Year.

Capital Projects

The Executive proposes new Capital Projects appropriations totaling $1,787,000,000. This represents a proposal for a new multi-year capital investment program for SUNY and provides for State-operated campus facility and infrastructure improvements. Within this multi-year plan, the Governor makes recommendations for the following:

provides appropriation authority for up to $1,637,000,000 in capital projects relating to maintenance and improvements to academic facilities at State-operated campuses. This includes $25,000,000 in hard dollar capital funding and $1,612,000,000 in bonding authorization for such purposes;

maintains bonding authorization of $350,000,000 for various strategic initiatives at the SUNY Health Science Centers enacted in SFY 2003-04; and

maintains $210,000,000 in support for capital projects at SUNY community colleges enacted in SFY 2003-04.

In addition, the Executive proposal would include appropriation authority of $150,000,000 in State Support for Capital Projects occurring on campuses funded solely by external resources.

The Executive proposal assumes approximately $330,000,000 in Capital Project commitments within the first year of the multi-year Capital Plan.

Article VII

The Executive proposes legislation that would authorize the SUNY Board of Trustees to transfer the operations of the SUNY Health Science Centers to one or more private not- for-profit corporations and also directs the SUNY Board of Trustees to develop a plan for such a transfer to be submitted to the Governor and the Legislature on or before October 1, 2004. This process would include the following:

authorizing the SUNY Board of Trustees to establish or contract with one or more not-for-profit corporations pursuant to a plan approved by the Commissioner of Health, for the transfer of the three SUNY hospitals at Brooklyn, Stony Brook and Syracuse;

directing the SUNY Board of Trustees to develop a plan for the transfer of the operations of the SUNY Health Science Centers to private not-for-profit corporations and to consider the following in developing such plan: continuity of employment of hospital staff, access to capital, revenue maximization, alternative governance structures, the teaching and research missions of the hospitals and an implementation process; and

directing the SUNY Board of Trustees to submit a plan to the Governor and the Legislature on or before October 1, 2004.

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