The Honorable the Members of the Board of Regents

Executive Summary

Issue for Discussion

The March Fiscal Report is presented for review, discussion and acceptance.  We have received no USNY grants since the last Fiscal Report.

The March report is the final report for the 2007-2008 State fiscal year.   Under tight spending controls, the Department ended the year within earlier projections except for adjustments to the Professions account outlined in the attached Variance Report.

              The March report also reflects the unanticipated transfer of $2,050,000 from Special Revenue accounts to the General Fund pursuant to Chapter 57 of the Laws of 2007, Part T, Section 15 authorizing the Director of the Budget to transfer, across all State agencies, up to $100 million from the unencumbered balance of any special revenue accounts in addition to any other authorized transfers.  Transfers from the following SED State Operations accounts are reflected in the attached Variance Report:

• Education Library Account                                 - $     50,000
• Summer School for the Arts Account            - $   100,000

In addition, the following Aid to Localities programs are also affected: The Charter School Stimulus account (-$1,400,000 – primarily interest earnings) and the Local Government Records Management Improvement account (-$500,000).

Reason(s) for Consideration

Update on Department State Operations expenditure and revenue projections.

Proposed Handling

Review, discussion and acceptance.

Procedural History

The March report reflects actual expenditures during the 2007-2008 State fiscal year and projected expenditures through the lapse period ending June 30, 2008.

Background Information

• All Funds - Spending controls continue.
• General Fund – All of our general fund accounts are in structural balance.
• Special Revenue – Our revenue accounts are in structural balance (allowing for normal reimbursement delays and the planned use of prior year balances). 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.

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 March 2008 State Education Department Fiscal Report as presented.

Timetable for Implementation

              N/A

Attachment I

Attachment II