The Honorable the Members of the Board of Regents

Executive Summary

Issue for Discussion

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

The April report is the first report for the 2008-2009 State fiscal year.  This report reflects newly developed 2008-2009 expenditure and revenue projections for General Fund and Special Revenue accounts.  Federal program fiscal years begin in July and October so these projections are carried forward from last month’s report.

              This report reflects the 3.35 percent State Operations spending reduction recently announced by Governor Paterson.  By May 16, 2008, we will submit a detailed 2008–2009 Financial Management Plan to the Division of the Budget, identifying how we will realize the 3.35 percent savings reflected in this report.  Governor Paterson has indicated that the reductions “…must be achievable, recurring, and serious [and]…must reflect the creativity needed to provide the services the public expects at a lower cost.”  The Department is on sound financial footing and that will enable us to achieve our share of the savings target.

Reason(s) for Consideration

              Update on Department State Operations expenditure and revenue projections.

Proposed Handling

              Review, discussion and acceptance.

Procedural History

The April report is the first report of the new State fiscal year and reflects actual expenditures through April 30, 2008 and projected expenditures through the lapse period ending June 30, 2009.

Background Information

• All Funds – Tight spending controls are in place consistent with the Department’s proposed Financial Management Plan for 2008-2009.
• 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 increased 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.

              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 April 2008 State Education Department Fiscal Report as presented.

Timetable for Implementation

              N/A

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