Meeting of the Board of Regents | April 2010

Executive Summary

Issue for Discussion

The March Fiscal Report is presented for your review, discussion and acceptance.  Also, attached is a Variance Report which reflects:

• the receipt and allocation of final grant awards for various federal programs,
• reductions in revenue resulting from cash sweeps that occurred at the end of the fiscal year to certain special revenue accounts totaling $2,766,000,
• a $40,000 increase in outstanding Tenured Teacher Hearing claims since the February Fiscal Report, and
• reductions in General fund personal service revenue and expenditures totaling $862,440 to capture savings from the Voluntary Severance Program, attrition, transfers of positions to other funds and the elimination of funding for some vacancies.

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 through the full twelve months of the 2009-2010 State fiscal year and projected expenditures through the lapse period ending June 30, 2010.

Background Information

• All Funds – Extensive spending controls continue.
• General Fund – All of our general fund accounts are in structural balance with the exception of the Tenured Teacher Hearing Account, which has a deficit of $2.9 million as of March 31, 2010. 
• 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 – 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 March 2010 State Education Department Fiscal Report as presented.

Timetable for Implementation

              N/A

Attachment 1

Attachment 2