Executive Summary

Issue for Discussion

The June Fiscal Report is presented for your review, discussion and acceptance.  Although the 2010-2011 Budget as passed by the Legislature provides the Department with a General Fund operating appropriation of $42.6 million, $947,000 of personal service that will not be allocated to reflect the Department’s share of additional savings.

Reason(s) for Consideration

              Update on Department State Operations expenditure and revenue projections.

Proposed Handling

              Review, discussion and acceptance.

Procedural History

The June report is the third report of the new State fiscal year and reflects actual expenditures through June 30, 2010 and projected expenditures through the lapse period ending June 30, 2011.

Background Information

• All Funds – Extensive spending controls continue.
• General Fund – Our General Fund accounts are in structural balance with the exception of the Tenured Teacher Hearing and EMSC accounts as follows:

• • The Tenured Teacher Hearing account is projected to have a cumulative deficit of $5.3 million by the end of the current State fiscal year.  This is an increase of $1.7 million from the deficit projected in the April Fiscal Report and is due to new information from the program office on the projected cost of court reporters and hearing officers in the 2010-11 State fiscal year. 
  • The EMSC account has a projected deficit of $7.0 million for State Assessments.

• Special Revenue – Our revenue accounts are in structural balance, allowing for normal reimbursement delays and the planned use of prior year balances, with the following exceptions:

• • The CE account is not in structural balance due to insufficient revenues to cover its expenses and the expenses of the other agencies and programs it supports including the Summer Schools for the Arts program.
  • The Summer Schools for the Arts account is not in structural balance because tuition revenue and the transfer of $500,000 from the CE account are not sufficient to cover the entire cost of the program.  The General Fund appropriation will pay the remaining cost of $195,000.
  • 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 June 2010 State Education Department Fiscal Report as presented.

Timetable for Implementation

              N/A

Attachment