The Honorable the Members of the Board of Regents

Executive Summary

Issue for Discussion

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

The April report is the first report for the 2010-2011 State fiscal year.  In the absence of an enacted budget, this report reflects General Fund allocations based on the Executive Budget recommendations. Special Revenue accounts reflect newly developed 2010-2011 expenditure plans and revenue projections which require Division of the Budget approval.  Federal program fiscal years begin in July and October so these projections are carried forward from last month’s report.

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, 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 has a projected deficit of $3.6 million.  The proposed 2010-2011 appropriation for this account is $3.8 million and, therefore, only $200,000 of the appropriation will remain after bills on hand are paid.
• 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 Cultural Education account is not in structural balance due to insufficient revenues to cover its expenses and the expenses of the other agencies it supports.
• The Summer Schools for the Arts account is not in structural balance due to the inability of the Cultural Education account, which has a negative balance, to transfer funds to it.
• 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 April 2010 State Education Department Fiscal Report as presented.

Timetable for Implementation

              N/A

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