Revised M E M O R A N D U M November 14, 2012 TO: Members of the Executive Committee of the Board of Trustees FROM: Nancy L. Zimpher, Chancellor SUBJECT: 2013-14 Operating and Capital Budget Requests Action Requested The proposed resolution approves the State University’s 2013-14 operating and capital budget requests. Resolution I recommend that the Executive Committee of the Board of Trustees adopt the following resolution: Whereas the State University provides the people of New York State with educational services of the highest quality, with the broadest possible access, fulfilling its statutory mission; and Whereas the entire State University community understands the unprecedented economic challenges facing New York State and continues to play its role in meeting these challenges; and Whereas the State University fully supports the Governor’s vision to make government work better, work smarter and operate more efficiently; and Whereas the ten Regional Economic Development Councils – public-private partnerships composed of local experts and stakeholders from business, academia, local government, and non-governmental organizations – are tasked with developing strategic plans that emphasize each region’s strengths and unique assets to put people back to work, get our economy back on track, and restore New York State as the Empire State; and Whereas the Governor recognizes that higher education institutions are essential components of the State’s economic engine, serving as centers of innovation and research, teaching the business leaders of tomorrow, anchoring our communities, and creating jobs, and has, accordingly, ensured that each council includes members affiliated with higher education institutions located within that region; and Whereas the enactment of the NY-SUNY 2020 Challenge Grant Program Act continues to provide unprecedented fiscal stability for the State-operated campuses; and Whereas the State University is implementing a wide-ranging series of efficiency actions, including strategic sourcing, IT transformation, administrative alliances, and campus alliance networks, to generate administrative savings that will be reinvested in instruction and student services; and Whereas the State University’s budget request reflects careful consideration of the necessary State support and appropriation levels required to continue providing high-quality services; and Whereas the three SUNY hospitals provide world class medical care to their regions, produce leading-edge research in health care and play a critical role in their regional economies; and Whereas the 30 SUNY community colleges ensure open access to high quality postsecondary education and contribute significantly to the development of an educated citizenry and skilled workforce; and Whereas a critical component of the University’s ability to meet its mission is to have the appropriate type and number of facilities in an excellent condition; now, therefore, be it Resolved that the State University will continue its efforts to find administrative savings to reinvest in education and student support; and, be it further Resolved that the University, in its desire to assist in meeting the economic and educational needs of the State, will align its request for strategic initiatives with proposals that will serve to strengthen both the economic health of the State as well as improve the K-12 and higher education continuum; and, be it further Resolved that in order to meet the ongoing costs of current operations, preserve gains in academic quality, achieve excellence and serve the State of New York to the greatest degree possible, the University requests that the level of direct tax support for its State-operated campuses and System Administration be increased by $53.0M, and by $6.2M for its statutory and contract colleges; and, be it further Resolved that in order to meet the needs of the Cornell Cooperative Extension by fully funding both the statutory formula and requested initiatives, the University requests that the level of direct tax support be increased by $4.2M; and, be it further Resolved that to ensure SUNY hospitals continue to provide world class medical care to their regions and continue their leading-edge research in health care and their important role in their regional economies, the University requests that the level of direct tax support for the hospitals be increased by $134,000,000; and, be it further Resolved that in order to ensure necessary funds are available to support the ongoing costs of current operations while not placing disproportionate financial pressures on local governments or students, the University requests that the level of direct tax support for its community colleges be increased by $37.3M with a goal of reaching a 33 percent State support share in five years, and an additional $1.2M for targeted high need program investment; and, be it further Resolved that in order to ensure necessary funds are available to support general State charges paid directly by the University, the University requests that the level of direct tax support for certain fringe benefit payments be maintained at the appropriate levels; and, be it further Resolved that the appropriation level for the University’s tuition revenue offset fund be increased to reflect both the 2013-14 tuition plan submitted by the Board of Trustees and current enrollment levels; and, be it further Resolved that appropriations for the University’s special revenue funds be set at the appropriate levels to cover collective bargaining, general inflation and changes in activity; and, be it further Resolved that the proposed operating budget request for State-operated and statutory colleges and the community colleges (copy on file in the Office of the Secretary of the University) as described in this resolution and the attached background materials be, and hereby is, approved for the 2013-14 University fiscal year beginning on July 1, 2013, and the Chancellor, or designee, be, and hereby is, authorized to transmit such budget request to the Director of the Budget, to be allocated as follows: State Operated Tax Dollar Support $892,751,200 Statutory Colleges $135,513,800 Cornell $127,263,700 College of Ceramics at Alfred University $8,250,100 Cornell Cooperative Extension $8,466,000 Hospital Support $223,756,000 Community Colleges $491,691,000 General State Charges $212,956,000 Total State Tax Support $1,965,134,000 Tuition Revenue Offset Appropriation $1,573,178,800 Special Revenue Funds – Other $1,333,100,000 General Income Fund Reimbursable $343,400,000 Residence Hall Operations $837,800,000 State University Tuition Reimbursable Account $151,900,000 Special Revenue Funds – Hospitals $43,678,000 Long Island Veterans’ Home $43,678,000 Hospital Operations $0 Hospital IFR $0 Fiduciary Funds - Student Loans $37,000,000 Internal Service Funds - Banking Services $21,100,000 Special Revenue – Federal $493,600,000 Supplemental Educational Opportunity Grants $9,000,000 Teach Grants $28,000,000 Pell Grants $440,000,000 College Work Study $15,000,000 Scholarship for Disadvantaged Students $1,500,000 Iraq and Afghanistan Service Grant $100,000 Total Other Appropriated Funds $1,928,478,000 Total 2013-14 Budget Request $5,466,790,800 and, be it further Resolved that the University requests all re-appropriations necessary for the following purposes be included in the 2013-14 Executive Budget: General Income Fund Reimbursable; Special Revenue Funds Federal (various student assistance programs); and Aid to Localities (legislative and other line item initiatives); and, be it further Resolved that the University’s four capital plans, for educational facilities, community colleges hospitals and residence halls, be fully funded; and, be it further Resolved that the proposed capital budget request for the University’s four capital programs as described in ten-year capital plan for the period 2013-14 to 2022-23 (copy on file in the Office of the Secretary of the University) be, and hereby is, approved for the 2013-14 University fiscal year beginning on July 1, 2013, and the Chancellor, or designee, be, and hereby is, authorized to transmit such budget request to the Director of the Budget; and, be it further Resolved that the University requests all reappropriations necessary for the SUNY capital programs be included in the 2013-14 Executive Budget. Background See presentation “State University of New York 2013-14 Budget Request.” 4 -2- Board Resolution November 14, 2012