M E M O R A N D U M November 22, 2011 To: Members of the Board of Trustees From: Nancy L. Zimpher, Chancellor Subject: 2012-13 Operating Budget Request Action Requested The proposed resolution approves the State University’s 2012-13 operating budget request. Resolution I recommend that 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 enactment of the NY-SUNY 2020 Challenge Grant Program Act provides unprecedented fiscal stability for the State-operated campuses; 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 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 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 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; 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 needs of the State, will align its request for strategic initiatives with proposals to be submitted by the REDCs, and that the Chancellor is hereby authorized to submit such a request, in an amount not to exceed $40 million; 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 $64,222,600, and by $9,511,000 for its statutory and contract colleges; and, be it further Resolved that in order to meet the needs of the Cornell Cooperative Extension and to fully fund the statutory formula, the University requests that the level of direct tax support be increased by $743,000; 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 $55,600,000; 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 $23,654,600, with a goal of reaching a 33% State support share in five years; 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 2012-13 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 with these minutes in the Office of the Secretary) as described in this resolution and the attached background materials be, and hereby is, approved for the 2012-13 University fiscal year beginning on July 1, 2012, 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 $896,526,100 Statutory Colleges $138,830,800 Cornell $130,497,700 College of Ceramics at Alfred University $8,333,100 Cornell Cooperative Extension $4,663,000 Hospital Support $115,600,000 Community Colleges $465,005,900 General State Charges $212,956,000 Total State Tax Support $1,833,581,800 Tuition Revenue Offset Appropriation $1,485,549,900 Special Revenue Funds – Other $1,393,100,000 General Income Fund Reimbursable $837,800,000 Residence Hall Operations $343,400,000 State University Tuition Reimbursable Account $171,900,000 Stabilization Fund $40,000,000 Special Revenue Funds – Hospitals $2,955,829,100 Long Island Veterans’ Home $44,100,000 Hospital Operations $2,811,729,100 Hospital IFR $100,000,000 Fiduciary Funds - Student Loans $37,000,000 Internal Service Funds - Banking Services $20,100,000 Special Revenue – Federal $428,600,000 Supplemental Educational Opportunity Grants $9,000,000 Teach Grants $28,000,000 Pell Grants $375,000,000 College Work Study $15,000,000 Scholarship for Disadvantaged Students $1,500,000 Iraq and Afghanistan Service Grant $100,000 Total Other Appropriated Funds $4,834,629,100 Total 2012-13 Budget Request $8,153,760,800 and, be it further Resolved as part of the University’s efforts to use its resources more effectively, the University-wide programs are being realigned and refocused to more effectively support the priorities of the University, with an emphasis on program accountability; and, be it further Resolved that the University requests all re-appropriations necessary for the following purposes be included in the 2012-13 Executive Budget: General Income Fund Reimbursable; Special Revenue Funds Federal (various student assistance programs); and Aid to Localities (legislative and other line item initiatives). Background See presentation “State University of New York 2012-13 Budget Request.” 4 -2- Board Resolution November 22, 2011