State Relations Update - March 30, 2009

BUDGET UPDATE
 
As you know, the Legislative Leaders have announced a three-way agreement on the 2009-10 state budget.  Below is a preliminary summary of how the deal impacts SUNY and higher education.  The full details are still being reviewed by the Office of Finance and Administration and any further analysis will be shared as necessary.
 
Operating Budget

Tuition Increase Share Percentages

• 80/20  2009-10
• 70/30  2010-11
• 60/40  2011-12
• 50/50  Thereafter
• Shares are based on the full tuition increase of $620
• Should be used "to supplement not supplant state gross general fund support" unless fiscal conditions warrant otherwise

University-wide Funding

• Proposed reductions were restored for University-wide programs
• Levin Institute was not funded

IFR Sweep

• $40M IFR sweep was accepted as proposed

Hospitals

• Subsidy not restored
• Disproportionate Share funding accelerated
• Medicaid funding reduced, particularly Graduate Medical Education (GME)

10% Research Foundation Tithe

• Appropriation levels reflect the proposed revenue of $7.8M
• Specific mechanism not identified although there is a presumption of the tithe enactment by SUNY RF Board
• If not enacted, SUNY will have a revenue shortfall of $7.8M

Flexibility in Article VII

• All flexibility discussions will be post budget
• Land Use flexibility issues will be dealt with in the State Asset Maximization (SAM) Commission during the remaining months of session

Statutory Colleges

• Funded as per Executive Budget

Graduate - 1st Professional Tuition Proposal

• 21% increase proposed
• Tuition sharing percentages apply (as noted above)
• Approval still necessary by SUNY Board

Out-of-State Differential Tuition

• Rejected

$75M IFR Special Account

• Accepted as proposed - Dry Appropriation
• Dry appropriation is not funded and allows campuses to use the account to transfer IFR dollars if they so choose to preserve full-time faculty and other campus positions and preserve undergraduate student access

Community Colleges

• 10% reduction to base-aid restored
• $27.7M is devoted from the American Recovery and Reinvestment Act (ARRA) State Fiscal Stabilization "Education" Account and $7.7M devoted from the "Other Government Services" Account
• Categorical aid remains at proposed levels

Capital Budget

• All recommended prior year reappropriations for all SUNY capital programs are included in full
• The new 2009/10 Educational Facility capital appropriation of $550M for critical maintenance is included in full, allocated according to campuses pursuant to the SUBOA-approved methodology
• Funded the SUNY Community College capital projects that obtained the requisite local sponsor approvals prior to and since the Executive Budget release
• Allows the transfer of $138M in appropriated capital project funding for the University of Buffalo (UB) strategic initiative projects for the UB Gateway and Urban Transitional Incubator and Clinical Research facility as proposed by UB to allow the campus to collaborate with the private, not-for-profit Kalieda group in the development of a joint facility 

HESC

Tuition Assistance Program (TAP)

• $39M appropriated to restore the modifications to TAP, including the 12 to 15 credit hour proposal

New York Higher Education Loan Program (NYHELPs)

• Adopted as proposed
• On an annual basis, $350M in loans will be available to students enrolled in degree-granting programs at a public or private college or university in NYS
• Campuses will be charged a 1% participation fee based on the campus loan volume - no funding provided

Continental Airlines Flight 3407 Memorial Scholarship

• To fund the educational costs of the children, spouses and financial dependents of persons who died in the plane crash in Clarence, NY
• Funding will be provided through HESC similar to other such scholarship programs. 

Further details on the 2009-10 state budget will be provided as the analysis continues.