State Relations Update - Dec. 2, 2009

DRP Approved - The Senate and Assembly gave final Legislative approval to a Deficit Reduction Plan (DRP) today which modified the Governor's original proposal.  Community Colleges will absorb a $11.3 million mid-year reduction ($130 FTE) to base aid, along with $775,000 (12.5%) in community college rental aid.  CUNY will address a $53 million reduction for their senior colleges and $4.4 million base aid reduction for their community colleges along with a $901,000 (12.5%) reduction in their rental aid.  The SUNY state-operated $90 million reduction was previously implemented by the Governor and DOB.  While the issue of increasing out-of-state tuition at SUNY and CUNY was discussed, no changes to the current rates were approved.  The Medicaid trend factor for hospitals is eliminated in the DRP.  In total, the three SUNY Hospitals will lose $3.6 million between January 2010 and March 2011, when the impact on managed care and workers compensation rates are included.

 Assembly Press Release  
 Governor's Statement  
 DOB Fact Sheet  
 Local Assistant Reduction Summary 

TAP Spared - The recently agreed to DRP does not implement the reductions to TAP as originally proposed by the Governor, thus TAP remains intact.
 Assembly Press Release

Tier V - As part of the overall DRP package, a new Tier V will be instituted beginning in January, 1010.