TO: Executive Board Members and Statewide Labor Management Chairs

FROM: Thomas E. Cetrino, Martin O’Connor, Susan Mitnick, Steve Connolly, and Mike Marinello

DATE: May 11, 2001

AFT, SEIU, and the Fiscal Policy Institute have been assisting PEF in gathering the documents necessary to assess the impact of President’s Bush’s proposed FY2002 budget on New York State. Part of the problem is that the President did not release his detailed proposed budget until April 2 in an effort to get his tax cut approved before anyone could assess its impact on programs funded by the federal government. In addition, the President’s budget includes numerous accounting gimmicks designed to make any increases in spending larger than then really are and any decreases smaller than they really are.

The President claims his FY2002 budget proposes an overall 4% increase in federal spending. This claim misrepresents the level of spending the President’s budget really proposes and this misrepresentation is related to how Congress appropriated funds for the 2001 budget. Congress used accounting gimmicks to make FY2001 funding levels appear lower than they actually are. The Congressional Budget Office (CBO) estimates that these gimmicks understate by $3.6 billion the overall level of spending for FY2001. (Some $2.1 billion of this amount occurs in education and another $1.3 billion occurs in other domestic programs.) Unfortunately, the figures the Bush Administration uses to claim it has proposed a 4% increase in federal spending include the $3.6 billion appropriated in FY2001 and count all of this amount as part of the FY2002 Bush budget "increase". The bottom line is that when the needed adjustments are made to eliminate both upward and downward distortions, the overall funding increase that the Bush budget contains for domestic appropriated programs in 2002 turns out to be 1.5 %, well below the rate of inflation. The Bush budget would cut funding for domestic discretionary appropriations by $9 billion next year and $50 billion over ten years, relative to the levels needed to maintain the programs at their current levels of service.

This large cut in domestic discretionary spending has significant implications for PEF as the State has moved a significant number of employees’ funding source from State-funded line to federally funded lines. In the Governor’s proposed budget for SFY2001-02 30% of State Operations programs are funded by the federal government. The federal share ranges from a high of over $3.4 billion for the Department of Health to nothing for several agencies including the Departments of Audit and Control, Banking and Insurance. Table 1 includes the federal share of the proposed SFY2001-02 State Operations "all funds" budget for each State agency that employs PEF members and the percentage it makes up of that agency’s overall budget. This table only shows federal money that goes directly to the agency. This under-represents the amount of federal funding for some agencies because their federal funding is not direct. OMRDD, for instance, receives $50 million in Medicaid funding but since it goes to patients first, the State budget refers to it as a Special Revenue-Other.

Our internationals have provided PEF with information from the Federal Funds Information for States (FFIS) database that estimates New York’s share for every federal grant program that provides money to state governments. We have just received New York’s estimated funding for each of these programs; overall New York will gain $1.64 billion in federal funds over the amount received in FY2001 under the President’s proposed budget for FY2002. However most of this gain is reflected in increased Medicaid funding for the State, which will increase by $1.915 billion in FY2002. Without the increased Medicaid funding the State will lose $271,171,000 in federal funding in FY2002. The major federal programs that will face significant cuts in the proposed FY2002 federal budget include (all losses are from NY’s FY 2001 share):

• Crime Victims Fund Assistance and Compensation – a loss of $27,886,000, which reflects the total elimination of the programs.
• Juvenile Accountability Block Grant – a loss of $1,016,000, which reflects a 9% cut.
• State Criminal Alien Assistance – a loss of $59,620,000, which reflects a 53% cut.
• Truth in Sentencing/Violent Offender Incarceration – a loss of $34,739,000, which reflects the total elimination of the program.
• Competitive and Special Cooperative State Research Agriculture – a loss $4,313,000, which reflects a 43% cut and the almost complete elimination of the ‘Special" program.
• Economic Development/Public Works – a loss of $2,255,000, which reflects a 13% cut.
• Fund for the Improvement of Education – a loss of $3,036,000, which reflects the total elimination of the program.
• Immigrant Education – a loss of $20,947,000, which reflects the total elimination of the program. However, it has been consolidated with the Bilingual Education program and the national appropriation for the combined program is for the same funding level as FY2001. FFIS does not currently have an estimate of how much NY will received from the combined program but it is likely NY will not experience any significant funding loss.
• School Renovation Grants – a loss of $105,105,000, which reflects the total elimination of the program. Under the President’s proposal states can use their FY2001 funding under this program for school renovation, technology, or special education.
• Dislocated Workers – a loss of $13,742,000, which represents a 13% cut.
• Job Training Partnership Act/Adult – a loss of $4,244,000, which represents a 5% cut
• Workforce Investment Act/Youth Opportunity Grants – a loss of $10,813,000, which represents a 13% cut.
• EPA Wastewater Discretionary and State Revolving Fund (SRF) Grants – a loss of $86,323,000, which eliminates the discretionary program and reduces the SRF program by 37%.
• Child’s Health Insurance Program – a loss of $520,446,000, which represents a 69% cut. It is important to note that in FY2001 NY received a supplemental CHIP grant of $434,890,000 in addition to the normal grant of $322 million. NY is only scheduled to get $236 million in regular CHIP funding in FY2002 but we may also get another supplemental CHIP grant depending on the amount of unspent CHIP money from FY1999.
• Preventive Health Block Grant – a loss of $2,815,000, or a 23%cut
• Food Stamp Employment and Training Program – a loss of $3,3847,000 or a 7% cut
• Food Stamp State Administration – a loss of $8,518,000, or a 5% cut.
• HOME Investment Local Grants – a loss of $14,293,000, or a 9% cut.
• HOME Investment State Grants – a loss of $2,628,000, or a 7% cut. The reduced funding for the HOME grants may be offset by funding from the new American Dream Down-payment Fund Initiative which is funded nationally at $200 million under the President’s proposed budget.
• Public Housing Capital Fund – a loss of $118,605,000, or a 23% cut.
• Cooperative Forestry Management, Fire Protection and Health Management – a loss of $1,296,000, or over a 27% overall cut in these three programs.
• Historic Preservation Fund – a loss of $357,000, or a 26% cut.
• Foster Care – a loss of $1,007,000, or a 1% cut
• Social Services Block Grant – a loss of $1,672,000, or a 1% cut.
• Federal Aid Highway Programs – a loss of $121,021,000, approximately an overall 10% cut.

It is very difficult to match federal grants to the corresponding appropriation in the State budget for several reasons. The most significant problem is that the State budget does not refer to these grants by the name of the federal grant and often combines several federal grants into one appropriation. Another problem is that the federal and State fiscal years differ; the State’s fiscal year runs from April 1, 2001 to March 30, 2002 and the federal fiscal year runs from Oct 1, 2001 to September 30, 2002 (which is referred to as FY2002). That means the State appropriation in the SFY2001-2002 budget reflects six months of the FY2001 appropriation and six months of the FY2002 appropriation. It is also unclear as to whether the State appropriation reflects the federal appropriation or federal outlays, which is the actual cash the State receives for that grant in that specific year.

The following is an analysis of each major State agencies’ federal funding situation as relates to its State Operations budget. The analysis includes how much federal funding the Governor’s proposed SFY2001-02 budget includes for State Operations, the name of the agency’s major programs or grants in the State budget and their appropriation, and the major federal grants we believe the agency receives and its estimated FY2002 appropriation as proposed in President Bush’s FY2002 budget. Based on our analysis it appears that the Department of Transportation, Division of Criminal Justice Services, Department of Correctional Services, Crime Victims Board, Division of Parole, Department of Environmental Conservation, and the Department of Housing and Community Renewal may lose significant federal funding in FY2002 that could affect State employees’ jobs in SFY2001-02 or SFY 2002-03. It is less likely but possible that The Office of Children and Family Services and The Office of Temporary and Disability Assistance employees may also be impacted by federal budget cuts.

It is important that the Statewide Labor Management Chairs of these agencies meet with management as soon as possible to ascertain how they believe the proposed federal budget cuts will affect their workforce. PEF needs to get as much specific information as possible. We particularly need the name of the federal programs/grants that your agency uses to fund State employee positions. Staff from the Civil Service Enforcement/Research Department are available to participate in these meetings with agency management. Please call us if you would like us to attend these meetings with you or if you have any questions about the information in this memo. We will continue to keep you updated on the major developments concerning the State and federal budgets. Next week we will provide an analysis of the impact of President Bush’s proposed federal tax cuts on New York.

The Governor’s proposed SFY2001-02 budget appropriates $83,344,000 in federal funding for the agency’s State Operations budget. The major appropriations are all in the Administration Program and include:

• Incarceration of Illegal Aliens - $66,379,000
• Youth Offender Grant program - $1 million
• Substance Abuse Treatment in State Prisons - $3 million
• Drug-Free Prison Grants - $360,000

The proposed FY2002 appropriations for federal grants that we believe may provide the above funding include:

• State Criminal Alien Assistance - $52,841,000, a $59,620,000 cut from the FY2001 appropriation.
• Residential Substance Abuse Treatment/State Prisoners - $3,813,000, a $458,000 increase from the FY2001 appropriation.
• Violent Offender Incarceration/Truth in Sentencing – The complete elimination of the program which provided $34,739,000 in funding to New York State in FY2001. Some of this funding also probably goes to DCJS and the Division of Parole.
• Juvenile Accountability Block Grant - $10,559,000, a $1,016,000 cut from the FY2001 appropriation. This majority of this block grant’s funding most likely goes to the Office of Children and Family Services (OCFS) and the Division of Criminal Justice Services.

The Governor’s proposed SFY2001-02 budget appropriates $1,471,000 in federal funding for the agency’s State Operations budget. The major appropriations are all in the Administration program and include:

• Crime Victims Assistance Account - $1,200,000 including $980,000 for personal service and fringe benefits.
• Crime Victims Compensation Account - $271,000 including $184,900 for personal service and fringe benefits.

• Crime Victims Fund Assistance – This program is eliminated. It provided the State with $22,427,000 in FY2001.
• Crime Victims Fund Compensation - This program is eliminated. It provided the State with $5,459,000 in FY2001.

• Anti-Drug Abuse - $3,701,000
• Anti-Terrorism and Effective Death Penalty - $415,000
• Brady account - $4 million
• DCJS Crime Control Plan - $1,610,600
• Domestic Incident Preparedness (to combat weapons of mass destruction) - $12,500,000
• Juvenile Justice Block Grant - $3.7 million
• Miscellaneous Discretionary - $9,760,000
• Violence against Women - $5 million
• The Operations and Assistance program also receives $5.1 million in federal funding for its Science and Technology program, which is related to improving crime identification technologies.

• Byrne Drug Control System improvement grants - $29,581,000, a $740,000 increase over the FY2001 appropriation. The Division of Parole and State Police also probably receive funding from this program
• Juvenile Accountability Block Grant - $10,559,000, a $1,016,000 cut from the FY2001 appropriation. Some of this funding also probably goes to OCFS and DOCS.
• Juvenile Justice Formula Grants - $4,843,000, a $679,000 increase over the FY2001 appropriation. Some of this funding also probably goes to OCFS.
• Violent Offender Incarceration/Truth in Sentencing – The complete elimination of the program which provided $34,739,000 in funding to New York State in FY2001. Some of this funding also probably goes to DOCS and the Division of Parole.
• Violence Against Women - $9,021,000, a $3,134,000 increase from the FY2001 appropriation.

• Anti-Drug Abuse - $1 million
• Science and Technology - $2 million
• Violent Offender Incarceration/Truth in Sentencing - $3.2 million, for drug testing and intervention.
• Center for Disease Control funding through Health Research Incorporated - $500,000

• Byrne Drug Control System improvement grants - $29,581,000, a $740,000 increase over the FY2001 appropriation. DCJS and the State Police also probably receive funding from this program.
• Violent Offender Incarceration/Truth in Sentencing – The complete elimination of the program which provided $34,739,000 in funding to New York State in FY2001. Some of this funding also probably goes to the DCJS.

• Health and Human Services fund/ Investigation and Prosecution of Medicaid Fraud - $28,573,000 including $22,692,000 for personal service and fringe benefits.
• Environmental Compliance account/Toxic Substance monitoring - $162,800.

The proposed FY2002 appropriations for federal grants that we believe probably provides the above funding include:

• State Medicaid Fraud Control Units - $28,987,000, a $414,000 increase over the FY2001 appropriation.
• EPA/Solid &Hazardous Waste Management Support - $6,295,000, the same funding level as the FY2001 appropriation. Most of this funding probably goes to the Department of Environmental Conservation.

Division of State Police

• The Governor’s proposed SFY2001-02 budget appropriates $9,825,000 in federal funding for the agency’s State Operations budget. Most the appropriations are in the Criminal Investigations Activities program and include:
• Anti-Drug Abuse - $6,683,000, including $6,487,000 for personal service and fringe benefits
• Anti-Money Laundering - $300,000 including $265,000 for personal service and fringe benefits.

The remaining appropriations are in the Patrol Activities program and include:

• Motor Carrier Safety Assistance program - $2,453,000 including $2,328,000 for personal service and fringe benefits.
• COPS account for expansion of a mobile video recording program - $389,000.

• Byrne Drug Control System improvement grants - $29,581,000, a $740,000 increase over the FY2001 appropriation. DCJS and the Division of Parole also probably receive funding from this program.
• State and Community Highway Safety - $8,911,000, a $278,000 increase over the FY2001 appropriation.

• The Governor’s proposed SFY2001-02 budget appropriates $1,490,000 in federal funding for the agency’s State Operations budget. Most of the appropriations are in the Veterans Education program which receives a federal funds appropriation of $1,226,000 including $963,000 for personal service and fringe benefits. The Veterans Counseling program also receives $264,000 in federal funding to offset state expenditures for that program.
• The proposed FY2002 appropriations for federal grants that we believe may provide the above funding include:
• Disabled Veterans Outreach - $5,704,000, the same funding level as the FY2001 appropriation.

Office General Services

• The Governor’s proposed SFY2001-02 budget appropriates $6,400,000 in federal funding for the agency’s State Operations budget. All of the appropriations are in the Information Technology and procurement program and are related to administrative costs associated with the School Lunch and Emergency Food Assistance programs. We believe OGS may buy and store some of the commodities for these programs.
• The proposed FY2002 appropriations for federal grants that we believe may provide the above funding include:
• School Lunch program - $428,837,000, a $27,678,000 increase over the FY2001 appropriation
• Child Nutrition State Administrative Expenses - $8,587,000, a $172,000 increase over the FY2001 appropriation.
• Emergency Food Assistance Administrative Expenses - $3,202,000, the same funding level as the FY2001 appropriation.

• The Governor’s proposed SFY2001-02 budget appropriates $5 million in federal funding for the agency’s State Operations budget. All of the appropriations are in the E-Government program and are for services and expenses related to the development of the E-government/E-commerce initiative in State agencies and for related security and privacy concerns. It is unclear what federal program is providing the funding for this initiative.

• The proposed NYS Executive Budget for 2001-02 includes $3.4 billion in federal funds for State Operations.
• Federal Medicaid Administration funding is projected to increase from $582,072,000 in FFY 2001 to $691,810,000 in FFY 2002 (+$109,738,000, 19%). While the DOH budget does not specify which federal special revenue fund appropriations are supported by this allocation, we believe that the funds labeled "Federal Health and Human Services Funds" are from this source.
• Federal Medicaid Vendors Payments funding is projected to increase from $16,862,440,000 in FFY 2001 to $18,668,076,000 in FFY 2002 (+$1,805,636, 11%). PEF believes that funds labeled "Federal Health and Human Services Funds" are from this source.
• Funds in the proposed NYS Executive Budget designated as Federal Health and Human Services Funds are projected at $3,292,609,000 in SFY 01-02. While not specifically designated as such in the budget, these are clearly Medicaid funds (probably Medicaid Administration, Medicaid Vendor Payments, State Medicaid Fraud Control Units and State Survey and Certification of Health Care Providers/Supplier,), as this is the only funding source of these proportions.
• Federal Children’s Health Insurance Program funding is projected to decrease from $756,916,000 in FFY 2001 to $236,070,000 in FFY 2002 (-$520,846,000, -69%). Despite this decrease on the federal level, the proposed NYS budget shows an increase in State Operations funding from $13,400,000 in SFY2000-01 to $30,280,000 in SFY 2001-02 (+$16,880,000). This increase in funding is attributable to the State’s ability to draw down funds unexpended by other states. This provision applies only to unexpended 1998 and 1999 allocations, from which New York is receiving $434, 890,000 in FFY 2001. When these funds expire, it is unclear how New York will make up the anticipated future loss of federal funds.
• Federal Women, Infants and Children (WIC) funding is projected to increase from $275,318,000 FFY 2001 to $280,333,000 in FFY 2002 (+$5,015,000). We believe these funds are reflected in the NYS budget as the Federal Food and Nutrition Services Account. The State Operations portion of this account is projected at $6,953,000 in SFY 01-02.
• Funds in the proposed NYS Executive Budget designated as Federal Block Grant Fund are projected at $26,662,000 for SFY 01-02. We have been unable to determine the federal source(s) of this fund, but we presume it to be a combination of several smaller federal block grants including:
• Maternal and Child Health Block Grant – a $41,936,000 FY2002 appropriation the same the FY2001 appropriation
• Preventive Health Block Grant – a $9,386,000 appropriation, which is a $2,815,000 decrease from the FY2001 appropriation. However there is a new Preventive Health/Rape prevention program for which NY would receive $2,834,000 which could offset the loss of the Preventive Health Block Grant funds. It is unclear what State agency will receive this funding.

• The proposed NYS Executive Budget for 2001-02 includes $5, 663,000 in federal funds for State Operations.
• Federal Substance Abuse and Prevention Block Grant funding is projected to remain stable at $108,500,000 for FFY 2002.

• The proposed NYS Executive Budget for 2001-02 includes $1,258,000 in federal funds for State Operations (Federal Block Grant Fund in the Administration and Finance Program).
• Federal Mental Health Block Grant funding is projected to remain stable at $28,258,000 for FFY 2002.

• The proposed NYS Executive Budget for 2001-02 includes $5,166,000 in federal funds for State Operations
• The FFY 2002 budget proposes an appropriation of $4,150,000 for the Developmental Disabilities – Basic Support program and a $1,681,000 appropriation for the Developmental Disabilities – Protection and Advocacy. This represents a $52,000 decrease from the FFY 2001 appropriation for these programs that may fund the State Operations programs in CQC.

In the past 30 years the federal funding has accounted for a increasing proportion of the DEC budget: growing from 4.6% of the DEC budget in 1970-71 to 16% of the DEC budget in SFY 2001-02.

Federal funds contribute $94.8 million dollars to the Governor's proposed budget. The bulk of these funds are found in the following program areas: Administration Program (Federal Operating Grants Fund - Indirect Costs Account $12.7 million), Air and Water Quality Management Program (Federal Operating Grants Fund - Federal Environmental Conservation Water Grants Account $30.2 million), Fish, Wildlife and Marine Resources Program (Federal Operating Grants Fund - Federal Environmental Conservation Fish, Wildlife, and Marine Grants Account $19.4 million)

The President's proposed FY2002 appropriations for federal grants that we believe may provide some funding for the above programs include:

• Reducing federal funds to the Cooperative Forestry Management Program by (-$1.1 million). The impact of this reduction is not clear, however, it may affect the Federal Environmental Conservation Lands and Forests Grants Account found in the Forest and Land Resource Program.
• Adding $1.1 million to the Fish and Wildlife - Fish Restoration Program. The impact of this add is unclear.
• Reducing New York State's portion of the EPA - Wastewater State Revolving fund by (-$54.7 million) and eliminates the Wastewater Discretionary Fund which was funded at $31.6 million in FY2001. It is not clear how this will impact the DEC budget, however, it appears that these funds are directed to the Clean Water State Revolving Fund and are used for wastewater treatment construction programs, so some of the impact will most likely be directed to capital project funds.

• EPA - Air Pollution Control - no change in funding level from FY2001
• EPA - Drinking Water State Revolving Fund Grants - no change in funding level from FY2001.
• EPA - Nonpoint Source Control Grants - (-$17,000).
• EPA - Pesticide Cert. And Training - no change in funding level from FY2001.
• EPA - Pesticide Enforcement - (-$1,000).
• EPA - Solid Hazard Waste Mgmt Support - no change in funding level from FY2001.
• EPA - State Public Water System Supervision - no change in funding level from FY2001.
• EPA - State Underground Water Source Protection - no change in funding level from FY2001.
• EPA - Water Pollution Control - no change in funding level from FY2001.

The President's budget proposes the following:

• A 10 percent reduction (approximately $107 million) in the funds allocated for New York State in the following program areas: Surface Transportation Program (-$27 million), National Highway System (-$21.6 million), Interstate Maintenance (-$16 million), Bridge Rehab & Repair (-$42.3 million).
• Currently, DOT receives $9.1 million in direct Federal assistance for state operations. All of this money is found in the Passenger & Freight Transportation Program in the following accounts: Federal Aviation Administration Planning Account, FTA Program Management Account, Motor Carrier Safety Account.
• NYS currently expects to receive $1.49 billion in Federal funds for Capital Projects. A portion of this money is used to reimburse the engineering services fund. The reductions proposed in the President's budget may negatively affect the amount NYS receives for capital projects and thus the amount that is available for reimbursement to the engineering services fund.
• The most significant impact of the proposed reductions in the Federal Budget lies in the fact that the Governor was seeking more federal funding to cover the expected $600 million per year shortage created by the failure of the Bond Act. The President's proposal budgets less federal funding for NYS.

Federal funds account for approximately 10% or $8.6 million of the State Operations portion of the DHCR budget. These funds are found in the following program areas: Community Development (Dep't of Energy Weatherization Acct. - $3.1 million), Housing Program (Housing and Urban Development Section 8 Acct. - $5.5 million)

The President's budget proposes:

• To keep the funding for the Community Development Block Grant (CDBG) program the same as the previous year. However, since the President's budget anticipates a 2.6% rate of inflation, this is a de-facto reduction. It is not clear that the CDBG program affects the state operations portion of the DHCR budget.
• Decreases the federal funding for the Home Investment State Grants program by 7% or (-$2.6 million). It is not clear how this will impact DHCR, however, it may impact the DHCR Housing Program (Housing and Urban Development Section 8 Acct. currently funded at $5.5 million)
• Proposes increasing New York State's federal funding by $10.7 million for the Energy Conservation - Weatherization function. This may result in increased funding for on the Community Development Program (Dept of Energy Weatherization Acct.).

The DMV receives approximately 3.6%, or $8 million, of its state operations funding in the form of direct federal assistance. These federal funds are found primarily in the following program areas: Governor's Traffic Safety Committee (Highway Safety Section 157 Acct. $2.1 million), (Highway Safety Section 402 Acct $5.1 million), (Highway Safety Section 403 Acct. $700,000)

The President's budget proposes:

• Increasing New York State's allocation for the State & Community Highway Safety program by $278,000. This may have a positive affect on DMV's federal funding receipts in the Governor's Traffic Safety Committee program.

State Education Department (Note FY2002 runs from October 1, 2001 through September 30,2002)

• The proposed NYS Executive Budget for 2001-02 includes $160.4 million in federal funds for State Operations. In SED's State budget these appropriations are found primarily in two appropriations. The first is in the Elementary, Middle, Secondary and Continuing Education program, is titled Federal Department of Education Fund - 267 and totals $41,096,000. The second is in the Vocational and Educational Services program for Individuals with Disabilities Program, has the same title Federal DOE Fund - 267 and totals, $103,741,000. Based on this it is unclear where or even if, any of the money shown below is used to support state positions in SED.
• Federal funding for Adult Basic Education is projected to remain at $32.7 in FY2002.
• Federal funding for Client Assistance State Grants is project to increase by $8,000 in FY2002.
• Federal funding for Compensatory Ed (Title I) - Capital Expenditures is eliminated in FY2002 which is a reduction of ($912,000). However, $916,000 remains from prior years and is projected to be "outlayed" in FY2002.
• Federal Funding for Compensatory Ed (Title I) - Local Education Agencies is projected to go from $831,166,000 to 895,721,000 in FY2002 (an increase $64,555,000).
• Federal Funding for Compensatory Ed (Title I) - Migrant is projected to remain at the current $8920,000 level for FY2002.
• Federal funding for Compensatory Ed (Title I) – Comprehensive School Reform is projected to increase from $20,153,000 to 24,885,000 in FY2002 (an increase of $4,733,000).
• Federal funding for Compensatory Ed (Title I) - Even Start is projected to increase from $21,586,000 to $21,773,000 in FY2002 (an increase of $187,000).
• Federal funding for Compensatory Ed (Title I) - State Agency Neglect & Delinquency is projected to remain at the $3,178,000 level for FY2002.
• Federal funding for Drug - Free Schools & Communities State Grants is projected to increase from $33,580,000 to 41,913,000 in FY2002 (an increase of $8,333,000).
• Federal funding for Education for Homeless Youth is projected to stay at the $3,511,000 level for FY2002.
• Federal funding for Educational Technology State Grants is a new program and will provide $77,450,000 to New York in FY2002.
• Federal funding for Eisenhower Professional Development State Grants is eliminated in FY2002 (a decrease of $34,086,000). However, $30,678,000 remains from prior years and is projected to be spent in FY2002.
• Federal funding for Fund for the Improvement of Education is eliminated in FY2002 (a decrease of $3,036,000). However, $304,000 remains from prior years and is projected to be spent in FY2002.
• Federal funding for Goals 2000 State Grants was eliminated this year and will receive no funding in FY2002. However, $7,257,000 remains from prior years and is projected to be spent in FY2002.
• Federal funding for Immigrant Education is eliminated in FY2002 (a decrease of $20,947,000). However, $18,852,000 remains from prior years and is projected to be spent in FY2002.
• Federal funding for Impact Aid - Basic Support Payment is projected to decrease slightly ($12,000) in FY2002 from $16,476,000 to $16,464,000.
• Federal funding for Impact Aid - Construction is projected to increase from $30,000 to $1,894,000 in FY2002 (an increase of $1,864,000).
• Federal funding for Impact Aid - Special Education Payment is project to remain at the $273,000 level for FY2002.
• Federal funding for Innovative Education Program Strategies State Grants is eliminated in FY2002 (a decrease of $23,070,000). However, $20,763,000 remains from prior years and is projected to be spent in FY2002.
• Federal funding for Reading First State Grants is proposed for FY2002. This new program will send $86,512,000 into New York State.
• Federal funding for Rehabilitation Services - Basic State Grant is projected to increase from $122,112,000 to $125,264,000 in FY2002 (an increase of $3,152,000).
• Federal funding for School Renovation Grants is eliminated in the FY2002 resulting in a decrease of ($105,105,000). However, $31,531,000 remains from prior years and is projected to be spent in FY2002.
• Federal funding for Special Education Basic State Grant is projected to increase from $430,268,000 to $495,232,000 in FY2002 (an increase of $64,963,000).
• Federal funding for Special Education Infants & Toddlers will remain at the $22,830,000 level for FY2002.
• Federal funding for Special Education Preschool Grants will remain the same at the $34,474,000 level for FY2002.
• Federal funding State Grants for Improving Teacher Quality, a new program, is projected to provide $199,679,000 to New York in FY2002.
• Federal funding for Technology Literacy Challenge Fund is eliminated in FY2002 (a decrease of $42,422,000). However, $36,515,000 remains from prior years and is projected to be spent in FY2002.
• Federal funding For Vocational Education - Basic State Grant in increased by $10,000,000 from $52,487,000 to $52,497,000 in FY2002.
• Federal funding for Vocational Education - Technical Prep is projected to remain at the same level of $5,247,000 in FY2002.
• Federal funding for the National Foundation for the Arts - State Programs is projected to remain at the same $724,000 level for FY2002.
• Federal funding for the National Foundation for the Humanities is projected to increase by $62,000 from $14,614,000 to $14,675,000 in FY2002.
• Federal funding for State Library Program is projected to increase by $1,499,000 from $10,080,000 to $11,579,000 in FY2002.

The Department of Labor receives $554,873,900 in federal funding in the 2001-02 Executive Budget. This money is primarily accounted for in the Administration Program's Unemployment Insurance (UI) Administrative Fund, which is budgeted to receive $518,830,900. Most of the remaining federal funding is in the Unemployment Insurance Benefit Program's UI Occupational Training Fund which is funded at $35,600,000. Based on the above it is difficult to know how or if the changes shown below will impact state staff. It appears as though the NYSDOL lumps all funding from the federal government into the UI programs and then disperses from there. An example is that the Disabled Veterans' Outreach Program certainly uses state employees yet there is no federal funding shown in any program but UI.

• Federal funding for the Disabled Veterans' Outreach Program is projected to receive the same level of funding, $5,704,000 in FY2002 as it is scheduled to receive this year.
• Federal funding for the Dislocated Workers Forward Funding program is projected to receive ($13,742,000) less in funding in FY2002. This is a reduction from $105,560,000 to $91,817,000.
• Federal funding for Employment Services Administration Forward Funding is projected to stay at the same level, $47,495,000 in FY2002.
• Federal funding for JTPA - Adult is projected to be reduced from $80,620,000 to $76,385,000 in FY2002, this represents a cut of ($4,244,000).
• Federal funding for JTPA - Youth is not provided with any funding again in FY2002.
• Federal funding for Local Veterans Employment Representative Program is projected to increase from $4,281,000 to $4,284,000 in FY2002 an increase of $3,000.
• Federal funding for the UI State Administration Base Allocation is increased by $3,176,000 from $150,249,000 to $153,425,000 in FY2002.

The Office of Children and Family Services (OCFS) and the Office of Temporary and Disability Assistance (OTADA) will be listed together here since it is impossible to figure out to which agency the money from the federal government is going.

The Executive Budget includes federal funding at the level of $82,248,000 for fiscal year 2001-02. This is broken down as follows:

• $14,800,000 in the Child Care program's Federal Day Care Account,
• $24,648,000 in the Commission for the Blind and Visually Handicapped program's Federal Rehabilitation Services/Basic Support Account,
• $13 million in the Family and Children's Services program's Discretionary Demonstration Account,
• $3 million in the Family and Children's Services Youth Rehabilitation Account,
• $1.8 million in the Family and Children's Services Youth Projects Account and
• $25 million in the Systems Support program's Connections Account.

The Executive Budget includes federal funding at the level of $311,670,000 for fiscal year 2001-02. This is broken down as follows:

• $7 million in the Administration program's Federal Health and Human Services Fund - 265 Account,
• $3.1 million in the Division of Child Support Enforcement's Child Support Account,
• $163.3 million in the Division of Disability Determinations Health and Human Services Fund - 265 Account,
• $2.27 million in the Transitional Supports and Policy program's Refugee Settlement Account,
• $40 million in the System Support and Information Services program's USDA Food and Nutritional Services Fund - 261 Account and,
• $90 million in the System Support and Information Services program's Health and Human Services Fund - 265 Account.

The Federal Budget projections for these program areas are as follows:

• Federal funding for the Child Nutrition - Adult & Child Care Food is increased by $5,115,000 from $130,681,000 to $135,796,000 in FY2002.
• Federal funding for the Child Nutrition - Commodities was decreased by ($33,000) from $47,206,000 to $47,173,000 in the FY2002 budget.
• Federal funding for the Child Nutrition - State Administration Expenses was increased by 172,000 from $8,415,000 to $8,587,000 for FY2002.
• Federal funding for the Elderly Feeding was maintained at the $14,816,000 level for FY2002.
• Federal funding for the Emergency Food and Shelter was decreased by ($24,000) from 10,868,000 to 10,844,000 for FY2002.
• Federal funding for the Food Stamp Employment and Training was decreased by ($3,847,000) from $56,422,000 to $52,575,000 for FY2002.
• Federal funding for the Food Stamp Administration was decreased by ($8,518,000) from $181,437,000 to $172,919,000 for FY2002.
• Federal funding for the TEFAP - Emergency Food Assistance Administration we kept at the $3,202,000 level for FY2002.
• Federal funding for the Child Support Enforcement Administration was increased by $16,977,000 from $187,847,000 to 198,824,000 for FY2002.
• Federal funding for Child Support Enforcement Federal Share Collection was increased by $2,388,000 for FY2002.
• Federal funding for Temporary Assistance for Needy Families was maintained at the $2,442,931,000 level for FY2002.
• Federal funding for Welfare-to-Work Grants to States and Localities was fully eliminated in FY2002.
• Federal funding for Home Investment State Grants was decreased by ($2,628,000) from $35,566,000 to $32,938,000 for FY2002.
• Federal funding for the Low Income Home Energy Assistance was maintained at the $174,373,000 level for FY2002.
• Federal funding for Refugee Assistance Cash & Medical was increased by $56,000 from $6,000,000 to $6,057,000 for FY2002.
• Federal funding for Refugee Assistance Health Services was maintained at the $205,000 level for FY2002.
• Federal funding for Refugee Assistance Social Services was decreased by ($20,000) from $8,677,000 to $8,657,000 for FY2002.
• Federal funding for Refugee Targeted Assistance was maintained at the same $6,157,000 level for FY2002.
• Federal funding for Administration on Aging Support Services is increased by $145,000 from $24,656,000 to 24,802,000 for FY2002.
• Federal funding for Adoption Assistance is increased by $35,740,000 from $187,401,000 to 223,141,000 for FY2002.
• Federal funding for Child Care & Development Block Grant was increased by $11,130,000 from $11,297,000 to $122,426,000 for FY2002.
• Federal funding for Child Welfare Services was increased by $1,000 from $14,539,000 to $14,540,000 for FY2002.
• Federal funding for Community Services Block Grant remains unchanged at the $51,752,000 level for FY2002.
• Federal funding for Foster Care decreases by ($1,007,000) from $599,606,000 to $598,599,000 for FY2002.
• Federal funding for Head Start increases by $8,178,000 from $405,651,000 to $413,829,000 for FY2002.
• Federal funding for Runaway & Homeless Youth increases by $109,000 from 2,719,000 to $2,828,000 for FY2002.
• Federal funding for the Social Services Block Grant decreases by ($1,672,000) from $115,342,000 to $113,670,000 for FY2002.

The net change for all of the programs listed above is an increase of $64.8 million. You must keep in mind though, that we do not know how much of this money, if any, goes to support state positions.