Higher Education Services Corporation
The enacted budget makes no changes to the State Operations portion of the Executive Budget for this agency (analysis as of April 1, 2005).
The Executive Budget recommends (analysis as of January 26, 2005):
· An FTE level of 725 which represents no change from the Governor’s adjusted 3/31/04 FTE estimate of 725. The HESC workforce will be 10 FTEs fewer than estimated in the SFY 2004-05 budget. Workforce changes that occurred in SFY 2004-05 include: 4 FTEs less in the Administration program Special Revenue Funds – Other ; and 6 FTEs less in the Guaranteed Loan Programs Special Revenue Fund.
· An increase in All Funds funding of $2.6 million (2.5 percent). This is net of a decrease of $2.2 million (-30.6 percent) in Special Revenue Funds – Federal and an increase of $4.8 million (4.9 percent) in Special Revenue Funds – Other.
· The federal GEAR-UP account in the Guaranteed Loan Program is decreased by $2.2 million (-30.6%).
· Personal service appropriations in the Administration Program decrease by $406,000 (-16.4 percent), and nonpersonal service appropriations in the Administration Program decrease by $657,000 (-16.6 percent). These are offset by an equal reduction of $1,063,000 in the amount appropriated from the Insurance Premium Payments Account miscellaneous special revenue fund.
· Personal service appropriations in the Grants & Scholarships Program decrease by $624,000 (-16.4 percent), and nonpersonal service appropriations in the Grants & Scholarships Program decrease by $159,000 (-16.4 percent). These are offset by an equal reduction of $783,000 in the amount appropriated from the Insurance Premium Payments Account miscellaneous special revenue fund.
· Within the Insurance Premium Payments Account, fringe benefits not only rise faster than personal services, but cost more as well. Fringe benefits will cost $16.3 million; personal service is $15.3 million. According to Assembly analysis this increase in fringe benefit costs and inflation are the reason for the increase in State operations funding.
· The accompanying language bill imposes new restrictions on students applying for and receiving TAP awards.
Higher Education Services Corporation
Program Details-State Operations
Enacted
Proposed
Enacted
Change in
Percent
Program
2004-05 Budget
2005-06 Budget
2005-06 Budget
Appropriation
Change
All Funds
$98,494,000
$103,307,000
$103,307,000
$4,813,000
4.9%
Special Revenue-Federal
$7,203,000
$5,000,000
$5,000,000
($2,203,000)
-30.6%
Special Revenue-Other
$98,494,000
$103,307,000
$103,307,000
$4,813,000
4.9%
0.0%
Administration
$47,389,000
$50,676,000
$50,676,000
$3,287,000
Personal Service
$2,472,000
$2,066,000
$2,066,000
($406,000)
-16.4%
Nonpersonal Service
$3,957,000
$3,300,000
$3,300,000
($657,000)
-16.6%
Mainenance Undistributed
($6,429,000)
($5,366,000)
($5,366,000)
$1,063,000
-16.5%
Special Revenue-Other (SRO)
$47,389,000
$50,676,000
$50,676,000
$3,287,000
6.9%
0.0%
HESC-Insurance Premium Payments Acct - (SRO)
$46,889,000
$50,176,000
$50,176,000
$3,287,000
Personal Service
$14,186,000
$15,304,000
$15,304,000
$1,118,000
7.9%
Nonpersonal Services
$17,350,000
$17,350,000
$17,350,000
$0
0.0%
Fringe Benefits
$14,186,000
$16,295,000
$16,295,000
$2,109,000
14.9%
Indirect Costs
$1,167,000
$1,227,000
$1,227,000
$60,000
5.1%
0.0%
State Student Financial Aid Audit Acct - (SRO)
$500,000
$500,000
$500,000
$0
0.0%
Grants & Scholarship
$0
$0
$0
0.0%
Personal Service
$3,794,000
$3,170,000
$3,170,000
($624,000)
Nonpersonal Service
$971,000
$812,000
$812,000
($159,000)
-16.4%
Mainenance Undistributed
($4,765,000)
($3,982,000)
($3,982,000)
$783,000
-16.4%
0.0%
Guaranteed Loan (SRO)
$58,308,000
$57,631,000
$57,631,000
($677,000)
-1.2%
Federal GEAR-UP Acct - (SRO)
$7,203,000
$5,000,000
$5,000,000
($2,203,000)
-30.6%
HESC-Insurance Premium Payments Acct - (SRO)
$51,105,000
$52,631,000
$52,631,000
$1,526,000
3.0%
Personal Service
$19,350,000
$20,876,000
$20,876,000
$1,526,000
Nonpersonal Service
$31,755,000
$31,755,000
$31,755,000
$0
0.0%
0.0%
College Choice Tuition Savings Pgm * (p. 685)
$723,000
$734,000
$734,000
$11,000
1.5%
Nonpersonal Service
$0
$0
$0
$0
0.0%
Special Revenue-Other (SRO)
$723,000
$734,000
$734,000
$11,000
1.5%
0.0%
College Savings Acct - (SRO)
$723,000
$734,000
$734,000
$11,000
100.0%
Personal Service
$375,000
$386,000
$386,000
$11,000
2.9%
Nonpersonal Services
$176,000
$160,000
$160,000
($16,000)
100.0%
Fringe Benefits
$159,000
$175,000
$175,000
$16,000
100.0%
Indirect Costs
$13,000
$13,000
$13,000
$0
100.0%
* Appears in Miscellaneous Section of Budget Books