State Education Department
The enacted budget makes the following changes to the Executive Budget (analysis as of March 31, 2005):
The total State Operations budget is $480.8 million in the enacted 05-06 budget, which is $63.1 million higher than the State Operations budget of $417.7 million proposed by the Executive. General Fund support increases from $37.1 million to $41.6 million. Special Revenue – Other increases from $132.1 million to $146.5 million, and Special Revenue – Federal increases from $132.1 million to $269.7 million.
The increases come primarily from the Legislature’s denial of two significant mergers proposed by the Governor: the transfer of certain cultural education SED funds and programs to the newly created “New York Institute for Cultural Education” and the transfer of certain vocational education SED funds and programs to the Department of Labor.
Specific changes to the Executive Budget include the following:
- The Legislature denies the $2 million in savings through “Management Efficiencies” proposed by the Governor by adding a $2 million appropriation.
- The Legislature adds $2.5 million in a General Fund maintenance undistributed appropriation in the Office of Higher Education and Professions program for tenured teacher hearings. The Executive had proposed to eliminate General Fund support ($2.1 million in 2004-05), but had proposed a $3.15 million appropriation in Special Revenue – Other funds through shifting the costs of these hearings to school districts. The Legislature let stand the proposed $3.15 million Special Revenue other appropriation, resulting in a total of $5.65 for tenured teacher hearings. We believe the $3.15 million appropriation is a “dry” appropriation because the Legislature did not enact the legislation necessary for the money to be raised and expended.
· The Legislature adds $14 million in Special Revenue – Other funds in the Cultural Education Account within the Cultural Education program for services and expenses of the Office for Cultural Education, for a total appropriation of $28 million. The Executive proposed $14 million, the 2004-05 appropriation was $19 million. The funding that appears in Council on Arts’ budget for NYICE is a “null” appropriation because the Legislature did not enact the legislation necessary for it to be spent.
- The Legislature denies the Executive’s proposal to transfer vocational education operations from SED to the Department of Labor. To do so, the appropriations for State Operations increase from the Executive’s proposed $95.7 million to the enacted $140.3 million, equal to the 2004-05 appropriation
The 30 day amendments recommend the following changes (analysis as of February 14, 2005):
- Adds $650,000 to the Special Revenue Other Tenured Teacher Hearing Account According to DOB, this is due to “revised cost estimates provided by the State Education Department.”
The proposed Deficiency Budget recommends (analysis as of February 14, 2005):
- An increase of $2.3 million in nonpersonal services (General Fund) in the Elementary, Middle, Secondary and Continuing Education Program. This appears to reflect in increase for “the administration of general education development tests for the high school equivalency diploma.”
The Executive Budget recommends (analysis as of January 19, 2005):
· A decrease of 1,170 FTE positions from the adjusted workforce for 3/31/2005. While the total adjusted workforce for SED remained the same as that estimated in the SFY 2004-05 budget, there were several changes within programs during the year:
§ Office of Management Services Program: a loss of 15 FTEs.
§ Elementary, Middle and Secondary Education: a loss of 4 FTEs.
§ Higher Education and the Professions: a loss of 1 FTE
§ Management Efficiencies Program: an anticipated loss of 20 FTEs in the Management Efficiencies Program did not occur despite the Governor’s override of the Legislature’s restoration.
· A loss of 1,150 FTE positions due to the proposed transfer of the VESID program to the Department of Labor (750 FTEs) and the proposed consolidation of the State Museum, State Library, and State Archives into a new public benefit corporation called the New York Institute for Cultural Education (NYICE) on October 1, 2005 (400 FTE positions). Another 20 FTE positions will be lost through attrition due to a proposed “Management Efficiencies” program, which is estimated to save $2 million. Three FTEs in the Higher Education program are shifted from General Fund to Special Revenue-other support.
· The consolidation of the State Museum, State Library, and State Archives into a new public benefit corporation called the New York Institute for Cultural Education (NYICE) on October 1, 2005. This would involve the transfer of 400 FTEs, including many PEF members. These employees would remain State employees and maintain their current civil service and representational rights and privileges. The Legislature has rejected similar proposals the last three years.
· The transfer of all job-related services of the Vocational and Educational Services for Individuals with Disabilities (VESID) program, including coordination of employment services, from SED to DOL effective October 1, 2005. 750 VESID employees would be transferred to DOL under section 70.1 of the Civil Service Law. All programs relating to the education of children with disabilities will continue to be administered by SED (245 FTEs will remain in SED). No cost savings is attributed to this transfer although the DOB notes in its memorandum of support that the transfer would “result in improved program coordination and will lead to enhanced cost-effectiveness for vocational rehabilitation programs.”
· The following changes in the Department’s State Operations budget: an overall decrease of $23.7 million (-5.4 percent); a decrease in General Fund support of $2.5 million (-6.5 percent); a $30.5 million decrease (-11.9 percent) in the Special Revenue Fund-Federal; a $7.2 million increase (5.8 percent) in Special Revenue Funds-Other; a $2.1 million increase (10.1 percent) in Internal Services Funds.
· An increase of $2.6 million in the Office of Management Services Program. This includes a reduction of $994,000 in nonpersonal services and increases of $1.8 million (8.4 percent) in Special Revenue-Other and $1.7 million (13.5 percent) in Internal Services Funds. The reasons for these increases should be clarified at Labor-Management.
· An increase of $11.8 million in the Elementary, Middle, Secondary and Continuing Education Program. This breaks out to an increase of $479,000 (4.3 percent) in General Fund personal services, a decrease of $3.1 million (31 percent) in General Fund nonpersonal services, and an increase of $13.3 million (12.7 percent) in the Special Revenue-Federal (SRF) appropriation. $9.2 million of the $13.3 million SRF increase is for non-personal services in the Federal DOE account. We suspect these funds will be used for contracting out. This issue should be clarified at Labor-Management.
· School for the Blind -- $803,000 (9.4 percent) increase, mostly for personal services and fringe benefits.
· Batavia ICF/DD -- $371,900 (12.2 percent) increase, mostly for personal services and fringe benefits.
· School for the Deaf -- $789,000 (9.7 percent) increase, mostly for personal services and fringe benefits.
· Office of Higher Education and the Professions -- $6.7 million (11.6 percent) increase. $1.17 million of this increase is for Vocational School Supervision which represents a 63% increase in its appropriation, $4.2 million is for the Office of Professions, and $42.5 million is for a new Tenured Teaching Hearing Account. The reasons for these increases should be clarified at Labor-Management.
· Cultural Education—net reduction of $4.97 million. While it appears that there is a $6 million reduction in the Cultural Education Account from SFY 2004-05, there is more than adequate funding for SED to fund the functions proposed for transfer to the NYICE public benefit corporation for the six months it will remain in SED. There is appropriation language allowing the transfer of remaining funds to NYICE if the transfer is approved by the Legislature.
· Vocational and Educational Services for Individuals with Disabilities --$44.7 million reduction, reflecting partial year funding in SED for the adult VESID functions proposed for transfer into DOL on October 1, 2005 and full-year funding for the children’s VESID services to remain in SED.
Program Details-State Operations
Enacted
Proposed
Enacted
Change in
Percent
Program
2004-05 Budget
2005-06 Budget
2005-06 Budget
Appropriation
Change
All Funds
$440,738,200
$417,627,000
$480,813,500
$40,075,300
9.1%
General Fund
$39,720,600
$37,124,000
$41,624,000
$1,903,400
4.8%
Special Revenue-Fed
$255,929,500
$225,467,800
$269,698,300
$13,768,800
5.4%
Special Revenue-Other
$124,255,100
$132,088,200
$146,544,200
$22,289,100
17.9%
Internal Service
$20,833,000
$22,947,000
$22,947,000
$2,114,000
10.1%
Office Mgmt Svcs Prog
$51,733,500
$54,286,000
$54,286,000
$2,552,500
4.9%
Personal Service
$9,560,600
$9,571,000
$9,571,000
$10,400
0.1%
Nonpersonal Service
$6,648,900
$5,654,000
$5,654,000
($994,900)
-15.0%
Fringe benefits
$1,190,000
$1,190,000
$1,190,000
$0
0.0%
Special Revenue-Other
$21,674,000
$23,500,000
$23,500,000
$1,826,000
8.4%
Internal Service Fund
$12,660,000
$14,371,000
$14,371,000
$1,711,000
13.5%
Combined Gifts, Grants & Bequests Acct (SRO)
$600,000
$1,800,000
$1,800,000
$1,200,000
200.0%
Indirect Cost Recovery Acct (SRO)
$21,074,000
$21,700,000
$21,700,000
$626,000
3.0%
Personal Service
$7,897,000
$8,490,000
$8,490,000
$593,000
7.5%
Nonpersonal Service
$6,461,000
$6,623,000
$6,623,000
$162,000
2.5%
Fringe Benefits
$2,516,000
$3,922,000
$3,922,000
$1,406,000
55.9%
Maintenance Undist.
$4,200,000
$2,665,000
$2,665,000
($1,535,000)
-36.5%
Automation & Printing Chargeback Acct (ISF)
$12,660,000
$14,371,000
$14,371,000
$1,711,000
13.5%
Personal Service
$5,925,000
$6,359,000
$6,359,000
$434,000
7.3%
Nonpersonal Service
$3,738,000
$3,822,000
$3,822,000
$84,000
2.2%
Fringe Benefits
$1,887,000
$2,938,000
$2,938,000
$1,051,000
55.7%
Maintenance Undist.
$1,110,000
$1,252,000
$1,252,000
$142,000
12.8%
Elem & Middle & Sec & Continuing Educ
$127,311,900
$139,078,400
$139,078,400
$11,766,500
9.2%
Personal Service
$11,051,000
$11,530,000
$11,530,000
$479,000
4.3%
Nonpersonal Service
$10,088,000
$6,961,000
$6,961,000
($3,127,000)
-31.0%
Maint. Undistrib.
$275,000
$275,000
$275,000
$0
0.0%
Special Revenue-Fed (SRF)
$104,919,000
$118,233,000
$118,233,000
$13,314,000
12.7%
Special Revenue-Other
$978,900
$2,079,400
$2,079,400
$1,100,500
112.4%
Fed USDA Food and Nutrition - (SRF)
$7,775,000
$8,057,000
$8,057,000
$282,000
3.6%
Personal Service
$3,559,000
$3,737,000
$3,737,000
$178,000
5.0%
Nonpersonal Service
$1,824,000