The State University of New York
The enacted budget makes the following changes to the Executive Budget (analysis as of March 31, 2005):
· The Legislature denies the Governor’s proposal to authorize the SUNY Board of Trustees to transfer the SUNY hospitals to the private sector.
- The Legislature denies the proposed tuition increase that the Executive Budget assumed. To maintain SUNY, then, the Legislature increased the General Fund appropriation in the All State University Colleges program from $120.4 million to $212.2 million, and reduced the tuition offset in the General Revenue Offset appropriation from $1,099.1 million to $1,014.8 million. The net change in support level is $84.3 million less in tuition, countered by $91.8 million more in General Fund support.
The Executive Budget recommends (analysis as of January 20, 2005):
· An estimated 38,100 FTE positions consisting of 22,600 positions supported through a combination of state tax dollars and tuition revenues and 15,500 positions supported by other funds. According to the Division of Budget’s Workforce Impact Summary Report there will be no positions abolished or lost to attrition in SFY 2005-06. In fact, the SFY 2004-05 FTE level is approximately 700 higher than originally estimated in the SFY 2004-05 Executive Budget.
· The budget proposes an 8%, or $423 million, increase in SUNY’s State Operation budget, rising from $5.3 billion to $5.7 billion.
· Legislation will again be introduced to allow the SUNY Board of Trustees to transfer operations of the SUNY hospitals to one or more private, not-for-profit corporations. If the Trustees approve the conversion (and there is little doubt that they will, if given the authority), 10,000 SUNY hospital employees would not be state employees. This means it is possible that current hospital employees could no longer participate in the retirement system, could no longer be represented by PEF and could no longer have Civil Service system rights and protections. The bill directs the Trustees to turn over a transfer plan to the Governor and the Legislature on or before October 1, 2005.
· An overall increase at Stony Brook Health Science Center of $87.2 million (14.8 percent) This includes an increase in personal services of $27.2 million (10 percent), an increase in non-personal services of $60 million (29.3 percent), an increase in fringe benefits of $2.9 million (3 percent), and a decrease of $3 million (18 percent) in debt service. The purpose of these changes should be clarified at Labor-Management.
· An overall increase at Brooklyn Health Science Center of $50.2 million (15.6 percent). This is made up of an increase in personal services of $26.2 million (16.7 percent), an increase in non-personal services of $19.6 million (19 percent), an increase in fringe benefits of $3.8 million (7 percent) and an increase of $0.6 million (8.7 percent) in debt service. The purpose of these changes should be clarified at Labor-Management.
· An overall increase at Syracuse Health Science Center of $56.4 million (13.3 percent). This is made up of an increase in personal services of $25.9 million (15.8 percent), an increase in non-personal services of $18.8 million (9.7 percent), an increase in fringe benefits of $9.1 million (15.9 percent) and an increase in debt service of $2.6 million (24.5 percent). The purpose of these changes should be clarified at Labor-Management.
· The recommended State subsidy for the SUNY hospitals, which recognizes costs attributable to their state agency status, is increased by $36.8 million for a total of $129.4 million to reflect collectively bargained salary increases and costs attributed to fringe benefits for 2005-06.
· A payment of $6.5 million for the State’s share of a multi-year effort by the SUNY hospitals and the State to address the accumulated deficit of the hospitals.
· Funding for the Long Island Veterans’ Home is increased by $3.1 million, or 10%. The purpose of these changes should be clarified at Labor-Management.
· Re-authorizes and balances HCRA—currently scheduled to expire on June 30, 2005 —for an additional two years and proposes a series of actions to maximize the use of available resources and reduce costs where feasible. There are proposals in the reauthorization language that may have a long range impact on SUNY hospitals, including: continuation of the Workforce Recruitment and Retention Program; increase in the GME surcharge; giving the Commissioner authority to issue regulations to revise the distribution methodology of hospital indigent care payments. Employment levels are not affected this year, but long-term evaluation is necessary.
· Proposes Medicaid reform legislation, including: reducing GME payments; elimination of specialty rates for mental health outpatient programs; removal of inflationary cost increases from the hospital and nursing home rates; reestablishes a 0.7 percent non-reimbursable assessment on total hospital revenues; elimination of certain non-mandated services. Employment levels are not affected this year, but long-term evaluation of the impact of the changes is necessary.
State University of New York
Program Details-State Operations
Enacted
Proposed
Enacted
Change in
Percent
Program
2004-05 Budget
2005-06 Budget
2005-06 Budget
Appropriation
Change
All Funds
$5,314,585,000
$5,737,864,000
$5,745,441,000
$430,856,000
8.1%
General Fund
$1,637,724,000
$1,794,180,000
$1,886,057,000
$248,333,000
15.2%
Special Revenue-Federal
$200,550,000
$200,500,000
$200,500,000
($50,000)
0.0%
Special Revenue-Other
$3,465,311,000
$3,731,184,000
$3,646,884,000
$181,573,000
5.2%
Internal Services Funds
$11,000,000
$12,000,000
$12,000,000
$1,000,000
9.1%
Doctoral&Health Sci Campus
$470,472,000
$476,833,000
$476,833,000
$6,361,000
1.4%
SUNY Stony Brook
$125,055,000
$128,281,000
$128,281,000
$3,226,000
2.6%
SUNY HSC Brooklyn
$50,741,000
$50,882,000
$50,882,000
$141,000
0.3%
SUNY HSC Syracuse
$34,929,000
$35,133,000
$35,133,000
$204,000
0.6%
State University Colleges
$142,372,000
$165,667,000
$165,667,000
$23,295,000
16.4%
Colleges of Tech. & Agric.
$44,210,000
$48,755,000
$48,755,000
$4,545,000
10.3%
Statutory & Contract College
$125,836,000
$114,427,000
$114,427,000
($11,409,000)
-9.1%
All State University Colleges
$168,126,000
$120,365,000
$212,242,000
$44,116,000
26.2%
Research and Public Service
$11,268,000
$11,448,000
$12,198,000
$930,000
8.3%
Infrastructure & Tech.
$82,999,000
$21,344,000
$105,644,000
$22,645,000
27.3%
Student Svs & Financial Aid
$20,779,000
$22,265,000
$20,792,000
$13,000
0.1%
Educ. & Econ. Disadvan.
$56,170,000
$50,591,000
$58,891,000
$2,721,000
4.8%
Svcs & Exp Central Admin
($3,090,000)
$14,717,000
$14,717,000
$17,807,000
-576.3%
Employee Fringe Benefits
$686,708,000
$868,133,000
$868,133,000
$181,425,000
26.4%
Student Aid
$200,550,000
$200,500,000
$200,500,000
($50,000)
0.0%
Special Revenue-Federal
$200,550,000
$200,500,000
$200,500,000
($50,000)
0.0%
Special Revenue-Other
$31,000,000
$30,000,000
$30,000,000
($1,000,000)
-3.2%
College Work Study Acct (SRF)
$24,000,000
$24,000,000
$24,000,000
$0
0.0%
SUNY Pell Program Acct (SRF)
$175,000,000
$175,000,000
$175,000,000
$0
0.0%
Federal Scholarship Acct (SRF)
$1,550,000
$1,500,000
$1,500,000
($50,000)
-3.2%
State University Restricted Current Fund (SRO)
$31,000,000
$30,000,000
$30,000,000
($1,000,000)
-3.2%
Student Loans
$37,000,000
$37,000,000
$37,000,000
$0
0.0%
Special Revenue-Other
$37,000,000
$37,000,000
$37,000,000
$0
0.0%