Higher Education Services Corpor

Higher Education Services Corporation

The enacted budget makes no changes to the Executive Budget (analysis as of 4/2/2007)

The Executive budget recommends (analysis as of February 3, 2007):

A FY 2007-08 workforce of 700. This maintains the number of FTEs from the adjusted FTE level for FY 2006-07.

The total appropriation for Personal Service is $45.1 million, 2%.

An All Funds increase of $10.8 million, 9.7% from SFY 2006-07.

The HESC Premium Payments Account (SRO) increased by 21%, with most of those increases being related to contractual services. The Nonpersonal Service funding for this account increased by $5.2 million, with 48% or $19.4 million of the total Nonpersonal Service funding allocated for Contractual Services. Additionally, the Maintenance Undistributed funding within this account, $5 million, is for Contractual Services, specifically related to rental cost increases and potential moving expenses. The potential for relocation should be explained at statewide labor management.

The Higher Education Services Corporation (HESC) employed an estimated 21 employees under consultant contracts in SFY 2006-07 at an estimated cost of $8.03 million or an average cost of $382,581 per consultant contract employee. It is estimated that the number of employees employed under consultant contracts will not change in SFY 2007-08. However, in SFY 2007-08 the consultant contract employees will be paid $8.08 million in SFY 2007-08 or an average cost of $384,705 per consultant contract employee, a 1% increase over the average cost in SFY 2006-07. The purpose and use of these contract employees and whether they can be replaced by state employees should be clarified at statewide labor management.

Higher Education Services Corporation

Program Details-State Operations

Enacted Proposed Enacted Change in Percent

Program 2006-07 Budget 2007-08 Budget 2007-08 Budget Appropriation Change

All Funds $110,455,000 $121,216,200 $121,216,200 $10,761,200 9.7%

Special Revenue-Federal $5,000,000 $5,000,000 $5,000,000 $0 0.0%

Special Revenue-Other $105,455,000 $116,216,200 $116,216,200 $10,761,200 10.2%

Personal Services $44,234,000 $45,093,800 $45,093,800 $859,800 1.9%

Contractual Services

Administration $51,451,000 $61,899,000 $61,899,000 $10,448,000 20.3%

Personal Service $2,594,000 $2,702,000 $2,702,000 $108,000 4.2%

Regular $2,702,000 $2,702,000 0.0%

Nonpersonal Service $4,143,000 $4,208,000 $4,208,000 $65,000 1.6%

Supplies and materials $2,104,000 $2,104,000 0.0%

Equipment $2,104,000 $2,104,000 0.0%

Miscellaneous special revenue fund ($6,737,000) ($6,910,000) ($6,910,000) ($173,000) 2.6%

Special Revenue-Other (SRO) $51,451,000 $61,899,000 $61,899,000 $10,448,000 20.3%

HESC-Insurance Premium Payments Acct - (SRO) $50,951,000 $61,399,000 $61,399,000 $10,448,000 20.5%

Personal Service $15,763,000 $16,030,000 $16,030,000 $267,000 1.7%

Regular $15,813,600 $15,813,600 0.0%

Holiday/overtime compensation $216,400 $216,400 0.0%

Nonpersonal Services $35,188,000 $40,369,000 $40,369,000 $5,181,000 14.7%

Supplies and materials $629,000 $629,000 0.0%

Travel $261,000 $261,000 0.0%

Contractual Services $19,411,100 $19,411,100 0.0%

Equipment $931,900 $931,900 0.0%

Fringe benefits $16,151,000 $17,811,000 $17,811,000 $1,660,000 10.3%

Indirect costs $1,304,000 $1,325,000 $1,325,000 $21,000 1.6%

Mainenance Undistributed $5,000,000 $5,000,000 0.0%

Contractual Services $5,000,000 $5,000,000 0.0%

State Student Financial Aid Audit Acct - (SRO) $500,000 $500,000 $500,000 $0 0.0%

Grants & Scholarship $0 $0 $0

Personal Service $3,978,000 $4,144,000 $4,144,000 $166,000 4.2%

Regular $4,144,000 $4,144,000 0.0%

Nonpersonal Service $1,021,000 $1,036,000 $1,036,000 $15,000 1.5%

Supplies and materials $518,000 $518,000 0.0%

Equipment $518,000 $518,000 0.0%

Miscellaneous special revenue fund ($4,999,000) ($5,180,000) ($5,180,000) ($181,000) 3.6%

Guaranteed Loan $59,004,000 $59,317,200 $59,317,200 $313,200 0.5%

Special Revenue-Other (SRF) $5,000,000 $5,000,000 $5,000,000 $0 0.0%

Special Revenue-Other (SRO) $54,004,000 $54,317,200 $54,317,200 $313,200 0.6%

Federal GEAR-UP Acct - (SRF) $5,000,000 $5,000,000 $5,000,000 $0 0.0%

HESC-Insurance Premium Payments Acct - (SRO) $54,004,000 $54,317,200 $54,317,200 $313,200 0.6%

Personal Service $21,502,000 $21,816,000 $21,816,000 $314,000 1.5%

Regular $21,023,600 $21,023,600 0.0%

Holiday/overtime compensation $792,400 $792,400 0.0%

Nonpersonal Service $32,502,000 $32,501,200 $32,501,200 ($800) 0.0%

Supplies and materials $82,300 $82,300 0.0%

Travel $280,000 $280,000 0.0%

Contractual Services $31,861,700 $31,861,700 0.0%

Equipment $277,200 $277,200 0.0%

College Choice Tuition Savings Pgm * (p. 490) $780,000 $795,500 $795,500 $15,500 2.0%

Special Revenue-Other (SRO) $780,000 $795,500 $795,500 $15,500 2.0%

College Savings Acct - (SRO) $780,000 $795,500 $795,500 $15,500 2.0%

Personal Service $397,000 $401,800 $401,800 $4,800 1.2%

Nonpersonal Services $190,000 $190,000 $190,000 $0 0.0%

Fringe Benefits $179,000 $189,400 $189,400 $10,400 5.8%

Indirect Costs $14,000 $14,300 $14,300 $300 2.1%

* Appears in Miscellaneous Section of Budget Books

Higher Education Services Corporation
Program Details-State Operations
	Enacted	Proposed	Enacted	Change in	Percent
Program	2006-07 Budget	2007-08 Budget	2007-08 Budget	Appropriation	Change
All Funds	$110,455,000	$121,216,200	$121,216,200	$10,761,200	9.7%
Special Revenue-Federal	$5,000,000	$5,000,000	$5,000,000	$0	0.0%
Special Revenue-Other	$105,455,000	$116,216,200	$116,216,200	$10,761,200	10.2%

Personal Services	$44,234,000	$45,093,800	$45,093,800	$859,800	1.9%
Contractual Services

Administration	$51,451,000	$61,899,000	$61,899,000	$10,448,000	20.3%
Personal Service	$2,594,000	$2,702,000	$2,702,000	$108,000	4.2%
Regular		$2,702,000	$2,702,000		0.0%
Nonpersonal Service	$4,143,000	$4,208,000	$4,208,000	$65,000	1.6%
Supplies and materials		$2,104,000	$2,104,000		0.0%
Equipment		$2,104,000	$2,104,000		0.0%
Miscellaneous special revenue fund	($6,737,000)	($6,910,000)	($6,910,000)	($173,000)	2.6%
Special Revenue-Other (SRO)	$51,451,000	$61,899,000	$61,899,000	$10,448,000	20.3%

HESC-Insurance Premium Payments Acct - (SRO)	$50,951,000	$61,399,000	$61,399,000	$10,448,000	20.5%
Personal Service	$15,763,000	$16,030,000	$16,030,000	$267,000	1.7%
Regular		$15,813,600	$15,813,600		0.0%
Holiday/overtime compensation		$216,400	$216,400		0.0%
Nonpersonal Services	$35,188,000	$40,369,000	$40,369,000	$5,181,000	14.7%
Supplies and materials		$629,000	$629,000		0.0%
Travel		$261,000	$261,000		0.0%
Contractual Services		$19,411,100	$19,411,100		0.0%
Equipment		$931,900	$931,900		0.0%
Fringe benefits	$16,151,000	$17,811,000	$17,811,000	$1,660,000	10.3%
Indirect costs	$1,304,000	$1,325,000	$1,325,000	$21,000	1.6%
Mainenance Undistributed		$5,000,000	$5,000,000		0.0%
Contractual Services		$5,000,000	$5,000,000		0.0%

State Student Financial Aid Audit Acct - (SRO)	$500,000	$500,000	$500,000	$0	0.0%

Grants & Scholarship	$0	$0	$0
Personal Service	$3,978,000	$4,144,000	$4,144,000	$166,000	4.2%
Regular		$4,144,000	$4,144,000		0.0%
Nonpersonal Service	$1,021,000	$1,036,000	$1,036,000	$15,000	1.5%
Supplies and materials		$518,000	$518,000		0.0%
Equipment		$518,000	$518,000		0.0%
Miscellaneous special revenue fund	($4,999,000)	($5,180,000)	($5,180,000)	($181,000)	3.6%

Guaranteed Loan	$59,004,000	$59,317,200	$59,317,200	$313,200	0.5%
Special Revenue-Other (SRF)	$5,000,000	$5,000,000	$5,000,000	$0	0.0%
Special Revenue-Other (SRO)	$54,004,000	$54,317,200	$54,317,200	$313,200	0.6%

Federal GEAR-UP Acct - (SRF)	$5,000,000	$5,000,000	$5,000,000	$0	0.0%

HESC-Insurance Premium Payments Acct - (SRO)	$54,004,000	$54,317,200	$54,317,200	$313,200	0.6%
Personal Service	$21,502,000	$21,816,000	$21,816,000	$314,000	1.5%
Regular		$21,023,600	$21,023,600		0.0%
Holiday/overtime compensation		$792,400	$792,400		0.0%
Nonpersonal Service	$32,502,000	$32,501,200	$32,501,200	($800)	0.0%
Supplies and materials		$82,300	$82,300		0.0%
Travel		$280,000	$280,000		0.0%
Contractual Services		$31,861,700	$31,861,700		0.0%
Equipment		$277,200	$277,200		0.0%

College Choice Tuition Savings Pgm * (p. 490)	$780,000	$795,500	$795,500	$15,500	2.0%
Special Revenue-Other (SRO)	$780,000	$795,500	$795,500	$15,500	2.0%

College Savings Acct - (SRO)	$780,000	$795,500	$795,500	$15,500	2.0%
Personal Service	$397,000	$401,800	$401,800	$4,800	1.2%
Nonpersonal Services	$190,000	$190,000	$190,000	$0	0.0%
Fringe Benefits	$179,000	$189,400	$189,400	$10,400	5.8%
Indirect Costs	$14,000	$14,300	$14,300	$300	2.1%

* Appears in Miscellaneous Section of Budget Books