The City University of New York

Preliminary Analysis of 2001-2002
State and City Adopted Budgets

University Budget Office
AUGUST 2, 2001
(subject to revision)

STATE ADOPTED BUDGET - SENIOR COLLEGE HIGHLIGHTS

• The FY2002 State Adopted Budget recommendation totals $1,013.5 billion, a decrease of $4.9 million from the 2001-2002 adopted budget level, and a decrease of $14 million from the State Executive Budget recommendations.
• The Adopted Budget includes a lump sum appropriation of $7 million (down from $20 million in Executive Budget) for services and expenses related to increased costs, full-time faculty and other program initiatives, including up to $6.3 million for operating cost of Baruch College's new facility. However, new budget language states that these funds "shall only be available for services and expenses of the University related to contractual salary increments and other mandatory costs".
• The Adopted Budget eliminates the $1 million in additional funding for the CUNY/Board of Education Summer Language Immersion program recommended in Executive Budget.
• The Adopted Budget does not include funding of CUNY "member" items.
• The City University Stabilization Account, which provides for the rollover of unexpended funds from the current fiscal year, is eliminated.
• $3 million in funding for CUNY/1199 health care worker retraining center, which was added during the 30-day amendment process, has been eliminated.

Items that remain unchanged from the Executive Budget: Senior and Community

• The adopted budget includes $7.3 million in reductions to FY2001 legislative add-ons for: SEEK/CD ($3.0 million), Child Care ($1.9 million), Queens College Center for Worker Education ($0.4 million) and Community College full-time faculty ($2.0 million).
• The Adopted Budget renews last year's appropriation of $3.7 million for full-time faculty added by the Legislature, and provides for an additional $3.3 million to cover the annualization cost associated with these faculty hires.
• The Adopted Budget provides $6.3 million in additional funding for fringe benefits.
• The Adopted Budget continues last year's appropriation of $7.1 million for Academic Support Services.
• The City University Tuition Reimbursable Account (CUTRA), which permits revenue collections in excess of the University's revenue target to be used in subsequent years, remains unchanged at $20 million.
• The Income Fund Reimbursable (IFR) account, which funds senior college continuing education and other self-supporting programs, remains unchanged at $60 million.
  

NEW YORK CITY ADOPTED BUDGET

• Total community college operating budget is $365.9 million, an overall increase of $12.7 million (3.6%) above the Executive Budget. Funding includes $95.2 million in City support, $135.2 million in State aid, and $135.5 million in tuition. (see attached funding table)
• State support is increased by $10.5 million (8.4%) to finance 100 full-time faculty ($5.5 million) and the expansion of the College Now program ($5.0 million).
  Note: Increase in State funding is contingent on the reprogramming of funds currently appropriated in the FY2002 State Executive budget for certain senior college pension payments (SHINN pension payments) that the City administration states are no longer required. Further, the City Administration and the New York City Council, have assured the University that support would be provided so that these initiatives can go forward.
• City Support is increased by $2.2 million, representing restoration of $1.6 million PEG reduction for administrative services, the addition of $0.5 million in legislative "member items" and $0.1 million increase in pensions.
• Tuition remains unchanged from the Executive Budget. (Note: Tuition revenue had been reduced in the Executive by $1.5 million to reflect actual revenue collections)

OTHER CHANGES

• New York City Council Academic Scholarship funding of $6.5 million, eliminated in the City Executive Budget, has been restored.
• $1.0 million is provided for John Jay College Multicultural Training Certificate program.
• $0.7 million is provided for various senior college legislative initiatives.
• All three of the terms and conditions in the City Executive Budget, making the release of CUNY tax-levy funding contingent on the adoption by CUNY of certain policies, have been eliminated.
  
  

CAPITAL BUDGET

The Fiscal Year 2002 State Adopted Budget does not reappropriate the $1,065,539,000 of University Capital Project funds originally included in the State Executive Budget for bonded projects and minor rehabilitation projects.

For the minor rehabilitation funds, CUNY has received an emergency certificate to expend $3 million for already-scheduled active projects.

For the bonded projects, the debt service for current bond obligations has been appropriated so that bond proceeds can be used for the active phases of current projects. However, the approved projects have not been reappropriated making it impossible to issue the necessary bonds to complete the final two years of the approved capital plan. This will impact the projects funded in the condition assessment category, affecting our ability to address facilities preservation, health and safety, educational technology and other pressing needs to ensure our facilities support the operations of the university in a safe and effective manner. Moreover, major capital projects such as Brooklyn College West Quad and John Jay Phase II will be delayed severely impacting the construction cost estimates.

Funding Sources 2001-2002

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