MEMORANDUM IN SUPPORT

A BUDGET BILL submitted by the Governor in accordance with Article VII of the Constitution

AN ACT to amend a chapter of the laws of 2005, enacting the public protection and general government budget; to amend a chapter of the laws of 2005, enacting the education, labor and family assistance budget; to amend a chapter of the laws of 2005, enacting the health and mental hygiene budget; and to amend a chapter of the laws of 2005, enacting the transportation, economic development and environmental conservation budget, in relation to making appropriations for the support of government

Purpose:  This bill amends the 2005-06 Budget appropriation bills passed by the Legislature, to refine and complete the actions taken by those bills.

Summary of Provisions:    The bill makes changes to the 2005-06 Budget appropriation bills, as passed by the Legislature, to address fiscal and programmatic issues raised by those bills and to facilitate enactment of a constitutionally correct Budget.

Sections 1 and 2 amend the Public Protection and General Government budget to:

• Provide nonpersonal service funding for the Civil Service Department to support moving costs;
• Remove Probation-related appropriations from the Division of Criminal Justice Services, reflecting the Legislature’s denial of a proposed merger;
• Add HAVA (Help America Vote Act) appropriations in the State Board of Elections budget;
• Appropriate funds for disaster relief  for flood victims of the recent severe storms in the State;
• Remove appropriations for the proposed State Labor Relations Board, reflecting the Legislature’s denial of a proposed merger;
• Increase the appropriation for payments under section 19-A of the Public Lands Law; and
• Modify appropriation language for Local Government Assistance, add an appropriation for Shared Municipal Services Grants, and make a technical correction to a program name.

Section 3 amends the Education, Labor and Family Assistance budget to:

• Remove appropriations for NYICE (the New York Institute for Cultural Education) from the Council on the Arts, reflecting the Legislature’s denial of a proposed merger;
• Modify the amount provided for State reimbursement for a project at Queensborough Community College to conform with the standard policy of reimbursement at 50% of total project cost;
• Remove authorization to transfer appropriations for NYICE and VESID (Vocational and Educational Services for Individuals with Disabilities) from the State Education Department (SED) to other agencies,  reflecting the Legislature’s denial of  proposed mergers;
• Remove an appropriation for conduct of School Audits from SED (such funding was appropriated to the Department of Audit and Control);
• Consolidate appropriations for the Consortium for Worker Education and the related offset, and make conforming changes to those appropriations and the Employment Preparation Education program appropriation;
• Provide $6M for start-up grants and technical assistance for Charter schools including $2.15 million for the Charter Schools Institute (CSI);
• Provide $475,000 for Character Education;
• Amend Temporary Assistance for Needy Families (TANF) appropriation language regarding amounts for specific purposes, increase the amount of the TANF appropriation, and clarify the ability to suballocate funds to the Department of Labor;
• Modify a legislative appropriation for the Tuition Assistance Program to address constitutional concerns;
• Remove VESID and Workers’ Compensation Board appropriations from the Labor Department, reflecting the Legislature’s denial of a proposed merger; 
• Adjust the amount of capital funding for SUNY Binghamton and for Broome County Community College; and
• Provide funding for the Higher Education Facilities Capital Matching Grants Program.

Sections 4 and 5 amend the Transportation, Economic Development and Environmental Conservation budget to:

• Replace the appropriations for the Geneva Experiment Station and Integrated Pest Management, to address constitutional concerns while maintaining the funding;
• Provide an appropriation for the All Terrain Vehicle program;
• Provide $150 million of Environmental Protection Fund (EPF) appropriations;
• Replace the appropriation for the environmental justice program, to address constitutional concerns while maintaining the funding;
• Remove the General Fund appropriation for Quality Community activities, which will be funded from the EPF;
• Increase funding from the Mass Transportation Operating Assistance Fund to reflect additional revenues;
• Delete appropriations for the SPUR initiative, which will be addressed through a modified regional economic development program;
• Provide $10M in local assistance and $90M in capital appropriations for the regional economic development program;
• Create the $250M Technology Development Program;
• Decrease the contingent appropriation for the Dedicated Mass Transportation Trust Fund; and
• Authorize transfer of NYSTAR (the Office of Science, Technology and Academic Research) appropriations to the new Science and Technology  Foundation, pursuant to a chapter of the laws of 2005.
• Section 6 and 7 amend the Health and Mental Hygiene budget to:
• Make technical corrections to Medicaid appropriations;
• Provide additional nonpersonal service funding for the Health Department;
• Provide funding for Nursing Home Quality, linked to the Commission on Health Care Facilities in the 21^st Century; and
• Establish restrictions on HCRA disbursements after July 1, 2005 under certain circumstances.

Section 8 provides that the bill is effective on the effective date of the bills that it amends (April 1, 2005), provided that a companion Article VII bill as submitted by the Governor is enacted as proposed.

Existing Law:  This is a new bill.

Statement in Support:  Enactment of this bill is necessary to support implementation of a sound and fiscally responsible 2005-06 State Budget.

Budget Implications:  The provisions of this bill are accommodated in the current Financial Plan for 2005-06.