MEMORANDUM IN SUPPORT

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

AN ACT to amend chapters 50, 53 and 55 making appropriations for the support of government

Purpose: This deficiency appropriation bill amends chapters 50, 53 and 55 of the Laws of 2006 which made appropriations for the 2006-07 fiscal year, to meet essential obligations for which funding was not provided in the enacted budget.

Summary of Provisions:

Section 1 amends the 2006-07 Public Protection and General Government Budget as follows:

STATE BOARD OF ELECTIONS

The recommended deficiency for the State Board of Elections increases the 2006-07 Special Revenue Other State Operations appropriation in the Regulation of Elections Program by $3,800,000.  This additional appropriation is necessary to fund  unanticipated costs associated with the certification of voting machines, which will be fully reimbursed by vendors.

DIVISION OF MILITARY AND NAVAL AFFAIRS

The recommended deficiency items for the Division of Military and Naval Affairs provide increases of:

• $255 million in 2006-07 Special Revenue Federal - Aid to Localities funding in the Disaster Assistance Program.  This appropriation is necessary to fund the Federal share of costs of weather-related disasters in SFY 2006-07.
• $85 million in 2006-07 General Fund - Aid to Localities funding in the Disaster Assistance program.  This appropriation is necessary to fund the State share of costs of weather-related disasters in SFY 2006-07.

Sections 2 and 3 amend the 2006-07 Education, Labor and Family Assistance Budget as follows:

CITY UNIVERSITY OF NEW YORK

The recommended deficiency items for the City University of New York provide increases of:

• $8.1 million in 2006-07 General Fund appropriation authority necessary to cover mandated collective bargaining costs for mid-year settlements of smaller negotiating unit agreements, including retroactive costs ($5.8 million), and to ensure sufficient funding to support the on-going cost of the CUNY tuition reimbursement program ($2.3 million).
• $23.5 million in 2006-07 Fiduciary Fund appropriation authority for senior colleges.  This increase to the gross operating budget is necessary to enable the agency to cover mandated collective bargaining costs ($6.5 million), on-going costs of the CUNY tuition reimbursement program ($3.1 million) and higher than anticipated energy costs ($13.9 million) in the 2005-06 fiscal year.

STATE EDUCATION DEPARTMENT

The recommended deficiency items for the State Education Department provide increases of: 

• $63.8 million in additional 2006-07 General Fund appropriations for School Aid.  This Federal Medicaid revenue offset-related deficiency results from projected shortfalls in school district claiming for School Supportive Health Services (SSHS).
• $1.8 million in additional 2006-07 General Fund appropriations for elementary, middle, secondary and continuing education, for allowances to private schools for the blind and deaf. This deficiency is necessary to provide sufficient appropriation authority to fund the schools’ approved inflationary adjustment.

STATE UNIVERSITY OF NEW YORK

The recommended deficiency for the State University of New York increases the 2006-07 General Fund appropriation by $11 million while reducing the 2006-07 Special Revenue Funds Other appropriation by the same amount.  The $11 million will provide sufficient appropriation authority to support fringe benefit costs associated with the summer session program, hospital contracts and Internal Service activities.

Section 4 amends the 2006-07 Transportation, Economic Development and Environmental Conservation Budget as follows:

DEPARTMENT OF ENVIRONMENTAL CONSERVATION

This recommended deficiency for the Department of Environmental Conservation increases the 2006-07 Environmental Protection and Oil Spill Compensation Fund appropriation in the Air and Water Quality Management Program by $10 million. This additional appropriation is necessary to fund the costs associated with unanticipated oil spill cleanups.

DIVISION OF LOTTERY

This recommended deficiency provides a Special Revenue-Other appropriation to the Division of Lottery for $23 million. This appropriation will enable the Division of Lottery to fund New York Racing Association operations through December 31, 2007. This bill also removes prior appropriations which have become null and void due to the NYRA bankruptcy.

TRIBAL-STATE COMPACT REVENUE

This recommended deficiency increases the Special Revenue-Other appropriation for Tribal-State Compact Revenue by $1.1 million. The increased appropriation authority is necessary because, pursuant to the Tribal-State Compact, 25 percent of revenues received by the State from Indian Casino gaming proceeds is to be returned to hosting localities. As revenues to the State from Indian Casino gaming have exceeded original estimates, existing appropriation authority to pay the locals’ share of these revenues is deficient for full payout. Increasing existing appropriation authority will allow the State to return to localities hosting Indian casinos their full share of the increased revenues.

Section 5 provides that the bill shall take effect immediately and be deemed to have been in full force and effect on and after April 1, 2006.

Existing Law: This is a new bill.

Statement in Support: Enactment of this deficiency appropriation bill is necessary to provide funding for liabilities occurring in the 2006-07 fiscal year for which no appropriations currently exist.

Budget Implications: The provisions of this bill are accommodated in the current Financial Plan for 2006-07.