Meeting of the Board of Regents | February 2009

Sunday, February 1, 2009 - 11:00pm

sed seal

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

TO:	The Honorable the Members of the Board of Regents
FROM:	Theresa E. Savo
SUBJECT:	State Education Department January 2009 Fiscal Report
DATE:	February 3, 2009
STRATEGIC GOAL:	Goal 5
AUTHORIZATION(S):

SUMMARY

Issue for Discussion

The January 2009 Fiscal Report is presented for review, discussion and acceptance.

January begins the final quarter of the 2008-2009 fiscal year. We have revisited our expenditure and revenue projections to determine what adjustments are necessary as we approach the end of the State fiscal year. A Variance Report summarizing these adjustments is attached.

The essential work of the Department is continuing under the Department’s strong spending controls and the provisions of the Division of the Budget Bulletins B-1178 dated April 21, 2008 and B-1184 dated November 4, 2008. However, the Budget Bulletin B-1184 provisions requiring Division of the Budget and Office of the Director of State Operations prior approval of certain contract and procurement activities continues to appreciably slow the work of the Department.

Reason(s) for Consideration

Update on Department State Operations expenditure and revenue projections.

Proposed Handling

Review, discussion and acceptance.

Procedural History

The January report reflects actual expenditures through the first ten months of the 2008-2009 State fiscal year and projected expenditures through the lapse period ending June 30, 2009.

Background Information

All Funds - Spending controls have been tightened to reflect the 3.35 percent reduction included in the Department’s Financial Management Plan for 2008-2009 and the additional 7 percent mid-year spending reduction.
General Fund – All of our general fund accounts are in structural balance with the exception of the Tenured Teacher Hearing account.
Special Revenue – Our revenue accounts are in structural balance (allowing for normal reimbursement delays and the planned use of prior year balances) with the exception of the Cultural Education Account due to declining revenues and increased reliance on the account by other State agencies. After expending prior year funds, the Archives Partnership Trust (APT) will use sufficient revenue from the APT endowment, pursuant to Chapter 399 of the Laws of 1998, to maintain structural balance.
Federal Accounts – Our federal accounts are in structural balance.

Our Budget Coordination staff and I will continue to closely monitor each of these accounts and work with program office fiscal staff and the Deputies to ensure structural balance.

Recommendation

I recommend that the Board of Regents accept the January 2009 State Education Department Fiscal Report as presented.