Summary of Governor Cuomo's 2013-14 Executive Budget -
Higher Education & Economic Development
Governor Andrew M. Cuomo released his 2013-2014 Executive Budget proposal today, which totals $136.4 billion - an increase of 1.9 percent over the enacted budget for 2012-2013.
New York State’s government faces a projected deficit of $1.35 billion, exacerbated by costs borne by the State in responding to Hurricane Sandy that may not be covered by federal aid approved by Congress.
Governor Cuomo’s budget proposal would increase education spending by 4.4 percent over the 2012-2013 state budget; Medicaid spending would likewise grow by 6.7 percent. The 2013-2104 Executive Budget aims for $434 million in savings in agency operations, $412 million in reductions in local assistance and $128 million in debt management actions. The Executive Budget also aims to reduce anticipated budget deficits over the next three fiscal years.
State University of New York (SUNY): Operating Aid
State-Operated Colleges: The proposed budget includes $969 million in operating aid, the same level as SFY 12-13. In addition, the proposed budget allows the agreed upon multi-year tuition increase to move forward. The increase will result in $106 million in additional funding for SUNY.
SUNY Hospital Subsidy Payment: The proposed budget includes $60 million in support for SUNY Hospitals, a decrease of $28 million from last year.
Operation of the Long Island Veterans’ Home: The proposed budget includes $44,100,000 for the Long Island Veterans’ Home.
SUNY Capital: The proposed budget includes capital funding for the following projects:
• $25 million for a third round of NY-SUNY2020 grants. Projects will be selected on a competitive manner based on economic impact, advancement of academic goals, innovation and collaboration;
• $50 million for alterations and rehabilitation of SUNY residence halls;
• $30 million for the Stony Brook Health Science Center Campus, including improvements to the Campus Electrical Distribution system;
• $88 million for SUNY Albany for the design and construction of an emerging technology and entrepreneurial complex, as identified and approved as part of the NY-SUNY2020;
• $38.5 million for general maintenance of community colleges; and
• $25 million for the SUNY construction fund for project administration.
New Financing Structure for the SUNY Residence Hall Program
The proposed budget includes a new financing structure for residence halls whereby the Dormitory Authority of NYS would continue to finance the construction, operation and maintenance costs of new and existing dormitories at SUNY. The debt service costs, however, would be satisfied through a new fund held by the Commissioner of the Department of Taxation and Finance without State appropriation.
Under the new structure, revenues collected from the rental of dormitory facilities would be deposited in the newly created fund and would be held outside of State Treasury. Debt service obligations from existing bonds, as well as new bonds issued under the program, would be satisfied by revenue collected by the fund. Revenues remaining in the fund after all obligations have been met would be transferred to the State Comptroller and would become the property of SUNY to use for operating and capital costs. The restructuring will provide SUNY with the necessary resources to manage their residence halls without adding any new capital spending to the State’s financial plan.
Next Generation College Linkage Program – Funding for Community Colleges
The proposed budget would change the community college funding structure. The changes will serve to refocus college workforce and vocational programs on training today’s students to succeed in a high skills economy. Under the current funding structure, community colleges will receive aid for every student they enroll based on certain criteria.
Higher Education Programs Administered by SED:
Higher Education Opportunity Programs: The proposed budget includes $24.2 million for these programs. This is an increase of $3.4 million from SFY 12-13.
Science and Technology Entry Program (STEP): The proposed budget includes $10.8 million for this program. This is level funding from SFY 12-13.
Collegiate Science and Technology Entry Program (CSTEP): The proposed budget includes $8.2 million for this program. This is level funding from SFY 12-13.
Liberty Partnerships: The proposed budget includes $12.5 million for this program. This is level funding from SFY 12-13.
Teacher Opportunity Corps Program Awards: The proposed budget includes $450,000 for this program. This represents level funding from SFY 12-13.
BUNDY Aid: The proposed budget includes $35 million for this program. This represents level funding from SFY 12-13.
High Needs Nursing at Independent Colleges: The proposed budget includes $941,000. This represents level funding from SFY 12-13.
National Board for Professional Teaching Standards: The proposed budget includes $368,000 for this program. This represents level funding from SFY 12-13.
Strategic Partnership for Industrial Resurgence: The proposed budget includes $1.7 million for this program.
NYS Higher Education Capital Matching Grant Program
The Capitol Matching Grant Program was created in 2006 and allocated $150 million to support capital projects at the State’s various independent colleges. The program is set to expire on March 31, 2013. To date, 151 projects totaling $142.3 million has been allocated. The proposed budget would extend HECap program for one year and amend the current reallocation process so that the remaining $7.7 million in funds will be provided on a competitive basis. The Dormitory Authority will be responsible for issuing a request for proposals.
Empire Innovation Program: The proposed budget includes $9.4 million in support for this program. This represents level funding from SFY 12-13.
Educational Opportunity Centers: The proposed budget includes $21 million in support for this program. This represents level funding from SFY 12-13.
Expand Capacity in Campus Programs with Economic Development and Public Health Need: The proposed budget includes $3.1 million for this program.
High Need Nursing Programs: The proposed budget includes $1.66 million for this program.
Sea Grant Institute: The proposed budget includes $411,800. This represents level funding from SFY 12-13.
New York Cord Blood Center: The proposed budget includes $205,600 for this program.
Tuition Assistance Program (TAP)
The proposed budget includes $950,415,000 in funding for the TAP program. The proposed budget does not contain any structural changes to the program. Therefore, as proposed, TAP grants will continue “as is”.
Other HESC Programs
Other HESC Administered Scholarships: The proposed budget includes $42.3 million (an, decrease of $1.6 million from SFY 12-13), for the NYS Math and Science Teaching Initiative Scholarships, Veteran’s Tuition Assistance Program, Military Enhanced Recognition, Incentive and Tribute (MERIT) Scholarships, World Trade Center Scholarships, Memorial Scholarships for Children and Spouses of Deceased Firefighters, Volunteer Firefighters and Police Officers Scholarships, and the American Airlines Flight 587 Memorial Scholarships, Scholarships for Academic Excellence, Regents Health Care Opportunity Scholarships, Regents Physician Loan Forgiveness Awards, Continental Airlines Flight 3407 Memorial Scholarships.
Patricia K. McGee Nursing Faculty Scholarship and Loan Forgiveness Program: The proposed budget maintains funding at $3.9 million for this program.
Regents Licensed Social Worker Loan Forgiveness Program: The proposed budget maintains funding at $978,000 for this program.
College Access Challenge Grant: The proposed budget includes $1million for this program. This is federal funding NYS receives as part of its multi-year College Access Challenge Grant Award.
Department of Economic Development/ (NYSTAR)
Innovation Hot Spots: The budget proposes $1.25 million initiative to “create or designate ten high-tech innovation incubators at locations affiliated with higher education institutions to encourage private-sector growth. The incubators will help foster innovation and commercialization by offering inventors and entrepreneurs a low-cost, collaborative environment within which to work, and access to essential shared business services.”
This program will work closely with the Regional Economic Development Councils (REDCs), as each REDC will designate an existing or newly created incubator for their region. Five winners will be designated in each of the next two years to receive benefits and support.
Designated Innovation Hot Spots will become tax-free zones where start-ups and other businesses tied to the incubator will be exempt from business and sales taxes for a five-year period.
The initial $1.25 million will grow to $5 million as the program is fully actualized.
NYS Innovation Venture Capital Fund: The proposed budget includes a new $50 million venture capital fund in his budget, which will “provide critical seed and early-stage funding to incentivize new business formation and growth in New York State and facilitate the transition from ideas and research to marketable products.”
The Fund will be administered through Empire State Development (ESD) and program funding will be sourced from the New York Power Authority and funds redirected from underutilized investment programs administered by ESD.
Innovation NY Network: According to the Governor, this program will “build collaboration among academics, venture capitalists, business leaders, patent lawyers and other professionals.” The organization will be established on a university-based, not-for profit foundation model, and will not require taxpayer support.
New York Works Economic Development Fund Program: The proposed budget includes $165 million to provide capital grants that support job creation and retention and fund capital investments that facilitate business expansion and the attraction of new businesses.
New York Works Task Force: The proposed budget includes $165 million for capital grants that support job creation and retention and fund capital investments that facilitate business expansion and the attraction of new business.
Regional Economic Development Council Awards: The 2013-14 proposed budget includes core capital and tax-credit funding that will be combined with a wide range of existing agency programs for a third round of REDC awards. The core funding remains the same as the enacted SFY 12-13 budget and includes:
• $150 million in new capital funding and
• $70 million in tax credits from the Excelsior Jobs tax credit program to fund regional priority projects.
Buffalo Regional Innovation Cluster: The proposed budget provides an additional $100 million in funding as part of the Governor’s agreed to ten year $1 billion commitment to Buffalo. This includes $75 million in new capital funding and $25 million in tax credits.
Hinman Straub P.C. Date: January 22, 2013 Page 6
The budget also includes over $60 million in state funding to support the recently agreed multi-year agreement to keep the Buffalo Bills in Western New York. This includes a $54 million contribution towards the $130 million in capital improvements to the Ralph Wilson Stadium.
Centers of Excellence
The proposed budget includes $5.234 million, level funding from SFY 12-13, for services and expenses related to the operation of the centers of excellence.
o $872,333 - Buffalo Centers of Excellence in Bioinformatics and Life Sciences and Materials
o $872,333 - Greater Rochester Center of Excellence in Photonics and Microsystems
o $872,333 - Syracuse Center of Excellence in Environmental and Energy Systems
o $872,333 - Albany Center of Excellence in Nanoelectronics
o $872,333 - Stony Brook Centers of Excellence in Wireless and Information Technology and Advanced Energy Research
o $872,333 - Binghamton Center of Excellence in Small Scale Systems Integration and Packaging
Centers for Advanced Technology: The proposed budget includes $13.8 million for the centers for advanced technology. Funding is maintained at SFY 12-13 levels.
High Technology Matching Grants: The proposed budget includes $4.6 million for the high technology matching grants program. Funding is maintained at SFY 12-13 levels.
Empire State Economic Development Fund: The proposed budget includes $31.2 million for this program, an increase of $11.2 million over SFY 12-13.