1. Campus Senior Staff Orientation Josh Sager, Associate Vice Chancellor for Finance and Business November 17 Albany, NY

2. Introductions

3. Atmospherics

4. New York State- Governor’s Office SenateAssembly Executive Agencies Numerous 1 Division of Budget Non-Executive Agencies Numerous 2 State Education Department University of the State of New York K-12 Private Higher Education For Profit Higher Education CUNY SUNY State University Construction Fund SUNY Research Foundation Board of Trustees 3 Chancellor State Operated Campuses Residence Halls Chief Academic Officers State University Business Officers Association University Faculty Senate Accounting, Budgeting & Bursars Group Teaching Hospitals Statutory Colleges Cornell Alfred- Ceramics Community College Trustees Community College Presidents University Faculty Council Community College Business Officers Association Chief Academic Officers Various Programs Charter Schools Institute Educational Opportunity Program Educational Opportunity Centers ATTAIN* Small Business Development Center *Advanced Technology Training and Information Networking University Councils Higher Education Services Corp. 1 Includes Department of Health, Office of Children & Family Services, Department of Labor, Department of Education, etc 2 Includes Senate, Assembly, Unified Court System, and Court of Appeals 3 Appointed by Governor with the advice and consent of Senate (18 members)

5. Important Point to Remember: SUNY is the largest comprehensive system of public higher education in the nation However: –It is just ONE of over a hundred State agencies –Annual budget requests are evaluated in competition with all other State entities –All requests are judged against… 5

6. State Revenue and Spending Plans Includes both Operating and Capital Plans Reflect spending and revenue for a five-year period under the enacted budget Enacted Budget Financial Plans Comprised of Operating Plan only Rarely changes from Enacted 1 st Quarter Update Last update before “Budget Season” Includes major revisions due to: Enrollment in entitlement programs Greater or lower revenue or spending Unexpected events Mid-Year Update Last Update of the year Includes results of initial revenue forecast Executive Budget Update April July Oct. / Nov. Jan./ Feb 6

7. Revenue / Spending Plans Impacted By… 7

8. Politics: A Venn Diagram Depiction of Dealing with Politics 8

9. 2015/16 SUNY Operating Budget Request: Budget Timeline Budget Call Letter Released 10/1/2014 Flat Year-to-Year Cash Spending Executive Budget Third Tuesday of January February 1 st in Election Year Budget Hearings Month of February Allows Agencies to speak to Executive Budget Legislative Negotiations Each functional area given a “target” Value of target drives amount of negotiating or further actions Enacted Budget April If not passed, State functions under “Emergency Appropriations” 9

10. 2015/16 NYS Budget Atmospherics Two Percent Spending Growth Entire State Statutory Spending Increases - School Aid - Medicaid - NY-SUNY 2020 2014/15 Surplus Unexpected legal settlements 10

11. NYS Goal: Two Percent Spending Growth Subject to Two Percent Cap or Not State Operating Funds Non-State Operating Funds State-operated Campus Direct State Tax supportX Statutory Campus Direct State Tax SupportX State-operated Tuition revenueX State-operated Campus fee revenueX Hospital RevenueX Community College Base Operating AidX Statutory Campus Tuition and Fee revenueX Community College Tuition and Fee RevenueX Federal Funds (Pell, Perkins, etc)X Capital ExpendituresX1X1 11 1. Some limited capital expenditure is considered State-operating funds (Parks, Transportation, Mental Hygiene)

12. NYS Goal: 2 Percent State-Operating Spending Growth Selected Comparisons ($ M) 12 To facilitate these increases, State expects annual “restrictions” on spending of $2.1B in 15/16, $3.6B in 16/17, and $5.5B in 17/18

13. Spending Increases under State Financial Plan: SUNY Operations ($ M) - Self-Generated category includes tuition, fees, and hospital operations. - Excludes fringe benefits 13

14. 2014/15 NYS Budget Surplus State is currently planning to finish 2014/15 with a “surplus” of $4.8B This revenue is the result of a series of favorable settlements with several companies such as BNP Paribas, Credit Suisse AG, and Metropolitan Life Insurance Surplus is one time only and not usable for ongoing costs (salary, etc) much like SUNY reserves Funds will be held in an undesignated balance in the State General Fund and options include: One-time capital expenses Bolstering reserves Reducing debt 14

15. Role of System Administration

16. Role of System Administration: Governance 16 SUNY Board of Trustees System Administration Outside Entities 29 State-operated Campuses 30 Community Colleges and Community College Trustees 5 Statutory Colleges 3 Teaching Hospitals State Education Department Division of Budget Office of State Controller Department of Health Academic / Financial/ Other Overall Guidance and Direction of the System 39 University-wide Programs Economic Development 26 Campus Residence Hall Programs Various Institutional Entities: CCBOA SUBOA NYCAP ACT Governor’s Office Legislature DASNY

17. SUNY Appropriated and Non-State Funds ($12.4B) State Appropriated, State Held State Appropriated, Not State Held Non-State Funds State-operated ($3.6B) Statutory Colleges ($0.6B) Community Colleges ($1.7B) Hospitals ($2.7B) Core Operations ($2.5B) - State-operated Tuition ($1.4B) - Pooled Offset ($0.1B) - State Tax Transfers ($1.0B) Self-Supported Programs ($1.1B) SUTRA - Overflow Tuition - Overseas Programs - Contract Courses - Summer session General IFR - Student Fees Stabilization ($-) - Carryover funding Dormitory Operations ($0.4B) - Room rents and fees Statutory Tuition ($0.5B) State Tax Support ($0.5B) Local Sponsor Support ($0.4B) Student Tuition ($0.8B) Patient Revenue State/SUNY Subsidy DSH/Other funds Other Items ($3.8B): Debt Service: State pays State-operated + Stats ($0.7B) State pays Hospital (and is repaid) ($51M) State pays 1/2 Community Colleges ($87M) Fringe Benefits: State pays State-operated directly ($1.1B) Community Colleges, Hospitals self pay Sponsored Activity in RF ($0.9B) Foundations / ASC’s ($1.0B) $0.7B Combined 17 Role of System Administration: Fiscal State Tax Support Included in Core Operations ($0.1B)

18. Role of System Administration: Budgets Implement Enacted Budget Actions Interact and Advocate During Budget Process Division of BudgetGovernor’s OfficeSenateAssembly Coordinate Budget Requests for Board of Trustees Approval State-operated Campuses Statutory CollegesTeaching Hospitals Community Colleges Programs

19. Budget Office Organization: Campus Assignments SectorKerry BrousseauDan EspositoTim LeverJoe RyanDrew Wallsh U- CentersStony BrookU. BuffaloBinghamton-U. Albany Small Docs-- Downstate Upstate OptometryESF Comprehensives Cortland Oneonta Potsdam Brockport Old Westbury Empire State Oswego Purchase Fredonia New Paltz Buffalo State Geneseo Plattsburgh TechnologySUNY Polytechnic Delhi Cobleskill Morrisville MaritimeFarmingdale Alfred Canton Statutory Colleges CeramicsCornell--- Other U-Wide Programs Self-Generated Funds DIFR Res Halls Fees Recharges / Assessments Workforce Form 1 Lead Lawsuits Reporting Revenue Cash Balances Hospitals Form 1 Lead 19

20. State-operated Campus Budgets

21. State-operated Campus Budget Cycle Enacted State Budget June Board Meeting Financial Plan Released Budget Documents Submitted and Reviewed Allocation Provided and Monitored Prepare Budget Request

22. Sources of Funding Core Operations Direct State Tax Support Pooled Offset Tuition Revenue Self-Generated Revenue FeesMisc. Other Dormitory Operations OperationsCapital Indirect Support Fringe Benefits Internal Services

23. Core Operations Funding History ($M) 23 NY-SUNY 2020* * Ends in 15/16 $1,970.6 $1,957.5 $2,111.4$2,215.1$2,338.7

24. Important Points to Remember: Core Operations State Tax support provided five times a year Pooled Offset distributed through the year Tuition target must be hit Self-Generated Revenue Controlled by appropriation DOB holds back appropriation System Administration monitors and manages available authority Indirect Support Handled centrally by the State

25. Questions?