Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change



AGENCY SUMMARY
  General Fund               2,303,522,600 2,482,679,000  179,156,400    7.78%
  Total for AGENCY SUMMARY:  2,303,522,600 2,482,679,000  179,156,400    7.78%


STATE OPERATIONS
  General Fund               2,303,522,600 2,482,679,000  179,156,400    7.78%
  Total for STATE OPERATIONS:2,303,522,600 2,482,679,000  179,156,400    7.78%

General State Charges
  General Fund               2,303,522,600 2,482,679,000  179,156,400    7.78%
  Total for Program:         2,303,522,600 2,482,679,000  179,156,400    7.78%


                                                                    
                                                                    
      

                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 408-410)

The General State Charges budget provides General Fund support for two
types of centralized funding: fringe benefits for State employees and
fixed costs paid by the State for a variety of activities.  These are
costs that are incurred by all agencies and are calculated on a
government-wide basis.  Fringe benefits for state employees funded
through the General Fund appear in the General State Charges budget,
whereas fringe benefits for state employees supported through Special
Revenue Funds do not appear in this budget but instead, appear in
individual agency budgets.  The General State Charges budget is
included in the Public Protection and General Government appropriation
bill.

The Executive requests a total of $2,482,679,000 in General Fund
appropriations for State Fiscal Year (SFY) 2002-03.  This amount is
$179,156,400 more than the adjusted appropriation for SFY 2001-02 of
$2,303,522,600.  The adjusted appropriation includes a recommended
pension deficiency appropriation of $36,000,000

The Executive recommends an appropriation increase of $108,692,000 for
health insurance.  This reflects the average premium increase of 11
percent.

The Executive also recommends an appropriation increase of $57,879,000
for pensions.  The pension contribution rate is expected to increase
from .7 percent to 1.5 percent.

                          2001-02       2002-03
Fringe Benefits           Approp.       Request      Change %Change

Pensions                37,960,000   129,804,000 91,844,000   241.95
Health Insurance     1,164,954,000 1,254,416,000 89,462,000     7.68
Social Security        494,474,000   519,551,000 25,077,000     5.07
Workers Compensation   190,964,000   187,011,000 (3,953,000)   (2.07)
Accident Reporting System1,800,000       600,000 (1,200,000)  (66.67)
Employee Benefit Funds  46,012,000    36,466,000 (9,546,000)  (20.75)
Unemployment Insurance   8,311,000     9,761,000  1,450,000    17.45
Survivors' Benefits      9,159,000     8,261,000   (898,000)   (9.80)
Dental Insurance        46,828,000    49,169,000  2,341,000     5.00
Supplemental Benefits      250,000       250,000          0     0.00
Accidental Death Benefit   100,000       150,000     50,000    50.00
Tuition Reimbursement       20,000        20,000          0     0.00
Income Protection Plans  2,200,000     2,200,000          0     0.00
Vision Care Plan                 0    10,096,000 10,096,000      
100.00                            
Subtotal Fringe Benefits2,003,032,0002,207,755,000204,723,000  10.22

Fixed Costs

Taxes on Public Lands  112,940,000   120,102,000  7,162,000     6.34
Assessments              4,500,000     4,500,000          0     0.00
Section 19-A             4,625,200     5,047,000    421,800     9.12
Section 19-B               500,000       500,000          0     0.00
Putnam County Payment      600,000       600,000          0     0.00
Judgments Against State 75,000,000    80,000,000  5,000,000     6.67
Defense and Indemnification25,000,000 40,000,000 15,000,000    60.00
Reissued Checks          1,500,000     1,500,000          0     0.00
PLIS Settlement          5,500,000     5,600,000    100,000     1.82
Delaware Settlement     17,675,000    14,375,000 (3,300,000)  (18.67)
Auto Accident Claims     2,700,000     2,700,000          0     0.00
Subtotal Fixed Costs   250,540,200   274,924,000 24,383,800     9.73

TOTAL GSC            2,253,572,200 2,482,679,000229,106,800    10.17

Article VII Proposals

The Governor proposes Article VII language which provides a retirement
incentive.  The objective of this incentive is to achieve a targeted
and permanent reduction in the public sector workforce while avoiding
layoffs.  This goal is accomplished by providing State and local
governments including school districts with the ability to offer a
retirement incentive to employees in specific titles and work
locations that are determined to be less critical to governmental
operations.

The incentive will be offered to targeted employees employed by the
Executive Branch and the State University of New York (SUNY).  For
SUNY community colleges, the board of trustees determines whether to
offer the incentive, subject to the approval of the local sponsor, ie.
the county.  Employees of the City University of New York (CUNY) and
local governments may be offered the incentive if the locality elects
to participate in the program.  The Mayor of the City of New York may
declare employees of the community colleges of CUNY ineligible for the
program by filing a notice with the University Chancellor within 30
days of the effective date of incentive.

The incentive excludes employees of the Unified Court System, the
Senate, the Assembly, Joint Legislative employees, employees who
participate in a police and retirement system, and agency heads.

Eligible employees must either be currently eligible to retire or be
at least 50 years of age with ten or more years of service. The
retirement incentive benefit will be one-twelfth of a year of
additional retirement service credit for each year of pension service
credited as of the date of retirement, with a maximum of 3 years of
additional retirement service credit.  The incentive is subject to
reduction based on the employee's tier, age, and years of service.

Employees who participate in an optional retirement program will
receive a benefit of one-twelfth for each year of service multiplied
by 15 percent times the employee's annual salary up to a maximum
benefit incentive equal to 45 percent of salary.

Targeted State, SUNY, and CUNY positions which are vacated through
retirement, other than positions supported by Special Revenue Funds,
must be abolished.  An exception to this rule may be made where
another State employee can be appointed, transferred or reassigned to
the vacated position in order to avoid a layoff.

Employers, other than a State employer, are not required to eliminate
a position if they can demonstrate savings of at least one half of the
total amount of the base salary of employees who receive the incentive
for the 2-year period subsequent to the program.

Employers other than State employers must enact a local law or
resolution on or before August 30, 2002 in order to take advantage of
the program.  School districts must do so by July 26, 2002.