|2002 Yellow Book|
|Backward Forward Cover Overview Table of Contents|
Adjusted Executive Appropriation Request Percent 2001-02 2002-03 Change Change DEBT SERVICE Fiduciary 40,000,000 40,000,000 0 0.00% Debt Service Fund 4,739,950,000 3,916,175,000 (823,775,000) -17.38% Internal Service Fund 210,000,000 110,000,000 (100,000,000) -47.62% Capital Projects Fund - Other 525,000,000 625,000,000 100,000,000 19.05% Total for DEBT SERVICE: 5,514,950,000 4,691,175,000 (823,775,000) -14.94% Total Contingency: 240,000,000 1,331,000,000 1,091,000,000 454.58% Total for Bill: 5,754,950,000 6,022,175,000 267,225,000 4.64% Fiduciary School Capital Facilities Financing Reserve Fund Principal and Interest on Serial Bonds 40,000,000 40,000,000 0 0.00% Debt Service Fund Debt Reduction Reserve Fund Debt Reduction 500,000,000 0 (500,000,000) -100.00% Mental Health Services Fund Financing Agreements 355,000,000 370,000,000 15,000,000 4.23% General Debt Service Fund Principal and Interest on Serial Bonds 715,000,000 580,000,000 (135,000,000) -18.88% Financing Agreements 2,457,600,000 2,444,650,000 (12,950,000) -0.53% Lease Purchase Payments 62,100,000 61,525,000 (575,000) -0.93% Housing Debt Fund Principal and Interest on Serial Bonds 29,000,000 28,000,000 (1,000,000) -3.45% Health Income Fund Financing Agreements 37,250,000 35,000,000 (2,250,000) -6.04% Financing Agreements 2,000,000 2,000,000 0 0.00% Emergency Highway Reconditioning and Preservation Fund Financing Agreements 32,000,000 0 (32,000,000) -100.00% State University Dormitory Income Fund Financing Agreements 55,000,000 70,000,000 15,000,000 27.27% Emergency Highway Construction and Reconstruction Fund Financing Agreements 32,000,000 0 (32,000,000) -100.00% Local Government Assistance Tax Fund Financing Agreements 463,000,000 325,000,000 (138,000,000) -29.81% Internal Service Fund Centralized Services Fund Financing Agreements 210,000,000 110,000,000 (100,000,000) -47.62% Capital Projects Fund - Other Dedicated Highway and Bridge Trust Fund Financing Agreements 525,000,000 625,000,000 100,000,000 19.05% BUDGET HIGHLIGHTS (Executive Budget: pp. 425-429) The Executive recommends total Debt Service Budget appropriations of $6,022,175,000 for State Fiscal Year (SFY) 2002-03, a net increase of $267,225,000 over SFY 2001- 02. This increase is primarily attributed to an increase in the All Funds Contingency with a new appropriation of $1,086,000,000 which the Executive plans to use to satisfy the maximum debt service requirement on all short term and outstanding variable rate debt. The Executive submits a separate appropriation bill for debt service. The appropriations reflect the maximum required debt service payments for the State Fiscal Year, which could be significantly higher than the actual cash amount necessary in specific instances. This is most common for the variable rate debt and other short term debt instruments issued by the Local Government Assistance Corporation (LGAC), the Housing Finance Agency, the Urban Development Corporation, the Dormitory Authority and the State's General Obligation bonds, which reflect a maximum annual rate of 18 percent. As a result of the Debt Restructuring legislation adopted during SFY 2001-02 which established a Revenue Bond Financing Program, the Executive's $3.1 billion proposed new bonding in the SFY 2002-03 Executive Budget will be supported by a pledge of 25 percent of the State Personal Income Tax Receipts or at least $6 billion. This Debt Restructuring will reduce the cost of borrowing by improving the marketability and the creditworthiness of State supported obligations and by permitting the consolidation of multiple bonding programs. Contingency The Executive recommends a total contingency appropriation of $1,331,000,000 for debt service, an increase of $1,091,000,000 over SFY 2001-02. This total includes a $20,000,000 contingency appropriation for the State's potential liability to rebate arbitrage earnings on its General Obligation bonds to the Federal government, an increase of $5,000,000 primarily due to an increase in debt service requirements for the general obligation notes. It also includes a contingency appropriation of $225,000,000 for redemption of General Obligation serial bonds should this become necessary to maintain the federal tax status of the bonds. The Executive proposed a new approprition of $1,186,000,000 to satisfy the maximum debt service requirement on all short term and outstanding variable rate debt. The Executive does not anticipate that disbursements will be necessary against these contingent appropriations. Internal Service Funds The Executive recommends a total appropriation of $110,000,000 for the Centralized Services Funds, a decrease of $100,000,000 compared to SFY 2001-02 for payments of the State's Certificates of Participation (COPs). This appropriation also includes debt service payments on planned COPs for equipment to implement the new Welfare Reform Computer Systems. General Debt Service Fund The Executive recommends total appropriations of $3,916,175,000 for the General Debt Service Fund, a net decrease of $823,775,000 over SFY 2001-02. Primarily, this decrease is a result of the following: -- A $135,000,000 reduction in General Debt Service Fund; -- A $138,000,000 reduction in the Local Government Assistance Tax Fund. These savings are derived from a decrease in the maximum appropriation for the Local Government Assistance Corporation short term debt instruments. -- A $32,000,000 reduction in the Thruway Authority Local Highway Improvement Program for local highway Construction and Reconstruction. Included in the General Debt Service Fund is a $580,000,000 appropriation for debt service for the State's general obligation bonds. This represents a decrease of $135,000,000 from SFY 2001-02. Capital Projects Fund The Executive recommends an appropriation of $625,000,000 in the Capital Projects Fund. The entire amount of this appropriation will be set aside in the Dedicated Highway and Bridge Trust Fund, reflecting an increase of $100,000,000 over SFY 2001- 2002. This increase reflects the Executive's proposed capital program for transportation. Disbursements from the fund are used to make payments to the Thruway Authority for debt service on its Dedicated Highway and Bridge Trust Fund bonds. Fiduciary Fund The Executive recommends an appropriation of $40,000,000 in the School Capital Facilities Financing Reserve Fund, which is funded at the same level as in SFY 2001- 02. These funds are used to pay debt service on bonds issued by the Dormitory Authority on behalf of certain Special Act School Districts, pursuant to legislation enacted in 1988. Debt Reform The Executive Budget proposes a Constitutional Debt Reform package following the enactment of the Debt Reform Act of 2000. This Debt Reform Plan would do the following: -- Constitutionally mandate the State supported debt outstanding and debt service cap now imposed by the Debt Reform Act of 2000; -- Eliminate all State supported public authority debt; -- Authorize a limited amount of revenue backed debt; -- Require that at least one-half of the debt be approved by the voters; -- Authorize a multiple general obligation (G.O.) bonds act proposal; The Executive further proposes two new statutory initiatives which would: -- Authorize all Public Authority issues of State supported debt to issue variable rate debt in aggregate principal amount of up to 15 percent of their outstanding State debt, and allow them to enter into interest rate exchange agreements (SWAPS); -- Exempt refunding of State supported debt from PACB (Public Authorities Control Board) approval.
New York State Assembly