Department of Transportation

The enacted budget makes the following changes to the proposed Executive Budget:

• Increased the All Funds appropriation by $12.50 million - this increase is due to the restoration of a $12.5 million SRO in the Operations program for the DOT –Accident Recovery Account ($11.23 million is for contractual services and $694,000 for personal services).  The All Funds appropriation is a $1.91 million, or 3.9% increase from the SFY 2009-10 enacted budget All Funds appropriation.
• No change in the funding for Capital Projects from the proposed Executive Budget.
• The Legislature rejects the proposal to consolidate the DOT Accident Damages account into the Dedicated Highway and Bridge Trust Fund (DHBTF), but accepts the Executive’s proposed savings of $750,000 in SFY 2010-11.
• Extends the DOT Single Audit Program for one year.
• Amends the proposal that would authorize DEC to issue a waiver that would allow State agencies and transit systems to defer for three years the requirement that State vehicles undergo diesel retrofits.  Approximately $36 million in savings would be achieved for regional transit systems, and $1.4 million would be saved by DOT.
• Adds language that would expand the powers of the existing Legislative Commission on Critical Transportation Choices that would authorize the Commission to examine, study, and make recommendations regarding the financing of transportation infrastructure projects.

The Senate makes the following changes to the Executives Budget proposal (analysis as of March 22, 2010):

• Modifies the Executive proposal by increasing the all funds appropriation by $1.6 billion.  Almost all of these funds are capital projects funds which have increase by $1.5 billion.

• Proposes increasing the DOT capital program by Proposes establishment of a commission to examine alternative revenue sources for the financing for both DOT and MTA capital infrastructure.

The Executive Budget recommends (analysis as of January 21, 2010):

A SFY 2010-11 workforce of 9,610.  This is a decrease of 91 FTEs (429 attritions and 338 new fills) from the adjusted FTE level for FY 2009-10.  It is important to note, that the adjusted FTE level for FY 2009-10 is a decrease of 224 FTEs. The following chart identifies adjustments in current fiscal years FTEs along with the recommended differences in FY 2010-11 FTEs by program (if the FTE’s are the same the program is not listed):

• The above FTE numbers include:  a decrease of 31 FTEs in Design and Construction due to loss of ARRA capital (federal stimulus) funds; a decrease of 100 positions for snow and ice control and preventative maintenance, partially offset by an increase of 54 positions associated with the DOT takeover of maintenance and operation of Interstate 84; 15 new positions to replace consultant contracts for information technology with annual savings estimated at $616,000 in 2010-11 and $573,000 in 2011-12 (last year’s budget also promised 15 new positions to replace consultant contracts, but it is not clear whether or not they were added, therefore clarification should be sought at L/M) and a decrease of 60 positions associated with the Department’s workforce reduction plan and lower staffing for non-health and safety functions.

• Estimates that a combination of personal service and non-personal service reductions and maximization of Federal transportation funding will achieve nearly $28.6 million in additional savings.  The Department will manage the reductions through a broad range of savings actions hat include strict limits on staffing, energy purchases, vehicles, supplies, equipment, contracts for technology and other services; the development of shared services; and other actions.

• Personal service funds decrease by $4.07 million, or -1.2%.

• Contractual service funds decrease of $31.94 million or -12.1%.

• An All Funds decrease of $10.59 million, (-21.9%).  Most of this decrease is due to the elimination of a $10.9 million SRO for the DOT Accident Damage Recovery Acct.   The Executive budget proposes to dedicate an additional $15.2 million in revenue to the Dedicated Highway and Bridge Trust Fund account to support this function.

•  The Capital Projects fund for the Engineering Services Program has a decrease of $297,000, or -1.5%.  The decrease is almost entirely attributed to a personal service reduction of $209,000, or -4%.

• The Capital Projects fund for Non-Federally Aided Highway has a decrease of $15.66 million, or -2.7% as follows:

o     Engineering Services Program – personal services decrease of $4.37 million, or -2.1%;

o     Capital Project Mgmt & Traffic Safety Program personal service decrease of $1.34 million, or -3.1%. 

o     This is partially offset by personal service increases in the following programs:  Management & Admin & Contract Services +$2.08 million, or 4.4%; and Real Estate Service +$147,000 or 1.1%. 

o     There is a $5.72 million increase in travel, or 617%,  and a $9.69 million, or 11.4% increase in fringe benefits in the Engineering Services Program.  Clarification regarding these increases should be sought at L/M.

o     Contractual Services decrease as follows:  Engineering Services Program a decrease of $4.8 million, or 75%; a Maintenance Undistributed decrease of $17.1million, or 9% in consultant services in: Preliminary Design (-$5.4 million) Construction Inspection (-$6.6 million), Bridge Inspection (-$1.6 million), and other Consultant Services (-$3.4 million).

• The Department employed an estimated 3,670 employees under consultant contracts in SFY 2009-10 at a cost of $199 million.  It is estimated that 3,254 consultants will be employed in SFY 2010-11 at an estimated cost of $214 million.  The estimated number of employees is not on an FTE basis so it is difficult to draw conclusions as to the cost per employee.

• Proposes the following Article VII legislation:

o    To extend the single audit program by one year for recipients of State transportation assistance (Part E). PEF opposed a similar proposal last year and a one-year extension was given to allow DOT to issue the required reports.  Failure to extend single audit program will result in the Department incurring approximately $300,000 in additional annual costs.

o    Part B – to consolidate the DOT Accident Damage Account with the DH&BT fund.  Anticipates $750,000 in recurring saving to accrue through consolidation activities and improving annual debt service coverage ratio.

o    Part C – to waive the installation of required emission reduction technology for vehicles that will be taken out of service within 3 years.  Anticipated savings of $1.4 million for DOT in 2010.