Higher
Education Services Corporation
The enacted budget makes the following changes to the Executive Budget (June 30, 2010):
Rejects the proposal to increase academic standards for non-remedial Tuition Assistance Program recipients which was expected to save $8.4 million in 2010-11.
Rejects the proposal to eliminate TAP for Graduate Study which was expected to save $3 million in 2010-11.
Rejects the proposal to reduce Tuition Assistance Program awards by $75.00, which was expected to save $23.6 million in 2010-11.
Makes no changes to the corporations’ All Funds appropriation of $120,876,800, a (-$40,344,000) reduction, or (-25%) from the SFY 2009-10 enacted appropriation.
The Assembly Budget resolution proposes the transfer of powers of HESC to SED. (PART OO) (analysis as of March 25, 2010)
The Senate Budget resolution proposes to eliminate funding for the New York Higher Education Loan Program (NYHELPs), purportedly saving $34.6 million.
It also denies the Executive Article VII proposals to
The Executive Budget recommends (an
|
Program |
FY 2008-09 Adjustment |
FY 2010-11 Est. FTEs
3/31/11 |
FY 2010-11
Difference from Adjusted 2009-10 |
|
Administration – SRF -- Other |
(-20) |
292 |
0 |
|
Guaranteed Loan Programs – SRF - Other |
(-32) |
338 |
0 |
|
Total |
(-52) |
630 |
0 |
· An All Funds appropriation of $120.9 million, a $40.3 million decrease from the enacted SFY2009-10 appropriation. $40 million of this cut is in the maintenance undistributed appropriation for the NYS Higher Education Loan program account.
·
A Personal Services appropriation of $38.1
million, a $1.6 million (-13.2%) decrease from the enacted
· The NYS Higher Education Loan program is a partnership between the State, private lenders and higher education institutions that makes available an estimated $350 million annually in student loans with interest rates well below those of conventional private bank offerings. The Corporation finances and administers the program in tandem with the State of New York Mortgage Agency (SONYMA). It is expected that SONYMA will issue $350 million in tax-free bonds in 2010-11 to finance new fixed rate loans of up to $10,000 per borrower. In addition to the allocation of Private Activity Bond Volume Cap to authorize the issuance of the SONYMA tax-exempt bonds, in 2010-11, the State will make available $10 million to support a guarantee fund that will enable favorable borrower interest rates and fees. Last year’s enacted budget appropriation $50 million for this purpose
· HESC is expected to decrease the number of consultants it has by 4, dropping from 54 to 50, and cutting its estimated disbursements for consulting services from $5.2 million to $4.1 million, according to the Agency Presentation, Consulting Service Contracts, pg. 522.
· The agency is asking for $37.4 million for contractual services, or $7.1 million (-16%) less than the $44.5 million approved in the enacted 2009-10 budget.
· Budget recommendations that require Title VII legislation include:
· Increase academic standards for non-remedial Tuition Assistance Program recipients. This is expected to save $8.4 million in 2010-11.
· Eliminate TAP for Graduate Study, providing savings of $3 million in 2010-11.
· Students in default on statutory New York State or Federal loans would be ineligible for TAP awards, saving $4.1 million in 2010-2011.
· Place financially independent students under age 22 and married students with no children on new TAP award schedules, saving $1.9 million.
· Reduce the maximum TAP award for students matriculated in certain two-year degree programs to $4,000 from $5,000, saving $28 million.
· Reduce Tuition Assistance Program awards by $75.00, saving $23.6 million.
· Include all private pension and annuity income in Tuition Assistance Program eligibility determinations, saving $2 million.
Provide Tuition Assistance Program awards to students attending certain religious institutions not under the State Education Department's direct supervision. This would cost $18.3 million for each academic year.| Higher Education Services Corporation | |||||
| Program Details-State Operations | |||||
| Enacted | Proposed | Enacted | Change in | Percent | |
| Program | 2009-10 Budget | 2010-11 Budget | 2010-11 Budget | Appropriation | Change |
| All Funds | $161,220,800 | $120,876,800 | $120,876,800 | ($40,344,000) | -25.0% |
| General Fund | $50,000,000 | $10,000,000 | $10,000,000 | ($40,000,000) | -80.0% |
| Special Revenue-Federal | $5,000,000 | $10,000,000 | $10,000,000 | $5,000,000 | 100.0% |
| Special Revenue-Other | $106,220,800 | $100,876,800 | $100,876,800 | ($5,344,000) | -5.0% |
| Personal Services | $43,926,100 | $38,137,100 | $38,137,100 | ($5,789,000) | -13.2% |
| Contractual Services | $44,501,000 | $37,397,000 | $37,397,000 | ($7,104,000) | -16.0% |
| Administration | $50,569,000 | $48,998,000 | $48,998,000 | ($1,571,000) | -3.1% |
| Personal Service | $2,605,000 | $0 | $0 | ($2,605,000) | 100.0% |
| Regular | $2,605,000 | $0 | $0 | ($2,605,000) | 100.0% |
| Nonpersonal Service | $3,129,000 | $0 | $0 | ($3,129,000) | 100.0% |
| Supplies and materials | $1,565,000 | $0 | $0 | ($1,565,000) | 100.0% |
| Equipment | $1,564,000 | $0 | $0 | ($1,564,000) | 100.0% |
| Miscellaneous special revenue fund | ($5,734,000) | $0 | $0 | $5,734,000 | 100.0% |
| Special Revenue-Other (SRO) | $50,569,000 | $48,998,000 | $48,998,000 | ($1,571,000) | -3.1% |
| HESC-Insurance Premium Payments Acct - (SRO) | $50,569,000 | $48,998,000 | $48,998,000 | ($1,571,000) | -3.1% |
| Personal Service | $15,502,000 | $15,843,000 | $15,843,000 | $341,000 | 2.2% |
| Regular | $15,293,000 | $15,629,000 | $15,629,000 | $336,000 | 2.2% |
| Holiday/overtime compensation | $209,000 | $214,000 | $214,000 | $5,000 | 2.4% |
| Nonpersonal Services | $35,067,000 | $33,155,000 | $33,155,000 | ($1,912,000) | -5.5% |
| Supplies and materials | $518,000 | $453,000 | $453,000 | ($65,000) | -12.5% |
| Travel | $203,000 | $177,000 | $177,000 | ($26,000) | -12.8% |
| Contractual Services | $16,645,000 | $13,964,000 | $13,964,000 | ($2,681,000) | -16.1% |
| Equipment | $800,000 | $700,000 | $700,000 | ($100,000) | -12.5% |
| Fringe benefits | $15,425,000 | $16,692,000 | $16,692,000 | $1,267,000 | 8.2% |
| Indirect costs | $1,476,000 | $1,169,000 | $1,169,000 | ($307,000) | -20.8% |
| Division of Grants & Scholarship Program | $0 | $0 | $0 | ||
| Personal Service | $3,995,000 | $0 | $0 | ($3,995,000) | 100.0% |
| Regular | $3,995,000 | $0 | $0 | ($3,995,000) | 100.0% |
| Nonpersonal Service | $771,000 | $0 | $0 | ($771,000) | 100.0% |
| Supplies and materials | $386,000 | $0 | $0 | ($386,000) | 100.0% |
| Equipment | $385,000 | $0 | $0 | ($385,000) | 100.0% |
| Miscellaneous special revenue fund | ($4,766,000) | $0 | $0 | $4,766,000 | 100.0% |
| Division of Guaranteed Loan Program | $54,822,000 | $50,799,000 | $50,799,000 | ($4,023,000) | -7.3% |
| Special Revenue-Other (SRF) | $5,000,000 | $5,000,000 | $5,000,000 | $0 | 0.0% |
| Special Revenue-Other (SRO) | $49,822,000 | $45,799,000 | $45,799,000 | ($4,023,000) | -8.1% |
| Federal GEAR-UP Acct - (SRF) | $5,000,000 | $5,000,000 | $5,000,000 | $0 | 0.0% |
| HESC-Insurance Premium Payments Acct - (SRO) | $49,822,000 | $45,799,000 | $45,799,000 | ($4,023,000) | -8.1% |
| Personal Service | $21,408,000 | $21,878,000 | $21,878,000 | $470,000 | 2.2% |
| Regular | $20,631,000 | $21,084,000 | $21,084,000 | $453,000 | 2.2% |
| Holiday/overtime compensation | $777,000 | $794,000 | $794,000 | $17,000 | 2.2% |
| Nonpersonal Service | $28,414,000 | $23,921,000 | $23,921,000 | ($4,493,000) | -15.8% |
| Supplies and materials | $72,000 | $63,000 | $63,000 | ($9,000) | -12.5% |
| Travel | $244,000 | $213,000 | $213,000 | ($31,000) | -12.7% |
| Contractual Services | $27,856,000 | $23,433,000 | $23,433,000 | ($4,423,000) | -15.9% |
| Equipment | $242,000 | $212,000 | $212,000 | ($30,000) | -12.4% |
| Student Grant and Award Programs | $0 | $5,000,000 | $5,000,000 | 0.0% | |
| Special Revenue-Other (SRF) | $0 | $5,000,000 | $5,000,000 | 0.0% | |
| HESC-College Access Challenge Grant Acct - (SRF) | $0 | $5,000,000 | $5,000,000 | 0.0% | |
| NYS Higher Education Loan Program | $55,000,000 | $15,000,000 | $15,000,000 | ($40,000,000) | -72.7% |
| Maintenance Undistributed | $50,000,000 | $10,000,000 | $10,000,000 | ($40,000,000) | -80.0% |
| Special Revenue-Other (SRO) | $5,000,000 | $5,000,000 | $5,000,000 | $0 | 0.0% |
| NYS Higher Education Loan Program Acct - (SRO) | $5,000,000 | $5,000,000 | $5,000,000 | $0 | 0.0% |
| Maintenance Undistributed | $5,000,000 | $5,000,000 | $5,000,000 | $0 | 0.0% |
| Third Party Debt Collection Program | $0 | $250,000 | $250,000 | 0.0% | |
| Special Revenue-Other (SRO) | $0 | $250,000 | $250,000 | 0.0% | |
| NYS Higher Education Loan Program Acct - (SRO) | $0 | $250,000 | $250,000 | 0.0% | |
| Maintenance Undistributed | $0 | $250,000 | $250,000 | 0.0% | |
| College Choice Tuition Savings Pgm * (p. 586) | $829,800 | $829,800 | $829,800 | $0 | 0.0% |
| Special Revenue-Other (SRO) | $829,800 | $829,800 | $829,800 | $0 | 0.0% |
| College Savings Acct - (SRO) | $829,800 | $829,800 | $829,800 | $0 | 0.0% |
| Personal Service | $416,100 | $416,100 | $416,100 | $0 | 0.0% |
| Nonpersonal Services | $203,000 | $203,000 | $203,000 | $0 | 0.0% |
| Fringe Benefits | $194,700 | $194,700 | $194,700 | $0 | 0.0% |
| Indirect Costs | $16,000 | $16,000 | $16,000 | $0 | 0.0% |
| * Appears in Miscellaneous Section of Budget Books | |||||