Department of Taxation and Finance

 

            

The enacted budget makes no changes to the Executive Budget, accepting the merger of the Office of Real Property Services into Tax and Finance. The SFY 2010-11 All Funds appropriation is a $7.73 million increase from its SFY 2009-10 enacted budget All Funds appropriation.

 

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

 

The 21-day amendments propose the following changes to Tax Appeals (analysis as of February 10, 2010):

 

The Executive Budget recommends (analysis as of January 20, 2010):

 

A SFY 2010-11 workforce of 5,622.  This is a net increase of 444 FTEs from the from the adjusted FTE level for FY 2009-10.  According to the Workforce Impact Summary Report this reflects the reduction of 434 FTEs through attrition, offset by 580 new fills and 298 FTEs attributed to the proposed merger of the Office of Real Property Services into Tax and Finance. The Executive Budget Agency Presentation, however, shows only 268 FTEs associated with the new Office of Real Property Tax Services program.  The discrepancy between the Workforce Impact Summary and the Agency Presentation (-30 FTEs) should be addressed at statewide labor/management. An additional increase of 176 FTEs is attributed to new staff across the auditing, collection and enforcement programs to realize $221 million in additional revenue through increased compliance.  Most of these FTEs were funded in the last SFY, but not added.. The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in SFY 2010-11 FTEs by program (if the FTE’s are the same the program is not listed):

 

Program

FY 2009-10 Adjustment

FY 2010-11 Difference

Audit Collection and Enforcement

-90

+108

Real Property Services

-60

+0

Revenue Processing and Reconciliation

-46

+46

Tax Policy Revenue & Accounting

-4

+4

Technology and Information Services

-18

+18

 

·         An All Funds appropriation of $527.97 million, an increase of $7.7 million (1.5%).

 

·         The total appropriation for Personal Service is $348.83 million, an increase of $19.2 million, or 8.5%.  Most of this increase; $18.2 million, is in support of ORPS personal service.  Contractual services funding is $122.9 million, an increase of $5.4 million, or 4.6%.  Again, much of this increase is in support of ORPS contractual services.  Significant decreases in contractual services, including a $4.4 million or 9.5% decrease or in the Banking Services Account ISF (Revenue Processing and Reconciliation Program) and the $2.5 million, or 8% decrease in Technology & Information Services Program (Technology and Information Services Program), are offset by a $10 million increase for contractual services in the Tax Revenue Arrearage Acct SRO (Audit Collection and Enforcement Program).

 

·         The appropriation related to ORPS personal services is decreased by $2.5 million or -12%.  This appears to be related to the attrition of 60 FTEs in SFY 2009-10.  The appropriation related to ORPS contractual services decreases by $2 million, or -37%.

 

·         Audit and Collection Enforcement Program: increase of $19.25 million, or 10.5 percent which primarily reflects the $12.5 million increase in Special Revenue Other in the Federal Equitable Sharing Agreement Account and the Tax Revenue Arrearage Account and a Personal Services increase of $6.8 million.

 

·         The following programs had significant changes in their personal services appropriations:

o   Revenue Processing & Reconciliation Program:  Sales Tax Re-registration Fee Acct SRO: an increase of $1.3 million, or 100%.

o   Revenue Processing & Reconciliation Program:  Tax Return Preparer Registration Fee Acct SRO: an increase of $480,000 or 100%.

 

·         The following programs had significant changes in their contractual services appropriations:

o   Audit Collection and Enforcement Program: Federal Equitable Sharing Agreement Acct SRF: increase of $625,000 or 100%; Tax Revenue Arrearage Acct SRO: increase of $10 million or 250%.

o   Revenue Processing and Reconciliation Program: Sales Tax Re-registration Fee Acct SRO: increase of $1.19 million or 100%; Tax Return Preparer registration Fee Acct SRO: increase of $270,000 or 100%; Banking Services Acct ISF – decrease of $4.39 million, or -9.5%.

o   Technology and Information Services Program – decrease of $2.51 million or -8%.

 

·         The Department employed an estimated 70 employees under consultant contracts in SFY 2009-10 at a cost of $11.5 million, and anticipates that these figures will not change for SFY 2010-11.  The estimated 35 consultant employees employed through ORPS is also not expected to change.  These employment numbers are not calculated on an FTE basis, so it is difficult to draw conclusions about the costs.

 

·         Anticipates merger will produce $1.9 million in annual savings by consolidating facilities and services in support of the agency operations.  The merger will expand on the current host agency arrangement that has already reduced overall costs for administrative support by $650,000.

 

Division of Tax Appeals

 

The enacted budget makes no changes to the Executive Budget.  The SFY 2010-11 All Funds appropriation is a $300,000 decrease from its SFY 2009-10 enacted budget All Funds appropriation.

 

The 21-day amendments propose the following changes to Tax Appeals (analysis as of February 10, 2010):

 

The Executive Budget recommends (analysis as of January 25, 2010):

 

A workforce of 27, no change from the adjusted 2009-10 levels.  However, the Board experienced a decrease of 3 positions from the 2009-10 Executive Budget.  The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in SFY 2010-11 FTEs by program (if the FTE’s are the same the program is not listed):

 

Program

SFY

09-10 FTE

Adjustment

10-11 Exec Bud

Est FTEs

3/31/11

SFY 10-11 FTE

Difference from Adjusted 09-10

Administration

-3

27

0

Total

(-3)

27

0

 

 

·         An All Funds Budget decrease of $440,000, or, (-13.1%) from the enacted SFY 2009-10 budget.

 

·         A $2.5 million appropriation for personal services, a decrease of $360,000 or -12.4%.

 

·         A $257,000 appropriation for contractual services, a decrease of $56,000, or -17.9%.

 

·         No consultant employees were reported.

 

Department of Taxation and Finance includes Office of Real Property Services
Program Details-State Operations 
  Enacted Proposed Enacted Change in Percent
Program 2009-10 Budget 2010-11 Budget 2010-11 Budget Appropriation Change
All Funds $520,235,000 $527,969,000 $527,969,000 $7,734,000 1.5%
General Fund $378,652,000 $376,366,000 $376,366,000 ($2,286,000) -0.6%
Special Revenue-Fed $2,582,000 $2,500,000 $2,500,000 ($82,000) -3.2%
Special Revenue-Oth $92,799,000 $107,297,000 $107,297,000 $14,498,000 15.6%
Internal Service $46,202,000 $41,806,000 $41,806,000 ($4,396,000) -9.5%
           
Personal Services $321,403,000 $348,834,100 $348,834,100 $27,431,100 8.5%
Contractual Services $117,522,356 $122,972,400 $122,972,400 $5,450,044 4.6%
           
Audit, Collection & Enforcement $182,779,987 $202,039,900 $202,039,900 $19,259,913 10.5%
Personal Services $169,785,101 $176,671,000 $176,671,000 $6,885,899 4.1%
Regular $167,765,101 $174,901,000 $174,901,000 $7,135,899 4.3%
Temporary Service $1,020,000 $1,020,000 $1,020,000 $0 0.0%
Holiday/overtime compensation $1,000,000 $750,000 $750,000 ($250,000) -25.0%
Nonpersonal Service $6,412,886 $6,368,900 $6,368,900 ($43,986) -0.7%
Supplies and materials $420,479 $420,500 $420,500 $21 0.0%
Travel $3,700,646 $3,700,600 $3,700,600 ($46) 0.0%
Contractual Services $1,127,577 $1,083,600 $1,083,600 ($43,977) -3.9%
Equipment $1,164,184 $1,164,200 $1,164,200 $16 0.0%
Special Revenue - Fed. $2,582,000 $2,500,000 $2,500,000 ($82,000) -3.2%
Special Revenue-Other $4,000,000 $16,500,000 $16,500,000 $12,500,000 312.5%
           
Federal Equitable Sharing Agreement Acct - (SRF) $2,500,000 $2,500,000 $2,500,000 $0 0.0%
Motor Fuel Tax Compliance Acct - (SRF) $82,000 $0 $0 ($82,000) -100.0%
           
Federal Equitable Sharing Agreement Acct - (SRO) $0 $2,500,000 $2,500,000 $2,500,000 100.0%
Nonpersonal Services $0 $2,500,000 $2,500,000 $2,500,000 100.0%
Supplies and materials $0 $625,000 $625,000 $625,000 100.0%
Travel $0 $625,000 $625,000 $625,000 100.0%
Contractual Services $0 $625,000 $625,000 $625,000 100.0%
Equipment $0 $625,000 $625,000 $625,000 100.0%
           
Tax Revenue Arrearage Acct - (SRO) $4,000,000 $14,000,000 $14,000,000 $10,000,000 250.0%
Nonpersonal Service $4,000,000 $14,000,000 $14,000,000 $10,000,000 250.0%
Contractual Services $4,000,000 $14,000,000 $14,000,000 $10,000,000 250.0%
           
Centralized Operations Support Prg $29,020,005 $25,000,600 $25,000,600 ($4,019,405) -13.9%
Personal Services $5,582,578 $5,484,200 $5,484,200 ($98,378) -1.8%
Regular $4,983,578 $4,885,200 $4,885,200 ($98,378) -2.0%
Temporary Service $549,000 $549,000 $549,000 $0 0.0%
Holiday/overtime compensation $50,000 $50,000 $50,000 $0 0.0%
Nonpersonal Service $23,437,427 $19,516,400 $19,516,400 ($3,921,027) -16.7%
Supplies and materials $9,360,669 $6,347,700 $6,347,700 ($3,012,969) -32.2%
Travel $27,889 $27,900 $27,900 $11 0.0%
Contractual Services $13,424,586 $12,516,600 $12,516,600 ($907,986) -6.8%
Equipment $624,283 $624,200 $624,200 ($83) 0.0%
           
Conciliation & Mediation $1,754,904 $1,908,000 $1,908,000 $153,096 8.7%
Personal Services $1,677,673 $1,830,800 $1,830,800 $153,127 9.1%
Regular $1,677,673 $1,830,800 $1,830,800 $153,127 9.1%
Nonpersonal Service $77,231 $77,200 $77,200 ($31) 0.0%
Supplies and materials $3,575 $3,600 $3,600 $25 0.7%
Travel $68,650 $68,600 $68,600 ($50) -0.1%
Contractual Services $4,291 $4,300 $4,300 $9 0.2%
Equipment $715 $700 $700 ($15) -2.1%
           
Management, Administration & Counsel Prg $16,834,684 $17,245,000 $17,245,000 $410,316 2.4%
Personal Services $15,548,217 $15,990,500 $15,990,500 $442,283 2.8%
Regular $15,379,217 $15,821,500 $15,821,500 $442,283 2.9%
Temporary Service $159,000 $159,000 $159,000 $0 0.0%
Holiday/overtime compensation $10,000 $10,000 $10,000 $0 0.0%
Nonpersonal Service $1,286,467 $1,254,500 $1,254,500 ($31,967) -2.5%
Supplies and materials $97,969 $98,000 $98,000 $31 0.0%
Travel $111,556 $111,600 $111,600 $44 0.0%
Contractual Services $810,209 $778,200 $778,200 ($32,009) -4.0%
Equipment $266,733 $266,700 $266,700 ($33) 0.0%
           
Office of Real Property Tax Services Program $32,557,000 $26,205,000 $26,205,000 ($6,352,000) -19.5%
Personal Service $20,800,000 $18,250,000 $18,250,000 ($2,550,000) -12.3%
Regular $20,800,000 $18,250,000 $18,250,000 ($2,550,000) -12.3%
Nonpersonal Service $6,300,000 $3,900,000 $3,900,000 ($2,400,000) -38.1%
Supplies and materials $250,000 $200,000 $200,000 ($50,000) -20.0%
Travel $350,000 $200,000 $200,000 ($150,000) -42.9%
Contractual Services $5,000,000 $3,200,000 $3,200,000 ($1,800,000) -36.0%
Equipment $700,000 $300,000 $300,000 ($400,000) -57.1%
Special Revenue-Other (SRO) $5,457,000 $4,055,000 $4,055,000 ($1,402,000) -25.7%
        $0  
Industrial & Utility Service Acct - (SRO) $3,674,000 $2,920,000 $2,920,000 ($754,000) -20.5%
Personal Services $2,200,000 $1,850,000 $1,850,000 ($350,000) -15.9%
Regular $2,200,000 $1,850,000 $1,850,000 ($350,000) -15.9%
Nonpersonal Services $1,474,000 $1,070,000 $1,070,000 ($404,000) -27.4%
Contractual Services $299,000 $100,000 $100,000 ($199,000) -66.6%
Fringe Benefits $1,090,000 $905,000 $905,000 ($185,000) -17.0%
Indirect Costs $85,000 $65,000 $65,000 ($20,000) -23.5%
        $0  
Local Services Acct - (SRO) $1,783,000 $1,135,000 $1,135,000 ($648,000) -36.3%
Personal Services $1,100,000 $705,000 $705,000 ($395,000) -35.9%
Regular $1,100,000 $705,000 $705,000 ($395,000) -35.9%
Nonpersonal Services $683,000 $430,000 $430,000 ($253,000) -37.0%
Contractual Services $60,000 $50,000 $50,000 ($10,000) -16.7%
Fringe Benefits $575,000 $355,000 $355,000 ($220,000) -38.3%
Indirect Costs $48,000 $25,000 $25,000 ($23,000) -47.9%
           
Revenue Processing & Reconciliation Pgm $171,266,949 $171,426,700 $171,426,700 $159,751 0.1%
Personal Services $42,825,425 $43,981,200 $43,981,200 $1,155,775 2.7%
Regular $36,559,425 $38,590,200 $38,590,200 $2,030,775 5.6%
Temporary Service $5,766,000 $5,016,000 $5,016,000 ($750,000) -13.0%
Holiday/overtime compensation $500,000 $375,000 $375,000 ($125,000) -25.0%
Nonpersonal Service $1,838,524 $1,838,500 $1,838,500 ($24) 0.0%
Supplies and materials $788,756 $788,800 $788,800 $44 0.0%
Travel $100,114 $100,100 $100,100 ($14) 0.0%
Contractual Services $782,320 $782,300 $782,300 ($20) 0.0%
Equipment $167,334 $167,300 $167,300 ($34) 0.0%
Personal Services - EnCon Title 10 Article 27 $468,000 $468,000 $468,000 $0 0.0%
Regular $310,000 $310,000 $310,000 $0 0.0%
Temporary Service $158,000 $158,000 $158,000 $0 0.0%
Nonpersonal Service $280,000 $280,000 $280,000 $0 0.0%
Supplies and materials $25,000 $25,000 $25,000 $0 0.0%
Contractual Services $230,000 $230,000 $230,000 $0 0.0%
Equipment $25,000 $25,000 $25,000 $0 0.0%
Special Revenue-Other $79,653,000 $83,053,000 $83,053,000 $3,400,000 4.3%
Internal Service $46,202,000 $41,806,000 $41,806,000 ($4,396,000) -9.5%
           
NYC Assessment Acct - (SRO) $0 $150,000 $150,000 $150,000 100.0%
Personal Services $0 $98,000 $98,000 $98,000 100.0%
Regular $0 $98,000 $98,000 $98,000 100.0%
Nonpersonal Services $0 $52,000 $52,000 $52,000 100.0%
Contractual Services $0 $52,000 $52,000 $52,000 100.0%
           
NYC Assessment Acct - (SRO) $79,653,000 $79,653,000 $79,653,000 $0 0.0%
Personal Services $36,881,000 $36,881,000 $36,881,000 $0 0.0%
Regular $35,566,000 $35,566,000 $35,566,000 $0 0.0%
Temporary service $1,315,000 $1,315,000 $1,315,000 $0 0.0%
Nonpersonal Services $42,772,000 $42,772,000 $42,772,000 $0 0.0%
Supplies and materials $2,553,000 $2,553,000 $2,553,000 $0 0.0%
Travel $2,000,000 $2,000,000 $2,000,000 $0 0.0%
Contractual Services $18,000,000 $18,000,000 $18,000,000 $0 0.0%
Equipment $2,000,000 $2,000,000 $2,000,000 $0 0.0%
Fringe benefits $16,799,000 $16,799,000 $16,799,000 $0 0.0%
Indirect costs $1,420,000 $1,420,000 $1,420,000 $0 0.0%
           
Sales Tax Re-registration Fee Acct - (SRO) $0 $2,500,000 $2,500,000 $2,500,000 100.0%
Personal Services $0 $1,305,000 $1,305,000 $1,305,000 100.0%
Regular $0 $1,305,000 $1,305,000 $1,305,000 100.0%
Nonpersonal Services $0 $1,195,000 $1,195,000 $1,195,000 100.0%
Contractual Services $0 $1,195,000 $1,195,000 $1,195,000 100.0%
           
Tax Return Preparer Registration Fee Acct - (SRO) $0 $750,000 $750,000 $750,000 100.0%
Personal Services $0 $480,000 $480,000 $480,000 100.0%
Regular $0 $480,000 $480,000 $480,000 100.0%
Nonpersonal Services $0 $270,000 $270,000 $270,000 100.0%
Contractual Services $0 $270,000 $270,000 $270,000 100.0%
           
Banking Services Acct - (ISF) $46,202,000 $41,806,000 $41,806,000 ($4,396,000) -9.5%
Nonpersonal Services $46,202,000 $41,806,000 $41,806,000 ($4,396,000) -9.5%
Contractual Services $46,202,000 $41,806,000 $41,806,000 ($4,396,000) -9.5%
           
Tax Policy, Revenue Acct & Taxpayer Guidance Prg $12,253,238 $12,037,700 $12,037,700 ($215,538) -1.8%
Personal Services $11,016,114 $10,800,600 $10,800,600 ($215,514) -2.0%
Regular $10,913,114 $10,697,600 $10,697,600 ($215,514) -2.0%
Temporary Service $38,000 $38,000 $38,000 $0 0.0%
Holiday/overtime compensation $65,000 $65,000 $65,000 $0 0.0%
Nonpersonal Service $1,237,124 $1,237,100 $1,237,100 ($24) 0.0%
Supplies and materials $44,336 $44,300 $44,300 ($36) -0.1%
Travel $20,023 $20,000 $20,000 ($23) -0.1%
Contractual Services $1,159,893 $1,159,900 $1,159,900 $7 0.0%
Equipment $12,872 $12,900 $12,900 $28 0.2%
           
Technology & Information Svcs Prg $70,079,233 $68,417,100 $68,417,100 ($1,662,133) -2.4%
Personal Services $36,061,892 $36,919,800 $36,919,800 $857,908 2.4%
Regular $35,261,892 $36,244,800 $36,244,800 $982,908 2.8%
Temporary Service $300,000 $300,000 $300,000 $0 0.0%
Holiday/overtime compensation $500,000 $375,000 $375,000 ($125,000) -25.0%
Nonpersonal Service $34,017,341 $31,497,300 $31,497,300 ($2,520,041) -7.4%
Supplies and materials $107,265 $107,300 $107,300 $35 0.0%
Travel $214,530 $214,500 $214,500 ($30) 0.0%
Contractual Services $31,381,480 $28,861,500 $28,861,500 ($2,519,980) -8.0%
Equipment $2,314,066 $2,314,000 $2,314,000 ($66) 0.0%
           
Treasury Management $3,689,000 $3,689,000 $3,689,000 $0 0.0%
Special Revenue-Other $3,689,000 $3,689,000 $3,689,000 $0 0.0%
           
Investment Services Acct (SRO) $3,689,000 $3,689,000 $3,689,000 $0 0.0%
Personal Services $2,025,000 $2,025,000