Board Resolution

-1-

Month, Day, Year

MEMORANDUM
November 30, 2016
TO:

Members of the Board of Trustees

FROM:

Nancy L. Zimpher, Chancellor

SUBJECT: 2017/18 Operating Budget Request

Action Requested
The proposed resolution approves the State University of New Yorks
2017/18 Operating Budget Request.
Resolution
I recommend that the Board of Trustees adopt the following resolution:
Whereas the State University of New York (SUNY) is an
essential component of the States educational and economic
engine, serving as centers of innovation that generate leading
edge research and provide educational programs of the
highest quality; and
Whereas the State University recognizes that in order to
provide the people of the State of New York with these
educational services, with the broadest possible access, and
to fulfill its statutory mission, it must provide its students and
institutions the ability to plan for affordability in both
attendance and operations; and
Whereas the State University community understands that
this perspective is shared by the Governor of the State of New
York; and
Whereas the State University fully supports the Governors
vision to make government work better and smarter, and to
operate more efficiently; and

Board Resolution

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November 30, 2016

Whereas the State University has implemented a wideranging series of efficiency initiatives, including strategic
sourcing,
information
technology
transformation,
administrative alliances, and campus alliance networks to
generate administrative savings in excess of $100,000,000
that continues to grow and have been, and will continue to be,
reinvested in instruction and student services; and
Whereas the State Universitys budget request reflects careful
consideration of the necessary direct state tax support and
revenue spending authority (appropriation) levels to continue
to provide high-quality services; and
Whereas, in recognition of the width, breadth, and complexity
of the State University system, the State University is
forwarding requests for additional support for State University
related activities in the areas of Human Services and
Economic Development; and
Whereas the 30 community colleges operating under the
program of the State University of New York ensure open
access to high quality postsecondary education, and
contribute significantly to the development of an educated
citizenry and skilled workforce; and
Whereas the three SUNY teaching hospitals provide worldclass medical care to their regions; produce leading edge
research in health care; and play a critical role in their regional
economies; now, therefore, be it
Resolved that the State University will continue its efforts to
turn administrative savings into reinvestment in education and
student support; and, be it further
Resolved that, in partnership with the State providing for
appropriate levels of direct state tax support for the Stateoperated campuses, the NY-SUNY 2020 legislation be
extended for a five-year period and the students of the 29
State-operated campuses be provided with a tuition plan,
effective through 2020/21; and, be it further
Resolved that, the authority of the Board of Trustees is
recognized in such manner that they will be able to annually
set resident undergraduate tuition rate increases within three
distinct bands as recommended by each individual campus.
These bands shall be set at the $300, $200, or $100 level

Board Resolution

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November 30, 2016

(NY-SUNY 2020: 1, 2, 3) and will be reviewed annually by

the Board of Trustees; and, be it further
Resolved that direct state tax support for the State-operated
campuses be provided in the amount of approximately
$84,000,000 to support activities related to college
affordability and programmatic growth; and, be it further
Resolved that to support and expand opportunities and
student services already provided at the State University a
total of approximately $26,000,000 in direct state support be
provided to expand the Empire Innovation Program and
Educational Opportunity Program (EOP) as well as to support
child care centers across SUNY; and, be it further
Resolved that in order to meet the on-going costs of current
operations, preserve gains in academic quality, achieve
excellence, and serve the State of New York to the greatest
degree possible, the State University requests that the Stateoperated campuses, System Administration, University-wide
programs, and Health Science Centers be provided the ability
to plan and operate in an affordable manner through the
introduction of a hold harmless provision that will protect
their operations from annual budget reductions and include
incremental direct state tax support for state negotiated costs,
such as collective bargaining contracts that could drive more
than $60,000,000 in new costs based on historical patterns,
while also entering into discussions on the state assuming the
full costs of the Tuition Assistance Program (TAP); and, be it
further
Resolved that in order to support the ongoing costs and
mission of the five statutory and contract colleges of the State
University - including the activities of the New York State
College of Ceramics at Alfred University and those related to
both the operations and land grant mission of Cornell
University - the State University requests that the level of
direct state tax support for these institutions be increased by
approximately $5,500,000, with an additional $500,000
provided for the Cornell Veterinary College; and, be it further
Resolved that, in order to meet the needs of the Cornell
Cooperative Extension, both the statutory formula and
requested initiatives be fully funded through an increase of
$538,000; and, be it further

Board Resolution

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November 30, 2016

Resolved that in order to ensure necessary funds are

available to support the on-going costs of current operations,
while not placing disproportionate financial pressures on local
governments or students, the State University requests that a
total of approximately $15,200,000 be provided to the 30
community colleges operating under the program of the State
University, on a year-to-year academic year basis, which will
serve as base operating support and be used to provide
additional support to small community colleges, and ensure
that proper funding is available to support student success
and workforce development; and, be it further
Resolved that $2,500,000 in direct state tax support be
provided over a three-year period to double the number of
community schools within SUNY, from the current five to a
total of ten, as well as an additional $500,000 for child care
centers at the community colleges; and, be it further
Resolved that to ensure that SUNY remains competitive and
innovative ideas generated by our campuses, faculty, and
staff such as the SUNY Smart Track Re-Enroll Project are
properly supported, that the former Investment and
Performance Fund be re-instated by such in the 2017/18
Enacted State Budget, increased by $32,000,000 to a total of
$50,000,000, and finally expanded to ensure eligibility to all
SUNY institutions; and, be it further
Resolved that to ensure SUNY teaching hospitals continue to
provide world-class medical care to their regions and continue
their leading edge research in health care and important role
in regional economies, the State University requests that
direct State tax support be held equal to the 2016/17 value
while providing relief from planned reimbursement to the state
for debt service payments; and, be it further
Resolved that the State of New York and SUNY engage in
conversations on potential adjustments to the Medicaid
reimbursement rate to provide the SUNY hospitals with
additional operational support for their public mission while
reducing pressure on the state in regard to disproportionate
share payments; and, be it further
Resolved that necessary funds are available to support
general state charges expenses currently appropriated within
the states overall General State Charges Budget and paid by
the state; and, be it further

Board Resolution

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November 30, 2016

Resolved that the appropriation level for the State Universitys

Tuition Revenue Offset Fund be increased to reflect planned
enrollment levels, the NY-SUNY 2020: 1, 2, 3 initiative,
campus supported plans for graduate and professional tuition
rate plans, and to bring the University Centers into alignment
in the area of non-resident undergraduate tuition; and, be it
further
Resolved that appropriations for the State Universitys special
revenue funds be set at the appropriate levels to cover
general inflation and changes in activity; and, be it further
Resolved that the proposed operating budget request for
State-operated and statutory colleges and the community
colleges (copy on file in the Office of the Secretary of the State
University), as described in this resolution and the attached
background materials, be, and hereby is, approved for the
2017/18 fiscal year, and the Chancellor, or designee, be, and
hereby is, authorized to transmit such budget request to the
Director of the Budget; and, be it further
Resolved that the State University requests all re-appropriations
necessary for the following purposes be included in the 2017/18
Executive Budget: General Income Fund Reimbursable;
Hospital Operations; University-wide Hospital activities; Special
Revenue Funds Federal (various student assistance programs);
and Aid to Localities (legislative and other line item initiatives);
and, be it further
Resolved that the State Universitys capital plan for Educational
Facilities, Community Colleges, Residence Halls, and
Hospitals, presented separately, be fully funded in order to
support the ongoing operations of the State University system.

Background
See narrative titled 2017/18 Operating and Capital Budget Request.

Attachments

STATE UNIVERSITY OF NEW YORK

2017/18 OPERATING AND CAPITAL

BUDGET REQUEST

Page 1 of 21

2017/18
BUDGET REQUEST
The State University of New York (SUNY) presents the following request for direct state tax support for
the 2017/18 academic year. In addition, information is provided on the level of spending authority required by
our State-operated campuses, teaching hospitals, and the Long Island Veterans Home (LIVH) to utilize their
own self-generated revenue.
This request is made in the context of the ongoing national and local conversation on postsecondary
education that has been focused on issues such as college affordability, student success, and investment by
states in their institutions of public higher education.
SUNY proposes to meet the challenges posited by the national dialogue, using its 2017/18 request to the
State as a foundation to serve our over 600,000 students in credit bearing courses and programs, over 700,000
continuing education and community outreach programs, and every patient, faculty member, staff person,
alumni, and community that is either a direct or indirect beneficiary of the State University System. This request
for 2017/18 would facilitate a five-year plan that started in 2016/17, extends through 2020/21, and seeks to
increase investment in all parts of the SUNY system.
The first year of this plan had no increase in either direct state aid for operating expenses at the Stateoperated campuses or in resident undergraduate tuition rates. While direct state aid, on a per student basis, did
increase for the community colleges, 21 of the 30 institutions are projecting to see a lower amount of support
from the State in 2016/17 than they did in the year prior. Tuition rates at the community colleges, which are set
by the local boards, did increase in year one of the plan; reflecting the need for the colleges to gain additional
revenue to accommodate costs associated with employee benefits.
This plan is supplemented by the following summarized proposals:

A five-year extension, beginning in 2016/17 and ending 2020/21, of the NY-SUNY 2020
resident undergraduate tuition rate plan for State-operated campuses. This plan shall be adjusted,
however, to address the unique needs of each of the State-operated campuses by instituting three
distinct baskets of maximum annual increases in resident undergraduate tuition rates equal to
$100, $200 or $300 per annum. The SUNY Board would review annually, but approval shall
always be subject to the cap for each basket.
An increased and sustained level of direct reinvestment by the State in the State University
System to restore reductions made since 2007/08; sustain investments already made by the State;
provide protection against costs outside of SUNYs control; and enable SUNY to meet the needs
of the 21st century information / knowledge based economy. This shall be accomplished by:
o Restoring, over the course of 2017/18, 2018/19, 2019/20, and 2020/21 the direct support
removed from the State-operated campuss operating budgets since 2007/08, with the
acknowledgement that the States ability to restore only becomes known in future years.
o Maintaining level year-to-year amounts of direct state aid for the State-operated
campuses, while also providing incremental additional support to offset any increased
costs arising out of the collective bargaining agreement presently under negotiation.
It is notable that a two percent increase would result in total additional costs
across the State-operated campus and related appropriated areas equal to
approximately $64 million per year.

Page 2 of 21

o Providing, for the community colleges, a stable level of year-to-year funding by

considering the total amount of per student funding in the 2016/17 budget as core base
aid and that the same amount be provided in 2017/18 regardless of enrollment levels.
This would be facilitated by replacing the current per student funding model with
a core direct state aid funding model.
This stable support for the colleges would be paired with additional investment by
the State in student success programs and small colleges (those with less than
2,000 students).
o Requesting that the State forgive debt service over the next four years at the SUNY
academic medical centers on capital projects which address health and safety concerns.
o Continuing the base, and adding additional funding support for successful, existing
programs such as the Educational Opportunity Program (EOP) and the SUNY Investment
and Performance Fund.
o Meeting the funding requests for the statutory campuses and linked activities.
o Meeting a multi-year capital budget request that funds critical maintenance needs and a
physical environment necessary to provide students modern and well-designed buildings
and classrooms essential to achieving the high performing learning environments
necessary.
With this proposed investment and policy support in SUNY, New York State can work to become the
best in the nation in terms of students completing, and eventually finding success in their educational goals.
This work will also address college affordability by ensuring that students not only graduate, but graduate with
skills that are appropriate for the new economy. The State itself will see a benefit as well. Research1 has shown
that students graduating with a bachelors degree as their highest educational attainment were unemployed fifty
percent less than those graduating with a high school diploma as their highest educational attainment.
Accordingly, those citizens with a bachelors degree or higher are far more likely to be employed, creating
healthier communities and fiscal support with higher taxes at the local, state and federal level.

Trostel, P. Its Not Just the Money, The Benefits of College Education to Individuals and to Society. Lumina Issue Papers. Lumina
Foundation
1

Page 3 of 21

Budget Request
The 2017/18 request uses the 2016/17 Enacted Budget as a starting point, anticipating that all support
received in this year will be continued and all requests be provided incrementally to this base level of support.
Information on SUNYs 2017/18 operating budget request is summarized below for the entire SUNY
system, and discussed in further detail in the following individual sections. A specific section on the capital
request is also included. Please note that the funding levels needed for the States continued support of Stateoperated campus fringe benefit and debt service costs are not reflected, and are assumed to continue to be
centrally managed and appropriated by the State as they are for the majority of state agencies.
2017/18 State University of New York (SUNY) Operating Budget Request: Direct State Tax Support2
($M)

Area
State-operated
Campuses
Community
Colleges
University-wide
Programs
Statutory
Campuses
Hospitals/Other
Health
Investment
Fund
Linked
Activities

Grand Total

2016/17 Enacted
State Budget

Investment in Student
Success

2017/18 SUNY Budget as

Requested

Cost Avoidance

$708.0

$84.03

$792.0

492.7

18.24

510.9

156.4

26.5

182.9

133.8

6.0

139.7

87.9

3.05

87.9

18.0

32.0

50.0

-6

3.07

3.0

$1,596.8

$169.7

$3.05

$1,766.4

While many of our campuses are facing fiscal stress, while perennially under pressure to offer additional
and expanded services to our students, SUNY continues to work with our institutions to manage these pressures
through expanded shared services, operational efficiencies, and strategic sourcing facilitated by the 2016/17
Enacted State Budgets renewal of procurement reform for SUNYs educational mission.
However, as successful as these activities have been, the savings can only be stretched so far. Therefore,
as elaborated in the individual sections, SUNY will look to ensure that both our students and institutions have
the opportunity to function in a predictable and affordable manner. For our State-operated campuses, this
includes the critical component of ensuring direct state tax support is provided for upcoming costs associated

Please note that totals may not add due to rounding

The 2017/18 SUNY request for a re-imagination of the 2011/12 Maintenance of Effort (MOE) would include direct state tax support
for any State negotiated contract, including those related to collective bargaining. These prospective costs are not reflected in this
chart.
4
Please note that this figure represents the simple year-to-year comparison of academic funding and does not take into account the
enrollment based adjustments made to community college funding by the state represented in the current New York State Financial
Plan.
5
Represents cost avoidance, not additional dollars to the hospital subsidy.
6
Base funding for these activities is included in the University-wide program area, with the exception of continued support for the
SUNY Voluntary Defined Contribution (VDC) plan through the States central General State Charges appropriations
7
This does not include approximately $300.0K in incremental funding requested through the federal Temporary Aid for Needy
Families (TANF) program
3

Page 4 of 21

with collectively bargained salary contracts as well as protecting them, and all of our institutions, from returning
to the rollercoaster days of annual direct state tax support reductions and associated tuition increases.
In addition to this desire to ensure affordability and predictability, SUNY looks forward to engaging
with the Governor and Legislature in other areas that could benefit our students and campuses, including the
SUNY Supplemental Tuition Assistance Program (TAP) program which requires SUNY to self-fund
(approximately $60 million) the benefit of the TAP program above that supported by the State, and continues to
reduce the amount of investment our institutions can make in student success.
1. State-operated Campuses
2017/18 State University of New York (SUNY) State-operated Campus Request: Direct State Tax Support8
($M)

2016/17 Enacted
State Budget

Area
Campus
Support

Total

Investment in
Student Success

Cost Avoidance

2017/18 SUNY
Budget As
Requested

Total Request

$708.09

$84.0

$792.0

$708.0

$84.0

$792.0

Establish a Predictable Tuition Plan that Fosters Completion and Affordability

o In 2016/17, the first year of this plan, there were no resident undergraduate baccalaureate
tuition rate increases at these institutions.
o Starting with 2017/18, and for the three years following, each campus would be provided the
option of increasing this resident undergraduate tuition rate by one of three maximum
basket caps, a $100 basket, a $200 basket, and a $300 basket (NY-SUNY 2020: 1, 2, 3).
o Each campus would make this decision based upon its financial needs, enrollment, and
competitive position.
o The SUNY Board of Trustees would review this campus decision annually, within the
framework of state aid provided, and make a determination of the proper tuition rate; but
always within the capped limit for each basket.

$84.0 million to establish a renewed and sustained direct reinvestment in the State-operated
campuses by the State
o SUNY requests that the State provide additional direct support to return to the approximate
levels of direct investment that the State had in our 29 State-operated campuses in 2007/08
through a five-year plan (with 2016/17 being Year One) to return these institutions to these
levels of direct state tax support.
o The requested amount of $84.0 million would represent the first infusion of direct state
support from this initiative, which will serve with matching amounts in 2018/19, 2019/20,
and 2020/21 - to increase our State-operated campuses from the current Board of Trustees
approved levels of $676.4 million to $1,013.5 million. This multi-year request acknowledges
and is dependent on the States ability to restore, which only becomes known in future years.
o This support would be in in partnership with the additional, indirect, support that SUNY
receives from NY as not only the largest comprehensive system of postsecondary education
in the nation, but also the caretaker of 41 percent of the States physical assets10, the

Please note that totals may not add due to rounding

It is important to note that, while the text refers to support of $676.4M, this $708.0M figure includes support for SUNY
Supplemental Hospital Support ($14.0M), System Administration ($13.8M), and Transitional Support ($3.7M).
10
Calculated using the State of New York, Comprehensive Annual Financial Report for Fiscal Year Ended March 31, 2016
9

Page 5 of 21

employer of nearly a quarter of the State Government workforce11, and the destination of
choice of nearly 40 percent of the States TAP recipients12. It is important to note that, in
return for this support, SUNY plays an immense role in the economy; generating $17.0
billion in impact, supports 170,000 jobs and generates almost $500 million in state and local
taxes.

Establish a Predictable Operating Model that Fosters Investment in Students:

o SUNY proposes that, starting in the 2017/18 academic year and continuing on through
2020/21, the NY-SUNY 2020 Maintenance of Effort provision be re-established and reimagined as a Hold Harmless provision, ensuring stability in year-to-year funding levels,
and also including incremental direct state tax support for those costs that are negotiated
outside of the Systems control, such as collective bargaining agreements.
o While agreements have yet to be signed13, this request is not only imperative for the
continued viability of existing levels of student success, but to facilitate our continued work
in improving this success, completion, and impact for the state and nation. For every one
percent (1%) increase in contracts related to the United University Professions (UUP) and
other represented groups, the costs to our campuses in direct instructional activities would be
$20.1 million (or approximately three percent of State-operated campus direct support from
the State), with the impact on all appropriated State-operated campus activities being more
than $30.0 million annually. A two percent (2%) increase, following recent historical
patterns, would then cost $40.114 million in Core Operations annually, and more than $60.0
million across all appropriated funds. This would be in addition to the over $100.0 million in
such costs that have already been absorbed by SUNY since 2013/14.

Providing for the Opportunity to Avoid Costs

o SUNY continues to work with its partners in the Empire State Development Corporation
(ESDC) to ensure that proper controls and guidelines surround our activities related to
economic development through affiliated entities, building upon the expanded guidelines
passed by the Board of Trustees at their June 2016 meeting15.
o And, while this work continues, SUNY will work equally as hard to ensure that the
operational efficiencies related to procurement provided for in the 2011/12 Enacted State
Budget, and renewed in the 2016/17 Enacted Budget, are maintained and our campuses and
hospitals remain able to move nimbly to meet market demands and realize savings in pursuit
of maximizing the investment of the students and the State.

Other potential areas of direct state tax support investment that could benefit both the State-operated
campuses and their students are included in the University-wide programs portion of this request

In addition, Attachment A reflects (in both the Special Revenue Funds Other: section and the
Fiduciary, Internal Service Funds, Contingency: section) the year-to-year spending authority needs of the Stateoperated campuses for dormitory operations, fee supported activities, and other academic program needs. Of
particular interest:
11

Calculated using the FY 2017 Financial Plan Mid-Year Update from the NYS Division of the Budget (DOB)
Calculated using the Higher Education Services Corporation (HESC) 2015/16 Annual Report
13
The Public Employees Federation (PEF) union has reached a tentative three year agreement, which is to be voted on following their
November 17 meeting
14
Due to rounding
15
This resolution can be found at the following location
12

Page 6 of 21

o A year-to-year increase in tuition revenue related spending authority of $64.3 million net of
available revenue authority comprised of enrollment changes at the State-operated
campuses reflected in the long-term enrollment plans provided by these institutions as well as
a final adjustment to non-resident undergraduate rates at University at Albany and
Binghamton University to align them with those offered at Stony Brook University and the
University at Buffalo ($26.8 million) and an additional $37.5 million in spending authority to
accommodate the potential NY-SUNY 2020: 1, 2, 3 bands as chosen by the State-operated
campuses and approved by the SUNY Board of Trustees.
o Re-appropriation of the 2016/17 General Income Fund Reimbursable (IFR)
appropriation in order to ensure that existing contracts and operations continue without any
impact to our students.
o However, none of the numbers shown reflect any need for spending authority increases
related to either the recently announced PEF collectively bargained agreement, or other
salary agreements that may follow.
Finally, while the authority is no longer provided to SUNY directly, the State University is also
requesting that the state tax funding managed centrally by the State to support costs related to the Teacher
Retirement System (TRS), Teachers Insurance and Annuity Association-College Retirement Equities Fund
(TIAA-CREF), and other programs be appropriated at the appropriate levels to handle all forecasted costs for
the 2017/18 academic year.
2. Community Colleges
2017/18 State University of New York (SUNY) Community Colleges: Direct State Tax Support16
($M)

Area
Base Aid18
Rental Aid
Job Linkage
Apprentice SUNY
Child Care
Contract Courses
High Needs Program
GAP
Community Schools Grants
Low Enrollment
Orange CC Bridges
Rockland CC Veterans Literacy Program

Total

2016/17 Enacted
State Budget17
$465.9
11.6
3.0
3.0
2.1
1.9
1.7
1.5
1.0
0.9
0.1
0.020

Investment in Student
Success
$15.219
0.5
2.5
-

2017/18 SUNY
Budget As Requested
$481.1
11.6
3.0
3.0
2.6
1.9
1.7
1.5
3.5
0.9
0.1
0.0

$492.7

$18.2

$510.9

16

Please note that totals may not add due to rounding

Figures shown on an academic year basis
18
Also known as Base Operating Aid
19
Please note that this figure represents the simple year-to-year comparison of academic funding and does not take into account the
enrollment based adjustments made to community college funding by the state represented in the current New York State Financial
Plan..
20
Actual amount provided is $16,000
17

Page 7 of 21

Policy and Direct Funding Related Actions

o $15.2 million to Provide for the Community College Experience Needed to Support Student
Success:
The 30 community colleges operating under the program of the State University have,
since 1948, operated under an evolving funding model that has caused challenges for
their ongoing operations.
Under these various models, the one constant has been the per student concept of
funding, in which the State provides for a dollar value per full-time equivalent (FTE)
student (currently at $2,697) as the main component of their support.
This concept works well for the more sizable colleges that have the resource base to
grow and / or sustain enrollment, but can be challenging for colleges that may be
underfunded, are challenged with enrollment fluctuations, or have growth in fixed
costs that exceed their enrollment levels.
To address these challenges, the 2017/18 request would provide for a total dollar
value of support to be provided to the community colleges as opposed to a per student
approach, with the funding being utilized as follows21:
1. $14.2 million to provide needed funding to support student success work at
the community colleges, including expanding student support services,
expanding career and transfer services, and expanding workforce readiness
programs.
2. $1.0 million in direct state tax support, additive to the current $0.9 million, for
those colleges with less than 2,000 FTE students. This additional funding,
meant to serve as a temporary (i.e. three-to-five year period) grant to these
institutions, will provide for a bridge of support as they work to grow their
enrollment and manage expenses.
o $2.5 million for a third round of Community School Grants
SUNY would ask that this funding be provided to support an additional five
community school grant recipients. Currently five colleges have been selected as
such, and are working to successfully provide vital services to improve student
success through targeted non-academic supports. With this additional funding,
Governor Cuomos Community Schools will double from five to ten programs, or
one third of SUNYs community colleges. This innovative program highlights New
York State as a national leader in providing critical support services to help thousands
of students complete their college goal.
o $0.5 million to support the over 1,100 parents and students served at the child care centers at
26 community colleges within the SUNY system.
Based on research specific to SUNY, the proliferation of child care opportunities
have been shown to increase student retention and completion rates.
o Other potential areas of direct state tax support investment that could benefit both the
community colleges and their students are included in the University-wide programs portion
of this request

Please note that this does not reflect the $14.8M that would be required to hold colleges harmless from the enrollment adjusted
funding numbers currently reflected in the States Mid-Year Financial Plan Update
21

Page 8 of 21

3. University-wide Programs22
A full listing of current University-wide programs is included as Attachment B. However, the table
below provides a summary of these programs by appropriated area and reflects a total of $26.5 million in
investment in our students:
2017/18 State University of New York (SUNY) University-wide Programs: Direct State Tax Support23
($M)

Area
Opportunity and Diversity Programs
Strategic and System-wide Resources
Student Loans and Grants

Total

2016/17 Enacted State

Budget
$95.4
48.2
12.7

Investment in
Students
$10.0
16.5
-

2017/18 SUNY Budget

As Requested
$105.4
64.7
12.7

$156.4

$26.5

$182.9

Policy Related Actions:

o SUNY has no recommendations for policy changes to the University-wide programs.
o However, the University would request that the proposed Hold Harmless provision apply to
not only the program funding levels themselves, but also include any incremental support
associated with negotiated salary increases.

Direct Funding Related Actions:

o SUNY proposes funding adjustments for the University-wide programs as follows:
Opportunity and Diversity Programs:
1. $10.0 million for the Educational Opportunity Program (EOP):
i. This support would continue the historic and continued investment
made by the State in EOP, providing expanded support, additional
student aid, and continuing to increase the number of students
potentially serviced by this essential program.
ii. In addition, SUNY requests that a portion of these requested funds be
used to expand opportunities for students in our community colleges.
Strategic Priorities and System-wide Resources:
1. $15.5 million to expand Student Opportunities in Research and Graduate
Education
i. These funds would be used to expand the current Empire Innovation
Program to focus on research efforts that solve state and global
challenges, as well as providing graduate students with additional
opportunities through stipends, assistantships, and additional research
opportunities that will also lead to benefits for our undergraduate
students.
2. $0.5 million in increased support for the Cornell Veterinary College, bringing
total support to $1.0 million.
3. $0.5 million to support the 300 plus parents and students served by the child
care centers at the 22 campuses which house these programs.

4. Statutory Campuses
Please note that additional base costs or investment being requested in the Linked Activities section would be in addition to the
values listed herein.
23
Please note that totals may not add due to rounding
22

Page 9 of 21

2017/18 State University of New York (SUNY) Statutory Colleges: Direct State Tax Support24
($M)

Area
Cornell
Alfred
Ceramics
Cornell
Cooperative
Extension

Total

2016/17 Enacted
State Budget
$121.1

Investment in
Students /
Programs
$2.8

Cost of
Operations
$2.4

Total Request
$5.2

2017/18 SUNY
Budget
As Requested
$126.3

8.1

0.3

0.3

8.4

4.5

0.5

0.5

5.0

$133.8

$3.3

$2.7

$6.0

$139.7

Funding Related Actions:

o Cornell
$5.2 million as follows:
1. $2.8 million for accessory instruction costs ($0.5 million) and new investment
in Instrumentation to Support Plant Metabolomics ($1.0 million),
Translational Research for Children and Families ($1.0 million), Employment
First Commission ($0.2 million), and New Yorkers with Criminal Records
($0.1 million).
2. $2.4 million related to salary and wages, utilities, and other facility expenses.
o Alfred Ceramics
$0.3 million representing a three percent increase related to utilities and salary /
wages
o Cornell Cooperative Extension
$0.5 million as follows:
1. $0.4 million for an expansion of the Harvest New York Program Initiative.
2. $0.1 million related to the statutorily guided formula for Cornell Cooperative
Extension sites.

5. State University of New York Teaching Hospitals, Long Island Veterans Home (LIVH), and Other
Healthcare Related Activity
2017/18 State University of New York (SUNY) Hospitals/Health: Direct State Tax Support25
($M)

Area
Hospital
Support
Debt
Service
Forgiveness
Medicaid
Rate
Adjustment

Total

2016/17 Enacted
State Budget

Investment in
Patient Services

Cost Avoidance

2017/18 SUNY
Budget
As Requested

Total Request

$87.9

$87.9

3.026

3.026

3.026

TBD

TBD

TBD

$87.9

TBD

$3.026

TBD

$87.926

24

Please note that totals may not add due to rounding

Please note that totals may not add due to rounding
26
$3.0M in cost avoidance is not additive to current levels of direct state tax support for the Hospital Subsidy
25

Page 10 of 21

Policy and Funding Related Actions:

o Investment in Patient Services: Adjustment to the SUNY Hospital Medicaid Rate
SUNY Hospitals currently receive a portion of their revenue (between seven percent
(Stony Brook) and 23 percent (Downstate)) from Medicaid.
To provide additional resources, and to lessen the out-year impact on the State's
Disproportionate Share (DSH) cap, SUNY proposes legislation that would provide
for a supplemental Medicaid reimbursement rate that recognizes SUNY's unique role
in the State in fee for service and managed care for inpatient services.
1. For every one percent increase in this prospective supplemental rate, the
hospitals would realize additional revenue as follows:
$1.0M: Upstate
$0.6M: Downstate
$0.6M: Stony Brook
$2.3M: Total
o Cost Avoidance: Forgiveness of Debt Service for Critical Maintenance Projects
Under hospital reform in the early 2000s, the three SUNY Teaching Hospitals were
required to pay the costs of their own fringe benefits as well as reimburse the State for
payment of debt service costs on capital improvements. In return, the State pledged
to provide an operating subsidy (generated by formula) that was intended to offset
some of the costs the Teaching Hospitals experienced by being part of the State.
This formula has not been followed in many years, and while the hospitals have
managed to continue operations, the lack of both sustained investment in their day-today activities and the availability of ultimately repaid borrowing authority have had
an impact.
Therefore, SUNY is requesting that the State waive the debt service costs in the
coming years related to those capital projects that have or will deal primarily with
critical infrastructure needs and projects required to address health and safety
concerns.

Attachment A (the Special Revenue Funds- Hospitals and other Healthcare Related Activities section)
reflects requested year-to-year self-generated revenue spending authority for the three teaching hospitals, as
well as for LIVH, for the 2017/18 academic year. Areas of interest include:
o $87.0 million in spending authority to facilitate the continued operations of the three
teaching hospitals, including the disbursement of anticipated revenue from all sources
(patient, State, and federal).
o $0.7 million increase to the spending authority of LIVH, to support continued operations and
an increase in the number of nursing staff.
o Re-appropriation of 2016/17 authority for hospital operations, including the university-wide
Income Fund Reimbursable (IFR) accounts, which will allow for the teaching hospitals to
continue to ensure patient safety and operations while operating under recent controls
instituted through the State Financial System.
o However, none of the numbers shown reflect any need for spending authority increases
related to either the recently announced PEF collectively bargained agreement, or other
salary agreements that may follow.

Page 11 of 21

6. Former Investment and Performance Fund

2017/18 State University of New York (SUNY) System-wide Initiatives: Direct State Tax Support27
($M)

Area
Investment
Fund

Total

2016/17 Enacted Budget

Investment in Students
and Programs

2017/18 As Requested

$18.0

$32.0

$50.0

$18.0

$32.0

$50.0

Policy Related Actions:

o The 2016/17 Enacted State Budget removed the distinction of these funds as an Investment
and Performance fund, instead leaving their use to the discretion of the SUNY Board of
Trustees
o Recognizing the intrinsic value to our students and operations to continue to provide funding
for programs and activities that will continue to transform the SUNY system, the Board of
Trustees voted in June 2016 to maintain this $18.0 million as the core of our Strategic
Allocation of Resources activities in the 2016/17 Academic Year, supporting our ongoing
Educational Effectiveness28 and Strategic Enrollment planning activities
o To maintain the benefits of both the 2015/16 Expanded Investment and Performance Fund
and 2016/17s Strategic Allocation of Resources, SUNY proposes that the State return the
explicit language on these funds, renaming and making permanent the SUNY Investment and
Performance Fund support
o In addition, to further recognize the important role played by the 30 community colleges
operating under the program of the State University, SUNY requests that the SUNY
Investment and Performance Fund be made available directly to these institutions
Funding Related Actions:
o $32.0 million in direct State tax support to expand the Investment and Performance Fund to a
total of $50.0 million to support ongoing investment in programs and initiatives generated by
SUNY institutions. This program, which is based on peer-reviewed proposals, has generated
many exceptional initiatives across the SUNY system.

7. Linked Activities: Additional Support

Recognizing the width, breadth, and complexity of the University system, the 2017/18 request includes a
representative sample of requests related to the operating needs of our University-wide programs such as the
Educational Opportunity Centers (EOCs) and Advanced Technology Training and Information Networking
(ATTAIN), Small Business Development Centers (SBDC), as well as the administration by SUNY of the
Voluntary Defined Contribution (VDC) program for the State of New York. SUNY will provide these separate
requests to the appropriate areas of the Legislature, and we ask that they be further shared with the appropriate
areas within the Governors Office and the Division of Budget (DOB).

27

Please note that totals may not add due to rounding

SUNYs current activities to ensure that it is delivering the educational programs that meet the educational goals of the students and
meet the educational needs of the State and nation
28

Page 12 of 21

2017/18 State University of New York (SUNY) Linked Activities Direct State Tax Request
($M)
Functional Area
Postsecondary Education / Economic Development
Postsecondary Education / Human Services
Postsecondary Education / Labor Relations

Requested New
Investment

Program
SBDC
EOC / ATTAIN
VDC Administration

$1.5
1.5
-

Total

$3.0

Postsecondary Education / Economic Development

Small Business Development Centers (SBDC)

o $1.529 million in direct State tax support as follows:
$0.6 million to match federal support in pursuit of the expanded education and
support of small businesses in addressing cyber security concerns.
$0.5 million to support the hiring of serial entrepreneurs associated with technology
start-ups who will work with SBDCs Accelerator Team to move these start-ups more
swiftly to commercialization.
$0.3 million to support continued and expanded Minority and Women Owned
Business (MWBE) contractor training.
1. This support is currently provided through a grant from the Empire State
Development Corporation (ESDC), but could be run more efficiently as direct
state tax support to SBDC
2. Moving this funding from ESDC to SUNY would result in no additional cost
to the State.
$0.2 million to support services to the veteran community. The support will expand
the dedicated Veteran Business Advisor deployment to assist transitioning military
back to civilian opportunities and entrepreneurship building upon the award winning
programs of the SBDC and SUNY.

Postsecondary Education / Human Services

29

Educational Opportunity Centers and ATTAIN

o $1.8 million total ($1.5 million direct state tax support / $0.3 million federal funds) as
follows:
$1.0 million in direct state tax support to increase access at the ATTAIN Labs.
1. ATTAIN has continued to serve populations without access to technology
tools, computers, and the internet, serving the most economically challenged
families within New York State.
2. These requested funds would aid in expanding the labs current self-paced,
occupational, academic, life skill and self-development courses as well as
Microsoft certifications to a larger audience.
$0.5 million in direct state tax support to fund ongoing costs related to lease
escalations and other facility costs at the Educational Opportunity Center facilities, as
well as retroactive salary costs at City University of New York (CUNY) hosted
EOCs for Processional Staff Conference (PSC) and DC-37 employees.

Totals may not add due to rounding

Page 13 of 21

1. In addition, while it is not funded by direct state tax dollars, SUNY also
requests $0.3 million in federal Temporary Assistance for Needy Families
(TANF) funding to pilot an enhanced service model for opportunity labs,
expanding instructors and case managers to the current support provided at the
ATTAIN labs.
While not financial in nature, SUNY would also propose minor changes to the
appropriation language supporting this program, which will aid in helping the EOC
Centers and ATTAIN Labs in doing their part to increase completion and student
success.

Postsecondary Education / Labor Relations

Administration of the States Voluntary Defined Contribution (VDC) Program

o While no new funding is requested, SUNY is proposing that the $0.5 million in direct state
tax support provided in 2016/17 for workforce needs and travel related to SUNYs
administration of this program on behalf of the State be continued.

Page 14 of 21

2017/18
CAPITAL BUDGET REQUEST
Building on the themes contained in the Operating Budget Request, the Capital Budget Request also
focuses on Student Success and Achievement by investing in the physical environment necessary to provide
students with an overall, excellent college experience. Modern and well-designed buildings and classrooms are
essential to achieving the high performing learning environments necessary for todays students and future
generations to succeed. Evolving methods of teaching and learning, based in technology require investment in
state-of-the art buildings to support the education and career advancement of hundreds of thousands of current
and future students, solidifying the intellectual capacity of the State. Pleasing and modern campuses also
enhance national recognition of SUNY as a premier educational system.
2017/18 Capital Plan and Request
(in millions)
2017/18
1-Year
Request

Program*
Educational Facilities
Hospitals
Community Colleges
Residence Hall
Total

*
**

1.

5-Year
Request**

5-Year
Plan Need

Appropriation Type

$800.0

$4,000.0

$5,000.0

Bonded

600.0

600.0

600.0

Bonded

81.5

401.5

401.5

Bonded, 50% State Share

0.0

200.0

200.0

Hard Dollar, Self-Pay

$1,481.5

$5,201.5

$6,201.5

Request includes re-appropriations totaling $3.4 billion in support of all four programs.
The five-year requested amount will be reviewed annually to ensure sufficient funding is in place
to address essential campus capital needs.

Educational Facilities

SUNYs State-operated campuses account for 40 percent of all state-owned assets, with 1,885 academic
buildings covering 65 million gross square feet. Nearly half of these buildings were constructed between 1965
and 1975, and the average age of all academic buildings is now 46 years. An aging physical plant of this size
requires continuous investment to reduce the deferred maintenance backlog, achieve a good state of repair,
ensure student safety, modernize facilities, and provide the state-of-the-art technology and buildings.

$4.0 billion over five years provides an annual investment of $800 million, and will largely address
SUNYs critical maintenance needs at 32 State-operated campuses and statutory colleges. While
funding for critical maintenance continues to be SUNYs highest capital priority, additional
investment is also requested to provide adequate funding to modernize and construct facilities to
meet the growing demand in certain program areas, sustain enrollment in SUNYs largest degree
programs, assist the University in its ongoing student recruitment and retention efforts, and to ensure
student success. More specifically, investment is necessary to:
o Maintain campus operations by investing in critical infrastructure, utilities and building
systems;
o Ensure the safety of students, faculty, staff and visitors;
Page 15 of 21

o Comply with current building codes, energy standards, and other requirements, such as
accessibility for the disabled;
o Enable projects in the design phase to advance to construction;
o Upgrade laboratories, classrooms and libraries to meet evolving standards of teaching and
learning;
o Promote student success by renovating or expanding facilities to provide collaborative
learning environments and co-locating student academic support services; and
o Enhance student recruitment and retention by investing in facilities and spaces that support
the total student experience, such as student activity spaces, student unions, as well as
athletic and recreational facilities.
The SUNY State-operated campuses and statutory colleges have identified project needs over the
next five years that support a $4.0 billion request as detailed in the following table:

The requested annual amount of $800 million continues to reflect a need of at least $600 million
annually for critical maintenance projects, and $200 million annually for the adaptive reuse of
existing facilities and, to a lesser extent, new construction for a total five-year amount of $4.0
billion.
The $600 million annual critical maintenance need reflects a net increase of $400 million over the
planned annual level of $200 million (through 2020/21) for critical maintenance that is currently
included in the States Five-Year Capital Program and Financing Plan.
o This request also recognizes the States limited capacity to issue new debt under the caps
imposed by the Debt Reform Act of 2000, and is consistent with the States 2017/18 budget
call letter that directs agencies to submit capital budget requests that can be accommodated
within currently planned bonding limits in the States Five-Year Capital and Financing Plan.
Priority projects in each of the various categories of funding requested would be selected based on a
plan developed by the State University, with support from the State University Construction Fund,
Page 16 of 21

and subject to the approval of the Director of the Division of the Budget, or designee. Priority
consideration would be given to:
o First and foremost, to critical maintenance projects that:
Address health and safety concerns
Repair and replace infrastructure, utilities and other systems that could significantly
impact campus operations if not addressed, and
Upgrade buildings and infrastructure to meet current building codes and regulations,
such as the Americans with Disabilities Act (ADA), and assist in meeting the goals of
Executive Order 88.
o Projects already in progress that require additional funding to advance to construction
o Projects that progress campus strategic business, research and academic plans
o Projects that enable a campus to increase competitiveness
o Projects advanced by campuses that have demonstrated excellent stewardship in maintaining
existing facilities and infrastructure over the course of the previous enacted multi-year capital
plan by aggressively addressing and reducing backlog
o Projects in line with the campus long-range Facility Master Plan.
Redirect $8.0 million for two appropriations originally provided in 2008 for Binghamton University
to support the renovation of a former manufacturing facility at 48 Corliss Avenue in Johnson City
for the Decker School of Nursing. The original appropriations, $5.0 million for new athletic fields
and $3.0 million for a programming study related to establishing a Law School at Binghamton
University, are no longer campus priorities.
Redirect $5.25 million for two appropriations originally provided in 2008 for Stony Brook
University to support various building system upgrades and laboratory renovations. The original
appropriations, $5.0 million for a monorail feasibility study and $250,000 for a feasibility study
related to establishing a Law School at Stony Brook University, are no longer campus priorities.

2. Hospitals
Capital investment is crucial to ensure that the three SUNY teaching hospitals can sustain their $2.5
billion operation, which include more than 1,680 licensed beds, more than 270,000 emergency room visits, and
nearly one billion outpatient visits every year.

$600 million to support the vital long-term planning and capital funding needs of SUNYs teaching
hospitals. The $600 million requested for 2017/18 would support $500 million in funding for Stony
Brook and Upstate Medical University ($250 million each) to address critical maintenance needs and
advance a number of renovation and major rehabilitation projects essential to each hospitals
business plan, subject to the Department of Health Certificate of Need requirements. An additional
$100 million is requested to continue recent progress made in addressing critical infrastructure and
utility projects at Downstate, and provide funding to facilitate continuous planning of projects vital
to the future sustainability of Downstate, which is located in a highly competitive marketplace.
o It is essential that additional funding is secured to maintain safe and modern facilities that
limit exposure to illness, ensure patient safety, and meet accreditation requirements. Stony
Brook and Upstate Medical Center received $50 million each in the 2016/17 State Budget.
While sufficient to advance critical projects this fiscal year, additional funding is needed to
address critical health and safety needs or progress projects to ensure the long-term success
of the hospital in the evolving health care sector.
o The $100 million requested for Downstate would provide additional funding to continue to
address significant capital needs at the academic and hospital complex. Currently, there are a
number of active projects, valued at $175 million, to repair and replace aging infrastructure
and utilities, including electrical power, boilers, sprinkler systems and other heating and
Page 17 of 21

cooling systems. However, much more needs to be done in the next several years to address
the sizeable level of deferred maintenance at Downstate and to provide the support necessary
to transform Downstate into a state-of-the art medical, teaching, and research facility.
o Recognizing that critical maintenance projects are essential to ensuring patient safety, and
vital to the continuing operations of the hospitals, the SUNY hospitals should be encouraged
to continue to address their critical infrastructure needs. Therefore, as referenced in the
Operating Budget Request section, a waiver from the current debt service obligation is
requested for these types of projects, particularly as critical infrastructure and utility projects
do not generate additional revenues.
o Due to the continuously evolving health care sector, hospital capital needs will be reviewed
annually, with additional amounts to support essential projects requested as necessary.
3. Residence Halls
Currently, there are 485 residence halls supported through SUNYs Residence Hall program that include
more than 72,000 beds, of which 96 percent are currently occupied.

$200 million in hard dollar, or pay-as-you-go, support for five years is requested to support small
maintenance and repair projects. Existing appropriations are sufficient to meet projected need in
2017/18; the $200 million reflects the remaining estimated need for the subsequent four years. The
Residence Hall program was restructured in 2013/14 to eliminate the need for future capital bonded
appropriations, with future debt issuances eliminated from the State debt cap calculations. Although
the restructuring of the program provided significant relief to the State under the constraints imposed
by the debt caps, the benefit did not accrue to SUNYs remaining bond-financed capital programs.
o While the bond-financed portion of this self-supporting program, financed by students room
rents, is no longer subject to the annual State budget process, the existing bond limit of $944
million established for the program is sufficient to meet the $344 million issued through
2015/16 and the $590 million in additional bonds needed as reflected in the most recent
campus capital plan. Additional bonds of $150 million are scheduled to be issued in 2016/17
to finance new and existing capital projects.

4. Community Colleges
The State supports half of the capital costs for community college capital projects, with the other half
funded through the local sponsor to maintain and upgrade more than 500 buildings covering nearly 20 million
gross square feet. This years capital request represents a continued multi-level strategic effort to ensure that
facilities are in good working condition, and that the colleges have appropriate academic facilities and spaces
for student services. Each college performs long-range master planning for facilities and evaluates annual
capital activities based upon building conditions and operational needs in coordination with local funding
resources which fund 50 percent of project costs.

$81.5 million is requested for 2017/18, which represents the 50 percent State share of projects
identified and planned by the community colleges. Local sponsors must commit to provide local
matching funds and provide necessary documentation prior to projects being considered for
inclusion in the State budget.
o 23 colleges are requesting funds to advance $53 million for 57 critical maintenance/safety
and infrastructure projects and $28.5 million for 7 projects related to new academic program
needs.
Page 18 of 21

o An additional $320 million will be needed over the subsequent four-years of the five-year
capital plan to support long-term plans, which address critical maintenance, health and safety
needs, as well as renovations and several new facilities that incorporate changing academic
needs. Funding for future projects will be contingent on the college securing local support
from the sponsor.

Page 19 of 21

Page 20 of 21

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