Savings Initiatives – Other Savings

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Outside of health care, other enacted savings include reducing certain State aid to New York City, instituting strict controls on spending by State agencies, enhancing savings opportunities in the State’s debt management, and maximizing Federal aid.

All Other Savings Plan
(millions of dollars)
	2007-08		2008-09
	Executive Proposal	Enacted Budget	Executive Proposal	Enacted Budget
Local Government Aid	306	279	267	0
Economic Development	209	209	96	94
Social Services/Labor	165	135	139	108
Public Safety/Homeland Security	109	85	113	58
Education/Arts	54	54	64	64
Environment/Energy	50	28	40	18
Transportation	43	43	176	176
Debt Service	40	40	43	43
Higher Education	35	35	60	60
STAR Rebate	0	0	675	675
VLT Expansion	0	0	150	150
All Other	51	51	35	35

Total General Fund Savings	1,062	959	1,858	1,481

The key Enacted Budget actions include the following initiatives:

Local Government Aid: Restructure local government aid to significantly increase aid to distressed municipalities over four years and reduce Aid and Incentives to Municipalities (AIM) funding to New York City in 2007-08 only.

Economic Development/Regulation: Generate savings from increasing New York City's tax processing assessment, and reducing certain economic development initiatives. It also includes a sweep of excess funds from the State of New York Mortgage Agency (SONYMA).

Social Services/Labor: Increase the amount of the Temporary Assistance for Needy Families (TANF) public assistance offset through proposed reductions in the TANF funded commitment to several operational programs and several 2006-07 initiatives. In addition, a one-time transfer of $16 million will be made from Department of Labor interest assessment account funds to the General Fund, and the rates charged to local governments for youth in the Office of Children and Family Services (OCFS) facilities will be adjusted to reflect actual costs and to reconcile prior-year billings.

Public Safety/Homeland Security: Improve the parole violation process and continue State Operations efficiencies to generate savings. In addition, savings are generated by using non-General Fund resources to fund State Police public safety communications projects and certain Department of Criminal Justice Services (DCJS) programs.

Education/Arts: Includes funding for educational accountability initiatives, as well as increases for public libraries and public broadcasting.

Transportation: Includes savings from the transfer of transit operating assistance from the Metropolitan Mass Transportation Operating Assistance Fund (MMTOA) to PTOA rather than from the General Fund to PTOA, and reducing General Fund transfers to the Dedicated Highway and Bridge Trust Fund (DHBTF).

Debt Service: Savings are expected from an increase to the interest rate exchange and variable rate caps from 15 percent to 20 percent of debt outstanding, increased refunding opportunities from consolidated structures, and increased efficiencies in the bond sale process. In addition, $250 million is appropriated to reduce high-cost debt, which will lower future debt service costs.

Higher Education: Tuition Assistance Program (TAP) reforms have been enacted to promote the wise investment of taxpayer funds and more effectively determine TAP eligibility, including the use of an ability to benefit test that is approved by the Commissioner of Education.

STAR Rebate: The existing STAR Property Tax Rebate program is replaced by the new middle class STAR rebate program.

Video Lottery Terminal (VLT) Expansion: Legislation to authorize the expansion of a number of VLT facilities is expected to be enacted during the current legislative session and will generate additional revenue to support school aid funding.

All Other Savings: Includes State Operations savings, primarily in non-personal service costs (part of a statewide total of $85 million in non-personal service savings).

Health Care

Revenue Loophole Closers

NOTE: The information on this page is taken from the 2007-2008 Financial Plan.

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