MEMORANDUM IN SUPPORT

A BUDGET BILL submitted by the Governor
in accordance with Article VII of the Constitution

AN ACT to amend chapters 53 and 55 of the laws of 2007 making appropriations for the support of government

Purpose: This deficiency appropriation bill amends Chapters 53 and 55 of the Laws of 2007 which made appropriations for the 2007-08 fiscal year, to meet essential obligations for which funding was not provided in the enacted budget.

Section 1 amends the 2007-08 Education, Labor and Family Assistance Budget as follows:

COUNCIL ON THE ARTS

The recommended deficiency for the Council on the Arts adds a 2007-08 Special Revenue - Other appropriation of $2.6 million to the New York State Theatre Institute program. This appropriation is necessary to charge retroactive and current-year fringe benefit and indirect costs for employees of the New York State Theatre Institute; the retroactive payments will cover 2005-06 and 2006-07. These expenses are supported by revenues deposited into the State Education Department's Cultural Education Account. This account assumed responsibility for these costs when the Institute was shifted to Cultural Education Account funding in the 2005-06 budget, but to date no appropriations have been provided for this

STATE EDUCATION DEPARTMENT

The recommended deficiency item for the State Education Department provides an additional $50.2 million in 2007-08 General Fund appropriation authority to compensate for projected shortfalls in funding for school districts claiming School Supportive Health Services (SSHS).

MISCELLANEOUS — ALL STATE DEPARTMENTS AND AGENCIES

This recommended deficiency item provides an additional $8 million 2007-08 General Fund appropriation in the local assistance account for the Roosevelt School District to eliminate an accumulated deficit currently estimated at that amount.

Section 2 amends the 2007-08 Transportation, Economic Development and Environmental Conservation Budget as follows:

ENVIRONMENTAL FACILITIES CORPORATION

This recommended deficiency for the Environmental Facilities Corporation (EFC) increases the 2007-08 Capital Projects Fund appropriations in a new Air Resources Program by $4.4 million. The $4.4 million is necessary to fund the Environmental Farm Assistance and Resource Management (EFARM) Program. This program was originally charged to the 1996 Clean Water/Clean Air Bond Act. Under Debt Reform, these charges are no longer bondable and all previous disbursements and currently committed projects will therefore be charged to the hard dollar deficiency appropriation.

Section 3 provides that the bill shall take effect immediately and be deemed to have been in full force and effect on and after April 1, 2007.

Existing Law: This is a new bill.

Statement in Support: Enactment of this deficiency appropriation bill is necessary to provide funding for liabilities occurring in the 2007-08 fiscal year for which no appropriations currently exist.

Budget Implications: The provisions of this bill are accommodated in the current Financial Plan for 2007-08.