MEMORANDUM IN SUPPORT

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

AN ACT to amend chapter 53 of the laws of 2008 making appropriations for the support of government

Purpose: This deficiency appropriation bill amends Chapter 53 of the Laws of 2008 which made appropriations for the 2008-09 fiscal year, to meet essential obligations for which funding was not provided in the enacted budget.

Summary of Provisions:

Section 1 amends the 2008-09 Education, Labor and Family Assistance Budget as follows:

STATE EDUCATION DEPARTMENT

The recommended deficiency for the Federal Medicaid Offset allows a decrease of $23 million in 2008-09 General Fund appropriation authority for School Supportive Health Services (SSHS) due to an unanticipated increase in the Medicaid offset for SSHS. The increased Medicaid revenue results in a decrease in General Fund Support for SSHS.

The recommended deficiency for the State Lottery Fund increases the 2008-09 Special Revenue Funds appropriation in the Aid to Localities account by $32.1 million, reflecting additional unanticipated Lottery revenues. Since Lottery revenues offset General Fund School Aid spending, this deficiency would also decrease the General Fund appropriation for General Support of Public Schools (GSPS) by the same $32.1 million.

DEPARTMENT OF LABOR

The recommended deficiency for the Unemployment Insurance (UI) Benefit program increases the UI Benefit-Enterprise appropriation by $1 billion to accommodate significant increased program spending resulting from the economic downturn and from Federal legislation which has been enacted granting an additional 20 weeks of UI benefit eligibility for claimants who have exhausted the normal 26 week benefit period. This additional $1 billion appropriation in the $3 billion UI Benefit-Enterprise fund is supported by taxes on employers, and has no impact on the financial plan.

Section 2 provides that the bill shall take effect immediately and be deemed to have been in full force and effect on and after April 1, 2008.

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 2008-09 fiscal year for which no appropriations currently exist.

Budget Implications: The provisions of this bill are accommodated in the current Financial Plan for 2008-09.