November 16, 2010
To: Members of the Comprehensive Financial Monitoring Task Force
The Department is pleased to report that it closed FY2010 with a tax-levy surplus of $1.9 million against the final modified budget. Please refer to page 13 for an overall view of the Department’s ending condition.
Since the release of the May FSR, there have been various significant updates to the DOE’s operating budget, most of which were reflected in the January, Executive and Adoption plans. Below is an outline of the major changes included in the Financial Plans by funding source.
· Operating Budget
(a) Reduction of City funds totaling ($237) million, which primarily includes ($113.2) million of Programs to Eliminate the GAP (PEGs) and ($124.2) million of collective bargaining funds rolled to FY2011;
(b) Increase in Federal revenues of $178.2 million which includes a $129 million increase to the ARRA Supplemental Deficit Reduction Program (SDRA,) which transferred funds from FY2011 to FY2010 to fill a gap in State Aid.
(c) Adjustments to Other Categorical revenues of $174.5 million, of which $170.9 million is associated with Pollution Remediation Obligations (GASB 49.) This adjustment was reflected in the DOE’s expense and revenue accounts during the closing process. Additional details regarding this stipulation may be found on the following link: http://schools.nyc.gov/offices/d_chanc_oper/budget/dbor/fsr/October/PDF/
(d) State revenue reduction of ($106.6) million which primarily consists of a State Aid gap of ($129) million as announced in December 2009. Federal ARRA funds were shifted from FY2011 to FY2010 to cover this funding shortfall.
The next FSR, scheduled to be released in December, will include a summary of the November Financial Plan.
|c:||Joel I. Klein Chancellor's Senior Staff Division of Financial Planning & Management Senior Staff|
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