November 16, 2012
To: Members of the Comprehensive Financial Monitoring Task Force
From: John Wall
The Department closed FY2012 with a total agency-wide surplus of $7.5 million against the final modified budget. Please refer to page 14 for an overall view of the Department’s ending fiscal condition.
Since the submission of the May FSR, there have been several key updates to the Department’s operating budget, most of which were reflected in the Executive and Adopted Financial Plans. Below is an outline of the funding sources affected by the Financial Plans and the closing process.
FY2012 Operating Budget - Major Adjustments
a. City – Reduction of City funds totaling ($44.2) million, which primarily includes adjustments to Heat, Light & Power and Fuel Oil ($36.5m.) The balance of the tax-levy decrease is mainly associated with projected expenditure levels associated with the Summer Mandated Program and Miscellaneous Fees.
b. Federal – Net decrease in Federal revenues of ($124.1) million which includes the following:
§ ($80m) reduction in Medicaid funds;
§ ($39.7m) reduction in Title I ARRA School Improvement Grants;
§ ($12.8m) adjustment to Race to the Top grants to reflect year-end expenditure levels;
§ $27.1m increase associated with School Food revenues;
§ ($18.7m) reduction in other Federal categorical revenues.
c. State – Net State revenue reductions of ($80.5) million which include the following:
§ ($45m) adjustment to Pre-School Special Education revenue based on year-end expenditure projections;
§ ($25m) adjustment in anticipated reimbursement for the Summer Mandated Program;
§ ($10.5m) of adjustments to various categorical and unrestricted fund sources.
d. Other Categorical – Adjustments to Other Categorical revenues of $86.2 million, of which $121.5 million is associated with Pollution Remediation Obligations (GASB 49.) This adjustment was reflected in the DOE’s expense and revenue accounts during the FY2012 closing process. Additional details regarding this stipulation may be found on the following link:
The balance of the adjustments, totaling ($35.3m,) is associated with other private funding sources as reflected in the enclosed revenue report.
Dennis M. Walcott Chancellor’s Senior Staff Division of Financial Planning & Management Senior Staff
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