2020-21 Operating and Capital Budget Request

STATE UNIVERSITY OF NEW YORK 2020/21 OPERATING AND CAPITAL BUDGET REQUEST Page of 24 2020/21 BUDGET REQUEST Executive Summary The State University of New York (SUNY) presents its 2020/21 budget request to the State of New York on behalf of its 29 State-operated Campuses, 30 Community Colleges, five Statutory Colleges, three Hospitals, a Department of Energy National Laboratory, 90,000 staff, myriad programs, and over one million students these institutions serve This request aligns with New York State’s priorities as outlined in the 2020/21 Budget Call Letter and represents a sound investment for the State given SUNY’s ongoing track record in being fiscally responsible and returning a verifiable value for the State; $8.17 returned for every one dollar invested by the State As SUNY approaches its 75th anniversary in 2023, it is important both to commend the investment made by the State of New York in public higher education, and to recognize the significant return on this important investment, an impact that goes beyond financial: One-third of all New Yorkers with post-secondary education have graduated from the State University of New York SUNY has been recognized nationally for its high ranking in the social mobility index: The SUNY Stony Brook campus is ranked #1 among all public universities and 17 SUNY colleges and universities are in the top 10 percent of institutions in propelling students from poverty to prosperity Just one SUNY campus serves more low-income students than the entire Ivy League, all eight universities, combined On December 10, 2019, one of SUNY’s brightest lights, Binghamton University Distinguished Professor Dr M Stanley Whittingham, received the 2019 Nobel Prize in Chemistry, in Stockholm, along with colleagues Dr John Goodenough and Dr Akiro Yoshino • • • • Dr Whittingham’s discovery and 31 years of technology development is one of the primary reasons we will be able to meet Governor Andrew Cuomo’s inspiring executive orders, and the Community and Climate Protection Act, and just possibly stave off catastrophic climate chaos Hence there is a special significance to this Prize at this particular time Recent years have seen these investments in higher education and SUNY continued and championed by Governor Andrew Cuomo, most notably with the Excelsior Scholarship program ensuring – in partnership with the nearly $1.0 billion from the Tuition Assistance Program (TAP) - tuition free attendance for over 210,000 SUNY and CUNY students Additionally, the NY-SUNY 2020 Act enabled investment and improvement in academic programs and infrastructure for all students As SUNY approaches 75 years, support in 2020/21 will build upon previous successful investments and will transform SUNY for the 21st Century Additional support in 2020/21 will: • • Provide the highest quality 21st Century education through a robust TAP program; Rejuvenate curriculum, 3,000 classrooms and 3,000 laboratories to ready students for jobs now and in the future in healthcare, information technology (IT), machine learning, data analytics, cyber security, advanced materials, renewable energy, and high-density battery storage; and https://www.suny.edu/about/fast-facts/ 2018 The Economic Impact of the State University of New York, Rockefeller Institute of Government The Equality of Opportunity Project, “Top Colleges by Mobility Rate” Available at http://www.equality-of-opportunity.org/college/ 2018 Social Mobility Index, Opportunity Through US Higher Education, CollegeNet, Inc, published 2018 Available at: https://www.socialmobilityindex.org/ Page of 24 • Enable instructional innovation, building infrastructure for SUNY Online, providing the broadest access in individualized learning for all students, traditional and non-traditional Transformation is needed to position New York State as a leader in the emerging 21st Century economy, supported by SUNY As illustrated in the charts below, SUNY is compelled to evolve its curriculum and instruction to meet the shifting interests of students, to provide an education which is relevant in the 21st Century, to close the skills gap for employers, and to provide adult learners with access to needed education Enrollments at SUNY in the past decade have grown in the more highly technical areas Curriculum is being developed to meet this growth and to integrate the liberal arts Additional support is required to make this transformation Job openings in New York between June to September 2019 in healthcare, data science, and business and/or economics were each at the 90,000 level New York is seeing a higher number of adult learners, who are seeking higher education for job opportunities, and degree programs directly aligned to workforce maintenance, advancement, and higher compensation Source: Job Postings Table, Emsi Q3 2019 Data Set, New York: October 2019 Page of 24 In this advanced, technological age, higher education is the only path out of poverty and into prosperity SUNY is committed to securing and providing the resources required to transform higher education in order to respond to changes in student demand and skill requirements, while continuing to deliver excellent, relevant, higher education broadly available to all New Yorkers SUNY seeks to invest in its core support needs and realize synergies with current and ongoing cost-saving initiatives For the State-operated Campuses of the SUNY System, SUNY estimates that an infusion of $25 million of additional core support (matched by $25 million from SUNY wide synergies and campus reserves) and continuation of the generous support provided in the 2019/20 Enacted State Budget will bring about this success, with slight adjustments as noted below to 2019/20 levels: - - - Continue 2019/20 Enacted Budget support levels for all appropriated programs such as the Performance Investment Fund, the Educational Opportunity Program, the Educational Opportunity Centers, ATTAIN, the Small Business Development Centers, and statutory college support; and work with SUNY during the legislative process to find available avenues to ensure these exceptional and proven programs are properly funded to meet the needs of their respective missions and populations; Continuation of the much-needed update to the State funding model for Community Colleges, with additional investment through ensuring that each college receives the benefit of an enrollment increase at $3,047 per fulltime equivalent (FTE) student 6or 100 percent of the most recent year’s funding, whichever is higher; Providing, at no cost to the State, support for the second and final retroactive salary increase at State-operated institutions and hospitals through a second acceleration of Direct State Tax Support; and Allow for the three SUNY hospitals to reinvest in their operations by removing the requirement of repayment for capital improvements These operating investments will need to be supported by a strong capital infrastructure To ensure this, SUNY is requesting capital investment in our classrooms, labs, and other facilities as follows: Allow new capital construction facilitated by a 2:1 matching program with the State ($2.00 from the State matched with $1.00 from the Campuses); Support for Critical Maintenance and Energy Efficiency Needs; Capital investment in the three SUNY hospitals; and Increasing Base Operating Aid per FTE by $100 from the Enacted $2,947 Page of 24 - Maximizing local sponsor investment by matching those Community College projects that have received a local sponsor match SUNY will seek to invest in its core needs and realize synergies with current and ongoing cost-saving initiatives SUNY is committed to securing and providing the resources required to continue to deliver an excellent and affordable public higher education that meets the needs of the 21st Century, enabling student mobility from poverty to prosperity Rest of Page Intentionally Left Blank - Page of 24 State University of New York (SUNY) 2020/21 Request Summary Transforming SUNY for the 21st Century - Keeping SUNY Affordable and Accessible While Maintaining Excellence and Relevance • State-operated Campuses: Increase of net $25 million Core Support for Student Financial Aid, Curriculum Rejuvenation and Instructional Innovation  These funds will both maintain the quality of a SUNY education and address the demands of students and the NYS workforce  These funds will be matched by an additional $25.0M in offsets by SUNY and its campuses State-operated Campuses: Acceleration of $67.7 million (net zero impact to the State) to support the final round of one-time costs associated with the implementation of the much deserved United University Professions (UUP) salary agreement; Community Colleges: +$3.8 million (Academic Year basis from Budgeted levels) For a 100% Floor for Base Operating Aid:  This proposal provides the SUNY Community Colleges with much needed stability and investment while also recognizing the importance of enrollment in their operations by setting a steady funding “floor” of the higher of either 100 % of most recent funding levels or the level of funding provided by a an increase of $100 in the per student funding of $2,947 provided in 2019/20, whichever is greater; Hospitals: Allow the Hospitals to Reinvest in their Operations and Continued Support for Federal Reimbursement:  SUNY requests that the State allow the Hospitals to both reinvest in their own operations and realize the full value of Federal reimbursement for their operating losses in prior years All Other Parts of SUNY: Maintain 2019/20 Levels of Support • • • • • • $200.0M 1-Year / $1,000.0M 5-Year: State Share of Capital Matching Program to Meet Strategic New Construction Needs $650.0M 1-Year / $3,250.0M 5-Year: State-operated and Statutory Campuses – Base Critical Maintenance $150.0M 1-Year / $ 750.0M 5-Year: Hospitals, including $50.0M for asset renewal, critical maintenance needs at Downstate $200.0M 1-Year / $ 600.0M 5-Year: Spending Authority Allowing for Campus Capital Matching Program and Other Needs (new capital) $ 75.0M 1-Year / $ 300.0M 5-Year: Self-Supported Residence Halls $ 60.5M 1-Year / $ 302.5M 5-Year: Community Colleges - State Match for 20 Community Colleges • • • • Capital Budget: Additional Support Operating Budget Request Detailed Submission The 2020/21 request utilizes the 2019/20 Enacted Budget as a base, respectfully requesting the State to continue to invest in the levels of Direct Support for Operations, Programs, and Initiatives as was included in the final enacted budget In addition, SUNY continues to appreciate and value the State’s significant investment in the Indirect Costs of the SUNY System, including employee benefits and debt costs related to capital improvements SUNY presents the following request for support that will ensure the success of the SUNY System for the 2020/21 academic year and beyond In addition, information is provided on the level of spending authority required by our State-operated campuses, teaching hospitals, and the Long Island State Veterans Home (LISVH) to utilize their own self-generated revenue Information on SUNY’s 2020/21 Operating Budget Request is summarized in the table below for the entire SUNY system Area State-operated Campuses Community Colleges University-wide Programs Statutory Campuses Hospitals and Other Health Related System-wide Activities Grand Total 2019/20 Enacted State Budget $708.0 478.2 157.7 133.2 22.0 $1,499.2 Core Spending Authority Need Associated with Keeping SUNY Affordable While Maintaining Excellence $25.0 3.8 0 10 $28.8 2020/21 SUNY Budget as Requested $733.0 482.0 157.7 133.2 22.0 $1,527.9 The appropriation needed is $25 million, although the support needed is $50 million The support for this increased operational level could originate from multiple sources, including partnerships with the State, philanthropic organizations, and / or offsetting cost savings The $25 million investment will be enhanced by $25.0M in offsets from SUNY and its campuses Academic Year Value on an approved Budget basis Excludes Disproportionate Share (DSH) Reimbursement Match 10 Not shown as an increase, but instead would be the negation of the annual “sweep” of Hospital Operating dollars Page of 24 State-operated Campuses Specifics: To transform SUNY, to maintain affordability and access, and to enhance the excellent level of education, SUNY seeks an increase in the direct core operating support for the State-operated campuses This increase will be matched by leveraging relationships with philanthropic organizations, redirection of savings via SUNY’s cost savings proposals or actions or other activities This bold investment in SUNY operations will be additionally supported by continuing 2019/20 levels of Direct State Tax Revenue for all campuses and System Administration Additionally, SUNY requests that the State provide limited financial relief to the System by accelerating – at no cost to the State - $67.7 million in Direct State Tax Support to handle the last installment of one-time and extraordinary costs related to the well-deserved UUP contract Policy Related Actions are listed below: • Continuation of Maintenance of Effort o With only limited interruption since it’s 2011/12 Enactment, the “MOE” agreement between the State of New York and SUNY has stabilized the nation’s largest comprehensive public university system, enabling investment in student success, economic and intellectual development, and programmatic advancement o SUNY requests the language passed in the 2017/18 Enacted Budget be continued and remain untouched, with the potential exception of extending the protections provided by this key legislation to the annual investments made in our critically important programs such as the Educational Opportunity Program (EOP), Educational Opportunity Centers (EOCs), Statutory Colleges, and the Small Business Development Centers (SBDC) Finally, Attachment A reflects (in both the Special Revenue Funds – Other section and the Fiduciary, Internal Service Funds section) the year-to-year spending authority needs of the State-operated campuses for dormitory operations, fee supported activities, and other academic program needs Community Colleges Specifics: 2020/21 State University of New York (SUNY) Community College Request: Direct State Tax Support 11 Area Base Aid 13 Rental Aid Job Linkage Family Empowerment Apprentice SUNY Child Care Contract Courses High Needs Program Low Enrollment Orange CC Bridges Total 2019/20 Enacted State Budget 12 $450.9 11.6 3.0 3.0 3.0 2.1 1.9 1.7 0.9 0.1 $478.2 ($M) Requests Associated with Stability $3.8 0 0 0 0 $3.8 2020/21 SUNY Budget As Requested $454.7 11.6 3.0 3.0 3.0 2.1 1.9 1.7 0.9 0.1 $482.0 Please note that totals may not add due to rounding Appropriate re-appropriations not shown and are assumed to be continued Figures shown on an Academic Year basis (September to August) as budgeted 13 Also known as Base Operating Aid 11 12 Page of 24 o $3.8 million (New Investment on a year-to-year basis 14) to transform SUNY, support a Stable Level of Operations:  This proposal would build upon the 2019/20 Enacted Budget which provided for the first change in the methodology used by the State to fund the SUNY Community Colleges since the early 1970s This change, utilizes a floor concept for funding, which helped ten (10) SUNY Colleges avoid $2.8M in reduced State investment, is the starting point to allow for stability and better planning in College operations while still recognizing the long-standing enrollment component of the State funding model • Under SUNY’s 2020/21 proposal, this change would continue and be adjusted to allow each College to benefit from either 100 percent (versus 98 percent) of the prior year’s funding level or the increased funding provided by enrollment levels supplemented by a $100/FTE increase to Base Operating Aid per student State University of New York Teaching Hospitals, Long Island Veterans Home (LIVH), and Other Healthcare Related Activity Specifics: • $46.8 million (Negation of Annual Hospital Fund Sweep) for Investment in State-owned Health Care Facilities o SUNY's three teaching hospitals have, since 2000/01, operated under a slowly fracturing financial structure that relied on the hospitals themselves, the Federal government, and the State of New York to effectively treat the people of the State o Under hospital reform in the early 2000s, the three SUNY Teaching Hospitals were required to pay the costs of their own fringe benefits as well as reimburse the State for payment of debt service costs on capital improvements In return, the State pledged to provide an “operating subsidy” (generated by formula) that was intended to offset some of the costs the Teaching Hospitals incurred due to their State-related status o This formula has not been followed in many years, and all direct support was eliminated in the 2018/19 Enacted State Budget 15 While the hospitals have managed to continue operations, the lack of sustained State investment in their day-to-day activities (both in terms of Direct State Tax Support and Capital support) have had an impact o However, the benefit that the three teaching hospitals provide to the State, as well as their importance to healthcare, research, and the populations they serve are too great to devolve into recitations of issues of the past Instead, SUNY proposes that burgeoning discussions between SUNY, the Department of Health (DOH), and others continue to come to a mutual understanding of the services that the State expects from the hospitals (and how to pay for them) that will – hopefully – eliminate the ongoing cycle that has existed even prior to hospital reform o Meanwhile, to support continued operations at the teaching hospitals and to incentivize needed investment in hospital infrastructures, SUNY is requesting that the State not sweep $46.8M in hospital operational cash, allowing these funds to be reinvested in the critical needs of the hospitals Attachment A (the Special Revenue Funds- Hospitals and other Healthcare Related Activities section) reflects requested year-to-year self-generated revenue spending authority for the three teaching hospitals, as well as for Long Island Veterans Home, for the 2020/21 academic year If the State reverts to a purely “volume based” model as in prior years, the funding amount provided to the Colleges will be re-adjusted for the 2020/21 Academic Year Under current enrollment projections this new level of funding will be reduced, which would necessitate an approximate $24M investment 15 The State did, however, provide one-time support to the teaching hospitals through the facilitation of an operating grant from the Care Restructuring Enhancement Pilot (CREP) 14 Page of 24 Other – Administration of the State’s Voluntary Defined Contribution (VDC) Program While no new funding is requested, SUNY is proposing that the $0.5 million in Direct State Tax appropriated since 2016/17 be provided for workforce needs and travel related to SUNY’s administration of this program on behalf of the State Additionally SUNY will engage with the State on re-examining the program, the cost impacts and opportunity to grow and provide more savings for the State Page of 24 Capital Budget Request Detailed Submission The Capital Budget Request enables the transformation of SUNY for the 21st Century Additionally, it aligns with New York State’s capital priorities outlined in the 2020/21 Budget Call Letter, which asks for submission of multi-year capital plans that give priority to projects that are shovel ready, environmentally sound, create jobs, improve infrastructure, and achieve a long-term return on the public’s investment SUNY’s multi-year capital request is based on projects that meet each of these criteria As discussed further below, SUNY campuses and the State University Construction Fund (the Fund) have advanced the design of numerous projects across most campuses that support the academic mission and are now “shovel-ready.” Providing State-support to advance these projects to construction will create hundreds of construction and construction-related jobs and address the considerable deferred maintenance backlog of SUNY’s vast physical plant, which represents 40 percent of all State-owned building assets In addition, these projects will have a significant impact on improving upon previous progress that SUNY has made in advancing the State’s energy efficiency and carbon reduction goals SUNY has been a leader in advancing energy conservation through capital project designs as evidenced by the adoption of a resolution by the SUNY Board of Trustees requiring all new SUNY buildings to meet a LEED Silver standard in 2007, coupled with advancing designs that exceed energy code Most importantly, there is no better return on the State’s investment than investing in the buildings and infrastructure that supports the education of thousands of current and future New York residents who represent New York’s future workforce It is important to consider that SUNY’s more than 2,900 buildings, covering 110 million gross square feet, have facilitated the education of millions of students and that the majority of these students remain in New York State after their education is complete These million alumni give back to their colleges and communities in numerous ways and are essential to the advancement of the State’s economy The long-term return to New York State by investing in SUNY has been, and can be, quantified in numerous ways, as highlighted in a 2018 Rockefeller Institute of Government study, “The Economic Impact of the State University of New York” SUNY is also supportive of continuation of the NYSUNY 2020 Challenge Grant Program, which has resulted in many transformational capital projects across New York State SUNY’s 2020/21 Capital Budget Request is further detailed in the following pages Rest of Page Intentionally Left Blank - Page 10 of 24 State-operated Campuses and Statutory Colleges State University of New York (SUNY) 2020/21 Capital Budget Request State-operated Campuses and Statutory Colleges ($M) Program Educational Facilities • Base Critical Maintenance • Strategic Needs – Matching Program (State Share) Hospitals • Critical Maintenance & Strategic Needs State Bonded Capital Requested Educational Facilities • Strategic Needs – Matching Program (Campus Share) • Campus Supported Capital Projects Fund Residence Halls • Pay-as-you-go Capital Campus Supported Capital Requested Total: State-operated/Statutory Campuses 2020/21 Request 5-Year Request Annual Increase from 2019/20 Enacted $ 650.0 200.0 $ 850.0 $3,250.0 1,000.0 $4,250.0 $100.0 200.0 $300.0 150.0 750.0 50.0 16 $1,000.0 $5,000.0 $350.0 100.0 500.0 100.0 100.0 200.0 100.0 600.0 100.0 200.0 75.0 300.0 25.0 $275.0 $900.0 $250.0 $1,275.0 $5,900.0 $600.0 Educational Facilities The Educational Facilities program, the largest of SUNY’s capital programs, supports the buildings and infrastructure necessary to facilitate the academic enterprise at SUNY’s State-operated campuses and statutory colleges The footprint comprises 1,850 academic buildings averaging about 50 years of age and spans nearly 63 million gross square feet It is vital to increase the planned $550 million investment for Educational Facilities by $300 million annually to ensure SUNY’s continued success and reputation as world-renowned institution, transformed for the 21st Century To ensure effective planning and continued execution, it is imperative that this additional support is provided through a predictable multi-year capital plan commitment, rather than a year-at-a-time approach In recognition of the State’s capacity to accrue new debt obligations under the limitations of the Debt Reform Act of 2000, and to ensure that campuses have a financial stake in advancing large new projects, a Strategic Needs Capital Matching Program is proposed to leverage up to $200 million in additional State bonded support annually In general, the Matching Program would support new construction and/or major renovations of academic facilities at the State-operated campuses and statutory colleges The matching goal would be to achieve an overall program ratio of 1:2, every $1 of campus generated funds would leverage $2 of State support More information on this proposed program is provided in Attachment C In the past four budget cycles, Stony Brook and Upstate Medical University Hospital received $50.0M each in ongoing capital support The 2020/21 request includes continuation of this level of support as well as $50 million in new capital support for Downstate University Hospital 16 Page 11 of 24 As noted above, the State-operated campuses and statutory colleges, in partnership with the State University of New York, have engaged in a robust planning process that has produced multi-year capital plans on every campus that meet the criteria set forth in the 2020/21 Budget Call Letter, but that also address the facility needs to meet shifting student demands for programs that prepare them for the jobs of tomorrow Percent Change in Headcount Enrollment, by Program of Study Long Term vs Short Term Trends (2010-2018 vs 2014-2018) Computer and Information Sciences and Support Services Engineering 46% 9% Biological and Biomedical Sciences 20% 7% 20% Health Professions and Related Clinical Sciences 3% -17% Liberal Arts and Sciences, General Studies and Humanities 13% -29% Education Percent Change in Headcount Fall 2010-2018 Percent Change in Headcount Fall 2014-2018 8% -41% English Language and Literature/Letters History 96% 41% -23% -44% -45% -12% -25% -5% 15% 35% 55% 75% 95% While SUNY’s total enrollment at the State-operated campuses and Statutory Colleges has been relatively stable over the past decade, the programs in which students are enrolling have changed considerably, with STEMrelated programs showing significant increases as demonstrated in the chart above Also of note, enrollment in programs that prepare students for a career in the trades (i.e., construction trades), which are comparatively smaller overall, have seen a steady relative increase in the past five years This requires that campus buildings evolve from teaching and learning in traditional classrooms and student support spaces to those that provide more specialized labs and collaborative learning environments that accommodate today’s student demand In the past 11 years, SUNY’s capital plan has invested approximately $3.3 billion in STEM-related construction There are multiple projects at nearly every campus currently being designed that will renovate buildings that support the shifting programmatic demand These include the full renovations of science buildings at the University at Albany, Maritime College, Old Westbury, Binghamton and Delhi Other projects that support various programs, including economics, business, communications and social sciences are also underway at SUNY Oneonta, SUNY Oswego, and Farmingdale State College, respectively As part of managing a predictable, multi-year capital program, capital funds have been committed to advance the designs for the renovations of existing buildings, or for new construction where warranted, to support the programmatic needs of the departments located in those facilities, while also significantly reducing the deferred maintenance backlog This is done with the expectation that additional capital will be made available to fund and advance construction As a result, the requested multi-year capital request is predicated on a number of projects that are shovel-ready and meet the State’s priorities Environmentally Sound SUNY has been a leader in advancing energy conservation through capital project designs as evidenced by the adoption of a resolution by the SUNY Board of Trustees requiring all new SUNY Page 12 of 24 buildings to meet a LEED Silver standard in 2007, coupled with advancing designs that exceed energy code As shown in the chart below, this has led to a reduction in energy costs despite an increase in SUNY’s total gross square footage (GSF) since 2005/06 This trend has continued, and most recently, a new requirement that all capital projects, whether a comprehensive renovation of an existing building, the construction of a new building, or a smaller project that targets specific assets within a building, will further exceed energy standards Since 2018, all new construction is required to be net zero carbon emissions capable, while comprehensive renovations must be designed as a deep energy retrofit with a goal of reducing the building’s annual energy consumption by 50 percent and carbon by 25 percent This will require investment however if the past is any predictor of the future, SUNY has been and will continue to be a leader in the climate change fight Create Jobs An investment in SUNY capital creates high paying construction and construction-related jobs Over the past 11 years, construction projects on SUNY campuses have generated more than 73,000 construction jobs across the State at an average hourly rate of more than $70 Improve Infrastructure Capital funding that has been provided for SUNY’s educational facilities has been invested wisely, and where it is needed most As demonstrated in the graph below, of the $635.7 million of State bonded investment spent in the 2018/19 State Fiscal Year, more than 80 percent was invested in improving and upgrading existing buildings and infrastructure However, much more needs to be done Based on life-cycle modeling software, an annual investment of at least $850 million is needed just to keep pace with the deferred maintenance needs system-wide Increased funding would also position SUNY to be more efficient with capital investment by advancing projects in a holistic manner instead of in phases Page 13 of 24 Page 14 of 24 Long-term Return on Investment An annual investment of $850 million, with flexibility to construct new facilities where warranted, is needed to provide the renovations or new facilities that can serve the needs of students, faculty, and equipment in appropriate and relevant learning facilities This level of capital investment would also accelerate SUNY’s already sizeable contribution to the New York State economy and continues the long-term return on investment that higher education facilitates Capital investment fuels significant returns: • • • • SUNY Educates New York’s Workforce Since its creation, SUNY has educated more than three million students, the majority whom remain in New York, and grants 93,000 degrees annually Transformed, modern, up-to-date, facilities are essential to providing a quality education for current and future students that will continue to sustain New York’s economy In many cases, a SUNY education provides upward mobility for disadvantaged students, and an increasingly diverse population Multiple studies have shown that the physical environment has a significant impact on student attraction, learning, retention, and the commitment to supporting the institution after graduation; SUNY Generates Revenue Capital investment to update facilities and modernize laboratories that support research assists with the recruitment of world class faculty and researchers that generate $1.6 billion annually through grants and patents SUNY’s impact could even be greater with additional investment SUNY Revitalizes Communities Capital investment in SUNY, particularly in urban environments, revitalizes communities and brings SUNY and the community together; SUNY Excels in Addressing Climate Change SUNY has been a leader in helping New York State meet its energy goals, including clean energy targets SUNY has reduced its greenhouse emissions by almost 25 percent in the past 30 years and continues to lead the way by incorporating an ambitious clean energy vision into capital investments Hospitals The three SUNY teaching hospitals have a significant impact on the communities in which they are located, as well as on the overall State economy The hospitals generate billions annually in economic activity and are among the largest employers in their respective regions Hospitals are capital-intensive operations requiring very complex building systems to provide safe, quality care and compete in the constantly evolving health care market Capital investment is crucial to ensure that the three SUNY teaching hospitals can sustain their $3.3 billion operation, which includes 1,700 licensed beds, more than 285,000 emergency room visits, and more than one million outpatient visits every year Since 2016/17, $100 million has been provided on an annual basis, for a total of $400 million 17 for the teaching hospitals at Upstate Medical University and Stony Brook University Hospital ($200 million each) Downstate University Hospital has not received additional capital since 2008/09, when each hospital received $150 million as part of a five-year capital plan The 2020/21 hospital capital request of $150 million, which includes $50 million for Downstate as it is anticipated that the hospital will exhaust all available capital funds by the end of the 2019/20 State Fiscal Year The request is also for a multi-year capital commitment of $750 million to provide for an ongoing commitment for all hospitals which is necessary to address immediate asset renewal needs at each hospital, including a significant electrical upgrade at Downstate, and to progress projects to ensure the long-term success of the hospital in the evolving health care sector While the majority of the requested capital for the hospitals is needed to address critical maintenance needs, such as a comprehensive upgrade of the electrical system at Downstate, signicant programmatic projects include the planned construction and renovations for operating rooms, a heart and vascular center, interventional X-ray areas, and renovation of in-patient units Residence Halls The residential life is an important component of the higher education experience Residence halls are selffunded and use revenue from room rents to fund both operations and capital needs No State funds are used in this This amount excludes special appropriations provided to reimburse Upstate University Hospital and Stony Brook Hospital for additional matching funds required to draw down Disproportionate Share Hospital (DSH) revenues 17 Page 15 of 24 program Over the past several years, about $50 million has been invested annually for minor rehabilitation projects using pay-as-you-go hard dollars from program revenues, however State appropriation is required to expend this revenue For 2020/21, an increase of $25 million is requested to support the residence hall revolving loan fund, for a total annual appropriation of $75 million, and a five-year total of $300 million Bonded dollars, which are independent of the State bonding cap, are used primarily for major critical maintenance, but are also included as part of the program at some new campus facilities to meet changing housing needs The residence hall program includes a separate legislative bond cap of $1.394 billion, which was increased in 2019/20 from $944 million The new extension to $1.394 billion is expected to provide spending authority through 2024/25 As of mid-October, $611 million of the cap has been used with an additional $160 million anticipated to be utilized in November 2019 Community Colleges This capital program is in support of the academic buildings located on community college campuses The State supports half of the capital costs for community college capital projects, with the other half funded through the local sponsor In 2019/20, the State Budget provided $37.1 million, representing the State share for 61 projects at 20 community colleges State University of New York (SUNY) 2020/21 Capital Budget Request Community Colleges ($Millions) Program Community Colleges State Bonded Capital Requested 2020/21 Request (State Share) $60.5 2020/21 Request (Local Share) $60.5 Total Request $60.5 N/A $60.5 $121.0 Community colleges are a vital part of the SUNY system, providing diverse programming from hands on learning and workforce training, to general education The diverse programs require specialized facilities to train students for today’s workforce or to prepare them for entering 4-year programs at the State-operated campuses Each community college has a sponsor responsible for 50 percent of the capital improvements The sponsors develop annual budgets and determine the amount of capital investment that will be provided to the college This in turn determines the amount to be included in SUNY’s annual budget request for the 50% matching State share The figures provided are the colleges’ estimated request, as some colleges will continue to seek local sponsor county funding resolutions in November and December Inclusion in the final request is dependent on Sponsor’s ability to provide and document the 50 percent local match for capital projects While most of capital investment at the community colleges is for critical maintenance repairs to extend the useful life of the existing educational facilities, a few new facilities are also included in the capital plan to meet the needs of new and changing programs at the colleges A list of the current 18 Community College projects that are anticipated to receive local sponsor match is provided as Attachment C This information is provided as the State share for each community college project is separately delineated in the appropriation bill 18 As of October 31, 2019 Page 16 of 24 Page 17 of 24 State University of New York (SUNY) Requested Adjustments / Requests for New Legislation • Attachment B Adjustments to 2019/20 Enacted “Sweeps and Transfers” for SUNY 2020/21 Budget Request Page 18 of 24 Attachment B State University of New York (SUNY) 2019/20 Sweeps & Transfers (Pertinent Sections of Part TTT of Chapter 59 of the Laws of 2019) Adjusted for 2020/21 SUNY Request Strikethrough Represents Prior Language to be Deleted, Underline Reflects New Language Adjustments Related to SUNY Budget Request Items Item: Notwithstanding any law to the contrary, and in accordance with section of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, $1,042,062,300 up to $1,017,062,300 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 202019 through June 30, 202120 to support operations at the state university Of this amount, up to $25,000,000 may be provided directly by the general fund, outside philanthropic enterprises, cost savings, or other appropriate sources to the state university general revenue offset account (22655) or an appropriate SUNY operating fund and account designated by the comptroller of the state of New York Reason for Adjustment: To accommodate the need for additional direct investment in the operations of the State operated campuses of the SUNY system Item: 10 Notwithstanding any law to the contrary, and in accordance with section of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, up to $67,700,000 $109,500,000 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of April 1, 202019 through June 30, 202019 to support operations at the state university Reason for Adjustment: To accommodate the need for additional direct investment in the operations of the Stateoperated campuses of the SUNY system Item: 12 $44,000,000 from the state university income fund, state university hospitals income reimbursable account (22656) to the general fund for hospital debt service for the period April 1, 2019 through March 31, 2020 Reason for Adjustment: Negation of the annual sweep of SUNY Hospital funds to reimburse the State for capital improvement costs and to allow for reinvestment of these dollars in hospital operations This value is estimated to be approximately $47M in 2020/21 Item: 11 Notwithstanding any law to the contrary, and in accordance with section of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, up to $20,000,000 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 202019 to June 30, 202119 to support operations at the state university in accordance with the maintenance of effort pursuant to clause (v) of subparagraph (4) of paragraph h of subdivision of section 355 of the education law Reason for Adjustment: Adjusted for dates and to ensure proper value is transferred It is expected that the value will be adjusted as appropriate for the true costs related to Excelsior Scholarship Program recipients Page 19 of 24 Adjustments Related to Dates Only Attachment B Item: Notwithstanding any law to the contrary, and in accordance with section of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget and upon consultation with the state university chancellor or his or her designee, on or before March 31, 202120, up to $16,000,000 from the state university income fund general revenue account (22653) to the state general fund for debt service costs related to campus supported capital project costs for the NY-SUNY 2020 challenge grant program at the University at Buffalo Item: Notwithstanding any law to the contrary, and in accordance with section of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget and upon consultation with the state university chancellor or his or her designee, on or before March 31, 202120, up to $6,500,000 from the state university income fund general revenue account (22653) to the state general fund for debt service costs related to campus supported capital project costs for the NY-SUNY 2020 challenge grant program at the University at Albany Item: 12 Notwithstanding any law to the contrary, and in accordance with section of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the state university chancellor or his or her designee, up to $55,000,000 from the state university income fund, state university hospitals income reimbursable account(22656), for services and expenses of hospital operations and capital expenditures at the state university hospitals; and the state university income fund, Long Island veterans' home account (22652) to the state university capital projects fund (32400) on or before June 30, 202120 Item: 13 Notwithstanding any law to the contrary, and in accordance with section of the state finance law, the comptroller, after consultation with the state university chancellor or his or her designee, is hereby authorized and directed to transfer moneys, in the first instance, from the state university collection fund, Stony Brook hospital collection account (61006), Brooklyn hospital collection account (61007), and Syracuse hospital collection account (61008) to the state university income fund, state university hospitals income reimbursable account (22656) in the event insufficient funds are available in the state university income fund, state university hospitals income reimbursable account (22656) to permit the full transfer of moneys authorized for transfer, to the general fund for payment of debt service related to the SUNY hospitals Notwithstanding any law to the contrary, the comptroller is also hereby authorized and directed, after consultation with the state university chancellor or his or her designee, to transfer moneys from the state university income fund to the state university income fund, state university hospitals income reimbursable account (22656) in the event insufficient funds are available in the state university income fund, state university hospitals income reimbursable account (22656) to pay hospital operating costs or to permit the full transfer of moneys authorized for transfer, to the general fund for payment of debt service related to the SUNY hospitals on or before March 31, 202120 Unchanged Item: 11 $8,318,000 from the general fund to the state university income fund, state university income offset account (22654), for the State's share of repayment of the STIP loan Item: Notwithstanding any law to the contrary, upon the direction of the director of the budget and upon requisition by the state university of New York, the dormitory authority of the state of New York is directed to transfer, up to $22,000,000 in revenues generated from the Page 20 of 24 Attachment B sale of notes or bonds, the state university income fund general revenue account (22653) for reimbursement of bondable equipment for further transfer to the state's general fund Item: 14 Notwithstanding any law to the contrary, upon the direction of the director of the budget and the chancellor of the state university of New York or his or her designee, and in accordance with section of the state finance law, the comptroller is hereby authorized and directed to transfer monies from the state university dormitory income fund (40350) to the state university residence hall rehabilitation fund (30100), and from the state university residence hall rehabilitation fund (30100) to the state university dormitory income fund (40350), in an amount not to exceed $80 million from each fund Item: 22 Notwithstanding any law to the contrary, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, on or before March 31, 2020, the following amounts from the following special revenue accounts to the capital projects fund (30000), for the purposes of reimbursement to such fund for expenses related to the maintenance and preservation of state assets: $830,000 from the miscellaneous special revenue fund, long island veterans' home account (22652) $5,379,000 from the miscellaneous special revenue fund, state university general income reimbursable account (22653) 10 $112,556,000 from the miscellaneous special revenue fund, state university revenue offset account (22655) 11 $557,000 from the miscellaneous special revenue fund, state university of New York tuition reimbursement account (22659) 12 $41,930,000 from the state university dormitory income fund, state university dormitory income fund (40350) Items No Longer Needed Item: Notwithstanding any law to the contrary, the state university chancellor or his or her designee is authorized and directed to transfer estimated tuition revenue balances from the state university collection fund (61000) to the state university income fund, state university general revenue offset account (22655) on or before March 31, 2020 Page 21 of 24 State University of New York Strategic Needs Capital Matching Program Attachment C Eligibility The Strategic Needs Capital Matching Program (Matching Program) is established within the State University of New York (SUNY) Educational Facilities Capital Program As such, eligibility is limited to SUNY’s State-operated and statutory colleges as defined in Section 352 of the Education Law Eligible Projects In general, the Matching Program is intended to provide State-support matched with campus funds for new construction and/or major renovations of academic buildings at the State-operated campuses and statutory colleges Eligible projects can include property acquisition to facilitate new construction, design services, new construction, or reconstruction, rehabilitation, and renovation of existing academic facilities, as well as equipment purchases associated with the project It is intended that projects approved for funding under the Matching Program will enhance programmatic offerings, meet programmatic demands, address workforce development needs, or enhance student life or success at the campus Consideration can also be given to projects that facilitate economic development, enhance research capacity, or enhance community engagement to the surrounding area Matching Requirement/Waiver Process The matching goal would be to achieve an overall program ratio of 1:2 (non-State to State-Support) Every $1 of campus funds will leverage $2 of State support The matching requirement can be modified based on a general policy established by the State University Board of Trustees, with the development of the methodology delegated to the Chancellor or designee The Chancellor or designee, in consultation with the State University Construction Fund (Fund), would develop a methodology to determine a matching ratio based on an evaluation of a college’s fiscal resources, which could include measures such as endowment per full-time equivalent student, unrestricted operating reserves, tuition and fees, and other federal and non-State grants The methodology could also provide consideration for each campus’ programmatic mission, programmatic and student impact Allowable Campus Matching Funds Campus matching funds could include: • Unrestricted endowment assets available for institutional use; • Federal funds; • Other campus funds such as unrestricted operating reserves, tuition and fee revenues, or funds available through campus-affiliated organizations, such as Auxiliary Service Corporations Application and Approval Process SUNY, in consultation with the Fund, will develop a standard application and approval process for the Matching Program Page 22 of 24 Attachment C State University of New York (SUNY) 2020/21 Community College Capital Request (as of October 31, 2019) Item # 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 College Submission Description Adirondack Broome Broome Cayuga Cayuga Corning Corning Corning Corning Dutchess Dutchess Dutchess Dutchess Erie Finger Lakes Finger Lakes Finger Lakes Finger Lakes FIT FIT FIT FIT Hudson Valley Jamestown Jamestown Jefferson Mohawk Valley Mohawk Valley Mohawk Valley Mohawk Valley Mohawk Valley Monroe Monroe Monroe Nassau Nassau Nassau Nassau Nassau Nassau Nassau Nassau Nassau Nassau Nassau Nassau Nassau Nassau Critical/Deferred Maintenance, Campus Improvements Building Renovation Critical Maintenance Ph II Advance Manufacturing Lab Childcare Parking Lot Critical Maintenance Science Lab Renovations Classroom Technology Safety Aviation Maintenance & Education Center DCC South Campus FF&E Upgrade Campus IT Infrastructure Ph I Campus Site Repairs and Upgrades Ph I College Wide Improvements and Renovations Nursing Renovation and Addition Capital Improvements Parking and Utility Improvements Underground Utilities for new restroom facility Facilities Expansion and Renovation Energy Savings Projects Museum Infrastructure Health Services Center Master Plan Implementation Ph I Academics Renovation & Related Facilities Athletic Facilities Upgrades Revitalization and Maintenance Food Service Area Renovation Payne Hall Renovations Academic Classrooms & Spaces Renovation Advanced Academic & Safety Technology Campus Wayfinding & Signage Expand Visual & Performing Arts & Renovate Building Property Preservation Ph III Capital Equipment Replacement-Technology Master Plan Facility Upgrades IT Phased Infrastructure Upgrades Perkins Program/ Facilities Upgrade Space Consolidation Rehab Water Damaged Buildings Renovation to library Infrastructure Assessment & Master Plan Update Cluster Restroom Renovations Energy Savings Initiatives Critical Maintenance Projects Roof Repairs Security System expansion Physical Plant Equipment & Vehicles Greenhouse Renovation Request: State + Local $4,955,000 6,000,000 500,000 430,000 350,000 500,000 300,000 150,000 150,000 1,250,000 900,000 650,000 473,000 6,800,000 6,000,000 1,200,000 750,000 250,000 11,023,800 2,350,778 2,000,000 750,000 4,000,000 3,471,000 1,588,500 4,000,000 1,363,040 1,100,000 1,020,000 500,000 300,000 2,736,000 2,000,000 500,000 5,489,912 3,000,000 2,200,000 2,000,000 1,980,000 1,500,000 1,000,000 1,000,000 620,000 500,000 500,000 250,000 200,000 100,000 Request: State $2,477,500 3,000,000 250,000 215,000 175,000 250,000 150,000 75,000 75,000 625,000 450,000 325,000 236,500 3,400,000 3,000,000 600,000 375,000 125,000 5,511,900 1,175,389 1,000,000 375,000 2,000,000 1,735,500 794,250 2,000,000 681,520 550,000 510,000 250,000 150,000 1,368,000 1,000,000 250,000 2,744,956 1,500,000 1,100,000 1,000,000 990,000 750,000 500,000 500,000 310,000 250,000 250,000 125,000 100,000 50,000 Page 23 of 24 Attachment C State University of New York (SUNY) 2020/21 Community College Capital Request (as of October 31, 2019) Item # College Submission Description 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Niagara Niagara Niagara Niagara North Country Orange Orange Suffolk Suffolk Suffolk Ulster Ulster Ulster Ulster Westchester Westchester Westchester Westchester Westchester Westchester Westchester Parking Lot #4 Sanborn Boiler Replacement Ph I C-Annex Building Roof B-Building Roof Critical Maintenance and Renovations Restroom Renovations Orange Hall Entrance Door Infrastructure Improvements Life Safety College Wide Workforce Development & Technology Center Expansion Infrastructure Improvements Campus Roofs and Exteriors Facilities Equipment Sitework Administration Building Expansion/Renovation Ph I Roof Replacement Ph VI Academic Arts Building Infrastructure Ph I Technology Upgrade On Campus Ph III Site Improvement/Upgrade Ph III Infrastructure Upgrade Ph II Technology Upgrade Off Campus Ph III TOTALS: Request: State + Local $1,328,395 625,000 447,000 395,000 300,000 360,000 125,000 5,150,000 2,050,000 170,000 4,595,099 4,326,000 700,000 50,000 2,720,000 2,540,000 1,572,000 1,200,000 862,000 784,000 100,000 $121,050,526 Request: State $664,198 312,500 223,500 197,500 150,000 180,000 62,500 2,575,000 1,025,000 85,000 2,297,550 2,163,000 350,000 25,000 1,360,000 1,270,000 786,000 600,000 431,000 392,000 50,000 $60,525,262 Page 24 of 24 ... Colleges • • • • Capital Budget: Additional Support Operating Budget Request Detailed Submission The 2020/21 request utilizes the 2019/20 Enacted Budget as a base, respectfully requesting the State... the cost impacts and opportunity to grow and provide more savings for the State Page of 24 Capital Budget Request Detailed Submission The Capital Budget Request enables the transformation of SUNY... for capital improvements These operating investments will need to be supported by a strong capital infrastructure To ensure this, SUNY is requesting capital investment in our classrooms, labs, and