Hevesi Announces Preliminary 2004-05 Year-End Results

[Night Owl]

FOR RELEASE: Immediately
April 5, 2005

Hevesi Announces Preliminary 2004-05 Year-End Results

Based on preliminary results, State Comptroller Alan G. Hevesi today reported that New York State finished the 2004-05 fiscal year with $322.2 million more in the State's General Fund and Personal Income Tax Refund Reserve Fund than was anticipated in the Financial Plan, primarily due to higher than projected business tax collections and lower than expected spending.

The 2004-05 year-end General Fund balance was $1.2 billion. This was comprised of $871.9 million in the Tax Stabilization Reserve Fund, $20.6 million in the Contingency Reserve Fund, and $325.7 million in the Community Projects Fund.

The State Financial Plan, updated in February, anticipated a $522 million operating surplus. However, subsequent to the February update, the State made additional payments of $55 million to the State Retirement System to reduce the State’s unpaid balance and $7.9 million that was deposited into the Tax Stabilization Reserve Fund. In addition, the Legislature authorized additional spending in 2004-05 of $200 million for Health Care Reform Act (HCRA) Transfer Account and $190 million for Medicaid.

Had these payments not been made, the State would have ended the fiscal year with an operating surplus of $774.9 million.

General Fund spending, including transfers to other funds, totaled $43.6 billion, a $1.6 billion or 3.7 percent increase from 2003-04. The year-to-year increase in spending is understated due to $1.9 billion in spending made in 2003-04 that was deferred from the previous fiscal year. This is offset by the additional spending in 2004-05 from the General Fund that was not included in the financial plan.

General Fund receipts, including transfers from other funds, totaled $43.8 billion, a $1.4 billion or 3.4 percent increase from the prior year. The increase would have been greater due to non-recurring revenues totaling over $4.8 billion from tobacco bond proceeds as well as one time federal fiscal relief aid received in 2003-04.

All Governmental Funds receipts, including bond proceeds were $100.7 billion, an increase of $1.6 billion or 1.6 percent. The increase is understated primarily due to non-recurring tobacco bond proceeds and additional federal funds received for fiscal relief, World Trade Center disaster assistance and increased reimbursements resulting from Federal Medical Assistance Percentage (FMAP) rate adjustments received in 2003-04.

All Governmental Funds spending totaled $100.6 billion, $3.3 billion above 2003-04, or an increase of 3.4 percent. The increase is primarily due to additional spending in 2003-04 that was deferred from 2002-03.

The Comptroller will be issuing a full report on the enacted budget in the coming weeks.

[biker]

Thanks for the post Nightowl.

My overall take is how slim a margin an error the State operates on: a surplus that was greater than expected of $332 million is less than 1% of the State's overall take.

It's good to hear that they immediately used part of this to pay down on the Retirement system and to shore up the "rainy day fund."

It was bad to hear that part of the surplus was used to pay bills that were "shoved in the drawer" so they wouldn't be counted as last year's bills. Actions like this in the private sector would lead to SEC sanctions and jail time. For the government, it's ho-hum and "yeah, so what!"

Isn't it interesting how good things flow together? The State ends with a surplus. Pays down debt. Passes the first on time budet in a generation.

[Night Owl]

I will be sure to keep an eye out for the full report and post it here.

New York State finished the 2004-05 fiscal year with $322.2 million more in the State's General Fund and Personal Income Tax Refund Reserve Fund than was anticipated in the Financial Plan,

I thought the State said that they wouldn't be able to help Erie County with a little monet. You think you would give a little back in "our hour of need" - not a hand out to bail out what the County caused, but a little something since County tax dollars is part of that surplus.

It was bad to hear that part of the surplus was used to pay bills that were "shoved in the drawer" so they wouldn't be counted as last year's bills

It sounds like the norm almost, because we're hearing how the County is doing just the same thing.

[biker]

I hope the State doesn't send us any money.

I don't know where you live, Nightowl, but I live in the City. The best thing the State ever did for the City was to cut them off.

Anyone working in drug or alcohol addiction will tell you that one of the biggest obstacles to curing the addict is the enabler. The enabler is the one who covers up for the addict, for shielding him from the consequences of his actions, sometimes even for providing him with the very thing tha's killing him.

NYS has been the City's enabler in all, all senses of the term

The City seems to be on the slow, painful path to recovery.

The County doesn't need the State's help either.

[Night Owl]

City of Buffalo, all my life.

[biker]

I would value your opinion on how the City has been doing the past couple of years.

[Night Owl]

is this a trick?

[biker]

Nope

[Night Owl]

At first I was very opposed to the idea of having a control board in the City, but after following more of what's going on I think it's something that should have been done back in the mid to late 90's. Now I am a supporter for the same type of control board in the County.

If we're going to be spending money, might as well spend it on panel that's going to oversee what's what until we can find the right people (electedly) to do the right job.

IMO- Buffalo is looking good, the past year has had improvements (not anything great, but improvements nonetheless) and we're on the right track, but the biggest challenge is to get the Masiello Administration (with his puppets) out of the system.

This is just one area of Local Government where the incumbant must to go.

[biker]

I think we share a lot of the same motivations, but I do part company with you on the County need.

I think the City was bankrupt both morally and financially. I think it had no choice but to get a CB. I agree with you that the City is looking a little better than a few years ago. Maybe it's really only stopped getting worse and, by comparison, that seems better. But I think it's actually better.

I was in a class today on Buffalo history where the professor was lecturing the class on what a bad thing the changes made to the Charter a couple of years ago were. "I disagree", I spoke out. "I can't think of anytime I've been prouder to say I'm a City resident than the past couple of years.

Having said that, I don't think we need a CB for the County. It's a sad commentary on democracy and our local citizens when they want an unelected CB to ride herd on a municipality. I'm guessing that was part of your original objection.

I think people are too quick to suggest one for the County because they have the example of how well it worked with the City. But the County is not financially bankrupt and I think it has a chance to straighten itself out morally.

As compared to the City, a far smaller percentage of the County's population works for or does business with the County.

IMHO

[Night Owl]

But the County is not financially bankrupt and I think it has a chance to straighten itself out morally.

OMG & IMO - $108 million in cuts, 1500 jobs lost (but we shouldn't have been the largest employer to begin with), cuts in services, another $14.1 million deficit and etc. sounds like being in "financial" trouble to me.

The only way the County will "straighten itself out" is if it's forced to do so.

[biker]

No it is not financially bankrupt.

The City had run out of taxing authority. Because there had been so many more takers than givers in the City, it taxed until it couldn't any more.

That's not the County's situation. It has a lot of taxing capacity left.

More importantly, it has an electorate who said "NO" loudly enough that even the piggy politicians had to grunt and say no.

All this pain is not a bad thing. We are forcing ourselves to prioritize.

It's not pretty, it's not smart, it's not smooth, but it's working.

The City was so strung out (in all senses of the word) that it said "I can't control myself at anything. Give me more."

[Night Owl]

The City had run out of taxing authority. Because there had been so many more takers than givers in the City, it taxed until it couldn't any more.

Isn't that the same path the County is on right now? Why not put a control board in on a precautionary measure? So it doesn't get to the point where they run out of Taxation options.

That's not the County's situation. It has a lot of taxing capacity left.

Just because they have it (the option of taxing) doesn't mean they have to use it.

[biker]

No, I don't think the County is heading in the same direction.

I agree with you completely that "just because they have the option of taxing doesn't mean they have to use it." 100%

And so did the active electorate of Erie County. They forced the Legislature to rescind a tax increase the tax and spendaholics had already approved. Unbelievable!!!

Then the electorate demanded that they cut spending to make up for it. Incredible!!!

Most knowitalls in government say the people have no stomach for this type of thing. That's why they give them a little morphine in the form of some little benefit and soak them for millions in taxes.

The democratic process in Erie County is working.

I think you can tell I'm no fan of Lynn Marinelli. But I applaud her for holding her public meetings. Knowing that guys like me were probably going to wallop her. "Cause she knew that she'd come out stronger from it. She knows what people are thinking (or the few of us that showed up) and how she can better tailor her message for re-election.

Is this a great county or what!!!???

I count on continued sanity from the voters of Erie County.

Here's a quick calculation of why. How many people in the City are on some sort of public assistance (not just welfare, but in addition HEAP, food stamps, Medicaid, work for a community center,etc), work for the City, or do business with the City. What percentage of the whole City poplulation is that?

I'm betting that a lot smaller percentage of County residents are that way than in the City.

That's another reason why I think a CB was essential for the City and unnecessary for the County.

Your thoughts?

[Night Owl]

How many people in the City are on some sort of public assistance (not just welfare, but in addition HEAP, food stamps, Medicaid, work for a community center,etc), work for the City, or do business with the City. What percentage of the whole City poplulation is that?

you're really asking a lot. Mostly when I do searches it on the internet it will give percentages to County statistics because it's County social services, but I'll see what I can come up with in some new searches.

Oh In a thread from last year, I included a lot of information and links to various sites online.

http://www.speakupwny.com/forum/show...d&pagenumber=3

and

http://www.speakupwny.com/forum/show...d&pagenumber=4

I hope that helps, but I'll keep searching over the weekend.