2016_SUNY_Optometry_PRR

T H E S T A T E U N I V E R S I T Y O F N E W Y O R K

Management’s Discussion and Analysis (Unaudited)

Economic Factors That Will Affect the Future The State University is one of the largest public universities in the nation, with headcount enrollment of approximately 220,400 for fall 2015, on twenty nine State-operated campuses and five contract/ statutory colleges. The State University’s student population is directly influenced by State demographics, as the majority of students attending the State University are New York residents. The enrollment outlook remains stable for the State University based on its continued ability to attract quality students for its academic programs. Full-time equivalent (FTE) enrollment, excluding community colleges, for the fiscal year ended June 30, 2015 is approximately 193,100, a slight decrease compared to June 30, 2014. New York State appropriations remain the largest single source of revenues. The State University’s continued operational viability is substantially dependent upon a consistent and proportionate level of ongoing State support. For the most recent fiscal year, State appropriations totaled $3.14 billion which represented 31 percent of the total revenues of the State University. State appropriations consisted of direct support ($1.07 billion), fringe benefits for State University employees ($1.39 billion), debt service on educational facility and PIT bonds ($599 million), and litigation ($78 million). Debt service on educational facilities is paid by the State in an amount sufficient to cover annual debt service requirements; pursuant to annual statutory provisions, each of the State University’s three teaching hospitals must reimburse the State for their share of debt service costs to finance their capital projects. To maintain budgetary equilibrium in an era of fiscal uncertainty, the State University is taking appropriate measures to identify operational efficiencies through shared services and is implementing cost containment measures on discretionary spending for non-personal service costs.

Beginning with the 2011-12 fiscal year, legislation was passed called the NY-SUNY 2020 Challenge Grant Program Act, which includes capital funds for investments in economic expansion and job creation at the State University campuses, as well as a predictable and rational tuition plan. The rational tuition plan authorizes the State University trustees to increase resident undergraduate tuition by up to $300 per year for five years. The five year plan expires at the end of the 2015-16 academic year. In addition, the State University trustees can also increase non-resident undergraduate tuition up to 10 percent at all State-operated campuses as well as certain fees at the four University Centers after approval of their NY-SUNY 2020 Challenge grant plans. The State University depends on the State to provide appropriations in support of its capital programs. In 2004-05 and again in 2008-09, the State Budget provided nearly $8.0 billion through two multi-year capital plans for strategic initiatives and critical maintenance projects for the preservation or rehabilitation of existing educational facilities. These cumulative multi-year funding authorizations provided the State University with the resources required to address the core critical maintenance needs of its existing buildings and infrastructure, as well as the means to make additional capital investments in a range of programmatic initiatives. The 2014-15 and 2015-16 State Budgets provided $562 million and $244 million in new appropriations for one year only. The lack of funding for another multi-year capital plan is directly attributable to State-imposed limits under the State Debt Reform Act of 2000 that caps the level of outstanding debt. It is likely that the Debt Reform Act will continue to affect the State’s ability to invest in the State University’s capital programs in the near future.

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