Institutional Federal Compliance Report 2021

24 • STATE OF NEW YORK ______________________________________________________________________________________________

Governmental Activities In fiscal year 2018, the State’s total revenues for governmental activities of $162.7 billion exceeded its total expenses of $160.1 billion by $2.6 billion (Table 2). However, as shown in the Statement of Activities on page 32, the amount that State taxpayers ultimately financed for activities through State taxes and other State revenues was $81.7 billion. Overall, the State’s governmental program revenues, including intergovernmental aid, fees for services and capital grants, were $81 billion in 2018. The State paid for the remaining “public benefit” portion of governmental activities with $80 billion in taxes and $1.7 billion in other revenues, including investment earnings. Table 3 presents the cost of State support for each of the State’s five largest programs: education, public health, public welfare, public safety, and transportation, as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial obligation that was placed upon the State’s taxpayers by each of these functions. Table 3 Governmental Activities for the Fiscal Years Ended March 31, 2018 and 2017 (Amounts in millions) 2018 2017 Total Cost Program Net Cost Net Cost of Services Revenues of Services of Services Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,134 $ 4,123 $ 32,011 $ 31,859 Public health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,447 52,791 20,656 18,961 Public welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,006 11,001 3,005 4,181 Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,345 2,791 5,554 6,139 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,141 3,371 6,770 6,581 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,982 6,899 11,083 9,074 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160,055 $ 80,976 $ 79,079 $ 76,795 Business-Type Activities The cost of all business-type activities this year was $24 billion, an increase of $360 million over the $23.7 billion cost in 2017 (Table 2). Increases in spending for SUNY educational and general expenses, hospitals and clinics, and other operating and non-operating expenses, along with increases in Lottery prizes and commissions and fees, and Unemployment Insurance Fund benefit payments were partially offset by decreases in CUNY Senior Colleges’ educational and general expenses. As shown in the Statement of Activities on page 32, the amount reported as transfers that governmental activities ultimately financed for business-type activities was $2.1 billion after activity costs were paid by those directly benefiting from the programs ($15.3 billion), and after grants and contributions ($5.5 billion). The increase in revenues from charges for services ($728 million) was primarily caused by increases in revenue from SUNY hospitals and clinics and from Lottery ticket and video gaming sales. The decrease in revenues from operating grants and contributions was due to the decrease in employer contributions into the Unemployment Insurance Fund. THE STATE’S FUNDS The State uses fund accounting to ensure and demonstrate compliance with legal and finance-related requirements. As the State completed the fiscal year, its governmental funds (as presented in the balance sheet on page 34) reported a combined fund balance of $13.8 billion. Included in this year’s total change in fund balance is a surplus of $2.4 billion in the State’s General Fund, resulting from expenditures exceeding revenues by $9.8 billion, which was offset by net other financing sources of $12.2 billion to the General Fund. The General Fund reported increases in personal income taxes ($5.5 billion), consumption and use taxes ($386 million) and other taxes ($192 million) offset by decreases in miscellaneous revenues ($183 million), and business taxes ($56 million). Compared to the prior year, personal income tax revenue increased due to greater income tax withholding collections and estimated tax payments. The decrease in business taxes is due to shortfalls in audit collection and cash payments associated with final tax year 2016 returns. Total General Fund revenues increased $5.8 billion, while expenditures increased $2 billion. Local assistance expenditures increased by nearly $2.1 billion, due primarily to the timing of education assistance and public health expenditures. State operations expenditures decreased $102 million due to lower overall fringe benefits. The State ended the 2017-18 fiscal year with a General Fund accumulated fund balance of $4.7 billion.