Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 85

million annually, from City sales tax collected from April 1, 2016 through March 31, 2019. This amount represents a portion of the savings the City realized from a 2014 refunding of Sales Tax Asset Receivable Corporation (STARC) bonds for which the City assigned the $170 million State payment. Chapter 56 of the Laws of 1993 authorized the New York State Thruway Authority to issue up to $2.93 billion in bonds for State highway and bridge projects (the amount of authorized bonds has been raised three times, most recently in 2005, up to $16.5 billion). The bonds are secured and funded by a dedication of por- tions of the State’s petroleum business tax, motor fuel tax, highway and fuel use tax, motor vehicle registra- tion fees, auto rental tax, transmission and transporta- tion tax and certain miscellaneous revenues. In 2001, the State enacted legislation providing for the issuance of State Personal Income Tax Revenue Bonds (PIT bonds) to be issued by several State public benefit corporations. The legislation provides that 25 percent of personal income tax receipts, excluding refunds owed to taxpayers, be deposited to the Revenue Bond Tax Fund which is an account of the General Debt Service Fund. These deposits are used to make debt service payments on PIT bonds, with excess amounts returned to the General Fund. In the event that the State Legislature fails to appropriate amounts required to make debt service payments on the PIT bonds, or if required payments have not been made when due, the legislation requires that deposits Public Benefit Corporations: Dormitory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Environmental Facilities Corporation . . . . . . . . . . . . . . . . . . . . Housing Finance Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Government Assistance Corporation . . . . . . . . . . . . . . . Municipal Bond Bank Agency . . . . . . . . . . . . . . . . . . . . . . . . . . Metropolitan Transportation Authority . . . . . . . . . . . . . . . . . . . Tobacco Settlement Financing Corporation . . . . . . . . . . . . . . . Thruway Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Urban Development Corporation . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Debt service expenditures (principal and interest) for the aforementioned obligations during the fiscal year were $5.2 billion. These expenditures were financed primarily by the revenues reported in the governmental funds. Federal subsidies related to the interest payments made during the year on Build America Bonds and Qualified School Construction Bonds were $74.9 million ($36.3 million related to Issuer

continue to be made to the Revenue Bond Tax Fund until amounts on deposit equal the greater of 25 percent of personal income tax receipts or $6 billion. Amounts in excess of that needed for current debt service are subsequently transferred to the General Fund. The first PIT bonds were issued on May 9, 2002 and approximately $33.6 billion issued for both gov- ernmental and business-type activities were outstand- ing as of March 31, 2018. In 2013, the State enacted legislation providing for the issuance of State Sales Tax Revenue Bonds to be issued by certain State public benefit corporations. The legislation created the Sales Tax Revenue Bond Tax Fund, an account of the General Debt Service Fund, to provide for the debt service payments on these bonds. The bonds are secured by the pledge of payments from this fund, which will receive 25 percent of the State’s sales and use tax receipts. Upon the sat- isfaction of all of the obligations and liabilities of LGAC, this share will increase to 50 percent of the State’s sales tax receipts. Amounts in excess of that needed for current debt service will be transferred to the General Fund. The first sales tax bonds were issued on October 24, 2013 and approximately $7.4 billion issued for both governmental and business-type activ- ities were outstanding as of March 31, 2018. Changes in lease/purchase and other financing arrangements for the year were as follows (amounts in millions):

Outstanding April 1, 2017

Outstanding March 31, 2018

Issued

Redeemed

14,697 $

3,726 $

1,822 $

16,601

114 220

—00000 —00000 —00000 —00000 —00000 —00000 256

50 53

64 167

1,758 204 107 660 4,321 12,839

644 32 73 660

1,370 172

34

—00000

1,212 1,058

3,109 13,474 34,991

1,693

34,920 $

5,675 $

5,604 $

governmental activities and $38.6 million for busi- ness-type activities related to SUNY and CUNY). Certain of the underlying bond indentures require the maintenance of various reserves. Such amounts totaled $352 million at March 31, 2018 and are reported as cash and investments in the General Debt Service Fund and appropriate Other Governmental Funds, with a corresponding restriction of fund balance.