Institutional Federal Compliance Report 2021

26 • STATE OF NEW YORK ______________________________________________________________________________________________

Governmental Activities In fiscal year 2019, the State’s total revenues for governmental activities of $165.3 billion exceeded its total expenses of $163.2 billion by $2.2 billion (Table 2). However, as shown in the Statement of Activities on page 36, the amount that State taxpayers ultimately financed for activities through State taxes and other State revenues was $82.1 billion. Overall, the State’s governmental program revenues, including intergovernmental aid, fees for services and capital grants, were $83.3 billion in 2019. The State paid for the remaining “public benefit” portion of governmental activities with $80.2 billion in taxes and $1.8 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, 2019 and 2018 (Amounts in millions) 2019 2018 Total Cost Program Net Cost Net Cost of Services Revenues of Services of Services Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 37,324 $ 4,148 $ 33,176 $ 32,011 Public health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,445 56,376 19,069 20,656 Public welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,135 10,962 3,173 3,005 Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,297 1,550 5,747 5,554 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,142 3,562 7,580 6,770 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,812 6,661 11,151 11,083 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 163,155 $ 83,259 $ 79,896 $ 79,079 Business-Type Activities The cost of all business-type activities this year was $24.4 billion, an increase of $340 million over the $24 billion cost in 2018 (Table 2). Increases in spending for SUNY hospitals and clinics, and other operating and non-operating expenses, along with increases in CUNY Senior Colleges’ educational and general expenses and increases in Lottery prizes and commissions and fees, were partially offset by decreases in Unemployment Insurance Fund benefit payments. As shown in the Statement of Activities on page 36, the amount reported as transfers that governmental activities ultimately financed for business-type activities was $2.4 billion after activity costs were paid by those directly benefiting from the programs ($15.8 billion), and after grants and contributions ($5.6 billion). The increase in revenues from charges for services ($488 million) resulted primarily from Lottery ticket and video gaming sales and SUNY hospitals and clinics operating revenue. The increase in operating grants and contributions ($58 million) was due to increases in SUNY and CUNY Senior Colleges’ government grants and contracts revenues, which were partially offset by 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 38) reported a combined fund balance of $13.9 billion. Included in this year’s total change in fund balance is a deficit of $1.3 billion in the State’s General Fund, resulting from expenditures exceeding revenues by $27.4 billion, which was offset by net other financing sources of $26.1 billion to the General Fund. The General Fund reported increases in consumption and use taxes ($124 million) and business taxes ($526 million) offset by decreases in personal income taxes ($13.9 billion), other taxes ($296 million), and miscellaneous revenues ($934 million). Compared to the prior year, personal income tax revenue decreased due to an increase in the personal income tax allocation to debt service funds. The increase in business taxes is mainly due to higher gross receipts as many taxpayers are remitting more cash compared to last fiscal year, offset by lower audit collections. Total General Fund revenues decreased $14.5 billion, while expenditures increased $3.1 billion. Local assistance expenditures increased by $3.6 billion, due primarily to the timing of education assistance and public health expenditures. State operations expenditures decreased $503 million due to lower overall fringe benefits. The State ended the 2018-19 fiscal year with a General Fund accumulated fund balance of $3.4 billion.