Institutional Federal Compliance Report 2021

88 • Notes to Basic Financial Statements __________________________________________________________________________

legislation required that deposits continue to be made to the RBTF 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. Effective April 1, 2018 enacted legislation amends the State Finance Law provisions to increase the level of personal income tax receipts to be deposited into the RBTF to 50 percent for the purposes of making debt service payments on PIT bonds. The legislation also provides that personal income tax receipts and employer compensation expense program receipts continue to be deposited to the RBTF equal to 40 percent of the aggregate annual personal income tax receipts and the employer compensation expense program receipts or $12 billion, whichever is greater. The first PIT bonds were issued on May 9, 2002 and approximately $34.9 billion issued for both governmental and business- type activities were outstanding as of March 31, 2019. Public Benefit Corporations: Dormitory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Environmental Facilities Corporation . . . . . . . . . . . . . . . . . . . . Housing Finance Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Government Assistance Corporation . . . . . . . . . . . . . . . Municipal Bond Bank Agency . . . . . . . . . . . . . . . . . . . . . . . . . . Metropolitan Transportation Authority . . . . . . . . . . . . . . . . . . . Thruway Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Urban Development Corporation . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Debt service expenditures (principal and interest) for the aforementioned obligations during the fiscal year were $4.4 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 $75.2 million ($36.5 million related to governmental activities and $38.7 million for business- type activities related to SUNY and CUNY). 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025-2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2030-2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2035-2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2040-2044 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2045-2049 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Issuer Fiscal Year

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 $10.4 billion issued for both governmental and business-type activ- ities were outstanding as of March 31, 2019. Changes in lease/purchase and other financing arrangements for the year were as follows (amounts in millions):

Outstanding April 1, 2018

Outstanding March 31, 2019

Issued

Redeemed

16,601 $

4,380 $

1,542 $

19,439

64 167

—00000 —00000 —00000 —00000 —00000 —00000

32 38

32 129

1,370 172

175 33 34 481

1,195 139

34

—00000

3,109 13,474

2,628 13,318 36,880

1,505

1,661

34,991 $

5,885 $

3,996 $

Certain of the underlying bond indentures require the maintenance of various reserves. Such amounts totaled $154 million at March 31, 2019 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. Following is a summary of the future minimum rental payments for lease/purchase and contractual obligation financing arrangements, including fixed rate interest at rates ranging from 1.1 percent to 6.1 percent and variable rate interest at rates ranging from 1.5 percent to 2.2 percent (amounts in millions): Net Swap

Principal

Interest

Amount

Total

2,871 $

1,722 $

16 $

4,609 5,049 4,153 3,819 3,485 14,712 9,211 4,481 2,012 1,138 52,669

3,458 2,709 2,493 2,272 10,192 6,847 3,427 1,584 1,027

1,576 1,431 1,315 1,203 4,491 2,357 1,054 428 111

15 13 11 10 29

7

—00000 —00000 —00000

36,880 $

15,688 $

101 $