(a) On or before the date prescribed by the Chancellor of State University or designee, the college shall file the college operating budget request with State University for the college fiscal year commencing on July 1st or September 1st.

(b) Prior to filing the operating budget request with the State University of New York, the sponsor's contribution and budget total shall have been approved by the college trustees and the sponsor, and the request shall contain evidence of such approval.

(c) The State University trustees shall take appropriate action relative to the total operating budget and the State financial assistance, subject to the availability of funds appropriated by the Legislature therefor.

(d) Should the State University trustees and/or the local sponsor fail to approve the budget submitted by the college trustees, the college trustees shall request the Chancellor of State University or designee to arrange for a conference to include representatives of the three bodies to produce agreement on the amount of the budget.

(e) Any needed adjustments in the budget that might result from the outcome of the foregoing negotiations shall be made by the college trustees and within the total amount of funds agreed upon.