Chapter 53 of the Laws of 2022 (the “Aid to Localities Budget Bill”) requires amendments to the existing funding formula for State financial assistance for operating expenses of community colleges of the State and City Universities of New York, to allow for proper calculations of funding amounts for the 2022/23 academic year. The amended funding formula is to be developed jointly with the City University of New York, subject to the approval of the Director of the Budget. The Aid to Localities Budget Bill also increases the prior operating funding “floor” from a “98 percent floor” to a “100 percent floor”, which ensures that no community college will see a decline in Base Operating Aid on a year-to-year basis.

Amendments to the Code on an emergency basis for the 2022-2023 fiscal year are necessary to:

1. provide timely State operating assistance to public community colleges of the State and City Universities of New York; and

2. obtain the necessary revenue to maintain essential staffing levels, program quality, and accessibility.

Compliance with the provision of subdivision 1 of Section 202(6) of SAPA would be contrary to the public interest. The requirements of subdivision (1) of Section 202(6) of SAPA would not allow implementation of the State fiscal assistance provided in the Aid to Localities Budget Bill in time for the 2022-2023 community college fiscal year.

Section 602.8(c)

(c) Basic State financial assistance.

(1) Full opportunity colleges. The basic State financial assistance for community colleges, implementing approved full opportunity programs, shall be the lowest of the following:

(i) two-fifths (40%) of the net operating budget of the college, or campus of a multiple campus college, as approved by the State University trustees;

(ii) two-fifths (40%) of the net operating costs of the college, or campus of a multiple campus college; or

(iii) for the [2020/21] 2022/23 college fiscal year and thereafter, the total of the following:

(a) [In a year during which overall support to the SUNY System has increased on both a year-to-year basis and over a multi-year period, and the final enacted state budget adopts the one-time five (5) percent withhold already included from the 2020/21 Enacted Budget. Absent such action,] the greater of:

(1) the budgeted or actual number (whichever is less) of full-time equivalent students enrolled in programs eligible for State financial assistance multiplied by $2,997; or

(2) [98] 100 percent of the amount of basic State financial assistance for community colleges preliminarily approved by the State University of New York Trustees for the [2020/21] preceding academic year; and

(b) up to one half (50 percent) of rental costs for physical space.

(2) Non-full opportunity colleges. The basic State financial assistance for community colleges not implementing approved full opportunity programs shall be the lowest of the following:

(i) one third (33 percent) of the net operating budget of the college, or campus of a multiple campus college, as approved by the State University trustees;

(ii) one third (33 percent) of the net operating costs of the college, or campus of a multiple campus college; or

(iii) for the college fiscal year [2020/21] 2022/23 and thereafter, the total of the following:

(a) [In a year during which overall support to the SUNY System has increased on both a year-to-year basis and over a multi-year period, and the final enacted state budget adopts the one-time five (5) percent withhold already included from the 2020/21 Enacted Budget. Absent such action,] the greater of:

(1) the budgeted or actual number (whichever is less) of full-time equivalent students enrolled in programs eligible for State financial assistance multiplied by $2,497; or

(2) [98] 100 percent of the amount of basic State financial assistance for community colleges preliminarily approved by the State University of New York Trustees for the [2020/21] preceding academic year; and

(b) up to one half (50 percent) of rental cost for physical space.

(3) Notwithstanding the provisions of paragraphs (1) and (2) of this subdivision, a community college or a new campus of a multiple campus community college in the process of formation shall be eligible for basic State financial assistance in the amount of one-third of the net operating budget or one-third of the net operating costs, whichever is the lesser, for those colleges not implementing an approved full opportunity program plan, or two-fifths of the net operating budget or two-fifths of the net operating costs, whichever is the lesser, for those colleges implementing an approved full opportunity program, during the organization year and the first two fiscal years in which students are enrolled.

Section 602.13

(a) Pursuant to section 30 of the General Municipal Law, the annual financial report shall be certified by the chief fiscal officer of the college and shall be filed with the State Comptroller within 60 days after the close of the college fiscal year. The chief fiscal officer is the college treasurer for purposes of this certification.

(b) The annual financial report shall be in compliance with article 126 of the Education Law, this Subchapter, and the manual for community college business offices, and on the forms and in accordance with instructions promulgated by the State Comptroller.

(c) The State University of New York, which shall also receive copies of the annual financial report, shall review the annual financial report for the purpose of the initial determination of the State liability.

(d) Any overpayment in State financial assistance for operating costs, as determined in the review of the annual financial report, shall be deducted from the second quarterly advance payment of State aid for the succeeding college fiscal year provided, however, that [in a year during which overall support to the SUNY System has increased on both a year-to-year basis and over a multi-year period, and the final enacted state budget adopts the one-time five (5) percent withhold already included from the 2020/21 Enacted Budget, such adjustments shall be made in accordance with the actions taken by the State. Absent such action,] in no case shall the amount of basic State financial assistance for operating costs received in the [2021/22] 2022/23 academic year be less than [98] 100 percent of the amount of basic State financial assistance for operating costs [preliminarily] approved by the State University Board of Trustees for the [2020/21] preceding academic year, excluding any adjustments made for reimbursement for appropriate rental costs.

(e) Any underpayment in State financial assistance for operating costs, as determined in the review of the annual financial report, shall be processed in accordance with sections 602.3 and 602.9 of this Part.

(f) The college shall be subject to audit by the Office of the State Comptroller for the purpose of the final determination of the State liability.

This is a technical amendment to implement the provisions of the 2022/23 Enacted Budget bill. The amendment allows for the provision of State financial assistance for operating expenses of community colleges operating under the program of the State University of New York and the City University of New York.

This is a technical amendment to implement the provisions of the 2022-2023 Budget Bill. The amendment provides for the provision of State financial assistance for operating expenses of community colleges operating under the program of the State University of New York and the City University of New York. It will have no impact on small businesses and local governments.

This is a technical amendment to implement the provisions of the 2022-2023 Budget Bill. The amendment provides for the provision of State financial assistance for operating expenses of community colleges operating under the program of the State University of New York and the City University of New York. This rule making will have no impact on rural areas or the recordkeeping or other compliance requirements on public or private entities in rural areas.

No job impact statement is submitted with this notice because the adoption of this rule does not impose any adverse economic impact on existing jobs, employment opportunities, or self-employment. This rule making governs the financing of community colleges operating under the program of the State University and will not have any adverse impact on the number of jobs or employment opportunities in the state.