Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change



AGENCY SUMMARY
  General Fund                 682,541,000   539,257,000 (143,284,000) -20.99%
  Special Rev.-Fed.              7,400,000    10,748,000    3,348,000   45.24%
  Special Rev.-Other            90,669,000   106,964,000   16,295,000   17.97%
  Total for AGENCY SUMMARY:    780,610,000   656,969,000 (123,641,000) -15.84%


STATE OPERATIONS
  General Fund                   9,593,000    11,309,000    1,716,000   17.89%
  Special Rev.-Fed.              5,000,000     5,532,000      532,000   10.64%
  Special Rev.-Other            83,669,000    99,964,000   16,295,000   19.48%
  Total for STATE OPERATIONS:   98,262,000   116,805,000   18,543,000   18.87%

Administration
  General Fund                   5,006,000     6,471,000    1,465,000   29.26%
  Special Rev.-Other            34,422,000    49,958,000   15,536,000   45.13%
  Total for Program:            39,428,000    56,429,000   17,001,000   43.12%

Guaranteed Loan Programs
  Special Rev.-Fed.              5,000,000     5,532,000      532,000   10.64%
  Special Rev.-Other            49,247,000    50,006,000      759,000    1.54%
  Total for Program:            54,247,000    55,538,000    1,291,000    2.38%

Grants and Scholarships
  General Fund                   4,587,000     4,838,000      251,000    5.47%
  Total for Program:             4,587,000     4,838,000      251,000    5.47%

AID TO LOCALITIES
  General Fund                 672,948,000   527,948,000 (145,000,000) -21.55%
  Special Rev.-Fed.              2,400,000     5,216,000    2,816,000  117.33%
  Special Rev.-Other             7,000,000     7,000,000            0    0.00%
  Total for AID TO LOCALITIES: 682,348,000   540,164,000 (142,184,000) -20.84%

Scholarships and Fellowships
  General Fund                  21,918,000    21,918,000            0    0.00%
  Special Rev.-Other             7,000,000     7,000,000            0    0.00%
  Total for Program:            28,918,000    28,918,000            0    0.00%

State Grant Programs
  General Fund                 636,400,000   491,400,000 (145,000,000) -22.78%
  Special Rev.-Fed.              2,400,000     5,216,000    2,816,000  117.33%
  Total for Program:           638,800,000   496,616,000 (142,184,000) -22.26%

Tuition Awards for Part-Time Students
  General Fund                  14,630,000    14,630,000            0    0.00%
  Total for Program:            14,630,000    14,630,000            0    0.00%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration                         290           290        0
Guaranteed Loan Programs               442           442        0
Grants and Scholarships                 93            93        0

Total General Fund :                   137           137        0
Total All Other Funds :                688           688        0

TOTAL:                                 825           825        0
                                                                    
                                                                    
       

                          BUDGET HIGHLIGHTS
                    (Executive Budget: pp. 51-56)

The Higher Education Services Corporation administers the State's
Tuition Assistance Program (TAP), the Federal Family Education Loan
Program and other State and Federal aid programs.

The Higher Education Services Corporation is located in the Education,
Labor and Family Assistance appropriation bill.

State Operations

The Executive recommends a total State Operations appropriation of
$116,805,000 for the Corporation. This represents a net increase of
$18,543,000 or 18.9 percent over State Fiscal Year (SFY) 2001-02
levels.  This reflects an increase of $532,000 in federally supported
State Operations, a $16,295,000 increase in State Operations supported
through special revenue funds due mainly to a new $10,000,000
Maintenance Undistributed appropriation for a new financial aid
computer system, and $4,800,000 associated with contractual increases
for the Office for Technology, and an increase in State Operations
supported by the General Fund of $1,716,000 or 17.9 percent.  This
reflects additional costs associated with the administration of the
Executive's proposed new TAP Loan Program, a new World Trade Center
Memorial Scholarship and additional costs associated with the
installation of a new computer system.

Aid to Localities

The Executive provides an All Funds Aid to Localities appropriation
of $540,164,000 reflecting a net decrease of $142,184,000 below SFY
2001-02 levels. This includes an appropriation of $481,400,000 in
support of the TAP Program. This represents a reduction of
$235,000,000 from current law projections of the cost of TAP during
the 2002-03 Academic Year.  In addition, the Executive proposes to
fund $345,000,000 of the total TAP expenditures through a transfer of
funds from the Temporary Assistance for Needy Families (TANF) Program.

The Executive's proposal would alter the TAP Program by creating two
components of the TAP Award that students could potentially receive.
First, students would be eligible to receive a TAP Base Award which
is equivalent to only two-thirds of what current law would provide. 
Students would then be required to self-finance the remaining one-
third of their TAP Award through Federal and State student-loan
programs. Upon the completion of an approved college degree program,
students then would become eligible to receive a TAP Performance Award
equal to the one-third up-front reduction they received to their TAP
award inclusive of accrued interest that resulted from the need to
enter into additional student loans.

In addition, the Executive proposes to create a new TAP Loan Program
of $10,000,000 to ensure that students that have exhausted their
Federal student loan eligibility will have the ability to access
necessary student loans through this newly created state loan program. 
 

The Executive maintains funding for the Scholarships for Academic
Excellence Program at the SFY 2001-02 level of $14,000,000.

The Executive maintains funding for the Aid To Part-Time Study Program
at the SFY 2001-02 level of $14,630,000.

Article VII Proposals

The Executive proposal includes language providing for the
implementation of the one-third reduction of all TAP Awards, the
creation of a new TAP Performance Award, and the creation of a new TAP
Loan Program.

In addition, the Executive proposal includes language that will enable
students to apply for TAP on the internet by modifying requirements
for signature and affirmation of statements of income used in the
determination of financial aid eligibility.

Finally, the Executive has proposed language to establish the World
Trade Center Memorial Scholarship Program.  This Program would provide
a tuition scholarship equivalent to the total cost of attending an
institution of the State University of New York or the City University
of New York.  Eligible recipients include spouses, children and
financial dependents of those who died or were disabled as a result
of the September 11th tragedy.