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



AGENCY SUMMARY
  General Fund                  51,473,500    51,473,500            0    0.00%
  Special Rev.-Fed.                604,700       724,000      119,300   19.73%
  Fiduciary                        600,000    26,600,000   26,000,000 4333.33%
  Total for AGENCY SUMMARY:     52,678,200    78,797,500   26,119,300   49.58%


STATE OPERATIONS
  General Fund                   7,473,500     7,473,500            0    0.00%
  Special Rev.-Fed.                469,700       539,000       69,300   14.75%
  Fiduciary                        400,000    26,400,000   26,000,000 6500.00%
  Total for STATE OPERATIONS:    8,343,200    34,412,500   26,069,300  312.46%

Administration
  General Fund                   5,296,000     5,296,000            0    0.00%
  Special Rev.-Fed.                469,700       539,000       69,300   14.75%
  Fiduciary                        400,000       400,000            0    0.00%
  Total for Program:             6,165,700     6,235,000       69,300    1.12%

Empire State Performing Arts Center Corporation
  General Fund                     567,000       567,000            0    0.00%
  Total for Program:               567,000       567,000            0    0.00%

NYS Theatre Institute
  General Fund                   1,610,500     1,610,500            0    0.00%
  Total for Program:             1,610,500     1,610,500            0    0.00%

New York Institute for Cultural Education
  Fiduciary                              0    26,000,000   26,000,000     --  
  Total for Program:                     0    26,000,000   26,000,000     --  

AID TO LOCALITIES
  General Fund                  44,000,000    44,000,000            0    0.00%
  Special Rev.-Fed.                135,000       185,000       50,000   37.04%
  Fiduciary                        200,000       200,000            0    0.00%
  Total for AID TO LOCALITIES:  44,335,000    44,385,000       50,000    0.11%

Administration
  General Fund                  44,000,000    44,000,000            0    0.00%
  Special Rev.-Fed.                135,000       185,000       50,000   37.04%
  Fiduciary                        200,000       200,000            0    0.00%
  Total for Program:            44,335,000    44,385,000       50,000    0.11%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration                          57            55      (2)

Total General Fund :                    48            46      (2)
Total All Other Funds :                  9             9        0

TOTAL:                                  57            55      (2)
                                                                    
                                                                    
       

                          BUDGET HIGHLIGHTS
                     (Executive Budget: pp. 5-9)

The New York State Council on the Arts (NYSCA) is responsible for
stimulating the performing and fine arts in New York State.  The
Council works to expand and encourage cultural resources and promote
interest in the arts in the State.  The Council is also responsible
for administering grants to local not-for-profit arts organizations.

The Council's budget is included in the Education, Labor and Family
Assistance appropriation bill.

State Operations

The Executive recommends total General Fund appropriations of
$5,296,000 for the Administration Program, reflecting no change from
SFY 2001-02 levels.  However, in SFY 2001-02, the Executive
transferred $380,000 from the State Education Department to the
Council on the Arts Administration Program to support costs associated
with relocation and renovation of Council office space as well as for
contractual increases in rent.  Within the Administration Program, the
Executive proposes a Special Revenue Federal Fund increase of $ 69,300
to reflect an increase in the Arts in Education grant. 

The Governor proposes maintaining at $400,000 the Fiduciary Fund
appropriation that provides the Council with authorization to spend
revenues it receives from arts license plates, as well as gifts and
donations.

The Executive proposes maintaining a General Fund appropriation of
$567,000 for the Empire State Plaza Performing Arts Center Corporation
Program, reflecting no change from SFY 2001-02 levels.

The Governor proposes maintaining the General Fund appropriation of
$1,610,500 for the New York State Theatre Institute, reflecting no
change from SFY 2001-02 levels.

The Executive recommends a new $26,000,000 Fiduciary Fund
appropriation for the New York Institute for Cultural Education
Program, to be supported by a proposed increase from $5 to $20 in the
existing State surcharge imposed by county clerks for filing,
recording and certifying records.  Monies deposited in this Fund would
be available to support the Executive's proposed new public benefit
corporation, the New York Institute of Cultural Education (NYICE).

Aid to Localities

The Governor recommends a General Fund appropriation of $44,000,000
in the Administration Program, reflecting no change from SFY 2001-02
levels.  The Executive includes appropriation language to allow the
use of:

--     Up to $37,300,000 for State assistance for nonprofit cultural
       organizations offering services to the general public, includ-
       ing but not limited to orchestras, dance companies, museums and
       theatre groups;

--     Up to $3,000,000 for a State/local partnership including
       activities related to the decentralization program;

--     Up to $5,000,000 for nonprofit cultural organizations and
       botanical gardens, zoos and aquariums offering programs of arts
       related education for elementary and secondary school pupils;
       and

--     Up to $1,100,000 for capital grants pursuant to Section 3.07 of
       the Arts and Cultural Affairs Law.

Article VII Proposals

The Executive proposes the creation of a new public benefit corpora-
tion, the New York Institute of Cultural Education (NYICE) with the
central mission of enriching the State's cultural resources.  NYICE
will administer programs for the preservation, development and
promotion of New York's cultural resources, including the State
Museum, the State Library and the State Archives.  These programs are
currently administered by the State Education Department (SED).  In
addition, 446 staff will be transferred from the State Education
Department to NYICE.
   
The Executive recommends a new $26,000,000 Fiduciary Fund appropria-
tion for the services and expenses of NYICE. This Fund will be
supported by a proposed increase in an existing State surcharge from
$5 to $20.  The existing surcharge is imposed on the filing, recording
and certifying of records by county clerks.  In addition, NYICE would
have the authority to impose fees.  Separate transitional funding is
provided in SED to support the programs that are proposed to be
transferred on July 1, 2002, when NYICE would assume responsibility
for these programs.  NYICE would be governed by a 15 member board,
with eight appointed by the Governor, two each by the Senate and
Assembly Majorities and one each by the Senate and Assembly Minori-
ties, and one by the Board of Regents, to serve five year terms.

Responsibility for chartering museums and libraries and licensing of
public television stations would remain with SED.