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



AGENCY SUMMARY
  General Fund                 301,007,000   315,007,000   14,000,000    4.65%
  Special Rev.-Fed.                572,000       572,000            0    0.00%
  Special Rev.-Other            36,842,000    40,644,000    3,802,000   10.32%
  Internal Service Fund         67,975,000    76,185,400    8,210,400   12.08%
  Total for AGENCY SUMMARY:    406,396,000   432,408,400   26,012,400    6.40%


STATE OPERATIONS
  General Fund                 301,007,000   315,007,000   14,000,000    4.65%
  Special Rev.-Fed.                572,000       572,000            0    0.00%
  Special Rev.-Other            36,842,000    40,644,000    3,802,000   10.32%
  Internal Service Fund         67,975,000    76,185,400    8,210,400   12.08%
  Total for STATE OPERATIONS:  406,396,000   432,408,400   26,012,400    6.40%

Administration
  General Fund                   5,609,000     5,609,000            0    0.00%
  Total for Program:             5,609,000     5,609,000            0    0.00%

Counsel
  General Fund                   5,184,000     5,184,000            0    0.00%
  Total for Program:             5,184,000     5,184,000            0    0.00%

Tax Policy and Analysis
  General Fund                   2,230,000     2,230,000            0    0.00%
  Total for Program:             2,230,000     2,230,000            0    0.00%

Tax Enforcement
  General Fund                  12,836,000    12,836,000            0    0.00%
  Special Rev.-Fed.                572,000       572,000            0    0.00%
  Total for Program:            13,408,000    13,408,000            0    0.00%

Tax Compliance
  General Fund                  33,006,000    33,006,000            0    0.00%
  Special Rev.-Other             2,000,000     4,000,000    2,000,000  100.00%
  Total for Program:            35,006,000    37,006,000    2,000,000    5.71%

Treasury Management
  Special Rev.-Other             2,154,000     2,255,000      101,000    4.69%
  Total for Program:             2,154,000     2,255,000      101,000    4.69%

Revenue Support Services
  General Fund                  31,216,000    34,216,000    3,000,000    9.61%
  Total for Program:            31,216,000    34,216,000    3,000,000    9.61%

Audit
  General Fund                 109,397,000   109,397,000            0    0.00%
  Total for Program:           109,397,000   109,397,000            0    0.00%

Revenue and Information Management
  General Fund                  89,362,000   100,362,000   11,000,000   12.31%
  Special Rev.-Other            32,688,000    34,389,000    1,701,000    5.20%
  Total for Program:           122,050,000   134,751,000   12,701,000   10.41%

Taxpayer Services
  General Fund                   9,841,000     9,841,000            0    0.00%
  Total for Program:             9,841,000     9,841,000            0    0.00%

Office of Conciliation and Mediation
  General Fund                   2,326,000     2,326,000            0    0.00%
  Total for Program:             2,326,000     2,326,000            0    0.00%

Banking Services
  Internal Service Fund         67,975,000    76,185,400    8,210,400   12.08%
  Total for Program:            67,975,000    76,185,400    8,210,400   12.08%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration                          90            90        0
Counsel                                 75            75        0
Tax Policy and Analysis                 34            34        0
Tax Enforcement                        195           195        0
Tax Compliance                         794           794        0
Treasury Management                     36            36        0
Revenue Support Services                68            68        0
Audit                                1,883         1,883        0
Revenue and Information   
  Management                         1,982         1,982        0
Taxpayer Services                      129           129        0
Office of Conciliation and   
  Mediation                             34            34        0

Total General Fund :                 4,896         4,896        0
Total All Other Funds :                424           424        0

TOTAL:                               5,320         5,320        0
                                                                    
                                                                    
       

                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 241-245)

The Department of Taxation and Finance is responsible for the State's
taxation administration, along with the administration of related
local taxes.  

This agency is included in the Transportation and Economic Development
appropriation bill.

State Operations

The Executive recommends General Fund support of $432,408,400 for
State Fiscal Year (SFY) 2002-03, an increase of $26,012,400 or 6.4
percent over SFY 2001-02.

The Executive recommends an increase of $8,210,400 in the Banking
Services Program.  This increase is attributable to increased costs
associated with the processing of Personal Income Tax and Corporate
Income Tax returns. 

The Executive recommends a total General Fund increase of $11,000,000
in the Revenue and Information Management Program in an effort to
upgrade two information systems.  The e*MPIRE program, which is an
information processing system, accounts for $8,000,000 and the Audit
Case Management System (ACMS or PASS program) will cost $3,000,000.

The Executive recommends a General Fund increase of $3,000,000 in the
Revenue Support Services Program.  This increase is a result of the
higher rent expenses associated with finding new facilities to replace
the office space lost in the destruction of the World Trade Center.

Article VII Proposals

The Executive has submitted Article VII bills that would transfer
$38,680,000 from the General Fund into the Banking Services Account
Internal Service Fund to make direct fee payments to vendors for State
tax processing services rendered in SFY 2001-02, and $45,600,000 to
make such payments in SFY 2002-03.