[Cobo] FW: FY2003 Revenue Update

[Mauck, Sheri]

>  -----Original Message-----
> From: 	Chambless, Mike  
> Sent:	Tuesday, May 14, 2002 5:24 PM
> To:	Business Officers
> Cc:	Amanda Brinkley (E-mail); Arlan Hanson; Benny Dain (E-mail); Brandi Richardson; Cheryl Hudson; Cindy Boling (E-mail); David Koehn; Debbie Allen; Debra Masters (E-mail); Donna Nance; Dwayne Tate (E-mail); Greg Isaacs; Holli (E-mail); Joyce Garvie; Kathy Elliott; Kathy Walker; Kay Lynn Roberts; Kelly Snow; Kim Badger; Mark Jones; Mark Meadors; Ninette Carter (E-mail); Price Campbell (E-mail); Redlands Business Office; Robin Stroud; Sherry Glover; Tom Varner
> Subject:	FY2003 Revenue Update
> 
> Dear Business Officers:
> 
>  
> In light of the turbulent revenue situation for the current year, we offer some comments that may assist you in planning for May and June cash management.
> 
> On Tuesday, May 14th the OSF announced additional reductions in general revenue appropriations equivalent to an annualized reduction of 3.91 percent.  
> 
> In addition to the 3.91 percent reduction from general revenues, there is also a potential $18,298,508 or 20.8% percent reduction from gross production oil revenues (note: the OSF estimated shortfall is $13.9, an optimistic number).  The reduction in general revenues and the reduction of other sources totals a potential total reduction of 5.4 percent in state appropriations for FY2002. 
> 
> A proposed supplemental increase of $13.8million for FY2003 may reduce the overall cash reduction to approximately 3.8 percent.  We should know something about the supplemental bill by the end of this week. 
> 
> To make matters potentially worse, OSF in today's press release stated that June allotments will be limited to May cash collections.  This could make the final reductions in state appropriations greater than the percentages described above.
> 
> Bottom line:  Plan on an annualized reduction in your state appropriations allotments from all sources of a minimum 3.8%.  Be prepared to see a shortfall by as much as 5.4 percent, assuming OSF's forecast for May is correct.
> 
> FY03:  We are still looking at an appropriation reduction equivalent to 1.7% from the beginning FY02 base allocation.  The experience of this year's revenue situation would suggest that we budget a "shortfall reserve."
> 
>