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


AGENCY SUMMARY
  General Fund                  65,716,000    65,487,000     (229,000)  -0.35%
  Special Rev.-Fed.            106,650,000   115,850,000    9,200,000    8.63%
  Fiduciary                      2,500,000     1,250,000   (1,250,000) -50.00%
  Enterprise                       200,000       100,000     (100,000) -50.00%
  Total for AGENCY SUMMARY:    175,066,000   182,687,000    7,621,000    4.35%


STATE OPERATIONS
  General Fund                   2,816,000     2,587,000     (229,000)  -8.13%
  Special Rev.-Fed.             10,150,000    10,250,000      100,000    0.99%
  Fiduciary                        500,000       250,000     (250,000) -50.00%
  Enterprise                       200,000       100,000     (100,000) -50.00%
  Total for STATE OPERATIONS:   13,666,000    13,187,000     (479,000)  -3.51%

Administration
  General Fund                   1,322,000             0   (1,322,000)-100.00%
  Special Rev.-Fed.              2,700,000     1,400,000   (1,300,000) -48.15%
  Enterprise                       200,000             0     (200,000)-100.00%
  Total for Program:             4,222,000     1,400,000   (2,822,000) -66.84%

Community Services
  General Fund                   1,494,000             0   (1,494,000)-100.00%
  Special Rev.-Fed.              7,450,000     3,960,000   (3,490,000) -46.85%
  Fiduciary                        500,000             0     (500,000)-100.00%
  Total for Program:             9,444,000     3,960,000   (5,484,000) -58.07%

Administration and Grants Management
  General Fund                           0     2,587,000    2,587,000     --  
  Special Rev.-Fed.                      0     4,890,000    4,890,000     --  
  Fiduciary                              0       250,000      250,000     --  
  Enterprise                             0       100,000      100,000     --  
  Total for Program:                     0     7,827,000    7,827,000     --  

AID TO LOCALITIES
  General Fund                  62,900,000    62,900,000            0    0.00%
  Special Rev.-Fed.             96,500,000   105,600,000    9,100,000    9.43%
  Fiduciary                      2,000,000     1,000,000   (1,000,000) -50.00%
  Total for AID TO LOCALITIES: 161,400,000   169,500,000    8,100,000    5.02%

Community Services
  General Fund                  62,900,000    62,900,000            0    0.00%
  Special Rev.-Fed.             96,500,000   105,600,000    9,100,000    9.43%
  Fiduciary                      2,000,000     1,000,000   (1,000,000) -50.00%
  Total for Program:           161,400,000   169,500,000    8,100,000    5.02%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration                          61             0     (61)
Community Services                      92             0     (92)
Administration and Grants   
  Management                             0           150      150

Total General Fund :                    45            42      (3)
Total All Other Funds :                108           108        0

TOTAL:                                 153           150      (3)
                                                                    
                                                                    
       


                          BUDGET HIGHLIGHTS
                    (Executive Budget: pp. 91-95)

The New York State Office for the Aging (SOFA) is the State agency
designated with the responsibility for coordinating and administering
Federal, State, and local programs and services for the more than 3.2
million State residents who are sixty years of age or older.  The
mission of SOFA is to help older New Yorkers remain as independent as
possible for as long as possible through effective advocacy efforts,
policies, and programs, as well as through the efficient delivery of
services directed toward this population.

This agency is included in the Health, Mental Hygiene and
Environmental Conservation appropriation bill.

The Executive recommends an All Funds appropriation of $182,687,000,
a net increase of $7,621,000, or 4.4 percent, which is primarily due
to an increase in Federal funds. 

State Operations

The Executive recommends a total State Operations General Fund
appropriation of $2,587,000, a net decrease of $229,000 from State
Fiscal Year (SFY) 2001-02. This recommendation is attributed to
savings from attrition and the elimination of vacant positions, and
certain reductions in nonpersonal services offset by increases for
salary adjustments and inflationary increases in nonpersonal services.

In order to maximize administrative efficiencies within the agency,
the Executive proposes to consolidate the administrative functions of
the Administration Program and the Community Services Program into one
new program; the Administration and Grants Management Program. 
Funding for the new program reflects combined General Fund
appropriations from the two former programs. 

Aid to Localities

The Executive recommends a total Aid to Localities General Fund
appropriation of $62,900,000, level funding from State Fiscal Year
(SFY) 2001-02. The Executive does not propose any increases for Aid
to Localities General Fund programs, which means flat funding for such
worthwhile programs as the Community Services for the Elderly (CSE)
Program, the Expanded In-Home Services for the Elderly Program
(EISEP), and the Supplemental Nutrition Assistance Program (SNAP).

The Executive recommends a total Special Revenue Fund Federal Aid to
Localities appropriation of $105,600,000, which reflects an increase
of $9,100,000 in Federal funding over State Fiscal Year (SFY) 2001-02.
This increase is being proposed in anticipation of additional Federal
funds that will be made available to the State for aging programs,
including the National Family Caregiver Support Program.

Although not administered by the State Office for the Aging, the
Elderly Pharmaceutical Insurance Coverage (EPIC) Program is of special
interest to the senior community.  In January 2002, the Legislature
passed a major health care package, (A.9610/S.6084), which expanded
the Health Care Reform Act 2000 (HCRA 2000) and implemented, among
other things, various changes to the EPIC Program.  These changes,
which are expected to achieve savings of $33,600,000 for the EPIC
program in SFY 2002-03, include:

--     a reduction in the drug reimbursement rate for all pharmacies
       participating in the EPIC program to the Average Wholesale
       Price (AWP) minus 10 percent, similar to the Medicaid Program;

--     application of the same Consumer Price Index (CPI) methodology
       used in the Medicaid Program to EPIC drug rebates to mirror the
       Medicaid program; and 

--     a requirement that private health insurers match membership
       files with EPIC enrollee files to facilitate a coordination of
       benefits, effective April 1, 2002.