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



AGENCY SUMMARY
  General Fund                  46,500,000    38,465,000   (8,035,000) -17.28%
  Special Rev.-Fed.              1,000,000     1,000,000            0    0.00%
  Special Rev.-Other             4,339,900     4,409,900       70,000    1.61%
  Total for AGENCY SUMMARY:     51,839,900    43,874,900   (7,965,000) -15.36%


STATE OPERATIONS
  General Fund                  36,226,000    28,191,000   (8,035,000) -22.18%
  Special Rev.-Fed.              1,000,000     1,000,000            0    0.00%
  Special Rev.-Other             4,339,900     4,409,900       70,000    1.61%
  Total for STATE OPERATIONS:   41,565,900    33,600,900   (7,965,000) -19.16%

Administration
  General Fund                   3,360,000     3,321,000      (39,000)  -1.16%
  Special Rev.-Other             1,739,900     1,739,900            0    0.00%
  Total for Program:             5,099,900     5,060,900      (39,000)  -0.76%

Economic Development
  General Fund                  14,500,000    14,352,000     (148,000)  -1.02%
  Special Rev.-Fed.              1,000,000     1,000,000            0    0.00%
  Special Rev.-Other             1,100,000     1,170,000       70,000    6.36%
  Total for Program:            16,600,000    16,522,000      (78,000)  -0.47%

Marketing and Advertising
  General Fund                  18,366,000    10,518,000   (7,848,000) -42.73%
  Special Rev.-Other             1,000,000     1,000,000            0    0.00%
  Total for Program:            19,366,000    11,518,000   (7,848,000) -40.52%

Clean Air
  Special Rev.-Other               500,000       500,000            0    0.00%
  Total for Program:               500,000       500,000            0    0.00%

AID TO LOCALITIES
  General Fund                  10,274,000    10,274,000            0    0.00%
  Total for AID TO LOCALITIES:  10,274,000    10,274,000            0    0.00%

Economic Development
  General Fund                   4,097,000     4,097,000            0    0.00%
  Total for Program:             4,097,000     4,097,000            0    0.00%

Marketing and Advertising
  General Fund                   6,177,000     6,177,000            0    0.00%
  Total for Program:             6,177,000     6,177,000            0    0.00%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration                          58            56      (2)
Economic Development                   148           143      (5)
Marketing and Advertising               42            41      (1)
Clean Air                                5             5        0

Total General Fund :                   239           231      (8)
Total All Other Funds :                 14            14        0

TOTAL:                                 253           245      (8)
                                                                    
                                                                    
       




                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 175-180)

The mission of the Department of Economic Development (DED) is to
develop economic development strategies for businesses.  The
Department in conjunction with the Urban Development Corporation,
administers State economic development programs.

The Department is included in the Transportation and Economic
Development appropriation bill.

State Operations

The Executive recommends a General Fund appropriation for State Fiscal
Year (SFY) 2002-03 of $28,191,000, a decrease of $8,035,000 from SFY
2001-02 funding levels.  The decrease includes recommended reductions
in the Marketing and Advertising Program totaling $7,815,000 for
nonpersonal service, including $3,315,000 for Tourism Marketing and
$4,500,000 due to the elimination of the Business Marketing Program. 
The Executive's proposed reduction in the Tourism Marketing Program
reflects the fact that in October 2001 the Governor announced a
$40,000,000 coordinated advertising campaign to encourage business
travelers and tourists to come back to New York after the September
11th terrorist attack.  The funding for this initiative was shared
equally between the Port Authority of New York and New Jersey and the
State of New York. The State's share was funded from the Miscellaneous
All State Departments and Agencies $500,000,000 appropriation which
was enacted as Chapter 296 of the Laws of 2001.  Although the funding
for this initiative is not included in the Department of Economic
Development, the initiative is being administered in conjunction with
Marketing and Advertising Program.  In addition, the Executive
recommends a reduction in the Department's workforce of 8 positions to
be achieved through attrition.  This results in General Fund personal
service savings of $220,000.

The Executive maintains funding for the following programs at the
prior year level for the Local Tourism Promotion Matching Grants
Program and the International Trade Promotion Program.

The Executive recommends Special Revenue Other Fund appropriations of
$1,170,000, reflecting an increase of $70,000 for the Minority and
Women's Business Development Account. 

The Executive requests reappropriations totaling $13,975,000.

Aid to Localities

The Executive recommends a General Fund appropriation of $10,274,000,
reflecting no change from SFY 2001-02.  

Funding for the following Programs are maintained at SFY 2001-02
levels:  

-- Empire Zones Local Administration              $3,320,000
-- Local Tourism Matching Grants                  $5,777,000
-- New York City Watershed Program                  $600,000
-- Adirondack North Country Association             $177,000
-- Gateway Information Center at Binghamton         $200,000
-- Gateway Information Center at Beekmantown        $200,000

The Executive requests reappropriations totaling $13,287,000.

Article VII Proposals

The Executive recommends a proposal to expand the Excelsior Linked
Deposit Program from $200,000,000 to $300,000,000.  The proposal
increases the amount of State funds the State Comptroller is
authorized to invest in linked deposits to $250,000,000.  The linked
deposit authorization for public authorities remains flat at
$50,000,000.  This Program provides access to capital through low cost
loans for start-up costs and small businesses.

The Executive proposes legislation that will allow for the immediate
designation of four additional Empire Zones, for a total of sixty-six
Zones.  In 2001, a total of fourteen zones were designated, with the
final four Zone designations subject to future legislative action. 
This proposal would repeal the requirement that these four additional
Empire Zones can only be designated pursuant to the passage of a
future Chapter Law.