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



AGENCY SUMMARY
  General Fund                  16,025,500    18,283,000    2,257,500   14.09%
  Special Rev.-Fed.         15,038,312,300    40,882,000(14,997,430,300)-99.73%
  Special Rev.-Other            12,469,400    11,945,000     (524,400)  -4.21%
  Fiduciary                        572,000       572,000            0    0.00%
  Capital Projects Fund          6,300,000     8,100,000    1,800,000   28.57%
  Federal Capital Projects Fund  3,425,000    11,200,000    7,775,000  227.01%
  Total for AGENCY SUMMARY: 15,077,104,200    90,982,000(14,986,122,200)-99.40%


STATE OPERATIONS
  General Fund                  16,025,500    18,283,000    2,257,500   14.09%
  Special Rev.-Fed.             32,812,300    35,382,000    2,569,700    7.83%
  Special Rev.-Other            10,819,400    10,295,000     (524,400)  -4.85%
  Fiduciary                        572,000       572,000            0    0.00%
  Total for STATE OPERATIONS:   60,229,200    64,532,000    4,302,800    7.14%

Military Readiness
  General Fund                  10,446,100    12,116,000    1,669,900   15.99%
  Special Rev.-Fed.             20,832,800    22,827,000    1,994,200    9.57%
  Total for Program:            31,278,900    34,943,000    3,664,100   11.71%

Administration
  General Fund                   3,414,100     3,753,000      338,900    9.93%
  Total for Program:             3,414,100     3,753,000      338,900    9.93%

Special Services
  General Fund                     897,500     1,026,000      128,500   14.32%
  Special Rev.-Fed.              2,735,800     1,835,000     (900,800) -32.93%
  Special Rev.-Other             8,938,000     8,547,000     (391,000)  -4.37%
  Fiduciary                        572,000       572,000            0    0.00%
  Total for Program:            13,143,300    11,980,000   (1,163,300)  -8.85%

Disaster Assistance
  Special Rev.-Fed.              1,680,400     1,775,000       94,600    5.63%
  Total for Program:             1,680,400     1,775,000       94,600    5.63%

Emergency Management
  General Fund                   1,267,800     1,388,000      120,200    9.48%
  Special Rev.-Fed.              7,563,300     8,945,000    1,381,700   18.27%
  Special Rev.-Other             1,881,400     1,748,000     (133,400)  -7.09%
  Total for Program:            10,712,500    12,081,000    1,368,500   12.77%

AID TO LOCALITIES
  Special Rev.-Fed.         15,005,500,000     5,500,000(15,000,000,000)-99.96%
  Special Rev.-Other             1,650,000     1,650,000            0    0.00%
  Total for AID TO LOCALITIES:15,007,150,000   7,150,000(15,000,000,000)-99.95%

Disaster Assistance
  Special Rev.-Fed.         15,000,000,000             0(15,000,000,000)-100.00%
  Total for Program:        15,000,000,000             0(15,000,000,000)-100.00%

Emergency Management
  Special Rev.-Fed.              5,500,000     5,500,000            0    0.00%
  Special Rev.-Other             1,650,000     1,650,000            0    0.00%
  Total for Program:             7,150,000     7,150,000            0    0.00%

CAPITAL PROJECTS
  Capital Projects Fund          6,300,000     8,100,000    1,800,000   28.57%
  Federal Capital Projects Fund  3,425,000    11,200,000    7,775,000  227.01%
  Total for CAPITAL PROJECTS:    9,725,000    19,300,000    9,575,000   98.46%

Design and Construction Supervision
  Capital Projects Fund          1,000,000     1,900,000      900,000   90.00%
  Federal Capital Projects Fund    275,000     2,700,000    2,425,000  881.82%
  Total for Program:             1,275,000     4,600,000    3,325,000  260.78%

Maintenance and Improvement of Existing Facilities
  Capital Projects Fund          5,300,000     6,200,000      900,000   16.98%
  Federal Capital Projects Fund  3,150,000     8,500,000    5,350,000  169.84%
  Total for Program:             8,450,000    14,700,000    6,250,000   73.96%

                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      Military Readiness               440           436      (4)
Administration                          62            62        0
Special Services                        48            48        0
Emergency Management                   103           103        0

Total General Fund :                   284           280      (4)
Total All Other Funds :                369           369        0

TOTAL:                                 653           649      (4)
                                                                    
                                                                    
       

                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 353-358)

The Division of Military and Naval Affairs (DMNA) supports a military
force ready to respond to civil emergencies and natural disasters at
the call of the Governor.  National Guard troops are also available
for national service at the call of the President.  DMNA General Fund
spending primarily covers the administration and operational expenses
of the State's 60 armories and an estimated 18,000 New York-based
National Guard troops.  DMNA is also charged, through the State
Emergency Management Office, with the coordination of the State's
response to natural and man-made disasters.

This agency is included in the Public Protection and General
Government budget bill.

The Executive recommends an All Funds appropriation of $90,982,000,
which reflects a net decrease of $14,986,122,200 over the current year
spending level. This reflects an increase of $4,302,850 in State
Operations and a reduction of $15,000,000,000 in Aid to Localities
related to the Disaster Assistance Program.

The Executive recommends five Armory closures. This action will result
in the elimination of 2 full-time equivalent (FTE) positions, which
will be achieved through attrition in State Fiscal Year (SFY) 2002-03.

State Operations

The Governor proposes a General Fund appropriation of $18,283,000 for
SFY 2002-03, representing a net increase of $2,257,500 or 14.1 percent
over the prior year.  This increase reflects the following actions:

--     a $2,275,000 net increase reflecting 2001-02 General Fund
       appropriation deficiency for the Agency.  These funds are
       needed to support the Agency's non-discretionary current year
       spending associated with such items as non-personal service
       expenses mandated by State/Federal master cooperative
       agreements and energy costs. 

--     a $2,598,000 net increase in State Operations funds to reflect
       salary adjustments and other costs pertaining to agency
       operations;

--     a $180,000 decrease in funding reflecting the Executive
       proposal to close five armories in the State. The armories
       targeted for closure in SFY 2002-03 are: Malone (Franklin
       County); Oneonta (Otsego County); Syracuse, East Genesee Street
       (Onondaga County); Ticonderoga (Essex County); and Tonawanda
       (Erie County).  A total annualized cost saving of $240,000 is
       expected to be realized from these five closures.  The
       selection of the armories for closure was based on several
       criteria including the age and physical condition of the
       building, geographical location of the affected armory,
       assigned troop strength, cost of operation as well as interest
       of the community to convert the armory to civilian use.  Two
       FTE positions are eliminated through attrition as a result of
       these proposed closings. The employees assigned to the armories
       will be offered employment at other facilities. A total of 70
       armories have been selected by the Agency for closure in the
       next several years.

--     a $161,000 decrease in funding reflecting efficiency gains and
       savings realized by agency management. Two FTE positions will
       be eliminated as a consequence of these savings.    

Aid to Localities

The Executive recommends $7,150,000 in Aid to Localities funding
comprised of a $5,500,000 Special Revenue Funds Federal appropriation
and $1,650,000 in Special Revenue Funds Other.  This reflects a
decrease o $15,000,000,000 from SFY 2001-02, which is included in the
deficiency appropriation or payment of the Federal government's share
of the costs resulting from the World Trade Center attacks.

Capital Projects

The Governor recommends a Capital Projects Budget of $19,300,000,
reflecting a $9,575,000 increase which almost doubles the funding
level from the current year.  These funds will be utilized for design
and construction related activities, and to continue the maintenance
and improvement of existing facilities, including the rehabilitation
of armories as part of a seven year Federal military construction plan
to replace or expand armories across the State.

Article VII Proposal

The Executive proposes Article VII legislation which:

--     Expands designated acceptable uses of surplus armories that are
       transferred to local municipalities to include governmental
       purposes.