January 26, 2004

Dear Colleagues:

I am pleased to provide you with the Statistical and Narrative Summary of the Executive Budget for the upcoming State Fiscal Year, April 1, 2004 to March 31, 2005. The "Yellow Book" is intended to provide the Members of the Committee, the Members of the Assembly, and the public with an overview of the fiscal and policy proposals made by the Governor in the bills submitted as his Executive Budget on January 20, 2004.

The "Yellow Book" marks the beginning of the Legislature's public review of the Governor's proposed budget. It is the Assembly's preliminary response to the budget, as required by Section 53 of the Legislative Law. Joint legislative fiscal committee hearings on the budget proposal begin our efforts to ensure public accessibility and accountability. This year, these hearings commence on January 26, 2004 and conclude on February 11, 2004.

Section One, Overview of Executive Budget, provides an executive summary of the Governor's proposal for State Fiscal Year 2004-05, including analysis intended to place the proposed financial plan and spending in major programmatic areas in perspective.

Section Two, Summary of Recommended Appropriations by Agency, provides an overview of current appropriations and recommendations for the 2004-05 State Fiscal Year for each agency, a presentation of the proposed changes in each agency's budgeted personnel level, and a description of the programmatic and statutory modifications proposed in Article VII legislation included with the Executive Budget submission. Section Two has been redesigned to reflect the structure of the Executive Budget appropriation bills. Agencies are now presented in Section Two in alphabetical order within the appropriation bills in which they appear in the Governor's proposed budget.

Section Three, Detail of Appropriations and Personnel by Agency, has been added to this document to provide a breakdown of the agency summary tables contained in Section Two. The agency tables in Section Three are presented in the same order as the agencies appear in Section Two.

Speaker Silver and I know that you share our goal of producing a budget that is fair and equitable -- a budget that is not balanced to the detriment of our children, our working families, or our elderly and disabled. Despite the fiscal conditions we are faced with, we must not compromise the values we hold dear by jeopardizing the future of our children and our State with short-sighted, wrong choices. We must ensure a productive future by providing our children with a sound fundamental education, our families with access to health care and employment opportunities, and our elderly with the services they need to enable them to age with dignity.

As the Legislature begins its work on the State Fiscal Year 2004-05 Budget, I would like to express appreciation to my Assembly colleagues for the time and commitment you will dedicate to the budget process. I would also like to convey to the Ways and Means Committee staff my gratitude for their outstanding efforts to produce this document, which is a tremendous resource for the Members of the Assembly.

Sincerely,

HERMAN D. FARRELL, JR.