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



AGENCY SUMMARY
  General Fund               1,823,991,000 1,818,463,000   (5,528,000)  -0.30%
  Special Rev.-Fed.             83,344,000    61,239,000  (22,105,000) -26.52%
  Fiduciary                         18,000        18,000            0    0.00%
  Enterprise                    62,856,700    66,404,000    3,547,300    5.64%
  Internal Service Fund         86,470,000    92,462,000    5,992,000    6.93%
  Federal Capital Projects Fund          0    20,000,000   20,000,000     --  
  Correctional Facilities     
    Capital Improvement Fund   195,000,000   205,000,000   10,000,000    5.13%
  Total for AGENCY SUMMARY:  2,251,679,700 2,263,586,000   11,906,300    0.53%


STATE OPERATIONS
  General Fund               1,802,454,000 1,807,063,000    4,609,000    0.26%
  Special Rev.-Fed.             83,344,000    61,239,000  (22,105,000) -26.52%
  Fiduciary                         18,000        18,000            0    0.00%
  Enterprise                    62,856,700    66,404,000    3,547,300    5.64%
  Internal Service Fund         86,470,000    92,462,000    5,992,000    6.93%
  Total for STATE OPERATIONS:2,035,142,700 2,027,186,000   (7,956,700)  -0.39%

Administration
  General Fund                  21,121,000    24,852,000    3,731,000   17.66%
  Special Rev.-Fed.             83,344,000    61,239,000  (22,105,000) -26.52%
  Enterprise                     1,817,700     1,818,000          300    0.02%
  Total for Program:           106,282,700    87,909,000  (18,373,700) -17.29%

Support Services
  General Fund                 328,115,000   335,429,000    7,314,000    2.23%
  Enterprise                       500,000       600,000      100,000   20.00%
  Total for Program:           328,615,000   336,029,000    7,414,000    2.26%

Supervision of Inmates
  General Fund               1,051,055,000 1,053,171,000    2,116,000    0.20%
  Total for Program:         1,051,055,000 1,053,171,000    2,116,000    0.20%

Health Services
  General Fund                 204,772,000   203,812,000     (960,000)  -0.47%
  Enterprise                    16,025,000    18,001,000    1,976,000   12.33%
  Total for Program:           220,797,000   221,813,000    1,016,000    0.46%

Program Services
  General Fund                 197,391,000   189,799,000   (7,592,000)  -3.85%
  Fiduciary                         18,000        18,000            0    0.00%
  Enterprise                    44,514,000    45,985,000    1,471,000    3.30%
  Total for Program:           241,923,000   235,802,000   (6,121,000)  -2.53%

Correctional Industries
  Internal Service Fund         86,470,000    92,462,000    5,992,000    6.93%
  Total for Program:            86,470,000    92,462,000    5,992,000    6.93%

AID TO LOCALITIES
  General Fund                  21,537,000    11,400,000  (10,137,000) -47.07%
  Total for AID TO LOCALITIES:  21,537,000    11,400,000  (10,137,000) -47.07%

Support Services
  General Fund                  21,537,000    11,400,000  (10,137,000) -47.07%
  Total for Program:            21,537,000    11,400,000  (10,137,000) -47.07%

CAPITAL PROJECTS
  Federal Capital Projects Fund          0    20,000,000   20,000,000     --  
  Correctional Facilities     
    Capital Improvement Fund   195,000,000   205,000,000   10,000,000    5.13%
  Total for CAPITAL PROJECTS:  195,000,000   225,000,000   30,000,000   15.38%

Maintenance and Improvement of Existing Facilities
  Federal Capital Projects Fund          0    20,000,000   20,000,000     --  
  Correctional Facilities     
    Capital Improvement Fund   195,000,000   205,000,000   10,000,000    5.13%
  Total for Program:           195,000,000   225,000,000   30,000,000   15.38%

                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Facilities Planning and   
  Development                           35            35        0
Administration                       1,280         1,280        0
Support Services                     3,613         3,556     (57)
Supervision of Inmates              21,309        20,846    (463)
Health Services                      1,897         1,894      (3)
Program Services                     3,532         3,471     (61)
Correctional Industries                542           542        0

Total General Fund :                30,386        29,802    (584)
Total All Other Funds :              1,822         1,822        0

TOTAL:                              32,208        31,624    (584)
                                                                    
                                                                    
       


                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 295-302)

The Department of Correctional Services (DOCS) is responsible for an
under-custody population of approximately 67,400 inmates who have been
sentenced to a term of incarceration which is greater than one year. 
This agency's budget is included in the Public Protection and General
Government appropriation bill.  The Executive recommends an All Funds
appropriation of $2,263,586,000, an increase of $11,906,300.

State Operations
  
The Executive recommends a $2,027,186,000 All Funds State Operations
appropriation for the State Fiscal Year (SFY) 2002-03.  This includes
a General Fund State Operations appropriation of $1,807,063,000, an
increase of $4,609,000.  This increase is derived from $55,435,000 in
salary adjustments and other costs associated with agency operations. 

       
The Executive proposes several efficiency initiatives which will
generate General Fund State Operations savings.  The proposed
efficiency initiatives are:
        
--     a  reduction of 540 positions (240 which have already taken
       place) through attrition reflecting the decreased demand for
       prison capacity and yields $26,302,000 in savings. 
       
--     a reduction of 132 positions through attrition due to the
       closure of New York City work release capacity yields
       $6,739,000 in savings.
       
--     a reduction of 127 positions through attrition due to the
       closure of medium security housing units at Sing Sing
       Correctional Facility yields $5,866,000 in savings.

--     a reduction of 53 staff through attrition due to the closure of
       special housing units yields $2,528,000 in savings.

--     an addition of 28 staff for centralization activities resulting
       in management efficiencies in prison operations yields
       $9,391,000 in savings.

Aid to Localities
       
The Executive recommends a $11,400,000 Aid to Localities
appropriation, a decrease of $10,137,000, which represents a 47.1
percent decrease in such funding.  This decrease in Aid to Localities
is attributable to the prison system's dramatic decrease in capacity
demand, which is evidenced by the sharp decline in state ready inmates
housed in local correctional facilities.  The current State ready
inmate population allows the prison system to move State ready inmates
readily from local to State correctional facilities, thereby virtually
eliminating State ready per diem reimbursements.

Capital Projects
       
The Executive recommends a total capital appropriation of
$225,000,000, which reflects an increase of $30,000,000.  These funds
are proposed for the ongoing capital improvements and renovations to
existing facilities.
       
Article VII Proposals 

The Governor proposes legislation which:
       
--          Extends for one year the merit time program which allows
certain non-violent inmates serving                 indeterminate
sentences to earn a possible one-sixth reduction in their minimum
sentence if they do             not engage in any serious acts of
misbehavior and they accomplish certain program objectives.  This
            program is essential to prison population management. 

--          Extends provisions of the Civil Practice Law and Rules Act
       and the Court of Claims Act related to  general filing fees,
       inmate filing fees, and the inmate property claims exhaustion
       requirement.