Fiscal Stress Monitoring System
The New York State Comptroller’s Office has released its annual report on local governments (outside of New York City) experiencing fiscal stress. The report categorizes local governments into three categories: susceptible, moderate, or significant, based on their ability to balance their budgets.
2023 Report Highlights
The 2023 report shows that pandemic relief and tax revenues prevented many municipalities from experiencing financial distress. However, it also notes that declining federal aid and slow growth in sales tax revenue present new challenges statewide. A total of 1,316 local governments submitted data, with 14 of those falling into one of the stress categories. This is the same number as in 2022, which the report considers the fewest since the Fiscal Stress Monitoring System began in 2013.
Fiscal Stress Designation
Only six local governments received a fiscal stress designation in both 2022 and 2023. These municipalities are:
| Municipality | Class | County | 2023 Category |
|---|---|---|---|
| Albany | City | Albany | Moderate |
| Chateaugay | Village | Franklin | Susceptible |
| Coxsackie | Village | Greene | Moderate |
| Little Falls | City | Herkimer | Significant |
| Poughkeepsie | City | Dutchess | Susceptible |
| Yates | Town | Orleans | Moderate |
Five additional municipalities made the list in 2023, but not in 2022. These are:
| Municipality | Class | County | 2023 Category |
|---|---|---|---|
| Bennington | Town | Wyoming | Moderate |
| Philipstown | Town | Putnam | Susceptible |
| Sackets Harbor | Village | Jefferson | Susceptible |
| Saugerties | Village | Ulster | Significant |
| Schroeppel | Town | Oswego | Susceptible |
| South Dayton | Village | Cattaraugus | Susceptible |
| West Turin | Town | Lewis | Moderate |
| Whitehall | Village | Washington | Susceptible |
Conclusion
The report notes that 264 local governments did not file financial data in time to be included in the 2023 report, which is more than twice as many as in 2017. The majority of municipalities, 1,303, made the deadline and received an "inconclusive" or "no designation" designation, indicating that they are not under financial hardship. However, the report emphasizes that the absence of a designation does not mean that a municipality is free from fiscal challenges.
Frequently Asked Questions
What is the Fiscal Stress Monitoring System?
The Fiscal Stress Monitoring System is a system used by the New York State Comptroller’s Office to monitor the financial health of local governments (outside of New York City).
What does the system measure?
The system measures year-end balances, operating deficits, and cash position to determine which categories represent which municipalities.
What is a fiscal stress designation?
A fiscal stress designation is given to local governments that are unable to bring in enough money to cover their annual expenses, indicating that they are experiencing fiscal stress.
How many local governments received a fiscal stress designation in 2023?
Fourteen local governments received a fiscal stress designation in 2023, the same number as in 2022.
