A new report from State Comptroller Thomas DiNapoli shows an increase in the number of local governments across New York designated in fiscal stress. For fiscal years ending in 2024, 23 municipalities received a designation, up from 14 the year before.
The designations come from the Comptroller’s Fiscal Stress Monitoring System (FSMS), which evaluates financial health using indicators such as fund balance, operating deficits, cash flow, borrowing, and fixed costs. DiNapoli said the rise in fiscal stress comes as pandemic relief funds taper off, leaving local governments facing uncertain revenues and shifting federal spending priorities.
“The number of local governments designated in fiscal stress, while still low, rose over the prior year, as federal pandemic relief funding was winding down,” DiNapoli said. “Local governments now facing volatility in revenue sources and uncertainty from significant shifts in federal spending should remain vigilant and pragmatic when spending and planning for the future.”
Local Governments in Stress
For FYE 2024, four municipalities were designated in the highest category of “significant stress”:
- City of Little Falls (Herkimer County)
- Village of Cambridge (Washington County)
- Village of Island Park (Nassau County)
- Village of Saugerties (Ulster County)
Municipalities in “moderate fiscal stress” include the cities of Albany and Poughkeepsie, the towns of Massena (St. Lawrence) and Yates (Orleans), and the villages of Coxsackie (Greene), South Blooming Grove (Orange), and Washingtonville (Orange).
The City of Elmira (Chemung), seven towns, and four villages—including Liberty in Sullivan County—were designated as “susceptible to fiscal stress.”
Key Findings from the Report
- Ten municipalities also appeared on the 2023 list, including Albany, Little Falls, and Poughkeepsie.
- The percentage of cities in fiscal stress rose slightly to 8.5%, though still lower than in 2020–2022.
- The number of towns marked as susceptible more than tripled, though none were listed as significantly stressed.
- No counties have been designated in fiscal stress for the fourth year in a row.
Late Filings Still a Concern
The report noted that while the number of municipalities failing to file annual financial reports on time dropped to 240 in 2024 (down from 264 in 2023), the figure remains nearly double what it was a decade ago. Missing reports can signal poor financial management and reduce public accountability.
Three municipalities designated in 2024—including the Village of Island Park, the Town of Massena, and the Village of Washingtonville—had gone multiple years without filing financial data.
About FSMS
Launched in 2013, the FSMS issues scores twice a year for municipalities outside New York City. School districts are evaluated separately, with results released each January.
The full report, including designations and analysis, is available on the State Comptroller’s website.
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