Comptroller Thomas P. DiNapoli has released a report revealing that sixteen New York State school districts, including Newfield Central School District, face varying levels of fiscal stress for the school year ending June 30, 2023. This marks a slight increase from the previous year’s 14 districts but remains significantly lower than the 33 in 2019. The decline in stressed districts is attributed to substantial federal and state aid in recent years.
According to DiNapoli, while the current number of districts under fiscal stress is low due to enhanced federal and state support, vigilance is crucial. The depletion of one-time federal funds and uncertainty surrounding future state aid necessitate careful monitoring of financial conditions. Significant federal aid and a rise in state aid, from $15.1 billion in the 2021-22 school year to $16.7 billion in 2022-23, have provided relief to districts.
The Fiscal Stress Monitoring System evaluates factors like fund balance, operating deficits and surpluses, cash position, and short-term debt reliance. Three districts, including Amityville Union Free, New Suffolk Common, and Mount Vernon School Districts, are in “significant fiscal stress.” Berne-Knox-Westerlo Central School District is in “moderate fiscal stress,” while twelve others are “susceptible to fiscal stress.” The report excludes New York City and the “Big Four” City School Districts. The findings underscore the need for strategic financial planning in education.
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