New York Comptroller Thomas DiNapoli released a new fiscal stress
The list showed that 35 governments were either in fiscal stress or susceptible to it, down from last year's 38 governments.
DiNapoli's staff found that the most fiscally stressed governments were, in descending order of stress, Suffern Village, Rockland County, Monroe County, Jasper, Mechanicville, St. Lawrence, German Flatts, Amityville, Franklin County, Islandia, Manorhaven, Poughkeepsie, Schuyler County, and Bayville. The staff said all of these governments were in significant stress.
The staff found 12 governments to be in moderate stress. Among these were Suffolk County on Long Island, Broome County in the Southern Tier region, and the Town of Hempstead on Long Island. Hempstead is by far the largest town in New York, with 760,000 residents.
The staff attempted to look at 1,043 communities whose fiscal year corresponded with the calendar year. All the state's counties operate on the calendar fiscal year. The staff received adequate data for 978 governments.
The staff found that 6.8% of the downstate governments were either in stress or susceptible to stress while 2.8% of the upstate respondents were in these conditions. The staff included the Mid-Hudson region and Long Island in downstate. New York City is not covered. All the rest of the state is considered upstate.
While more of downstate was in stress, more than twice as many communities in the mid-Hudson region were improving than worsening. On Long Island, the number of improving and worsening communities was even.
The staff found that 17.5% of counties, 15.9% of cities, and 1.8% of towns were in stress or susceptible to it.
Hempstead had the most significant deterioration among large communities. DiNapoli's scores vary from 0% to 100%, with higher values indicating more stress. Hempstead's percent score rose to 55.8% in 2013 from 36.7% in 2012.
Another Long Island community, Suffolk County, showed some improvement, with its score sliding to 60.8% in 2013 from 73.8% in 2012. The staff shifted the county to the moderate fiscal stress category from the significant fiscal stress category.
Responding
"That said, this report should serve as a stark reminder - to our residents and our legislators - that Rockland County remains in a precarious financial situation," he added. "This administration will continue to take the necessary steps toward fiscal health."
Mike Deery, communications director for Hempstead, said the town's general obligation rating was Aa1 from Moody's Investors Service and AA-plus from Standard & Poor's. Most people see credit ratings as the best measure of a government's fiscal strength. The town's debt service level is considered moderate and the government has strong fiscal management policies, Deery said.
Monroe County director of communications Justin Feasel said, "A rose by any other name is still a rose, so when the comptroller talks 'fiscal stress' he is really referring to the massive burden that state mandates place on local governments. There is no question that counties like Monroe will continue to operate under incredible stress until the comptroller, the governor, and the legislature get serious about addressing the root cause of these challenges through real mandate reform."
In rating the governments DiNapoli's staff looked at financial indicators like cash-on-hand, fund balance, patterns of operating deficits, and levels of short-term debt and fixed costs.
Some notable communities with fiscal years based on the calendar year weren't covered by Thursday's report. Ithaca, Utica, Long Beach, and Columbia County had not filed their data. Yonkers, Tompkins County and Nassau County filed data that was inconclusive for the fiscal stress rating process.
