OSC Releases 5th Report On School Districts In Fiscal Stress
The Office of the State Comptroller released its 5th annual report on School Districts in Fiscal Stress, a report that measures school districts’ ability to manage fiscal challenges. Stress scores are based on district reported 2016-17 financial data from the ST-3 as well as environmental data for each district based on State and federal published data.
The Fiscal Stress Monitoring System (FSMS) found only 4% of districts to be in a fiscal stress category, a decrease of 5 percentage points from last year. The decline in the number of districts classified as fiscally stressed is due in part to changes to the factors used to determine fiscal stress recommended by NYSASBO. Such recommendations included:
- Adding “Reserve for Tax Reduction” to Unassigned Fund Balance
- Removing points for large deficit in current fiscal year (less than or equal to -3%)
- “Short-term Cash Flow Borrowing” redefined to change in the amount of short-term debt compared from one year to next
- Remove transfers to capital projects from Gross Expenditures Indicator
The full report can be found here.
Source: Office of the State Comptroller