Budget gaps and potential reductions might be looming for many school boards, but a recent report found most local school districts are not fiscally stressed.
The state Comptroller’s Office released its second fiscal stress scores for school districts statewide Wednesday, Jan. 29, which had 90 districts statewide, or more than 13 percent, receiving a fiscal stress designation. School districts in Albany County had fiscal scores remaining unchanged or improving, with the exception of North Colonie Central School District. The scores are based off data from the 2013-14 school year.
North Colonie’s fiscal score increased from a 0 to 6.7 percent, but was well below being classified as susceptible to fiscal stress. The sole factor leading its increase was gross expenditures exceeding gross revenue by almost $1.47 million, or 1.5 percent, in its general fund.
There are three severity designations, “significant,” “moderate” and “susceptible.” Districts with fiscal scores falling below 25 percent receive no designation of fiscal stress.
Bethlehem, Voorheesville and South Colonie school districts received improved fiscal scores and continued to receive no designation.
Bethlehem’s fiscal stress score dropped from 20 to 13.3 percent, Voorheesville improved from 6.7 to 0 percent, and South Colonie from 28.3 to 21.7 percent.
Guilderland Central School District retained its “susceptible to fiscal stress” designation and its fiscal score was unchanged at 26.7 percent.
Neil Sanders, assistant superintendent for Business at Guilderland, said the fiscal scores are “intended to be indicators” and not “absolute determinations.”
At the Guilderland Board of Education Feb. 3, Sanders largely credited the district’s “susceptible” score to its $4 million short-term tax anticipation note, which was issued in July 2013 and paid off in October. The interest from this borrowing totaled less than $11,000.
State aid typically was distributed on Sept. 8, but it has been later in recent years, according to Sanders.
“Short-term borrowings are needed to cover bills and payroll during summer before the receipt of state aid and tax revenue,” said Sanders. “Under the comptroller’s formula, any short-term debt issuance is viewed negatively and contributes to a district’s fiscal stress score.”
Guilderland’s short-term borrowing added 3.3 percent to its total score, which without, would have kept the district below the susceptible label.
Short-term borrowing for the same reason is fairly common at other districts, according to Sanders.
“Although we received this designation, we are just over the line,” he said. “At the end of the day, I think we have done the right thing for the children in our school district.”
Sanders, along with the comptroller’s forecast, predicted Guilderland would not receive any designation next year.
State Comptroller Thomas DiNapoli said schools “face fiscal pressures that are unlikely to change any time soon.”
