3 Long Island school districts named on state report of districts dealing with fiscal stress
News 12 Long Island has learned three Long Island school districts have been named to a new state list of those dealing with financial stress.
A total of fourteen school districts statewide were designated in some level of fiscal stress under New York State Comptroller Thomas P. DiNapoli's Fiscal Stress Monitoring System.
DiNapoli says the New Suffolk School District was listed in "moderate fiscal stress.” Meanwhile, The Three Village School District in Setauket and Stony Brook, and the Fishers Island School District, were at mildest level, "susceptible to fiscal stress."
DiNapoli's Fiscal Stress Monitoring System was designed to identify issues that school districts, counties, cities, towns and villages are having with budgets, or the ability to generate enough revenues to meet expenses.
"The number of districts designated in a fiscal stress category has fallen considerably over the past three years. This year there was a particularly steep drop because of significant increases in both federal and state aid," DiNapoli said in a statement Wednesday.
School districts are given a fiscal stress score based on several factors including year-end fund balance, operating deficits and surpluses, cash position, and reliance on short-term debt for cash-flow. The higher the score the more severe the level of stress.
"We are not surprised to find ourselves listed as 'susceptible to fiscal stress'", Three Village School District said in a statement. "This status is a result of the funds we borrowed from our reserves to support our commitment to offer full in-person learning during the COVID pandemic, which we are in the process of rebuilding."
Three Village and New Suffolk were the only districts from Long Island to repeat on the list after appearing last year as "susceptible to fiscal stress."