GESD “fiscal stress” level improves
The Gloversville Enlarged School District has been designated as being “susceptible to fiscal stress” in a report issued Wednesday, Jan. 25 by New York State Comptroller Thomas DiNapoli.
The district’s “susceptible to fiscal
stress” designation is an improvement over last year’s ranking
of “moderate fiscal stress.
The annual report for the Comptroller’s Fiscal Stress Monitoring System this year designated 59 school districts across the state as being in various states of fiscal stress.
The Comptroller’s fiscal stress system looks at financial indicators such as year-end fund balance, short-term borrowing and patterns of operating deficit to produce scores for each district in the state.
Scores classify a district as being in “significant fiscal stress,” “moderate fiscal stress,” “susceptible to fiscal stress” or as having no designation. This most recent report reflects the fiscal year that ended June 30, 2016.
“The district appreciates the NYS Office of
the State Comptroller’s Fiscal Stress Monitoring System. We
agree this monitoring system is a valuable tool used as an early
warning device that alerts us today to avoid a potential fiscal
crisis tomorrow,” Assistant Superintendent Steven Schloicka
The comptroller’s warning was based on one primary area of concern, the district’s general fund cash ratios.
“These ratios represent our Cash and Investment account balances compared to our Current Liability accounts, and as a percentage of monthly expenditures. This year’s lower cash ratios were caused by State and Federal receivables and Interfund loans. The district typically uses general fund moneys to support the State and Federal grant programs, and then applies for reimbursements of these moneys that will not be received in most cases, until the next fiscal year. The district is maintaining a watchful eye on its cash flow and receivables. Again, we appreciate the Comptroller’s Office fiscal stress early warning rubric and its value,” Schloicka said.
Schloicka acknowledged that years of frozen state and unpredictable state aid and the Gap Elimination Adjustment, which diverted more than $12 million away from Gloversville, also contributes to financial stress.