Ulster County Fiscal Stress Level Increases But Remains in “No Designation” Category Despite Fund Balance Usage
Kingston, NY (May 18, 2020) – Ulster County Comptroller’s Office has released the latest Ulster County Fiscal Stress Test results. The New York State Office of the State Comptroller (OSC) developed the Fiscal Stress Test as a tool to assist governmental entities toward better understanding their historical and present economic status. According to OSC, “fiscal stress” is the “inability of an entity to generate enough revenues within the current fiscal period to meet its expenditures.”
Ulster County has continued since 2013 in the area of “no designation,” representing no material fiscal stress. Using financial information from our latest Annual Update Document filed May 1st, Ulster County’s fiscal stress results remains “no designation.” One important caveat to that analysis is that Ulster County has points within the Fund Balance categories bringing our overall fiscal stress score from 6.7 to a high of 25.8 points. Municipalities scoring over 45 points are susceptible to fiscal stress.
The structural imbalance in the 2019 budget have elevated Ulster County’s fiscal stress test score. Considering the expected COVID-related shortfalls in revenues, it is likely more fund balance will be absorbed, and cash levels will decrease further elevating our fiscal stress score in the coming year. Going forward to preserve fiscal health Ulster County must work toward passing structurally balanced budgets where recurring revenues support recurring expenditures. OSC advises local officials to review fiscal stress results carefully to identify potential risk areas.
