Over the past three years, the County’s operating surplus was $136.4 million higher than planned. While a surplus is positive, such large differences from projections may indicate budgeting weaknesses. The Comptroller recommends that the County allocate even more to reserve funds, pay debt, and pay other one-time expenditures to comply with Fund Balance Policy limits. Over the last year, the County increased the tax stabilization reserve fund to $10.1 million and plowed $18 million each into a fund for housing and the decarbonization of County facilities.
“By moving available fund balance into reserves, paying debt or paying other one-time expenditures, we could protect Ulster County taxpayers from the impacts of an inevitable downturn as a result of that natural swings in the economy,” said Ulster County Comptroller March Gallagher. “We are living through unprecedented financially flush times for the County, and it is prudent to prepare for uncertainty ahead.”
The Fund Balance Policy requires the Department of Finance to provide a Fund Balance allocation plan to the Legislature in June of each year, but financial information was not readily available at the time and such a plan has never been presented.
