Fiscal Stress Test Results Are In: NYS Comptroller Confirms Ulster County’s Strong Performance
Kingston, NY (September 26, 2019) – Comptroller Adele B. Reiter is pleased to announce that Ulster County has maintained its six-year history of “stress free” operations, according to NYS Comptroller Thomas DiNapoli’s 2018 annual Fiscal Stress Test (“Test”) – the results of which were released today.
“Thanks to the tremendous fiscal stewardship of the Administration and Legislature, Ulster County’s financial position continues to be strong,” said Comptroller Reiter. “We are proud to share that the Test recognizes the stability of the County as it preserves its current financial status without a stress designation.”
The Office of the New York State Comptroller developed the Fiscal Stress Monitoring System (“System”) as a tool that allows governmental entities “to objectively identify issues with budgetary solvency – the ability to generate enough revenue to meet expenditures.” The System evaluates several key indicators that contribute to a municipality’s overall fiscal health, including: year-end fund balance, operating deficits, cash position, use of short-term debt, and fixed costs like personal services and employee benefits.
Ulster County has avoided a stress designation since the System was created by the State Comptroller, and the results of the 2018 Test matched the County’s lowest point accumulation – or least amount of stress – over the past six years. According to NYS Comptroller DiNapoli, the Fiscal Stress Monitoring System is important to residents and policymakers alike because it “acts as an early warning and provides valuable information [in order] to take a deliberate, long-term and strategic approach to managing their local government,” allowing “decision-makers and the public to prioritize the needs of the community, understand the trade-offs and follow through with tough decisions.”
Per the NYS Comptroller, the Environmental Stress portion of the Test “provide[s] insight about economic and demographic forces confronting communities” such as population changes, utilization of public assistance, household income, unemployment, and other factors. These indicators are almost entirely “beyond the immediate control of local officials but might influence revenue-raising capability and the demand for certain types of services.” This year’s section of the Test showed that Ulster County improved its standing from “moderate environmental stress” to “susceptible to environmental stress.”
The State Comptroller’s Fiscal Stress Monitoring System, which includes Ulster County’s results,may be found at: http://wwe1.osc.state.ny.us/localgov/fiscalmonitoring/fsms.cfm
The Ulster County Comptroller also previously conducted the Test that may be viewed at: https://comptroller.ulstercountyny.gov/audit-reports/fiscal-stress-test-ulster-county-2018.
The Comptroller looks forward to assisting policymakers in the promotion, analysis, and review of budgets that are as structurally balanced as possible in order to remain in this steady position.
