State Comptroller: Island school ‘susceptible to fiscal stress’
In a report issued by State Comptroller Thomas DiNapoli Wednesday, Shelter Island is among school districts listed as “susceptible to fiscal stress.”
Over a three-year period starting in 2014, the district has gone from a 15 percent fiscal stress level to 37.8 percent projected in the current year.
The state looks at such fiscal indicators as the year-end fund balance, short-term borrowing and patterns of operating deficits.
It also examines environmental indicators, including changes in property values, enrollment, trends in budget votes being defeated,or changes in approvals of budgets; graduation rates and the number of students receiving free or reduced price lunches.
Last May was the first time since the state imposed a 2 percent tax cap on the tax levy, the amount of money from local property taxes it takes to cover the budget, that the Island pierced the cap.
The result was that the budget survived by only two votes. This year, both Superintendent Leonard Skuggevik and district business official Tim Laube have promised to stay within the tax cap, although budgeting for the 2017-18 school year is in an early stage.
While the Island is listed as “susceptible to fiscal stress,” it’s not designated as fiscally stressed or even moderately stressed.
Mr. Skuggevik hasn’t yet responded to Mr. DiNapoli’s report.
There were 59 districts listed as fiscally stressed by Mr. DiNapoli, down from 82 last year and 90 the year before.
This is the fourth year that Mr. DiNapoli’s office has assessed the financial stability of school districts, now reporting only two — Wyandanch and Hempstead — that are significantly stressed; nine moderately stressed and 48, like Shelter Island, susceptible to fiscal stress. There are 671 school districts statewide and the rest have no designation.
Long Island, Mohawk Valley and Central New York recorded the highest percent of stressed school districts, at 15 percent.
Those experiencing the most fiscal stress tend to be in high poverty areas where there have been low graduation rates, Mr. DiNapoli’s report said.
While a number of districts saw considerable improvement in their fiscal stress levels, the comptroller advised that they should continue to work to stay out of harm while being careful not to amass excessive levels of fund balances.
