DiNapoli's New York Stress List Gets Longer

Suffolk, Nassau and Rockland counties are among the local governments added to New York Comptroller Thomas DiNapoli’s fiscal stress list.

“The increased number of municipalities in fiscal stress underscores the seriousness of the challenges facing local governments,” DiNapoli said in a statement Wednesday when he announced the completion of additional reviews of local governments.

In June DiNapoli released his assessment of the level of fiscal stress of about 900 municipalities and counties in New York. At the time he found that six communities were in significant stress, six in moderate stress and 12 susceptible to fiscal stress. However, at the time 145 communities were either still under review or had not filed their information.

In Wednesday’s update, DiNapoli added 14 communities to the troubled categories. Of these, six are said to be fiscally stressed, the most serious category; three are in moderate fiscal stress; and five are susceptible to fiscal stress.

He assigned ratings to 88 of the 145 that previously lacked ratings.

All the ratings are based on the communities’ financial and demographic information from 2012.

The comptroller named Rockland County, about 25 miles northwest of New York City, the most fiscally stressed government in the state.

Suffolk County on Long Island did not fare much better – it was been named the third most fiscally stressed government. As of May the county had $1.4 billion in outstanding debt, according to Moody’s Investors Service.

Other communities added to the fiscally stressed category are St. Lawrence County, Poughkeepsie, Fishkill, and Islandia.

The largest community added to the moderate fiscal stress category is Nassau County, which had at least $1.6 billion in debt outstanding this spring, according to Moody’s.

Oyster Bay and Lockport are the other communities that have been named to the moderate fiscal stress category.

To the susceptible to fiscal stress category have been added Schenectady County, Tuxedo, Erie County, Coeymans, and Parish.

All the localities found to be in fiscal stress had low fund balances, a continued pattern of operating deficits and inadequate cash on hand to pay their bills, DiNapoli said.

Nearly 25% of counties and 11% of cities are fiscally stressed, compared to only 2% of towns.

“We have over the year been working to turn the fiscal situation around,” said Ron Levine, spokesman for Rockland County executive C. Scott Vanderhoef. The county has cut its staffing level to the lowest level in 30 years, cut pay for its staff, and increased staff contributions for health insurance. It has also created a local development corporation to sell a money-losing nursing home.

The county has also increased its real property tax and introduced residential energy and hotel/motel taxes. The county is hoping that New York Gov. Andrew Cuomo will sign the Rockland County Deficit Financing Act in the next few months to help the county’s finances, Levine said.

Standard & Poor’s recognized Rockland’s progress by raising the outlook on its BBB-minus rating to stable from negative on Sept. 11, Levine said.

“Comptroller DiNapoli’s report focuses on Suffolk County’s 2012 budget which I inherited,” Suffolk County executive Steve Bellone said. “I have and will continue to take tough actions to put Suffolk County on the path to fiscal sustainability.”

Bellone said his fiscal 2014 budget anticipates spending less than was spent in 2012.

Bellone said he had cut the county’s workforce by 1,000 since 2012 for savings of $100 million a year. He also said he had introduced other measures that will lead to savings of about $50 million a year.

Nassau County’s spokeswoman questioned DiNapoli’s motives.

“Given the comptroller’s political endorsement of [Democrat candidate for Nassau County executive] Tom Suozzi and party affiliation, we question the timing of this conveniently revised report,” Nassau County press secretary Katti Grilli-Robles said.

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