March 24, 2010
DiNapoli: Newburgh's Shortfall Could Exceed $6.3 Million
The City of Newburgh's budget shortfall for the 2010 fiscal year could be more than $6.3 million if city officials don't take steps to close the gap, according to an audit of the city's budget released by State Comptroller Thomas P. DiNapoli. Auditors were unable to fully determine the amount of the budget gap because city records were lacking pertinent information. DiNapoli directed auditors to conduct the budget review at the request of the acting city manager and members of the city council.
"Newburgh's financial problems are severe," said DiNapoli. "Like many municipalities across the state, Newburgh is facing very difficult problems and equally difficult choices. This is a very serious budget imbalance that could have severe consequences for the city if it goes unaddressed."
DiNapoli's auditors described the city's projected expenditure and revenue projections as "unreasonable." DiNapoli noted that the city, which has experienced significant turnover among city officers charged with handling financial matters, had not issued an annual financial report to the Comptroller's Office as required for 2008, and its 2009 statement was incomplete.
In reviewing the budget, DiNapoli's auditors found the following:
DiNapoli recommended that city officials review his report and correct the imbalances found in the 2010 budget. The city has indicated that it will seek deficit financing authorization. For a copy of the audit, click here.