The “Big Five” cities of New York City, Buffalo, Rochester, Syracuse and Yonkers either are, or have recently been, fiscally distressed. This affects their dependent school systems, which already face significant challenges associated with the socio-economic composition of their students and the age of their facilities.
This report seeks to accomplish four important tasks:
• Reviews pertinent policy issues
• Assesses current activity levels in New York State
• Offers strategies for collaboration
• Proposes fiscally responsible measures
Finally, the report offers several policy recommendations intended to further enable local government collaboration.
The number of school districts overriding the tax cap has declined each year. In general, school districts’ decisions to override the tax cap were based, at least in part, on necessity. When examining the relationship between fiscal stress and tax cap overrides, we found that fiscally stressed school districts were nearly three times more likely to override the tax cap when compared to school districts that were not designated as stressed.
Between a tax levy limit that restricts local funding, State and federal aid cuts and a lack of other sources of funding, schools are facing fiscal challenges that are not likely to dissipate in the short term.
This research brief analyzed multiyear financial plans submitted by cities under a new State requirement. The Comptroller's analysis looks at 48 of these plans, excluding New York City. The report notes that quality of these plans varied greatly and urges the State to adopt a formal review and approval process of the plans, as well as more training for city officials.
By several measures, Yonkers is better off than many other cities in the State. Despite these advantages, the City has been challenged by significant structural budget gaps and, by the end of its 2011 fiscal year, the City had essentially depleted its general fund reserves.
The full value of property in White Plains dropped by 29 percent between 2008 and 2013, after more than doubling from 2002 to 2008. While cities statewide show slight recovery, White Plains may find dealing with the loss of so much property value a challenge in the future.
The City has paid down a significant amount of debt. This, along with the City’s substantial fund balance and a large tax margin, leave Watertown well positioned to cope with current and future fiscal challenges.
Utica has been in fiscal decline in recent years, relying on non-recurring revenues to fill budget gaps. Its new mayor has vowed to work with the City Council and OSC to ensure that the City remains in control of its own financial future.
The City of Syracuse faces many of the same challenges as other upstate cities. However, a larger than average percentage of its property tax base is either exempt or delinquent and growing fixed costs in the budgets of the City and the dependent school district have created chronic budget gaps.
