East Meadow schools 'susceptible' to fiscal distress, according to a state report

Posted

Twenty-two school districts in New York state, including the East Meadow Union Free School District, were designated as experiencing some type of fiscal stress for the school year ending June 30, 2024, under State Comptroller Thomas DiNapoli’s Fiscal Stress Monitoring System. This marks an increase from 16 districts in fiscal stress the prior year. 

“Pandemic-related federal funding as well as a boost in state aid have helped school districts avoid a fiscal stress designation in recent years,” DiNapoli said in a Jan. 24 news release. “While the number of districts has increased, it remains lower than before the pandemic. Now that most relief aid has been spent, districts should be especially vigilant that their budgets are structurally balanced to avoid fiscal problems going forward.”

State and federal aid increased by 42 percent from the 2019-20 school year to 2023-24, rising by $6.5 billion, from $15.6 billion to $22.1 billion. This aid accounted for 4.6 percent of total school district revenues. 

Much of the federal aid consisted of pandemic-related funding.

Of the 670 school districts that filed financial reports on time for the 2023-24 school year, 3.3 percent were designated as being in fiscal stress.

The Fiscal Stress Monitoring System identifies school districts, counties, cities, towns, and villages struggling with budgetary solvency — the ability to generate enough revenue to meet expenses. School districts receive a fiscal stress score based on factors including year-end fund balance, operating deficits or surpluses, cash position, and reliance on short-term debt. A higher score indicates a more severe level of fiscal stress.

Two school districts were designated in “significant fiscal stress,” the highest category—New Suffolk Common School District in Suffolk County and Mount Vernon School District in Westchester County. Four districts were classified as being in “moderate fiscal stress,” and 16 districts were deemed “susceptible to fiscal stress.”

East Meadow schools were placed n the “susceptible” category.

According to a Newsday report on the same topic, Kenneth Rosner, the superintendent of East Meadow schools, said the district’s finances were good, despite the new rating. The rating change, he said, could be attributed to a change in fiscal procedures that required East Meadow to use short-term borrowing to pay some expenses. The change was prompted by a new schedule of tax payments to the district from the Town of Hempstead. 

As federal aid returns to pre-pandemic levels, the state comptroller’s office urged school officials to prepare for potential changes in funding and to use available resources, including the Comptroller’s self-assessment tool and financial toolkit, which offer guidance, training, and reports to help districts manage fiscal challenges.

For more on the fiscal stress report, visit OSC.NY.gov. 

The East Meadow Board of Education will hold a public meeting on Feb. 5 at 7 p.m. at the Salisbury School, located at 718 The Plain Road, Westbury. For more, visit EMUFSD.u