Thursday, October 1, 2026
After his review of all schools districts and BOCES in New York, state Comptroller Thomas DiNapoli cited several districts for having excess funds in its Employee Benefit Accrued Liability funds. Although there is no legal limit as to how much money districts can have in this account, DiNapoli said many district had more money than would be reasonably needed in the coming years.
The EBALR fund is used pay teachers and staff for unused leave time, such as sick and vacation days, when they leave the district. Once money goes in to the fund, it can only come out for that purpose.
DiNapoli wants districts to use this excess money to benefit taxpayers. However, legislation is required for districts to be able to transfer money out of an EBALR account to its operating budget. He is proposing that the state Legislature adopt this change.
West Hempstead Union Free School District, according to its deputy superintendent, Richard Cunningham, doesn't have any excess money in the EBALR fund and therefore, doesn't find DiNapoli's recommendation to be particularly helpful.
"The Board of Education has been very careful to follow regulations with regard to both reserves such as EBLAR and the level of undesignated fund balance it can carry," Cunningham said. "Now that times are tight, it seems that the districts that were mindful of the regulations are, in a sense, under greater fiscal stress than those that exceeded the allowable amounts in reserves and undesignated fund balance. West Hempstead does not have any excess to tap into."
The district's EBALR is 42 percent funded, according to Cunningham. As of July 1, 2009, it had $1,580,000. During the 2008-2009 fiscal year, the district transferred $560,000 from EBALR to pay accrued liabilities that were due.
Meanwhile, the Malverne Union Free School District had about $2.3 million in its EBALR until last year, when it moved $1.1 million into a Capital Reserve Fund, according to MUFSD Business Administrator Raymond Neblett.
On May 18, 2009, the Malverne school board obtained voter approval to establish the fund, according to state audit documents found on the MUFSD website. It was then able to reduce its $1.2 million excess to less than $1,500, Neblett said, adding that had the school board not had the option to move the additional funds into a capital reserve fund, it would have appreciated DiNapoli's recommendation.
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