Zero Score on Fiscal, Environmental Stress
Once again, the New York State Comptroller’s most recent Fiscal Stress Score for the Town of Brookhaven found that the town has the lowest possible stress in every category in the report for both fiscal and environmental stress. The comptroller’s office cited the town’s strong finances and forward-looking policies.
The Fiscal Stress Score is based on current and future financial assumptions. It objectively identifies issues with budgetary solvency (the ability to generate enough revenue to meet expenditures) for each county, city, town, village and school district.
Brookhaven scored a perfect 0 out of 100 points for both fiscal stress and environmental stress, continuing a decade-long trend of lowering financial stress in the Town. Municipalities rated as having Significant Stress are those that score 65 points or more. Moderate stress is indicated by a total score of 55 or Greater. Brookhaven received “No Designation” of Fiscal Stress with a fiscal score of 0.0, which had been reduced from a score of 3.3 in the previous three years, and an Environmental score of 0.0, a decline from 10.0 two years ago.
“Since taking office in 2010, and throughout the tenure as a town councilman and supervisor, I have always remained mindful of the finances and financial realities facing Brookhaven Town,” said Town Supervisor Dan Panico. “We continue to earn AAA bond ratings from Moody’s Financial Services and Standard & Poor’s for our residents and taxpayers. While no local municipal government can control inflation set forth by global circumstances and national polices or fixed costs driven higher by state mandates and laws, we pride ourselves on being truthful and honest with the nearly half of a million people we represent. To see these efforts recognized by our [state] comptroller is gratifying because it is an objective measurement of the policies and procedures set forth by the strong management team in the Town of Brookhaven.”
“The breadth of experience and management skillset that Supervisor Panico possess resonates throughout the Town of Brookhaven,” added Deputy Supervisor Neil Foley. “I spent more than half of my career sitting next to him on this town board and see an unparalleled level of leadership for our residents. I know that I speak for all my colleagues when I say that his vision, work ethic and maturity have helped raise this Town’s finances to a gold standard. I am honored to serve with him.”
New York State Comptroller Thomas P. DiNapoli created an early warning system for communities and school districts with fiscal problems. These fiscal stress scores are based on end-of-year results and provide a measurement of local governments’ and school districts’ ability to respond to the financial impact of the ongoing public health crisis.
According to the New York State Comptroller’s office, the Fiscal Stress Monitoring System is a program that objectively identifies issues with budgetary solvency — the ability to generate enough revenue to meet expenditures — for each county, city, town, village and school district. The system analyzes the financial information submitted to the state comptroller by local governments against a set of uniform financial and environmental indicators. Key drivers of fiscal stress in local government financial operations include:
- Year-End Fund Balance
- Operating Deficits/Surpluses
- Cash Position
- Use of Short-Term Cash-Flow Debt Issuance
- Fixed Costs
Environmental indicators give insight about economic and demographic forces confronting communities that are beyond the immediate control of local officials but might influence revenue-raising capability and the demand for certain types of services. These indicators include:
- Change in Population
- Households with Public Assistance
- Percent of Population Under 18 and Over 65
- Percent Change in Home Value
- Median Household Income
- Unemployment Rate
- Reliance on State and Federal Aid
Fiscal Stress and Environmental scores are important because they act as an early warning and provides valuable information to local leaders and citizens so that they are well-equipped to take a deliberate, long-term and strategic approach to managing local government. This information helps decision-makers and the public to prioritize the needs of the community, understand the trade-offs and follow through with tough decisions. Scores are provided once a year by the State Comptroller which allows users to track stress trends over time, for individual local governments and for the entire sector across New York State.