Springs and New Suffolk Schools Facing Fiscal Stress

New York State Comptroller Thomas P. DiNapoli’s office identified a pair of the two dozen school districts on the East End as facing varying degrees of fiscal stress, according to a report.

The comptroller’s Fiscal Stress Monitoring System designated the New Suffolk Common School as facing significant fiscal stress — the most severe ranking — and the Springs Union Free School District as susceptible to fiscal stress for the school year ending June 30.

“Although federal relief packages and state aid provided much needed assistance, school officials should remain diligent and closely monitor their financial condition in the current and future budget cycles as one-time federal funds are depleted and state aid is uncertain,” DiNapoli said.

The two districts were among five on Long Island and 16 statewide — up from 14 last year but down from 33 in 2019 — identified in the comptroller’s report. The Amityville Union Free School District is also facing significant fiscal stress. Additionally susceptible to fiscal stress are the Roosevelt Union Free School District and the Middle Country School District.

The school fiscal rankings were based on factors that included their year-end fund balance, operating deficits and surpluses, cash position and reliance on short-term debt for cash flow, with the higher the score, the more severe the level of stress, according to the comptroller’s office. New Suffolk tied for second most fiscally stressed in the state with a score of 68.3. Springs tied for last place with a score of 25.

“The 2% cap combined with the use of fund balance to balance one’s budget is not sustainable and therefore put the district in susceptible fiscal stress,” Debra Winter, the interim superintendent of schools for the Springs district, told Dan’s Papers. “The [board of education] will be discussing this at or next BOE meeting.”

New Suffolk school officials did not return requests for comment.

The development comes as state lawmakers are voicing concern that Gov. Kathy Hochul’s proposed budget includes a cut in financial aid to local school districts. The governor’s negotiations with the state legislature over such funding typically concludes upon the April 1 deadline to pass the budget.

State Sen. Anthony Palumbo (R-New Suffolk), who represents the Hamptons and the North Fork, said schools in his district are facing $20 million in state education cuts, which would impact schools beyond New Suffolk and Springs.

“If unaltered, the governor’s proposal will have a devastating impact on schools, students and communities, and will place additional burdens on Long Island homeowners, who already pay some of the highest property taxes in the nation,” he said. “It is imperative for both chambers in the State Legislature to restore funding to our schools … New York State must maintain its educational commitments to students and provide them with a world-class education that is second to none. Their future, and ours, depends on the investments that we make in education today.”