DiNapoli: 31 School Districts Designated in Fiscal Stress

Thirty-one school districts were designated in some level of fiscal stress under New York State Comptroller Thomas P. DiNapoli's Fiscal Stress Monitoring System for the school fiscal year (SY) ending June 30, 2025, up from 22 districts in fiscal stress the prior year.

"In recent years, pandemic-related federal funding as well as increases in state aid have provided districts with significant financial support," DiNapoli said. "With much of the relief funding having been spent, the number of school districts in fiscal stress has returned to pre-pandemic levels this year. As districts continue to adjust to these conditions, officials should make every effort to ensure budgets are structurally balanced to avoid fiscal problems going forward."

From SY 2019-20 to 2024-25, school districts spent $4 billion of the nearly $4.6 billion in available federal pandemic relief funding. With this funding dwindling, in SY 2024-25, districts reported spending only $317 million in combined federal pandemic relief funding, a decrease of over 70% from SY 2023-24.

Of the 669 school districts that filed their financial reports in time to be scored in SY 2025, 4.6% have been designated as being in a level of fiscal stress, compared to 3.3% in SY 2024.

DiNapoli's Fiscal Stress Monitoring System was designed to identify school districts, counties, cities, towns and villages that are having difficulties with budgetary solvency, or the ability to generate enough revenue to meet expenses. School districts receive a fiscal stress score that is based on several factors: year-end fund balance, operating deficits, cash position, and reliance on short-term debt for cashflow. The higher the score, the more severe the level of stress.

This release of scores, which excludes New York City and the "Big Four" City School Districts of Buffalo, Rochester, Syracuse and Yonkers, designated two school districts in "significant fiscal stress," the highest category - Harrisville Central School District in Lewis County and Mount Vernon School District in Westchester County. Four districts were designated as being in "moderate fiscal stress" and 25 districts were designated as "susceptible to fiscal stress."

Regionally, the Mohawk Valley had the highest percentage of school districts with a stress designation (10.9%), followed by Central New York (10.4%) and the North County (7%).

In addition, DiNapoli's report identified 24 chronically stressed school districts which have been designated in a category of stress for five or more years since SY 2012-13, although they may not currently be designated in a level of stress.

DiNapoli urges district officials to take advantage of the resources available to them to monitor factors affecting fiscal stress. These include the Comptroller's self-assessment tool and financial toolkit, which offer guidance, resources, training and reports, to help officials manage through complex fiscal circumstances.

Lists
School Districts in Stress for Fiscal Year Ending 2025
Complete List of School District Fiscal Stress Scores

Report
Fiscal Stress Monitoring System: School Districts Fiscal Year 2024-25 Results