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COMPTROLLER: Some balance on stress report

New York state Comptroller Thomas DiNapoli issued a report last week noting that Fredonia Central Schools could be facing troubles in the coming months. According to the news release, the district is “susceptible to financial stress.”

According to the Comptroller’s Office, “DiNapoli’s Fiscal Stress Monitoring System was designed to identify those 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 and surpluses, cash position, and reliance on short-term debt for cash flow. The higher the score, the more severe the level of stress.”

To be fair, we take these reports with a grain of salt. DiNapoli’s office never noted the city of Dunkirk was under stress — likely due to a lack of reporting — but the office could have done more to send a warning signal. The same can be said about the village of Fredonia, which appears to be running low on cash before its fiscal year ends in June.

All things considered, Fredonia schools are facing a pinch that could be evident when the budget is presented in the coming months. We know its reserves are not at overfunded levels — such as Gowanda Central Schools. But the district is not in a comfort zone either.

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