BUFFALO, N.Y. (WKBW) — Erie County Comptroller Kevin R. Hardwick announced the county's fiscal stress score from the Office of the New York State Comptroller improved from 2020 to 2021.
According to Hardwick, in 2020 the county's fiscal stress score was 40 and it dropped significantly to 12.9 in 2021.
“This is positive news for Erie County taxpayers. This score reflects the responsible management of Erie County’s finances. Hardwick added: “The significant 27.1-point reduction in the score from the height of the COVID pandemic in 2020 to 2021 affirms the County’s solid fiscal management and budgetary practices.”
The New York State Comptroller implemented the Fiscal Stress System in 2013 to allow leaders to track stress condition trends and have a better understanding of where the entity is heading so that decision-makers do not have to respond to a crisis.
The system examines:
- A government’s fund balance (cash reserves)
- Whether they have budget deficits
- Their cash position
- Whether they issue annual cash flow notes
- The amount of the County’s debt
- The ongoing costs of employee salaries and benefits
The following drive a lower fiscal stress score and are positive:
- Low debt
- No need for an annual issuance of revenue anticipation notes (cash flow borrowing)
- High cash position
- No operating budget deficits
- High fund balance (cash reserves)
Hardwick said a score of 45 or above indicates a local government is susceptible to, or in moderate or significant fiscal stress under the system. Erie County’s previous fiscal stress scores were: 40.8 (2018), 29.2 (2019), and 40.0 (2020).
