A state comptroller’s report on Yonkers paints a grim picture of both the city and school district’s proposed budgets for 2024-25, saying that revenue and expenditure projections are unreasonable.
The report, dated May 20 and released Friday, contends that the school district budget is “structurally unbalanced” with a $61.9 million budget gap. Among other things, the report says that the city underestimated retirement payments for teachers and other city expenses.
“There is nothing new here to report,” Yonkers Finance Commissioner John Liszewski said in a statement Friday, noting the Comptroller’s Office reviews the city budget every year.
Liszewski said the state’s “chronic underfunding” was the cause of the budget’s structural imbalances.
“Despite the burdens placed on our City, we will deliver a fair and balanced budget as we do each year,” he said. “We look forward to working with the State Comptroller’s Office in adopting a fiscally responsible budget that best addresses the needs of our residents and schools.”
The city’s proposed budget, as submitted to the Comptroller’s Office, was $1.46 billion, including $748 million for the school system.
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Here are some of the Comptroller report’s key findings:
Yonkers school district budget
The report found that:
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The school district faced a budget gap of at least $61.9 million.
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The budget used $12 million in state aid for services and expenses but that funding may not be available in the future.
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Because two contractual bargaining agreements expired in June last year and new contracts haven’t yet been reached, the district could see additional costs when they are settled.
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The school district budget “likely underestimates teacher retirement payments by approximately $478,000 and charter school tuition payments by approximately $206,000.”
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$5.7 million in contingency funds “may exhaust the current amount budgeted,” which would limit the district’s ability to pay for other unexpected costs.
City of Yonkers budget
The report said some projections for revenue and expenses in the city’s proposed budget were “unreasonable” and that the city’s “continued practice of using debt to pay for recurring costs is imprudent.”
Other findings included:
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$87.9 million in nonrecurring revenue were financing the city’s operations. That could be money from the appropriated fund balance, one-time funding from the state or money from selling property.
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The budget included revenue estimates “that may not be achievable” and several expenses “that are likely underestimated.”
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The proposed budget would result in “additional debt and interest costs because the cost of tax certiorari claims are bonded instead of being financed through the operating budget.”
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Similar to the school district’s unsettled union contracts, six of the city’s eight collective bargaining agreements expired or will soon, meaning the city could see additional expenses when they are settled.
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6.9% of the city budget, or $100.8 million, would go toward debt obligations in 2024-25.
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The report also said that if the city keeps borrowing for operating costs, it will see additional costs.
Recommendations
The report included several recommendations, including that the city stop relying on one-time revenues to cover recurring expenses. It also recommended that the city review several estimates, including police and firefighting overtime and insurance and retirement costs. Another suggestion was for the city to pay for operating costs instead of borrowing funds.
This article originally appeared on Rockland/Westchester Journal News: Yonkers’ city and school budgets imbalanced: NYS comptroller
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