The sales tax generates 8 percent of all local government revenues in New York State and 27 percent of county revenues. This report examines the general sales and use tax imposed for local governments in the State. It covers the sales tax rates in counties and cities, and trends in sales tax revenues for local governments. It also includes an up-to-date county-level summary of sales tax sharing arrangements and discusses recent activity in the taxation of Internet sales.

The number of school districts overriding the tax cap has declined each year. In general, school districts’ decisions to override the tax cap were based, at least in part, on necessity. When examining the relationship between fiscal stress and tax cap overrides, we found that fiscally stressed school districts were nearly three times more likely to override the tax cap when compared to school districts that were not designated as stressed. [2013-2015 Tax Cap Data - Excel]

Local sales tax growth was slower in 2014 than in any year since the 2008-2009 recession, in part due to slow growth in the first quarter of the year. Long Island collections declined, some upstate counties had strong growth due to increased sales tax rates, and New York City's growth was relatively strong. | [read county-by-county data - pdf]

The districts experiencing fiscal stress are spread across the State. One indicator in particular—the operating deficit—saw substantial changes in the FSMS points assigned compared to the previous year: 19 percent received a higher FSMS score on this indicator, while 28 percent scored lower. Changes in scores for this indicator contributed to changes in districts’ overall levels of fiscal stress.

This report provides you with a summary of trends in local government revenues and spending. It also offers the opportunity to reflect upon major local policy developments that occurred in 2014, as well as to highlight the important work that we have done and will continue to do here at the Office of the State Comptroller (OSC).

Overall, 35 entities were classified as being in some level of stress, with 10 designated as being in significant fiscal stress, 8 in moderate fiscal stress and 17 susceptible to fiscal stress.

This follow-up report expands the analysis of the previous report; updating annual local government financial data and contrasting that to the associated local financial infrastructure needs in the most recent New York State studies. It also draws upon a new series of interviews with local officials to assess how they are working to provide the best infrastructure possible to their residents.

Like many other cities, Glens Falls has struggled in recent years to maintain services, avoid large tax increases and balance budgets. The City’s high debt service costs for infrastructure expenditures as well as its subsidization of the Civic Center continue to be a burden. By 2012, Glens Falls had drawn down its available general fund balance to $0.6 million, or 3.7 of percent of expenditures.

Although total local sales tax collections have grown each quarter since the end of the 2008-2009 recession, the rate of this growth has shown a downward overall trend. [read county-by-city data - pdf]

Albany had no available general fund balance between 2002 and 2006. Subsequently, the City’s available balance grew to a high of $19.8 million in 2008 before declining in the wake of the 2007-09 recession. Standard and Poor’s Rating Services rates the City of Albany’s general obligation debt at AA-, at the low end of its second-highest rating category. The City has formally applied to the Governor’s Financial Restructuring Board for Local Governments for assistance and has been accepted by the Board.

Between 2007 and 2012, the City’s available fund balance increased by 82 percent, from $3.8 million to $7.0 million in 2012. In 2012, Moody’s warned that rising employee benefit costs could put upward pressure on expenditures. Also, the State cap on growth in the property tax levy could affect the City’s ability to continue to balance its budget by increasing the property tax.

Often, the required reports that industrial development agencies (IDAs) submit to OSC and other agencies are incomplete and inconsistent. Recent audits by OSC have found a lack of documented cost-benefit analysis, lack of recapture clauses in many project agreements and insufficient tracking of projects and their incentives.

The City of Plattsburgh has strong financial operations marked by operating surpluses in 2010 and 2011, modestly sized but growing and diverse tax base and healthy reserve levels. However, Plattsburgh’s high proportion of tax-exempt properties, weak socioeconomic measures due to a large student population and high debt burden are possible threats to the City’s financial condition.

The purpose of this bulletin is to provide guidance related to the accounting for Medicaid reimbursements paid by the Department of Health (DOH) and the resulting State Aid Deduction for those Medicaid reimbursements based upon a change in the Medicaid reimbursement methodology.

An accounting code has been established in the Comptroller’s Uniform System of Accounts for recording revenues relating to reorganization and efficiency grants.

Sales tax is a major revenue source for New York City and the 57 counties. The strongest growth for 2013 was in the Long Island region Some of the rapid sales tax growth seen there and in New York City was due to the rebuilding efforts after Hurricane Sandy.

This 2013 Annual Report on Local Governments highlights the difficult fiscal environment under which local officials are expected to fulfill their obligations to the people they serve, and outlines the steps OSC is taking to assist in these efforts.

This report summarizes findings from the Fiscal Stress Monitoring System using 2013 data for villages with fiscal years ending in February through May. Statewide, 3 percent of villages are experiencing fiscal stress. Downstate villages are more likely than upstate villages to experience fiscal stress. The report notes that some of the environmental factors thought to drive fiscal stress differ between downstate and upstate villages.

This report summarizes findings from the first set of fiscal stress scores to be released for school districts. Statewide, 12.9 percent of school districts are in some level of fiscal stress. Within the report, common fiscal and environmental factors are highlighted along with differences for school districts of varying need/resource capacity.

Between a tax levy limit that restricts local funding, State and federal aid cuts and a lack of other sources of funding, schools are facing fiscal challenges that are not likely to dissipate in the short term.