KINGSTON – State Comptroller Thomas DiNapoli has released his “Fiscal Stress” report for local governments that indicates Kingston’s finances are in good shape as of December 2021. For the second year in a row, the city has received a fiscal stress score of 1.7 percent. The ratings range from zero to 100 with the lower number representing less fiscal stress on the municipality.
The Office of the State Comptroller uses the Fiscal Stress Monitoring System to examine the annual financial information reported by each municipality. This analysis provides an objective assessment of the fiscal challenges facing individual local governments and school districts, identifying situations where corrective action may be needed.
The City of Kingston had a fiscal stress score of 6.7 percent in 2017 and it dropped every year until 2020 when it flattened to the current 1.7 percent.
DiNapoli indicated in the report that the financial stability of local governments can change rapidly. “Local governments are also likely to face increasing economic headwinds. Inflation rose at the fastest rate in decades during the first half of 2022, causing the Federal Reserve to increase the federal fund’s interest rate, which will drive higher borrowing costs for both governments and consumers.”
In addition, DiNapoli said, “Geopolitical tensions including the Russian invasion of Ukraine have created supply chain issues and other challenges.” He also said that sales tax collections, “which are more sensitive to these factors and have recently bolstered the fiscal conditions of many local governments, are beginning to show signs of slowing in calendar year 2022.”
“I am proud that our 2021 Fiscal Stress Score remained at the previous year’s low level, and that our environmental stress score went down,” said Mayor Steven Noble. “Despite the lingering effects of the pandemic, we were able to maintain solid financial standing, and by using sound budgeting practices year after year, we are consistently leading the City of Kingston on a strong path forward.”
More information on the report can be found here.
