HUDSON VALLEY- Several Hudson Valley communities are facing new fiscal warning signs, according to the latest report from State Comptroller Tom DiNapoli, and others in the region are drawing attention for failing to file required financial reports on time.
The comptroller’s office announced that seven villages statewide were designated under its Fiscal Stress Monitoring System (FSMS) for the 2025 fiscal year. While only one village fell into the most severe category, a handful of others, including one in the Hudson Valley, were rated in moderate fiscal stress.
The Village of Tivoli was among four villages statewide classified in “moderate fiscal stress,” signaling ongoing budgetary pressures that could require corrective action. The designation is based on factors such as fund balance, cash flow, and operating deficits.
Although no villages in Orange, Ulster, or Rockland counties received a fiscal stress designation this year, the report highlighted a different concern: several Hudson Valley municipalities failed to file their annual financial reports in time to be evaluated.
Those include the Village of Washingtonville, Village of Saugerties, and Village of Kaser, all of which had previously been identified as experiencing fiscal stress in 2024.
According to DiNapoli, late or missing financial filings can themselves be a red flag.
“A gap in filing is in itself a risk and creates a missed opportunity to identify fiscal stress and take corrective action before more drastic steps are needed,” he said in a statement.
Statewide, nearly 20 percent of local governments with non-calendar fiscal years, 101 municipalities, did not submit their financial reports in time to receive a score. That figure represents more than 386,000 residents living in communities without an updated fiscal assessment.
The FSMS, launched in 2012, evaluates municipalities using self-reported financial data and assigns designations ranging from “significant fiscal stress” to “susceptible to fiscal stress.” The system also considers broader economic indicators such as population trends, poverty levels, and unemployment.
While the overall number of municipalities in fiscal stress remains relatively low, DiNapoli cautioned that economic uncertainty could impact local revenues and budgets in the coming years. He encouraged local officials to use the state’s self-assessment tools to better anticipate financial challenges and adjust spending plans accordingly.
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