May 28, 2013
By Stephanie West
Poughkeepsie is facing severe fiscal stress which could place that city in serious harm. Inaccurate budgeting has created an $11 million general fund deficit in that city. The State Comptroller report also found the city’s debt burden has increased 45 percent over the past five years.
“Communities across New York are dealing with increased fiscal stress and Poughkeepsie is no different,” said DiNapoli. “But unrealistic budgeting has severely deteriorated Poughkeepsie’s financial condition. City officials have continued to overestimate revenue and under-budget for known expenditures. Ultimately, this may reduce the city’s ability to provide services to its residents and place a growing burden on property taxpayers. Officials must develop a long-term plan to get the city back on track.”
In 2010 and 2011, auditors found city officials over-estimated revenues by $3.2 million and under-budgeted appropriations by $4.7 million. By failing to base their budgets on actual revenues and each prior year’s actual expenditures, city officials depleted the city’s general fund balance by $8 million in 2010 and 2011, and by a total of nearly $13 million from 2007 to 2011.