Thirty-one school districts in New York State have been identified as being in some level of fiscal stress for the school fiscal year ending June 30, 2025, according to the Fiscal Stress Monitoring System overseen by State Comptroller Thomas P. DiNapoli. This figure represents an increase from the previous year, when 22 districts were classified as fiscally stressed.
“In recent years, pandemic-related federal funding as well as increases in state aid have provided districts with significant financial support,” DiNapoli said. “With much of the relief funding having been spent, the number of school districts in fiscal stress has returned to pre-pandemic levels this year. As districts continue to adjust to these conditions, officials should make every effort to ensure budgets are structurally balanced to avoid fiscal problems going forward.”
Between the 2019-20 and 2024-25 school years, districts spent $4 billion out of nearly $4.6 billion available from federal pandemic relief funds. In the most recent year, spending from these funds dropped sharply, with only $317 million used—over a 70% decrease compared to the prior year.
Of the 669 school districts that submitted their financial reports on time for evaluation in 2025, about 4.6% were designated as experiencing some level of fiscal stress. This is higher than last year’s rate of 3.3%.
The Fiscal Stress Monitoring System assesses budgetary solvency based on factors such as year-end fund balance, operating deficits, cash position, and reliance on short-term debt for cashflow needs. Higher scores indicate more severe fiscal stress.
This latest release excludes New York City and the “Big Four” city school districts (Buffalo, Rochester, Syracuse, and Yonkers). Two districts—Harrisville Central School District in Lewis County and Mount Vernon School District in Westchester County—were classified under “significant fiscal stress,” which is the highest level. Four additional districts were labeled as being under “moderate fiscal stress,” while another 25 were considered “susceptible to fiscal stress.”
Regionally, Mohawk Valley reported the highest percentage of stressed school districts at 10.9%, followed by Central New York at 10.4%, and North Country at 7%.
Additionally, DiNapoli’s report identified 24 chronically stressed school districts that have been categorized as stressed for five or more years since the 2012-13 school year; some of these may not currently be designated as stressed.
DiNapoli encouraged district officials to use resources such as the Comptroller’s self-assessment tool and financial toolkit for guidance and training to help manage their finances during challenging periods.
