Inaccurate budgeting has created an $11 million general fund shortfall in the city of Poughkeepsie”™s books, according to an audit issued May 22 by state Comptroller Thomas P. DiNapoli. The report also found the city”™s debt burden has increased 45 percent over the past five years.
In response, the mayor said in a letter the city requested the audit five years ago.
“Perhaps had it been done when it was requested some of the problems you noted would have been corrected sooner,” Mayor John Tkazyik wrote to the comptroller”™s office. He said four issues plague city finances ”“ unfunded state mandates, pension costs, health care and the most serious recession since the Great Depression.
But, Tkazyik said, “Unlike the state of New York, the city has refused to use ‘one-shots’ to balance its budget.” He noted several bellwether metrics that support Poughkeepsie”™s economic health, including reduced short- and long-term debt.
“Communities across New York are dealing with increased fiscal stress and Poughkeepsie is no different,” DiNapoli said.
In 2010 and 2011, auditors found city officials overestimated revenues by $3.2 million and underbudgeted appropriations by $4.7 million. This includes overestimating payments in lieu of taxes ($381,000), rental payments ($305,000) and interest earnings ($426,000), as well as overexpending budget line items for health insurance ($944,000), accumulated sick pay and vacation pay ($750,000) and workers compensation ($415,000).
The disagreement includes the comptroller”™s request for realistic budgets and the mayor”™s counter, “The 2013 budget was formulated by determining realistic revenue estimates based on prior actual period.”
