Assemblywoman Donna Lupardo (D-Endwell) received a reponse from the Comptroller’s office regarding her inquiry about possible school insolvency, she announced today.

In February, she sent a letter to Comptroller DiNapoli asking him to clarify what it means in practical terms if a school district experiences fiscal insolvency. Deputy Comptroller, Steven J. Hancox, responded with a letter citing several options including additional funds provided by the state, the imposition of State fiscal control boards and the Fiscal Stress Monitoring System.

“I appreciate the Deputy Comptroller taking the time to respond to my inquiry regarding school insolvency,” Lupardo said. “There appears to be only a few options available to schools in fiscal distress. Additional state aid would be ideal. That's something I'm working on in our budget negotiations, through a more equitable funding formula. Fiscal control boards remove local control and would surely be a last resort. In the absence of more state aid, and tangible mandate relief, schools will have to continue making steep budget cuts or borrow funds to meet rising expenses. They could of course try to override the property tax cap, but that is highly unlikely in fiscally strapped communities like ours."

To read the Deputy Comptroller’s response: http://www.scribd.com/doc/129104176/Comptroller-insolvency-response-pdf.