Poughkeepsie’s Stunning Financial Turnaround: Debt Down, Investment Up!

The City of Poughkeepsie is celebrating a significant milestone in its financial recovery. After receiving improved ratings from Moody’s and Standard & Poor’s, the city has now garnered praise from New York State Comptroller Tom DiNapoli. This positive shift comes on the heels of years of diligent deficit reductions initiated by former Mayor Rob Rolison, now serving as State Senator for District 39.

A Step Toward Financial Stability

Thanks to these ongoing efforts, Poughkeepsie’s fiscal stress score from the State Comptroller’s office has improved considerably. Under DiNapoli’s rating system, the city is now only a few points away from moving out of the “susceptible fiscal stress” category, potentially achieving a designation of no stress at all. Notably, the city has also been upgraded from the “susceptible environmental stress” category, marking a significant turnaround in its financial outlook. These are the city’s best rankings since the Fiscal Stress Monitoring System was enhanced in 2017.

Understanding the Ratings

The Fiscal Stress Monitoring System evaluates local governments based on various financial indicators, including year-end fund balances, cash-on-hand, short-term borrowing, fixed costs, and operating deficits. The environmental stress category assesses local economic conditions, such as unemployment rates, household income, the strength of the tax base, and municipal budgeting practices.

Commitment to Continued Improvement

“The hard work continues as we eradicate the deficit,” stated Mayor Flowers. He emphasized that these improvements will attract investment to the city and lower borrowing costs for future capital projects. Poughkeepsie faced a daunting $13.2 million general fund deficit in 2016, but through collaborative efforts from previous mayors, the Common Council, and Finance Commissioner Dr. Brian Martinez, the city has made significant strides toward restoring fiscal health. As Poughkeepsie moves forward, the community looks forward to reaping the benefits of these positive changes.