ARTIFICIAL INTELLIGENCE [AI] IS NOT USED, IN WHOLE OR IN PART, IN PREPARING NYPPL SUMMARIES OF JUDICIAL AND QUASI-JUDICIAL DECISIONS

Sep 27, 2025

Complimentary Government Technology Webinar- Navigating the shift

On September 30, 2025 Government and Technology will conduct a 30 minute Webinar for State and local government and education (SLED) leaders who register covering employment changes resulting from shifting federal priorities and evolving funding landscapes to rising demands for innovation and resilience. This 30 minute Webinar will start 1:30 PM PT / 4:30 PM ET

Government and Technology noted that these changes create both new opportunities and shared challenges for public agencies and their private-sector partners.

Teri Takai, Chief Programs Officer of Government Technology, and Joe Morris, Chief Innovation Officer, will conduct a live, interactive "Ask Us Anything" 30-minute webinarwhere they will turn the floor over to participants! Instead of a set agenda, they will take questions from participants — submitted in advance or asked live — on the issues shaping the public-sector landscape, from federal policy shifts to emerging trends across education, infrastructure, emergency services, and more. 

Whether you’re a public-sector leader refining your agency’s strategy or a private-sector vendor aligning your solutions with government priorities, this interactive session ensures you walk away with the actionable answers you need.

Click here to REGISTER 

Can’t attend the live briefing? Those registering now can make arrangement to have a recording of the program sent to them.

Questions? Contact Government Technology at resources@govtech.com



Selected items posted on blogs during the week ending September 26, 2025

AI That Works for Government: Smarter Tools, Better Experiences  Hear how public agencies are using AI built for government to streamline services, reduce friction and meet rising resident expectations. WATCH NOW 

Inside Recent Public Sector Breaches: What the Data Tells Us  Government agencies are facing a rising tide of targeted cyberattacks. This report breaks down the most common tactics hackers used in 2024 to infiltrate and persist inside public systems. Learn what made these attacks successful—and what public sector leaders need to know to keep systems, data, and citizens safe. DOWNLOAD

Public vs. Private Sector CIAM: What Sets Them Apart  Explore tailored CIAM (Customer Identity and Access Management) solutions, built for the public sector. WATCH NOW 

Ask the Experts: Navigating AI Adoption in Government  Whether your agency is just starting to look at AI or already experimenting with pilots, this discussion will offer valuable insights into how government leaders are thinking strategically about the future of AI in public service. WATCH NOW 

Future-Ready IT Service: Insights from City of Ft. Myers  Hear how forward-thinking IT leaders are modernizing service delivery to drive efficiency, empower staff and better serve their  communities. WATCH NOW 

Paperless Billing: Cut Fraud, Costs, and Delinquent Payments  Learn how digital billing can help your agency cut costs, reduce fraud, and improve service delivery. WATCH NOW 

Mayors lead with tech-enabled transit solutions. City leaders share firsthand how on-demand transit is bridging gaps and boosting economies. Read the full article featuring insights from city leaders.

3 Ways to Get Ahead of Data Management Challenges in 2026  Security and IT teams in government are facing more data, more mandates, and tighter budgets. In this 30-minute webinar, learn practical ways to manage data smarter — so you can reduce waste, improve visibility, and stay ready for what’s next. WATCH NOW

Launch an on-demand service in 6 weeks  Explore how municipalities launched efficient on-demand networks in record time. How to launch a microtransit service in a matter of weeks. 


Sep 26, 2025

New York State's Comptroller issues fiscal stress monitoring report for certain local governments

Click on text highlighted in color below to access the report posted on the Internet

On September 26, 2025, New York State Comptroller Thomas P. DiNapoli issue a financial stress report indicated that 23 local governments in New York State were designated as being "in financial stress" for local fiscal years [FYE] ending in 2024 based on the State Comptroller's Fiscal Stress Monitoring System [FSMS] reports.

“The number of local governments designated in fiscal stress, while still low, rose over the prior year, as federal pandemic relief funding was winding down,” DiNapoli said. “Local governments now facing volatility in revenue sources and uncertainty from significant shifts in federal spending should remain vigilant and pragmatic when spending and planning for the future.”

DiNapoli launched FSMS in 2013 to evaluate fiscal stress for local governments, using indicators based on year-end fund balance, operating deficits, cash-on-hand, short-term borrowing and fixed costs. The system’s fiscal stress scores provide an early warning to local officials about fiscal issues and give the public insight into their communities’ financial condition.

DiNapoli releases fiscal stress scores for municipalities, excluding New York City, twice a year. The scores announced today are for local governments operating on a calendar year basis for FYE 2024, covering all counties and towns, 44 cities and 13 villages. This round of scoring designated 14 local governments in fiscal stress, including four cities, nine towns and one village. In April, DiNapoli announced that nine villages with non-calendar fiscal years were designated in stress. School district scores are released in January.

For FYE 2024, the City of Little Falls (Herkimer County), as well as the villages of Cambridge (Washington), Island Park (Nassau), and Saugerties (Ulster), were designated in the highest-ranking category of “significant stress.”

The cities of Albany (Albany) and Poughkeepsie (Dutchess) were designated in “moderate fiscal stress,” along with the towns of Massena (St. Lawrence) and Yates (Orleans) and the villages of Coxsackie (Greene), South Blooming Grove (Orange), and Washingtonville (Orange).

The City of Elmira (Chemung), as well as the towns of Bennington (Wyoming), Canton (St. Lawrence), Centerville (Allegany), Kent (Putnam), Louisville (St. Lawrence), Schroeppel (Oswego), and West Turin (Lewis), were designated as “susceptible to fiscal stress.” The villages of Chateaugay (Franklin), Huntington Bay (Suffolk), Kaser (Rockland), and Liberty (Sullivan) were also designated as “susceptible to fiscal stress.”

FSMS FYE2024

Along with the scores released on September 26, 2025y, DiNapoli released a report summarizing FYE 2024 fiscal stress scoring results for both calendar year and non-calendar year municipalities, including designations by class, FSMS indicator analysis, and issues of concern, among other things.

The report found that:

  • Ten of the municipalities designated in fiscal stress in FYE 2024 also received a designation in 2023. This includes the cities of Albany, Little Falls, and Poughkeepsie.
  • While the percentage of cities designated in fiscal stress increased from 6.8% in FYE 2023 to 8.5% in 2024, it was still well below the double-digit rates seen from 2020 to 2022.
  • The number of towns designated as susceptible to fiscal stress more than tripled, from two to seven; however, the number of towns designated in moderate stress decreased by one, while none were in the significant category.
  • No counties received a fiscal stress designation for the fourth consecutive year.

The report also found that the number of municipalities that failed to file required annual financial reports with DiNapoli’s office in time to receive a fiscal stress score declined in FYE 2024, dropping from 264 in 2023 to 240. However, that number is nearly double what it was 10 years ago. In 2025, DiNapoli’s office has made additional targeted outreach and training efforts to help local governments comply with the law and bring their financial reporting up to date.     

A municipality that fails to file its financial reports in time to receive a fiscal stress score may indicate a lack of proper financial management, prevent local officials from taking necessary steps to avoid a fiscal crisis, and diminish transparency and accountability, undermining public confidence.

Three of the municipalities designated in fiscal stress in FYE 2024 had not received a FSMS score in multiple years because they failed to file annual financial data in time: the Village of Island Park, which had not received a score from FYE 2020 to 2023, was designated in significant stress in 2024, and the Town of Massena and the Village of Washingtonville were each designated in moderate stress in FYE 2024 after not filing in time to receive a score from 2018 to 2023.

Lists

Municipalities Designated in Stress for Fiscal Year Ending 2024

Municipalities Who Did Not File in Time or Filed Inconclusively

Excel Spreadsheet

Detailed List of All Municipalities in State and Fiscal Stress Scores

Report

Fiscal Stress Monitoring System – Municipalities: Fiscal Year 2024 Results

Online Interactive Visualization

https://www.osc.ny.gov/local-government/fiscal-monitoring/fiscal-stress-monitoring-system-statistics

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Local government and school audits posted on the Internet on September 25, 2025

On September 25, 2025, New York State Comptroller Thomas P. DiNapoli announced that the following local government and school audits were posted on the Internet.

Click on the text highlighted in COLOR to access the audit report.


Town of Lee – Financial Management (Oneida County)

The board did not effectively manage the general and highway fund balances, allowing excessive unrestricted fund balances to accumulate. At the end of 2024, the general and highway funds had a total of $8.3 million in unrestricted fund balance. When compared to the general and highway fund appropriations in the town’s 2025 budget, the amount of unrestricted fund balance could fully fund over three and a half years of operations at current spending levels.


Chenango County – Court and Trust Funds

The treasurer generally established adequate procedures, maintained appropriate records and properly reported court and trust funds. However, the treasurer’s court and trust ledger did not contain all required information.


Holtsville Fire District – Financial Management (Suffolk County)

The board did not adopt budgets with reasonable estimates or properly establish and manage capital reserve funds. From 2019 through 2023, the board transferred an additional $1 million into reserve funds. This was 45% more than the $2.2 million in transfers planned, with no indication of the board’s plan to use the funds. The district’s tax levy increased by $771,762 from 2019 to 2024, meaning that real property taxes may have been higher than necessary. The board developed and adopted budgets that resulted in a total operating surplus of $4.8 million between fiscal years 2019 and 2023. Additionally, the board did not properly establish two capital reserve funds.


Spencerport Central School District – Employee Benefits (Monroe County)

District officials did not always appropriately authorize and accurately calculate separation and unused leave payments, resulting in erroneous payments. Of the separation payments totaling $357,327 reviewed, auditors determined that payments totaling $48,058 were not authorized or accurate. As a result, district officials overpaid three employees a total of $14,213 and underpaid one employee $77 for separation payments. Of the unused leave payments totaling $51,851 reviewed, auditors determined that payments totaling $3,045 were not authorized or accurate. Therefore, district officials overpaid two employees a total of $1,715 for unused leave.


Manhasset Union Free School District – Non-Payroll Disbursements (Nassau County)

While the board and district officials generally ensured that the non-payroll disbursements were adequately supported and for valid district purposes, they did not always ensure that the disbursements were properly audited and approved before officials made the disbursements. Auditors reviewed 15 wire transfers totaling $2.4 million and determined officials properly reviewed and approved them. Auditors also reviewed 50 non-payroll disbursements, including 137 invoices, totaling $379,209, and determined that 10 invoices totaling $26,441 were not properly audited or approved before they were paid.


Village of Cato – Audit Follow-Up (Cayuga County)

A previous audit of the Village of Cato – Water Financial Operations (2023M-145) determined that the board and officials did not effectively manage the financial operations of the water fund, establish adequate reserves or develop long-term financial and capital plans until the Cayuga County Health Department forced the board to submit a plan. The audit included 11 recommendations to help village officials better manage operations and of the 11 audit recommendations, officials partially implemented three recommendations and did not implement eight recommendations.

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Sep 25, 2025

Son pleaded guilty to identity theft after stealing $79,943 in pension payments sent to his deceased father

On September 23, 2025, New York State Comptroller Thomas P. Di Napoli and Nassau County District Attorney Anne T. Donnelly announced the son of a state pensioner from Long Island was sentenced to five years’ probation and ordered to pay full restitution after being convicted of identity theft in connection with his theft of $79,943 in pension payments sent to his deceased father. The defendant, Richard Gaines Jr., 55, of Daytona Beach, Florida pleaded guilty to identity theft in the first degree in May, 2025.

“Richard Gaines’ conviction should serve as a clear warning to anyone who considers stealing from the New York state retirement system that they will be caught and prosecuted no matter where they live,” DiNapoli said. “My thanks to District Attorney Donnelly for her partnership in helping to protect our pension system from fraud.”

"Richard Gaines shamelessly stole tens of thousands of dollars from the New York State pension system by taking money that was never his," Donnelly said. "Our retirement system is built to protect hardworking employees who earned their pensions over years of service, not thieves who have the audacity to pilfer from a deceased parent. This sentence serves as a reminder that anyone who tries to abuse it will face consequences."

The defendant’s father worked for the Nassau County Bridge Authority for 29 years before retiring in 1996. He received state pension payments monthly via direct deposit into his checking account. He died on Nov. 9, 2019, and all pension  payments were to end, but DiNapoli’s investigators found Gaines Jr. never informed the system of his father’s death until three years later and instead used his father’s debit card to steal $79,0845.59 in benefits deposited into the account from 2019 to 2022. Gaines Jr. was not an account holder on his father’s checking account.

Gaines Jr. used about $2,484 of the money he stole to make personal purchases at Nassau County businesses. He also made ATM withdrawals in New Jersey, Georgia and Florida.

Gaines Jr. was sentenced before Judge Colin O’Donnell in Nassau County Court.

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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236 or by emailing a complaint to investigations@osc.ny.gov.


NYPPL Publisher Harvey Randall served as Principal Attorney, New York State Department of Civil Service; Director of Personnel, SUNY Central Administration; Director of Research, Governor’s Office of Employee Relations; and Staff Judge Advocate General, New York Guard. Consistent with the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations, the material posted to this blog is presented with the understanding that neither the publisher nor NYPPL and, or, its staff and contributors are providing legal advice to the reader and in the event legal or other expert assistance is needed, the reader is urged to seek such advice from a knowledgeable professional.

CAUTION

Subsequent court and administrative rulings, or changes to laws, rules and regulations may have modified or clarified or vacated or reversed the information and, or, decisions summarized in NYPPL. For example, New York State Department of Civil Service's Advisory Memorandum 24-08 reflects changes required as the result of certain amendments to §72 of the New York State Civil Service Law to take effect January 1, 2025 [See Chapter 306 of the Laws of 2024]. Advisory Memorandum 24-08 in PDF format is posted on the Internet at https://www.cs.ny.gov/ssd/pdf/AM24-08Combined.pdf. Accordingly, the information and case summaries should be Shepardized® or otherwise checked to make certain that the most recent information is being considered by the reader.
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