County of Ulster, NY
2023 Proposed Budget Analysis & Review
Budgetary Variances
Read CMA’s Printed Report
View 2023 Proposed Budget
Budgetary Variance Trends – General Revenues
For the purpose of the Review, a five-year analysis was conducted on revenues in the County’s Governmental Funds. The findings of the variance analysis are provided in Exhibit BV-I.
CMA Finding – Revenue Variance Analysis. The findings for revenue variance analysis suggest that several sources of revenue in the governmental funds are historically underbudgeted. A large positive variance was reported for 2021, primarily due to favorable sale tax revenues. Nevertheless, sales tax should be closely monitored during 2023 as result of severe economic concerns.
Budgetary Variance Trends – General Expenditures
The Government Finance Officers Association recommends the evaluation of fiscal performance relative to a jurisdiction’s adopted budget. By monitoring results, structural problems can be identified and the excessive padding of expenditures can be detected. Findings of consistent, positive variances in expenditure categories can support budgetary reductions in those areas. For the purpose of the Review, a five-year analysis was conducted on expenditures in the County’s Governmental Funds. The findings of the variance analysis are provided in Exhibit BV-II.
CMA Finding – Expenditure Variance Analysis. The findings for expenditures sharply contrasted that of revenues. For each of the fiscal years ended December 31, 2017 through 2021, inclusive, the sum of variances reported for expenditures, excluding transfers, were positive by $22.1 million, $15.4 million, $15.9 million, $38.9 million and $38.8 million, respectively. Although a small annual variance would be appropriate, the disproportionate positive expenditure variances are suggestive of excessive slack in the budget.