July 9, 2015

Staggered Fiscal Years Between State and Local Governments

OLR Report 2015-R-0103 identifies three states that stagger state and local fiscal years by law. Specifically, Florida’s and Mississippi’s fiscal years run from July 1 to June 30, while their municipal fiscal years lag behind, running from October 1 to September 30. New York law sets different fiscal years for villages, towns, and counties, but each ends after the state’s fiscal year.  In Texas, municipalities may set their own fiscal years by ordinance, while county fiscal years either follow the calendar year or run from October 1 to September 31.

The opinions of municipal representatives differ as to the value of the staggered years. One indicated that the practice allows the city to account for state funding when preparing the city’s budget.  But some reported that the staggered fiscal year complicates their counties’ budgets. Some officials did not identify any specific advantages or disadvantages.