County official reports EFT vendor payments, strong fund balance and rising dispensary revenue

A county presenter briefed the Albany County Legislature on May 12 about several finance and administration topics, including a push to convert vendors to electronic funds transfer (EFT), recent revenue growth tied to cannabis dispensaries and the county’s fund-balance position.

The presenter said that prior to February the county’s vendor payments had been made exclusively by paper check; since then, the county began converting vendors to EFT and had converted about 1,200 vendors. In 2024 the presenter said the county processed about 51,000 paper claims and that the conversion to EFT would create recurring efficiencies and a reduced risk of fraud.

The presenter reported private-pay revenue growth at a facility in the county—from $1.4 million in February 2020 to $6.7 million in February 2024—and gave figures for federal subawards and contracts, saying sub-awards and other contractors total $5,900,000 and "the remaining $23,700,000 is subject to federal requirements including that it must be spent by 12/31/2026." The speaker cautioned federal funding changes were uncertain and said actual budget impacts from potential federal cuts were not yet known.

On fund balance and borrowing, the presenter said the county had not borrowed since February 2022 and that the current fund balance stood at about $141 million, or roughly 19.5 percent, which the presenter said was higher than the county’s stated fund-balance policy target of 15 percent (the presenter also referenced a 12.5 percent target figure during remarks). The presenter said the strong balance would allow the county to cover potential Medicaid payment increases, and that the county would decide later whether to borrow in 2024.

Regarding cannabis-related revenue, the presenter said that in 2024 the county had six licensed dispensaries; in 2025 there were 26 licensed dispensaries and 16 operational. The presenter described a state distribution pool of $1,500,000 and said the county’s share was 1 percent (about $300,000 at current levels) and municipalities received 3 percent; the presenter added the county’s share was expected to grow above $1 million if the number of operational dispensaries continued to expand.

Legislators asked follow-up questions. One legislator said county systems do not currently interface with state Department of Social Services software and requested the county pursue software integration to improve auditing of DSS payments, which county staff said was controlled by the state but that county staff were seeking solutions. Another asked about the county’s borrowing posture and the presenter reiterated the county’s options and fund-balance strength.

The presenter concluded by offering to answer additional questions and said the presentation materials would be posted on the presenter’s website.