City of Rochester, SEC reach settlement over school district’s budget shortfall

ROCHESTER, N.Y. — The saga between the City of Rochester and the U.S. Securities and Exchange Commission over the city school district’s budget shortfall has com to a close.

The SEC sued the city after it was revealed in 2019 that the district exceeded its budget for the prior fiscal year by $30 million.

The city and the SEC have reached a settlement. It does not require that the city pay fines or call for a financial monitor. The school district’s former finance director settled in 2022 for a $25,000 fine.

The city insisted on flighting this suit, arguing the case would make every city employee open to consequences for the mistakes of a different government body, like the school district.