A state comptroller's report is not expected to lead to budget changes in Sidney, a town official said recently.

Because the town issued $2.3 million in bonds to help pay off debt from its defunct municipal hospital, its budget is subject to state review until that debt is paid off, according to a statement from the comptroller's office.

A three-page release issued Oct. 29 by Deputy Comptroller Steven J. Hancox stated that the board must explain in writing why it has appropriated $133,000 in 2009 for the hospital _ funding that would increase a $1.7 million negative fund balance.

The Hospital closed in 2005, leaving a debt of about $7 million, which the town has reduced by a variety of means. These include a $2 million payment from Bassett Healthcare in Cooperstown using money it received from the state to open a hospital in the building this year.

The town is hoping that it can still sell the building and use the proceeds to pay off the balance of the debt, said Sidney Supervisor Joseph Maddalone.

The review was discussed with the comptroller's office, and it agreed that the current plan was acceptable, he said.

The town only needs to explain the situation in writing and there should be no further action, Maddalone said.

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