Hudson County Executive Craig Guy Says HCST Audit Reveals “Questionable Budgeting Gimmicks” Hidden From School Board

Hudson County Executive Craig Guy issued a statement Tuesday citing a recent audit of the Hudson County Schools of Technology that found a $5.7 million operating deficit and multiple financial irregularities under the district’s previous administration.

“This audit revealed many hard truths,” Guy said. “It is clear the school’s previous administration engaged in questionable budgeting gimmicks, which were hidden from the school board and has led to a ballooning deficit.”

Guy said he reconstituted the HCST Board upon taking office, which in turn appointed new Superintendent Tom Macagnano. “I am pleased that many of the recommendations made by the audit’s authors have already been implemented,” he said.

The audit, covering the fiscal year ended June 30, 2025, found a $5,786,995 operating deficit and a projected deficit of more than $10 million for fiscal year 2026. Auditors identified $3,445,355 in unsupported manual budget transfers, millions in unrecorded expenses including four months of health benefits totaling $4,247,051, construction contracts awarded without required public bidding, and nearly $2 million in workforce grant activity tracked outside the district’s financial system.

The findings trigger a legal requirement under New Jersey state law for a forensic audit by the Office of the State Auditor.