NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3081
SPONSOR: Zebrowski TITLE OF BILL:
An act to amend the general municipal law, in relation to enacting the
local government fiscal indicator system act
PURPOSE OF THE BILL:
This bill will create a local government fiscal indicator system that
will monitor municipalities and determine whether they are experiencing
fiscal stress.
SUMMARY OF PROVISIONS:
Section 1 of the bill relates to the title of the act "Local Government
Fiscal Indicator System Act."
Section 2 of the bill amends the general municipal law by adding a new
article 4-A entitled local government fiscal indicator system act. The
fiscal indicator system evaluates cities, counties, towns, villages and
school districts through three different indicators that represent a
municipality's ability to balance its budgets and maintain fiscal
stability. There are four levels of fiscal designation that represent
increasing severity, including three levels of fiscal stress and fiscal
crisis. The highest level of designation for a municipality is fiscal
crisis where a municipality has fallen in deep financial trouble. Each
level will require specific courses of action and state intervention to
prevent future economic decline. If necessary, the board of local
government deficit financing will be created and shall provide deficit
financing and proper oversight for municipalities to issue bonds to
cover their accumulated deficit.
Section 3 of the bill relates to the effective date.
JUSTIFICATION:
This bill would create a fiscal indicator system to evaluate a munici-
pality or school district's ability to balance its budget and maintain
fiscal stability. Unfortunately there are instances when local govern-
ments find themselves in fiscal trouble and the state's ability to
assist is weakened. Under this legislation the state will evaluate the
situation of local governments by using the indicators in the bill to
designate their level of fiscal stress. Once placed in a level there are
specific requirements and recommendations a state will make in order to
correct the problem. This fiscal indicator system works as a support
system for local governments in times of fiscal trouble by providing
assistance and guidance before fiscal crisis is reached. This bill serve
as an early warning system to ensure state assistance can be provided to
prevent further decline.
PRIOR LEGISLATIVE HISTORY:
A. 1504 of 2021-22,
A. 3344 of 2019-20,
A. 1524 of 2017-18,
A. 1355 of 2015-2016,
A. 1327 of 2013-2014,
A. 10222 of 2011-12.
FISCAL IMPLICATIONS FOR STATE:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
