New York Comptroller Thomas DiNapoli has proposed legislation to give money to fiscally stressed localities to hire financial advisors for long-term budget planning.
In his April 22 proposal, DiNapoli said the state's Financial Restructuring Board for Local Governments would reimburse local governments that hired financial advisors.
"Long-term budget planning is vital to the fiscal health of our localities," DiNapoli said. "The tax cap and our state's continued slow economic recovery underscore the need for accurate, balanced budgets reflecting realistic multi-year financial plans. State policymakers must continue to do their part to help localities find and implement real, lasting solutions. This proposal will help encourage municipalities to take action by offering them assistance in dealing with a potential impediment to these efforts."
DiNapoli has created proposed bills for the New York legislature. On Tuesday a DiNapoli spokesman was unsure if the bills had gained sponsors yet.
Counties, cities, towns and villages identified by the above-mentioned board as fiscally distressed would be offered full or partial reimbursements for hiring financial advisors. The board has enough money already to support the hiring of financial advisors for localities, a DiNapoli spokesman said.
The board generally counts local governments whose real estate tax rates are in the 76th percentile or higher or whose average fund balance is less than 5% of their general funds as being in fiscal stress.
"Multiyear financial planning is a tool that will enable these entities to develop revenue and expenditure trends, establish long-term priorities and goals, and take into consideration the impact of near-term budgeting decisions on future fiscal years," DiNapoli's staff said. "It also allows officials to assess alternative approaches to financing operations."
DiNapoli has created a Fiscal Monitoring System for local governments. The system has identified a total of 142 counties, towns, cities, villages and school districts in some form of fiscal stress.
DiNapoli's legislation would not apply to New York City or to the state's school districts.
