New York Gov. Andrew Cuomo appointed six people to the new Financial Restructuring Board for Local Governments, which is tasked with creating restructuring strategies to provide long-term solutions for municipalities under fiscal stress
The board’s website, frb.ny.gov, was also launched on Sept. 12 and includes information about services the FRB can offer municipalities and has links to useful local government information.
“Local governments across New York are facing rising financial challenges and we cannot afford to leave these issues unaddressed for any longer,” Cuomo said in a press release.
Cuomo named to the board: Assemblyman Herman D. Farrell, Jr., upon the recommendation of the Speaker of the Assembly; Sen. Jack M. Martins, uponthe recommendation of the Temporary President of the Senate; RoAnn Destito, Commissioner of the New York State Office of General Services; Matthew J. Driscoll, President and CEO of the Environmental Facilities Corp.; Sydney Cresswell, a local government policy advisor for Cuomo; and Todd R. Snyder, executive vice chairman of North American Global Financial Advisory and co-head of the debt and restructuring group at Rothschild Inc.
In addition to the six appointees, the 10-member board includes Budget Director Robert Megna, who will serve as chair, State Comptroller Thomas DiNapoli, Attorney General Eric Schneiderman, and Secretary of State Cesar Perales.
“The Financial Restructuring Board brings together experienced individuals from both state government and the private sector to offer assistance and help develop unique plans for localities to better manage their finances.” Cuomo said. “These members will use their expertise to help our most distressed municipalities operate more efficiently and sustainability so that they can better serve taxpayers.”
The FRB will help municipalities that are eligible to manage their finances and provide public services in a more cost-effective manner.
Any local government outside of New York City that is deemed a fiscally eligible municipality by the FRB could request a review by and assistance from the board. The FRB will be authorized to make recommendations on improving fiscal stability, management and the delivery of public services and to provide up to $5 million per municipality through the Local Government Performance Efficiency Program. A total of $80 million is available this year through the program. If a municipality agrees to the FRB’s proposals, it would be contractually bound to fulfill them.
The board could also serve, with the agreement of the municipality and unions, as an alternative arbitration panel to the binding arbitration process for police, fire, or deputy sheriff contracts. The board would render an arbitration ruling within six months.
