NY state officials eye automatic control boards | Reuters
By Joan Gralla
The latest discussion of control boards in New York follows a report last week by DiNapoli that noted eight municipalities were so close to hitting the maximum level of property tax allowed by the state that they were at risk of losing state aid.
The concepts that policy makers now are analyzing would sidestep the political process by devising a list of fiscal indicators, according to the source, who requested anonymity. If a municipality was in the danger zone on a minimum number of them, an advisory board might be created, or the localities' finances might be handed over to a control board.
Tests might include whether the fund balance was in deficit, whether reserves had been exhausted, or whether the municipality had exceeded the maximum property tax level.
Some policy makers are concerned that automatically creating a control board to run a localities' finances would give the state too much power, the source said.