Names of Struggling NY State Municipalities Will Be Released

by San Antonio Attorney

The names of town and city governments in New York State that are experiencing major financial troubles will be published in the weeks to come. The list of names will be released by the financial watchdog of the state, utilizing the latest monitoring system developed to prevent extreme measures like external oversight or bankruptcy.

Villages, cities and towns in New York are dealing with fiscal stress. A week ago, a federal court found Stockton, California, eligible for bankruptcy protection. Earlier this year, there was an emergency state takeover in Detroit, Michigan to repair the city’s budget.

The Fiscal Stress Monitoring System was made to prevent those outcomes. Thomas DiNapoli, Comptroller of New York, said there are no municipality bankruptcies as of the moment in spite of the problems caused by the 2007 to 2009 financial meltdown.

The Comptroller also said if New York sets precedent for distressed cities, the municipal bond market would be greatly affected. If that happens, investors would be reluctant in providing loans to other municipalities, particularly those presently struggling with serious financial problems.

The first batch of municipality names is expected to be published before the end of May. The monitoring system will also keep an eye on school districts, according to the Comptroller’s office.

There will probably be about a dozen of municipalities that are significantly financially stressed, according to a source knowledgeable about the matter. Municipalities that are known to have problems could also be included in the list. Rockland County and Long Beach in Long Island have fiscal problems that are not well-publicized.

NY’s monitoring system was developed as a mechanism for early intervention with DiNapoli’s office providing assistance, planning and training to struggling school districts and municipalities, according to the Comprtroller’s office.

 

-          It is possible to avoid bankruptcy and prevent losing your property and damaging your credit score. It is important to talk to a San Antonio Chapter 7 Attorney to know how you can avoid bankruptcy.

Leave a Comment

Previous post:

Next post: