New York state lawmakers yesterday announced plans to create a financial restructuring board and binding arbitration process to help struggling municipalities manage their finances, Reuters reported yesterday. The legislation, which will be taken up by the state legislature soon, is designed to shore up fiscally distressed communities with shrinking tax bases and high expenses. "Localities across the state are facing a growing financial crisis of soaring retirement costs while their populations stagnate and property values drop," said New York Governor Andrew Cuomo, announcing the deal with the majority leaders in both houses of the state legislature. "The only options for struggling municipalities cannot be bankruptcy or being subject to a financial control board." The governor did not indicate which cities and towns would likely take part in the new program. The board would be charged with making recommendations on improving fiscal stability, management and the delivery of public services to municipalities that request its help. The board would be able give communities up to $5 million to make the changes.
