State Comptroller Tom DiNapoli released a report last week which looked at the fiscal health of local governments throughout the state. And what he found is troubling.
According to the report, almost 300 local governments had deficits in 2010 or 2011 and more than 100 had inadequate cash on hand to pay their current bills.
The report shows that the state’s local governments are facing what is essentially a “perfect storm” of fiscal pressures — including less state aid, falling property values and lower sales tax collections. The result is that local government finances are, in many cases, unsound, and the situation is not likely to improve in the near term.