On Tuesday, Gov. Cuomo announced a plan under which local governments would be eligible for a portion of $80 million in state aid if they agree to consolidation recommendations made by a new financial restructuring board.
The idea was first announced in his State of the State speech back in January. He met with local government and labor officials, and then announced some details in a Capitol press conference.
According to the Governor, the entity he is proposing would help any “fiscally distressed” municipality with “voluntary” restructuring – essentially a final alternative before the local government would require a financial control board.
The new panel – which must be approved by the Legislature — will be made up of outside restructuring experts, Division of Budget officials as well as representatives of the Attorney General’s and Comptroller’s offices. The panel’s restructuring recommendations would become binding if a municipality accepted state funding offered with them. It would not have the power to freeze or modify labor contracts.