State Super Control Board Taking Over Struggling New York Local Governments?
In recent news it has been stated that New York Gov. Cuomo and Comptroller Thomas DiNapoli are looking to propose legislation that would create a state super control board. The board that would take over the finances of struggling local governments on the verge of bankruptcy, including cities, towns, villages, and counties.
Of course public labor unions oppose such legislation because it would allow the state to violate union contracts, which represent one of the largest local government expenditures.
Such control boards are not uncommon in New York and have been set in place at the local level. The governments of Troy, Buffalo, Yonkers, and Nassau County have been under finance control boards because they were on the verge of an economic crisis. It was reported that currently 300 local governments ran deficits and more than 100 local governments do not have enough to pay the bills.
The proposed legislation was described as not “…completely replac[ing] the locally elected official. But it would provide them with the political ‘cover’ many privately say they need to stand up to the powerful unions, which have consistently resisted spending cuts.”
Conflicting reports show that Comptroller DiNapoli has not been in discussions with Gov. Cuomo and he believes it is premature for the installation of such a board. In a press conference DiNapoli emphasized that the idea needs to be examined in more detail.