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Malloy proposes creation of municipal program that could help Bristol

Photo (c) Mike Uchalid

Photo (c) Mike Uchalid

Governor Malloy announced that the state budget proposal he will release next week will include a plan for creating a municipal accountability system designed to provide state intervention and support to local governments confronting fiscal challenges.

To achieve this, the Governor is proposing a tiered system of accountability under which municipalities would be subject to increasing levels of review and intervention based on their fiscal condition and the amount of state aid that they receive.

The proposed legislation will create a Municipal Accountability Review Board that will be empowered to review municipal finances and place towns and cities into an accountability framework based on factors such as bond rating, fund balance, and state aid as a percent of budget.

This tiered framework will determine the scope of the board’s powers and support, including technical assistance for municipalities to put them on a path to fiscal health.

The Governor explained that this oversight will bring more accountability to ensure improvement in certain towns and cities with poor fiscal condition.

“Our towns and cities are the foundation of a strong and prosperous state. Healthy, vibrant communities – and thriving urban centers in particular – are essential for our success in this global economy,” Governor Malloy said.

“In order to have vibrant downtowns, retain and grow jobs, and attract new businesses, we need to make sure all of our municipalities are on solid fiscal ground or on the path to fiscal health. As part of my upcoming state budget proposal, I will be proposing enhanced municipal accountability for towns and cities in poor fiscal condition. With this system, the state will be poised to intercede early to put struggling local governments on a path to sustainable fiscal health before they are on the brink of a fiscal crisis.”

The Governor continued, “The vast majority of our cities and towns are financially healthy and will not be impacted. However, we have an obligation to all of our taxpayers to ensure that their tax dollars are being properly spent. With fiscal stable cities and towns, Connecticut will be better positioned to attract young people, families, and entrepreneurs, thereby growing and strengthening our economy.”

Governor Malloy will present his full state budget proposal on February 8 during an address to a joint convention of the Connecticut General Assembly. Earlier this week, he announced that it will include a package of substantial mandate relief for towns and cities that will help make local government leaner and more cost efficient.

For a fact sheet outlining the Governor’s municipal accountability proposal, click here

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