Local fiscal distress; determination by Auditor of Public Accounts, state intervention

Sets out a procedure for determining when localities are in fiscal distress, as defined in the bill, and when state intervention may be necessary. The bill requires the Auditor of Public Accounts to develop criteria for a preliminary determination that a locality may be in fiscal distress. The bill also requires the Director of the Department of Planning and Budget to identify any amounts remaining unexpended from general fund appropriations in the state budget as of June 30 of each year, which constitute state aid to local governments. From such unexpended balances, the Governor may reappropriate up to $750,000 from amounts that would otherwise revert to the balance of the general fund and transfer such amounts as necessary to establish a component of fund balance that may be used for the purpose of providing state assistance, oversight, and intervention actions for localities deemed to be fiscally distressed and in need of state assistance, oversight, or intervention to address such distress. The bill further gives the Commission on Local Government oversight authority any intervention team that provides state assistance, oversight, or intervention. If a report from the Commission to the Governor concludes that a locality located in Planning District 19 (Crater Planning District Commission) is either unwilling or unable to comply with the conditions necessary to address its fiscal distress, the Commission on Local Government shall appoint an emergency fiscal manager who will implement a remediation plan to restore sustainable fiscal health to such locality. The Commission shall give timely notice of any proposed actions to be taken and an opportunity for public input on the remediation plan prior to such action. The remediation plan shall establish benchmarks that will allow such locality to exit the remediation plan upon meeting such benchmarks.

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