1. The New York State Financial Restructuring Board for Local Governments by Kevin M. Bronner, Ph.D. University at Albany The Rockefeller Institute of Government Albany, New York November 18, 2015

2. New York State Financial Restructuring Board (FRB) Formed in 2013. $2.5 million budget; $80 million of grants. Division of the Budget. Office of the New York State Comptroller. New York State Attorney General. New York State Department of State. Additional members form the State Legislature and other areas.

3. New York State Local Government Property Tax Cap Governments that increase property taxes within the cap and implement shared services agreements amounting to 1% of the tax levy will receive property tax refunds from New York State in 2016. Shared services agreements required.

4. Office of the New York State Comptroller Fiscal Stress System Revised system in 2012 and efforts existing since the early 1980s. Develops lists of fiscally stressed localities using a system of financial and other metrics. Significant, Moderate, and Susceptible to Fiscal Stress categories. Separate from the fiscal stress determinations made by the Financial Restructuring Board.

5. FRB Fiscally Distressed Local Governments Higher tax rate than 75% of local governments. Lower fund balance than 75% of local governments. 368 of 1601 local governments (23%) placed on the fiscal stress list. Governments may formally apply for a fiscal review. FRB will produce a Comprehensive Review Report with corrective actions.

6. Comprehensive Review Reports Completed 1.City of Albany (Feb. 2015) 2.City of Rochester (Feb. 2015 ) 3.Village of Alfred (Feb. 2015 ) 4.City of Jamestown (Feb. 2015 ) 5.Village of Wilson (June 2014) 6.City of Fulton (June 2014) 7.Town of Fishkill (June 2014)

7. Governments Under Review in November 2015 1.City of Utica 2.City of Elmira 3.Village of Hoosick Falls 4.City of Lockport 5.Village of Oswego

8. Selected Recommendations for Discussion #1 City of Albany $3.9 million grant for the Harriman Campus redevelopment. City of Albany $1.1 million for an Information Technology Grant. City of Rochester operational efficiencies: fleet maintenance, energy efficiency, health insurance costs, workforce improvement. Village of Alfred dissolution, and Alfred University Police Department to improve public safety.

9. Selected Recommendations for Discussion #2 City of Jamestown and Chautauqua County police consolidation. City of Jamestown DPW maintenance software upgrade required. City of Jamestown coordination of purchasing function with the school district. City of Fulton grants to redevelop industrial parcels. Town of Fishkill to consolidate 12 water and sewer districts, and to consolidate the Police Department with the Village.

10. Some Generic Type Recommendations Multi year financial planning needed. Shared services agreements. Land bank programs for economic development. Dissolution of small governments like the Village of Wilson and the Village of Alfred.

11. Desired Outcomes How are the recommendations to be implemented and how to prove they are implemented? Can a set of best implemented recommendations be developed for use by other local governments?

12. Collective Bargaining Function The FRB can also be used for collective bargaining disputes.

13. Questions? Request copy of the paper at kbronner@albany.edu. kbronner@albany.edu