ALBANY – Local governments across New York will be getting a little help from Albany in the future. On Tuesday, state leaders announced an agreement on legislation that will create a Financial Restructuring Board for Local Governments as well as reform the binding arbitration process. Both moves are designed to help eligible municipalities manage their finances and provide public services in a more cost-effective manner.
In addition, the legislation includes an alternative binding arbitration process that municipalities and unions could voluntarily opt for to resolve contract issues in an expedited process.
Under the legislation, the state will establish a new, 10-member Financial Restructuring Board that would be available year round to offer assistance to eligible localities. Any upstate locality deemed fiscally eligible would be able to request review by and assistance from the Board. The Board would be authorized to make recommendations to these municipalities on improving fiscal stability, management and the delivery of public services and to provide awards of up to $5 million per municipality through the Local Government Performance Efficiency Program. If a municipality agrees to the Board’s proposals, it would be contractually bound to fulfill those terms.
The Board would also serve as an alternative arbitration panel to the binding arbitration process for police, fire, or deputy sheriff unions, if the municipalities and unions agree. The Board would render an arbitration ruling within six months.
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