The Legislature took a step this week towards delivering on State Treasurer Andy Dillon’s hopes for significant reform to the laws governing emergency financial managers (EFMs) appointed to financially troubled local government units when the House Local, Intergovernmental & Regional Affairs Committee passed House Bills 4214 – 4218 and 4246.
The package removes authority from local officials when an EFM is appointed to a financially stressed municipality or school district and allows the EFM to renegotiate contracts, enter into service consolidation agreements, sell assets, and set minimum staffing levels.
Passing on party-line votes, the measures were changed only twice by Democratic members of the House panel, who offered 27 amendments. A 6-year ban from seeking elected office for officials in a community under an EFM was removed, as well as the requirement that EFMs have 10 years of experience in local or state budget or fiscal matters.
Treasurer Dillon has asked the Legislature to pass the bills to the Governor’s desk by the end of February to ensure the Administration’s ability to deal with an expected significant increase in municipalities and school districts needing an EFM.