4 Ways States Control Local Government Fiscal Irresponsibility. +1 Texas Bill Filing.

• 22 states review their cities to detect fiscal distress or assess fiscal conditions
• New York’s comptroller reviews city budgets for financial indicators such as:
  • operating deficits
  • year-end fund balances
  • environmental indicators that consider a municipality’s demographics, & property values 
• Nevada formalized a process that cities deemed “fiscal watch” have to appear before a state oversight committee
• Tennessee reviews every local budget for red flag issues like:
  • not enough funds for debt service
  • not complying with state law

SB 200 by Campbell requires the Comptroller to house local governmental entity fiscal and debt information and make it available to the public. The Eyes of Texas are Upon You.

Governing | States Increase Tabs They Keep on Municipalities’ Fiscal Health