Proposed Bill Creates Alert System for Municipalities in Financial DistressAuthor: Jacob D. Caudill
February 18, 2016
Last week, a bill was introduced before the Illinois House of Representatives that would create an alert system to identify municipalities that are in financial distress.
If the Municipal Financial Distress Alert System Act were to pass, the State Comptroller would establish an index system to identify municipalities that are in or are approaching financial distress. The bill defines “financial distress” as a “financial state in which a municipality is in danger of being unable to provide basic services or pay bills as they come due, according to criteria established by the State Comptroller in consultation with the State Comptroller Local Government Advisory Board.”
Moreover, a municipality will be labeled as not in compliance in the index if fails to submit required annual audits or financial reports to the State Comptroller.
We will continue to provide updates on this bill as it progresses through the legislature.