HB 6296 Summary

• Establishes a fiscal review system to identify local governments experiencing fiscal or operational stress based on four financial indicators (cash solvency, budget solvency, long-term solvency, service solvency) and seven operational compliance factors.

• Creates three tiers of state intervention: qualified technical assistance for governments needing help, advanced qualified technical assistance for those failing to improve, and potential fiscal emergency status for those unable to resolve severe conditions.

• Requires the state treasurer to notify affected local governments of determinations and provide 45-day response periods before making final determinations; local governments must develop local action statements or financial improvement agreements to address identified issues.

• Establishes community engagement advisory committees (6 members appointed by governor, state legislators, and local governments) with broad powers to review budgets, contracts, labor agreements, and debt issuance, and to appoint community coordinators and create financial recovery agreements.

• Creates a local government technical assistance fund within the Department of Treasury to provide technical support, expertise, and resources to help local governments comply with the new system and improve their fiscal conditions.