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Municipal Government Springfield returns to fiscal self-governance
The city of Springfield, in a deep financial crisis just five years ago, is ready to return to fiscal self-governance on July 1.
The city has been run by a state-appointed Finance Control Board since 2004, but the board’s term expires today and the city will regain full control over finance and personnel decisions.
In July 2004, with the city facing a $41 million deficit, layoffs, service cuts, and streetlights being shut off, the state Legislature appointed a five-member control board to restore fiscal stability to the state’s third-largest city. The state also granted a $52 million emergency loan so Springfield could avert bankruptcy.
The city’s fiscal situation is now much improved. Over the past five years, the city has accrued nearly $35 million in reserves and has set aside nearly $47 million to pay back the state loan.
“This is a historic time for the city,” Mayor Domenic Sarno said last week. “Today, I am pleased to report the city is in solid financial shape.”
The mayor said the city’s budget for fiscal 2010 “demonstrates the restraint, resourcefulness, and principal rules of government under which a city should operate.”
Sarno said the city “is not out of the woods yet,” especially with the current economic situation, but fiscal independence and financial stability have been restored.
Municipal Government Springfield returns to fiscal self-governance
Springfield returns to fiscal self-governance
The city of Springfield, in a deep financial crisis just five years ago, is ready to return to fiscal self-governance on July 1.
The city has been run by a state-appointed Finance Control Board since 2004, but the board’s term expires today and the city will regain full control over finance and personnel decisions.
In July 2004, with the city facing a $41 million deficit, layoffs, service cuts, and streetlights being shut off, the state Legislature appointed a five-member control board to restore fiscal stability to the state’s third-largest city. The state also granted a $52 million emergency loan so Springfield could avert bankruptcy.
The city’s fiscal situation is now much improved. Over the past five years, the city has accrued nearly $35 million in reserves and has set aside nearly $47 million to pay back the state loan.
“This is a historic time for the city,” Mayor Domenic Sarno said last week. “Today, I am pleased to report the city is in solid financial shape.”
The mayor said the city’s budget for fiscal 2010 “demonstrates the restraint, resourcefulness, and principal rules of government under which a city should operate.”
Sarno said the city “is not out of the woods yet,” especially with the current economic situation, but fiscal independence and financial stability have been restored.
Written by Katelyn O'Brien
