Village of Newcomerstown Placed in Fiscal Emergency
Columbus – Substantial deficit balances at the Village of Newcomerstown (Tuscarawas County) prompted Auditor of State Dave Yost today to place the village in a state of fiscal emergency.
“The Village of Newcomerstown will undoubtedly have some difficult decisions to make in the upcoming weeks and months,” Auditor Yost said. “My office will be available to assist officials in bringing financial stability back to the village.”
At the request of Newcomerstown Mayor James A. Friel, a fiscal analysis was performed by the Auditor of State’s office to determine if the financial condition of the village justifies the declaration of a fiscal emergency. The analysis determined that a fiscal emergency condition exists due to the village’s total unprovided portion of aggregate deficit funds as of December 31, 2011, and April 30, 2012, which are $136,548 and $155,149, respectively.
A fiscal emergency declaration will result in the formation of a Financial Planning and Supervision Commission. The commission includes the Treasurer of State (or office designee), the Director of the Office of Budget and Management (or an office designee), the mayor, the presiding officer of the village’s legislative authority, as well as three appointed members chosen out of five names provided to the Governor by the village.
The commission is responsible for approving a financial recovery plan that details solutions for eliminating the fiscal emergency condition, ensures a balanced budget, avoids future deficits and markets long-term obligations. The plan must be submitted to the commission within 120 days of its first meeting.
A full copy of this fiscal emergency declaration may be accessed online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,600 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.