What to do with Newburgh's finances

Newburgh, NY – It's been nearly one year since a fiscal recovery plan was implemented in the city of Newburgh, New York. Among other actions, the plan approved by the state legislature and former Governor David Paterson gives financial oversight powers to the State Comptroller's Office. WAMC's Hudson Valley Bureau Chief Greg Fry has an update on how that plan has worked, and a call by some for more intervention from the state...

The interest in reversing a disastrous financial situation in Newburgh is clear. That's evident by the voices raised at city hall meetings, by marches to city hall, and the messages sent to Albany directly, and through the city's representatives. Added to that list is a new video message to Albany, unveiled by Change Newburgh, a political action committee. In the video, Newburgh residents, who are continuing their efforts to make some sort of impact on the city, tell story after story about why they came to the city, and what they love about it.

Merridith Ingram is involved in the Change Newburgh effort. She says it stems from a core group of people who have moved to the city, and believe there is an immense about of potential. She talks about the need for unification - to bring in all those interested in improving the city, no matter their race or income. She says they have homeowners and renters, along with middle-class residents, and those receiving assistance.

The latest idea that's been floated by interested residents is the concept of a temporary receivership. Ingram's husband, Rob, says there's a good understanding outside of the city hall of the city's financial woes. He says the city has under performed from a revenue perspective, and has overspent in every budget. Ingram says that isn't a recipe for a solid financial foundation.

This year's city budget increased property taxes by a staggering 71 percent, in an effort to stay afloat. As a reference point, property taxes could be capped to a two percent increase, under proposals being negotiated in Albany.

Speaking of Albany, last July, lawmakers passed the Newburgh Fiscal Recovery Act, in an effort to help the city eliminate a deficit exceeding ten million dollars. Mayor Nicholas Valentine says the city is seeing the benefits of that assistance. He says they've received a reprieve by extending their debt over a longer period of time. Valentine adds that there is also a guarantee from the Comptroller's office regarding the selling of bonds.

Valentine says city officials explored the idea of more state control last year. He says they wanted a control board, similar to action taken in Buffalo. He said the state's answer was no, and the result instead was the Fiscal Recovery Act. He also says the monitoring by the Comptroller's office has been good as well. Come the end of the year, the city's financial problems won't be Valentine's main concern. He won't run for re-election. Two candidates, Councilwoman Christine Bello, and city resident Judy Kennedy, have come forward to formally announce their runs for the Mayor's office. Rob Ingram says the problems are beyond who is in charge inside city hall.

Ingram says there are structural issues outside of Newburgh, which would require somebody outside of the city to fix. He suggests the state, who could force action on a county and state level.

Change Newburgh