Associated Press
LONG BEACH, N.Y. — Long Beach, Long Island, which is facing a $48.3 million debt, has declared a fiscal emergency.
Newsday (http://bit.ly/yXN7Mu ) reports that the unanimous city council vote on Tuesday gives newly appointed City Manager Jack Schnirman the authority to rein in and veto spending items.
An accounting firm that audited the city’s finances said Long Beach overestimated revenue while underestimating expenses.
Moody’s Investors Services downgraded the city’s credit rating in December from A1 to bAA3. The city has until spring to come up with a corrective action plan for the budget.
The city has $48.3 million in general obligation debt and last year had to borrow $1 million to make payroll.
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Information from: Newsday, http://www.newsday.com
—Copyright 2012 Associated Press
