Derby and other speakers urge earlier state oversight for small, distressed towns (HB 7005)

Lawmakers heard testimony advocating that small, economically distressed municipalities automatically receive earlier state review when referred to the Municipal Financial Advisory Commission (MFAC), while municipal representatives urged care to avoid undoing prior statutory fixes.

Representative Kara Rochelle of Derby asked the committee to modify HB 7005 so that a town referred to MFAC that meets existing “economically distressed municipality” criteria would be placed in tier 1 review to ensure earlier oversight. “If a town exhibits the fiscal management behaviors that would qualify for review by MPAC, and if the town is economically distressed, the residents really can't afford the pain that will be caused by that mismanagement,” Rochelle said, urging a targeted approach for small towns.

City officials from Derby described their experience with state review. Brian Hall,…