§ 45-12-22.3 - Year-end deficits.
SECTION 45-12-22.3
§ 45-12-22.3 Year-end deficits. – (a) If, at the end of any fiscal year, the chief financial official determines,based on available data, that it is likely the city or town's general fund orcombined general fund and unrestricted school special revenue fund will incur adeficit, the municipality must immediately develop a plan to eliminate thedeficit. The plan shall provide for the elimination of the accumulated year-enddeficit by annual appropriation, over no more than five (5) years, in equal ordiminishing amounts. The plan shall indicate the necessary governmentalapprovals and procedures required, and shall include a legal opinion bymunicipal counsel that the proposed action is permissible under federal, state,and local law.
(b) The plan to eliminate the year-end deficit shall besubmitted to the state auditor general for approval. The state auditor generalshall determine whether the plan reasonably insures elimination of theaccumulated deficit in accordance with the law in a fiscally responsiblemanner. The state auditor general may rely on the written representations madeby the municipality in the plan and will not be required to perform an audit.The judgment of the state auditor general in applying this standard shall beconclusive.
(c) If the state auditor general determines the plan isinsufficient and/or fails to adequately address the financial condition of themunicipality, or if a plan is not submitted, then in such event, the stateauditor general can petition the superior court for mandatory injunctive reliefseeking to compel the municipality to submit a plan as required hereunder. Thestate auditor general shall also have standing to pursue the appropriateremedies identified in § 45-12-22.7.