...State Interventions Vary: State frameworks vary greatly on when, how and why to intervene to prevent or relieve instances of local fiscal distress. The report focuses on some recent and notable cases and comments on the degree of state control for the programs and practices. Hands-Off Approach: Some states, such as Alabama, take a hands-off approach and do not have intervention programs or practices. Limited Programs: Other states have formal programs or processes that have limited powers. California requires a mediation period prior to filing for Chapter 9 bankruptcy, which has not acted as a deterrent to filings or default. Nevada has discretionary powers, which it so far has not exercised to assist North Las Vegas. Ad Hoc Intervention: Although both New York and Connecticut lack formal fiscal distress prevention programs for municipalities, historical ad hoc responses to cases of local stress have been strong. Statutory Programs, Mixed Results: States such as Rhode Island, New Jersey,...
