Comptroller Tom DiNapoli today unveiled a system designed to provide an early warning to local governments under fiscal duress before a full budgetary crisis occurs.

“Local officials are struggling to cope with considerable economic challenges and structural budget imbalances and the situation may only get worse,” said DiNapoli. “That’s why my office is proposing an early warning system that will identify those headed down the path to fiscal crisis sooner and give local officials and the public sufficient time to discuss options for turning things around.”

The comptroller’s office plans to use data from more than 4,000 local governments across the state to calculate an fiscal stress score for municipal governments and school districts.

Among the indicators for possible financial troubles: cash-on-hand, a patern of operating under budget deficits, demographic and population trends and tax assessment growth.

Meanwhile, DiNapoli’s office also released a report that found cities across the state continue to struggle with balancing budgets and local economies struck in the doldrums.

Expenditures for cities have jumped $2.7 billion, while revenues have increased by only $2.1 billion, the report found.

NYC Report 2012

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