The Legislature established development zones in 1986 to help struggling municipalities.

Then, in 1996, the state started to use a $1.76 billion environmental bond act to provide grants to help municipalities and community groups clean derelict properties.

Nor does it help municipalities with existing obligations.

"We are not going to look to help individual municipalities while others get hurt," Mr. McArdle said.

And $20 million more to help municipalities pay off debt on school construction.

Last year, the General Assembly approved $70 million to help municipalities and nonprofit corporations in building or renovating low-income housing.

As a result, the state government could be hard pressed to help cash-strapped municipalities.

"In addition, we have a $100,000 fund," Mr. O'Rourke said, "that we will use to help municipalities set up recycling programs."

In helping municipalities, he typically meets with the community members themselves in order to build tourism economies from the bottom up and to explain brand development.

The PAN also succeeded in shifting $800 million out of a bank bailout program and toward spending to help municipalities.