Stage 5: Fiscal First Aid
When afflicted with financial distress, you first need to stabilize the situation. Fiscal first aid techniques can be used to stop the bleeding and provide immediate relief. Cases of more severe distress may not be completely resolved by fiscal first aid, but fiscal first aid can provide a short-term respite and time to develop more permanent treatments. In less severe cases of financial distress, fiscal first aid alone may be sufficient. This section of the GFOA's financial recovery website presents fiscal first aid techniques in four categories:
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Primary Treatments are the first line of defense. In many cases, these treatments provide immediate help and improve the long-term prognosis.
Treatments to Use with Caution may be called for if the primary techniques are not sufficient. However, these treatments could potentially worsen financial condition if used improperly.
Treatments to Use with Extreme Caution might help the near term financial situation, but could likely work against financial sustainability.
Treatments Not Advised are ones that can get you in trouble.