The most important aspect of the Indiana Distressed Unit Appeals Board ruling on Gary's finances is that someone will be watching over the city's shoulder as it spends money, not waiting for audits at the end of the year.

In exchange for getting a reprieve on tax breaks for property owners, Gary is required to hire an outside consulting firm to oversee cost cutting, including employee layoffs. This is the first time the state has taken this unusual step.

Ryan Kitchell, chairman of the appeals board and director of the Indiana Office of Management and Budget, said Wednesday that hiring an outside firm to monitor the city's finances was a key aspect of the relief plan.

"We have to sign off on the contract and who is selected," Kitchell said. "We're going to have somebody up there looking at every time they spend money -- all of the line items in a great level of detail."

That scrutiny over Gary's budget is exactly what the city needs.

The appeals board gave the city -- meaning the civil city, Gary Public Transportation Corp., Gary/Chicago International Airport, the sanitary district and the stormwater district -- a $23.5 million reprieve from the new property tax caps, but at least $11.25 million will need to be cut from the city's budget by the end of the year.

Mayor Rudy Clay has promised that no police officers or firefighters will lose their jobs as a result of the ruling. Other cuts will need to be dramatic.

The city needs to jettison the health department, forcing its county counterpart to take up the slack.

It must take other steps as well to provide the level of government services appropriate for a smaller population than when the city's bureaucracy expanded.

Gary has been in financial trouble for decades, long before Clay became mayor. It's good to see the state finally step in to require the outside assistance and close scrutiny needed to get the city headed in the right direction.