The state comptroller's office released a new report on the financial health of municipalities, and it paints a bleak picture of Long Island.

It says 12 municipalities are under "significant fiscal stress." Five of those are on Long Island.

The city of Long Beach came in as the third most stressed in the state, followed by Suffolk County at No. 4 and Nassau County at No. 6. The village of Islandia came in at No. 8 and the Town of Oyster Bay came in at No. 9.

The report considered cash balance, debt and source of revenue.

Economist Marty Cantor says local governments need to either spend less or get a steady and reliable stream of income to meet their expenses.

"Everybody's loathe to raise property taxes, but they'll fee us to death with mortgage fees, burglar alarm fees, red light cameras and all this other nonsense," said Cantor. "If they just did the right thing fiscally, which is what the state comptroller is telling them to do, then we'd have enough recurring revenues to balance our budgets without borrowing."

Two villages in Nassau, Valley Stream and Island Park, were on a list of municipalities facing what was called "moderate fiscal stress."