EAST ST. LOUIS • A state oversight authority has approved a measure that allows it to intercept state funds for East St. Louis.

The authority warned the city of the possible action last month, saying the city needed to balance its budget. In response, the city laid off about a third of its police force but rehired the officers in return for an agreement to accept 20 percent pay reductions that would be reimbursed next year.

City leaders were expected to address the authority's move on Wednesday night at a special City Council meeting, but the item was inexplicably stricken from the agenda at the last minute.

East St. Louis Mayor Alvin Parks refused to discuss the specifics but said the city is working to avoid the intercept from actually taking place. So far, he said no money has been intercepted.

The move made Friday by the East St. Louis Financial Advisory Authority means the oversight panel can intercept city money that comes from state sources, including gambling fees from the Casino Queen, and deposit it in an account that the authority controls. The authority then could take over responsibility for paying some of the city's bills.

The authority was created by state law to be a financial watchdog in East St. Louis.

The authority evaluates the city's annual operating budget and reviews and approves payments, contracts and payroll, but does not oversee day-to-day operations.

Patrice Rencher, executive director of the East St. Louis Financial Advisory Authority, said on Friday that the city went outside the authority and improperly made loans with tax increment financing money.