SUPPORT – RESTORE ACCOUNTABILITY TO ECONOMIC DEVELOPMENT – RESTORE ACCOUNTABILITY TO ECONOMIC DEVELOPMENT – A3047 Magnarelli

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ON ASSEMBLY LOCAL GOVERNMENTS AGENDA 2/14/17

RESTORE ACCOUNTABILITY TO ECONOMIC DEVELOPMENT

 

A3047 Magnarelli

The New York State AFL-CIO, representing 2.5 million union workers and their families, as well as our retirees and their families supports the above-referenced legislation.

This bill amends Section 34 of the General Municipal Law to clarify the authority of the State Comptroller to audit the finance and operations of Local Development Corporations (LDCs) and other similar entities established under the control of local governments and local government offshoots.

Due to years of criticism about the effectiveness of Industrial Development Agencies (IDAs) and their job creation efforts, their authority to fund and finance civic facility projects expired. As a result, many local IDAs and entities resorted to a back door way of publicly funding these projects, by establishing LDCs. The proliferation of LDCS across the state for this purpose has raised the level of their authority.

Clearly, LDCs have tremendous influence on public finances and policy, but through a loophole in the law, there is very little oversight and transparency in the decision making process and the effectiveness of their operations.   

This bill will ensure that LDCs are subject to the same independent scrutiny as all other public entities. It is needed in the interests of open government and transparency.

Therefore, this Federation urges this bill be passed.

For further information contact the Legislative Department at 518-436-8516.

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