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Monitoring Authorities
Calling authorities “an immense shadow government,” State Comptroller Alan Hevesi proposed new regulations this week to require that these quasi-governmental entities be held to higher standards of openness and accountability. It was the latest in the Comptroller’s authorities reform efforts. Starting right after his election in 2002, the Comptroller began shining a light on the hundreds of authorities that operate within New York State. He had good reason to get interested. Since the late 1990s, there has been a seemingly unending series of controversies surrounding authorities’ activities. The Comptroller’s investigations had found problems in the budget process of the Metropolitan Transportation Authority, questionable contracting practices at Long Island Power Authority, problems at the New York Racing Association, and his office cancelled a contract that granted exclusive development rights along much of the New York State Canal System for a mere $30,000. In 2004, the Comptroller teamed up with Attorney General Spitzer to propose a broad package of reforms that would overhaul the ways these authorities operate. Key authority reforms were modeled on the corporate reforms advanced by Spitzer and others in response to the Enron and WorldCom corporate scandals. The plan called for the creation of a Commission to examine each of the state’s authorities to determine whether they should be re-organized or shut down altogether. The legislation:
The Comptroller was partially successful. During the 2005 legislative session, a reform bill passed that placed real limits on lobbying for government contracts, created a public authorities Inspector General and Budget Office. However, both of these officials are to be appointed by the Governor and it’s an open question if they will be sufficiently independent to be vigorous watchdogs. The legislation passed in June, but has still not been acted on by the Governor. Hevesi’s move last week can only help get the ball rolling on that bill. After all, the foot dragging means that the bill’s modest reforms are not in effect and that each month that passes the state’s authorities are continuing to operate without adequate oversight. Hevesi’s package last week would require:
The state’s top bean counter also argued that more oversight is needed since spending and debt service by authorities increased 10 percent over two years; totaling $31.3 billion, with an amassed debt of $125.3 billion. With so much spending by authorities, you’d think the measures that Hevesi is calling for would have been in place long ago. But it has not. Hevesi’s work is bolstering the reform effort in New York and could help lead to a more efficient state government. New Yorkers should all hope that he keeps it up. That’s all for now. I’ll be keeping an eye on the Capitol and will talk to you again next week.
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