NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5757
SPONSOR: Stern TITLE OF BILL:
An act in relation to appointing a fiscal monitor for the metropolitan
transportation authority; and providing for the repeal of such
provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to improve the fiscal stability of the MTA
through accountability and review.
SUMMARY OF PROVISIONS:
Section 1: provides definitions.
Section 2: provides for the appointment of a fiscal monitor for the
Metropolitan Transportation Authority (MTA). The fiscal monitor shall be
appointed by the governor and serve on the MTA board as a non-voting
ex-officio member. The monitor's responsibilities shall include provid-
ing director oversight of the fiscal policies, practices, programs, and
decisions of the MTA.
Section 3: provides that the monitor shall be entitled to attend all
meeting of the MTA board including executive sessions and further clari-
fies that the MTA shall fully cooperate with the monitor is the
execution of their duties.
Section 4: provides for the monitor's duties which shall include a
review and analysis of the MTA's annual budget and financial plan,
including the operating and capital expenses and revenues and make
recommendations for improving financial management and sustainability.
The monitor shall also review and evaluate the MTA's internal control
and financial reporting practices and make recommendations for improving
transparency.
Section 5: sets the effective and expiration dates.
JUSTIFICATION:
The MTA (Metropolitan Transportation Authority) is an essential public
service provider responsible for operating the largest transit system in
the United States. However, the MTA has been facing consistent fiscal
problems for several years, which have negatively affected millions of
New Yorkers who rely on public transit every day.
To address these issues, it is necessary to both provide the MTA with
the necessary funding to address its fiscal problems and improve its
services, while at the same time appoint a fiscal monitor to ensure the
MTA's finances are managed properly and effectively. The MTA has a long
history of fiscal mismanagement, including large deficits, excessive
borrowing, and insufficient investment in infrastructure. This has led
to service cuts, fare hikes, and a deterioration of the transit system.
By implementing a fiscal monitor, the MTA can have an independent watch-
dog to oversee its finances and ensure they are being managed responsi-
bly. The monitor would have the authority to review the MTA's budget,
contracts, and spending practices, and to make recommendations for
improvements. This would help to prevent wasteful spending and ensure
resources are being allocated in the most efficient and effective way
possible.
Moreover, the fiscal monitor would also help to restore public trust in
the MTA's financial management. The MTA's consistent fiscal problems
have eroded public confidence in the agency and its ability to deliver
reliable and efficient transit services. By demonstrating a commitment
to transparent and accountable financial management, the MTA can begin
to rebuild that trust and restore its reputation as a reliable and
effective public agency.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
Minimal.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed five years after such effective date.
STATE OF NEW YORK
________________________________________________________________________
5757
2023-2024 Regular Sessions
IN ASSEMBLY
March 23, 2023
___________
Introduced by M. of A. STERN -- read once and referred to the Committee
on Corporations, Authorities and Commissions
AN ACT in relation to appointing a fiscal monitor for the metropolitan
transportation authority; and providing for the repeal of such
provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Definitions. For the purposes of this act, the following
2 terms shall have the following meanings:
3 1. "Monitor" shall mean the person appointed pursuant to section two
4 of this act.
5 2. "MTA" shall mean the New York State Metropolitan Transportation
6 Authority.
7 3. "Governor" shall mean the governor of the state of New York.
8 4. "Comptroller" shall mean the state comptroller.
9 § 2. Appointment. 1. The governor shall appoint a fiscal monitor,
10 subject to appropriation, to provide direct oversight of the fiscal
11 policies, practices, programs, and decisions of the MTA. The governor
12 shall provide the monitor with technical support and assistance for the
13 purposes of carrying out their duties under this act, if requested by
14 the monitor. The monitor shall serve at the pleasure of the governor.
15 2. The monitor shall be paid a fixed salary set by the governor and
16 shall be reimbursed for actual and necessary expenses incurred in the
17 performance of their duties including travel and supplies. The costs
18 associated with the implementation of this act shall be borne by the
19 state and shall be paid through a state appropriation.
20 3. The monitor shall be a non-voting ex-officio member of the MTA
21 board. The monitor shall be an individual who is not an employee of the
22 MTA or a relative of MTA board members at the time of their appointment.
23 The monitor shall have experience in public finance and, to the extent
24 practical, shall have experience in one or more of the following areas:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10055-01-3
A. 5757 2
1 (a) transportation finance;
2 (b) the operation of public authorities in New York;
3 (c) public transportation; or
4 (d) public policy.
5 § 3. Meetings. The monitor shall be entitled to attend all meetings of
6 the MTA board, including executive sessions; provided, however, that the
7 monitor shall not be considered for purposes of establishing a quorum of
8 the board. The MTA shall fully cooperate with any monitor appointed by
9 the governor, including but not limited to providing such monitor with
10 access to any necessary documents and records of the MTA including
11 access to electronic information systems, databases, and planning docu-
12 ments, consistent with all applicable state and federal statutes includ-
13 ing but not limited to the Freedom of Information Law pursuant to arti-
14 cle six of the public officers law and the Personal Privacy Protection
15 Law pursuant to article 6-A of the public officers law.
16 § 4. Duties of the fiscal monitor. The fiscal monitor shall have the
17 following duties, including but not limited to:
18 1. Review and analyze the MTA's annual budget and financial plan,
19 including operating and capital expenses and revenues, and make recom-
20 mendations for improving financial management and sustainability;
21 2. Review and evaluate the MTA's debt levels and debt management prac-
22 tices, and make recommendations for reducing debt and improving debt
23 management;
24 3. Review and assess the MTA's procurement practices, including
25 contracts for goods and services, and make recommendations for improving
26 efficiency and reducing costs;
27 4. Review and evaluate the MTA's internal controls and financial
28 reporting practices, and make recommendations for improving transparency
29 and accountability;
30 5. Monitor and report on the MTA's compliance with applicable laws,
31 regulations, and policies relating to financial management and report-
32 ing; and
33 6. Provide regular reports to the governor, the state legislature, and
34 the public on the MTA's financial performance and fiscal management.
35 § 5. This act shall take effect immediately and shall expire and be
36 deemed repealed five years after such effective date.
