Tedisco: “Close the Back Door on State Borrowing”

As Legislature makes $9.5 billion interest payment on taxpayer credit card, Assemblyman calls for ban on borrowing without voter approval and truth in borrowing

March 20, 2013

With both houses of the New York State Legislature today taking up the first state budget bill (A.3002-A/S.2602-A) to spend $9.5 billion to pay state debt service, Assemblyman Jim Tedisco (R,C,I-Glenville) is calling for an end to back-door borrowing and the mortgaging of our state’s future.

Back-door borrowing refers to debt issued by public authorities or pubic benefit corporations without voter approval. New York State is ranked fifth among all states in debt per person, and in 2011, ranked as the second most indebted state behind California.

Taxpayers are on the hook for $57.6 billion in total state-related debt for the 2013-14 budget year. The state Comptroller estimates that state public authorities, which are overseen by unelected boards and not directly accountable to voters, are carrying a total of $243.7 billion in debt.

“It’s time to close the back door on borrowing because taxpayers are maxed out on state debt that is mortgaging our children’s future,” said Tedisco. “We can’t change the past, but we can ensure that, in the future, New York State continues to move away from the altered reality that there is always a revenue problem when in many instances New York has had a taxing, spending and borrowing priorities problem.”

Tedisco is sponsoring legislation to prohibit borrowing without voter approval (A.1517 of 2012 and in the process of being re-filed). He also is sponsoring a bill (A.5073) to require any ballot proposition that authorizes state debt to include information on both the principle, interest and payback period that would be incurred by taxpayers.

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