Assembly Passes Sweeping Authority Reforms

Legislation strengthens Reform Act of 2005

November 19, 2009

Assemblymember Kevin Cahill (D-Ulster, Dutchess) announced the Assembly passed legislation to enact sweeping public authority reform, stepping up accountability and shedding new light on the more than 700 public authorities operating with startling autonomy throughout New York (A.40012). Public authorities are quasi-governmental agencies created for a public purpose, such as the Metropolitan Transit Authority, the Bridge Authority and the Thruway Authority that operate largely without government oversight and with limited public scrutiny.

“It has been a long time in coming,” said Assemblymember Cahill, “Their days of autonomous supervision, mismanagement and misappropriations are over. These reforms will establish significant criteria for oversight, transparency and accountability.”

In 2005, the Public Authority Accountability Act formed an independent Authority Budget Office (ABO) to provide fundamental oversight of authority transactions. Since then, numerous investigations, public hearings and Comptroller audits have uncovered fiscal discrepancies that defy the public’s trust.

Among the specific reforms in this 2009 Public Authority Reform Act is:

• increased oversight powers and responsibilities of the ABO;
• new and restrictive regulations to control authority debt;
• required pre-approvals by the State Comptroller of non-competitively bid contracts;
• whistle-blower protections for employees; and
• strengthening labor agreements for developments in which an authority has a proprietary interest.

“Between the MTA bailout, unjustified Thruway toll hikes and even the criminal activity uncovered at the Bridge Authority a few years back, the people of the Hudson Valley have had enough,” said Assemblymember Cahill. “These reforms are designed to restore accountability to these entities that we have entrusted with providing services that are so vital to our day to day lives.”

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