While the debate over the state budget was rightfully grabbing headlines over the past few weeks, other pieces of important legislation were also discussed and voted on in Albany. Among those receiving approval was senate bill 1537B, authority reform. This important reform measure, which has been signed into law by the governor, shines a light on the sometimes murky actions of the more than 800 public authorities operating in New York state. 

Public authorities are quasi-governmental agencies created for a public purpose. Authorities  at their best have the ability to finance public improvement projects without increasing taxes. Literally billions of dollars are expended each year by the scores of authorities throughout New York. Unfortunately, a number of misconduct cases concerning authorities earlier in the decade revealed the need for real accountability measures. Ongoing legislative hearings into the events at the Thruway Authority, the Canal Corporation and the Metropolitan Transportation Authority (MTA) have shown the need for significant improvements in transparency and responsiveness.

In 2005 the Public Authority Accountability Act was passed making authorities more accountable and transparent. The measure though was just a first step, and in 2006 the Commission on Public Authority Reform offered recommendations for even greater oversight. Many of the commission’s recommendations were incorporated into the new authority reform law.

Provisions in the new law include:    

• The creation of the Office of Authorities Oversight with the staff and budget to financially review public authorities. The OAO will be independent with a director who will serve a four year fixed term;

• Amending the 2005 law to toughen rules governing the sale of property by public authorities;

• Adding to and strengthening provisions governing public authorities’ boards of directors. The new law will strengthen provisions of the 2005 law with regard to board accountability and reform;

• Providing the state comptroller with the power to approve certain public authority contracts over $1 million;