Politics on the Hudson

Almost 40 percent of the state Environmental Protection Fund,  a total of $854 million, has been used to plug General Fund deficits since the fund was established in 1993, according to a report issued today by state Comptroller Thomas DiNapoli. Of that amount, $347 million has been replaced with revenues from bonds issued by public authorities in the state, known as back-door borrowing.

The state has put more than $2.2 billion into the fund in the past 17 years, but delays in spending the money have led to an accumulation of money in Environmental Protection Fund accounts, the report said. The money is set aside to offset the costs that farmers and municipalities face to meet environmental mandates; support key sectors of the state economy, including agriculture, tourism and forestry; help keep New Yorkers healthy; and protect the state’s water, air and wildlife habitat.

Audits of the state Department of Environmental Conservation, Office of Parks, Recreation and Historic Preservation, the Department of State, and Department of Agriculture and Markets and 10 municipal governments found there were weaknesses in agencies’ monitoring of progress on EPF-funded projects, DiNapoli said. Because of that, grant money sat idle, sometimes for several years, as qualified applicants were denied funding, auditors said. There were also delays in implementing procedures to award and disburse EPF funds.

“When EPF programs work, they work well. The fund has protected some of the most beautiful landscapes in the world. But if there are delays in spending fund dollars, the result is dirtier water, fewer parks and a poorer environment,” DiNapoli said in a statement.

“Sweeps and back-door borrowing were not part of the plan when the EPF was implemented. State agencies have to do a better job getting EPF money out the door and into the vital projects across New York,” he said.

The report makes the following recommendations for the state:
—Set timeframes to meet expedited grant award process milestones, and set up and maintain scored lists of qualified projects.
—Standardize contracts and establish clear guidelines for each step in the funding process
—Improve communication between agencies and applicants and award recipients.
—Set up a central clearinghouse for EPF information.
—Provide annual reports on the implementation of EPF programs.