Public authorities rack up $250 billion in debt

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Debt at the state’s shadowy public authorities reached $243 billion and is racked up with little public input, a report from Comptroller Thomas DiNapoli found.

The state has a remarkable 1,169 authorities that oversee public services, such as the state’s transit system. Started in the 1920s, they operate outside of state government, accumulate debt without voter approval and their revenues are used to plug holes in the state’s operating budget, DiNapoli said.

Moreover, the authorities employ 153,502 people, with 12 percent earning more than $100,000 a year compared to 8.3 percent of the state workforce.

“Public authorities are an increasingly influential sphere of government, but they still operate in the shadows with too little accountability to the public,” DiNapoli said in a statement.

The state established an Authorities Budget Office in 2009 to oversee the authorities and curb their debt, and Gov. Andrew Cuomo has sought to dissolve inactive or inefficient ones.

But DiNapoli’s report showed that they still largely operate outside of the public view, and their money is often shifted to pay for state operating expenses.

In the 2011-12 fiscal year, more than $500 million was shifted from authorities to the state budget. In the 2013-14 budget proposed by Cuomo, authorities would be used to expand debt by creating a new bond financing program backed by sales-tax revenues, DiNapoli said.

Public Authorities Btn 2013 by jspector

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  1. Jackson Davies on

    If we did not have Tom DiNapoli as our Comptroller we would not know about any of these frauds and secret deals between the politicians up in alabny together with billionaires in private industry.

    “Business always knows best” is NOT always true no matter how loud the right wing drones say it.