Paterson Signs Authorities Reform Law

By Karen DeWitt

Albany, New York – Governor David Paterson signed into law legislation to reform the state's public authorities, a measure he says will shed "sunlight" onto what has been a dark corner of government.

The state has over 700 public authorities, ranging from the MTA, and State Thruway Authority, with multi billion dollar budgets, to small, local authorities that provide housing or economic development funds. They have a combined debt of over $150 billion dollars.

Governor Paterson says the authorities, which have often been referred to as New York's shadow government, or phantom government, will now be more open to public scrutiny.

"We will shed a lot of sunlight on a process that has been dark for a very long time," Paterson said.

A number of Authorities have drawn public attention this decade for abuses, including the MTA's practice for a time of keeping two sets of books, and attempts by a subsidiary of the Thruway Authority to secretly sell off land along the historic Erie Canal to a favored developer for just $30,000.

The Assembly sponsor of the bill, Richard Brodsky, who has aggressively gone after authorities, sometimes subpoenaing their top officials to Assembly hearings, says New Yorkers will feel the difference in their every day lives.

"If you use the subways, if you use the roads, if you use schools or hospitals, you will be better treated in the short and long run," said Brodsky.

The measure creates an independent watchdog agency to police authorities, requires the State Comptroller to review contracts over $1 million dollars that are not competitively bid, and makes authority appointees more accountable to elected officials.

The bill was delayed for months while Paterson and the legislature worked out a provision to make it easier for authorities to sell land, which may benefit the cash-strapped state.

Assembly Speaker Sheldon Silver was at the event, and praised the governor for his leadership. But, for the second day in a row, the Leader of the State Senate, John Sampson, was a no -show at a bill signing ceremony.