New York State public benefit corporations
Encyclopedia
New York State public benefit corporations and authorities operate like quasi-private corporations, with boards of directors appointed by elected officials. Public authorities share characteristics with government agencies, but they are exempt from many state and local regulations. Of particular importance, they can issue their own debt, allowing them to bypass limits on state debt contained in the New York State Constitution. This allows public authorities to make potentially risky capital and infrastructure investments without directly putting the credit of New York State or its municipalities on the line. As a result, public authorities have become widely used for financing public works, and they are now responsible for more than 90% of the state's debt. The growing influence of public authorities over state and local financing, coupled with their ability to avoid regulations applicable to government agencies, has led to calls for reform. Some reforms were passed in the Public Authorities Accountability Act of 2005.
. A shared tradition of English
common law
and Dutch
law may explain their origins.
The New York Court of Appeals
provided a thorough history of state laws regarding public authorities in the 1994 case Schulz v. State, 84 N.Y.2d 231. As the court explained, state debt limits were first enacted as a reaction to fiscal crises caused by the state's lending of its credit to "irresponsible" canal and railroad corporations in the early nineteenth century. The state was forced to assume these obligations, which amounted to more than three fifth's of the state's entire debt. In 1846, a referendum requirement was added to the state constitution, prohibiting the state from contracting long term debt without approval by the voters.
As early as 1851, the legislature began to search for ways to evade the constitutional debt limit in order to finance public works projects. Canal certificates, which would be repaid through canal revenues, and which by their terms were not state obligations, were nevertheless held to be unconstitutional in Newell v. People, 7 N.Y. 9 (1852). The court held that the state had a moral obligation to repay the debts if canal revenues proved insufficient, and thus the certificates were deemed "an evasion if not a direct violation of the constitution".
In 1921, the legislature chartered the first state public authority, the Port of New York Authority, as a new vehicle for financing public projects while insulating the state from long term debt obligations. In 1926, the Court of Appeals held in Williamsburgh Savings Bank v. State, 243 N.Y. 231, that the state could disclaim any moral obligation for public authority debts. However, amendments to the 1938 Constitution overruled this case and completely disclaimed the state's responsibility for any public authority debt.
The widespread use of public authorities in New York State was pioneered by Robert Moses
in the 1950s and 60s. Much of Moses' power base resulted from his tight control of the Triborough Bridge Authority, which allowed him to earmark revenues from tolls on the bridge for other projects in New York City and around the state. He also served as president of the Jones Beach Parkway Authority (1933–1963), president of the Bethpage State Park Authority (1933–1963), and chairman of the New York Power Authority
(1954–1962). Moses, through his control of these authorities, was able to build some of New York's most important public works projects, including the Cross-Bronx Expressway
, the Brooklyn-Queens Expressway, and various bridges and parkways. The public authority model allowed Moses to bypass many of the legal restrictions placed on state agencies, allowing him to expedite development but also allowing him to hide project financing, contracting and operational information from public scrutiny. Because of this, he has been criticized for wasteful spending, patronage, and refusing to consider public opposition to his projects.
The 1938 constitutional amendments attempted to limit the proliferation of public authorities by specifying that they could be created only by special act of the state legislature. By 1956, 53 public authorities had been created. In 1990, the Commission on Government Integrity concluded that "At present, so far as Commission staff has been able to determine, no one has even an approximate count of how many of these organizations exist, where they are, much less an accounting of what they do." By 2004, the Office of the State Comptroller had identified at least 640 state and local authorities. The current count stands at 1,098.
Some of the most well known major public benefit corporations in New York State include the Port Authority
of New York and New Jersey
(actually a bi-state authority created by interstate compact
), the Metropolitan Transportation Authority
, and the Empire State Development Corporation
. New York has hundreds of lesser-known public benefit corporations, including Industrial Development Agencies and local development corporations.
The Public Authorities Accountability Act of 2005 created the Authority Budget Office in order "to provide the governor and the legislator with conclusions and opinions concerning the performance of public authorities and to study, review and report on the operations, practices and finances of public authorities...." The ABO is intended to promote transparency and accountability and to improve authority governance.
While major public authorities can only be created by special legislation, many local development corporations have been created under the general Not-For-Profit Corporation Law. These LDCs function in much the same way as other public benefit corporations and public authorities, but do not need to be established by specific state legislation. Additionally, many public authorities have the power to create subsidiary authorities without additional legislative authorization. An example is the Empire State Development Corporation
, which decided in 2007 to dissolve 13 subsidiaries and merge 25 others into a single holding company. ESDC still encompasses many subsidiary organizations.
Financing public projects through public authorities is also attractive because their independent corporate structure theoretically makes them more flexible and efficient than state agencies. Many restrictions placed on state agencies do not apply to public authorities, including, for example, general public bidding requirements (some public bidding requirements do apply under the Public Authorities Law). See Plumbing, Heating, Piping & Air Conditioning Contr. Ass'n v. N.Y.S. Thruway Auth., 5 N.Y.2d 420 (1959). Most public authorities may also make contracts, and because of public authorities' corporate status, there is generally, no remedy against the state for the breach of such contracts. John Grace & Co. v. State University Constr. Fund, 44 N.Y.2d 84 (1978). Many public authorities, such as Industrial Development Agencies and the Empire State Development Corporation
, can also condemn
property.
The New York State Public Authorities Control Board
was created in 1976 to provide oversight for some of the state's most powerful authorities.http://www.osc.state.ny.us/pubauth/whatisboard.htm Sections 50 and 51 of the Public Authorities Law currently require 11 authorities to receive approval from the PACB prior to entering into contracts for project-related financing. There are five members on the PACB board, all of whom are appointed by the governor and serve year-long terms.http://www.budget.state.ny.us/agencyGuide/pacb/aboutPACB.html
Public authorities are currently responsible for more than 90% of the state's debt and 80% of the state's infrastructure, leading some to refer to them as the "shadow government."
Board members and employees of public authorities usually are not considered to be state employees, but are rather employees of the authority. Ciulla v. State, 77 N.Y.S.2d 545 (N.Y. Ct. Cl. 1948). However, public authority employees are covered by the ethics regulations included in section 74 of the Public Officers Law, and the Public Authorities Accountability Act of 2005 imposed additional ethics requirements on board members of some public authorities. Importantly, authority board members are now required to attend training sessions on ethics and governance issues.
metropolitan area.
Battery Park
is located at the bottom tip of Manhattan
.
(LMDC) was formed after the September 11 attacks to plan the reconstruction of Lower Manhattan. It was founded by Governor George Pataki and then-Mayor Rudolph Giuliani. The LMDC is a joint State-City corporation governed by a 16-member Board of Directors, half appointed by the Governor of New York
and half by the Mayor of New York City
.
The Development Corporation is a subsidiary of the Empire State Development Corporation
.
or LIPA ["lie-pah"], a municipal subdivision of the State of New York, was created under the Long Island Power Act of 1985 to acquire the Long Island Lighting Company (LILCO)'s assets and securities. A second Long Island Power Authority (LIPA), a wholly owned subsidiary of the first, acquired LILCO's transmission and distribution system in June 1998.
http://www.mta.info manages public transportation in the New York Metropolitan Area (this includes the New York Subway and public bus systems, as well as MTA Metro-North Railroad and the Long Island Rail Road
).
The MTA includes the following subsidiaries:
lease it got.
's http://www.roosevelt-island.ny.us/ responsibility is to develop Roosevelt Island
, a small strip of land in the East River
, part of the borough of Manhattan
.
A 2004 audit http://www.osc.state.ny.us/audits/allaudits/093005/04s56.htm of the fund found problems with its management.
http://www.dasny.org/ "provides financing and construction services to public and private universities, not-for-profit healthcare facilities and other institutions which serve the public good."
, also known as the Urban Development Corporation, maintains various programs and subsidiaries to encourage economic development in New York State.
.
is a subsidiary of the New York State Thruway Authority. It is responsible for the oversight, administration and maintenance of the New York State Canal System
http://www.canals.state.ny.us/, which consists of the Erie Canal
, Cayuga-Seneca Canal, Oswego Canal
and Champlain Canal
. It is also involved with the development and maintenance of the New York State Canalway Trail and with the general development and promotion of the Erie Canal Corridor as both a tourist attraction and a working waterway.
(CDTA) http://www.cdta.org/ is a public benefit organization which provides transportation services to the Capital District of New York State (Albany, Schenectady, and Rensselaer counties plus part of Saratoga). The function of CDTA is to operate public transportation as well as to operate the Amtrak
stations in the service area (Albany-Rennselaer, Schenectady, and Saratoga Springs).
It includes the following subsidies:
http://www.centro.org/ manages most public transportation in four Central New York counties - Onondaga, Oneida, Oswego and Cayuga. This includes bus service serving the cities of Syracuse
, Utica
, Rome
, Oswego
and Auburn
. The CNYRTA includes the following subsidiaries:
http://www.nysba.net/ owns and operates five bridges on the Hudson River
.
http://www.orda.org was designed to prepare the Lake Placid
area for the 1980 Winter Olympics
.
http://www.rgrta.org/ consists of numerous subsidiaries, including:
http://www.undc.org/ was designed to assist the United Nations
with its real estate and development needs.
New York City School Construction Authority (SCA)
The NYC School Construction Authority’s mission is to design and construct public schools for children throughout New York City.
. Some attempts at reform have been made. According to the editorial:
The Overcoat Protection Authority actually is not the correct name of the entity in question. The correct name of the entity the Times was speaking of is the Overcoat Development Corporation http://www.osc.state.ny.us/press/releases/feb05/debtact.htm, which was designed to lure a clothing manufacturer to New York from Indiana in the 1980s. (Berry, Dan. "The Cold Facts Of Officialdom, Albany-Style," The New York Times, March 20, 2004)
Lack of oversight is a major concern with New York's authorities. According to the Associated Press
:
In 2004, the New York State Comptroller's Office, headed at the time by Alan Hevesi
, became concerned about the debt public authorities were generating:
Recently, the state has been trying to phase out public benefit corporations and authorities it considers unnecessary.
Origins
Public benefit corporations in New York State have origins in mercantile capitalismMerchant capitalism
Merchant capitalism is a term used by economic historians to refer to the earliest phase in the development of capitalism as an economic and social system. Early forms of merchant capitalism were developed in the medieval Islamic world from the 9th century, and in medieval Europe from the 12th...
. A shared tradition of English
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
common law
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
and Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
law may explain their origins.
The New York Court of Appeals
New York Court of Appeals
The New York Court of Appeals is the highest court in the U.S. state of New York. The Court of Appeals consists of seven judges: the Chief Judge and six associate judges who are appointed by the Governor to 14-year terms...
provided a thorough history of state laws regarding public authorities in the 1994 case Schulz v. State, 84 N.Y.2d 231. As the court explained, state debt limits were first enacted as a reaction to fiscal crises caused by the state's lending of its credit to "irresponsible" canal and railroad corporations in the early nineteenth century. The state was forced to assume these obligations, which amounted to more than three fifth's of the state's entire debt. In 1846, a referendum requirement was added to the state constitution, prohibiting the state from contracting long term debt without approval by the voters.
As early as 1851, the legislature began to search for ways to evade the constitutional debt limit in order to finance public works projects. Canal certificates, which would be repaid through canal revenues, and which by their terms were not state obligations, were nevertheless held to be unconstitutional in Newell v. People, 7 N.Y. 9 (1852). The court held that the state had a moral obligation to repay the debts if canal revenues proved insufficient, and thus the certificates were deemed "an evasion if not a direct violation of the constitution".
In 1921, the legislature chartered the first state public authority, the Port of New York Authority, as a new vehicle for financing public projects while insulating the state from long term debt obligations. In 1926, the Court of Appeals held in Williamsburgh Savings Bank v. State, 243 N.Y. 231, that the state could disclaim any moral obligation for public authority debts. However, amendments to the 1938 Constitution overruled this case and completely disclaimed the state's responsibility for any public authority debt.
The widespread use of public authorities in New York State was pioneered by Robert Moses
Robert Moses
Robert Moses was the "master builder" of mid-20th century New York City, Long Island, Rockland County, and Westchester County, New York. As the shaper of a modern city, he is sometimes compared to Baron Haussmann of Second Empire Paris, and is one of the most polarizing figures in the history of...
in the 1950s and 60s. Much of Moses' power base resulted from his tight control of the Triborough Bridge Authority, which allowed him to earmark revenues from tolls on the bridge for other projects in New York City and around the state. He also served as president of the Jones Beach Parkway Authority (1933–1963), president of the Bethpage State Park Authority (1933–1963), and chairman of the New York Power Authority
New York Power Authority
The New York Power Authority , officially the Power Authority of the State of New York , is a New York State public benefit corporation and the largest state-owned power organization in the United States. NYPA provides some of the lowest-cost electricity in New York State, operating 17 generating...
(1954–1962). Moses, through his control of these authorities, was able to build some of New York's most important public works projects, including the Cross-Bronx Expressway
Cross-Bronx Expressway
The Cross Bronx Expressway is a major expressway in the New York City borough of the Bronx, conceived by Robert Moses and built between 1948 and 1972. It carries traffic on Interstate 95 through the city, and serves as a portion of Interstate 295 toward Long Island; a portion is also designated U.S...
, the Brooklyn-Queens Expressway, and various bridges and parkways. The public authority model allowed Moses to bypass many of the legal restrictions placed on state agencies, allowing him to expedite development but also allowing him to hide project financing, contracting and operational information from public scrutiny. Because of this, he has been criticized for wasteful spending, patronage, and refusing to consider public opposition to his projects.
The 1938 constitutional amendments attempted to limit the proliferation of public authorities by specifying that they could be created only by special act of the state legislature. By 1956, 53 public authorities had been created. In 1990, the Commission on Government Integrity concluded that "At present, so far as Commission staff has been able to determine, no one has even an approximate count of how many of these organizations exist, where they are, much less an accounting of what they do." By 2004, the Office of the State Comptroller had identified at least 640 state and local authorities. The current count stands at 1,098.
Some of the most well known major public benefit corporations in New York State include the Port Authority
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
of New York and New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
(actually a bi-state authority created by interstate compact
Interstate compact
An interstate compact is an agreement between two or more states of the United States of America. Article I, Section 10 of the United States Constitution provides that "no state shall enter into an agreement or compact with another state" without the consent of Congress...
), the Metropolitan Transportation Authority
Metropolitan Transportation Authority (New York)
The Metropolitan Transportation Authority of the State of New York is a public benefit corporation responsible for public transportation in the U.S...
, and the Empire State Development Corporation
Empire State Development Corporation
The Urban Development Corporation, doing business as Empire State Development Corporation is a public authority of the state of New York in the United States that has financed and operated several ambitious state projects by issuing tax exempt bonds....
. New York has hundreds of lesser-known public benefit corporations, including Industrial Development Agencies and local development corporations.
The Public Authorities Accountability Act of 2005 created the Authority Budget Office in order "to provide the governor and the legislator with conclusions and opinions concerning the performance of public authorities and to study, review and report on the operations, practices and finances of public authorities...." The ABO is intended to promote transparency and accountability and to improve authority governance.
Incorporation and Dissolution
The New York State Constitution, Art. X, sec. 5, provides that public benefit corporations may only be created by special act of the legislature. In City of Rye v. MTA, 24 N.Y.2d 627 (1969), the court of appeals explained that "The debates of the 1938 Convention indicate that the proliferation of public authorities after 1927 was the reason for the enactment of section 5 of article X.... Abbott Low Moffat, who supported this proposal, told the convention that its purpose was 'to require the Legislature to pass directly itself upon the establishment of each new authority, and to prevent the enactment of general laws pursuant to which a municipal corporation can itself create a corporation of the authority type'".While major public authorities can only be created by special legislation, many local development corporations have been created under the general Not-For-Profit Corporation Law. These LDCs function in much the same way as other public benefit corporations and public authorities, but do not need to be established by specific state legislation. Additionally, many public authorities have the power to create subsidiary authorities without additional legislative authorization. An example is the Empire State Development Corporation
Empire State Development Corporation
The Urban Development Corporation, doing business as Empire State Development Corporation is a public authority of the state of New York in the United States that has financed and operated several ambitious state projects by issuing tax exempt bonds....
, which decided in 2007 to dissolve 13 subsidiaries and merge 25 others into a single holding company. ESDC still encompasses many subsidiary organizations.
Public Authority Financing
The 1938 Constitution "expressly empowered public authorities to contract debt independently of the State". Because of this, the Court of Appeals has repeatedly affirmed that public authorities are distinct from the state and that the state carries no moral obligation to repay their debts. Although the Constitution prohibits the state from lending its credit to public authorities, it does allow the state to make gifts of money to authorities. As a practical result, this has resulted in some authorities receiving annual funding from the state on a consistent basis. Despite the fairly obvious moral obligation that the state carries to continue funding these authorities, which provide incredibly important public services such as road maintenance and transit operations, the Court of Appeals has continued to approve the fiction created by the Constitution's ban on moral obligation debt. As the Court of Appeals stated in Schulz v. State, 84 N.Y.2d 231 (1994), if "modern ingenuity, even gimmickry, have in fact stretched the words of the Constitution beyond the point of prudence, that plea for reform in State borrowing practices and policy is appropriately directed to the public arena".http://www.law.cornell.edu/nyctap/I94_0127.htm See also Wein v. State, 39 N.Y.2d 136 (1976); Wein v. Levitt, 42 N.Y.2d 300 (1977).Financing public projects through public authorities is also attractive because their independent corporate structure theoretically makes them more flexible and efficient than state agencies. Many restrictions placed on state agencies do not apply to public authorities, including, for example, general public bidding requirements (some public bidding requirements do apply under the Public Authorities Law). See Plumbing, Heating, Piping & Air Conditioning Contr. Ass'n v. N.Y.S. Thruway Auth., 5 N.Y.2d 420 (1959). Most public authorities may also make contracts, and because of public authorities' corporate status, there is generally, no remedy against the state for the breach of such contracts. John Grace & Co. v. State University Constr. Fund, 44 N.Y.2d 84 (1978). Many public authorities, such as Industrial Development Agencies and the Empire State Development Corporation
Empire State Development Corporation
The Urban Development Corporation, doing business as Empire State Development Corporation is a public authority of the state of New York in the United States that has financed and operated several ambitious state projects by issuing tax exempt bonds....
, can also condemn
Eminent domain
Eminent domain , compulsory purchase , resumption/compulsory acquisition , or expropriation is an action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent...
property.
The New York State Public Authorities Control Board
New York State Public Authorities Control Board
The New York State Public Authorities Control Board is composed of five members, appointed by the Governor, some upon the recommendation of members of the Legislature. New York's public services are heavily organized into public benefit corporations known frequently as authorities or development...
was created in 1976 to provide oversight for some of the state's most powerful authorities.http://www.osc.state.ny.us/pubauth/whatisboard.htm Sections 50 and 51 of the Public Authorities Law currently require 11 authorities to receive approval from the PACB prior to entering into contracts for project-related financing. There are five members on the PACB board, all of whom are appointed by the governor and serve year-long terms.http://www.budget.state.ny.us/agencyGuide/pacb/aboutPACB.html
Public authorities are currently responsible for more than 90% of the state's debt and 80% of the state's infrastructure, leading some to refer to them as the "shadow government."
Public Authority Governance
Public benefit corporations and public authorities are controlled by boards of directors made up of political appointees. Board members have fixed terms and are, at least in theory, considered to be more independent of political influence than elected politicians and appointed agency heads.Board members and employees of public authorities usually are not considered to be state employees, but are rather employees of the authority. Ciulla v. State, 77 N.Y.S.2d 545 (N.Y. Ct. Cl. 1948). However, public authority employees are covered by the ethics regulations included in section 74 of the Public Officers Law, and the Public Authorities Accountability Act of 2005 imposed additional ethics requirements on board members of some public authorities. Importantly, authority board members are now required to attend training sessions on ethics and governance issues.
Types of Public Authorities
The New York State Comptroller's Office lists four types of public benefit corporations and authorities:- Class A — these authorities and public benefit corporations have regional or statewide significance
- Class B — according to the Comptroller's office, these "[e]ntities affiliated [are] with a State agency, or entities created by the State that have limited jurisdiction but a majority of Board appointments made by the Governor or other State officials; entities that would not exist but for their relationship with the State."http://www.osc.state.ny.us/pubauth/byclass.htm
- Class C — these public authorities have local application.
- Class D — these authorities and public benefit corporations have interstate or international jurisdiction.
Class A Public Benefit Corporations in the New York City Metropolitan Area
Below are some of the authorities operating in and around the New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
metropolitan area.
Battery Park City Authority
Fully titled the Hugh L. Carey Battery Park City Authority http://www.batteryparkcity.org/, according to its official web site, the authority is:- a New York State public benefit corporationPublic benefit corporationA public-benefit corporation is a public corporation chartered by a state designed to perform some public benefit.A public authority is a type of public-benefit corporation that takes on a more bureaucratic role, such as the maintenance of public infrastructure, that often has broad powers to...
whose mission is to plan, create, co-ordinate and maintain a balanced community of commercial, residential, retail, and park space within its designated 92 acres (372,311.1 m²) site on the lower west side of Manhattan.
Battery Park
Battery Park
Battery Park is a 25-acre public park located at the Battery, the southern tip of Manhattan Island in New York City, facing New York Harbor. The Battery is named for artillery batteries that were positioned there in the city's early years in order to protect the settlement behind them...
is located at the bottom tip of Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
.
Lower Manhattan Development Corporation
The Lower Manhattan Development CorporationLower Manhattan Development Corporation
The Lower Manhattan Development Corporation was formed in July 2002, after the September 11 attacks to plan the reconstruction of Lower Manhattan and distribute nearly $10 billion in federal funds aimed at rebuilding downtown Manhattan....
(LMDC) was formed after the September 11 attacks to plan the reconstruction of Lower Manhattan. It was founded by Governor George Pataki and then-Mayor Rudolph Giuliani. The LMDC is a joint State-City corporation governed by a 16-member Board of Directors, half appointed by the Governor of New York
Governor of New York
The Governor of the State of New York is the chief executive of the State of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military and naval forces. The officeholder is afforded the courtesy title of His/Her...
and half by the Mayor of New York City
Mayor of New York City
The Mayor of the City of New York is head of the executive branch of New York City's government. The mayor's office administers all city services, public property, police and fire protection, most public agencies, and enforces all city and state laws within New York City.The budget overseen by the...
.
The Development Corporation is a subsidiary of the Empire State Development Corporation
Empire State Development Corporation
The Urban Development Corporation, doing business as Empire State Development Corporation is a public authority of the state of New York in the United States that has financed and operated several ambitious state projects by issuing tax exempt bonds....
.
Long Island Power Authority
The Long Island Power AuthorityLong Island Power Authority
The Long Island Power Authority or LIPA [ "lie-pah" ], a municipal subdivision of the State of New York, was created under the Long Island Power Act of 1985 to acquire the Long Island Lighting Company 's assets and securities...
or LIPA ["lie-pah"], a municipal subdivision of the State of New York, was created under the Long Island Power Act of 1985 to acquire the Long Island Lighting Company (LILCO)'s assets and securities. A second Long Island Power Authority (LIPA), a wholly owned subsidiary of the first, acquired LILCO's transmission and distribution system in June 1998.
Metropolitan Transportation Authority
The Metropolitan Transportation AuthorityMetropolitan Transportation Authority (New York)
The Metropolitan Transportation Authority of the State of New York is a public benefit corporation responsible for public transportation in the U.S...
http://www.mta.info manages public transportation in the New York Metropolitan Area (this includes the New York Subway and public bus systems, as well as MTA Metro-North Railroad and the Long Island Rail Road
Long Island Rail Road
The Long Island Rail Road or LIRR is a commuter rail system serving the length of Long Island, New York. It is the busiest commuter railroad in North America, serving about 81.5 million passengers each year. Established in 1834 and having operated continuously since then, it is the oldest US...
).
The MTA includes the following subsidiaries:
- Excess Loss Trust Fund
- First Mutual Transportation Assurance Company
- MTA Capital Construction Company
- MTA Capital Program Review Board
- Long Island Rail Road Company
- Metro-North Commuter Rail Road Company
- Metropolitan Suburban Bus Authority
- New York City Transit Authority & Manhattan & Bronx Surface Transit Operating Authority
- Staten Island Rapid Transit Operating Authority
- Tri-borough Bridge and Tunnel Authority — famously once a fiefdom of Robert MosesRobert MosesRobert Moses was the "master builder" of mid-20th century New York City, Long Island, Rockland County, and Westchester County, New York. As the shaper of a modern city, he is sometimes compared to Baron Haussmann of Second Empire Paris, and is one of the most polarizing figures in the history of...
, it had performed, as an independent entity, the collection of tolls and the maintenance of the Triborough BridgeTriborough BridgeThe Robert F. Kennedy ' Bridge, formerly known as the Triborough Bridge , is a complex of three separate bridges in New York City, United States...
. It today operates all intrastate toll bridges in New York City, and is now a subsidiary of the Metropolitan Transportation AuthorityMetropolitan Transportation Authority (New York)The Metropolitan Transportation Authority of the State of New York is a public benefit corporation responsible for public transportation in the U.S...
.
Overcoat Development Corporation
The Overcoat Development Corporation was founded in the 1980s to lure a men's outerwear company to New York City. It continues to exist today due to a favorable real estateReal estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
lease it got.
Roosevelt Island Operating Corporation
The Roosevelt Island Operating CorporationRoosevelt Island Operating Corporation
The Roosevelt Island Operating Corporation is a public-benefit corporation responsible for developing Roosevelt Island, a small strip of land in the East River, part of the borough of Manhattan....
's http://www.roosevelt-island.ny.us/ responsibility is to develop Roosevelt Island
Roosevelt Island
Roosevelt Island, known as Welfare Island from 1921 to 1973, and before that Blackwell's Island, is a narrow island in the East River of New York City. It lies between the island of Manhattan to its west and the borough of Queens to its east...
, a small strip of land in the East River
East River
The East River is a tidal strait in New York City. It connects Upper New York Bay on its south end to Long Island Sound on its north end. It separates Long Island from the island of Manhattan and the Bronx on the North American mainland...
, part of the borough of Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
.
Class A Public Benefit Corporations in Greater New York State
Some of the public benefit corporations outside of New York City's metropolitan area, or serving the entire state, are listed below.Agriculture and New York State Horse Breeding Development Fund
The Agriculture and New York State Horse Breeding Development Fund serves equine interests in New York State and provides education concerning certain agricultural development.A 2004 audit http://www.osc.state.ny.us/audits/allaudits/093005/04s56.htm of the fund found problems with its management.
Dormitory Authority of the State of New York
According to its web site, the Dormitory Authority of the State of New YorkDormitory Authority of the State of New York
The Dormitory Authority of the State of New York provides construction, financing, and allied services which serve the public good of New York State...
http://www.dasny.org/ "provides financing and construction services to public and private universities, not-for-profit healthcare facilities and other institutions which serve the public good."
Empire State Development Corporation
The Empire State Development CorporationEmpire State Development Corporation
The Urban Development Corporation, doing business as Empire State Development Corporation is a public authority of the state of New York in the United States that has financed and operated several ambitious state projects by issuing tax exempt bonds....
, also known as the Urban Development Corporation, maintains various programs and subsidiaries to encourage economic development in New York State.
New York State Thruway Authority
The New York State Thruway Authority http://www.thruway.state.ny.us/ maintains the major highway that cuts across New York State from New York City to BuffaloBuffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
.
New York State Canal Corporation
The New York State Canal CorporationNew York State Canal Corporation
The New York State Canal Corporation is a subsidiary of the New York State Thruway Authority. It is responsible for the oversight, administration and maintenance of the New York State Canal System, which consists of the Erie Canal, Cayuga–Seneca Canal, Oswego Canal and Champlain Canal...
is a subsidiary of the New York State Thruway Authority. It is responsible for the oversight, administration and maintenance of the New York State Canal System
New York State Canal System
The New York State Canal System is a successor to the Erie Canal and other canals within New York...
http://www.canals.state.ny.us/, which consists of the Erie Canal
Erie Canal
The Erie Canal is a waterway in New York that runs about from Albany, New York, on the Hudson River to Buffalo, New York, at Lake Erie, completing a navigable water route from the Atlantic Ocean to the Great Lakes. The canal contains 36 locks and encompasses a total elevation differential of...
, Cayuga-Seneca Canal, Oswego Canal
Oswego Canal
The Oswego Canal is a canal in the New York State Canal System located in New York, United States. Opened in 1828, it is 23.7 miles in length, and connects the Erie Canal at Three Rivers to Lake Ontario at Oswego...
and Champlain Canal
Champlain Canal
The Champlain Canal is a canal that connects the south end of Lake Champlain to the Hudson River in New York. It was simultaneously constructed with the Erie Canal and is now part of the New York State Canal System and the Lakes to Locks Passage....
. It is also involved with the development and maintenance of the New York State Canalway Trail and with the general development and promotion of the Erie Canal Corridor as both a tourist attraction and a working waterway.
New York State Environmental Facilities Corporation
The New York State Environmental Facilities Corporation (EFC) http://www.nysefc.org/ provides low-cost capital, grants, and expert technical assistance for environmental projects in New York State. The EFC has issued more than $13 billion in both tax-exempt and taxable revenue bonds. The EFC's 2009-2010 budget was in excess of $500 million. The statutory basis for substantially all EFC activity stems from Title 12 of Article 5 of the NYS Public Authorities Law (also called the "EFC Act") in 1970.Capital District Transportation Authority
The Capital District Transportation AuthorityCapital District Transportation Authority
The Capital District Transportation Authority is a public benefit organization that provides transportation in the Capital District of New York State...
(CDTA) http://www.cdta.org/ is a public benefit organization which provides transportation services to the Capital District of New York State (Albany, Schenectady, and Rensselaer counties plus part of Saratoga). The function of CDTA is to operate public transportation as well as to operate the Amtrak
Amtrak
The National Railroad Passenger Corporation, doing business as Amtrak , is a government-owned corporation that was organized on May 1, 1971, to provide intercity passenger train service in the United States. "Amtrak" is a portmanteau of the words "America" and "track". It is headquartered at Union...
stations in the service area (Albany-Rennselaer, Schenectady, and Saratoga Springs).
It includes the following subsidies:
- Access Transit Services
- Capital District Transit System
- Capital District Transit System, Number 1
- Capital District Transit System, Number 2
- CTDA Facilities, Inc.
Central New York Regional Transportation Authority
The Central New York Regional Transportation AuthorityCentral New York Regional Transportation Authority
The Central New York Regional Transportation Authority, known as Centro, is the operator of mass transit in Onondaga, Oswego, Cayuga, and Oneida counties in New York state. The CNYRTA was formed on August 1, 1970, along with similar agencies in Rochester, Albany, and Buffalo...
http://www.centro.org/ manages most public transportation in four Central New York counties - Onondaga, Oneida, Oswego and Cayuga. This includes bus service serving the cities of Syracuse
Syracuse, New York
Syracuse is a city in and the county seat of Onondaga County, New York, United States, the largest U.S. city with the name "Syracuse", and the fifth most populous city in the state. At the 2010 census, the city population was 145,170, and its metropolitan area had a population of 742,603...
, Utica
Utica, New York
Utica is a city in and the county seat of Oneida County, New York, United States. The population was 62,235 at the 2010 census, an increase of 2.6% from the 2000 census....
, Rome
Rome, New York
Rome is a city in Oneida County, New York, United States. It is located in north-central or "upstate" New York. The population was 44,797 at the 2010 census. It is in New York's 24th congressional district. In 1758, British forces began construction of Fort Stanwix at this strategic location, but...
, Oswego
Oswego, New York
Oswego is a city in Oswego County, New York, United States. The population was 18,142 at the 2010 census. Oswego is located on Lake Ontario in north-central New York and promotes itself as "The Port City of Central New York"...
and Auburn
Auburn, New York
Auburn is a city in Cayuga County, New York, United States of America. As of the 2010 census, the city had a population of 27,687...
. The CNYRTA includes the following subsidiaries:
- CNY Centro, Inc.
- Centro of Cayuga
- Centro of Oswego
- Centro of Oneida
- Call-A-Bus Paratransit Services (operates demand-responsive paratransit service in Onondaga County)
- Centro Parking (operates two state-owned parking garages and various surface lots in the city of Syracuse)
- ITC, Inc. (operates the William F. Walsh Regional Transportation Center in Syracuse)
New York State Bridge Authority
The New York State Bridge AuthorityNew York State Bridge Authority
The New York State Bridge Authority is a public benefit corporation in New York State, United States. The NYSBA was born out of the necessity for a bridge over the Hudson River to link the city of Hudson and the village of Catskill.-History:...
http://www.nysba.net/ owns and operates five bridges on the Hudson River
Hudson River
The Hudson is a river that flows from north to south through eastern New York. The highest official source is at Lake Tear of the Clouds, on the slopes of Mount Marcy in the Adirondack Mountains. The river itself officially begins in Henderson Lake in Newcomb, New York...
.
Olympic Regional Development Authority
The Olympic Regional Development AuthorityOlympic Regional Development Authority
The Olympic Regional Development Authority is a New York State public benefit corporations, created by the State of New York to manage the facilities used during the 1980 Olympic Winter Games at Lake Placid, New York...
http://www.orda.org was designed to prepare the Lake Placid
Lake Placid, New York
Lake Placid is a village in the Adirondack Mountains in Essex County, New York, United States. As of the 2000 census, the village had a population of 2,638....
area for the 1980 Winter Olympics
1980 Winter Olympics
The 1980 Winter Olympics, officially known as the XIII Olympic Winter Games, was a multi-sport event which was celebrated from 13 February through 24 February 1980 in Lake Placid, New York, United States of America. This was the second time the Upstate New York village hosted the Games, after 1932...
.
Power Authority of the State of New York
The Power Authority of the State of New York http://www.nypa.gov/ provides electricity throughout New York State.Rochester-Genesee Regional Transportation Authority
The Rochester-Genesee Regional Transportation AuthorityRochester-Genesee Regional Transportation Authority
The Rochester-Genesee Regional Transportation Authority is a public benefit organization which provides transportation services in the area in and around Rochester, New York. RGRTA was formed on August 1, 1970 by a state act of government which also formed three similar agencies in Syracuse,...
http://www.rgrta.org/ consists of numerous subsidiaries, including:
- Batavia Bus Service, Inc.
- Genesee Transportation Service Council Staff, Inc.
- Lift Line, Inc.
- Livingston Area Transportation Service, Inc.
- Orleans Area Transit System, Inc.
- Regional Transit System, Inc.
- Renaissance Square Corp.
- RGRTA Maritime Development Corporation
- Seneca Transport Systems, Inc.
- Wayne Area Transportation Service, Inc.
- Wyoming Transportation Service, Inc.
United Nations Development Corporation
The United Nations Development CorporationUnited Nations Development Corporation
The United Nations Development Corporation is a public benefit corporation in New York State that helps the United Nations with its real estate and development needs....
http://www.undc.org/ was designed to assist the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
with its real estate and development needs.
Class B Public Authorities
- Adirondack Park Institute http://www.adirondackparkinstitute.org/
- New York Racing AssociationNew York Racing AssociationThe New York Racing Association, Inc. is the not-for-profit corporation that operates the three largest thoroughbred horse-racing tracks in the state of New York. It runs Aqueduct Racetrack in South Ozone Park, Queens, Belmont Park in Elmont, Long Island , and Saratoga Race Course in Saratoga...
Class C Public Authorities
Class C public authorities have local jurisdiction and very few are of significance outside of economic development within towns, villages, and small cities.New York City School Construction Authority (SCA)
The NYC School Construction Authority’s mission is to design and construct public schools for children throughout New York City.
Class D Public Authorities
Class D public authorities have interstate and international jurisdiction. This is the complete list.- Buffalo and Fort Erie Public Bridge Authority http://www.peacebridge.com/ — an international authority that maintains the Peace BridgePeace BridgeThe Peace Bridge is an international bridge between Canada and the United States at the east end of Lake Erie at the source of the Niagara River, about upriver of Niagara Falls. It connects the City of Buffalo, New York, in the United States to the Town of Fort Erie, Ontario, in Canada...
link between BuffaloBuffalo, New YorkBuffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
, New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, and Fort ErieFort Erie, OntarioFort Erie is a town on the Niagara River in the Niagara Region, Ontario, Canada. It is located directly across the river from Buffalo, New York....
, OntarioOntarioOntario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
. - Niagara Falls Bridge CommissionNiagara Falls Bridge CommissionThe Niagara Falls Bridge Commission international public authority controlling three bridges between Ontario in Canada and New York in the United States. The Commission's bridges are the Lewiston-Queenston Bridge, Whirlpool Rapids Bridge and Rainbow Bridge. These bridges are in the Niagara Falls...
http://www.niagarafallsbridges.com/ — international public authority controlling various bridges in the Niagara FallsNiagara FallsThe Niagara Falls, located on the Niagara River draining Lake Erie into Lake Ontario, is the collective name for the Horseshoe Falls and the adjacent American Falls along with the comparatively small Bridal Veil Falls, which combined form the highest flow rate of any waterfalls in the world and has...
. The Board of Commissioners has eight members, four appointed by the Ontario Premier and four by the Governor of New York State. - Port Authority of New York and New JerseyPort Authority of New York and New JerseyThe Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
http://www.panynj.gov/ — bi-state agency regulates interstate commerce around the ports of New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and New JerseyNew JerseyNew Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
; owns bridge and tunnel connections between the two states south of the Tappan Zee BridgeTappan Zee BridgeThe Governor Malcolm Wilson Tappan Zee Bridge, usually referred to as Tappan Zee Bridge, is a cantilever bridge in New York over the Hudson River at one of its widest points; the Tappan Zee is named for an American Indian tribe from the area called "Tappan"; and zee being the Dutch word for "sea"....
; maintains New York CityNew York CityNew York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
's airports and Newark International Airport; built the World Trade CenterWorld Trade CenterThe original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
; includes the following subsidiaries:- New York and New Jersey Railroad Corporation (operates the Port Authority Trans-HudsonPort Authority Trans-HudsonPATH, derived from Port Authority Trans-Hudson, is a rapid transit railroad linking Manhattan, New York City with Newark, Harrison, Hoboken and Jersey City in metropolitan northern New Jersey...
commuter railroad system http://www.panynj.gov/path) - NewarkNewark, New JerseyNewark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
Legal and Communications Center Urban Renewal Corporation - Port Authority Trans-Hudson Corporation Transitcenter, Inc.
- WTCWorld Trade CenterThe original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
Retail LLC
- New York and New Jersey Railroad Corporation (operates the Port Authority Trans-Hudson
Controversy
Some of these corporations, particularly the "authorities," are criticized as being wasteful or overly secretive. There are literally hundreds, more than 640 as of 2004 according to a New York Times editorialEditorial
An opinion piece is an article, published in a newspaper or magazine, that mainly reflects the author's opinion about the subject. Opinion pieces are featured in many periodicals.-Editorials:...
. Some attempts at reform have been made. According to the editorial:
- [New York State Comptroller Alan] Hevesi has offered a comprehensive bill that incorporates some of the best ideas in other legislation circulating in Albany [to reform the authorities]. It would also create a commission to assess whether all 640 authorities set up over the last 80 years still need to exist. The Overcoat Protection Authority, for one, would seem to have had its day. http://www.nytimes.com/2004/02/28/opinion/28SAT4.html?ex=1132808400&en=6ccb632081463bb2&ei=5070
The Overcoat Protection Authority actually is not the correct name of the entity in question. The correct name of the entity the Times was speaking of is the Overcoat Development Corporation http://www.osc.state.ny.us/press/releases/feb05/debtact.htm, which was designed to lure a clothing manufacturer to New York from Indiana in the 1980s. (Berry, Dan. "The Cold Facts Of Officialdom, Albany-Style," The New York Times, March 20, 2004)
Lack of oversight is a major concern with New York's authorities. According to the Associated Press
Associated Press
The Associated Press is an American news agency. The AP is a cooperative owned by its contributing newspapers, radio and television stations in the United States, which both contribute stories to the AP and use material written by its staff journalists...
:
- Out of 643 state and local authorities in New York, only 11 need approval by the Public Authorities Control Board before selling bonds. The comptroller's office gets financial reports from just 53. (Johnson, Mark. "Hevesi proposes reforms for state authorities," Associated Press, February 24, 2004)
In 2004, the New York State Comptroller's Office, headed at the time by Alan Hevesi
Alan Hevesi
Alan G. Hevesi is a Democratic politician whoserved as a New York State Assemblyman from 1971 to 1993, as Comptroller of the City of New York from 1994 to 2001, and as State Comptroller for the State of New York from 2003 to 2006...
, became concerned about the debt public authorities were generating:
- Most public authorities have the ability to borrow funds by issuing debt. Total public authority debt reached more than $120.4 billion in 2004, and continues to grow. $37 billion of this debt is State-supported, accounting for more than 90 percent of total outstanding State-supported debt.http://www.osc.state.ny.us/pubauth/index.htm
Recently, the state has been trying to phase out public benefit corporations and authorities it considers unnecessary.
See also
- New York's political subdivisions are considered municipal corporations. This includes counties, towns, villages, and cities.
- Public benefit corporations
- List of New York City lists
External links
- New York's Public Authorities http://www.osc.state.ny.us/pubauth/index.htm
- List of Class A Public Authorities http://www.osc.state.ny.us/pubauth/classa.htm