STATE OF NEW YORK
Authorities Budget Office
P O Box 2076
Albany, NY 12220‐0076
Local:518‐474‐1932Toll Free: 1‐800‐560‐1770
A Message from the Director of the Authorities Budget Office
July 1, 2012In accordance with Section 7 of Title 2 of Public Authorities Law, the Authorities Budget Office (ABO)is pleased to issue its annual report on the financial operations, practices, and structure of state and localpublic authorities.The number of public authorities subject to ABO oversight, under the accountability, disclosure andgovernance provisions of the Public Authorities Accountability Act and the 2009 Public Authorities ReformAct, now exceeds 550 public benefit and not‐for‐profit corporations, in addition to their 300 subsidiaries. Thisis a net increase of 63 covered authorities from just one year ago. This net increase is almost exclusivelyattributable to the addition of 61 local development corporations to the inventory.The information presented in this report vividly demonstrates the scope and influence of publicauthorities at both the state and local level. Virtually every New York State resident and taxpayer is impactedby the financial decisions and activities of these authorities.Last year, the 44 state authorities reported generating $21.8 billion in revenue from fees, rents, tollsand other service charges. State authorities ended 2011 with $141.9 billion in outstanding debt, of which36.7 percent was issued on behalf of state government. In 2011 alone, state authorities issued $14 billion innew debt. Concurrently, local authorities issued $14.5 billion in debt last year, and ended 2011 with $91.4billion in outstanding debt. Together, state and local authority spending exceeded $53 billion ‐‐ $9 billion of which was spent on professional services and other procurement contracts.Over the past two years, industrial development agency (IDA) projects resulted in $135 million inlocal property tax abatements, the potential loss of $377 million in local school tax revenue, and more than$100 million in foregone state sales taxes. As discussed in this report, most of these exemptions adverselyaffect taxing jurisdictions outside the IDA’s sponsoring municipality.In 2011, local development corporations (LDCs) awarded $182 million in grants, and had $114 millionin outstanding loans, initially capitalized with public funds. Only 17 percent of the value of these grants andloans were programmed for the purpose of creating new jobs.LDCs issued $1.2 billion in new debt in 2011 that was not subject to the Bond Issuance Chargeimposed on other authorities, including IDAs, by Section 2976 of Public Authorities Law. Had the lawpermitted this charge to be applied to LDC bond issuances, New York State would have realized at least $2million in 2011 and possibly as much as $9 million. Over the last two years, the state could have realized atleast $3.5 million and as much as $17 million in new revenue, depending on how those bond issuances werestructured.For the 2011 reporting period, 26 state authorities reported operating deficits – their revenuestreams were insufficient to cover the cost of operations. Twenty‐three state authorities reported operatingdeficits in both 2010 and 2011.