Journal News Letter to the Editor, July 14, 2012
Re: “NY, Local Agencies fail to file reports”, July 4, 2012
Despite the City of New Rochelle’s IDA and dormant LDC’S failure to file their required state budget and audit reports in March 2012, the City Council without hesitation appointed the members of their IDA to a new LDC. Is it any wonder that David Kidera, Executive Director, Authorities Budget Office, stated that “almost every New York resident and taxpayers are impacted by state and local IDA, LDC questioned authorities,” calling for a “comprehensive debate on the future of our public authorities.” He clearly questioned whether taxpayers can afford to support the system this State has. Will New York State create their own Fannie Mae and Freddie Mac crisis?
The Authorities Budget Office report warned about the growing dependence on Local Development Corporations because they can combine with IDA’s to finance projects the IDA cannot undertake such as non-profit bonding. Indeed that is what is happening In New Rochelle. The newly proposed Sound Shore project needs two types of tax-free bonding. New Rochelle’s IDA/LDC members are now empowered to issue both types of bonding.
What guarantees will the residents of New Rochelle have that excess debts will not weaken the local economy through higher costs for services rendered? Right now the IDA was unable to obtain reports from a number of their aid recipients. If the IDA members can’t even monitor the projects they have already approved, how can they approve more bonds through its IDA and LDC?
(Note: IDA is the Industrial Development Agency and the LDC is the Local Development Corporation)
