FOR IMMEDIATE RELEASE
New York, New York
April 12, 2004

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Partnership for New York City Issues Statement on Public Authority Reform

Partnership Supports Bipartisan Effort to Reform Governance of Public Authorities

Kathryn S. Wylde, president of the Partnership for New York City, today issued the following statement on public authority reform:

Public authorities play an essential role in economic development, infrastructure improvement and other areas of importance to the economy of the city and the state. Many projects that the business community considers top priorities - rebuilding the World Trade Center site, expansion of the Javits Convention Center, expanded transit lines, airport modernization - depend on authorities for their execution. Over the years, however, these authorities have proliferated without clear or consistent standards for debt limits, corporate governance or financial controls.

Comptroller Alan Hevesi has inventoried 643 state and local authorities that are responsible for more than 90% of outstanding state-supported debt. As a result, New York State has more debt outstanding than any other public entity in the country. There is a need to review authority functions and standardize controls, including limitations on issuance of debt.

The Partnership applauds the contributions of Comptroller Hevesi and Attorney General Elliot Spitzer to what we hope will be a thoughtful, bipartisan effort to streamline public authorities, to limit their ability to create debt and to improve their corporate governance. Along with recommendations being developed by Governor Pataki's Millstein Commission, the proposals put forward by Comptroller Hevesi provide a framework for a serious public discussion of ways to ensure that authorities are more efficient and accountable in the performance of their legislated functions. These proposals merit careful review with members of the boards and staffs of authorities and with industry, financial and legal experts. The Partnership is prepared to provide business input into this discussion.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.