Public Authorities play a major role in delivering public services in the United States. They supplement more traditional government agencies by: providing a corporate organizational structure, legally separate from government, for the provision of public services financed by user fees and whose capital investments are self-financed through tax exempt bonds; and managing capital assets and making long term capital investment decisions with some isolation from political influence and the electoral cycle.
Public Authorities affect people in countless ways. They maintain bridges and highways, run mass transit systems, build and manage low income housing, financing higher education, and provide medical care. There are more than 35,000 state and local public authorities and special districts in the United States responsible for more than 65% of the states’ aggregate indebtedness. The Federal government and other nations have enthusiastically followed suit and adopted the public authority model.
Public Authorities are now the fastest growing component of the public sector, and with their growth, questions have been raised concerning their power to incur debt, the transparency of their operations, and their political autonomy. Much has been written, many reforms proposed, and volumes of data has been generated and analyzed. The Public Authority Information Clearinghouse is intended to assemble and categorize, on an on-going basis, the available information, and in certain instances, provide commentary.
New and Notable
Check out the new Public Authorities Blog, which is part of the Public Authorities Project of the Government Law Center at Albany Law School. The goal of the blog is to provide up-to-date news and analysis concerning the laws, practices, and proposed reforms relating to state and local public authorities in New York,
Video: Public Authorities and Municipalities: The Implications of the Dodd-Frank Act on Authorities’ Fiscal Operations (4/15/11)
On April 15, 2011, the Government Law Center assembled a panel of experts, including a representative of the Securities and Exchange Commission, to discuss the implications of Dodd-Frank, and current budget challenges, on municipal securities issuers. The program discussed the new registration requirement for municipal advisors (and related rule-making activities) and disclosure requirements associated with the current fiscal crisis, including those involving post-employment benefit obligations.
- Martha Mahan Haines, Chief, Office of Municipal Securities, and Assistant Director, Division of Trading and Markets, Securities and Exchange Commission (SEC)
- Malcolm Northum, Director, Fixed Income Securities Group, Sales Practice Policy Division, Financial Industry Regulatory Authority (FINRA)
- Karen De Brul, Associate General Counsel, Municipal Securities Rulemaking Board
- Kenneth Roberts, Partner, Hawkins Delafield & Wood LLP
- Lauren Trialonas, Public Finance Department, Squire, Sanders & Dempsey (US) LLP
Associate Dean Patricia Salkin and Professor Christine Chung gave remarks prior to the panel, which was moderated by Scott Fein, a partner at Whiteman Osterman & Hanna and chair of the GLC’s Public Authorities Project.
To watch the video, click here.
The Fall, 2009 issue of the NYSBA Government Law and Policy Journal was devoted to the topic of public authority reform, and was guest edited by Public Authorities Project director Scott Fein.
Download the entire journal here, or select from the individual articles below.
Lynn Wilson and Clayton Eichelberger, New York State Public Authority Reform: Where Have We Come From and Where We Need to Go
Charles Brecher, What Happened to Authority Reform?
Judson Vickers, Interpreting the Public Authorities Accountability Act of 2005
George Weissman, History of Conduit Financing
Dennis C. Smith, Are New York State’s Public Authorities Performing Well? Who Knows?
Kenneth W. Bond, Conduit Financing: A Primer and Look Around the Corner