Total outstanding debt from New York’s state and local authorities rose by almost 19% to $151.1 billion from 2008 through 2012, according to a report released Monday.
From 2008 to 2012 the uses of the authorities’ debt has shifted, the New York State Authorities Budget Office report showed. The percent of the authorities’ debt issued for their own public purposes declined to 27% from 41%. The percent of the debt issued at the direction of state government for purposes unrelated to the authorities’ missions rose to 39% from 35%. The percent of the debt issued on behalf of third parties rose to 34% from 24%.
Total industrial development agency debt has declined to $16.4 billion in 2012 from $21.7 billion in 2008, possibly because the agencies have been prohibited since 2008 from issuing debt for civic facilities, the budget office said.
Non-profit local agencies have increasingly been used to finance these projects. There has been a substantial increase in debt outstanding for these authorities.
The report cited 155 of 574 authorities as noncompliant with state law’s public accountability, transparency and disclosure requirements. Should they remain delinquent, the office could use enforcement actions against them. In 2012 the office censured the boards of directors of six authorities for chronic failure to meet their corporate governance responsibilities.