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Saturday, April 16, 2011

State Comptroller report concluded that the use of local development corporations out of control Source: Office of the State Comptroller

State Comptroller report concluded that the use of local development corporations out of control
Source: Office of the State Comptroller

Citing an on-going pattern of abuse, State Comptroller Thomas P. DiNapoli today proposed a package of reform proposals that would limit local governments’ use of local development corporations (LDCs) and other private entities such as limited liability companies (LLCs).

The suggested reforms would also give the State Comptroller direct audit authority over LDCs, LLCs and similar entities controlled by local governments.

LDCs were originally intended to allow New York's counties, cities, towns, and villages to utilize these entities for economic development purposes and to promote employment opportunities.  Because many activities undertaken by LDCs are exempt from taxation, they are used to construct or rehabilitate industrial or manufacturing plants or to    encourage such businesses to relocate or remain in a particular region.

However, said the Comptroller, current law includes loopholes that allow LDCs to be used for purposes beyond the original intention.

DiNapoli cited several instances in which the use of LDCs and LLCs unnecessarily drove up taxpayer costs, including the use of an LLC by the city of Rochester to purchase a ferry that ended up costing taxpayers nearly $20 million.

The Comptroller’s report, Municipal Use of Local Development Corporations and Other Private Entities is posted on the Internet at:
http://www.osc.state.ny.us/localgov/pubs/research/ldcreport.pdf

Other items from the Comptroller's press office available on the Internet include:

DiNapoli: 101 School Districts Request Surplus Certifications to Use Funds to Make Up State Aid Cuts

State Comptroller Thomas P. DiNapoli’s office today certified the amounts of excess Employee Benefits Accrued Liability Reserve funds (EBALR) held by 95 school districts across the state that can be used by the districts in the 2011-12 school year to make up for $190.6 million in state aid cuts. DiNapoli’s review found the districts’ excess EBALR funds total $148.2 million.


DiNapoli's Office Releases School Audits

New York State Comptroller Thomas P. DiNapoli this week announced his office completed the following audits: the Auburn Enlarged City School District; the Malone Central School District; the Schalmont Central School District; and, the Waterloo Central School District.


DiNapoli's Office Releases Municipal Audits

New York State Comptroller Thomas P. DiNapoli this week announced his office completed the following audits: Village of Akron; the Town of Malta; the Village of Endicott; the Town of Trenton; the Smithtown Special Library District; the Village of Lancaster; the Village of Irvington; the Village of Centre Island; the Bellona Fire District; and an audit on Saving Money on Nursing Home Drug Purchases for various counties.


DiNapoli's Office Releases State Audits

New York State Comptroller Thomas P. DiNapoli this week announced his office completed the following audits: the Beacon City School District; Department of Health, Medicaid Payments for Diabetic Testing Supplies (Follow-Up) (2010-F-42) and, Department of Health, Inappropriate Payments for Vision Care Services Claimed by Dr. Horowitz (Follow-Up) (2010-F-47).

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Handbooks focusing on State and Municipal Public Personnel Law continue to be available for purchase via the links provided below:

The Discipline Book at http://thedisciplinebook.blogspot.com/

A Reasonable Penalty Under The Circumstances at http://nypplarchives.blogspot.com

The Disability Benefits E-book: at http://section207.blogspot.com/

Layoff, Preferred Lists at http://nylayoff.blogspot.com/

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