Shine public light on authorities

(August 20, 2006) — It’s tempting — in the wake of revelations by the state comptroller that Monroe County Water Authority officials went to great and unethical lengths to enrich themselves four years ago — to recommend a drastic solution to New York’s problems with public authorities. After all, the Water Authority story is only the latest in a long and disheartening string of tales of abuse, a few of which ended with sweetheart deals being revoked or criminal charges being filed.

But, wish as we might, public authorities aren’t going away. Too many serve critical functions and they are too embedded in our state government. It’s time to make them work for New York state residents.

First, we must understand the problem, which lies in how authorities are structured. Some would have you believe just a few bad apples have been spoiling the bunch, but in fact the way authorities are set up invites corruption and abuse.

State government began creating authorities in the early part of the last century as a vehicle for financing big public projects through borrowing without going through the hoops of asking voters whether it was OK to take on debt. In theory, authorities could also take the politics out of the operation of major endeavors such as the state Thruway or the Erie Canal — a board runs things instead of bureaucrats who report to an elected politician.

Authorities do operate a step removed from government. Elected officials appoint the board members, who name the directors to run the place. Budgets and meetings are generally open to the public, but no one pays attention — at least until something goes wrong.

But, far from being removed from politics, authorities can be overrun by political aims because the people running them are often beholden to the same one person: the governor or county executive who appointed the board members. (Authorities vary in how they are set up under state law, but generally the governor, state Legislature, local officials, or some combination thereof appoints board members.)

That’s not to say that all public authorities function as a kind of undercover government taking orders from the elected leader(s). But some clearly do — as was demonstrated by a set of e-mails between Gov. George Pataki’s administration and the Thruway Authority exchanged after a scandal involving the canal system and released more than a year ago. Pataki’s aides were directing the authority’s response — and why shouldn’t they? Pataki appointed all three of the people then on the authority board.

There is no shortage of ideas about how to make authorities work. State Comptroller Alan Hevesi has imposed new oversight regulations, and a commission created by Pataki proposed sensible reforms.

These include disclosure requirements including a Web site for every authority, and new standards for board members requiring them to pledge a “fiduciary duty” to the authority. (That means board members would be legally bound to look out for the authority’s financial interests, not their own, not that of staff members, and not that of the elected official who appointed them.)

The governor (be it Pataki or his successor) and the Legislature should approve legislation making those changes happen.

But it will take more to make all authorities watch their p’s and q’s.

Those outside of government have to pay more attention. The press should cover authorities with same zeal that it reports on more traditional forms of government.

Scrutinize the budgets, attend the board meetings and evaluate the qualifications of the people in charge.

The news media has an important role to play in bringing public authorities out from the shadows.

A little more insight into the authorities. We all have to hold our politician accountable for the reckless spending of the authorities. They spend more than our elected with full authority of the elected yet, our elected do nothing about them. Time to get rid of them, plain and simple.