Below is a memo of support for S2297 (Mayer) / A5910 (Zebrowski), which allows County Comptrollers to audit their local IDAs and LDCs. This bill has passed the Senate and was in the Senate’s one-house budget. We urge the Governor and Assembly to join the Senate and include the bill in the final budget.
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MEMO OF SUPPORT
S2297 (Mayer) / A5910 (Zebrowski)
Authorizes County Comptrollers to audit IDAs and LDCs
March 28, 2024
TITLE OF BILL
An act to amend the general municipal law, in relation to allowing for the examination of industrial development agencies and not-for-profit corporations by county comptrollers.
SUMMARY OF PROVISIONS
Section 1 adds a new §34-b to General Municipal Law. Under section 1, County Comptrollers are authorized to audit their local Industrial Development Agencies (IDAs). If a county does not have a County Comptroller, the county’s top elected official may designate the budget or finance director to conduct audits. Subsection 2 provides the same authorization for County Comptroller auditing of Local Development Corporations (LDCs). Section 2 provides that the bill takes effect 90 days after becoming law.
STATEMENT OF SUPPORT
Reinvent Albany supports this bill because it will improve oversight of the state’s IDAs and LDCs, which abate billions of dollars in NY local taxes annually – voiding revenue that should be going to schools, public safety, and parks.
Currently, County Comptrollers cannot audit IDAs and LDCs, despite their sizable impact on county and town revenue (only the State Comptroller and Authorities Budget Office are authorized). For example, even though the Genesee County IDA spent over $6 million on procurements in 2022, Genesee County itself cannot audit the contracts to see whether or not the County is getting a good bang for its buck. This is akin to a parent being forced to adopt a child, then having to share their credit card with the child without having a say over how the kid spends the money.
The bill has passed the Senate. We urge the Assembly to pass it as well.
Click here to view this memo as a PDF.