State Spending and Economic- Development Programs Lack Oversight

Ethics probes continue in the State capitol, this time with federal prosecutor Preet Bharara investigating the Buffalo Billion, the governor’s pet economic-development project, and Attorney General Eric Schneiderman investigating the SUNY Polytechnic Institute development project. Two of the governor’s close aides, Joe Percocco and Todd Howe, are involved in the scandals. Bharara is targeting what […]

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Ethics probes continue in the State capitol, this time with federal prosecutor Preet Bharara investigating the Buffalo Billion, the governor’s pet economic-development project, and Attorney General Eric Schneiderman investigating the SUNY Polytechnic Institute development project. Two of the governor’s close aides, Joe Percocco and Todd Howe, are involved in the scandals. Bharara is targeting what he believes is a bid-rigging scheme and instances of improper lobbying. Even Comptroller Thomas DiNapoli is raising questions about the governor’s big spending projects.

Despite serious questions surrounding the Buffalo Billion project, the Public Authorities Control Board (PACB), which is stacked with Gov. Cuomo’s appointees, still rubberstamped $485.5 million for the project. My Assembly Republican Conference and I suggested the vote be delayed while the Buffalo Billion project is under investigation. This is, after all, nearly half a billion dollars in taxpayer money.

Let’s call a spade a spade: the governor’s “economic development” programs are “member-item spending.” He finances these programs within the state budget as large pots of money, but retains control over the fine details of their distribution. I think there is merit in investing in our economic future, but the governor’s programs seem to be little more than ways for him and his team to reward friends.

In light of the Buffalo Billion and SUNY Polytechnic, reporters are now looking into some of the larger redevelopment projects, like the rebuild of LaGuardia Airport in Queens, which also shows evidence of contracts awarded to large Cuomo donors. This bid rigging has allowed the governor to amass a sizeable campaign account.

Then there is START-UP NY, a tax-shelter program created by the governor. The zoned tax shelters were meant to generate job growth, but according to a 2014 report, only 75 jobs were created. We are still unsure of how the program is working, as Empire State Development missed its April 1 report deadline this year.

Our state, under the governor’s leadership, has delved deeper into crony capitalism, where pay-to-play and other questionable actions have dominated economic-development projects and state spending. Neck-deep in the midst of these developing scandals, the governor is now scrambling for campaign-finance reforms, including closing the LLC loophole. I’ve been urging the state to adopt real ethics reforms, including campaign-finance reform and stripping pensions from corrupt public officials, but the governor remains silent on these proposals, as well as the larger issue of state spending with little to no accountability.

I sponsor legislation that requires better oversight and more disclosure on conflicts of interest in state spending. The Truth in Spending Bill (A.9525) requires discretionary and legislative earmark spending to be thoroughly and publicly reported, with all parties, including legislators and recipients, signing disclosure statements. Additionally, I sponsor the Public Officers Accountability Act, which addresses many campaign-finance-related issues.

These matters of pay-to-play are classic Albany corruption, which needs to end now. New Yorkers want and deserve much better from their government.

Marc W. Butler (R,C,I–Newport) is a New York State Assemblyman for the 118th District, which encompasses parts of Oneida, Herkimer, and St. Lawrence counties, as well as all of Hamilton and Fulton counties. Contact him at butlerm@assembly.state.ny.us

Brian Kolb: