ALBANY, N.Y. - The billions of dollars spent on Industrial Development Authorities in New York are not creating "measurable benefits," according to a new report.
The latest Authorities Budget Office report found significant problems at many of the 578 public authorities now operating in New York. These public authorities are often created to work outside the state budget process to spur economic development. While the number of authorities has grown by 200 percent in less than 20 years, Alex Camarda, senior policy consultant for Reinvent Albany, said they simply are not doing what they were supposed to do.
"While most authorities exist for the purposes of economic development, they have no direct impact on private-sector job growth, whatsoever," he said. "We think that's a real indictment of the very purpose of many of these authorities."
The report found the three counties with the highest number of projects approved by local authorities showed growth in private-sector employment, but at levels below the state average.
While authorities get money from the state, they also can issue bonds and currently have a combined total debt of almost $270 billion. Camarda called that a real problem for transparency and accountability.
"It's not honestly portraying the debt and obligations that the state owes," he said, "which is a real burden on taxpayers, particularly over time as the amount of debt accumulates."
The report also said almost half of procurement money spent by local authorities is not subject to competitive bidding and it identifies a number of serious ethics violations.
These problems persist despite major reforms in 2005 and 2009, Camarda said, so the solution may be to stop creating more of them.
"We would like to see fewer authorities," he said. "We would like to see their responsibilities and duties centralized, and there should be a real reduction, particularly in local development corporations."
He said many responsibilities now entrusted to public authorities could be taken on by state agencies.
The report is online at abo.ny.gov.
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According to state data, as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, face cuts, Michigan's most vulnerable stand to lose the most.
In the Great Lakes state, more than 2 million people count on Medicaid, and more than 1 million of them are kids. When it comes to putting food on the table, more than 1 million Michiganders rely on SNAP benefits, including one in four children.
Amber Bellazaire, senior policy analyst with the Michigan League for Public Policy, emphasized the ripple effects of these proposed cuts could create widespread challenges, even for those not directly enrolled in Medicaid or SNAP.
"If a rural hospital closes because they're operating on razor-thin margins and have lost a significant amount of their funding, because of Medicaid cuts, that hospital closes not just for Medicaid enrollees but for all folks in that community," she explained.
Supporters of the cuts contend that these programs place a heavy burden on the federal budget, discourage work and self-reliance, and are susceptible to fraud and abuse.
MLPP reports that Medicaid is relied on across all Michigan counties and congressional districts, especially in rural and northern areas. The state also ranks high for SNAP participation among veterans, with 41,000 enrolled.
Bellazaire noted that the proposed cuts won't make health care more efficient or affordable - and if she had a seat at the table where budget decisions are made, she'd offer a more balanced perspective.
"I think that there is opportunity to discuss the balance between fiscal responsibility and protecting and improving upon the successes that we've seen come from the Medicaid program and Medicaid expansion," she continued.
Those in favor of the cuts maintain that private markets and local solutions are more effective than government run programs - and states should have more control over program management, rather than relying on the federal government.
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Maryland state lawmakers ended this year's session addressing a major budget shortfall and countless other issues in the state. But their work might not be over for the year.
Through a combination of tax hikes and spending cuts, lawmakers passed a balanced budget, despite a $3.3 billion budget deficit. Maryland taxpayers who make more than $500,000 a year will pay more in taxes, along with higher taxes on sports betting and marijuana sales.
Brenda Wintrode, state politics reporter with the Baltimore Banner, said lawmakers had to tackle multiple pressing issues for the state.
"The budget took the oxygen out of the session," she said. "It took up all the space. They had an energy crisis to resolve, which they did pass a sweeping energy package to try to make some room for more energy production in the state."
The legislature passed a major energy initiative meant to ramp up energy production through nuclear, natural gas, solar power and battery storage, along with a small rebate for electric bills. Lawmakers also made more than $2 billion in spending cuts.
Republicans in the state, however, objected to tax hikes to balance the budget. But despite the end of the regular session, Wintrode says there might be more work to do this year. All eyes are on Washington as President Donald Trump's cuts to the federal workforce and spending could impact the state.
"They have a balanced budget that is going to meet where we are as a state in this moment to get us through the end of the federal government's fiscal year. They are not ruling out having a special session, possibly coming back in October after the federal government looks at what it's going to be doing," she continued.
A report by Moody's Ratings finds Maryland faces the greatest risks of any state from federal spending cuts.
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A state-funded matched savings program has helped low-income Oregonians for more than 25 years and backers said it needs more funding to continue.
Participants in the Oregon Individual Development Account Initiative save money toward specific goals like buying a home or vehicle, or going to college, while working with local nonprofits. Once they reach their savings goal, the state matches it at a 5-1 ratio, helping build long-term financial stability.
Abi Brambila, a first-generation college graduate and small business owner, credits the program for the financial support to make college possible, and its budgeting classes for giving her confidence.
"These skills are going to take you further than any amount of money," Brambila pointed out. "For me, it really has been life-changing, and I do believe that other people deserve to get into a program like this."
Despite rising costs for goals like education and homeownership, program funding has remained flat for 15 years. Advocates are asking the legislature to update the funding to reflect inflation.
Cameron Herrington, director of policy and advocacy for the nonprofit Neighborhood Partnerships, which helps distribute the funds, said lawmakers have two options to shore up the program's funding: raise the cap on its main tax credit or dedicate some lottery revenue.
Herrington noted the program has helped more than 19,000 low-income Oregonians since it started, but cannot continue at its current pace without more support. He added both bills have bipartisan backing statewide.
"It's a matter of the budget writers at the legislature stepping up to the plate now and fixing the funding," Herrington emphasized. "It's overdue but we've set it up for them to make an easy decision to keep this program strong for the future."
Both bills to increase funding are in committee. Backers of the initiative said it helps bridge the growing income gap in the state, as well as the racial wealth gap. Data show the top 1% of earners in the state have more income than the bottom 50% of Oregonians combined.
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