The purpose of this report is to help shed light on how town special improvement districts are structured, how they operate, and what fiscal burden they impose on property owners.

This paper is intended to help stimulate a vigorous debate on smart growth in New York State by providing a general background and helping to define major issues. New York has a unique urban and natural heritage, and a rich diversity of communities, many of which need to be brought back to a healthy condition. These resources need to be conserved and developed wisely, in an economically sustainable and environmentally sound manner.

The report reinforces the importance of cooperation and consolidation in achieving local cost efficiencies, especially during these times of fiscal uncertainty. The report also provides tips to local officials interested in exploring greater degrees of cooperation with other local governments, promotes further exploration of service delivery on a regional basis and lists many resources available on these topics.

New York State and its local governments maintain an extensive infrastructure critical to the economy, including roads, bridges, educational facilities, water and sewer systems and medical facilities. Most of this capital investment is financed through the issuance of long term debt. Investment in such infrastructure maintains and improves the vitality and economic well being of our communities.

Fiscal Stress Monitoring System (FSMS) has five categories of indicators: fund balance, liquidity, short-term debt, operating deficits, and fixed costs. These indicators contribute to a local government’s final classification of Significant Stress, Moderate Stress, Susceptible to Stress or No Designation.

Over the last several years, OSC has increased its oversight of IDA operations through audits and performance reports. The Comptroller also began suspending State tax exemption powers for IDAs that failed to file financial reports. Additionally, the Public Authorities Reform Act that became effective in March 2010, will further enhance IDA transparency by requiring additional reporting on governance, operating structure and financial condition. | [IDA Projects in 2008 - .xls]

This report provides an overview of financial and employment trends of the 116 active Industrial Development Agencies (IDAs) in New York State.

In 2007, nearly $61 billion in total project amounts were reported for all Industrial Development Agencies (IDAs) statewide.

Industrial Development Agencies (IDAs) are public benefit corporations created by an act of the State Legislature on behalf of one or more local governments. IDAs are intended to advance the job opportunities, health, general prosperity and economic welfare of the people of the State of New York, and to improve their recreation opportunities, prosperity and standard of living.

The current global financial market crisis could have serious implications for New York’s local governments if access to the credit markets remains constrained. While many long-term implications for local government finances may occur as a result of the broader deterioration in the economy, the credit situation has produced a more immediate impact on liquidity – the ability of local governments to finance their short-term capital operations and cash flow needs. Local governments who are dependent on short-term debt for these purposes could face continued risks.