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NY Authorities Deal Out Millions in Bonuses

By C. M. Barons

Just as turned stomachs were on the verge of recovering from multi-billion dollar bonuses paid out to investment bank employees on the heels of the federal bailout, we now learn that New York State has its own version of excess in the face of empty cupboard. David Kidera, the director of the Authorities Budget Office, has released a list of off-budget authorities that have awarded $6.7 Million in bonuses despite a $9+ Billion revenue gap.

Kidera describes the list as a glimpse since many active authorities have yet to report their extra pay.

Steven Hyde, president of the Genesee County Industrial Development Agency, was awarded $60,000 beyond his salary of $153,000. Three other agency employees split another $20,500. John Andrews, Board Chairman of the Genesee County IDA described the bonuses as incentive pay and noted that no worker earned a bonus in 2009.

In Erie County, EC Medical Center Corporation, Niagara Frontier Transportation Authority and other local authorities gave just over $5 million in bonuses to their staff in 2009. Overall some 2,100 employees at six area public authorities collected bonus payments with ECMC staffers topping the list at $4.5 million paid to 1,443 staff people.

The Rochester-Genesee Regional Transportation Authority also maintains a performance-pay system. RGRTA paid approximately $209,000 in bonuses to 101 workers last year; the average payment being $2,070. Seven employees received more than $10,000. The largest bonus went to RGRTA chief financial officer, Robert Frye, who received $23,000 on top of a $135,600 salary. Authority CEO Mark Aesch received $33,377 beyond his base pay of $155,000 last year. ECMC spokesman, Tom Quatroche, accounted for much of the extra compensation as back pay earned as part of retroactive union agreements.

The Authorities Budget Office report marks the first time authorities and other quasi-governmental entities have released such disclosures to the public. A 2009 state law intended to rein in the otherwise intangibly complex and under-accounted financial dealings of hundreds of public authorities led to the disclosure. David Kidera, the director of the Authorities Budget Office, noted that his office intends next year to separately list overtime, collective bargaining agreements and bonuses.

Also among the six local authorities reporting, Niagara Frontier Transportation Authority bonuses included a high of $9,017 paid to Executive Director Lawrence M. Meckler, who earned $190,207 in salary.

New York Power Authority, blamed for collapsing a deal that would have brought internet giant Google to Orleans County scheduled last March to pay out $3 Million in bonuses and had requested 12.1% rate hikes over the next two years- a move that was cancelled a year ago.

The Off Budget Public Authorities are a significant factor in New York's out of control budget. These agencies act with little oversight and beyond the scope of the budget process. The borrowing that these agencies engage in has contributed to AT LEAST 40% of current state debt. Although the combined borrowing of these 900 or more agencies is the fastest growing segment of state debt, the quasi-independent nature of these entities not only obscures an accurate accounting of their numbers- their financial practices are cloaked by the same independence.

To truly restore the integrity of state finance, these agencies must be reined in and brought to bear as ON Budget Authorities. They wield the state's credit card, and it is time we deprive them of that luxury.

For a more complete view of bonus recipients:

http://www.scribd.com/doc/34126170/Staff-Bonus-Payments

Marie Smith

So you mean to tell me that NY is scrambling to cut funds in order to save money, but we have someone in Genesee County that is taking a $60,000 bonus? So were those tax payers dollars that were giving that bonus, oh or should I say "incentive" as described? And can we see what exactly did Mr. Hyde do that deserved this $60,000 "incentive". I think that it is ridiculous that we have people like that getting bonuses that large, when we have other county employees that work extremely hard and don't even make a salary that is $60,000, or have gotten raises in the last few years! I think our checks and balance system is off in NY and it is time that we look into this.

Jul 14, 2010, 3:08pm Permalink
bud prevost

I'd be curious to see what warranted a 40% bonus. If this is the GCEDC (which I believe it is), explain what happened to the business parks at the corner of rt19 and North Rd in Leroy, and rt 19 and rt 33 in Bergen. Also let the taxpayers know what loan recipients are delinquent on repayment. Maybe you could also share some success stories. The only thing that bonus tells me is that NYS is ass backwards, and oblivious to reality.

Jul 14, 2010, 3:22pm Permalink
Mark Potwora

The GCEDC is only good at shuffling jobs around the county...60,000 bonus for what,doing his job..All county workers have every right to be upset over this..On top of a 153,000 dollar a year paycheck..213,000 dollars a year in a county of 50,000 people..How many jobs has the GCEDC created...

Jul 14, 2010, 3:42pm Permalink
Jeremiah Pedro

Really???
Is there any wonder why people are upset with the government of this state. All of it, the state level all the way down to the towns and villages.
Who decided that dolling out these bonuses was a red hot idea, especially in light of our states current economic crisis.

I guess Orwell was right after all. "Some pigs are more equal than other pigs."

Jul 14, 2010, 5:47pm Permalink
Mark Laman

Interesting... I guess when we have superintendents like Mix from Pembroke and Orman from Pavilion earning over $200,000, why would our local officials even need bonuses!

Its all a joke right!? How do they expect this state to keep our heads above water when greed like this is enabled every day! It doesn't make sense.

Jul 15, 2010, 10:20pm Permalink
C. M. Barons

The next wave of sad news, both the Independent Authorities Budget Office that issued this report and the Comptroller's office having similar responsibility to review, investigate and in the former case affect board membership have suffered cuts for the next fiscal year.

As John noted, the State Legislature would have to act on any change in the status of these off-budget authorities. Then, again, this would be a ripe plum for any Constitutional Convention.

Jul 15, 2010, 11:50pm Permalink
Dave Olsen

So, if you are elected, CM, will you introduce legislation to make the independent authorities not so independent and cap salaries? I for one, think reining in these independent authorities and moderating the ridiculous salaries of some state employees is one of the steps necessary to get NY back to fiscal sense.

Jul 16, 2010, 8:12am Permalink
Bea McManis

The first time I was aware of the number of "authorities" in NYS was at the Democratic Rural Convention. Andrew Cuomo brought it up and the statistics were astounding.
Maybe it was public knowledge, but I'll admit that I had no idea how many authorities there are.
Whether it is C.M. or someone else who introduces legislation, I am sure that Cuomo will be in there supporting it.

Jul 16, 2010, 8:24am Permalink
John Roach

Dave,
Making the authorities less independent is not the answer. Eliminating them is. Again as an example is the Thruway Authority. It should be eliminated and it responsibility given to the Department of Transportation.

But authorities are a great source of political patronage, so it will be hard to do away with them

Jul 16, 2010, 9:17am Permalink
Bea McManis

John,
In this we agree 100%.
Those patronage jobs have benefited members of both parties for a long time. It is time to look at them and eliminate them.

Jul 16, 2010, 9:44am Permalink
Dave Olsen

John and Bea; I'm with you. I'm for eliminating them, that would surely make them less independent. The patronage jobs should definitely go away. I don't want to sound like a smart ass, but I'd like to hear CM's ideas, since he's the one running for State Assembly.

Jul 16, 2010, 10:50am Permalink

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