Skip to Main Content
Services Talent Knowledge
Site Search


Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

January 20, 2015

NYS Authorities Budget Office Releases Policy Guidance on Grants and Loans by State and Local Authorities

The Policy Guidance

This week the New York State Authorities Budget Office (the "ABO") issued Policy Guidance No. 15-01 (the "Policy Guidance") regarding restrictions on grants and loans made by public authorities with their own funds.

In the Policy Guidance, the ABO states that (1) industrial development agencies ("IDAs") may not award grants or make loans under any circumstances; and (2) other local authorities (including local development corporations and land banks) may not award grants or make loans of the authority's own funds unless expressly permitted by its enabling statute.

The ABO was created under the Public Authorities Accountability Act of 2005 for the stated purpose of making public authorities in New York more accountable and transparent. In 2009, the Public Authorities Reform Act reestablished the ABO as an independent office in the New York State Department of State. The ABO's powers and duties as set forth in the Public Authorities Law include review and analysis of operations and practices of state and local authorities to assess compliance with the Public Authorities Law and other applicable law.

In the Policy Guidance, the ABO refers to a 2014 New York State Attorney General ("AG") opinion that concluded that the enabling statutes of IDAs do not specifically authorize IDAs to make grants or loans of their own money to any type of entity and that the AG's office does not believe that such activities are necessary for an IDA to exercise its express powers. The AG opinion concludes that an IDA may not make grants or loans from its own monies. The ABO notes that the AG opinion was consistent with prior opinions by the Office of the State Comptroller.

The ABO directs all state and local authorities that grant or loan their monies without specific legislative authority to immediately end such practice.

The Policy Guidance does not cite any statutory authority for the ABO to direct the fiscal, programmatic and business practices of state or local authorities or to interpret applicable law. The enforcement powers of the ABO are narrow. The relevant powers conferred to the ABO under Public Authorities Law Section 6(2) include:

  1. Initiate formal investigations in response to complaints or appearance of non-compliance;
  2. Issue subpoenas pertaining to investigations;
  3. Publicly warn and censure authorities;
  4. Recommend dismissal of board members or officers to appointing entities;
  5. Report suspected criminal activity to the Attorney General;
  6. Compel a non-complying authority to provide a detailed explanation of the failure to comply with Public Authorities Law; and
  7. Seek an order in the State Supreme Court to require an authority to provide information to the ABO, where such authority has not provided such information upon the ABO's request.


The legal authority of the ABO to interpret law and to direct fiscal, business and programmatic activities of state or local authorities is unclear. What is clear, however, is that the ABO has determined that all state and local authorities may not grant or loan their own monies without specific legislative authority and that any state or local authority engaged in such programming should immediately cease and desist or be subject to the ABO's powers described above, including the power to compel an explanation of non-compliance, publicly censure authorities and recommend dismissal of board members.

If you have any questions with respect to your current policies or practices in light of this Policy Guidance or would like assistance in analyzing the Policy Guidance, please feel free to contact Connie Cahill at (518) 429-4296 or, Garrett DeGraff at (518) 429-4235 or, Jean Everett at (202) 582-0601 or, Susan Katzoff at (315) 425-2880 or, or Thomas O'Mara at (607) 398-3710 or

Featured Media


Website Accessibility Lawsuits: Several "Tester" Plaintiffs—Competello, Fernandez, Liz, Riley, and Trippett—Targeting Businesses in Recent Flurry of Lawsuits


CDPAP Providers Get First Look at the Future of CDPAP Without FIs


New York State Fiscal Year 2025 Budget: Implications for Employers Unpacked


Lab Providers Under Increased Scrutiny From Civil and Criminal Agencies for OTC COVID-19 Test Claims


NYS Appellate Court Dismisses Claim Based on Material Misrepresentations in Insurance Application


It's Not Over Yet. Turning Your Judgments Into Dollars.

We're Growing in DC!

We’re excited to announce Barclay Damon’s combination with Washington DC–based Shapiro, Lifschitz & Schram. SLS’s 10 lawyers, three paralegals, and four administrative staff will join Barclay Damon while maintaining their current office in DC’s central business district. Our clients will benefit from SLS’s corporate, real estate, finance, and construction litigation experience and national energy-industry profile, and their clients from our full range of services.

Read More

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out