LEADER-HERALD
Gloversville, NY
November 24, 2004
EDITORIAL
Agency loses public trust
A state audit of the Hudson River-Black River Regulating District shows what can happen when a public authority - which uses public money - goes unchecked. In light of the audit, people who pay for permits around the lake or do business with the district in any other way should question the regulating district's every move, require the agency to make all aspects of its operation open to public inspection and demand accountability. If the public fails to apply pressure, it may continue to suffer from an agency that operates improperly.
The Hudson River-Black River Regulating District was created in 1959 to regulate the flow of water in the Hudson River and Black River watershed areas, including the Great Sacandaga Lake. The district employs 27 people and has an annual budget of $6.8 million.
The audit released Tuesday by state Comptroller Alan G. Hevesi is shocking.
Among the findings:
- The district's Board of Directors provided insufficient oversight of district operations.
- The board approved fee increases of nearly 700 percent in its 2003 budget before presenting information to the public as required by law. The board later abandoned the increases after public protest.
- A secretary/treasurer and a legal counsel, who were hired by and reported to the district board, received full-time salary and benefits for part-time work, and neither submitted time sheets. The secretary/treasurer received $62,000 annually but worked only an average of four hours a week. The legal counsel was paid $75,000 annually but worked only an average of 18 hours a week.
- The district provides full medical, dental and vision benefits for board members despite the fact board members are entitled to no salary or other compensation.
- There was inadequate documentation for some credit card and other purchases - including the purchase of a $21,203 vehicle.
- The district has no formal policies relating to cash disbursements, billing and collection, accounts receivable, payroll and handling check and cash receipts.
- The board has no code of ethics.
The public has no reason to believe district officials who say they need to increase people's lake-access permit fees. People have no reason to trust the district's spending practices or support its high salary structure.
The agency has a new executive director, Richard H. Lefebvre. He and the board must revamp the operation if they hope to earn public respect. They certainly should expect no sympathy.
The board members are Anne B. McDonald, chairwoman; Timothy J. Noonan, 1st vice chairman; James L. Conkling, 2nd vice chairman; James D. Jankowski; and Pamela S. Beyor. The next meeting is scheduled for 9 a.m. Dec. 13 at the Moose Lodge on South Comrie Avenue in Johnstown. Members of the public should voice their concerns at this meeting.
DAILY GAZETTE
Schenectady, NY
November 27, 2004
EDITORIAL
Another Bad Audit
The state parks department's audit of the Saratoga Performing Arts Center management wasn't the only such damning document released this week. State Comtroller Alan Hevesi also weighed in with a critical review of the Hudson River-Black River Regulating District, the latest of many reports to find fault with the agency that controls water levels at the Sacandaga and other upstate reservoirs to prevent flooding downstream.
And, while the audit may have been limited to this particular agency, Hevesi made clear that the problems identified in it were not. Of the more than 700 public authorities in New York state, he had this to say: "Many of them do good work. Many of them are mismanaged, Many are corrupt. And some of them are all three."
The Regulating District, created in 1959, has a history of trouble. In the early 1990s there was a shakeup of the board after the state inspector general found that they had given themselves salaries, to which they are not entitled by the law, and had used district funds to pay for spouses' and friends' visits to resorts. There was further turmoil in 1999 when it was discovered that some executives and employees had accepted memberships at Sacandaga boat and yacht clubs the district regulates.
Now we have the comptroller's audit, which found, among other things, that: former Secretary-Treasurer George Scaringe, a politically connected Albany County Republican, was paid nearly $62,000 annually for an average of four hours week per work; a part-time counsel was paid $75,000 for an 18-hour work week with full benefits; board members received health benefits contrary to the law; and there was a lack of controls and documentation for purchases, an invitation to corruption.
When the district ran into budget problems from this mismanagement, the board, rather than looking inward, acted in the manner of the SPAC board. But where SPAC sought to cut costs by getting rid of the ballet, the district sought to increase revenues by raising permit fees -- by as much as 1,000 percent in some cases. The public outcry, as with SPAC's move, was great, and led to the critical audit.
Authorities, conceived by master builder Robert Moses, are supposed to be a way to get things done more quickly and efficiently than through ordinary government. But if they are not directly accountable to voters, it is all the more important that their finances and operating procedures be closely monitored.
There are various reform proposals from various parties in Albany, including more frequent audits by state agencies or independent parties; more financial disclosure and controls on lobbying; even a proposal by Democratic Assemblyman Richard Brodsky, who says patronage and other problems at authorities are worse than ever under the Pataki administration, for a constitutional amendment abolishing state authorities (but not local ones). That seems a bit extreme, but it's clear that a lot more oversight of these entities is needed.