Andrew Cuomo

Governor

The Capitol

Albany, NY 12224

Eric Schneiderman

Attorney General

The Capitol

Albany, NY 12224

Carl Heastie

Assembly Speaker

LOB, Rm 932

Albany, NY 12248

Thomas DiNapoli

Comptroller

110 State Street

Albany, NY 12236

John Flanagan

Senate Leader

The Capitol, Rm 330

Albany, NY 12247

Jeffrey Klein

Senate Coalition Leader

LOB, Rm 913

Albany, NY 12247

Dear Governor Cuomo, Comptroller DiNapoli, Attorney General Schneiderman, Senate Leader Flanagan, Speaker Heastie, and Senate Coalition Leader Klein,

We write in the aftermath of the recent federal and state criminal complaints against many of the major players involved in New York’s Upstate economic development program to call on you to undertake major reforms.

The indictments confirmed that the state’s use of non-profits and branches of SUNY to award billions in technology manufacturing subsidies has created a system that is ripe for abuse. We are calling on you collectively to work together to develop legislation and regulations that implement previous recommendations to:

1. Require competitive and transparent contracting for the award of state funds -- regardless of the contracting entity. We recommend using the agency procurement guidelines as a uniform minimum standard.
2. Transfer responsibility for awarding all business subsidy awards to ESDC, and end the use of state non-profits and SUNY in awarding these subsidies.
3. Empower the Comptroller to review and approve all state contracts.
4. Create a Database of Deals that allows the public to see the total value of all forms of subsidies awarded to a business --- six states have this.

We also urge you to seek to reduce the potential for conflicts of interest by exploring options to limit campaign contributions from anyone who has or is seeking a state contract. Nineteen states and NYC have “pay to play” laws like this and it could be a positive step for New York State.

These reasonable reforms address a scandal that affected over $1 billion in public funds and revealed profound systemic problems with how the state awards certain large contracts. We urge you to move quickly implement these reforms and to ensure that public funds are awarded fairly and transparently.

Thank you,

Dick Dadey, Executive Director

Citizens Union

299 Broadway

New York, NY 10007

Ron Deutsch, Executive Director

Fiscal Policy Institute

1 Lear Jet Lane

Latham, NY 12110

Blair Horner, Executive Director

NY Public Interest Research Group

107 Washington Ave

Albany, NY 12210

John Kaehny, Executive Director

Reinvent Albany

148 Lafayette Street, 12th Floor

New York, NY 10013

Carol Kellermann, President

Citizens Budget Commission

2 Pennsylvania Plaza

New York, NY 10001

Susan Lerner, Executive Director

Common Cause New York

80 Broad Street

New York, NY 10004

Dare Thompson, President

League of Women Voters – NYS

62 Grand Street

Albany, NY 12207