Governor
David A. Paterson today accepted the final report from the New York State
Commission on Asset Maximization. The Commission was charged with broadly
examining whether asset maximization can benefit the State, as well as whether
any specific New York assets are suitable candidates for Public-Private
Partnerships (PPPs). The final report contains 27 major recommendations to help
create jobs, generate economic activity and benefit colleges and universities
across New York State. Some of the key recommendations include: school
construction and renovation in Syracuse and Yonkers; 300 bridge renovations in
all corners of the State; wind power on the Great Lakes; and high speed rail.
In addition to outlining specific project ideas that could be effective
long-term projects, the report also recommends the creation of a State Asset
Maximization Board to screen, oversee and implement PPPs. The State Asset
Maximization Board will serve as an entry point for new ideas, provide
continuous oversight and transparency, and enable New York State to tap into New York’s best and brightest minds – across the public and private sectors.
The Board would be unsalaried.
“In the midst of these economic challenges, we must now, more than ever, make
long-term investments to spur economic growth and think creatively about
innovative ways to enhance the performance of vital infrastructure assets,”
said Governor Paterson. “This report provides us with a series of ideas for
asset maximization projects that could accelerate construction, jumpstart job
creation, and provide for substantial savings in the years to come.”
“I want to thank Commission Chairman Carl McCall, Executive Director Samara
Barend and all of the Commission members for their diligent and thorough work
over the past several months to evaluate New York State’s assets and to
determine the types of projects that could be effective,” the Governor added.
“We must identify creative funding solutions to help pay for the State’s vital
infrastructure needs and this report has done just that. It will serve as an
important first step to develop a broad, long-term plan that will help secure
our State’s finances for years to come.”
Commission Chairman H. Carl McCall said: “After consulting a wide variety of
public and private entities throughout New York, across the country and beyond
our own borders, we are pleased to present Governor Paterson with a report that
we strongly believe will position New York State to take advantage of numerous
opportunities and provide a roadmap for long-term, strategic investment in our
assets. I want to thank the members and staff of this commission who have
devoted substantial time and effort to understand these complex issues, asset
classes and the successes and failures associated with other public-private
collaborations. I look forward to continuing to work with the Administration to
move these ideas forward.”
The Commission recognizes that New York has extensive experience with PPPs
across a variety of asset classes including both the creation and operation of
new assets and the reallocation of operational responsibility of existing
assets. Some of the most effective examples of successful PPPs across the State
include reducing the public costs of maintaining Central Park and the
construction of new schools in Rensselaer, leveraging human capital at New York
State Office of Science, Technology and Academic Research (NYSTAR), and
utilizing private investment to complete JFK Terminal 4. These examples
highlight the value and importance of successful PPPs and also the need for a
more comprehensive and strategic approach to future projects.
The Final Report develops a framework for identifying future asset maximization
projects, assessing the value of these projects, and ensuring the protection of
public policy values throughout the entire process. Additionally, the
Commission has identified several labor and environmental protections that
should be considered in every asset maximization project. The 27
recommendations included in the report span six asset classes ranging from
transportation, social infrastructure and higher education to energy,
information technology and underutilized property. The pilot projects were
selected as potential demonstration projects for PPPs based upon the spending
need addressed, cost savings delivered, the private sector’s ability to
partner, and the project’s regulatory and political feasibility. Each of these
projects could be delivered in an accelerated time frame by utilizing the
alternative financing and procurement approaches presented in the Report.
Some of the most innovative recommendations include:
- Allowing
certain SUNY schools to lease campus property to private entities,
providing new revenue streams to fend off future tuition hikes and keep
campuses in pristine condition;
- Renovating
hundreds of bridges across the state, from the Kosciuszko Bridge in New York City to the Robert Moses Causeway and many more;
- Placing
privately owned wind turbines on offshore state property, generating clean,
low cost energy while raising revenue for the state; and
- Bringing
together the State Department of Transportation, private railroad
companies and rail service providers to develop a high-speed rail link
from New York City, to Albany to Buffalo.
On October 2, 2008, Governor Paterson created the New York State Commission on
State Asset Maximization by Executive Order No. 11. The Commission issued a
Preliminary Report on December 15, 2008, which outlined the Commission’s
Guiding Principles, a set of criteria to be considered for determining whether
a project is suitable for asset maximization, as well as opportunities for
consideration in several asset classes.
The Commission held five hearings across the State in Albany, Buffalo, Long Island, New York City and Westchester. It received input through testimony,
presentations, meetings, panels and its Request for Participation process from
over 120 individuals and companies.
For more information about the New York State Commission on State Asset
Maximization please visit: www.nysamcommission.org. The
Commission’s final report is available on: http://nysamcommission.org/pdf/SAM_FINAL_REPORT.pdf.
###
The following quotes were provided in support of the Commission on State
Asset Maximization final report:
Senator Tom Libous said: “Governor Paterson, Chairman Carl McCall and Executive
Director Sam Barend should be commended for taking a creative, problem-solving
approach to the State’s fiscal crisis with this Commission. That is the way we
need to be thinking in these complicated times. There are some innovative and
resourceful ideas in this report that are worth taking a closer look at.”
Commission member Alan Trager said: “The Commission’s recommendations offer us
a path forward through an embrace of innovation, efficiency and collaboration.”
Commission member David Ochoa said: “Citizen participation is a critical
component for generating economic development and the Commission process has
achieved that goal.”
Empire State Development President & CEO Marisa Lago said: “In these
challenging economic times, we must evaluate all of our State’s assets to find
funding solutions to help meet the State’s infrastructure needs. I applaud the
report’s focus on creating jobs and ensuring future growth and investment
across all regions of our State. The creation of the State Asset Maximization
Board will allow us to share ideas, build public-private partnerships and adopt
a more comprehensive, strategic approach to infrastructure projects. I applaud
the Commission for its recommendations, which position our economy for future
generations.”
Executive Director of the Dormitory Authority of the State of New York Paul T.
Williams, Jr. said: “This fiscal crisis presents a unique opportunity to
explore more effective methods for planning, financing and delivering high-quality
projects that benefit the people of the New York while also maximizing the
impact of state assets and boosting our economy. The Dormitory Authority stands
ready to partner with Governor Paterson to ensure that New York fully benefits
from the common sense approaches identified in the State Asset Maximization
Commission’s report to more efficiently leverage our state resources.”
Building Trades Employers Association President Louis Colletti said: “The BTEA
applauds the Governor and the Commission on Asset Maximization for putting
forth an innovative, cost-effective, and efficient means of building badly
needed infrastructure projects. The Governor has uncovered a way to generate
billions in development and thousands of new jobs by utilizing public-private
partnerships to upgrade and expand our infrastructure.”
New York State School Board Association Executive Director Tim Kremer said:
“The New York School Boards Association commends the members of Governor’s
State Asset Maximization Commission for its thoughtful final report. It is
chock full of recommendations to help our school districts save taxpayer
resources and stretch those with which we are entrusted. The recommendation to
enable the Yonkers and Syracuse school districts to participate in a pilot
program to utilize public private partnerships as they undertake major school
building construction projects is a laudable example. We are also very
encouraged about action on two energy related recommendations that we have been
pursuing for years, namely, leveraging New York’s fuel acquisition expertise
and buying power to save schools and taxpayers’ money on energy purchases and
also one stop shopping for schools with the State’s two energy authorities. Now
it’s time for State leaders to act to save our strapped property taxpayers real
dollars.”
New York Building Congress President Dick Anderson said: “The Commission on
Asset Maximization has contributed an important understanding to future
financing of New York State infrastructure and way of taking advantage of the
State’s considerable assets. The New York Building Congress applauds the
Commission’s consequential work and looks forward to helping bring its
recommendations to fruition.”
Citizens Budget Commission President Carol Kellermann said: “New York has
substantial infrastructure needs that require innovative new strategies. Public
private partnerships have a proven track record of delivering projects better,
faster and more cheaply than the public sector. The Commission has established
good principles for undertaking selected projects in New York with this track
record in mind, and not to address short-term budgetary gaps.”
Independent Power Producers of New York President and CEO Gavin Donahue said:
“Many of the recommendations found within the report make a great deal of
sense. We are particularly pleased that the Commission on State Asset
Maximization joined the ever-growing list of industry and regulatory entities
that recognize a comprehensive and workable statute is a critical element for the
continued development of needed future energy supply.”
The American Council of Engineering Companies of New York President Del Dausman
and Executive Director Jay Simon said: “ACEC New York applauds Governor
Paterson and the Commission on State Asset Maximization for identifying
additional ways to deliver our needed infrastructure programs during these more
difficult economic times. New York needs a financially sustainable program to
ensure our social and economic future. By engaging the private sector, accessing
private equity and building public-private partnerships, the citizens of New York will be the beneficiaries of these new development opportunities.”
The American Institute of Architects of New York State Executive Director
Edward C. Farrell said: “We commend Governor Paterson for creating the
Commission and we strongly support the recommendations of this final report. As
stewards of the built environment, architects know full well that alternate
project delivery methods, which are common in other states, will produce cost
savings here in New York. Cost savings achieved by eliminating wasteful
processes is even more necessary now, as we work toward a sustainable built
environment. Taxpayers deserve no less and we call upon the legislature to
enact such changes.”
Associated General Contractors of America of New York State CEO Jeffrey Zogg
said: “As detailed in this report, New York State's infrastructure is rapidly
deteriorating and requires increased public investment. Using an open,
objective, and justified decision-making process, public-private partnerships
and other alternative delivery methods can help finance critical capital
projects that are the lifeblood of our economy. AGC NYS commends the Commission
for their efforts to identify potential building and transportation projects
that can be built using these arrangements and we look forward to working with
Governor Paterson and the Legislature on this initiative.”
Alliance for Clean Energy New York Executive Director Carol E. Murphy said:
“The energy recommendations are pragmatic, achievable and incorporate many of
the proposals that we and our members sent to the Commission. This report sends
the clear signal that New York understands the value of public-private
partnerships in creating the green economy that we all are striving for.”
Long Island Contractors’ Association Executive Director Marc Herbst said: “The
Commission’s report is a cogent road map for how best to ensure that the
greatest federal infusion of dollars into New York since the Great Depression
is spent wisely on public works. It also reminds us that bureaucracy cannot
replace leadership. Indifference never built a bridge. And, as a State, we need
to reorder our priorities so that we have the means and the drive to reinvent our
public infrastructure. The authors of this report should be applauded and the
Governor should be congratulated for insisting on a plan that gets us to the
future.”
President and CEO of The Business Council of New York State, Inc. Kenneth Adams
said: “The business community is pleased with the findings of the Commission.
As we try to turn around New York’s struggling economy, we know that
investments in public-private partnership are needed more than ever to create
and sustain economic growth. We look forward to making public-private
partnerships a job creating reality in New York State.”
Partnership for New York City President & CEO Kathryn Wylde said: “The
Commission on Asset Maximization offers concrete proposals for how New York can use its public and private resources more creatively to avoid the type of
crisis that has brought California to the point where it can no longer fund
operations. Moving quickly on the SAM recommendations will help restore our
state's fiscal health.”
General Contractors Association of New York Managing Director Denise Richardson
said: “As we learned from the MTA finance debate, we can no longer rely solely
on bonding and future revenue to fund our critical infrastructure needs. The
poor condition of New York’s existing infrastructure and our need for new
capacity far exceeds the State’s available financial resources, and we cannot
assume that the federal government will fully cover New York’s needs. It is
clear that we must find new ways of funding and building our infrastructure
projects. The Commission on State Asset Maximization’s recommendations are an
excellent start for evaluating new and creative financing and project delivery
options.”
Empire State Transportation Alliance Co-Chair Kevin S. Corbett said: “The
current crisis highlights the need for reaching beyond traditional government
funding of vital transportation infrastructure and actually presents a real
opportunity for accelerating such initiatives. ESTA appreciates the
comprehensive and thorough effort that the Commission made in developing this
Final Report. We look forward to working with the Governor and the legislature
to help turn these ideas into real projects that will benefit the economy and
our environment for years to come.”
Environmental Defense Fund Transportation Director Michael Replogle said: “If New York is to use public-private partnerships, it is important to see how they can be
designed to improve environmental performance. We appreciate that the
Commission on State Asset Maximization has recognized this in their
recommendations.”
Regional Plan Association President Robert Yaro said: “The Asset Maximization
Commission has recommended a comprehensive, responsible approach for attracting
private capital to maintain and improve the State’s under-funded physical
assets. As described in the Commission’s report, well-structured public-private
partnerships can reduce costs, improve efficiency and increase investment.
However, these arrangements are not panaceas, and require effective oversight
and expertise to insure that public objectives are met. The proposed State
Asset Maximization Board would provide this direction as well as a transparent
process based on a sound set of principles. The proposed pilot projects must be
evaluated separately based on their merits, but as a whole represent an
important set of opportunities to begin realizing the benefits of different
types of partnerships.”
New York State Association of Counties Executive Director Stephen J. Acquario
said: “This report responds to a confluence of challenges facing New York that are begging for innovative solutions. We need to think out of box to address
our aging infrastructure, changing demographics, increasing infrastructure
costs and overall reduction in revenue. These recommended approaches to
public-private partnerships can be used to expand innovation, share risks and
increase investments in the future of our State.”
###
Additional news available at www.ny.gov/governor/press
High resolution images available at www.ny.gov/governor/mediaimages
| password: paterson
New York State | Executive Chamber | press.office@chamber.state.ny.us
| 212.681.4640 | 518.474.8418
Email
Facebook
LinkedIn
Twitter
Digg
Google
