Creates the urban restoration bond act of 2014

BILL NUMBER:S6770

Title of bill

An act in relation to authorizing the creation of a state debt in the amount of two billion dollars, in relation to creating the urban restoration bond act of 2014 for the purposes of funding capital projects to provide for improving the infrastructure of cities of this state; and providing for the submission to the people of a proposition or question therefor to be voted upon at the general election to be held in November, 2014

Purpose

This bill would authorize the creation of a state debt, pursuant to referendum, in the amount of two billion dollars, for the purpose of improving the infrastructure of cities in the state.

Summary of provisions

Section one of the bill creates the short title of the bill: "the urban restoration bond act of 2014".

Section two of the bill provides for the creation of a state debt in an amount not to exceed $2,000,000,000 to provide moneys for the single purpose of improving the infrastructure of cities of the state by funding capital projects.

Section three of the bill authorizes the comptroller to issue and sell bonds up to the aggregate amount of two billion dollars for the purposes of this act.

Section four of the bill provides that the use of the moneys received from the sale of bonds sold pursuant to this act shall be spent on capital projects related to design, planning, site acquisition, demolition, construction, reconstruction, rehabilitation, expansion and modernization of transportation systems, roads, bridges, water supply systems, drainage systems, and publicly owned storm and sanitary sewers.

Justification

Cities across New York are struggling to stay out of debt while maintaining aging and failing infrastructure. Costs of running cities are escalating as revenues are not keeping pace with the costs of maintaining pension funds and healthcare plans. Additionally, the natural disasters the state has suffered from over the past few years have exacerbated the needs of cities to rebuild and restore infrastructure,. A bond act to help cities fund capital projects for the restoration of their infrastructure is justified at this time.

Mayors across the state are desperate for a funding mechanism that will give them a means of addressing their cities' needs. In the absence of relief from a new funding stream, several cities in New York will be faced with imminent bankruptcy. The Unites States has already witnessed a new phenomenon of bankruptcy in such major cites such as Detroit, Michigan and San Bernardino, California. Cities should not have to leverage the benefit of public safety against costs of repairing failing infrastructure. This bond act proposal will give

cities the means to fund necessary repairs and continue to provide essential services.

Legislative history

New bill

Fiscal implications

This bill would allow for a debt not to exceed, in aggregate, two billion dollars through the sale of bonds.

Effective date

The effective date section of the bill provides that this act shall not take effect unless and until it is approved by a majority of votes cast by the people in a general election in November 2014. Upon approval, the act shall take effect immediately. The question before the voters would be written as follows, "Shall the URBAN RESTORATION BOND ACT OF 2014 be approved?".