State Lawmakers Look at Ways to Avoid Another 'Buffalo Billion'

State lawmakers are looking at ways to avoid another Buffalo Billion, the economic development project championed by Governor Andrew Cuomo that has now been ensnared in a federal corruption case. Zack Fink filed the following report.

When the Buffalo Billion was announced in 2012 with much fanfare, the details about how it would all be administered were not immediately clear.

The economic development project was directed through the State University system, but the actual management was done by a little known private entity known as Fort Schuyler Management Corporation.

"Fort Schuyler Management Corporation is a private, not-for-profit organization set up by the Cuomo Administration. That is where the leakage occurred, if it did occur. And that is where the remedy has to be," said former Assemblyman Richard Brodsky. "Remedy is not complicated. Treat it like a government entity."

Nine people with ties to Governor Andrew Cuomo have now been charged in a sweeping corruption case alleging bid rigging in the Buffalo Billion program.

Assembly Democrats are now considering legislation that would take away the ability of big economic development projects to be handled by not-for profits that cannot be audited by the New York State Comptroller.

"It is always better to have an extra set of eyes," said Assemblywoman Nily Rozic of Queens. "Especially when you are talking about taxpayer money, and especially when you are talking about these public contracts."

Critics say Fort Schuyler was set up to avoid the normal processes and checks and balances of letting state contracts.

"The private. not-for-profit corporation is clearly run by folks who have institutional and personal loyalty to the Cuomo administration," Brodsky said.

NY1 asked Governor Andrew Cuomo last week if the Buffalo Billion should have been administered differently.

"Well look, hindsight is 20/20. But you also have to remember this was not a state agency," he said.

A spokesman for Cuomo added, "There's no doubt that after these cases we need to examine procurement of all executive and legislative contracts."

The earliest the legislature could take up a bill or package of bills would likely be January, when the new legislative session gets underway. In the meantime, Cuomo has transferred administration of the Buffalo Billion to the Empire State Development Corporation, which is an arm of state government where there is far more oversight.