CSEA Slams Hein's Proposed Golden Hill LDC Gimmick

KINGSTON, NY (10/25/2011)(readMedia)-- CSEA today blasted Ulster County Executive Mike Hein's plan to use a local development corporation to operate Golden Hill Health Care Center for 2012 before selling the facility in 2013, pointing out that New York State Comptroller Tom DiNapoli has proposed outlawing municipalities' ability to use LDC's solely to lower government operating costs.

Under Hein's plan, an LDC would bond $8 million to fund not only Golden Hill, but SUNY Ulster and the Sheriff's road patrol as well. These bonds would be repaid with the eventual sale of Golden Hill, Hein claims.

According to a study titled "Municipal Use of Local Development Corporations and other Private Entities: Background, Issues and Recommendations" that DiNapoli's office issued in April, Hein's plan to use an LDC to fund government operations could be considered part of an "on-going pattern of abuse" of LDC's by local governments.

DiNapoli proposed a package of reforms to limit local governments' use of LDC's. These reforms include "preventing LDC's...from financing a local government's operations of capital assets;" as well as "prohibiting the creation of LDC's solely for the generic purpose of 'lessening the burdens of government and acting in the public interest.'" If these reforms had been made law, Hein's proposal would not just be abuse of LDCs, but in fact illegal.

"Mike Hein's clear disregard for good governance is a shame and should concern all residents of Ulster County," said CSEA Southern Region President Billy Riccaldo.

"When a plan goes against the recommendations of New York's top watchdog, there's a fundamental problem," said CSEA Ulster County Local President Terry Gilbert. "Mike Hein should stop using fiscal gimmicks when it comes to the future of Ulster County seniors."