Assemblywoman Addie J. Russell (D – Theresa) announced today that she is re-introducing a bill to unconsolidate the Hudson River-Black River Regulating District.
In 1959 the Hudson River Regulating District (HRRD) (established 1922) was combined with the Black River Regulating District (BRRD)(established 1919) creating the Hudson River-Black River Regulating District (the Regulating District). The combined Regulating District is a New York State public benefits corporation established by the NYS legislature in Article 15, title 21 of the Environmental Conservation law (ECL). By law, reflecting the wisdom of the legislature at the time, the accounts of the two districts are required to be separate.
Now the Hudson River Regulating District is facing a shortfall of close to $4.0 million of its annual $5.4 million budget. The Black River Regulating District is currently fiscally sound. In order for the HRRD to make up for this shortfall, in the face of its inability to assess the benefited Hudson River counties, it proposed that the HRRD borrow from the BRRD. The Office of the State Comptroller (OSC) denied this request. In a letter dated October 23, 2009 to the Hudson River-Black River Regulating District, the OSC stated that ECL. §15-2141(1) requires that: moneys constituting the respective "general fund" or "debt service fund" or other fund or funds of either the Black River Regulating Board or District, shall remain and be kept separate and apart and shall be applied for the cost of maintenance and operation in the area of the appropriate district and to pay the debts and obligations of the appropriate board or district, on whose account such moneys were received.
“The legislature merged the two districts and for over sixty years the two accounts have been segregated. Just because the Hudson River Regulating District has been unable to solve its financial challenges does not mean that we should sit by and allow them to undermine the financial health of the Black River Regulating District,” Russell argued.
The Hudson River Black River Regulating District passed a resolution today authorizing a loan between the districts under pressure from an order related to the ongoing litigation.
“It is very uncertain whether they will have the resources to or if the Hudson River Regulating District even plans to pay back a loan taken from the Black River Regulating District. Separating the two entities, as the legislation I will re-introduce proposed, will ensure that the intent of the legislature to keep the finances separate will in fact occur going forward, and not keep the Black River Regulating District hostage during the Hudson River District’s legal troubles,” said Russell. "This legislation being re-introduced would once again separate the two regulating districts. It is clear that the Hudson River Regulating District needs a long-term resolution to resolve its financial difficulties. Borrowing from the financially sound Black River Regulating District is not the answer."