*The Corporation has fulfilled its mission and, per Section 3233 of the Public Authorities Law, its existence has been terminated as of October 1, 2022.
- Mission Statement
Created on June 11, 1990, the New York Local Government Assistance Corporation’s (“Corporation” or “LGAC”) mission consists of three main goals, which, when met, directly benefit the State, the City of New York and other local governments and school districts. The goals are identified as follows:
- The issuance of up to $4.7 billion in long-term Corporation bonds to finance certain local assistance payments due from the State of New York (as well as certain other amounts necessary for the issuance of such LGAC bonds) to help eliminate the State’s reliance on the annual issuance of intra-year tax and revenue anticipation notes (“Spring Borrowing”);
- Manage the Corporation’s debt portfolio through maturity in an attempt to achieve a balance between the lowest cost of funds and appropriate market risk levels while maintaining the exclusion of interest on LGAC debt from federal and State income taxation; the Corporation’s operational costs efficiently; and the investment of funds until needed for debt service payments or operating expenses, monies in the Capital Reserve Fund, and any escrow funds.
- Beginning in 2004, certify on an annual basis through 2034, payments required to be made to the City of New York or its assignee from the Local Government Assistance Tax Fund.
- About the Corporation
The New York Local Government Assistance Corporation (“LGAC”) was created in 1990 to provide a means for the State to reduce its annual reliance on intra-year short-term borrowing through the issuance of General Obligation Tax and Revenue Anticipation Notes (“GO TRANs,” also known as the "spring borrowing") for cash flow purposes and to reduce its accumulated "GAAP" deficit.
Pursuant to legislation, LGAC was authorized to issue up to $4.7 billion of its bonds, secured by a contractual obligation with the State, to make payments to local governments and school districts. The most significant component of this legislation is that the amount of GO TRANs that can be undertaken by the State cannot exceed $4.7 billion reduced by the amount of bonds and notes issued by LGAC. Over the years from 1959, the State's GO TRANs borrowings had increased to a high of $4.3 billion. The need to complete these GO TRANs borrowings in order to make payments to school districts and other municipalities placed the State at the mercy of the financial market.
As the GO TRANs borrowings increased over time, it became more difficult, and costly, for the State to complete them. Since LGAC’s bonds were fully issued, the State may conduct a GO TRANs borrowing only if a declaration of emergency is put forth by the Governor and legislative leaders. If a GO TRANs borrowing occurs, it must be paid down within four years following the declaration of emergency.
LGAC completed its mission during the State's 1995-96 fiscal year. There have been no State GO TRANs borrowings since the State's 1993-94 fiscal year.1 LGAC’s remaining debt was fully retired on April 1, 2021.
In accordance with Section 3233 of the Public Authorities Law, the Corporation terminated six months after all its liabilities were met or otherwise discharged. As of April 1, 2022, the Corporation’s liabilities were met, and all remaining funds were transferred to the State of New York. Therefore, the Corporation’s existence was terminated on October 1, 2022.
1 Part JJ of Chapter 56 of the Laws of the State of 2020 authorized the issuance on or before December 31, 2020, by DASNY and ESD of certain tax and revenue anticipation notes or bond anticipation notes in an amount not to exceed $8 billion under the Personal Income Tax Revenue Bond credit. The purpose of this authorization was to help temporarily finance the budgetary needs of the State following the deferral of the federal income tax payment deadlines from April 15, 2020, to a later date in order to provide temporary relief to individuals as a result of the COVID-19 pandemic. $4.4 billion of short-term debt was issued and fully retired in the State's 2020-21 fiscal year.
All Prior Meetings
- Board of Directors
- Finance Committee
- Audit Committee
- Code of Ethics
- Directors and Officers
- Enabling Legislation
- Lobbying Contacts Policy
- Organization Chart
Reports, Operations and Schedules
*A management letter was issued.
- 2018A Refunding Bonds (Senior Lien) Official Statement, March 2018
- 2012A Refunding Bonds (Subordinate Lien) Official Statement, June 2012
- 2011A Refunding Bonds (Subordinate Lien) Official Statement, August 2011
- 2010B Refunding Bonds (Subordinate Lien) Official Statement, November 2010
- 2003A-4V Remarketing Circular, November 2010
- 2010A Refunding Bonds (Subordinate Lien) Official Statement, May 2010
- 2003A-8V Remarketing Circular August 2009
- 2008B-C/D and 2003A-5/6 Remarketing Circular June 2009
Authority Schedule of Debt
- Fiscal Year Ended March 31, 2022
- Fiscal Year Ended March 31, 2021
- Fiscal Year Ended March 31, 2020
- Fiscal Year Ended March 31, 2019
- Fiscal Year Ended March 31, 2018
- Fiscal Year Ended March 31, 2017
- Fiscal Year Ended March 31, 2016
- Fiscal Year Ended March 31, 2015
- Fiscal Year Ended March 31, 2014
- Fiscal Year Ended March 31, 2013
- Fiscal Year Ended March 31, 2012
- Fiscal Year Ended March 31, 2011