Ostrowski’s Anti-Pork Lawsuit Dismissed

Libertarian activist and attorney Jim Ostrowski had been spearheading a lawsuit brought against several corporations, Empire State Development, and the state of New York, alleging that state business development incentives were violative of the state constitution. The New York State Court of Appeals put an end to that suit in a decision released today.

§8. 1. The money of the state shall not be given or loaned to or in aid of any private corporation or association, or private undertaking; nor shall the credit of the state be given or loaned to or in aid of any individual, or public or private corporation or association, or private undertaking, but the foregoing provisions shall not apply to any fund or property now held or which may hereafter be held by the state for educational, mental health or mental retardation purposes.

Ostrowski filed suit, and the defendants won a motion to dismiss, which was then reversed on appeal to the Appellate Division. At issue in the fight was whether state would continue to have a right to grant money and incentives to various private entities in order to help businesses and create jobs – it goes to the very heart of contemporary state business development strategies.

The Court explains how constitutionality is not only presumed, but that a violation must be found “beyond reasonable doubt”, because the Court had found as far back as 1976 that it will uphold “public funding programs essential to addressing the problems of modern life, unless such programs are ‘patently illegal'” The current prohibition was devised throughout the 19th century to prevent the state from being required to bail out and insure businesses who have received public monies, and to “insulate the state from the burden of long-term debt”. This is why the state created public benefit corporations and authorities. Case law has repeatedly found that public benefit corporations operate independently from the state, and that the state can grant money to them for lawful public purposes.

Because public benefit corporations are independent from the state, the Court finds that Article VII Section 8(1) does not apply to them gifting or loaning money the state has provided to them.

The Court also affirmed grants of public money to benefit things like stadiums, which may provide a private entity with a monetary benefit but also serves a public purpose. As such, county subsidies to the Bills and Rich Stadium may continue unimpeded by constitutional uncertainty. Justices Pigott and Smith offer dissenting opinions, arguing that longstanding practice does not magically render the unconstitutional, constitutional, and that the system merely rewards the well-connected at society’s expense.

It’s quite an interesting read (if you’re used to reading legal opinions) and, absent a constitutional convention, the end of the road for this particular argument.

Bordeleau v. Statehttp://www.scribd.com/embeds/73363162/content?start_page=1&view_mode=list&access_key=key-o6ro7p2n4oqko2zn2xe//

UnInformed Attacks: Engage

Check out the comments to this Buffalo News article regarding changes that County Executive-elect Poloncarz would like to make to Collins’ 2012 county budget. It involves re-shuffling existing money to fund what Poloncarz considers to be his priorities, as opposed to Collins’. The uninformed are already accusing him of increasing taxes and spending, when neither is actually occurring.

Such is the state of information in western New York.

In a post on Facebook, Poloncarz wrote,

Although this is Mr. Collins’ budget and both he and the Legislature have final say on what is passed, I hope to have some if not all of these priorities included. Considering the Comptroller’s Office has already identified approximately $5 million in overbudgeting, I believe the roughly $2 million in restorations I suggested are modest. This is in no way additional spending, simply part of my promise to spend what we have more wisely and on the things residents/taxpayers need, want and deserve from County government.

Moving

If everything goes as planned, this will be my first post as an online writer for Artvoice. Thankfully, it’s somewhat of a slow week, what with Thanksgiving and all.  Many thanks to Geoff Kelly and Jamie Moses for this unique and special opportunity.

To those of you who may be unfamiliar with my work with WNYMedia.net, I mostly write about local and regional political matters under the pen name “Buffalopundit”. You can follow me on Twitter and become a fan on the bookface. You can email tips, etc. here.

By way of background, I’m an immigrant to Buffalo – I’m not a native, and I’m not repatriated. I’m also not a sports fan, so I have little use for Buffalo’s most popular pastimes – sports and nostalgia.

By way of introduction, here’s a post I wrote in 2005 explaining why someone would pick up and move from Boston to Buffalo out of, essentially, the clear blue sky. A few things are different; the 5 year-old is now 11 and has a 5 year-old little sister. I work at a new place, but the sentiments remain the same: Read more

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