“The State’s legal actions securing a Temporary Restraining Order (TRO) are an attempt to deprive New York City of the fiscal relief rightfully and legally granted by the Legislature. The order was obtained in Albany County, without any notice or opportunity for the City to be heard at the very moment we were continuing good-faith negotiations with the State over possible alternatives. This action has brought negations to a halt.

“We believe, since the City is placing funds to back the bonds in escrow, there is no chance of immediate harm to the State and thus the requirements of the TRO were not met. Further, the action should have been brought in New York City, where the law requires that suits against the City be brought. Because of the highly questionable procedures followed by the State, the Judge, at our request, has scheduled a conference for 8:00 am tomorrow.

“The MAC refinancing authorized by the Legislature is legal, constitutional, and we believe will be upheld by the Courts.  The order, for as long as it holds, stops us from carrying out the first step of this refinancing which will save New Yorkers $500 million per year for the next five years.  In fact, if the order is not promptly vacated, it will greatly jeopardize the City’s ability to ever go forward with the refinancing.

“The Governor’s alternatives lack the legally enacted legislation’s guarantees and cost savings to the City.  The maturity of the bonds proposed to be issued is of little interest to the City, and, in fact, the structure enacted was the choice of the Legislature.  What is important to us is that this aid was intended to help the City get through the current fiscal crisis-- and now the Local Governmental Assistance Corporation, a non-representative state agency, is standing in the way of our recovery.

“The kind of financing structure the Legislature created over the Governor’s veto has been used repeatedly in the State of New York by the Executive Branch itself. LGAC itself was established in 1990 and has issued almost $5 billion in bonds for the purpose of postponing into the future New York State’s cumulative operating deficit.  Those bonds already issued will finally be paid off in 2025, 35 years after they were first issued, charging State taxpayers for years and years of overspending in State budgets.  It is nothing less than hypocritical to conveniently object to this structure when it benefits the people of New York City and we will not stand for it.”