“The Local Government Assistance Corporation’s irresponsible and illegal actions threaten to blow a $500 million hole in New York City’s current budget.  I have been advised by Corporation Counsel that this action is a clear violation of State Law, and we will initiate litigation promptly to compel LGAC to fulfill its obligation to make annual payments of $170 million to New York City.  This amount would enable the refinancing of the remaining MAC debt for a savings of $2.5 billion to the City over the next five years.

“It is disappointing that after all the difficulties New Yorkers have faced to get us through the fiscal crisis, LGAC wants to saddle the people of New York City with even more of a burden in these tough times.”