Municipal Assistance Corporation

A Municipal Assistance Corporation (MAC) is an independent corporation created by the State of New York for purposes of providing financing assistance and fiscal oversight of a fiscally-distressed city. Two MACs are explicitly designated under New York law.

Best known is the MAC for New York City, created in response to the city's fiscal of the mid-1970s. The Corporation was born of a recommendation made by a special panel composed of Simon H. Rifkind, Felix G. Rohatyn, Richard M. Shinn and Donald B. Smiley.^[1] During its existence, the majority of appointees on the Corporation’s Board were made by the Governor, initially by New York Governor Hugh Carey. As part of the creation of MAC, the state passed legislation that converted the city’s sales and stock transfer taxes into state taxes.^[2] In 2008, having sold almost $10 billion in bonds to keep the city solvent through its worst fiscal crisis, MAC settled its final accounts and voted itself out of existence.^[3]

The other MAC was created on July 19, 1995 for the City of Troy.^[4]

References

1. ^ Lucia Capodilupo (April 2002). "MUNICIPAL ASSISTANCE CORPORATION FOR THE CITY OF NEW YORK (MAC)". William and Anita Newman Library and Baruch College, City University of New York. http://newman.baruch.cuny.edu/digital/2003/amfl/mac/mac_finding_aid_index.htm. Retrieved 2011-01-20. 
2. ^ Roger Dunstan (March 1, 1995). "Overview of New York City’s Fiscal Crisis". California Research Bureau, California State Library. http://www.library.ca.gov/crb/95/notes/V3N1.PDF. Retrieved 2011-01-20. 
3. ^ Adam Lisberg (Sept 27, 2008). "Municipal Assistance Corp., New York's 1975 savior, says 'see ya'". New York Daily News. http://www.nydailynews.com/money/2008/09/28/2008-09-28_municipal_assistance_corp_new_yorks_1975.html. Retrieved 2011-01-20. 
4. ^ "Municipal Assistance Corporation (MAC)". Troy, New York. http://troyny.gov/mac.html. Retrieved 2011-01-20.