By RICHARD D'ERRICO
The Albany Business Review

An overhaul of New York state's system of public authorities took effect Monday.

Legislators approved the reforms late last year, seeking to make changes to the state's so-called "shadow government."

The state has more than 1,000 public authorities, ranging from the Power Authority to the Thruway Authority to local industrial-development agencies. Public authorities issue bonds and play a key role in the state's economic development efforts, but misconduct in recent years sparked a push to force stronger oversight onto the agencies.

One of many changes is the creation of the Independent Authorities Budget Office. The office has expanded auditing and regulating powers, including the ability to issue subpoenas; it replaces the old Authorities Budget Office.

Monday, Gov. David Paterson named David Kidera as acting director of the new budget office. Kidera helped create the old budget office in 2006, and had run it since that time. He will make $122,223 a year in salary.

"The problem is, these authorities operate largely in the dark. Today, we're turning the lights on," Paterson said in November. "Nobody knows who's running them or why the money's being spent."