19571

THE

PUBLIC

AUTHORITY

Jerome

J.

Shestackt

If

there is

one

area

of

agreement

between

the

proponents

and

op-

ponents

of

the

public

authority,

it

is

that

the

authority

is

one of

the

most

significant

and

widespread

developments

in

state

and

local

govern-

ment

in

the past

quarter

of

a

century.'

Today,

state

and

local

govern-

ments

employ

authorities

for

such

varied

purposes

as

the

construction

and

operation

of

transportation

services,

marketing

facilities,

recrea-

tion

centers,

public

utilities,

schools,

airports,

bridges and turnpikes.2

Authorities

now

represent

several

billions

of

dollars

in

capitalization

and

their

obligations

are

significant on

the

investment

market.

3

The

rapid

growth

of

the

authority

and

the

increased

reliance

upon

its

use

has raised

challenging

questions concerning

its

appropriateness

as

an

instrument

of

government.

4

The

purpose

of

this

article

is

to

dis-

cuss

briefly

the history

and

nature

of

the

public

authority,

to

examine

its

advantages

and

disadvantages

and

to

suggest areas in

which

the

authority

may

be

most

appropriately

utilized.

NATURE

AND

HISTORY

OF

THE PUBLIC

AUTHORITY

Briefly,

a

public

authority

is

a corporate

body

authorized

by

legislative

action

to

function

outside

of

the

regular structure

of

state

or

local

government

in

order to

finance,

construct and

usually

to

operate revenue-producing

enterprises.

The

states have

provided

for

the

creation

of

authorities

in

various

ways.

In

most jurisdictions, authorities,

especially

on

the

state

level,

t

Member, Philadelphia

Bar.

Formerly

First

Deputy City

Solicitor,

City

of

Phila-

delphia.

A.B.,

1943,

University of Pennsylvania;

LL.B.,

1949,

Harvard

University.

1.

COUNCIL

OF

STATE

GOVERNMENTS,

PUBLIC

AUTHORITIES

IN

THE

STATES,

For-

ward

(1953);

FORDHAM,

LOCAL GOVERNMENT

LAW

25

(1949);

TEMPORARY

STATE

COMmSSION

ON

COORDINATION

OF

STATE ACTIVITIES,

FIRST

INTERIM

STAFF

REPORT

ON

PUBLIC

AUTHORITIES

UNDER

NEW

YORK

STATE

23

(1954).

2.

A list

of

the

major

road, bridge and

tunnel

authorities,

port

dock

and

terminal

authorities,

state

building

authorities,

and

water

and

power

authorities

is

contained

in

COUNCIL

OF

STATE GOVERNMrNTS,

op.

cit.

supra

note

1,

at

30-35.

3.

See

The

State

and

Municipal

Hundred

Million

Club,

The

Bond

Buyer,

Dec.

10,

1956,

p.

68.

4.

Concern

at

the

ramifications of

the

increase of

authorities

has

been

expressed

by

the

Governors'

Conference,

by

the

President's

Committee

on

Administrative

Man-

agement, by

the Hoover

Commission

and

by

many

others.

See,

e.g.,

COUNCIL

OF

STATE

GOVERNMENTS,

op.

cit.

supra

note

1,

Foreward;

FORDHAM,

A

LARGER

CONCEPT OF

COM-

MUNITY

23-25

(1956);

T

MPORARY

STATE

COMMISSION

ON COORDINATION

OF

STATE

AcrivrTris,

op.

cit. supra

note

1,

at

24.

(553)