A Municipal Assistance Corporation (MAC) was an independent
New York State public-benefit 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 created for
New York City during the
1975 New York City fiscal crisis. 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] The majority of appointees to the corporation’s board were made by the Governor, initially by New York Governor
Hugh Carey. Members of the MAC included
Donna Shalala, later the
United States Secretary of Health and Human Services.[2] As part of the creation of MAC, the state passed legislation that converted the city’s sales and stock transfer taxes into state taxes.[3] 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.[4]
The other MAC was created on July 19, 1995 for the
City of Troy.[5] In 2017, it had operating expenses of $50,000, an outstanding debt of $24.45 million, and no reported staff members.[6]