The Empire Page

Background:  Continuing our interviews with candidates for statewide office in 2010, we had some questions for Tom DiNapoli who is the incumbent and the Democratic Party candidate for NYS Comptroller.

 

Empire Page:  Your opponent Harry Wilson has attacked your proposal to allow the State and municipalities to borrow from the State pension fund.   How do you reply to his criticism?

DiNapoli: The simple response is that my opponent is intentionally misleading voters. My plan is not borrowing.   The facts and figures that my opponent has been spouting are completely off base and you don’t have to take my word for it.  The Fiscal Policy Institute described his analysis of my plan as off by “an order of magnitude.”  

Let me very clear: my plan gives localities and municipalities an option to spread pension fund costs over a period of time to smooth out peaks and valleys and provide for more consistent payments, much like a budget plan for utility customers.  Local governments will need to assess whether or not it makes fiscal sense.

No money will be taken from the Common Retirement Fund and we will maintain the integrity and historic strength of the fund. In strong years, local governments that opt-in to this plan will make payments into individualized reserve accounts. In lean years, money can be drawn from these accounts, creating less volatility for taxpayers and a more consistent revenue stream for the contribution rate.

The pension fund isn’t run like a day trading firm.  We are long-term investors with a perpetual investment horizon.  This plan is a long-term reform for the fund.  

My opponent, on the other hand, would bring a different set of values and assumptions to the job of Comptroller.  He amassed his fortune working at firms that knowingly made risky bets in search of quick profits at any cost.  These companies contributed to the economic collapse that devastated the savings and retirement plans of millions of New Yorkers; truly the worst of Wall Street.

He is quick to criticize my prudent fiscal policy.  But the plan he has concocted to have the New York State pension fund revert back to 1980 investment strategies would raise taxes by more than $10 billion in the first year alone.

That would mean that taxes on households outside of New York City would rise by $2,500 in 2010.  When paired with his support of a massive federal tax loophole that saves his former hedge fund colleagues from paying their fair share of federal income tax, his policies would deliver a truly devastating hit on the middle-class.

 

Empire Page:  What do you feel has been the most significant accomplishment of your time as Comptroller?

DiNapoli: As Comptroller, I’ve been a strong voice for fiscal sanity in Albany. I’ve taken on my own party’s leaders in Albany, fighting for a budget that uses honest numbers and makes the tough choices that are required.

My aggressive audits of government spending have uncovered more than $1.8 billion in waste, fraud or abuse of taxpayer dollars.  My office completed audits of every one of New York’s more than 700 school districts and we did it ahead of schedule.

I created a program, Open Book New York (www.openbookny.com), so taxpayers can see how their tax dollars are being spent.  

While I am proud of those achievements, I believe my biggest accomplishment has been restoring public trust in the Comptroller’s office.

When I took office in 2007, I inherited a mess.  Alan Hevesi left behind a legacy of abuse and unethical behavior that devastated the public’s trust.  His Chief Investment Officer admitted he had committed felonious acts while working in the Comptroller’s office.  We’ve seen Attorney General Andrew Cuomo find case after case of Hevesi-era fraud and abuse.  It was a devastated and demoralized office.

It was my job to bring reform to this office and to restore the public’s trust in the Comptroller.  An unprecedented level of distrust called for unprecedented action.

• I banned the involvement of placement agents, paid intermediaries and registered lobbyists in investments with the Fund.
• I banned pay-to-play practices by issuing an executive order that prohibits the Fund from doing business with any investment adviser who has made a political contribution to the State Comptroller or a candidate for State Comptroller.
• I hired an independent consulting firm to conduct a compliance review of every transaction approved since I took office in 2007.
• I appointed an Ethics officer and an Inspector General to help ensure ethical behavior at every level of the Comptroller's office.

Finally, I’ve increased transparency, ethics and accountability at every level of the office. These reforms have shut down opportunities for the kind of abuses that occurred under the Hevesi Administration.

At the same time, I’ve pushed for new investment strategies and better management of our investments.  The Fund is strong – the Pew Center reported earlier this year that New York is one of only four fully-funded state pension funds in the nation and Governing Magazine called New York the “Nationwide pension leader” – and we’re getting stronger.  Institutional Investor recently honored New York as its Large Public Plan of the Year for 2010. The Fund has consistently equaled or bettered the performance of our peers. 

My goal when I took this office was to become the people’s Comptroller.  I want New Yorkers to have confidence in me and in this Office and I’ve worked hard every day to achieve that goal.

Empire Page:  What will you focus on over the next four years if the voters return you to office?

DiNapoli: My campaign is run on a few very simple and direct principles.  I am protecting New Yorkers’ taxpayer dollars.  I am rooting out fraud and waste in government.  I am protecting the Common Retirement Fund for its members and for taxpayers as well.

New Yorkers need a strong, honest, independent voice in Albany.  I want to continue to be that voice, identifying and ending abuses, speaking out against bad budgets and protecting the pension fund from raids.

But I also want to take an even closer look at how we do things in New York.  I believe I can provide the services New Yorkers need for a much better price.

We’ve already taken steps to actively pursue cost savings and root out fraud and waste in our State’s $45 billion Medicaid system.   I’ve uncovered more than  $400 million in billing errors, overpayments and other problems in Medicaid audits. I am going to continue to work to recapture money lost to fraud, but I am also going to continue to examine Medicaid to identify policies that waste taxpayer money without providing additional health care services.

I have done close to two dozen audits of the Metropolitan Transportation Authority.  We’re looking for fraud, but we also want to change the culture of the MTA from one of acceptance to one of accountability.

Most importantly, I want to continue to push hard for budget reform.  This year’s budget fiasco was typical of the dysfunction of this broken process.  New York cannot continue to follow the same broken process year after year and expect different results.  To put an end to this, I’ve introduced a series of budget reforms.  I’m going to make sure we fix this process.

Empire Page:  What do you want voters to know about you as a person?

DiNapoli: I’m the product of a middle-class household, and I’m proud of that. My father served in World War II and spent his career working as a lineman for a phone company.  My mother was a clerk for the Nassau County Police department.

They both worked hard to put my brother and me through college. The values that my parents instilled in me are the values that I share with the working men and women of New York: hard work, honesty, integrity and service to others.

Those values guide me every day.

I bring a different perspective to this office. I spent 10 years working at AT&T, but I’ve been committed to public service since I was elected to the Mineola School Board at age 18.  I have a balanced view of both the private and public sectors in New York.  During my nearly 20 years in the state legislature, I built a reputation for bi-partisanship and dedication to protecting New Yorkers. 

I’m proud of my career in public service.  I am running for New York State Comptroller because I care about New York State and the people who live here and I want to make this state a better place to live, work and raise a family. 

 

Empire Page:  Andrew Cuomo came out with some strong recommendations that would among other things replace the Comptroller as the sole trustee of the NYS Retirement Fund with a 17-member board.   Were you asked for input as he was developing his proposals and do you agree with his recommendations?

DiNapoli: There are advantages and disadvantages to both models.  The most important aspect of the sole trustee model is the ability to protect the pension from raids on the fund.  Governors have repeatedly attempted to raid the fund to balance the state budget, and the courts have repeatedly upheld the Comptroller's authority to protect it. 

Unlike New Jersey, California, Illinois and other states, New York has a lengthy and strong tradition of making sure that state and local governments meet their pension fund obligations.   That's why New York has been recognized by the Pew Center as one of only four fully funded state pension systems in the nation.  We must preserve these protections so that we can continue to guard against the kind of fiscal shenanigans that resulted in the SEC’s recent actions against New Jersey.

I recognize that there is frustration and anger over the abuses committed under former Comptroller Alan Hevesi.  That's why I've implemented reforms like banning pay-to-play and prohibiting the involvement of lobbyists and placement agents in pension fund investments.  We need to remain committed to reform, and that’s what I will do in a second term as Comptroller.

But if we do move to a board, I strongly believe that it should not be a board comprised of political appointees.  The attempted raids of the past should be a clear enough warning that Governors and Legislatures cannot be trusted to safeguard the fund.  The Comptroller's authority to protect the fund from raids must not be diminished.

 

Empire Page: What issue do you feel voters should focus on in deciding which candidate for Comptroller to vote for in November?

DiNapoli: The issues of integrity and values go to the heart of the work that I do as Comptroller. New York State deserves a Comptroller who has the integrity to do what is right, even in the face of political pressure or expedience.  My opponent has not shied away from the fact that he shares the values of those people that represent the worst excesses of Wall Street.  Their actions directly contributed to the mortgage foreclosure crisis and drove our economy to the edge of collapse.  Harry Wilson was raised in this culture, it’s how he made his fortune.

I have approached this job from a different perspective.  My job description as Comptroller is simple:  It’s your money, and it’s my job to protect it.   

I have stood up and criticized leaders from both sides of the aisle in Albany for their failure to fix our fiscal problems.  I’ve fought for a budget built on honest numbers, a budget that makes the tough choices that New York needs in today’s economic climate.  I have ended the conflicts of interest that brought disrepute to the Comptroller’s office.

Having the integrity to do this job well means identifying which candidate shares the values of New York State.  I’ve done the job.  My record as Comptroller is evidence of where I stand and for whom I work; I’m committed to fighting for the working men and women of New York State.