George Spitz

Wed, 14 Feb 2007 16:24:13 -0500

Governor Spitzer is showing a type of courage rarely, if ever, exhibited by public officials, But, while Tom DeNapoli is bereft of fiscal credentials, he is going to be Comptroller for the next four years. Consequently, it is important that the Governor not be discouraged from pressuring DeNapoli to discontinue the disastrous costly policies of his disgraced predecessor. Very few legislators, virtually none in the New York State Assembly, are qualified for positions such as Comptroller. Most major corporation require their Comptroller to be an accountant, many insist on a CPA. The State Attorney General must be a lawyer; the State Comptroller should be an accountant, an actuary, or a chartered financial analyst. Alan Hevesi’s, like Tom DeNapoli, lacked any of these skills. Hevesi was a political science major at Queens College. This played a significant role in the costly chaos the New York State Retirement Fund is in. Governor Spitzer could seize the initiative by appointing a task force including an accountant (CPA preferred} an actuary and a chartered financial analyst to investigate all aspects of the Comptroller function and press the pleasant though unskilled fiscally Tom DiNapoli to accept their recommendations for reforming the State Comptroller office particularly the pension system while preventing veto power over suggested changes by Silver, Bruno and their minions The Governor possesses an additional weapon for compelling new Comptroller DiNapoli to reform the pension system. He can reduce state and local government contributions to the pension fund ($2,782.1 million in 2006) to the same amount as government employees ($241.2 million in 2006). The benefits of equalizing the contribution level include reduced real estate taxes for county, city, and town governments plus school districts In 2002, the state and local government contributions amounted to only $263.8 million. Poor pension fund investment policies by disgraced former Comptroller Alan Hevesi encouraged by lack of oversight by Governor Pataki and the dysfunctional state legislature; were largely responsible for the more than tenfold payment increase to the $2,782.1 million in 2006. The $142.6 billion pension fund assets as of March 31, 2006 could easily have sufficed to pay the $6.15 billion in current annual retiree benefits if invested in good safe bonds paying an average of 4.28% interest DiNapoli can make amends for lack of oversight from his position on the Assembly Ways and Means Committee of Hevesi’s disastrous investment policies, much in risky speculative ventures. Hevesi’s stewardship of the pension fund was not only bad for the New York State budget but also for county and municipal governments forced as a consequence to raise real estate taxes and/or reduce services. The new Comptroller should be guided very carefully by Governor Spitzer but if he doesn’t the governor will be able to force his hand by insisting that state and local government contributions to the pension fund not exceed what the employees pay. George N. Spitz www.georgespitz.com

jason

Wed, 14 Feb 2007 11:00:23 -0500

its about time someone stood up to the old boys club of corruption and cronyism that is the NY state legislature with headmasters silver and bruno. good job spitzer, don't give them any breathing room.

MT

Wed, 14 Feb 2007 10:44:28 -0500

If this doesn't tell Silver that his shenanigans aren't playing with the people of New York, it will just be confirmation that he is a power hungry politico who is only out for himself and doesn't give a damn about the voters. We should be able to oust people like that from office even before their terms are up when it is so blatant.

Gothamist: New York Approves of Spitzer's Steamrolling

George Spitz

jason

MT