Results tagged “statecomptroller”

The latest happy tidings from that fountain of good news named Albany warn that ballooning pension costs may drain local government coffers in the next six years. As reported in today's NY Times, an analysis from the state comptroller's office forecasts that state pension costs will triple to $8 billion by 2015, and the only solution is—you guessed it—there isn't one! Upset by that prospect, NY State Association of Counties Director Stephen J. Acquario tells the Times: "It’s alarming, eye-popping and unthinkable...Where is this money going to come from?" In keeping with local custom, no one in Albany can agree on an answer. Governor Paterson wants to limit pensions for new workers, while Comptroller Thomas DiNapoli thinks instead that counties should borrow money from the state to cover the costs. Others believe a tax increase will have to be in the offing, but of course, the legislature is a bit indisposed at the moment. A strong economic recovery could help matters, but what's the bottom line here? Cut benefits or bottom out, says Zvi Bodie at the Boston University School of Management: "Going forward, we’re going to have to promise less."

State Comptroller Thomas DiNapoli announced today that the NY State pension fund fell 26.3%, with its value now $109.9 billion. The global economic crisis contributed to the decline, and Crain's New York reports, "It isn’t clear what percentage of the decline is due to souring private equity investments, but the fund had about $11 billion worth of such investments and $4.5 billion of “absolute return” investments—also known as hedge funds—according to the previous fiscal year’s annual report. That’s about double the amount held in 2005." However, DiNapoli also said the pension fund is "built to survive even the most challenging investing environments. For example, the Fund saw the value of its assets decline by about $30 billion in the markets that followed the dot-com bust and the Sept. 11, 2001 terrorist attacks, only to see steady recovery in the subsequent years." However, in order to meet future retirement obligations, employers and taxpayers will give greater contributions.

The Attorney General's office, already investigating the state pension fund, is now looking at the NYC pension fund. The NY Times reports, "Investigators have long been examining why a tiny firm operated by Daniel Hevesi, a former state senator and the son of a former state comptroller, Alan G. Hevesi, was paid more than $1 million in fees for his role as an intermediary in deals with pension funds in New York City and for deals in New Mexico." (Two of Hevesi's cronies have already been indicted in the state pension fund corruption probe.) NYC Comptroller William Thompson already announced his office was investigating the use of placement agents (aka the middlemen who collect fees to match funds with investment firms) but the AG's investigation would reportedly be broader. On the state side, the Daily News says that Assembly Speaker Sheldon Silver arranged meetings between investors—such as former Rangers goalie Mike Richter— and the state comptroller's office. While none of those investors were selected, watchdog group Common Cause says, "It's very inappropriate because it looks as if the speaker is using his office as the most powerful elected official in the Assembly to try and influence the controller."

The trouble is just starting for private equity firm Quadrangle. Last week, it was revealed the firm's founder—and current White House auto bailout chief—Steve Rattner allegedly paid $1 million to a middleman to be included in the state's pension fund. Now it appears the investigation is heating out up over his attempts to have Quadrangle included in other pension funds—like those of New Mexico, LA and NYC. Apparently Quadrangle paid middleman/placement agent fees to the firm of Hank Morris, already indicted in state pension fund scandal, to drum up business—the NY Times reports that after a meeting with the NYC Comptroller's office, "Mr. Rattner left the meeting irritated that his own considerable connections did not seem to be enough. He soon hired Mr. Morris." City Comptroller Thompson's office is now investigating over whether Quadrangle lied about not naming Morris as a placement agent. (Also, Morris was also former State Comptroller Alan Hevesi's political consultant/top fundraiser!) To that end, the State Comptroller Thomas DiNapoli has banned placement agents from the pension fund, but a NY Times editorial suggests that the Legislature needs to create an independent body that watches the investments the State Comptroller makes.

Attorney General Andrew Cuomo announced charges against former Liberal Party boss Raymond Harding; NY1 reports that Harding allegedly "received $800,000 in illegal fees on state pension deals as a reward for opening an Assembly seat for former State Comptroller Alan Hevesi's son, Andrew."

More depressing news: State Comptroller Thomas DiNapoli released a report saying 225,000 jobs in New York State could be lost over the next two years due to Wall Street's downturn. (Crain's New York reports, "New York City Comptroller William Thompson has predicted the city will lose 165,000 jobs, so the latest forecast by Mr. DiNapoli is the bleakest offered so far.") DiNapoli, whose reports also suggests $6.5 billion in city and state tax revenue could be lost from Wall Street, echoed Governor Paterson's request for federal help and added, "Top Wall Street executives ought to forgo bonuses during this difficult time; it's inappropriate to reward poor performance. But the public must keep in mind that bonuses paid to lower level employees are often used to purchase goods and services in other industries, which benefits the overall economy. New York will feel a lot pain from a shrunken bonus pool."

For the past few years, the officials have been warning that NYC's Off-Track Betting, or OTB, has been on the verge of going broke, whether it's former State Comptroller Alan Hevesi or City Comptroller William Thompson. OTB doesn't give the city any revenues and recently pinned its hopes on attracting more customers by making over OTB parlors and allowing bets to be placed online and by cell phone or Blackberry.

Today on the Gothamist Newsmap: a partial collapse on West 123rd St. in Manhattan, an unusual trauma at Dewitt Clinton High School in the Bronx, and a shooting at Bergen St. and Buffalo Ave. in Brooklyn. The 7 train line was shut down for about two hours this afternoon after power to a number of signals failed. Service was back up by 4 p.m. AMNewYork looks at Rudy Giuliani's tendency to take phone calls...

The Division of State Government Accountability from the Office of the New York State Comptroller recently released an audit of the New York City Transit Museum’s Nostalgia Train program. The audit identified “significant weaknesses in the Museum’s internal controls over ticket revenue for Nostalgia Train excursions” and that most of the program’s costs are coming from New York City Transit’s fare revenues and public mass transit funding.

State Ethics Commission, long time no see! It's been about eight months since you found State Comptroller Alan Hevesi had violated state law, and now you're back on the radar with an investigation into Governor Spitzer's administration's conduct regarding use of the state police to track State Senate Majority Joseph Bruno.

Alan Hevesi recently hired a new lawyer and adopted an aggressive stance to battle accusations that he misused his position as New York State Comptroller, who oversees the state's $157 billion pension fund, for personal financial benefit. Last week, State Attorney General Andrew Cuomo said he was investigating whether Hevesi used his tenure as Comptroller to financially benefit from the many financial firms that vie to profitably manage a slice of the enormous pension fund.

The New York Times makes note of Alan Hevisi's continued legal problems today. The State Comptroller is under fire by the State's Attorney General, Andrew Cuomo, for perhaps illegaly financially benefitting from control of New York's $154 billion pension fund. The state doesn't manage the money itself; it shops the second-largest pension fund in the country (California's is larger) out to private managers, for very lucrative fees. Unsurprisingly, a lot of money managers are big political contributors. Investigators for AG Andrew Cuomo want to know if Hevesi benefitted from deals for state business with various financial companies.

• Hundreds of people - and counting - want enhanced F and V service in Brooklyn. You can sign a petition that asks for the "restoration of express service on the F line to Brooklyn and extension of the V line for local service to Brooklyn." The petition is inspired by a plan suggested back in 2003 to improve Brooklyn transit options.
• While it's not surprising to hear that the MTA has fallen behind schedule with a project, it's slightly distressing to hear that the project has to do with counter-terrorism work. State Comptroller Thomas DiNapoli has found that only two out of eight projects had been completed by the end of 2006. The MTA has been trying to "harden" various locations, from tunnels to stations, by installing surveillance cameras and improving other safety features, for the past few years. Still, DiNapoli said that the MTA is "incrementally" safer. Whoop-de-doo.
• The MTA came to an agreement on a new contract with Metro-North track workers. How long has the MTA been negotiating with Local 808? About four years. The deal includes a pay raise to make their pay comparable to LIRR track workers, according to the Daily News.
• And the MTA selected another 21 acts for its Music Under New York program. We've listed them after the jump, and you can see video of some of the auditions here.

• Today on the Gothamist Newsmap: an EMT was assaulted on Hazen St. at Rikers Island, a dead body in the water off Emmons and Ocean Aves. in Brooklyn, and another dead body in the water off Manhattan's Pier 11.
• The doctor taped swearing allegiance to Al Qaeda claims that his trip to Saudi Arabia to treat injured terrorists was actually just a ruse. He wanted to go to the Middle East to find out more about polygamy, so he could convince his objecting wife to let him marry some more women.
• The doctor who testified for the defense of Peter Braunstein, asserting that the fake firefighter rapist's brain is broken, is the same expert witness who said that mobster Vincent Gigante was probably suffering from dementia. After his conviction, Gigante admitted that he'd been faking it for 20 years.
• Another person was struck by a subway train this morning, and Brooklyn-bound 3 trains were halted between 148th St. and 96th St. in Manhattan while police conducted their investigation.
• Students at the International Leadership school are learning some type of lesson, as the charter school seems to have descended into anarchy. Four of eight original teachers were fired by the school's principal this year, another three teachers quit last week, and students conducted a walkout despite the principal's attempt to lock them in the school.
• The New York State Comptroller says that the state's budget does not add up and that spending is actually growing faster than Gov. Spitzer reported. Aides to Spitzer are saying that, as the new guy, the Comptroller just doesn't know how the budget in Albany works.
• National Guard Troops will soon be deployed to patrol PATH stations in New York and New Jersey. Rather than have permanent positions, Guard soldiers will pop up at random throughought the PATH system.
• When Brooklyn bloggers aren't blogging about their borough, they're meeting and talking about blogging about Brooklyn. And by extension, we've just added blogging about Brooklyn bloggers meeting and talking about blogging.

The top judge in New York State, Court of Appeals Chief Justice Judith Kaye, has threatned to sue the state if judges don't get raises by the summer. And according to the NY Times, a proposal to give them raises seems to have been a victim of the last minute deal-making for the state budget - Governor Spitzer did include a retroactive pay raise for judges, but lawmakers proposed a raise for both judges AND legislators. Then both were "dropped during closed-door budget negotiations." Ya gotta love bureaucracy - especially when Governor Spitzer, Senate Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver say they are all for a judicial pay raise.

After his appointed MTA executive director Elliot Sander suggested that a subway and bus fare hike may be possible in 2008, Governor Eliot Spitzer takes up the topic. And the Steamroller says he will do “everything possible” to avoid a hike. Spitzer is not suggesting black magic to help ease an $800 million deficit but - wait, it's a novel idea - to have the state put in more money!

The latest Quinnipiac poll about New York politics shows that the public is behind Governor Spitzer and his "Steamroller Style." Sixty-one percent say Spitzer's way is "good for the people"; by gender, men like Eliot a little more than women, with 63% men approving to 57% of women. (Men like a man who gets angry!) Interestingly enough, 59% of Republicans approve of Spitzer's attitude - probably because they are enjoying his fight with Assembly leader Sheldon Silver.

In a stroke of brilliance, the NY Post decided to test new State Comptroller Thomas DiNapoli on economics and elements of his new job. Basically, the Post ambushed DiNapoli at Great Neck's Plaza Cafe on Saturday (the Post writes that it "confronted" him). In spite of saying "I'm not up for a quiz," DiNapoli gamely tried to answer some questions:

... [He] feeble crack at five Economics 101 questions asked of him, getting them flat-out wrong, hedging on them or fidgeting uncomfortably while he fished for an answer.

Continue reading "Post Quizzes DiNapoli on Comptrolling"

Hours ago, former State Comptroller Alan Hevesi was fined $5,000 and sentenced to probation for "unlawful use of a state vehicle and driver" when he used his employees to drive his ill wife. The Times Union has an 18-minute video of the sentencing; reporter Rick Karlin noted that Albany County Court Judge Stephen Herrick said to the Queens Democrat, "Your fall from grace has been total and from a very great height…You are now the symbol, the icon, used by local and state reformers... Hopefully, your failure will serve as a deterrent." (See mugshot here)

Yesterday, Attorney General Andrew Cuomo announced that the State will sue ExxonMobil, BP, Chevron, Keyspan and Phelps Dodge over a 17-million-gallon oil spill in Newtown Creek that has spread underneath Greenpoint over 100 acres. The spill was detected in 1978, when a Coast Guard pilot noticed an oil plume; oil seeped underground from ExxonMobil refinery and storage operations since the 1950s. Attorney General Cuomo said:

This is one of the worst environmental disasters in the nation, larger than the Exxon Valdez and slower in the cleanup. ExxonMobil must and will be held accountable. The toxic footprint of ExxonMobil is found all over this area. It is ExxonMobil’s oil that remains under the homes and businesses. And it is ExxonMobil that has dragged its feet and done as little as possible to address the dangers that it created.”

Newly anointed State Comptroller Thomas DiNapoli may be a "nice guy" who finished first, but the State Legislature's dealings to put him in place makes our head spin. The Legislature, and more importantly the Assembly, had agreed to select someone an outside panel would find qualified. The thing is, no one on the shortlist was an Assembly member, so the Democratic-run Assembly which calls the shots in Comptroller selection, decided to pick Assemblyman DiNapoli of Nassau County. Check out these editorials from the region:

NY Times "A Member of the Club": "The choice is a setback for a legislature that is already considered one of the worst in the nation — and a further sign that its members are not listening to the public’s demands for reform."

Continue reading "Everyone Loses With DiNapoli As Comptroller"

The first battle is over, and Assembly Leader Sheldon Silver has dealt Governor Eliot Spitzer his first defeat. The Democratic-led Assembly selected one of its own, Assemblyman Thomas DiNapoli, to be State Comptroller. Spitzer had recommended three non-lawmaker candidates in the past weeks, but Silver and other Democrats were upset that the panel didn't include their choices. So, proving that politics is beyond any sort of rhyme or reason, the Assembly reneged on a deal with Spitzer to publicly vote for a new comptroller, rejected the other candidates and just picked their own. Way to have Democratic solidarity! (Of course, the Dems would argue that Spitzer reneged on a deal to have five contenders.)

There's nothing like a State Comptroller -using- state- employees- to- chauffeur- his- wife scandal to make our own Police Commissioner stop having the po-po drive his wife around. Oh, yes: NYPD Confidential spoke with a few detectives about "Driving Mrs. Kelly", a practice that ended right when State Comptroller Alan Hevesi came under fire:

One detective said the detail drove Mrs. Kelly as many as three or four times a week.

Continue reading "Grand Theft Auto: Commissioner Kelly's Wife Edition"

We couldn't even get through Governor Spitzer's first month before a "showdown with Assembly Speaker Silver." State Democrats have been saying they feel betrayed - or, in the words of Manhattan Assemblyman Keith Wright to NY1, "totally, totally disrespected" - because the panel formed by Spitzer to select State Comptroller candidates didn't select any of their choices. State Democrats claim the panel was supposed to pick five candidates, including a Democratic Assemblyman interested in the job, but when the panel recommended three non-lawmaker candidates, all hell has broken loose. Spitzer claims the panel would choose up to five candidates, but now it looks like the Democrats will reject those Spitzer-approved candidates. We bet Alan Hevesi is smiling somewhere over this.

Untitled, by Keith on Overshadowed.

Here is part two of our semi-chronological look back at the top stories this past year (here is part one):

We'd describe recently resigned State Comptroller Alan Hevesi's expression (and posture) as "Worst Day Ever."

State Comptroller Alan Hevesi pleaded guilty to charges and resigned from office today. From the AP:

The plea ends an investigation by Albany County District Attorney David Soares, who had been presenting evidence against the Queens Democrat to a grand jury. Hevesi will serve no jail time, but will pay a $5,000 fine and agreed not to file any appeal. He also agreed not to take office on Jan. 1. Friday's agreement also heads off a process that could have ended in the Legislature removing Hevesi from office.

Yesterday, Joseph Bruno, the NY State Senate's majority leader, revealed that the FBI was investigating him for his "outside business interests." Wow, is being investigated by the feds the new black for Republicans? Or is being investigation something most politicians need to go through (we're talking to you, Alan Hevesi!)? Republican Bruno called a press conference and told reporters, "I have nothing to hide. They are going into background over the past five or six years."