Stringer Comptroller

7/27/2019 Stringer Comptroller

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20 Jay Street, Suite 830 Brooklyn, NY 11201 Tel (212) 796-4200 Fax (646) 349-3893

2013 NYC ComptrollerQuestionnaire


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Instructions: Gothamist plans to interview all candidates for citywide office in 2013. This surveywill give us and our readers an overview of each candidates positions on issues of particularimport to our audience of young New York voters. For each question, please give a a shortresponse outlining your candidates position. You may include a link to longer positionstatements at the bottom of each response, which we will include when we publish the piece. Ifyou do not wish to answer any question, please specify no comment. If you have anyquestions, please contact us.

Candidate Overview

1. The NYC Comptroller is responsible for city fiscal, accounting, and audit functions, as well asacting as the managing trustee for city pension funds. What particular qualifications do youhave in these areas?

The job of comptroller is to be the manager of a professional staff of some 700 employees in 18bureaus, who are committed to thoroughly uncovering every dollar of waste, fraud, andinefficiency, safeguarding and growing over $130 billion in pension investments and working with

City agencies to ensure that every tax dollar is spent wisely.

You need someone who can partner with the mayor when it comes to marketing our city bondsand assuring rating agencies that our long-term fiscal plan is sound, but also someone with theindependence and backbone to stand up to special interests and call out wasteful spending whenthey see it.

I bring 20 years of experience to the table, with a proven record of independence, integrity andprogressive reform.

o As Borough President, my office has issued over 50 investigative reports on how to makeCity government better, smarter, and more efficient;

o

I have been serving as a trustee of the New York City Employees Retirement System(NYCERS) for the last 7 and a half years, and have served as a member and chair of theNYCERS Audit Committee;

o I have served as a member of the Franchise and Concession Review Committee(FCRC), working closely with the Comptroller, Mayor and other Borough Presidents toreview and approve diverse and major contracts involving City property;

o I steered major university expansions of Columbia, Fordham and NYU, creating some30,000 construction and permanent jobs;

o As a New York State Assemblymember, I chaired the Oversight, Analysis andInvestigation Committee and the Real Property Taxation Committee, which held hearingsinto the tax assessor scandals in 2002; and

o Ive worked to expand and diversify our economy through tech and entrepreneurialgrowth.

I want to use that experience to help grow NYCs entire economy to guard every tax dollar,build pension assets, and hold City government to the highest standards of performance andtransparency.

I believe I have the skills and the experience to raise the office of Comptroller to a new level, just


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like I did with the Borough Presidency.

2. What are the biggest areas of waste and corruption in NYC government, and how would youfix them?

As Borough President, my office identified tens of mill ions of dollars in wasteful spending in Citygovernment, on everything from runaway outside consultant costs at the Department ofEducation (spending on outside consultants soared 455% from 2004 to 2012, rising from $177million to $982.3 million), to needless subsidies granted to fast food chains and gas stations. Myoffice also shined a light on how the Department of Education had failed to apply for millions inMedicaid reimbursements for programs aiding special education students, while cities like Buffaloreceived millions in such aid.

As Comptroller, I will continue to root out waste, fraud, and abuse wherever it resides so that NewYorkers know that every tax dollar counts, in part by getting involved in the contract processearlier. I would examine large contracts earlier in the process, during pre-bid conferences, andnot just at the moment of registration when the details are all but set. That way red flags could beraised sooner and taxpayers would be better protected.

Personal Questions

1. Do you rent or own your home?

My wife, Elyse, and I rent our current home.

2. Do you have a pet?

No.

3. If you have children, do/did/will they attend public schools?

Our son, Max, is approaching his second birthday and our newborn son, Miles, is just four weeksold. I fully expect they will both attend public schools when the time comes.

4. How often do you ride NYC subways and buses? How often do you bike?

As a native New Yorker, I have ridden NYC subways and buses all my life. Growing up inWashington Heights, the A train was my gateway to the City. I retired my bike after high school.

5. Do you personally manage your own finances? How is your money invested?

My wife and I manage our finances. I invest my money carefully.

NYPD

1. Do you support an independent inspector general for the NYPD?

I support an Inspector General (IG) for the NYPD. An IG under the auspices of the CitysDepartment of Investigation will increase accountability and identify ineffective police practices.Public reporting of any findings will ensure that there will always be transparency by NYPDconcerning how its officers combat crime and engage in civilian encounters. Every NYC agencyother than the NYPD already has an inspector general under the Department of Investigations,including the FDNY and the Department of Corrections. I support the NYPD and its dedicatedpolice officers who every day work to keep us safe. An IG will not undermine this public safetymission but will enhance the publics understanding of why police officers take action in ourcommunities.


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2. Do you favor greater transparency into NYPD terrorism funding and operations?

Yes. The NYPD is the largest recipient of federal homeland security grant money, includingapproximately $150 million annually from the Urban Area Security Initiative, and tens of millionsmore from the State Homeland Security Program (SHDP) and other programs.

Pension Funds

1. How would you improve performance and oversight for city pension funds?

Ensuring the long-term health and sustainability of the Citys pension funds and protecting theretirement security of our City workers are among the most critical responsibilities of theComptroller. Taken together, New York Citys pension funds are the sixth largest in the nation,and I will work to ensure we lead the nation in professionalism, integrity and prudent strategies togenerate strong, risk-adjusted returns and limit volatility to meet our funding obligations andreduce costs for the City.

In partnership with the other pension trustees, we must continue to carefully diversify ourinvestments and systematically lower volatility, manage risk and reduce manager fees.Diversifying our portfolio means not only optimizing our asset allocation but also addressing riskallocation by comprehensively evaluating and monitoring it throughout our investments to protectour funds from excessive loss during economic downturns. I will seek to expand the capacity andexpertise of the in-house investment staff to enable the best and most efficient investmentpractices. And I will work with other public pension funds in the nation to identify best practices,sound joint investment ideas and strategies to collectively leverage the reduction of investmentfees.

2. Do you feel that hedge funds are an appropriate investment for city pension funds?

The role of hedge funds as an investment strategy for pension funds is to provide further portfoliodiversification, create lower volatility and decrease correlation to traditional asset classes. Hedgefunds serve as an investment strategy for many public pension funds and other institutionalinvestors, including New York City pension funds.

The City pensions strong concentration in public equity and bonds cause the funds to be closelycorrelated with the market and subject to dramatic loss during major downturns. Hedge fundstheoretically serve to create more portfolio stability. However, hedge funds must be carefully andrigorously vetted and selected for investment. Very few hedge funds are appropriate for publicinstitutional funds. Any City investment in hedge funds must ensure the fund offers an investmentstrategy that meets the diversification and stability needs of the pension fund, carries minimalrisk, is transparent, has appropriate liquidity and leverage and offers reasonably low fees.

3. Do you think it's appropriate for city pension funds to invest in:a) companies doing business in contested areas like the West Bank?b) gun or other weapons manufacturers?c) alcohol or cigarette manufacturers?d) companies with poor environmental records?

The Citys pensions should consider the impacts of environmental, social and corporategovernance (ESG) factors on the performance of their investments and the interest of pensionbeneficiaries. It is within the fiduciary duty of the Comptroller and pension trustees to consider arange of actions regarding holdings in companies with risks to public health and safety and theenvironment that undermine the value of our investments. Such action includes engaging suchcompanies to improve their corporate governance policies and practices to minimize risk andcreate greater long-term value. It may also be appropriate to divest from such companies ifsupported by a rigorous financial analysis of the portfolio impacts and available alternatives.


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New York City pension funds have encountered a number of campaigns to divest fromcompanies or sectors engaging in harmful conduct. As a trustee of NYCERS, I proposed theboard adopt a comprehensive divestment policy to ensure we comply with our fiduciaryresponsibility and employ a consistent and rigorous approach to all divestment decisions and thatsuch decisions are based on financial and economic considerations. Such a policy will allow usto determine whether to divest of any holdings, refrain from investing further in certain holdings,or maintain holdings and engage companies in improving business practices.

In addition, I proposed that NYCERS develop a comprehensive ESG (environmental, social andgovernance) policy that assesses ESG risks throughout the portfolio, such as companies withharmful or inefficient environmental practices that hurt their long-term business success. AsComptroller, I will ensure these policies are well developed and utilized to guide our pensions infulfillment of our fiduciary duty and address potential risk and harmful investments.

Miscellaneous

1. Would you support raising NYC's minimum wage, and if so, to what?

I support the Presidents call for a nationwide increase in the minimum wage as well as GovernorCuomos recently passed increase in New York States minimum wage. While the minimum wageshould be pegged to inflation, the increase from $7.25 to $9.00 an hour will make a significantdifference to thousands of New Yorkers who are struggling to make ends meet.

2. Do you support paid sick leave for all NYC businesses?

I have been a longtime advocate for a paid sick leave policy in New York City and I am gratefulthat the City Council passed a paid sick leave bill that covers nearly 1 million New Yorkers. Paidsick leave is essential to work-life balance. No longer will New Yorkers have to choose between

a paycheck and caring for a sick child or parent.

Like many workplace protections, paid sick is a win-win for employees and employers alike.

Universal paid sick nationally would reduce emergency room visits by 1.3 million a year,saving $1.1 billion in medical costs annually.

Workers with access to paid sick days are nearly 30% less likely to be injured on the job,resulting in lower health care and employer costs.

Without paid sick days, employees come to work unhealthy, costing employers $160billion per year due to lower productivity levels.

San Francisco, the first locality to guarantee paid sick days, experienced faster economicgrowth than that of surrounding cities.

As paid sick leave is implemented, it will be crucial to track the costs to businesses and theproductivity gains borne by this new worker protection. If paid sick provides benefits as expected,we should continue to evaluate how and whether to expand access to this critical benefit.

3. How will you increase transparency and good government policies as comptroller?

Throughout my career in public service, I have made transparency and accountability central tomy work. As an Assemblymember, I led the fight to end empty seat voting, a practice by whichlegislators could cast votes even when they were not present in the legislative chamber.


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As Borough President, I opened up the community grants process through myTranspareNYCwebsite, inviting in independent panels of experts to determine where needs are greatest and tomake all funding decisions.

I also made sweeping reforms to Manhattans Community Boards restoring ethics, accountabilityand performance to these bodies. By establishing a standardized application procedure with anindependent screening panel, I removed the politics from the appointment process, alsoincreasing their diversity, capacity and expertise.

And I launched the NYC Taxpayer Receiptso that New Yorkers could see exactly where theirhard earned tax dollars were going.

Ive always believed that sunlight is the best disinfectant and it will be no different if I am electedComptroller.

As Comptroller, I will ensure that the process of setting prevailing wages is fully transparent andconsistent.

Some of the steps that can be taken include:

Embracing technology to increase participation in and improve the accuracy andtimeliness of the surveys needed to determine the appropriate wage.

Canvassing the methodology of other states and municipalities to identify best practicesfor setting wages and ensuring transparency.

And making all documents used to set prevailing wage rates, including collective-bargaining agreements, easily identifiable online.

In addition, I believe it is critical that we start the conversation about ways to increasetransparency regarding economic development spending and improve accountability forcompanies that are beneficiaries of tax credits and other economic development incentives. An

economic development dashboard providing a user-friendly breakdown of how EDC funds areused and whether the beneficiaries have met goals for employment and economic activity couldenhance our understanding of how effective the City has been at building NYCs 21

stcentury

economy.

Furthermore, I will explore ways to enhance transparency for City contracts, make every Citycontract more accessible for public review and improve public notice and opportunity for publicinput in the City contracting process.

Documents

Stringer Comptroller