Comptroller

DiNapoli Eyes 2022 Re-Election

dinapoli2022Comptroller Tom DiNapoli’s campaign account has re-named itself in anticipation of a re-election bid for the office he’s held since 2007.

DiNapoli’s campaign committee recently changed its name to DiNapoli 2022, according to a filing on the state Board of Elections website. The filing indicates DiNapoli will be seeking another term as comptroller, managing the state’s retirement fund as well as conducting audits and oversight of state spending.

DiNapoli, a Democratic former member of the Assembly, was selected by the Legislature in 2007 to replace Alan Hevesi, who resigned before he was sworn in to a second term.

DiNapoli is now the longest serving statewide official in New York government.

DiNapoli Issues Warning On Budget

Comptroller DiNapoli in a statement Friday afternoon warned state revenue is sagging — making the state budget process all the more difficult for lawmakers and Gov. Andrew Cuomo.

DiNapoli’s office released the January revenue numbers, showing a decline in projected revenue to the state of more than $2 billion.

In a statement, DiNapoli said the state needs to prepare the economy slowing down.

“New York’s revenue picture is increasingly challenged. The final January revenue numbers for the state released by my office today confirm the substantial shortfall the Governor and I announced earlier this month. In addition, the Division of the Budget’s updated financial plan reduces projected tax receipts in the coming years by billions of dollars,” DiNapoli said in a statement.

“Given the unpredictable revenue environment we now face, we should take an extremely cautious approach when negotiating next year’s budget. As one step, I urge the Governor and Legislature to make the prudent financial decision to substantially build up the state’s reserves to help better prepare for an economic downturn.”

Cuomo has blamed the slack revenue on the $10,000 cap on state and local tax deductions. He traveled to Washington this week to discuss the issue with President Donald Trump.

DiNapoli: Better Coordination Needed In Curtailing Opioid Use

Some Medicaid recipients in New York have received unnecessary or potentially dangerous opioid prescriptions outside of their addiction treatment efforts, a report released Monday by Comptroller Tom DiNapoli’s office found.

The audit, part of a series of audits reviewing opioid use in New York, found programs offering treatment services have in many cases not checked to determine whether patients are receiving opioid prescriptions or coordinating with health care providers.

“New York and the rest of the country are facing an opioid addiction epidemic, and people’s lives are at stake,” DiNapoli said. “Programs designed to get individuals off highly addictive opioids can only be effective with proper vigilance. The state Department of Health should take steps to help treatment programs and health care providers work together to prevent overdoses that could lead to hospitalizations or death.”

Audtiors review Department of Health records from Oct. 1, 20134 through Sept. 30, 2017, finding more than 180,000 Medicaid recipients who received 208,198 prescriptions for opioid use through the program. At the same time, they were receiving opioids, often methadone, as part of a treatment for opioid use disorder.

Thirty-three percent of Medicaid recipietns in treatment programs are receiving prescription opioids outside of that program, with 3 percent of those patients having received medical care for an overdose within a month of obtaining a prescription.

Recommendations include having the Department of Health improve its scrutiny of opioid prescriptions for Medicaid recipients who are being treated for use disorders and issuing a guidance to remind treatment programs of their statutory and regulatory requirement to consult the I-STOP database.

DiNapoli Finds Mixed Picture For Local Government Finances

There has been a decline in the number of local governments facing fiscal challenges, but those who are in “significant fiscal stress” has more than doubled, according to a report released Tuesday by Comptroller Tom DiNapoli.

“Fewer local governments are considered fiscally stressed, but those with persistent financial problems are struggling to stay out of the red and fix their problems,” said DiNapoli. “While the results may be encouraging in some areas, there are municipalities that should focus on near-term financial risks and implement more prudent long-term planning.”

The annual report assessing local government finances found 25 municipalities are deemed to be under a form of fiscal stress, including 10 counties, six cities and nine towns.

It is the third consecutive year that the number of fiscally problematic municipalities has fallen under the review, which assesses a variety of indicators, including fund balances, cash-on-hand totals, borrowing and chronic deficits.

Still, there are more local government facing significant fiscal stress: Nassau, Monroe and Westchester counties, Niagara Falls, Poughkeepsie, Watervliet, German Flatts, Oyster Bay and Parish all received the designation.

Munis Stressed by Nick Reisman on Scribd

DiNapoli: Pension Fund Reaches $209.2B

The state pension fund reported a 1.53 percent rate of return during the first quarter of 2018 and reached a value of $209.2 billion, Comptroller Tom DiNapoli’s office said.

“The Fund saw steady growth in the first quarter,” DiNapoli said. “New York state’s pension fund is designed and prudently managed to provide sustainable investment returns over the long-term, that means adjusting to conditions and finding opportunities even when markets are uncertain.”

The pension fund paid out $2.8 billion in benefits during the first quarter of the fiscal year, which ran from April 1 to June 30. It began the fiscal year at $207.4 billion.

DiNapoli is running for re-election this November, facing presumptive Republican nominee Jonathan Trichter.

Trichter Says Pension Fund Is Underperforming

New York’s $207 billion pension fund should be worth $344 billion, Republican comptroller candidate Jonathan Trichter argued in a white paper released on Monday by his campaign.

Trichter in a conference call with reporters argued Comptroller Tom DiNapoli’s office has poorly managed the state’s pension fund over the last 11 years and has failed to meet targets

The report argues these investment targets were missed due to the 5.36 percent net of fees and the 5.59 percent gross of fees compared with the 7.6 percent that was anticipated. Taken over a 10-year period, this amounts to $137 billion in missed value.

At the same time, Trichter’s report points to a failure to meet market benchmarks for returns over the last decade, including under performing investments in private equity and the investments made in hedge funds.

“DiNapoli has used all the measures in his tool box to obfuscate how the fund is doing,” Trichter said, adding the incumbent comptroller has sosught to “paper over a number of key indicators of how the pension fund is doing.”

DiNapoli’s campaign knocked the report and its methodology.

“It’s not surprising that a guy who just joined the party of Donald Trump is now trafficking in fake news to get attention,” said Doug Forand, a campaign spokesman for DiNapoli. “His numbers simply do not add up.”

Trichter is a former Democrat who is running against DiNapoli as he seeks a third full term. DiNapoli was first appointed to the post in 2007 following the resignation of Alan Hevesi.

The numbers released by Trichter in the report do not assume monthly benefit payments to retirees and family members and ignores significant economic events of the last decade, such as the recession and its subsequent impact on investments, DiNapoli’s campaign argued.

The pension fund’s investment performance itself is reviewed by actuaries and outside advisory groups as well as independent accounting organizations.

DiNapoli Pressures Social Media Firms On Privacy, Terms Of Service

Comptroller Tom DiNapoli is pressuring social media and search giants to bolster privacy and harassment protections for users as well as crack down on fraudulent news stories, announcing Tuesday the pension fund would flex its muscle in the hopes of influencing the companies to make changes.

DiNapoli’s office announced the pension fund would cast votes against Facebook CEO Mark Zuckerberg and five other Facebook board members, as well as the four directors who are up for election at Twitter. The fund is also voting against four of the 10 directors who are standing for election at Alphabet, the parent company of Google.

The push is part of a shareholder proposal co-filed with Arjuna Capital that is pushing boards to reveal more information on what the steps they are taking to enforce service agreements.

“Billions of social media users are at risk of being exposed to fake news, hate speech and sexual harassment if these companies cannot enforce their own user agreements,” DiNapoli said. “Unless safeguards are in place, the companies are at risk of financial losses, lawsuits and reputational damage.”

DiNapoli’s office has in recent years sought to leverage changes from major companies the pension fund has investments in, wringing changes from oil and gas firms as well as disclosure of political spending. This is the first foray into seeking better practices from major web companies that have increasingly broad influence over how Americans consume information.

The pensions holds approximately $1.1 billion in Facebook shares, $43.9 million in Twitter shares and $1.8 billion in Alphabet Inc. shares.

DiNapoli Pushes Wynn Resorts To Disclose Political Spending

Comptroller Tom DiNapoli is nudging investors in Wynn Resorts to use their leverage as shareholders to have the company disclose its direct and indirect political spending.

DiNapoli has filed a shareholder request as the trustee of the state’s pension fund to have the company disclose the spending, which is due to be voted on Wednesday.

“Corporate spending on political causes is inherently risky, and the stakes are raised when it’s done behind closed doors,” DiNapoli said. “Shareholders have the right to know if their investment dollars are being spent on political agendas that are not in the company’s best interest.”

Steve Wynn, a national Republican fundraiser, stepped down from the CEO position at the company in February after multiple women accused him of sexual misconduct.

New York’s pension fund holds shares valued at $32.8 million in Wynn Resorts as of last month.

Fuller To Retire From Comptroller’s Office

Vicki Fuller, the top official overseeing the state’s $200 billion pension fund, is retiring this summer, Comptroller Tom DiNapoli said Friday in a statement.

“I will always be grateful to Comptroller DiNapoli for the opportunity to work on behalf of New York’s public servants and their families,” Fuller said.

“His trust, support and thoughtfulness have been indispensable. And my colleagues at the Fund have been essential to every accomplishment we have enjoyed. Since my first day they have been an inspiration and an extraordinarily dedicated team of talented and genuinely nice people. There is never a great time to leave a place like the New York State Common Retirement Fund but there are several goals I want to pursue while I can.”

Fuller has served as the chief investment officer of the state’s common retirement fund for the last six years.

In a statement, DiNapoli pointed the average annual growth rate of more than 8.75 percent for the fund.

“The Fund has gained significant value and led the nation as one of the best managed public pension funds. Her legacy and dedication are impressive, but nothing is more important than her sincere and tireless concern for the more than one million New York state workers, retirees and families who rely on the Fund for financial security,” DiNapoli said.

“Since Vicki joined us, she has focused her decades of investment experience on delivering results and enhancing the Fund’s ability to serve their interests far into the future. By both measures, she has been an absolute success.”

Reform Party Endorses DiNapoli

The state Reform Party on Wednesday announced it has endorsed Comptroller Tom DiNapoli, a Democrat seeking a third full term this year.

DiNapoli is expected to face at this point Democrat Jonathan Trichter, a political consultant who is seeking the Republican ballot line.

“We’re going to choose the best candidates on the merits,” said the party’s chairman, Curtis Sliwa. “That will include Republicans, Democrats and independents.”

Sliwa, a radio personality and founder of the Guardian Angels, is weighing a bid for governor on the ballot line that had first been formed in 2014 as an effort to oppose the Common Core education standards.