Citizens Union Endorses Harry Wilson For NYS Comptroller And Eric Schneiderman For NYS Attorney General

Originally Published: October 17, 2010

Visionary and innovative approaches Make Wilson and Schneiderman best choices over capable opponents

Historic Good Government Group also endorses 13 reform-minded State Legislative Candidates in NYC Padavan, Gianaris, Addabbo and 2 challengers – Vincent Tabone and Donna Maria Caltabiano – among the 13

Citizens Union today announced its support for Eric Schneiderman (D, I, WF) for New York State Attorney General and Harry Wilson (R, I, C) for New York State Comptroller, citing both candidates’ requisite experiences, robust visions and innovative approaches to the respective positions for which they are running. After interviewing and evaluating the candidates for these two offices, the board of Citizens Union formally made its decision this past Wednesday.

The detailed candidate responses to Citizens Union’s questionnaire on reform and other issues are available through the following links:

Harry Wilson

Eric Schneiderman

Tom DiNapoli

Dan Donovan

In two of the more competitive state legislative races in the city, Citizens Union supports the re-election of two Queens state senators, Frank Padavan (R, Con, Ind) in district 11, and Joseph Addabbo (D, Ind, WFP) in district 15. In other noteworthy contests, which also happen to be in Queens, Citizens Union backs two impressive challengers, Vincent Tabone (R, Con) in assembly district 26 and Donna Maria Caltabiano (R, Con) in assembly district 38, and supports the election of reform leader Assemblymember Michael Gianaris (D, WFP) in state senate district 12.

“Harry Wilson is the no-nonsense, breath-of-fresh-air candidate that New Yorkers have been seeking in their desire to reform our state government. His experience in turning around failed and distressed companies like General Motors equips him best to lend his financial expertise in the effort to dramatically change state government and help resolve our growing fiscal issues. The fact that he did that for GM while working with Democrats in the Obama White House gives us confidence that he will bring a welcomed nonpartisan approach to the office. The broad-minded leadership he promises will hopefully transform the role the office serves in a way similar to how both Eliot Spitzer and Andrew Cuomo expanded the scope and reach of the Attorney General’s office. New York needs to right its financial ship. We need a skilled fiscal expert at helm with a big vision- Harry Wilson is that person,” said Dick Dadey, executive director of Citizens Union.

Speaking about its choice for Attorney General, Peter Sherwin, chair of the Citizens Union board, said, “Eric Schneiderman has been a consistent and independent force for change in state government, and represents the best choice to lead an enterprising office that has gained great stature under its recent predecessors. Whether challenging legislative leaders to achieve the most significant reforms to empower rank-and-file legislators or bringing together members from both sides of the aisle to ensure all senators exercise ethical conduct that sets a high standard, Eric Schneiderman has been one of those true reform leaders who has led the way in battling the dysfunction that plagues Albany.”

Citizens Union Evaluation of Comptroller Candidates

Harry Wilson’s unconventional vision for the comptroller’s office led Citizens Union to support him over incumbent Tom DiNapoli. Wilson, a relative newcomer to the public arena, garnered attention through his stellar service on President Obama’s Auto Task Force restructuring General Motors, which Wilson cast as an extension of his private sector work for a number of private equity firms turning around distressed companies. Wilson views the Comptroller’s office through this experience, and sees it as an opportunity to turn around another entity in financial disarray, New York State.

Wilson impressed Citizens Union with his plans to more aggressively investigate waste and fraud by promising to do a line-by-line audit of all government agencies and entities as part of a systemic review of state government. This review, Wilson states, is necessary to reduce spending so ultimately taxes can also be lowered to generate economic growth and prevent the emigration of the state’s population to more affordable parts of the country. Wilson believes he could dramatically shrink the Office of the State Comptroller from its current staff of 2,500, noting that with just about 50 staff and 50 consultants, the federal government was able to restructure General Motors. Part of this downsizing would involve diminishing the number of money managers for the state’s pension funds by shifting portions of the domestic equity portfolio to index funds, which Wilson believes would also save nearly $100 million in fees in addition to reducing the headcount.

Citizens Union also found Wilson’s evaluation of the state’s pension obligations compelling. Wilson believes the state’s pension funds are woefully under funded by $30-$80 billion and calls for the creation of a sixth pension tier. He takes issue with a Pew Charitable Trusts Center on the States’ report and Governing Magazine assessment that showed New York State had one of the better funded pension funds in the country, noting the study simply used the current comptroller’s overly positive assumptions for the rate of return on investments. This unrealistic prognostication, Wilson believes, is rooted in the state’s use of discount rate standards established by the lax Governmental Accounting Standards Board (GASB), instead of those set by its private sector equivalent, Financial Accounting Standards Board (FASB), which is stricter, and Wilson believes, more accurate. Wilson also notes that applying the stricter accounting standards used in the private sector to all of state government reveals an enormous $300 billion total in debt.

With regard to reform, Wilson would continue the incumbent’s ban on placement agents and expand the ban to trial lawyers doing business with the state pension fund. He, like the incumbent, does not believe the sole trustee model should be changed but notes that he would create a committee of world class investors to act as a screen for choosing managers of the pension fund.

Wilson would also expand the scope of the office and its impact on the state’s fiscal affairs. For example, he would present the state budget after the conclusion of its fiscal year in a GAAP format so New Yorkers would know exactly how income was received and what was spent on an accrual basis. Additionally, he would create a state balance sheet showing all of the state’s assets and liabilities, including those of the public authorities and all state agencies. These two items in particular show the new and welcomed approach Wilson would bring to deep-seeded problems in Albany.

While Citizens Union feels Wilson has the better vision for how the Comptroller should use the office going forward, incumbent Tom DiNapoli deserves credit for taking an office deeply damaged by scandal and using the opportunity to bring about changes in relation to placement agents, fundraising and transparency. DiNapoli has been a competent office holder who has competently and with care handled the office, but despite these improvements and approach, Citizens Union believes that Harry Wilson is better positioned to use the office to push reform of state entities beyond the confines of the comptroller.

Citizens Union believes Wilson shows a deep and better understanding of the problems facing government, and can recite particulars on issues and programs that compensate for his newness to public service in New York State. Citizens Union is convinced that Wilson can bring a new and innovative approach to the position of comptroller and has the knowledge and demeanor to be a very effective and needed force for change.

Citizens Union Evaluation of Attorney General Candidates

Citizens Union remains impressed with Schneiderman’s expansive view of the attorney general’s office, viewing it as a lever to not only restore public confidence in state government but to also rebuild faith in the state’s large private institutions. He was the first among those running for attorney general to raise with Citizens Union the importance of pushing the current governor to grant original jurisdiction to the attorney general to investigate and prosecute political corruption cases, a prerequisite for creating a better ethical climate in Albany. Citizens Union views favorably Schneiderman’s plans to place a public integrity officer in each regional office of the attorney general to root out local wrongdoing and to more aggressively use the False Claims Act, which Schneiderman strengthened in the legislature this past session, to engage whistleblowers to hold those accountable who defraud state or local governments. Schneiderman also committed to push many reforms he and Citizens Union advocated for in the legislature through the attorney general’s bully pulpit and the office’s ability to introduce program bills, including public financing of campaigns and giving the attorney general the ability to permanently enforce election and campaign finance law.

Beyond reforming the state government, Citizens Union supports Schneiderman’s plans to closely monitor the implementation of dramatic changes at the federal level related to health care and finance laws, shaping rules as they are promulgated while keeping a watchful eye on related industries during the transition. Schneiderman also stated that he would build on his experience related to criminal issues, establishing an Innocence Unit in the Criminal Division of the attorney general’s office.

Citizens Union also felt Schneiderman’s experience in Albany was an asset rather than a liability. John Horan, chair of Citizens Union’s Local Candidates Committee, said, “Schneiderman possesses the commitment and conviction to fight public corruption and continue advocating for reform on a larger stage and with the greater authority that comes with the Office of Attorney General.”

Schneiderman’s opponent, Dan Donovan, was impressive in his own right. Donovan is creative in his vision for addressing public corruption through the Attorney General’s office, and, in his experience heading the District Attorney’s office in Staten Island, has demonstrated integrity and independence that is sorely needed in Albany. We further believe Donovan has good ideas and that coupled with his management experience, he would serve capably as Attorney General should he be elected. Citizens Union felt, however, that Schneiderman had a clear edge in articulating a vision for the office beyond addressing Albany dysfunction, and the personal force to use the office effectively as a bully pulpit.

Citizens Union Evaluation of State Legislative Candidates

In addition to the statewide races for comptroller and attorney general, Citizens Union also evaluated 13 races in New York City for the state legislature. In two open assembly seats in Queens (districts 26 and 38, respectively) Citizens Union backed two Republican candidates, Vincent Tabone and Donna Marie Caltabiano, for their commitment to achieving reform. In contested Queens State Senate races, Citizens Union backed Joseph Addabbo (D, Ind, WFP) in the 15th district over Anthony Como (R) and Frank Padavan (R, Con, Ind) over Tony Avella (D, WFP). Addabbo has made absentee voting and voter registration easier in his first term in the Senate while Padavan has co-sponsored the redistricting bill favored by Citizens Union and worked to realize budget reforms in recent years. Liz Krueger (D, WFP) also received support from Citizens Union for her recent efforts to establish a legislative budget office, as did Michael Gianaris (D, WFP) for his critical leadership in redistricting reform. The full list of state legislative candidate endorsements is at the bottom of this release.

Alex Camarda, CU’s director of public policy and advocacy, said, “We are pleased to support the re-election of reform minded legislators like Klein, Krueger, Padavan and Addabbo, while supporting reform-minded challengers in the Assembly – Vince Tabone and Donna Marie Caltabiano. Hopefully with experienced hands and new enthusiasm, this mix of candidates can help bring about the reform Albany needs.”

The endorsement of Citizens Union for Schneiderman, Wilson, and state legislative candidates was decided by a lengthy evaluation, full discussion and vote of the Board of Directors this past Wednesday following interviews of all candidates by a team comprised of board members and members of Citizens Union’s Local Candidates Committee. The evaluation included a thorough review of a broad ranging questionnaire completed by the candidates.

Citizens Unions did not make an endorsement yet in the gubernatorial contest between Andrew Cuomo and Carl Paladino, and is working with the candidates to schedule interviews in advance of Election Day.

Citizens Union next week will publish its 100th Anniversary edition of its Voters Directory with detailed information on all candidates running for state office in New York City and its evaluation of all those candidates it has interviewed. The Voters Directory will also be available online.

Citizens Union Endorsements in State Legislative Races