Comptroller Weitzman Interviewed In Albany For State Comptroller Position

Thank you for inviting me to speak to you today regarding my qualifications for the office of New York State Comptroller. It is a privilege to be considered for this important position.

The challenges that the next Comptroller of the State Of New York will face - as well as the responsibilities of the position -- are critical. The people of New York deserve a Comptroller who already possesses the technical skills and understanding necessary to do the job. If there was ever a situation that required someone to “hit the ground running,” this is it.; My experiences in the private and public sectors have prepared me in a unique way to fill the position of State Comptroller.

I am a life-long New Yorker, born and raised in New York City, educated at Brooklyn Tech and Queens College. I have lived on Long Island for the past 35 years.

As a CPA, I spent 20 years in public accounting, becoming a national partner in one of the big four accounting firms. I spent years examining the country’s largest financial institutions, such as Merrill Lynch and Bank Of New York. Because of my exposure to all levels of capital and equity markets, I understand the investments in our pension portfolios and the myriad of debt instruments issued by the state and its agencies.

I have a special expertise in healthcare finance. I was a consultant and auditor for hospitals and healthcare companies. I was founder and CEO of two companies in the healthcare field. Because of this background, I understand the economics of the healthcare industry and know how to help combat Medicaid fraud. As Comptroller, I would work with the Legislature and the Governor to provide affordable healthcare for all New Yorkers.

I was honored to have been elected by my neighbors as village mayor for six years. Beginning my public service career at the local level gave me a deep appreciation for how government can eliminate unnecessary expenses that have no better justification than “we’ve always done it that way.” This background has served me well in my current position as Nassau County Comptroller.

Nassau County has a population exceeding eleven states and a budget of $2.5 billion. When I was first elected in 2001 we were considered the worst run county in America, with a structural gap approaching $450 million. The county was teetering on the edge of insolvency. An entrenched political establishment had for many years led a dysfunctional government, bloated with patronage, cronyism, and deeply in debt. Bad budgeting, fiscal gimmicks and exorbitant contracts were the norm.

As chief fiscal watchdog, I am proud of the role I played with the Nassau Interim Finance Authority, the County Executive and County Legislature in reversing years of mismanagement, and eliminating millions of dollars in wasteful spending. With the help of a dedicated staff, hired strictly on merit, I have been an aggressive fiscal watchdog for the county. We audited county agencies, outside contractors and local governments, exposing waste, fraud and mismanagement. Our audit subjects have ranged from the county’s corrections, police and social service departments, by far the largest components of the county’s budget, to fraudulent Medicaid providers and local taxing districts. Our audits and fiscal reports were accurate and hard-hitting. Our bond rating has skyrocketed from near-junk-bond status to investment grade, and Nassau is now considered one of the top three municipal turnarounds in the country.

With that experience I will be able to work with you and the Governor to close New York’s long-term structural gap between operating expenses and operating revenues, without adding to the almost $50 billion in state debt.

I applaud the proposals to require the Legislature to adopt a balanced budget and to require the executive to expand on multi-year projections and quarterly reports of revenue and expenditures, just as we have done in Nassau County. Transparency in budgeting benefits the state’s long-term fiscal health.

The recently announced budget reform proposal will require that the State Comptroller prepare the state budget revenue estimate if the Governor and the Legislature do not come to a consensus. I will ensure that the Comptroller’s Office constructs an accurate model to forecast revenue for this process.

Governor Spitzer announced in his state-of-the-state message that he will seek to reform the thousands of taxing districts in New York State that add to the property tax burden.

On Long Island, I have led this effort. Our eye-opening audits of local garbage districts exposed millions of dollars in wasteful and abusive spending patterns. Following these audits, I organized a bipartisan coalition of state and local officials to reduce spending by special taxing districts. Only last month I issued a report outlining ways that Nassau’s numerous districts can save tens of millions of dollars by operating smarter under increased oversight. I am extremely gratified by the editorial support we have received from the New York Times AND Newsday on these efforts.

Residents throughout the state are burdened with property taxes that are far too high. I have participated in the reform efforts of the New York State Association Of Counties since 2003 and was recently honored to become Chair of NYSAC’S Committee On Taxation And Finance.

When the office of the State Comptroller created a program to respond to the shocking fraud that was uncovered in the Roslyn schools on Long Island, I volunteered to help. My office recommended reforms that became part of the school reform act passed by this Legislature. We also produced a guide for school business administrators entitled “Red Flags To Uncovering Fraud,” which is now being used by school districts throughout the state.

My staff and I also researched and reported on the unfairness of the current school aid formulas, which we have shared with our state officials. We have urged that the state adopt a new tax relief formula based less on property values and more on residents’ ability to pay.

To help the county deal with skyrocketing employee health insurance costs, I published a white paper outlining measures to bring healthcare spending under control. Some of our suggestions have been incorporated in collective bargaining agreements. My office recently drafted legislation, since enacted, to eliminate duplicate health benefits for county employees and retirees, which will save $28 million over six years, without reducing health coverage.

I am especially proud that I established the NassauRx card, a free county-wide prescription discount card, and the first of its kind in New York State. In its first two years, the program has directly saved residents more than $6 million. As a result, our residents never have to pay retail prices for drugs. The program has become a model for similar efforts throughout the state and the nation, including the cities of New York and Los Angeles.

Please allow me to cite several other accomplishments of the Nassau County Comptroller’s Office. My staff and I -

The New York State Comptroller’s Office has almost 2,500 employees. These individuals are the key to its success. If I am fortunate enough to be appointed State Comptroller, I will continue my policy of hiring a diverse staff comprising the best and the brightest irrespective of party affiliation. The staff will be allowed to operate free from political interference. At the same time, confidence in the Comptroller’s Office must be restored following recent events. I will insist on the highest degree of ethical behavior on the part of all staff, including myself. The state’s fiscal watchdog must be beyond reproach.

Borrowing on one of my first acts in Nassau, I will move towards voluntary compliance with Sarbanes-Oxley through the creation of an independent audit committee. The Comptroller has enormous discretion in policies and direction. Just as all government activities are put under a microscope, the Comptroller’s Office should be no exception. An audit committee made up of independent, qualified professionals will provide high level review of the Comptroller’s activities and guidance in matters of compliance.

As an appointee, I will come to the State Comptroller’s Office without having raised funds to finance a campaign. You are entitled to know that I support campaign finance reform legislation, especially legislation to end even the appearance of a pay-to-play culture involving our pension fund assets. I would work to ban Comptroller candidates from taking campaign donations from persons and entities doing business with the pension funds. New York’s campaign finance laws need a major overhaul. I will work with the governor and legislature to explore alternatives, including expanded public financing of campaigns.

Oversight of the pension plans and their investments is one of the most important of the Comptroller’s responsibilities. The pension funds do not need stock pickers or market timers. I will ensure that only independent, qualified professionals are allowed to participate in setting performance evaluation procedures.

The returns posted by the pension system over the past few years have been exemplary. Now that the Governmental Accounting Standards Board (GASB) is critically examining the assumed rate of return used in determining whether the pension funds are fully funded, the state should consider moving to a more conservative rate -- offering our retirees greater protection -- without adversely impacting state and local budgets. This will serve us well should the markets turn downward again as they did a few years ago.

State law now allows the funds to invest up to 25 percent of assets in so-called alternative investments. Investments in areas such as real estate, emerging markets, private equity and international equities are capable of earning outsized returns; history has also shown they require careful monitoring.

We can have a healthy pension system that betters the lives of our residents. I applaud the work the pension fund has done to support the economic revitalization of our upstate economies and low-income areas, and to drive affordable housing programs. As Comptroller I would explore expanding such programs without jeopardizing the rates of return needed to fund our pension obligations now and in the future.

Our local governments will need help investing their funds to finance their retiree health care obligations. That unrecorded liability has been estimated at $250 billion state-wide and must now be calculated and reported under GASB-45. We should build on the state’s experience managing pensions to help local governments invest their funds to meet their retiree health insurance obligations.

Of course I will continue the important oversight work that is the traditional responsibility of the Comptroller. As my past work has proven, I will be a bulldog, using our auditors and investigators to ferret out waste and abuse. As State Comptroller I would focus the office’s resources on those areas where our taxpayers’ money is most at risk, just as I did in Nassau. One of those areas, as Assemblyman Brodsky exposed and addressed by the recent Public Authorities Accountability Act, must be oversight of our numerous public authorities. I will devote substantial resources to this issue.

I will also move the department forward in critical “back office” areas such as information technology. Two key projects that I would sink my teeth into are:

One aspect to this selection must be kept in mind above all as you make your decision: integrity and independence are the hallmarks of a professional comptroller, in the public or private sector. A comptroller who works in a highly charged political environment must have the courage and character to report honestly without consideration of partisan affiliation, personal loyalty, or political consequences. My record in Nassau County demonstrates my willingness to report accurately no matter how inconvenient it is for some to hear, and to issue strong audits of governmental units run by Democrats or Republicans. As Comptroller, my allegiance is to the people. That is how I would conduct myself and my office at the state level as well.

Although I am not a career politician, I have run two highly successful election campaigns. I received more votes than all but a few candidates for office in New York State. Based upon my record, the people of Nassau County have seen fit to return me to office for a second term in a highly competitive county, with the editorial endorsements of the New York Times, Newsday and almost all of our local media outlets.

In my five years as Nassau County Comptroller, through innovation, creativity and plain hard work, I have accomplished a lot. I will bring a similar attitude, commitment, and work ethic to the State Comptroller’s office and hope to accomplish much more.

I humbly submit to you that I have the necessary credentials, the breadth of experience, the proven record and the strong desire to use the powers of the Comptroller’s Office to accomplish great things for the residents of New York State.

Thank you very much for your attention. I would be pleased to answer any questions you may have.

TESTIMONY OF HOWARD S. WEITZMAN NASSAU COUNTY COMPTROLLER JOINT LEGISLATIVE PUBLIC INTERVIEWS OF STATE COMPTROLLER CANDIDATES

TESTIMONY OF HOWARD S. WEITZMAN
NASSAU COUNTY COMPTROLLER
JOINT LEGISLATIVE PUBLIC INTERVIEWS
OF STATE COMPTROLLER CANDIDATES