The Independent View: Changing of the Guard: NYC's Next Mayor and the City's Finances

First some history. This is my 6th year blogging. I cover everything political from an independent view and poverty, in all its forms. This year my blogging went worldwide, and now appears on the Independent Voter Network (IVN) and internationally through the subscription services of Newstex. This has opened blog comments to a world audience with me answering comments on politics from China and poverty from South Africa. Avery unique experience. So being asked to cover today's event as PRESS is another new experience.

In full disclosure, as a member of the Executive Committee of The New York City Independence Party and a supporter of Adolfo Carrion,Jr., I hope to still bring my independent view to this coverage.

The event is The Bond Buyer's 3rd Annual TRI-STATE AREA PUBLIC FINANCE CONFERENCE. The audience included institutional investors and rating agency analysts covering the City and its agencies. New York, New Jersey, and Connecticut are home to more than 20% of the nation's 100 largest bond issuers and five of the top 10. The conference will cover how the market is meeting the unique needs of these major public-sector organizations and helping to keep the country's most densely-populated region functioning and growing.

I covered the Keynote Panel - Changing of the Guard: New York's Next Mayor and the City's Finances. The moderators were:

Robert Kurtter - Managing Director, States, of Moody's Investors Service
Richard Kolman - Managing Director, Head of Municipal Securities Group, US Bancorp
Stan Ladner - Partner, Fulbright and Jaworski L.L.P.

All the New York City Mayoral candidates were invited, but only three took part:

Adolpho Carrion, Jr. - Former Bronx Borough President, President Obama's first Director of the White House Office of Urban Affairs
John Liu - New York City Comptroller
William Thompson, Jr. - Former New York City Comptroller

The panel began with opening remarks.

John Lui first gave a current review of the New York City finances and his accomplishments. He proposed issuing $407 million in so-called Green Apple Bonds to speed the cleanup of toxins in 772 schools. He said the money raised by the general-obligation bonds would allow the city to remove light fixtures carrying polychlorinated biphenyls, or PCBs, by 2015, six years ahead of the current schedule. The plan would also reduce the Education Department’s energy bills and cut carbon emissions. The proposal adds to a plan to accelerate spending on infrastructure, including bridges, roads, schools and libraries. He took up most of the time for opening remarks.

William Thompson, Jr. spoke about the hope to build a campaign of ideas and advance a long-overdue discussion on the challenges facing the city. He mostly agreed with Lui about the detail financial numbers with some minor changes. His main thrust was the coming population growth that will put a stress on the city's infrastructure.

Adolpho Carrion, Jr. spoke in detail about the need for a better education system to handle the future job needs of the state and country. He also spoke about the need to prepare for the upcoming population growth and cooperation with business to define the required future workforce.

Question #1 - What changes or adjustments would you make?

Adolpho Carrion, Jr. spoke about the need for a better quality of education and skill set to jobs match.

William Thompson, Jr. also spoke about education and a better match of jobs to skill sets. He is afraid of the ticking bomb when all city contracts will come up for renewal next year.

John Lui also spoke about education with better accountability, test scores and teaching methods, and education should not be run under a corporate model. He would redo tax breaks and subsidies, and have more transparency and review.

Question #2 - How would you handle the future debt load? Talk about PAYGO (Under the PAYGO rules a new proposal must either be "budget neutral" or offset with savings derived from existing funds. The goal of this is to require those in control of the budget to engage in the diligence of prioritizing expenses and exercising fiscal restraint.)

William Thompson, Jr. would change how PAYGO was used. He would create a "Rainy Day Fund", and use the low interest rates better then the current administration.

John Lui would refinance the current $14b debt, work closer with the rating agencies, and is producing a $39b Capital Plan.

Adolpho Carrion, Jr. discussed the difference between infrastructure and speculative debt, and would look at better use of PAYGO.

Question #3 - Talk about Health Care for Municipal and Retired workers

John Lui says current $85b and PAYGO debt not funded. He would create a uniform accounting standard and renegotiate workers health contribution.

Adolpho Carrion, Jr. also talked about the need to change the cost structure.

William Thompson, Jr. acknowledge the need to change the current municipal cost structure.

Question #4 - Talk about Public Safety (Stop and Frisk) and Quality of Life

William Thompson, Jr. was for Stop and Frisk but would change how it is used. It needs to be better controlled and any quota system needs to be removed.

John Lui is not a fan and would abolish it to save a bad allocation of resources. He used a statistics that 1,000 stops only found 1 gun. I could not verify numbers.

Adolpho Carrion, Jr. gave a history of Stop, Question, and Frisk. Moral questions need to be addressed.

Question #5 - Are you for or against Police Inspector General Office?

William Thompson, Jr. was for but with changes to how it would function.

John Lui was against the office.

Adolpho Carrion, Jr. was against the office.