In audio obtained by THE CITY, District Council 37 executive director Henry Garrido railed against the Comptroller’s probe as “outrageous,” “unprecedented” and a “political stunt.”
Fascinating how the stabilization fund morphed from its original equalization purpose into a general benefits slush fund once it grew large enough. The $500 million pot became too tempting for both sides to resist. Now that its gone from half a billion to basically zero, everyone's pointing fingers about who should refill it. The fundamental issue here is that neither party had an incentive to preserve the fund when times were good - both the city and unions benefited from spending it down. Classic tragedy of the commons, except with a jointly managed fund instead of a pasture.
In 2011, the Citizens Budget Commission sent a letter to Comptroller John Liu concerning the Health Insurance Stabilization Fund. Questions included: “What is the history of deposits and withdrawals…How are the funds invested and by whom…What is the performance record of these investments?” The CBC noted that no audit was ever done and requested one.
Way back in May 2014, the eminent NY journalist Juan Gonzalez, then working for the Daily News, warned that raiding the stabilization fund for raises would spell trouble. Nobody listened. Here's a gift link to that article: https://bit.ly/48Wm9cf
Fascinating how the stabilization fund morphed from its original equalization purpose into a general benefits slush fund once it grew large enough. The $500 million pot became too tempting for both sides to resist. Now that its gone from half a billion to basically zero, everyone's pointing fingers about who should refill it. The fundamental issue here is that neither party had an incentive to preserve the fund when times were good - both the city and unions benefited from spending it down. Classic tragedy of the commons, except with a jointly managed fund instead of a pasture.
Go gettem Lander, clean out the sewer that misappropriated the fund. If the worms are protesting that’s a sign you’ll expose their coverup!!
Bout time someone got into those books !
Here is Alan Kinger at the MLC meeting recently:
https://youtu.be/wAI8dDfALvI?si=vWiDthht_GlXJoqB
In 2011, the Citizens Budget Commission sent a letter to Comptroller John Liu concerning the Health Insurance Stabilization Fund. Questions included: “What is the history of deposits and withdrawals…How are the funds invested and by whom…What is the performance record of these investments?” The CBC noted that no audit was ever done and requested one.
https://cbcny.org/sites/default/files/media/files/LETTER_06272011.pdf
Way back in May 2014, the eminent NY journalist Juan Gonzalez, then working for the Daily News, warned that raiding the stabilization fund for raises would spell trouble. Nobody listened. Here's a gift link to that article: https://bit.ly/48Wm9cf