LIU ISSUES ANNUAL ECONOMIC FORECAST; WARNS OF SEVERE RISKS HIDDEN IN CITY BUDGET

  In his annual report on the State of the City’s Economy and Finances, City Comptroller John C. Liu warns that the unresolved contracts with every one of the City’s municipal unions pose a great financial risk to the City in the coming years.

Currently all of the City’s municipal unions are working under expired contracts. If the United Federation of Teachers (UFT) and Council of School Supervisors and Administrators (CSA) alone are awarded retroactive pay raises, it could cost the City $3.495 billion in FY 2014.

“The City’s budget is not truly balanced until this issue is resolved,” said Comptroller Liu. “This is a problem that will not go away simply by ignoring it, as the outgoing administration has done.”

On the positive side, the comptroller anticipates robust growth with tax revenues in the current fiscal year, exceeding the mayor’s forecast by $724 million.  The estimate for personal income tax (PIT) receipts exceeds the mayor’s forecast by $528 million.

The report shows that more than 300,000 jobs have been added in New York City since the worst of the recession, with strong growth in the health, technology, and education sectors. The City’s total private-sector employment now stands above its pre-recession peak.  At the same time, even with record levels of employment, the City’s unemployment rate remains unacceptably high at a seasonally adjusted 8.7 percent and wages have not kept up with inflation. Many fully-employed families are less well off than they were five years ago.

This annual report on the State of the City’s Economy and Finances is due from the comptroller each Dec. 15, as mandated by the City Charter. Comptroller Liu will publicly present his State of the City address on Tuesday, Dec. 17 at 10 a.m. at the Emigrant Bank Building, 49-51 Chambers Street.

LIU: RISING WATER RATES MAY HAVE SOAKED NEW YORKERS MORE THAN NECESSARY

Audit Finds Questionable Budgeting Badly Underestimated Incoming Revenues Even As Rates Surged

Download the Audit

   An audit by City Comptroller John C. Liu of the New York City water and sewer system found doubtful accounting and chronically low forecasts of annual revenue, that may have led to increasingly high water rates for New Yorkers.  Comptroller Liu’s audit also found that the Department of Environmental Protection (DEP) failed to collect $27 million in delinquent water and sewer bills.

Every year the NYC Water Board and the NYC Municipal Finance Authority (collectively NYW) forecast the amount of surplus revenue that the DEP will collect from water bills, which will go to pay for its debt obligations.  Over the last four fiscal years, NYW issued extremely conservative forecasts for their surpluses, which may have caused rates to be set increasingly higher.   When revenues came in, however, the actual surpluses exceeded NYW’s estimates by 24 to 41 percent, in amounts that ranged from $71 million to $120 million each year. 

“The results of this audit indicate that rising water rates may have soaked New Yorkers more than necessary,” Comptroller Liu said. “DEP and the Water Board need stronger accounting of their revenues so that they can keep any rate increases to a minimum.”

Even as NYW publicly underestimated its revenue from water bills, it put the increasingly higher surpluses toward its projected debt obligations.  For example, in FY 2010 NYW allocated a surplus of $241.6 million toward debt and in 2013, the allocated surplus increased to $451.8 million.  NYW seems to have never considered whether the higher than budgeted surplus revenue could have been used to limit water rate increases. 

The audit also found the NYW failed to conduct proper oversight of DEP’s billing and accounting and may have underestimated DEP’s ability to collect past-due accounts—a factor that can affect the rate-setting process. 

DEP Failed to Collect Millions

DEP, which processes and collects bills for NYW, failed to collect $15 million owed during Fiscal Year 2012.  In addition, DEP failed to collect an additional $27 million from private entities located on City-owned and State-owned properties, and from Housing Development Fund Corporation cooperatives as of June 30, 2012.

Background

The New York City water and sewer system network includes more than 7,000 miles of pipes running from upstate New York to every building in New York City. Until the mid-1980s, the City funded operating expenses through its general fund and financed necessary capital investments by issuing the City’s general obligation bonds.  In 1984, the City obtained state approval to change the way its water and sewer infrastructure was operated and funded and created the New York City Municipal Water Finance Authority and the New York City Water Board. The Authority issues bonds to finance capital construction and infrastructure improvements.  The Board leases the system from the City and sets rates to ensure the system is self-sustaining.  The DEP operates the System and handles billing and collection of water and sewer charges for NYW. 

 

VERIZON TO PAY ADDITIONAL $1.4M IN FEES; AUDIT UNCOVERED UNREPORTED REVENUES

  Comptroller John C. Liu today announced the results of a new audit which found that Verizon had significantly under reported revenue as required by its cable franchise agreement with the City and underpaid fees owed to the City.  Verizon has agreed to pay the City $1.41 million in additional franchise fees.

“Franchise agreements with the City must be enforced both to deliver quality service to our residents and to ensure that City taxpayers are getting their fair share of revenues from these franchises,” Comptroller Liu said. “Our audit spells out why Verizon owes the City $1.41 million in franchise fees, and I’m pleased that Verizon has agreed to pay up.”

Verizon is required to pay New York City a franchise fee of 5 percent of gross revenue as part of its agreement to deliver cable service throughout the City. The 12-year non-exclusive agreement, via the Department of Information Technology and Telecommunications (DoITT), began in 2008.

This audit by the Comptroller’s office found that from July 2008 to June 2013, Verizon understated advertising revenue on the quarterly reports that it submits to the City by approximately $28.2 million, resulting in underpayment of $1.41 million in franchise fees owed to the City.

Specifically, the audit found that Verizon understated $17.1 million in advertising commissions that should have been included in gross revenue and did not report $11.1 million in foregone revenue from the value of advertising retained for its own use.

The audit called on Verizon to immediately pay the $1.41 million it owes the City, report all revenue as required by its franchise agreement, track the value of its own advertising, and provide DoITT with access to all necessary records. DoITT agreed with the audit’s findings and said it would ensure that Verizon accurately reports its revenue and complies with its franchise agreement.

Verizon disagreed with the audit’s findings, yet has agreed to pay the City the full $1.41 million.  This payment is in addition to the recent $60 million settlement between Verizon and the City for cost overruns caused by the company’s delays on the Emergency Communications Transformation Program project.

Comptroller Liu credited Deputy Comptroller for Audit Tina Kim and the Audit Bureau staff for presenting the findings.

Background:

Mayor Bloomberg, Comptroller Liu Announce $60 Million Settlement Agreement With Verizon, Nov. 14, 2013: http://comptroller.nyc.gov/newsroom/bloomberg-liu-announce-60-million-settlement-agreement-with-verizon/

2013 MOST PRODUCTIVE YEAR ON RECORD FOR NYC PENSION FUNDS’ SHAREHOLDER ACTIVISM

  City Comptroller John C. Liu today announced that the $144 billion NYC Pension Funds achieved new levels of success in 2013 toward improving the environmental, social, and governance practices of the corporations in their investment portfolio.  The details of the 2013 proxy season are available in the NYC Pension Funds’ annual report.  The report also includes summary information on the Funds’ proxy voting.

 

“We have a duty to City workers and retirees to ensure our portfolio companies focus on creating sustainable shareowner value,” Comptroller Liu said. “Over the past year we helped strengthen employees’ workplace rights, shed light on employee diversity, and negotiated policies to help claw back pay from misbehaving executives.  The NYC Funds have a proud tradition of active ownership to protect and create long-term shareowner value, and we have worked to intensify these efforts over the past four years. 

 

Shareowner Proposals

The Comptroller’s Office negotiated agreements on 27 of the 55 shareholder proposals it submitted to corporations — a record rate of adoption for its requests.  Among the highlights of the agreements Comptroller Liu’s office achieved on behalf of the Funds:

 

•         Capital One (NYSE: COF), Citigroup (NYSE: C), Encore Capital (NASDAQ: ECPG), and Wells Fargo (NYSE: WFC) — and three pharmaceutical firms — Boston Scientific (NYSE: BSX), Johnson & Johnson (NYSE: JNJ), and Merck (NYSE: MRK) — enacted policies empowering the board to claw back pay from senior executives responsible for improper conduct or excessive risk taking.

 

•         Chesapeake Energy (NYSE: CHK) agreed to propose a bylaw amendment to grant shareowners access to the corporate proxy to nominate directors as part of a major overhaul of its board and governance. Since the Funds led a successful director “vote no” campaign in 2012, the company has reconstituted its board, named an independent chairman and hired a new CEO, and its share price has outperformed its peers.

 

•         Health insurer Wellpoint (NYSE: WLP) agreed to name an independent chairman upon the April 2013 retirement of its existing chair, and to maintain the position for at least two years.

 

•         EMC (NYSE: EMC), Gap (NYSE: GPS), NIKE (NYSE: NKE), Target (NYSE: TGT), and Texas Instruments (NASDAQ: TXN) agreed to promote greater transparency of their suppliers’ compliance with internationally recognized standards on workplace safety and human and worker rights by encouraging key suppliers to prepare sustainability reports using Global Reporting Initiative (GRI) protocols.

 

•         AIG (NYSE: AIG), Bank of NY Mellon (NYSE: BK), and U.S. Bancorp (NYSE: USB) agreed to disclose the breakdown of their workforce by race and gender for major job categories, including senior management.

 

•         Anadarko Petroleum (NYSE: APC), Domino’s Pizza (NYSE: DPZ), Philip Morris (NYSE: PM), and Ralph Lauren (NYSE: RL) expanded their EEO policies to prohibit discrimination based on gender identity.

 

•         Lowe’s Companies (NYSE: LOW) and WellCare Health Plans (NYSE: WCG) agreed to disclose all direct and indirect political spending.

 

•         Avalon Bay (NYSE: AVB), Kimco Realty (NYSE: KIM), and SL Green Realty (NYSE: SLG) agreed to prepare annual sustainability reports based on the GRI and specifically addressing greenhouse-gas emissions, water conservation, waste minimization and energy efficiency. All three are residential REITs with significant property holdings in New York City.

Director “Vote No” Inititiatives

Cablevision (NYSE: CV)

The Funds led a “vote no” campaign against five Cablevision directors, three of whom had failed to receive majority shareowner support in 2010 and 2012. In a letter to Cablevision shareowners and filed with the SEC, Comptroller Liu cited Cablevision’s fundamental lack of board accountability, poor performance, excessive executive pay, and pervasive conflicts of interest involving the Dolan family, which controls 73 percent of the voting power despite owning less than one quarter of the company.  The five directors were each opposed by at least 39 percent of votes cast, including two directors who failed to receive majority support.  The board reseated all five directors.

Hewlett-Packard (NYSE: HPQ)

The Funds opposed two Hewlett-Packard directors who failed to protect investors from a series of ill-advised acquisitions (Autonomy, EDS and Palm) and boardroom fiascos that destroyed tens of billions of dollars in shareowner value.  The Comptroller’s Office detailed the Funds’ concerns with the directors in a press release that was also filed with the SEC.  Shareowners subsequently cast 45 percent and 46 percent, respectively, against the directors’ election.  In a major victory for shareowners, both directors resigned two weeks later.

Wal-Mart (NYSE: WMT)

The Funds opposed nine Wal-Mart directors due to the board’s poor oversight of compliance, lack of independence and unresponsiveness to investor concerns, as detailed in a Comptroller’s Office press release filed with the SEC.  Four of the directors — including the Chairman, CEO, former CEO and audit committee chairman — received particularly high opposition votes: excluding the Walton family, which controls approximately 50 percent of the company’s shares, unaffiliated shareowners cast about 21 percent to 30 percent of their votes against their election.  It was the second consecutive year the four directors received strong opposition.  Since last year’s no confidence vote, which was driven by reports that executives attempted to cover up alleged bribery in Mexico, Wal-Mart’s board has become less independent, even as it has reportedly expanded its investigation into possible bribery to additional countries.

COMPTROLLER SEEKS COURT ORDER FOR ACCESS TO DEPARTMENT OF FINANCE TAX RECORDS

  The Office of the City Comptroller has filed a lawsuit, asking the New York State Supreme Court to issue an order enforcing the Comptroller’s rights under the City Charter to access the Department of Finance tax records necessary to audit Finance’s collection of the General Corporation Tax (GCT).

The purpose of this audit is to determine the security and reliability, including the accuracy and completeness, of the assessment and collection of the GCT by Finance. Like all audits, the GCT audit is being done to safeguard the interests of New York City and its taxpayers.

GCT is a tax paid by domestic and foreign corporations that conduct business activities, utilize capital, own or lease property, or maintain an office in New York City. In addition, the GCT makes available many exemptions, deductions, and credits.  It is estimated that the GCT for this year could be as high as $3 billion.

“It is our duty as the City’s fiscal watchdog to monitor this enormous tax collection enterprise and verify that it is fair to all and that the interests of all City taxpayers are being protected,” said City Comptroller John Liu. “Finance is asking us to take its word that the collection of these funds is being properly handled. We don’t do that for any other agency and we will not do it for the Department of Finance.

“For decades Finance has been hiding behind an inaccurate interpretation of law to deny the City Comptroller’s Office the information it needs to ensure that corporations doing business within the five boroughs of New York City are paying their fair share.”

Our office has asked the Court for an order granting it access to records from Finance’s “FAIRTAX” computer system, which contains business tax return information and other vital data relating to how Finance processed the GCT returns.  Finance has denied us those records, citing tax-secrecy provisions, even though the City Charter states that the Comptroller is “entitled to obtain access to agency records required by law to be kept confidential.” Finance relied on a 1991 Opinion of the Corporation Counsel, which the Corporation Counsel reaffirmed in response to our October 2013 subpoena for the GCT records.   

The Comptroller’s Office routinely receives confidential information from City agencies when performing audits. The court order we are seeking would enable us to audit the collection of the GCT and other City taxes that account for close to seven billion dollars.

“After more than 20 years, we are asking the court to resolve this issue once and for all,” said Comptroller Liu.

Background:

“Section 93(c) of the NYC Charter provides, in relevant part (highlighting added):

The comptroller shall have power to audit all agencies, as defined in subdivision two of section eleven hundred fifty, and all agencies, the majority of whose members are appointed by city officials.  The comptroller shall be entitled to obtain access to agency records required by law to be kept confidential, other than records which are protected by the privileges for attorney-client communications, attorney work products, or material prepared for litigation, upon a representation by the comptroller that necessary and appropriate steps will be taken to protect the confidentiality of such records. 

In addition to the power to audit agencies under § 93(c), the Comptroller has:

the power to audit and investigate all matters relating to or affecting the finances of the city . . . and take the testimony under oath of such persons as the comptroller may deem necessary.”

 

N.Y.C. Charter § 93(b). The power to take testimony under § 93(b) includes the power to subpoena documents.

NEWS From City Comptroller John Liu

LIU TO DEPT. OF HOMELESS SERVICES: DUMP AGUILA AND GET YOUR ACT TOGETHER

New Audit Highlights Continued Failures of Agency and of Shelter Operator

  
Comptroller John C. Liu called on the Department of Homeless Services (DHS) to discontinue its use of shelter provider Aguila Inc. in light of repeated failures to account for millions of dollars spent and the continued placement of people in shelters that are unsafe or unclean. He also called on City Hall to drop its lawsuit against the Comptroller’s office with regards to proposed contracts with Aguila.

“Despite their claims to the contrary, Aguila’s appalling record has not improved and DHS continues to turn a blind eye. At this point, DHS should just dump Aguila as a shelter operator, and City Hall should direct its resources towards fixing DHS rather than litigating against my office,” Comptroller Liu said. “Continued dysfunction is a grave disservice to the homeless in need as well as communities whose concerns and input have been bypassed.”

A new audit underscores a fraught history with DHS and Aguila. In a November 2011 audit, Liu called on DHS to recoup $1.4 million from Aguila and examine another $9 million in bills to see if taxpayers were entitled to recover more.

Today’s audit found that DHS has recouped only $558,412, and didn’t even investigate more than half of the total $10.4 million identified by the earlier audit as improper or insufficiently supported payments.

Additionally, the audit found the following deficiencies with DHS operations:

·         The agency continued to do business without written agreements, in violation of the City Charter;

·         DHS did not adequately explain how rates the City paid for different shelters were set;

·         DHS did not appropriately follow up after more than 80 percent of units subject to spot inspections failed.

The audit also found that, as of June 2013, Aguila facilities owed the City $605,439 in unpaid water and sewer charges.

In light of the multitude of problems, rather than reining in Aguila, DHS rewarded it instead. DHS payments for Aguila-operated shelters surged from $46.3 million in Fiscal Year 2011 to $57.1 million in Fiscal Year 2013.

The new audit made 18 new recommendations. They include:

·         Periodically review Aguila per diem rates, allocation plans, and budget line items to ensure accuracy, reasonableness, and appropriateness, and ensure items are adequately supported.

·         Further investigate and recoup the balance of funds as identified in the previous audit.

·         Enter into written contracts with Aguila for directly-operated facilities that, at minimum, specify or restrict how funds may be expended.

·         Immediately eliminate the practice of placing clients in facilities with hazardous and unsanitary conditions.

·         Conduct surprise inspections and vary the inspectors.

·         Ensure that all Aguila facilities pay their City fines and water and sewer charges.

Download Letter to City Hall

Background:

November 2011, Liu audit calls on DHS to recoup money from Aguila: https://comptroller.nyc.gov/wp-content/uploads/documents/FK10_130A.pdf

May 2013, Liu proposes vouchers to help homeless families: http://comptroller.nyc.gov/wp-content/uploads/2013/07/20130509_NYC_RentalSubsidyProgram_v12.pdf

May 2013, Liu issues report on how Mayor Bloomberg’s shelter policies are failing communities and the homeless: http://comptroller.nyc.gov/wp-content/uploads/documents/20130509_NYC_ShelterSiteReport_v24_May.pdf

June 2013, the State Supreme Court, Bronx County rules in favor of the Comptroller’s office in a suit challenging the Mayor’s practice of establishing shelters and paying for those services without going through required public procurement processes. Liu statement: http://comptroller.nyc.gov/newsroom/liu-on-westchester-square-shelter-suit/

July 2013, Liu rejects Aguila shelter contracts in the South Bronx and West 95th Street in Manhattan: http://comptroller.nyc.gov/newsroom/liu-rejects-aguila-shelter-contracts/

LIU ISSUES CITY’S COMPREHENSIVE ANNUAL
FINANCIAL REPORT FOR FY 2013

  City Comptroller John C. Liu today released the Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2013. The report, which provides a detailed look at the City’s finances, shows that for the 33rd consecutive year New York City completed its fiscal year with a General Fund surplus, as determined by the Generally Accepted Accounting Principles (GAAP).

“Economic growth improved in Fiscal Year 2013 compared with the previous year despite the strains of Superstorm Sandy,” Comptroller Liu said. “Unemployment edged downward and the City’s workforce saw healthy wage growth for the first time since the financial crisis. But the City must remain vigilant against growing budget gaps, the continuing cost impact of Sandy recovery, and potential risks from the dysfunction in Washington as exemplified by the recent shutdown.”

The CAFR shows the General Fund had revenues and other financial sources in Fiscal Year 2013 totaling $71.029 billion and expenditures and other financing uses of $71.024 billion, resulting in a surplus of $5 million.

It also shows that as of June 2013, $1.7 billion had been spent on the Sandy recovery, and the City continues to incur costs associated with the storm.

Among other important economic findings, the report contains updates on New York City’s finances, including:

·         The City Pension Funds paid benefits totaling $12.0 billion during FY 2013. As of June 30, 2013, the City pension funds had an aggregate value of $137.4 billion, an increase of $15.3 billion from the June 30, 2012 value of $122.1 billion.

·         The Comptroller’s Bureau of Audit issued 84 audits and special reports in FY 2013 identifying approximately $184 million in actual and potential revenues and savings. Reviews of claims filed against the City identified another $15.7 million in cost avoidance.

·         In FY 2013, the City paid $562.4 million in settlements and judgments (tort and non-tort).

·         The City and its blended component units issued $10.15 billion in long-term bonds in FY 2013 to finance the City’s capital needs and refinance outstanding bonds for interest savings. In addition, the New York City Municipal Water Finance Authority issued $2.30 billion in long-term bonds for capital and refinancing purposes. As of June 30, 2013, the City’s outstanding General Obligation debt totaled $41.59 billion, consisting of $33.93 billion in fixed rate bonds and $7.66 billion in variable rate bonds.

·         From June 2012 through June 2013, the City added more than 76,400 private-sector jobs. Although the number of new jobs created was lower than that of the previous 12 months, the gain still represented a solid 2.3 percent increase in the City’s jobs base. Overall, the city’s economy grew by an estimated 1.8 percent in FY 2013, slightly faster than the 1.3 percent recorded in the previous fiscal year.

·         The City’s unemployment rate fell to 8.9 percent in FY 2013 from 9.3 percent the previous year. The average weekly earnings of private-sector workers in New York City increased by 4.9 percent in the fiscal year, twice the national increase. The combination of rising employment and higher earnings produced an estimated 6.3 percent increase in year-over-year income tax withholdings.

The full CAFR report is posted here: http://on.nyc.gov/Hu1DRZ

LIU ON ‘TAXI OF TOMORROW’ RULING

  City Comptroller John C. Liu stated the following after a judge voided the City’s “Taxi of Tomorrow” plan on the grounds that the TLC exceeded its authority when it mandated that all taxis be replaced the Nissan NV200:

 

“City Hall’s ‘Taxi of Tomorrow’ plan, ill-conceived from the very start, should now be scrapped completely in light of the judge’s ruling. New York’s iconic yellow cabs should offer choices for taxi owners and – most importantly – full wheelchair-accessibility. My ‘Taxi for All New Yorkers’ plan would offer both, plus save the City money over time.”

 

Background:

 

In September, Comptroller Liu proposed his “Taxi for All New Yorkers” plan: http://comptroller.nyc.gov/newsroom/liu-unveils-taxi-for-all-new-yorkers/

 

In May 2012, Comptroller Liu called on Mayor Bloomberg to modify the proposed “Taxi of Tomorrow” to make all new taxis wheelchair-accessible: http://comptroller.nyc.gov/newsroom/liu-puts-brakes-on-taxi-of-tomorrow-until-vehicles-are-wheelchair-accessible/

 

In December 2012, Liu rejected the “Taxi of Tomorrow” contract on the grounds that it violated the Americans with Disabilities Act and would expose the City to costly lawsuits: http://comptroller.nyc.gov/newsroom/liu-grounds-taxi-of-tomorrow/

 

In April 2013, Liu testified before the City Council in favor of Intro 433-A, a bill that would mandate that the entire City taxi fleet be wheelchair-accessible: http://comptroller.nyc.gov/newsroom/liu-testimony-on-city-council-taxi-bill/

LIU ON CALIFORNIA’S MINIMUM WAGE INCREASE

,

   City Comptroller John C. Liu stated the following on the signing of AB 10, which will increase California’s minimum wage to $10.00 per hour:

“We applaud California’s leaders for reaching an agreement to raise their state’s minimum wage to $10.00 per hour. As pay continues to lag behind the cost of living and corporate profits, increases in state and local minimum wages are an ever more important way to help struggling families make ends meet. In New York City — the nation’s most expensive major city — we continue to call for a minimum wage of $11.50 per hour, which would lift roughly 200,000 New Yorkers out of poverty and put $2.4 billion into the pockets of workers who need it most. We look forward to continuing to work with our colleagues in Albany to realize these changes in the weeks and months to come.”

Background

Liu’s minimum wage report – July 24, 2013: http://comptroller.nyc.gov/newsroom/liu-state-minimum-wage-hike-could-harm-low-wage-workers-in-new-york-city/

 

Liu statement on New York State minimum wage legislation – March 19, 2013: http://comptroller.nyc.gov/press/2013_releases/pr13-03-042.shtm

 

Liu applauds President Obama’s federal minimum wage proposal – February 13, 2013: http://www.comptroller.nyc.gov/press/2013_releases/pr13-02-030.shtm

 

Liu applauds Governor Cuomo’s minimum wage proposal – January 9, 2013: http://www.comptroller.nyc.gov/press/2013_releases/pr13-01-005.shtm

 

Liu proposes an $11.50 per hour minimum wage during his State of the City address – December 20, 2012: http://www.youtube.com/watch?v=NeZIUGDaSzA&feature=youtu.be

 

Liu’s income inequality in NYC report – May 21, 2012: http://comptroller.nyc.gov/newsroom/liu-report-nycs-income-gap-twice-the-national-average/

 

LIU ON JUDGE’S REJECTION OF STAY OF OVERHAUL OF STOP AND FRISK

  City Comptroller John C. Liu made the following statement in response to U.S. District Judge Shira Scheindlin’s ruling on Tuesday that New York City cannot delay the court-ordered overhaul of its police department's unconstitutional stop-and-frisk policy:

 

“Judge Shira Scheindlin is right not to let City Hall delay the overhaul of the NYPD’s unconstitutional stop and frisk policy.  We look forward to the day when this harassment of minorities is abolished entirely.”

Background

Liu on stop-and-frisk appeal

http://comptroller.nyc.gov/newsroom/liu-on-stop-and-frisk-appeal/

Liu on stop-and-frisk ruling

http://comptroller.nyc.gov/newsroom/liu-on-stop-and-frisk-ruling/

Liu: purge of stop-and-frisk databank is step in right direction

http://comptroller.nyc.gov/newsroom/liu-purge-of-stop-and-frisk-databank-is-step-in-right-direction/

LIU UNVEILS ‘TAXI FOR ALL NEW YORKERS’

  Calls on Mayor Bloomberg to Abandon Failed ‘Taxi of Tomorrow’

  City Comptroller John C. Liu today unveiled “Taxis for All New Yorkers” and called on Mayor Bloomberg to abandon his failed “Taxi of Tomorrow,” which the Comptroller’s office rejected for a second time earlier this week when its contract was resubmitted for registration.

“‘Taxis for All New Yorkers’ offers choices for medallion owners as well as full wheelchair-accessibility, unlike the Mayor’s failed plan, which provides neither,” Comptroller Liu said. “The introduction of a new taxi fleet should be an opportunity to create a better experience for all, and that means listening to taxi owners and drivers – and protecting the civil rights of disabled New Yorkers.”

Liu’s “Taxis for All New Yorkers” allows medallion owners to purchase any taxicab that is fully wheelchair-accessible, provides pre-paid debit cards for Access-A-Ride customers to use with taxi and livery cabs in all five boroughs, and incentivizes drivers and owners to use accessible vehicles.

Taxis for All New Yorkers

The plan increases competition by allowing multiple firms, including Nissan, to offer purpose-built wheelchair-accessible taxicabs, or modified accessible taxis with intact factory warranties. Purchase grants, financed by medallion revenues, would be available for five years to encourage early adopters to buy accessible vehicles.

The plan would expand an MTA pilot program that allows Access-A-Ride users to use pre-paid debit cards for regularly scheduled pick-ups, saving the City an average of $45 per ride over traditional dispatch systems. Given Access-A-Ride’s huge costs – nearly $700 million by 2017 – potential savings are substantial.

During the transition, the plan would provide incentive fees for all drivers and owners who use accessible vehicles – as opposed to the current method in which only taxis participating in the City’s dispatch systems for disabled passengers are eligible for incentives and are severely penalized for delays. This would streamline and standardize the incentives.

The plan also calls for the creation of a committee to determine if additional incentives are needed for the transition to a fully accessible fleet.

The Mayor’s “Taxi of Tomorrow” plan, by contrast, limits competition and choices. It mandates that medallion owners purchase the Nissan NV200. Taxi owners have filed suit, saying the plan forces them to buy a vehicle they don’t want. Already, a court has ruled that the administration must also provide a hybrid option.

Further, advocates for the disabled charge the new taxi fleet should be wheelchair-accessible. With the Nissan NV200, medallion owners interested in a wheelchair-accessible version would have to pay an extra $15,000 for extensive retrofitting – a steep disincentive. By contrast, “Taxis for All New Yorkers” would offer a grant of $15,000 per vehicle for up to five years, which will incentivize early adoption of vehicles and promote accessibility.

Background:

In May 2012, Comptroller Liu called on Mayor Bloomberg to modify the proposed “Taxi of Tomorrow” to make all new taxis wheelchair-accessible:

http://comptroller.nyc.gov/newsroom/liu-puts-brakes-on-taxi-of-tomorrow-until-vehicles-are-wheelchair-accessible/

In December 2012, Liu rejected the “Taxi of Tomorrow” contract on the grounds that it violated the Americans with Disabilities Act and would expose the City to costly lawsuits:

http://comptroller.nyc.gov/newsroom/liu-grounds-taxi-of-tomorrow/

In April 2013, Liu testified before the City Council in favor of Intro 433-A, a bill that would mandate that the entire City taxi fleet be wheelchair-accessible:

http://comptroller.nyc.gov/newsroom/liu-testimony-on-city-council-taxi-bill/

MEDICAL MARIJUANA WOULD AID 100,000 IN NYC

  Liu Recommends Steps to Help Boost Medical Marijuana Research 

   City Comptroller John C. Liu today estimated that more than 100,000 New York City residents would benefit from legalized medical marijuana and issued a report proposing ways to make New York City a global leader in medical marijuana research. The report recommends seeding a $100 million public-private research fund, establishing City-owned and -operated medical marijuana growing sites, and requiring insurance providers to cover medical marijuana.

“We estimate that more than 100,000 New Yorkers with serious medical conditions would benefit if medical marijuana were legalized — and that gives us 100,000 good reasons to do it,” said Comptroller Liu. “Marijuana’s medical value is well-established, but it is still routinely denied to patients and researchers. It’s time for that to change, and New York City government can play a role in reshaping our understanding of marijuana’s medical uses. We should leverage our City’s tremendous medical, bioscience, and academic resources to lead the way in medical marijuana research in order to make a meaningful impact on suffering for years to come.”

Seeking to quantify the number of New Yorkers who could benefit from such a program, the Comptroller’s office estimated that 105,527 New York City residents suffering from serious ailments could be helped by medical marijuana if it were legalized by the state legislature. The figure is a conservative estimate derived by calculating the medical marijuana patient share of the population in the 14 states with significant-sized medical marijuana programs and extrapolating the rate (1.27%) to New York City’s population. That group would include roughly 88,000 suffering from chronic or severe pain, 15,000 with muscle spasms or multiple sclerosis, and 11,000 with severe nausea. Other qualifying conditions would include cancer, seizures, wasting syndrome, HIV/AIDS, and glaucoma.

Insurance Coverage for Medical Marijuana

Comptroller Liu recommended that the state Legislature require insurance companies to cover medical marijuana, a provision lacking in the bill that Albany considered in June 2013. (That bill passed the New York State Assembly but died in the Senate.) Medical marijuana is typically not covered by insurers, making it available only to patients who can afford to purchase it out-of-pocket.

The report also finds that New York City is equipped to become a worldwide center for marijuana-related research because of the city’s robust medical, scientific, and academic resources. According to the City’s Economic Development Corporation, New York City is home to the largest bioscience workforce in the country, nine major academic medical centers, the world’s largest concentration of academic institutions, and a number of major pharmaceutical companies. In order to capitalize on those assets, the report recommends establishing a Medical Cannabis Research Fund and financing City-owned and -operated medical marijuana greenhouses.

City-Owned and -Operated Greenhouses

To ensure an adequate supply of high-quality marijuana for medical and research purposes, the report proposes that the City provide the New York City Health and Hospitals Corporation with the necessary capital funds to construct one or more medical greenhouses on its grounds or inside its facilities. Given HHC’s existing research affiliations and its own 420,000 member “MetroPlus” health plan, it is uniquely positioned to play a leadership role in medical marijuana research.

New York City Medical Cannabis Research Fund

Under the proposal, the City would provide $5 million in start-up funds and match up to $50 million of private donations on a dollar-for-dollar basis. The ultimate goal would be to finance up to $100 million of medical marijuana research over the next five years by partnering with private-sector companies, academic institutions, and hospitals. Areas of research could include:

·         Use of medical cannabis extracts as cancer chemotherapeutic agents in glioblastoma other brain tumors, as well as other cancers which have shown promise in preliminary research  

·         Use of medical cannabis extracts in pediatric and adult intractable epilepsy

·         Palliation and quality of life promotion in chronic disease

·         Pain management

·         Post-traumatic stress disorder

·         Disease modification in multiple sclerosis and other neurological disorders