New York Comptroller Tom DiNapoli Discusses Challenges and Opportunities of Fiscal Oversight

New York State Comptroller Thomas P. DiNapoli spoke candidly about his office's challenges in maintaining fiscal accountability and transparency within state agencies and programs.

"The State Comptroller's Office plays a very important role in promoting transparency and accountability," DiNapoli began, highlighting the challenges faced by his office. However, he was quick to underline the limitations: "We're not a policy or law-making office. That's the purview of the legislature and the governor."

DiNapoli described how the comptroller's office can recommend improvements but cannot force compliance: "We can only make a recommendation. We can't compel a state agency or a school district to implement what we recommend." The Comptroller’s office is tasked with independent oversight of state finances, processing state payments, contracts, grants, and running the state payroll.

Of notable importance is the state pension fund. DiNapoli noted, "We have 1.1 million New Yorkers who are members of that plan. We do both the investment of the pension fund dollars to pay for the benefits as well as administering the benefits."

According to DiNapoli, the audit process involves a combination of regional oversight, local developments, and tips from the public. "Our audit teams come up with an audit plan that they determine," he said. It's not uncommon for local governments to invite scrutiny: "You'd be surprised how often we audit because we've been asked to do it by a local government."

The discussion turned to what some see as the most significant asset the office manages, the state pension fund. "It's a big responsibility," DiNapoli acknowledged. He outlined a conservative approach with a diversified portfolio that aims to manage fluctuations in the market. Despite recent setbacks, DiNapoli was confident: "We're probably right now over 90% funded, which is a very strong number in terms of keeping the plan well funded."

Looking at the state's financial future, DiNapoli described his office as more of a monitor than a regulator. With significant budget gaps projected, he warned of tough decisions on spending and revenue: "We're the ones that shine the spotlight.”

When asked about the restoration of pre-audit authority restricted during covid by the legislature, DiNapoli responded with measured satisfaction, tempered by the reality that not all powers had been restored: "It's not 100% where it should be." However, he believes his office has used the restored authority responsibly, working with agencies to create contracts that offer the best value to taxpayers.

New York State Comptroller Thomas P. DiNapoli Twitter @TomDiNapoli

DiNapoli identified some of the most pressing financial issues for New York. For example, he highlighted the unbudgeted expenses related to illegal migration: "The state has come up with some money to help New York City. It doesn't cover all the expenses. And, you know, you're talking, really billions of dollars impacting the city, expecting the state to come up with more money." He stated, "The economic scenario of the state has seen substantial shifts in the last year, and we face serious economic and financial threats that could destabilize the state's fiscal structure." He lauded the Governor and the Legislature for wisely bolstering New York's reserve funds, yet cautioned that it could not be viewed as a substitute for fiscal responsibility or used to fill budget deficits regularly. He underscored the absence of an immediate solution, suggesting instead a proactive strategy by state leaders to balance recurring revenue with routine spending. This could uphold the state's economic edge and prevent reductions to essential programs that New Yorkers depend on.

As we concluded our discussion, DiNapoli reflected on his tenure, saying, "Since my appointment in 2007 and throughout four election cycles, the people of New York State have continuously renewed my contract. It is my hope they will continue to support me in the future. This career path has been fulfilling, and I'm tremendously honored and humbled to have taken it."

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