Friday, July 29, 2011

LIU ISSUES DEBT CEILING ADVISORY
Memo to Mayor and City Council Outlines Possible Effects on NYC’s Finances,
Puts Forth Contingency Plans if Debt Talks Fail

City Comptroller John C. Liu today issued a Debt Ceiling Advisory outlining potential effects on the City’s finances, and offered recommendations to help offset the potential risks, if a deal is not struck in Washington to raise the nation’s debt limit.  

“As inconceivable as it seems, Washington appears stuck in a quagmire just days from the hard deadline for a debt ceiling resolution. The irresponsibility and ineptitude being demonstrated in our nation’s capital could cause profound damage to our City, first and foremost with more than one million seniors and disabled New Yorkers being cut off from their primary source of income,” Comptroller Liu said.   “After weeks of monitoring the situation, my office issued an advisory outlining the financial threat to our City and calling for an immediate mobilization of our resources to evaluate and shore up our preparedness.”

We have been closely monitoring this situation and as a result, my office has outlined actual consequences that the inaction in Washington could have on our City’s finances, programs and benefits,” Comptroller Liu said. “Due to the irresponsibility in our nation’s capital, New York City’s seniors could feel the brunt of the pain if a deal is not reached, putting their much relied upon benefits in jeopardy.  New York City should view this as a financial threat, and I am calling for an immediate mobilization of our resources to discuss our preparedness.”

Liu has recommended the creation of an emergency Debt Ceiling Task Force, comprised of representatives of the Comptroller’s Office, Mayor’s Office of Management and Budget, New York City Council, and other relevant parties to begin meeting immediately to discuss the City’s options.

In addition, Comptroller Liu has put forth recommendations for discussion in the event that an agreement in Washington is not reached.

Since a failure to extend the debt ceiling could potentially result in a stoppage of federal payments, including Social Security benefits to 1.1 million New York City seniors and disabled persons, Liu is calling for the Task Force to explore any and all possibilities for the City to temporarily help finance these payments to ensure that the City’s most vulnerable are cared for. 

Comptroller Liu has also recommended that the City work together with banking institutions to establish mechanisms to open credit to seniors in the event that an agreement is not reached and has requested an analysis of how City-funded service providers to the elderly and disabled could receive additional support if their client load increases.

A review of the City’s finances has highlighted five impact areas that may be affected by the lack of a deal in Washington. Each area was assigned delegation of “HIGH, MEDIUM or LOW” depending on the potential impact.

IMPACT ON NYC SOCIAL SECURITY BENEFICIARIES – HIGH

Liu said that New Yorkers who will feel the brunt of the inaction in Washington are the City’s seniors, many of whom rely solely on Social Security as their main source of income. The lack of an agreement on the debt ceiling could result in more than 1 million seniors and disabled persons being denied their payments each month, totaling $1.1 billion.  See the chart below

NYC Social Security Recipient Population Profile, December 2010

# Beneficiaries              
Total Benefits              
Per Recipient                   



Monthly Benefit              
Bronx
176,450                       
$169,942,000               
 $963                                 
Brooklyn
301,475                       
$298,082,000               
  $989
Manhattan
235,805                       
$276,498,000               
$1,173                               
Queens
300,695                       
$324,533,000               
$1,079                               
Staten Island
81,015                       
$95,707,000               
$1,181                               
NYC Total
1,095,440                       
$1,164,762,000            
$1,063                               
Source:  OASDI Beneficiaries by State and County, 2010, U.S. Social Security Administration.
*Note: This estimate shows a deviation of 20 recipients greater than reflected in NYC Aggregate Profile

IMPACT ON MEDICAID, MEDICARE AND PUBLIC ASSISTANCE PROGRAMS – MEDIUM

Several major social service programs in New York City could be at risk if the debt ceiling is not increased. Federal Medicaid support totals more than $1 billion monthly.  A delay could affect the state’s ability to pay Medicaid service providers on a timely basis. This could also affect health care providers.

IMPACT ON NYC CASH POSITION – LOW

Because of the City’s financial strength, our cash position is such that it will be able to sustain the delay of federal and state aid receipts. The City currently has $6.9 billion in cash on hand and is expected to continue to meet its normal obligations, including payroll, vendor payments and interest payments on outstanding debt. 

IMPACT ON MUNICIPAL BOND MARKETS – MEDIUM

The City has successfully managed its capital borrowing through prior periods of market turmoil, such as the fallout from the Lehman Brothers bankruptcy in 2008. However, higher interest rates would hit City taxpayers directly and for an extended period.  The Comptroller’s Office is monitoring the capital markets very closely to minimize any impacts on the City’s capital borrowing from the current debt ceiling debate. 

IMPACT ON CITY’S PENSION FUNDS – MEDIUM

It is assumed that any failure to raise the debt ceiling would have an impact on the financial markets.  With over $7 billion of short term securities, the pension funds are well equipped to make their near term pension payments to beneficiaries regardless of the near term stock and bond market volatilities. As long-term investors, while the markets will readjust in the short term, the asset allocations may need to be reviewed for the longer term implications. 

A full copy of Comptroller Liu’s advisory is available at http://comptroller.nyc.gov/press/pdfs/debt_advisory.pdf


URBAN ENTREPRENEURSHIP FORUM


BOEDC Welcomes the
New York City
URBAN ENTREPRENEURSHIP FORUM

Monday, August 1, 2011 - 9:00 a.m. to 5 p.m.
Registration 8 a.m. to 9 a.m.

Monroe College
King Hall (Bronx Campus)
2501 Jerome Avenue - The Bronx, NY 10468

Co-hosted by:
The White House Business Council
The White House Domestic Policy Council
 The Office of the Honorable Michael Bloomberg - Mayor, New York City,
 Monroe College
The Fund for Public Advocacy
Office of Russell Simmons
Minority Business Development Agency
Small Business Administration
100 Urban Entrepreneurs
Operation HOPE & multiple federal agencies

The Bronx Overall Economic Development Corporation's President
Marlene Cintron will be featured as a panelist in the
 "Investing in Urban Entrepreneurs: Creating Funding/Financing Urban Entrepreneurs" workshop  

Additionally, Bronx businesses, Astoria Coffee and Cappuccino Machine Inc. and Melita Corp., recipients of the SBA 504 Loan Program will provide conference participants with their products.  

  This invitation is non-transferable. The event is free.
   Pre-event registration is required and space is limited. 

Please RSVP at:
   




Thursday, July 28, 2011

Assemblywoman Rivera celebrates National Night out with Local Precincts

On Tuesday, August 2nd Assemblywoman Naomi Rivera will celebrate the 28th Annual National Night Out. In collaboration with the 49th and 52nd police precincts, this event is sure to promote the communal spirit of the Bronx through enjoyable programming as well as to encourage better relationships amongst residents and law enforcement officials in the area.
National Night Out 2011 will take place at two locations within the 80th Assembly District. The 52nd Precinct will hold their National Night Out at Williamsbridge Oval Park (206th and Bainbridge Ave) and the 49th Precinct’s National Night Out will be held on the Pelham Parkway Lawn located at Pelham Parkway North (Between Wallace Ave. and Barnes Ave). The event is anticipated to run from 6:00 to 9:00 pm.
National Night out was designed to heighten drug and crime prevention awareness, increase support and involvement towards anticrime programs, build neighborhood spirit and police-community partnerships, and send a message to criminals letting them know that neighborhoods are organized and fighting back. This year’s event is sure to carry on the tradition.
There are no financial obligations for residents who wish to participate in National Night Out. This event is family oriented and there will be food and refreshments for all to enjoy. National Night Out events are successful every year and they continue to transform communities into better places to live. This event is sure to be a great way to kick off the Assemblywoman’s Summer Event Series of 2011.



MISSING WOMAN

MISSING SINCE 7/8/11





YVONNE PINNOCK
60 Year Old Female
Last Seen at 845 E. 224th Street, Bronx, NY

5'2" 104 1bs
Has serious medical conditions
Anyone who has seen this woman should contact NYPD












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Statement by Senator Jeff Klein on SLA investigation into Caffeinated Four Loko sales

Local Downtown Manhattan Newspaper finds sales continue

Statement from Senator Jeffrey D. Klein, (D-Bronx/ Westchester), Chairman of the Senate Standing Committee on Alcoholism & Drug Abuse:

News of a State Liquor Authority probe regarding on-going sales of caffeinated Four Loko proves that a simple gentleman's agreement is not enough to keep this dangerous product off store shelves and out of New York State. My legislation, (S.3889A), to outright ban caffeinated alcoholic beverages passed the Senate this session. The Assembly needs to do its part to protect New Yorkers from this product, which the FDA deemed 'unsafe,' and pass my bill as soon as possible.”  

The article from "The Local East Village" can be found here .



 

COMPTROLLER LIU: NYC BANKING COMMISSION MISSES OPPORTUNITY TO HELP NEW YORKERS FACING FORECLOSURE
Rubber-Stamps Approvals for Depositories, 
Liu to Explore Legislation and Other Means to Spur Change at Mayoral-Controlled Commission

  City Comptroller John C. Liu stated the following in response to questions about today’s New York City Banking Commission vote to designate 35 financial institutions as depository banks:

“Today the New York City Banking Commission rubber-stamped a motion to assign these banks the privilege to serve as depositories without first considering what, if any, role they are playing in the current foreclosure crisis. This obscure but powerful commission had the opportunity to engage financial institutions in a dialogue on how keep New Yorkers in their homes and they blew it by giving these banks a free pass.

“Most New Yorkers have never heard of the Banking Commission, which is controlled by City Hall and has been given broad authority to regulate financial institutions holding City deposits. As a result of today’s
development, my office will be working with the City Council to enact legislation aimed at holding banks designated as depositories accountable to New York City homeowners and taxpayers. In addition, my staff will be analyzing ways to restructure the Commission in order to better serve New Yorkers.”

Background:
Banks are designated as depositories every two years. The Banking Commission meets quarterly, is staffed by the Department of Finance and consists of one representative from the Mayor, the Finance Commissioner and Comptroller Liu.

Comptroller Liu’s representative on the Banking Commission, Deputy Comptroller Alan van Capelle, sent a letter to his fellow Commission members in March outlining specific questions to be added to the designation forms required to be filled out by the banks. Although the proposal was in full accordance with Title 22, Section 1-03c(4) of the Rules of the City of New York which gives the Banking Commission authorization to request information regarding foreclosures and other banking activities, the Mayoral-controlled Commission voted to not support the measure.

Comptroller Liu has made foreclosure a key issue since taking office, both for the devastating results to New Yorkers and because of lingering effects this crisis has had on the City and national economies. As custodian of the City’s Pension Funds, he has worked with the Pension Boards of Trustees to put forth shareholder resolutions calling on banks to enact investigations into their foreclosure practices and put controls in place to guard against any future foreclosure crisis. In addition, Comptroller Liu’s Office has assisted hundreds of New Yorkers facing foreclosure through its Community Action Center.

Borough President Diaz Speaks at Rally to Oppose Post Office Closures

 

On Wednesday, July 27, Bronx Borough President Ruben Diaz Jr. joined with members of the New York Metro Area Postal Union, APWU, AFL-CIO, on the steps of the Bronx GPO on East 149th Street and the Grand Concourse to protest the proposed closure of 17 borough Post Offices and the removal of processing services from the Bronx GPO.

Tuesday, July 26, 2011

STATEMENT FROM BOROUGH PRESIDENT DIAZ
RE: Appointment of Jesse Mojica as Executive Director
For Family and Community Engagement at the Department of Education

 
“For the past two years, Jesse Mojica has served my administration as Director of Education & Youth Services with distinction, and my entire staff and I are sorry to see him go. Jesse has been a tireless advocate for the educational well-being of the Bronx and its children, first as a parent, then as this office’s appointment to the Panel for Educational Policy and finally as our education director, a position through which he has distinguished himself as one of the foremost education policy experts in the City.

“His passion will be missed, and our loss is the Department of Education’s, and in fact the entire City’s, considerable gain. I join my entire staff and the people of the Bronx in wishing him the best of luck in this new endeavor,” said Bronx Borough President Ruben Diaz Jr.
 -------------------------------------------------------------------------------------
As the writer of this blog and a former member of the Chancellor's Parent Advisory Council I must add the following-

I can only say that having been in the mix of it when Chancellor Joel Klein came in nine years ago, things at the DOE (Tweed) went from bad to worse, and the revolving door policy began. I knew many parents who were bought off by receiving positions from parent coordinator, to the couple of parents who have had the position Mr. Mojica has been appointed to. In the end most of those parent leaders are now gone from the education system, just bought off with a short lived position. The smart ones like Joel Klein and Eva Moskowitz have gone on to where the real money is, that being charter schools. 
I was offered a position of Parent Team Leader at the Region level, which I refused so that I would not sell out and become part of the problem. As you see today I continue to be an advocate for the city's public school children, and can only wish that Mr. Mojica has a longer tenure in the position than those before him. I know exactly what is in store for him.