Breaking news from NYC Comptroller William Thompson, who visited Latino Pastoral Action Center on Friday as part of the LPAC Leadership Series: “I’m not announcing today, but I am running [for NYC mayor].”
Here are my notes and pictures from the event.
"Economics and Communities of Color"
Controller William C. Thompson, Jr.
March 28, 2008
Introduced Carlos Ramos, Special Assistant & Eduardo Castell, Deputy Controller (and campaign manager)
What does the Comptroller do?
+ Bio: first elected office. Previously president of the Board of Education, deputy Brooklyn Borough President
+ Campaigned to be a "fiscal activist controller." Looking at the office differently. Fight for fiscal responsibility on behalf of the people. Expanded the boundaries of the office. Not just dollars and cents
+ Direct responsible for: oversight of budget spending (expense budget is $60 billion). Authority to audit agencies and non-profits. Oversees public works & construction contracts. Sets and enforces "prevailing wage" from city contractors. Controller must approve all settlements ($500 million / year). Oversees (in tandem with Mayor) city bonds. CEO for pension funds; $110B in assets.
+ Invested pension funds in low income housing. Also pioneered housing funds for teachers
Money in our neighborhoods
+ Invest in education
+ Gentrification
+ Access to capital to start, own, and grow businesses. How do we create sustainable institutions that grow communities?
+ 92% of NYC businesses employ less than 100 people
+ Wall Street pays 35% of the salaries in NYC, but in good and bad economies, small businesses remain.
What do we need to do moving forward?
+ Big believer in "faith-based community development." Increase capacity so owners can monetize assets and in the process grow neighborhood economies. Land is a scarce commodity in NYC in all five boroughs.
+ Provide access to capital through "Banking Development Districts." Use city deposits that normally sit in commercial banks in local bank branches to spur banking (create branches) in underserved communities. Tradeoff: banks give small business loans and mortgages to community. $160 million currently on deposit.
+ Check cashers: people shouldn't have to pay to get their own money. Need more bank branches in communities of color. In Manhattan, multiple branches on every block. In Bronx, one branch for more than 11,000 people.
+ Need for financial literacy. If you don't have credit, you don't have anything. Bad credit = denial of capital.
+ Greater micro-lending
+ Foreclosures. 1 year ago, they were concentrated in communities of color. Huge impact on Hispanic and black families: exploitation of immigrants; refinancing schemes. Last year, controller launched "Save our Homes" month and foreclosure helpline. So far more than 3000 active cases.
+ Initiated program to manage greater percentage of pension funds by emerging minority and female managers. Create opportunity for small businesses to do work with the city. NYC does 100s of millions each year in business. Controller registers minority firms and is trying to focus contracts there.
+ We need to build more affordable housing, and break large contracts into small contracts for small and minority businesses. Create access to opportunity.
+ 200K "disconnected youth" – teens out of school and without jobs. Yet there's a building boom in the city. Electricians start at $20/hour. Can't find plumbers. The city is importing skilled labor from Alabama and elsewhere. We need to resurrect technical education for kids that aren't interested in college.
+ NYC provides tax breaks to investment banks to build new buildings and/or stay in the city. How is that possible when many of the same firms subsidize poverty among kitchen and maintenance staff. Proposed conditional tax breaks that mandate "living wage jobs" in order to receive tax break.
Q & A
Q: Many community businesses are owned by outsiders. Dollar doesn't circulate in our neighborhoods as much as elsewhere. How do we overcome the stronghold?
A: Increase access to capital. Business development (planning, etc). Pool resources better. Faith-based institutions. Economic power comes when congregations, etc pool enough resources to build a bank locally.
Q (Wendy Calderon Payne, UYAI): Received a federal grant; took more than 6 months before the money actually arrived. Received a city grant; eight months later the money still hasn't arrived. No credit line or building equity to stop the bleeding while they wait.
A: Disbursements shouldn't take so long. Controller is trying to hold agencies accountable to public ridicule (see website). But progress is slow.
Q (Ingrid Jones, Esq.): Partner at a new 100% woman and black owned law firm. Also development director at Harlem church. 1 – How much outside counsel does NYC hire? 2 – Lots of development in Harlem, but too costly for local residents and services not growing accordingly (supermarkets, schools, shopping, etc).
A: Need more "smart growth," coordinated growth. Also, has some influence in hiring outside counsel.
Q (Henry Nixon, LPAC): How do we recruit people of influence and power to become mentors to model at-risk kids that success is attainable?
A: We would be happy to work with you there. Too many kids are limited by what they dream, because the dreams they see are bling.
