News Summary
Drew Warshaw is entering the Democratic primary race, challenging incumbent state Comptroller Tom DiNapoli. His campaign emphasizes tackling New York’s affordability crisis and seeks to redirect pension fund investments into affordable housing. Warshaw argues that DiNapoli’s management of the state’s retirement fund leaves much to be desired, particularly in addressing the needs of New Yorkers facing financial hardships. As the primary approaches, Warshaw is positioning himself as a reform advocate against DiNapoli’s long-standing tenure.
New York—Drew Warshaw is gearing up for a competitive Democratic primary in 2026 as he challenges incumbent state Comptroller Tom DiNapoli. Warshaw’s campaign focuses on addressing the affordability crisis in New York and improving the management of the state’s sizable retirement fund, which totals $284 billion. His proposals include a bold plan to redirect a portion of the pension fund towards affordable housing projects to meet urgent needs while potentially benefiting the pension fund’s returns.
Warshaw has generated buzz with a symbolic oversized check for $21 million, relating to the high fees that New York’s retirement fund pays to money managers. He argues that DiNapoli has not done enough to tackle the affordability issues facing many New Yorkers, prompting his push for fresh leadership in the office.
Currently, DiNapoli is pursuing a fifth term as comptroller, emphasizing stability and consistent returns. His office has reported a 7.74% average annual return on the pension fund over the past decade, a figure that exceeds the national average of 7.4% for similar plans. However, this has been met with criticism from Warshaw, who claims that these results are underwhelming compared to the S&P 500’s average return of 10.7% in the same period.
One of Warshaw’s central proposals involves allocating up to $10 billion from the pension fund toward affordable housing initiatives. He contends that investing in affordable housing not only addresses pressing state needs but can also yield substantial returns for the pension fund. At present, however, only 14% of the fund’s investments are in real estate, with an unspecified amount allocated to affordable housing, raising questions about its potential growth in this sector.
Criticism of Current Management
Warshaw is critical of the fact that DiNapoli’s administration has increased the share of the pension fund invested in private equity and real estate since he took office in 2007, while also incurring significant fees — approximately $1.1 billion in the 2024 fiscal year. This raises concerns about the long-term sustainability of the fund and the burdens it places on taxpayers. Warshaw asserts that DiNapoli has consistently underperformed against key benchmarks and maintained that the long-term target return rate of 5.9% set by the current administration is financially disadvantageous.
Addressing Unclaimed Funds
In addition to pension fund reforms, Warshaw seeks to tackle the issue of unclaimed funds in New York, which currently exceed $20 billion. He advocates for direct repayments to individuals owed money from these unclaimed assets. While DiNapoli’s office has refunded approximately $7 billion to account holders, Warshaw points out that a significant portion of unclaimed funds has been redirected to support state budgets instead of addressing the needs of individual claimants.
The new legislation slated to allow payments from the unclaimed funds pot will start in 2025, but current pilot projects limit checks to $250, a figure Warshaw argues is insufficient. By 2025, the comptroller’s office has projected sending around 70,000 refund checks totaling about $5 million, with a clearance rate of 40% of those claimed. However, DiNapoli’s administration faces logistical challenges in efficiently returning the funds due to outdated tracking systems and inadequate address verification mechanisms, impacting the overall effectiveness of their efforts.
Political Landscape
As Warshaw begins to mobilize support in his campaign against DiNapoli, he is positioning himself as a challenger ready to bring transformative strategies to the role of state comptroller. His proposals on affordability, housing, and the handling of unclaimed funds seek to address systemic issues while critiquing the current administration’s management practices. In response, DiNapoli’s team has labeled Warshaw’s ideas as “fantastical” and raised concerns about their feasibility, suggesting that significant changes might lack a proper structural framework.
As the Democratic primary approaches, the political landscape in New York is set for an engaging showdown over fiscal management and the direction of state funds in the years ahead.
Deeper Dive: News & Info About This Topic
- Gothamist: Battle of the Bean Counters
- Wikipedia: New York State Comptroller
- NYS Focus: Warshaw vs DiNapoli on Unclaimed Funds
- Google Search: New York State unclaimed funds
- Spectrum News: State Aid Boost Report
- Encyclopedia Britannica: New York Political System
- Times Union: NY Overtime Spending
- Google Scholar: New York Comptroller elections
- CBS News: New York Unclaimed Funds Workshop
- Google News: New York state politics
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
