WEBVTT - NYC Power Broker to Help Guide Mamdani Transition

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>You're listening to Bloomberg Business Week with Carol Masser and

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<v Speaker 2>tim Stenoveek on Bloomberg Radio.

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<v Speaker 3>Now, many including those that are wealthy, are concerned about

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<v Speaker 3>some of the priorities of incoming New York City mayor.

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<v Speaker 3>Mumdani now weighing on this was one billionaire who does

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<v Speaker 3>not call New York City home. We're talking about Citadel

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<v Speaker 3>founder Ken Griffin. He talked about the city yesterday at

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<v Speaker 3>a conference in Paris.

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<v Speaker 2>I think that New York City is a red flag

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<v Speaker 2>because people put aside good sense and common sense to

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<v Speaker 2>luck somebody who is incredibly charismatic, who ran a really

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<v Speaker 2>powerful campaign on social media, but who ultimately doesn't have

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<v Speaker 2>the ability to deliver on the promises that he set forth.

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<v Speaker 2>New York took a big set back during the Deblasio days,

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<v Speaker 2>and I hope that Mondamie starts to think about how

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<v Speaker 2>to pivot to a more thoughtful set of policies that

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<v Speaker 2>will allow New York City to maintain its position. Not

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<v Speaker 2>only is one of the greatest cities in America, but

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<v Speaker 2>one of the greatest cities in the world.

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<v Speaker 3>And that, of course was Citadel founder Ken Griffin there

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<v Speaker 3>with Danny Berger of Bloomberg News. We want to get

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<v Speaker 3>into our guest, Kathy Wilde. She is president and CEO

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<v Speaker 3>outgoing president and CEO of the Partnership for New York City,

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<v Speaker 3>which represents much of the city's corporate leadership. So we're

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<v Speaker 3>talking about real estate developers, private equity firms, banks, many,

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<v Speaker 3>many companies. Bloomberg LP, by the way, is a member

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<v Speaker 3>of the Partnership for New York City. She's also the

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<v Speaker 3>part of New York City Mayor Elect Zoroon Mum Donnie's

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<v Speaker 3>transition team, and we have a lot of questions to

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<v Speaker 3>ask her. Also with us is of course Bloomberg News

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<v Speaker 3>senior reporter Miles Mine Miller, all of us here in studio.

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<v Speaker 3>I told you as you sat down that we have

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<v Speaker 3>about an hour of question So we're going to start

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<v Speaker 3>and Kep, we'll talk fest, we will talk fast. Why

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<v Speaker 3>did you want to be a part of the transition

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<v Speaker 3>team for the Mayor elect of New York City.

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<v Speaker 4>Well, I think to the point that Ken Griffin of

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<v Speaker 4>Citadel just made and he's one of our members as well,

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<v Speaker 4>and is a great corporate citizen of New York. In Miami.

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<v Speaker 2>He has.

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<v Speaker 4>He made the point about the concerns about the high

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<v Speaker 4>expectations that Mayor elect Mom Donnie gave to his voters,

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<v Speaker 4>and he, to his credit, brought out one hundred and

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<v Speaker 4>seventy thousand new voters, mostly young people, in the primary.

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<v Speaker 4>The cutoff age for his voter his voter support was

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<v Speaker 4>forty five. So many of us are beyond that point

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<v Speaker 4>and looking around and saying, oh, dear, does he have

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<v Speaker 4>the seasoning to be able to do this? And I

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<v Speaker 4>think that he's got the energy and the intelligence, and

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<v Speaker 4>it's up to all of us who have a little

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<v Speaker 4>more seasoning and to be helpful. And so that's why

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<v Speaker 4>I joined the transition team and was happy to do that,

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<v Speaker 4>and then working on the economic development workforce activities there,

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<v Speaker 4>But in general, I think working with him to capture

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<v Speaker 4>the enthusiasm and the energy. We came out of the

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<v Speaker 4>pandemic very negative and we lost a million jobs, and

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<v Speaker 4>then concerns about the cuts from the federal government on

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<v Speaker 4>entitlement programs, whether it's Medicaid and health insurance, that there's

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<v Speaker 4>the fight going on now. This casts a real pall

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<v Speaker 4>over New York City, which is very dependent on those funds.

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<v Speaker 4>So I think that what he's brought is a positive

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<v Speaker 4>energy and we ought to capitalize on that, and hopefully

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<v Speaker 4>he'll be the best marketer this city has ever had.

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<v Speaker 1>Your role on the transition team, does it turn into

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<v Speaker 1>a full time job in the Mamdani administration.

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<v Speaker 4>I am definitely not at my age looking for a

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<v Speaker 4>full time job. I'm trying to get away from.

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<v Speaker 2>A full time because you're outgoing as president of the Partnership.

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<v Speaker 4>I am outgoing and I do not plan to take

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<v Speaker 4>another job. But I do plan to help the new

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<v Speaker 4>mayor if he wants it.

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<v Speaker 1>So beyond the transition period.

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<v Speaker 4>Would as an advisor, well, I don't know in what capacity.

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<v Speaker 4>As I say i'm there, I'm certainly going to help

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<v Speaker 4>Governor Hokeel deal with her challenges. Where I've worked closely

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<v Speaker 4>with her, She's done a great job, and I think

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<v Speaker 4>we're counting on her to continue to manage New York's

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<v Speaker 4>relationship with Washington and the relationship between the state and

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<v Speaker 4>the city, which.

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<v Speaker 5>Is very important.

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<v Speaker 4>Our affordability problems will not get solved by the city alone.

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<v Speaker 4>This is going to take federal, state, city cooperation, and

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<v Speaker 4>so I think all of us who are committed to

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<v Speaker 4>New York City in the future. We have to be

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<v Speaker 4>thinking of all three levels of government and how we

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<v Speaker 4>work with the leadership at all levels.

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<v Speaker 5>You brought mum Donnie to meet with business leaders on

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<v Speaker 5>several occasions. I wonder if you can talk about what

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<v Speaker 5>his demeanor is in these meetings. Right, I've talked to

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<v Speaker 5>Bill de Blasio about, you know, how he works a room,

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<v Speaker 5>how mum Donnie works a room and really gets the

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<v Speaker 5>business community to be comfortable around him. But we'll talk

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<v Speaker 5>about some of these policy proposals that business leaders wanted

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<v Speaker 5>answers to What are the things that business leaders said

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<v Speaker 5>to him, Well, that sounds like a lofty thing that

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<v Speaker 5>won't get done, or hey, that sounds like something that

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<v Speaker 5>is much more than we're willing to back.

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<v Speaker 4>Well, there's been quite an evolution since he won the primary,

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<v Speaker 4>so in terms of his having a more nuanced position

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<v Speaker 4>on a lot of the policies. You know, during the

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<v Speaker 4>primary campaign there were whole slewer candidates and everything was

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<v Speaker 4>one liners, and the social media stuff was one liners

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<v Speaker 4>or you know, show and tell. When you get into

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<v Speaker 4>conversation with CEOs, they want to hear data, they want

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<v Speaker 4>to hear facts, and I have watched him evolve and

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<v Speaker 4>grow over the last eight months where we had conversations

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<v Speaker 4>last week, one on housing, one on childcare, where he

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<v Speaker 4>was there with a pen and a notebook, taking notes,

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<v Speaker 4>asking questions, and coming back with very substance to responses.

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<v Speaker 4>So he has absorbed a lot and is now digging

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<v Speaker 4>deep on these issues that you know, Ken Griffin expressed

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<v Speaker 4>concern about the fact that he made a lot, you know,

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<v Speaker 4>raised a lot of expectations, create a lot of idealistic

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<v Speaker 4>notions out housing and childcare and how we can do

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<v Speaker 4>all this for free. I think he's very quickly figuring

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<v Speaker 4>out none of this is free. Raising taxes creates real issues.

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<v Speaker 4>You may raise the rates of taxes, but that may

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<v Speaker 4>not result in more revenues if you scare people away,

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<v Speaker 4>or if you scare companies away, or as we've seen lately,

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<v Speaker 4>we're seeing a real threat to jobs in New York

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<v Speaker 4>for the first time, first time in my experience over

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<v Speaker 4>fifty years, are seeing a decline in the number of

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<v Speaker 4>jobs in our financial services industry. Scary thing. That's forty

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<v Speaker 4>percent of our state income tax revenues. We don't I mean,

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<v Speaker 4>these are you know, we've got to pay attention. And

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<v Speaker 4>I think he gets that. But we've got to be

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<v Speaker 4>at the table discussing these issues and helping figure out

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<v Speaker 4>how to employers help solve the childcare problem.

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<v Speaker 3>Kathy, you know, one of the things I think about

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<v Speaker 3>and I remember, you know, being at milk and years

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<v Speaker 3>ago and talking with very wealthy investors who said, yeah,

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<v Speaker 3>it's about time we pay more taxes. So what is

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<v Speaker 3>the balance? And I am curious among those folks that

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<v Speaker 3>you talk to who are very wealthy, and a lot

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<v Speaker 3>of times their wealth is not an income, it's assets

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<v Speaker 3>and it's investment gained. What do they think, though, should

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<v Speaker 3>be maybe more of their contribution. And I know they

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<v Speaker 3>often contribute in philanthropy and so on. I know that,

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<v Speaker 3>but I'm just curious, what is the balance of willing

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<v Speaker 3>to pay more when again, I've had side conversations with

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<v Speaker 3>folks are surprised that they aren't pay more in taxes.

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<v Speaker 4>So what I've found and for somebody who's upper income

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<v Speaker 4>earned income in New York, which is you know, our

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<v Speaker 4>biggest taxpayers, we're paying fifty five percent of our income

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<v Speaker 4>to the federal, state and city government with you all

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<v Speaker 4>in so we're paying more more than half my paycheck

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<v Speaker 4>goes to the federal government. So it's not like we're

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<v Speaker 4>getting away with something for the very wealthy who are

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<v Speaker 4>capital gains, et cetera. The big problem there is if

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<v Speaker 4>they move their legal residents out of New York City,

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<v Speaker 4>we don't get we don't share or get taxes. They

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<v Speaker 4>aren't taxed here on the basis of their global income,

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<v Speaker 4>and so we may get their a piece of their paycheck,

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<v Speaker 4>but not their wealth, right, And that's a big question.

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<v Speaker 4>It is. But what I found is over many years,

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<v Speaker 4>when when business leaders and the big taxpayers are at

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<v Speaker 4>the table and they see that number one government is

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<v Speaker 4>doing what they can to figure out how do we

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<v Speaker 4>offer the most efficient, the most effective services at the

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<v Speaker 4>lowest cost possible. How do we make government more efficient?

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<v Speaker 4>On the one hand, then so then you begin to narrow,

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<v Speaker 4>so what's the delta in terms of what what do

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<v Speaker 4>we need to raise revenues for? So, for example, when

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<v Speaker 4>Dick Ravage in two thousand and seven, for Governor Patterson

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<v Speaker 4>led the effort to figure out how are we going

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<v Speaker 4>to pay to upgrade our subways which were falling apart,

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<v Speaker 4>we supported and the business community supported creating a payroll

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<v Speaker 4>mobility tax, where a portion of payrolls of corporations employers

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<v Speaker 4>who were in the metropolitan region would go to that

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<v Speaker 4>eighty two percent of the employees who work for our

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<v Speaker 4>companies based in Manhattan take the public transit to get here.

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<v Speaker 4>That was something everybody signed off on we supported. We

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<v Speaker 4>supported an increase in that tax twice. Same thing with

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<v Speaker 4>congestion pricing. We supported congestion pricing. Obviously a user fee

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<v Speaker 4>where you get something reduced congestion more time in your day,

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<v Speaker 4>is easier to sell, so it is not. And actually,

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<v Speaker 4>when Mike Bloomberg was elected mayor right after nine to eleven,

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<v Speaker 4>the city had to raise real estate taxes in order

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<v Speaker 4>to rebuild and recover from the nine to eleven shot.

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<v Speaker 4>We supported that eighteen percent tax increase in real estate taxes.

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<v Speaker 4>So it's not that we're anti all taxes. Is government

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<v Speaker 4>doing what they can to keep costs down, to be

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<v Speaker 4>responsible in what they're spending. And then what is the

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<v Speaker 4>contribution and how do we make it that makes the

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<v Speaker 4>most sense, gets the most bang for the buck.

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<v Speaker 1>Just very briefly, because you spent such a big part

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<v Speaker 1>of your career working on affordable housing, I'm wondering if

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<v Speaker 1>the mayor is sticking to freezing rent as his solution

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<v Speaker 1>for affordability, because not one person that we have spoken

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<v Speaker 1>to over the last few months thinks that not increasing

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<v Speaker 1>supply and rather freezing rent is the right way to

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<v Speaker 1>approach the affordability crisis with housing.

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<v Speaker 4>Well, the new mayor is very well aware that those

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<v Speaker 4>are not mutually exclusive options and that if there's no

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<v Speaker 4>economic return, nobody's going to build housing. He's figured that out,

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<v Speaker 4>so he has He has said really since pre primary

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<v Speaker 4>that he understood the private sector had an important role

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<v Speaker 4>in the supply side, and he was going to work

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<v Speaker 4>on that. So I think that again his view is

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<v Speaker 4>much more nuanced when he says now when he talks

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<v Speaker 4>about freezing the rent, he says, and one thing that

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<v Speaker 4>will enable us to do that is if we do

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<v Speaker 4>reduce property taxes on rent stabilized regulated buildings. So he

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<v Speaker 4>gets it. He can add and subtract.

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<v Speaker 3>So can you come back, I.

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<v Speaker 1>Said, you said, we had an hour, had an hour

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<v Speaker 1>hour's worth of question, barely service.

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<v Speaker 3>But we still appreciate Kathy, Thank you, good luck, Thank

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<v Speaker 3>having Kathy Wilde, President and CEO of Going, President and

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<v Speaker 3>CEO of the Partnership for New York City, part of

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<v Speaker 3>the transition team of the New York City Mayor elect,

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<v Speaker 3>and of course, our Bloomberg senior reporter Miles Miller