In the wake of the stunning arrests of two high-profile public officials in a political bribery case fueled in part by City Council discretionary funds – also known as ‘member items’ – Public Advocate Bill de Blasio today called for the immediate and outright ban of the controversial spending system, beginning with the Fiscal Year 2014 budget cycle.

“Time after time, the discretionary funding system has led to bribery, political blackmail and a boatload of big legal bills paid for by taxpayers,” said Public Advocate Bill de Blasio. “New York doesn’t need an appropriations process that aids and abets corruption and political gamesmanship in order to invest in our city’s priorities and worthwhile projects. We can do better.”

Yesterday’s arrests of Council Member Dan Halloran and State Senator Malcolm Smith were just the latest examples of corruption involving discretionary funding. Three members of the City Council have been convicted, and another two are under investigation for abuse of member items. Discretionary funding has also been identified as a tool of political vengeance and political blackmail for those who may dissent from the leadership of the Council doling out the funds. Last week, two current members of the Council said publicly they were punished for disobeying the wishes of Speaker Quinn by having their member items slashed, resulting in less spending on investments in their respective communities. Additionally, reports recently surfaced that the City Council has spent more than $513,000 in taxpayer money on four different law firms over six years in the discretionary fund scandal.

“A finance system based on political relationships instead of objective standards of fairness, a system where funds can be disbursed with little oversight or accountability – this is no way to run a railroad,” said de Blasio. “Attempts at reforming this flawed system have not prevented corruption, and the only reasonable next step is to ban this broken process – completely and immediately.”

De Blasio stressed that there were a number of ways New York City can continue to fund projects without the member item system – from the traditional budget process, to basing expenditures on objective formulas and standards, to ensuring more public participation in spending decisions.

De Blasio has offered reform proposals of discretionary funding in the past. In 2010, de Blasio pushed for major oversight reform of member items when he urged Speaker Quinn to commit to new level of transparency and openness by posting all applications for these dollars online.

(YWN Desk – NYC)