US News

ANTI-GOV REBELS SEIZE COMPTROL

ALBANY – Brushing aside the appeals of Gov. Spitzer, state lawmakers are ready today to select one of their own – most likely Assemblyman Thomas DiNapoli (D-L.I.) – as the next state comptroller.

The Democratic-controlled Assembly yesterday scheduled a joint session of the Legislature for 2 p.m. today to tap a new comptroller for the office, which has been vacant since Alan Hevesi resigned in disgrace in December.

Assembly Speaker Sheldon Silver (D-Manhattan), who has been warring with Spitzer over the choice, said he was still polling his members about their preference for the job. Assembly Majority Leader Ronald Canestrari (D-Troy) called it a “safe bet” that the next comptroller will come from the Assembly.

The reform-minded Spitzer, who wants someone from outside the Legislature with a strong financial background, made a last-ditch plea to lawmakers in a letter he sent to each of them late yesterday afternoon.

“In making your decision, I ask that you consider both the context for this decision and its serious ramifications,” Spitzer wrote – using language that some lawmakers perceived as a veiled threat of retribution should they go against him.

“I urge you to send the right message, one that says you understand the current crisis of ethics confronting state government and the need at this critical moment to rely on an independent, nonpartisan process,” he wrote.

Spitzer said it would be a “huge mistake” not to follow the procedure agreed to by legislators, in which a panel of three independent former comptrollers recommended as finalists three candidates from outside state government.

It’s a high-stakes battle, because the comptroller has enormous power. The comptroller oversees an office of 2,400 workers and is the sole trustee of the state’s $145 billion pension fund.

As sole trustee, the comptroller has huge amounts of money to dole out at his will – hiring financial advisers and consultants, picking investments, and selecting projects that benefit from state pension dollars. In that way, the pension money can be used to reward supporters and campaign donors.

The comptroller also serves as the top auditor of state agencies and local governments. With the power to investigate state agencies controlled by governor, the comptroller can make his life miserable by regularly publicizing waste and fraud.

Upset that none of the five Assembly members who applied to be comptroller made the final cut, Silver and the Assembly Democrats have dismissed the selection process as flawed and decided to make an end run around it.

Spitzer told reporters earlier in the day yesterday that the situation is “a fundamental test of the integrity of those who entered that decision process.”

In his letter to lawmakers, Spitzer said choosing someone not on the list would send a message that the three the panel found most qualified – including New York City Finance Commissioner Martha Stark – were rejected simply because they are not sitting members of the Legislature.

kenneth.lovett@nypost.com