Adem Bunkeddeko launches state comptroller bid with novel trust fund plan

“Let me ask you something, do you know what the state comptroller does?”

Adem Bunkeddeko posed that question at the start of his campaign launch video for state comptroller, which was shared exclusively with City & State. The former two-time congressional candidate in Central Brooklyn is now the latest declared Democrat vying to unseat incumbent Tom DiNapoli, with the goal to educate New Yorkers about the position and redefine what it could be.

Bunkeddeko enters a crowded primary field that already includes a housing nonprofit executive and a former Kansas state legislator. Each is trying to differentiate themselves from DiNapoli, who has held the position for 18 years with few real electoral challenges – while also laying out a vision distinct from their competitors. For Bunkeddeko, the hallmark of his campaign launch is a promise to invest billions of dollars in unclaimed funds to create trust funds for every child born in the state. “For too long, the Comptroller’s office has been on the sidelines – and New Yorkers have paid the price,” Bunkeddeko said in a statement. “It’s time for change.”

This isn’t the first time that the state’s $20 billion in unclaimed funds – money that technically belongs to New Yorkers – has come up in the race. Drew Warshaw, the housing executive who launched his campaign in May, has pitched as a cornerstone of his campaign getting that money into the pockets of the New Yorkers it belongs to as quickly as possible. The total value of unclaimed funds in the state has skyrocketed from roughly $7.2 billion to $20 billion under DiNapoli’s stewardship.

Bunkeddeko wants to take the opposite approach under logic employed by DiNapoli – much of that money may never be claimed. Instead of allowing it to sit idly in the state coffers, Bunkeddeko wants to invest the cash and use the dividends to start the New York State Opportunity Trust Fund. He predicts that the state would see about $1 billion a year from returns on the investment.

Under his proposal, $500 million a year would be used to create a seed investment account for every child born in the state. They can access the account when they turn 18 after nearly 20 years of growth. Bunkeddeko estimates that the accounts could result in tens of thousands of dollars after an initial modest investment at birth. “At age 18, you can go to college, you can buy a home, you can start a business – whatever helps you build your future,” he said in his launch video.

Another $250 million from the new pot of cash would be used to fully fund a rental voucher program supported by tenant advocates and landlords. State lawmakers managed to get a four-year pilot at a lower price tag included in this year’s state budget after years of rejection by the governor.

The ambitious plan would be far from a certainty, if Bunkeddeko was elected. Although the state has about $20 billion in unclaimed funds, it actually has very little of this cash on hand. State lawmakers and the governor’s office regularly borrow from the fund to assist with the state budget. They do so under the assumption that every New Yorker with claims to money in the fund will not suddenly request it, which would necessitate immediate repayment by the state at a hefty price tag. The state Legislature would likely also need to act in order to permit the comptroller to invest the unclaimed funds.

Under Bunkeddeko’s plan, the original fund would remain available to those with claims to money “at all times” while it passively makes money for the state. But he also acknowledged that this would take time to scale up completely, needs buy-in from other state leaders and may require some “financial engineering” to achieve, given the state has already borrowed most of the money.

The state comptroller’s office pointed to the existing law as a key hindrance to the prospect of investing the unclaimed funds. “At the end of each fiscal year, the law (Abandoned Property Law) requires our office to send to the state’s general fund all money not needed to pay claims, keeping back just $750,000. Last year, in accordance with the law, the office sent $896 million to the general fund, which is used to support other NYS programs,” a spokesperson said. “Rightful owners can claim their money at any time.”

Other big ideas Bunkeddeko is proposing as part of his campaign is leveraging the state’s massive pension fund to pay transmission lines to carry hydroelectric power from Canada to the New York City region and to build high-speed rail across the state. Both would also serve as economic engines to revitalize upstate. He would also use the pension fund to invest in building affordable housing, an idea shared by some of his competitors as well. And Bunkeddeko would launch a far-reaching forensic audit of the Metropolitan Transportation Authority, demanding a fare freeze until it is completed. “There is no office like (New York comptroller) in America,” he said. “It is part watchdog, part investor and part architect of how public capital shapes the state’s economy – one of the largest in the world.”

In addition to Warshaw, former Kansas state legislator and tech entrepreneur Raj Goyle has also announced his bid for state comptroller in the Democratic primary. The generally overlooked position has drawn unusual attention as candidates looking to tackle New York’s affordability crisis in novel ways. They’ll face off against DiNapoli in June.