De Blasio: "Very likely" to announce Chancellor next week. "There will be some interim leadership... until new chancellor fully on board"
— Beth Fertig (@bethfertig) December 23, 2013
No chancellor announcement, but de Blasio did appoint a former employee of Goldman Sachs, the Vampire Squid of Wall Street, as a deputy mayor for urban affairs:
For all his campaign bluster against the two cities New York has become, Mayor-elect Bill de Blasio isn't exactly shying away from some of the people who helped make it that way. This morning, the mayor-elect announced that Alicia Glen will serve as Deputy Mayor for Housing and Economic Development, a newly created position that will aim to make housing more affordable, as well create living-wage jobs for New Yorkers.
"We need to invest in key emerging industries and affordable housing so New Yorkers have a better shot at working their way into the middle class. Alicia has the record, fresh ideas and bold outlook to make that vision a reality,” said de Blasio at this morning's press conference.
De Blasio discussed Glen's vast experience, but mostly skirted the topic of Glen's last position, as the head of Goldman Sachs's Urban Investment Group.
While at Goldman, Glen worked with the Bloomberg administration on the public-private partnerships that Bloomberg championed throughout his reign. In her speech this morning, Glen told the crowd that "we can’t remain the greatest city in the world when half of New Yorkers are living in or near poverty. We can do so much more to lift people up by investing in our neighborhoods—especially in the outer boroughs."
Here is a description of one high profile piece of Alicia Glen's previous work at Goldman:
Goldman Sachs is making its second foray into an experimental method of financing social services, lending up to $4.6 million for a childhood education program in Salt Lake City.
This “social impact bond,” in which Goldman stands to make money if the program is successful but will lose its investment if it fails, will support a preschool program intended to reduce the need for special education and remedial services. The upshot, in theory, is that taxpayers will not have to bear the upfront cost of the program.
Goldman is being joined in this effort by the Chicago investor J.B. Pritzker, who is providing a subordinate loan of up to $2.4 million, bringing the total financing to $7 million. The loans will be announced at an event in Chicago on Thursday.
“Social impact bonds are an entirely new way of financing things that have traditionally been paid for either through philanthropy or by taxpayer dollars,” said Alicia Glen, head of Goldman’s urban investment group.
Though the effectiveness of this type of financing remains unproved, it has gained a prominent adherent in New York City, which allowed Goldman to invest nearly $10 million in a jail program last year. The city was the first in the United States to test social impact bonds.
For Goldman, which could gain a public-relations benefit from the investment, Salt Lake City has become an important business center. The city is home to Goldman’s second-largest office in the United States, and the Wall Street firm held its annual meeting there in May.
The loans are going to the United Way of Salt Lake, which oversees the Utah High Quality Preschool Program. The investment’s success will be measured by the level of cost savings when children do not need to use special education services, which are financed by the state.
The loans carry an interest rate of 5 percent, which is paid along with the principal if the program is successful. In the best case, Goldman and Mr. Pritzker would make additional “success fees.”
“We’re creating something sustainable that has a focus on returns,” Mr. Pritzker said. “This titillates my interest in business and engages me.”
This type of financing, which was first used in Britain in 2010, has raised eyebrows. Data on the New York investment, focused on men incarcerated at Rikers Island, is not yet available.
“I think it’s distressing the degree to which a new industry has been built around social impact bonds before it’s ever been proven viable,” said Mark Rosenman, a professor emeritus at Union Institute and University in Cincinnati. “We ought to work it to fruition in a couple places before we start promoting it.”
Ah yes - creating financial instruments so that Goldman can makes bets on students who need support services, giving the program the incentive to find ways to "demonstrate" the children do not need these services.
Boy, that sounds like there could be no down side there.
And who helped come up with this new scheme but Alicia Glen, Bill de Blasio's new Deputy Mayor for Housing and Economic Development.
Maybe I'm just cynical, but it sounds to me like de Blasio just appointed the scum of the earth to be a deputy mayor.
Meet the new boss, same as the old boss.