A. Cut Budgets: As Deputy Treasurer, I played a critical role in cutting overhead in the Treasurer Tax Collector’s (TTC) office. We voluntarily cut our budgets in 2007 (22%), 2008 (60%) and 2009 (20%). In addition we returned budgeted but unspent monies to the County in 2007 ($905,000) and 2008 ($559,000). Because of my intimate knowledge of our operations I have already identified areas where additional savings could be found. I will begin implementing additional cost saving measures on my very first day in office.

 

 

B. Streamline Government Services: As Deputy Treasurer I oversaw a team that in 2008 was honored with a National Innovation Award for our success in cutting government and streamlining services (awarded by the National Association of Counties). 

 

The TTC has large mail processing equipment which is necessary for us to properly process the over 2 million pieces of mail we receive annually. While these machines are humming during peak tax collection times, they have excess capacity throughout portions of the year. 

 

We have already partnered with Animal Control to process their mail and billing and are pursuing partnerships with other County Departments. Since the TTC has the equipment and ability to process and scan all the mail in house, it doesn’t make sense for a sister agency to pay an outside vendor for a service and skill we already provide. 

 

This is just one of many examples of what my team at the TTC has been accomplishing for taxpayers. We continue to pursue new ways for us to bring about greater efficiencies.

 

C. Invest in Orange County: As a Trustee of the Orange County Employee Retirement System, I have advocated for investing more public dollars at home in the County. As fiduciaries of public funds, our primary concern must be obtaining the best risk adjusted return for our beneficiaries – but because Orange County is one of America’s centers of innovation, strong investment opportunities can often be found in our own backyard. If opportunities to invest in local infrastructure or business arise, I think we should take a good look at the risk and reward of making strategic local investments. While ensuring we are meeting our high level of fiduciary oversight, I would actively pursue appropriate investments in our local community. 

 

 

As a Trustee on the Orange County Employee Retirement System (OCERS) I have a deep understanding and knowledge of government employee pensions. Although the OCERS Board does not make policy, I see first hand the impact of rising pension costs. If we fail to reign in pension costs, other vital services may soon be choked out. It has now reached a critical tipping point such that even employee Unions recognize our current path is unsustainable and they too are willing to work to find solutions.

 

As Treasurer you are not a part of the collective bargaining process. However, I believe we should move toward creating a “Hybrid Plan” which has aspects of both defined contribution and defined benefit plans. Under a hybrid plan, the majority of a public employee’s retirement savings would be placed in a 401(k) style vehicle. 

 

Essentially, I believe government employees should have the same investment risks and safety net as their private sector counter parts. Considering County employees do not pay into Social Security, there is a good possibility that they will not receive Social Security benefits in retirement. Under a hybrid plan, a limited safety net similar to Social Security will makes up the defined benefit portion of the plan.   State’s adopting this framework have had a dramatic decrease in their unfunded liability since the investment and longevity risk is shifted to the employee and the guaranteed benefit is reduced.

 

 

 

I have been a money manager for most of my career, and first gained experience as a stock broker for Morgan Stanley Dean Witter and State Farm Financial Services. I have been licensed with the Securities and Exchange Commission (SEC) and the National Association of Securities Dealers (NASD).

 

As Orange County’s Deputy Treasurer, I am currently a fiduciary for over $13 Billion taxpayer dollars. I am a Trustee on the $7.5 billion Orange County Employee Retirement System (OCERS) and serve on the system’s Private Markets Committee. As a result of our adherence to a conservative investment philosophy the pension fund weathered the financial crisis better than its peers, and was ranked at the top for our investment returns over the past 1, 3 and 5 year periods.

 

Additionally, I am a fiduciary and participate in investment decisions regarding the $6 Billion County and Education investment pools managed inside the Treasure’s office. During my tenure, we became the first County in the Country and only municipality in California to earn Standard & Poor’s highest rating (“AAAm”) for safety and principal stability. 

 

 

The Orange County Treasurer’s Office has an extremely robust regiment of checks and balances. The following safeguards are currently in place:

 

§ Treasurer’s Oversight Committee

·         Statutory body that meets quarterly or as needed to review investments and operations.

·         Committee’s members are approved by the Board of Supervisors.

§ Investment Policy Statement (IPS)

·         Approved annually by the Board of Supervisors and the Treasurer’s Oversight Committee.

·         The IPS sets the investment parameters and articulates what investments are permitted/restricted.

§ Monthly Audits by Elected Auditor/Controller

·         Monthly 10 day random sampling of purchases to ensure we are compliant with our IPS. Report is provided to the Board of Supervisors, the Treasurer’s Oversight Committee and the County CEO.

§ Monthly, Quarterly and Annual Report with details regarding all of our investments

·         Report is posted online and provided to the Board of Supervisors, the Treasurer’s Oversight Committee the County CEO and our pool participants.

§ Quarterly Audits

·         Statement of Assets and thorough review of portfolio and operations.

§ Annual Audit

§ All holdings and transactions are posted online for public viewing

§ All meetings are open to the public

 

I would welcome additional oversight if taxpayers or the Board of Supervisors thought it necessary or a prudent use of limited resources.

 

 

 

My vision for the Orange County Treasurer’s Office is simple (1) Maintain our high level of constituent/taxpayer service; (2) Continue seeking and implementing new efficiencies and cost savings; (3) Guard taxpayer monies by spending and investing in a thoughtful, conservative and prudent manner. 

 

As Deputy Treasurer, I have concentrated on these most basic building blocks for the past several years and our efforts have been met with success. As a result of our focus we (1) were the First County in the Nation and the only municipality in the California to have Standard & Poor’s highest rating for Principal Stability (2) Voluntarily Cut our Budget and returned unspent monies to the County (3) Received national recognition for our success in streamlining government. As Treasurer my vision is to redouble our efforts in these areas and continue building on this foundation of success.

 

If I was responsible for crafting a plan for the State of California it would focus on the same three points and be almost identical. Although a County Treasurer has no authority on a statewide level, I would use the platform to speak out against waste and abuse. As one of the County’s authorities on the issue of municipal finance and governance, I would strive to ensure the tax paying electorate is informed about what is happening with their money. An informed and knowledgeable public is our State’s best defense against abuse and mismanagement by the political class.

 

 

 

I am running for this office because Orange County needs a Treasurer with Actual Experience inside the Treasurer’s office. I am the current Deputy Treasurer, which is a position akin to Vice President – I stand in during the Treasure’s absence.

 

My legal training and work as a stock broker registered with the SEC and NASD gave me the skills and knowledge necessary to flourish as Deputy Treasurer. Having served in this post for over 3 years, I am the only candidate equipped with Actual knowledge of the people and processes of the Orange County Treasurer’s Office. Not only do I know all of the parts, I helped assemble them into a cohesive and successful team.

 

Without intimate knowledge of the office’s operations it is impossible to come in and be an effective leader on Day 1. Having Actual Experience running the County’s $6 billion investment pool, sending and processing millions of mail pieces and serving as a Trustee for the $7.5 billion pension I am best equipped to lead from the moment I take office. Since other candidates have only experience running “similar” and significantly smaller operations, it will take time for them assimilate and acclimate to my office’s vast operations. Having a new Treasurer “learn on the job” is not something Orange County can afford during this time of fiscal stress.

 

Unlike my father and grandfather, I didn’t serve in our armed forces. Working as a public servant is my little way of giving back to the Country that has given me so much. I love the people I work with and running for higher office is not a part of my short or long term plans. I am running for Treasurer because I posses the skill set necessary to meet the needs of the taxpayers. If a similar situation arose much further down the line, I may consider running for a different office.

 

 

As the Deputy Treasurer I have witnessed the disastrous consequences of government interfering in the free market economy. While there was a time when free market and pro-business were synonyms – this is no longer the case. I consider myself free market.

 

Perhaps the most egregious example in recent memory of a “pro business” policy gone horribly awry is the bailout of General Motors. It is now well known that union retirees who held unsecured claims in bankruptcy were given preference and more favorable terms than General Motors’ Secured bondholders. This flies in the face of our Nation’s Rule of Law and will forever distort pricing in the bond market. People investing in companies with a union work force will now demand higher interest payments to compensate for this new risk.

 

In capitalism there are winners and losers, and today’s winner may very well be tomorrow’s loser. Having losers is a critical component of the capitalist free market system. Our Country thrived without the Packard or Edsel, and we would have continued to prosper without General Motors. Free markets must be left alone if our Country is tomaintain its position as the world’s innovator.

 

 

Our Country was founded on the premise of no taxation without representation and must quickly return to its roots. Our current tax system is a confusing maze that only an accountant could love. We must simplify the tax code and consider alternatives like a flat tax.

 

Our Federal Government is actively stoking an unhealthy battle between Main Street and Wall Street. Companies with friends in high places receive bailouts and tax breaks while the ordinary folks like you and I struggle to pay our rising tax burden.

 

I believe the Bush tax cuts should not be allowed to expire and the death tax should be abolished. Our country cannot afford the backroom closed door healthcare bill and it will eventually bankrupt our nation.

 

As the Treasurer, it would not be in my purview to vote on tax issues. However, I would use the pulpit to speak out against wasteful bond measures and backdoor taxes on both the County and State level. And, in my office, I would practice what I preach by continuing to reduce costs which lowers the taxpayer burden.

 

 

I have libertarian leanings and believe strongly in limited government. It is my view that government should primarily stick to the basics like national defense and infrastructure development. I am very concerned that as a result of our exploding national debt, these most critical areas will not receive adequate funding in the near future. And while I oppose new taxes, I find it appalling that 40% of the population enjoys the benefits of government without having to pay a penny of Federal Taxes.

 

Elected officials are first and foremost “Public Servants.” To me this means elected officials are in the business of customer service. In the office of Treasurer Tax Collector this means prudent investing, making the payment of property taxes as painless as possible and protecting taxpayers by reducing the breadth and cost of government.

 

The tremendous expansion of government over the past several years is choking innovation and drowning out the voice of the taxpayers. America has thrived not because of government, but in spite of government.  

 

California is a prime example of the problems that arise when a bloated government tries “to be everything to everybody.” The similarities between the economic demise of Greece and California are staggering. As a result of our over spending and anti business regulations California will soon need a bailout of it own. 

 

It is an ironic habit of human beings to run faster when we have lost our way. It is time to return to our Founding Father’s notion of limited government and stop taxing, spending, borrowing and mortgaging America’s future.

 

 

 

 

As Orange County’s Deputy Treasurer, I am the ONLY candidate with ACTUAL experience inside the OC Treasurer’s office. I am already a fiduciary of the County’s $6,000,000,000 investment pools and $7,500,000,000 employee pension fund. 

 

I know the people and processes, and as Deputy Treasurer I helped assemble the different pieces into a cohesive team that has received a National Achievement Award for modernizing and streamlining government. All of the other candidates would need to learn while on the job – this would put taxpayer dollars at significant risk during a time of countywide financial stress.

 

I am a professional money manager and already have a team of skilled certified public accountants (CPA) in the Treasurer’s Office. Additionally, I am a business law attorney and concentrated my studies in the area of SEC securities regulation.