Eliot Spitzer and state Comptroller Tom DiNapoli announced a plan today for reforming the management of the $154 billion state pension fund.

But they did not recommend putting the fund under the control of a board of trustees. (Currently, the state comptroller’s office manages it alone). After DiNapoli's predecesssor, Alan Hevesi, resigned over alleged misuse, it reawakened a long-standing debate about the safety of the fund in the hands of one official.

Andrew Cuomo, who is investigating Hevesi, seems to be reserving judgment. From a statement:

"We agree that the Comptroller's Office needs significant reforms and will comment on them at the end of our ongoing investigation concerning that Office."

State Comptroller Tom DiNapoli wants public financing for all comptroller candidates, he said this morning.

He has not opened a campaign account, nor begun fund-raising, and has returned all checks he has received in support of his re-election. The filing in January will show his account has no money.

At a business breakfast at the Grand Hyatt, he also fielded a question that referred to a Joe Bruno quote in a recent New Yorker article when Greg David, editor of Crain's asked, "Is Shelly Silver really the biggest wimp in town?"

More after the jump.

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At his big fund-raiser last night, Eliot Spitzer sounded almost like his old self.

“Inspiration is hearing someone say, ‘No it can’t be done, it won’t be done’ and then, proving them wrong,” the governor said. “Look around this room. Look around this state. There is inspiration everywhere.”

Afterwards, I asked him if the speech was a deliberate return to the governing style that got him elected.

“I don't know if it was a return," he told me. "I think it was just a statement of principles that sort of capture what we need to do. It certainly is a theme that I have talked about during the period when I was running for governor: the need to be the center of innovation and intellectual creativity. That’s what New York has historically been and that is what we’ve got to be if we are going to be a vibrant economy."

Here was the analysis of State Comptroller Tom DiNapoli: “I think he’s trying to get back to the core of what he ran on a year ago.”

State Senator Malcolm Smith, who had some trouble explaining his position on same-sex marriage earlier, came out strongly in support of it today, in response to a court ruling on the issue. From a statement:

"Today's State Supreme Court Decision upholding the rights of gay marriages to benefit from the state pension system as any other couple is a step in the right direction in our struggle to provide full marriage equality to all families. While other states and countries have moved forward, New York can not continue falling behind on this important civil rights issue. As we demand civic obligations from every citizen, today's court decision is a resounding message on the need to provide equal protection to all.

"Though same-sex marriage is not legal in New York State, it is encouraging that the court sees the importance of extending benefits to those whose same sex unions are sanctioned by other states and jurisdictions"

State Comptroller Tom DiNapoli also sent out a statement of support, saying, “New York State recognizes any marriage that has been conducted in accordance with the laws of other states and countries – and that includes same-sex marriages.”

When Charie Rangel blew out his birthday cake last year, he had two wishes: "That we win back the House and I become Chairman of the Ways and Means committee."

That's according to an early invitation obtained by The Observer to his 77th birthday gala, set for August 8 at Tavern on the Green.

His dreams having finally come true, Mr. Rangel is apparently celebrating what one New York City contributor to his campaign is calling "possibly the largest congressional fund-raiser in the history of New York."

The evening's special guest will be Rangel endorsee Hillary Clinton, but she won't be alone: the source told The Observer (and Rangel campaign finance executive director Walter Swett confirmed) that David Paterson, Sheldon Silver, Malcolm Smith and Tom DiNapoli will be joined at the event by playwright-poet-activist-actress Ruby Dee. Chevy Chase will be in attendance and Aretha Franklin is also likely, according to Swett. No word yet if Eliot Spitzer will be on board for the festivities. (And it's probably not the right time to ask.)

Chairs are asked to raise $20,000 and the lowest fund-raiser level -- patrons -- are expected to bring in $1,000. According to the invitation, proceeds will go to Rangel's National Leadership PAC to ensure the expansion of the Democratic majority in Congress.

"Most of all," Rangel writes in the invite, "we celebrate living in the greatest democracy on earth, a country where dreams can come true and a high school dropout from Lenox Avenue can get a second chance from the GI Bill and make something of himself."

Just as Eliot Spitzer was reaching the low-point of his largely highlight-free time as governor, two readers called me to describe a sight that would have been unthinkable a few months ago:

At Eliot Spitzer’s fund-raiser in Manhattan yesterday, he was introduced by state Comptroller Tom DiNapoli. That’s the same guy whose election by the state legislature Spitzer opposed and who was described by the governor as “utterly unqualified.” (The two had already buried the hatchet somewhat, with DiNapoli appearing arm and arm with Spitzer in a video Spitzer filmed for the annual roast with the Albany-based reporters.)

According to one of the attendees, DiNapoli said Spitzer was the best governor New York has had.

Another source said, “It was like the whole world is upside down.”

Funny who your friends turn out to be.  read more »

There are some ongoing tech issues at City Hall contributing to today's slow rate of posting, in addition to the inconvenient fact that all the (ongoing!)negotiations about congestion pricing are happening behind closed doors.

In the meantime, though, there's this: state Comptroller Tom DiNapoli delivering a measure of unadulterated praise for Michael Bloomberg and the City Council. In a report touting the fact the city has a $4.7 billion surplus, DiNapoli said, "Mayor Michael Bloomberg and the City Council have done a great job of managing this windfall,” and “Clearly, there will be challenges in the coming fiscal years, but the City is well-positioned largely because of steps taken over the past two budget cycles.”

Bill Thomson and Adolfo Carrion had a friendly chat during last night’s dinner for the Bronx Democratic County Organization at the Marina Del Rey.

At one point, I and two other reporters ran into Denny Farrell, who was hanging out with his daughter. He cheerily noted that earlier in the day he’d gotten another pro-congestion price mailing, making it three so far. “It must be good to be a billionaire,” he said. (The mayor, about whom Farrell was referring, has denied that he's providing any direct funding for the effort.) Then, Farrell rhetorically asked how many phone calls he’s gotten, smiled, and made a big zero with his fingers.

In introducing Christine Quinn, Assemblyman Jose Rivera, the county leader, said, “If I decide to go back to the City Council in ‘09, I want her to be my speaker again.”

Assemblyman Jeff Dinowitz told me he won’t be in town when Sheldon Silver convenes his conference meeting in Manhattan on July 16.

Non-Bronx officials who made their way to the dinner include David Weprin, Melinda Katz and Simcha Felder - all comptroller candidates in 2009, Assemblyman Michael Gianaris, and state Comptroller Tom DiNapoli. Also floating around the room were former City Council Speaker Gifford Miller (no tie!) and Democratic Mayoral candidate Fernando Ferrer.

And state Senator Efrain Gonzalez, who was indicted last year for misusing public money, was at the dinner before I arrived and stayed after I left, seemingly having a good time.  read more »

Siena Research Institute has a new poll out today about voter attitudes towards some of the biggest legislative initiatives under consideration in Albany.

62 to 32 percent, voters oppose pay raises for lawmakers;

52 to 42 percent, voters support reinstating the death penalty for cop killers;

51 to 37 percent, voters support public campaign financing;

47 to 43 percent, voters oppose gay marriage;

Other numbers from the poll:
Spitzer’s favorability rating is 67 to 21 percent;

Andrew Cuomo’s is 51 to 32 percent;

and Tom DiNapoli’s favorability rating is 7 to 18.

Eliot Spitzer's post-budget approval rating is 48-27 percent, down from 61-11 in February, the poll.

Other approval ratings: