Democratic candidates for state treasurer vie for support

NEW HAVEN — The Democratic candidates for state treasurer aimed to convince fellow party members who among them had the best lived experience to deserve the nomination.

The co-chairs in Westville’s 25th, 26th and 27th wards sponsored the discussion between Dita Bhargava, of Greenwich, who sought the party’s endorsement in 2018, Karen DuBois-Walton and Erick Russell, both of New Haven.

The virtual meeting had about 40 people watching.

There was agreement across the board that the main function of the office is to get the best return for the least cost on the $44 billion the state invests to support its pension obligations.

Beyond that, the contenders — who will look for delegate support at the May 7 Democratic convention — said they would use the office to grow funds aligned with their values.

The race was described as a “mad scramble” since Shawn Wooden, the current treasurer, announced on April 7 that he would not seek reelection, a month before the convention.

Bhargava was the first to announce her interest in the position on April 7, followed by Russell on April 14 and DuBois-Walton on April 15.

Bhargava, the chief operating officer of Catalan Investments in Stamford, said she has two decades of a proven record of investments on the Wall Street trading floor and more than that in money management.

Since her oldest son died of a drug overdose in 2018, Bhargava said she also has worked to hold Big Pharma accountable.

She said she would use the platform of the treasurer’s office to demand “better social behavior and strict corporate governance” from the companies the state has invested in and beyond that as a voice of treasurers across the country.

All three candidates promised to promote financial literacy among the populace.

Bhargava said her investment record makes her the most qualified candidate.

She also advised the Democrats to keep their eyes on the general election in November as the Republican candidate, Harry Arora of Greenwich, also has two decades of returns on investments to campaign on.

“We are in a tough era for Democrats. We can’t take anything for granted,” she said.

DuBois-Walton, the mayoral challenger to Mayor Justin Elicker last year before dropping out early, is well known as the executive director of Elm City Communities, Housing Authority of New Haven for the past 15 years. She also is the chairwoman of the State

Board of Education.

DuBois-Walton said she would bring a set of experiences in running a complex public sector organization to the state treasurer’s office.

The housing authority has 150 employees, both union and non-union, and a budget of more than $140 million with investments valued at more than $800 million.

Using its own bond authority, DuBois-Walton said, the organization has raised more than $60 million in tax-exempt financing to upgrade its low-income housing stock.

“We made the returns to investors that they were dependent upon and delivered a really quality product in our community,” she said.

Russell, who grew up in New Haven, is a partner in the law firm of Pullman and Comley in Hartford. Up until he decided to seek this office, he was vice chairman of the state Democratic Party.

He has been bond counsel for the past 10 year to municipalities, state agencies and the state, ultimately issuing more than $1 billion in debt for those entities annually.

Russell said he has been involved in everything from housing authority financing to the Connecticut Airport Authority to Connecticut Housing Finance Authority, which does all of the university, health care and child care facility financing in the state.

He said he has worked on the special transportation obligation program, as well as the general obligation program that issues bonds to cities and towns. Russell said he is familiar with tax incremental financing districts, such as Steele Point in Bridgeport.

“This is all centered around ultimately building up our communities, investing in things that are important to us,” Russell said. DuBois-Walton said she has a record of “rebuilding community in ways that are very tangible.”

Bhargava had to leave the forum early to make a previous commitment. After that, the remaining candidates were asked their views on transitioning to a defined contribution plan for state workers, rather than the defined benefit plan in place.

Both DuBois-Walton and Russell said it should be on the table for new hires as part of negotiations for all parties involved, but not for current workers and retirees.

DuBois-Walton said they did this transition at the housing authority years ago.

The pair were asked what the state’s unfunded pension balance was and neither could come up with a figure. Bhargava, when contacted later, knew what it was.

It is $40.5 million, according to state reports, while the total unfunded obligations are about $95 billion when considering bonded debt, unfunded pensions and retirement health care responsibilities.

They all supported the state continuing to apply some surplus funds, beyond the mandated pension payments, to lower the large unfunded balance, with an estimated $1.7 billion transferred so far.

Russell made a pitch for investments in urban centers. DuBois-Walton praised the state for not investing in the gun industry and said it should consider investing in companies with environmentally friendly practices and those with good labor relations.