News Copy, New York

Upstate Newspapers Weighing In On New York's Next U.S. Senator

Politics on the Hudson had an overview of editorials by upstate New York newspapers on Governor Paterson anxiously awaited U.S. Senate appointment to replace Hillary Clinton.

Paterson has promised to wait until Hillary is confirmed, sometime in late January, which allows the former First Lady a way to hedge her bets (if she's not confirmed by Congress).  So in the meantime, the media loses its mind over-speculating and over-thinking it all.

The Poughkeepsie Journal wrote:

“The federal government can help by providing more funding for basic infrastructure improvements and by offering more tax incentives and clean-up money to companies willing to convert old, polluting sites into new business ventures.”

The Mid-Hudson Valley newspaper provided insights from eleven other newspapers across New York State.

From the Watertown area:

"The dairy industry has long been the backbone of the local economy. For generations, Northern New York dairy farmers have produced high-quality milk. But it is a tough industry; farmers' prosperity depends on fair milk prices. Locally, we need more milk processing plants and opportunities to convert the raw material of local dairies into a variety of products. Our next senator must understand the economics of dairy farming and look for ways to help our hardworking farmers."

From Rochester:

"As far as the Rochester region is concerned, we need jobs. We needed them before Sens. Charles Schumer and Clinton were elected to their first terms, and we still need them. This region is transitioning from manufacturing to a knowledge-based economy driven by the health and education sectors. What, if any, opportunities are there?"

From Syracuse:

"This region can contribute to the nation's future economic wealth, particularly as Syracuse embraces "green" technology. Federal investment in Central New York's infrastructure, education, economic development and health care can bolster the region's self-sufficiency and spur growth."

Many of the newspapers encouraged that the prospective picks to spend more than just rapid visits through their regions, as if a quickie won't do them any good.

On the West Coast: $17.4 Billion In Spending Cuts And $14.3 Billion In Tax Hikes

It could be worse.

This could be California.

The Associated Press reported on Governor Arnold Schwarzenegger's latest plan to close a deficit projected at $41.6 billion over the next 18 months.

California's governor is seeking $17.4 billion in budget cuts -- but tax increases totalling $14.3 billion.

The AP reported California state officials warning that without a budget fix, California will run out of money sometime in February and the state will have to start issuing IOUs to employees, contractors and taxpayers expecting a refund.

"We are facing a major crisis, probably the most challenging budget situation the state has ever faced," state Finance Director Mike Genest said in releasing the plan to reporters.

The Los Angeles Times outlined the tax-happy proposal and it's not too different from New York -- though with far steeper cuts in services, union contracts and education than the Empire State.

President-Elect Barack Obama Says The U.S. Senate "Cannot Accept" Illinois U.S. Senate Pick

Reuters had Obama's statement on Illinous Gov. Rod Blagojevich's appointment of former state attorney general Roland Burris to fill his vacated U.S. Senate seat.

"Roland Burris is a good man and a fine public servant, but the Senate Democrats made it clear weeks ago that they cannot accept an appointment made by a governor who is accused of selling this very Senate seat," Obama said in a statement, adding that he agreed with this position.

Do Senate Democrats have a choice?

Also, a man is innocent until proven guilty -- and Mr. Blagojevich remains Governor of Illinois until its State Legislature comes up with a better idea.

FOX News reported that Senate Majority Leader Harry Reid refusing to seat Burris, setting up a rarely used constitutional authority given to senators.

So much for state rights, eh?

"The people of Illinois are entitled to have two United States senators represent them in Washington, D.C. As governor, I am required to make this appointment.  If I don't make this appointment, then the people of Illinois will be deprived of their appropriate voice and vote in the United States Senate," Blagojevich said in a surprise press conference at the James R. Thompson Center in Chicago.

He could also resign, humbly, and let someone else make the appointment.

Article I Section 5 of the U.S. Constitution says: "Each House may determine the rules of its proceedings, punish its members for disorderly behavior, and, with the concurrence of two-thirds, expel a member."

Punish a U.S. Senator for the sins (okay, the alleged sins) of his Governor?

So being appointed U.S. Senator is now disorderly behavior.

 

New York State Comptroller Says Governor's Executive Budget Is "Risky"

At least New York State Comptroller Tom DiNapoli in warning New Yorkers that proposed sources of revenue may not be reliable, as reported by Politics On the Hudson, and described Governor Paterson's proposed budget as "risky."

DiNapoli is talking specifically about the State Legislature not cooperating with Paterson on proposed sources of revenues, many politically unpopular and fiscally unreliable.

Conservatives have been warning lawmakers about the risks of variable revenue streams like sales tax for over ten years -- and increased fees/tolls have snuck up on New Yorkers for too long.   Also, any consumption taxes rely on people actually having the disposable income to spend.  Some of these new taxes won't generate anywhere near the dollar projections some State lawmakers have held their hopes on.

For example, retail sales were down an estimated 8-10 percent during the holiday shopping season -- deflating the critical last fiscal quarter revenues for local, county and state governments nationwide.

These knuckleheads didn't see this coming?

" ... There are risks in the governor’s plan. Many of the proposed revenue raisers and spending reductions may not be enacted or realized. And even though the governor is pushing for more pay-as-you-go capital projects, debt levels are still too high.”

Higher debt levels means higher interest on lending = a far bigger bill left for the taxpayers to pay in the future.

137 new taxes and fees.  They won't all be passed by the State Legislature, so proposed spending will require higher "traditional" taxes -- like income tax and then less aid to localties in turn would trigger higher property taxes.

The Comptroller’s Office had other findings:

Spending

Spending is increasing faster than revenues (we need a comptroller to tell us that?) General fund spending is projected to grow at an average annual rate of 5.4 percent through fiscal year 2012-13, but revenue will go up only 3.8 percent.

Annual Debt

There will be average annual debt issuances of $5.3 billion over five years, higher than the $3.6 billion annual average for the previous five years. Annual debt payments are expected to reach $7.6 billion in five years, 40 percent more than debt payments in 2008-09.

Medicaid

The proposal includes $3.8 billion in Medicaid and health-care savings and revenues, but state-funded Medicaid spending would spike by 3.8 percent ($587 million).

School Aid 

School aid would be reduced by about 3.3 percent ($698 million).

Off-Budget Items

There is some good news, maybe ... The projected 2012-13 deficit would decrease from $19.6 billion to $5.5 billion in 2012-13. The total deficit for fiscal years 2010-11 through 2012-13 would fall from a projected $55.3 billion to $11.4 billion ... though I'm personally skeptical that the usual suspects in Albany will address the State deficit with any seriousness -- and I suspect that these numbers don't include at all the off-budget deficits left fallow by New York State's many unaccountable public authorities.

Also, these are four year projections and wishful thinking.

Teamsters Willing To Help New York City: But No Lay Offs Or Cuts In Services

The Politicker reported the Teamsters Local 237 open to doing their part to help New York City -- as long as no one is laid off and services remain intact.

Suburban and upstate lawmakers should take note (as they already have in Yonkers).

In November, Local 237 secured a two-year contract with compounded raise of over 8 percent -- characterized by union leaders as the "best contract in ten years" and Mayor Bloomberg admitting the salary increases were already in the current budget.

Yeah ... so were the property tax rebates.

Bernard Kerik Pleads "Not Guilty" To "Crime Spree" In Revised Indictment

The New York Times reported on a "superceding indictment" adding to the legal woes of Bernard Kerik, the former New York City Police Commissioner under New York City Mayor Rudy Giuliani, who pleaded "not guilty" Monday in White Plains Federal Court to charges involving the preparation of false tax returns.

Kerik was originally indicted in November 2007 on charges including corruption, fraud and making false statements.

In court papers filed in September seeking dismissal of the indictment, the defense said, “Mr. Kerik vehemently denies each and every one of the charges.”

A spokesman for the United States attorney’s office had no comment after the hearing, except to say, “Our papers speak for themselves.”

The Times also reported that earlier this month the United States attorney’s office said that Mr. Kerik engaged in “an extensive crime spree,” from about 1998 until 2006, when he pleaded guilty to related charges in a deal with the Bronx district attorney’s office.

"The heart of the federal case includes allegations that a construction company suspected of having ties to the Mafia paid for renovations at Mr. Kerik’s home in the Bronx in the hope that he would help the company obtain a city license."

Once asked by President Bush to head the Department of Homeland Security, Kerik is also charged with falsifying statements on loan applications. The New York Daily News reported that Kerik failed to declare a BMW luxury car as payment for consulting services.

The M.T.A. Releases Plan To Draw More Revenue From New York City Commuters

The New York Times reported on the Metropolitan Transit Authority proposing four ways to gouge commuters in and out of New York City:

Behind Door Number One:

23 percent revenue increase in all types of fares, with the standard ride rising to $2.50, from $2 -- OR  $2.25 for two or more trips purchased at one time (with an elimination of 15 percent off for purchases of $7 or more).

Behind Door Number Two:

8 percent increase, the standard fare would rise to $2.25, and the bonus would increase to 20 percent, for pay-per-ride MetroCard purchases of $7.50 or more -- OR the standard fare would remain at $2, but those who pay cash or buy single-ride tickets would pay $2.25, and the pay-per-ride bonus would also be eliminated.

There will be eight public hearings, the first on January 14th in Manhattan, but I am curious if there will be any in Westchester County or on Long Island. 

New York's Cut From Stimulus Package: Schumer Says $5 Billion; Bloomberg Says NOT

U.S. Senator Charles Schumer is talking Federal aid, a lot of it, but he is talking entitlements rather than bricks and mortar, reported Reuters

"New York's (Medicaid) matching rate could be temporarily increased by approximately 10 percent -- resulting in at least $5 billion a year," said Schumer, a Democrat. "This money would be injected directly into the state coffers and could help defray budget cuts and future tax hikes."

So more money for Medicaid is Schumer's solution?

How about less money for one union that had benefited nicely from Medicaid bloat, 1199?

Meanwhile, the Politicker reported New York City Mayor Michael Bloomberg rightfully skeptical of the funding ever showing up or how the funding would be managed.

Bloomberg's right. Albany's fingers are too sticky.

At least he's also up front about a fiscal "reckoning" coming.

President-Elect Transition Staff Confirms Obama Had No "Quid Pro Quo" With Blagojevich

"... The accounts contain no indication of inappropriate discussions with the Governor or anyone from his office about a “deal” or a quid pro quo arrangement in which he would receive a personal benefit in return for any specific appointment to fill the vacancy."

The Obama Transition Team released the review of Obama Transition staff contacts with Governor Blagojevich and his office.

"One member of the transition staff, Rahm Emanuel, did have contacts of the type covered by
your request. I discuss the nature of those contacts in the attached report. David Axelrod and
Valerie Jarrett, two other individuals on the transition staff, did not have any contacts with the
Governor or his office but are included in the report to address questions raised by the press."

Download a PDF of the memo.

New York High Speed Rail Finds Facebook: Courtesy of Assemblyman Sam Hoyt

High speed rail rocks.

The Albany Times Union blog Capitol Confidential reported today on Western New York Assemblyman Sam Hoyt writing a letter to President-Elect Barack Obama to appropriate portions of the $500 billion stimulus package for high speed rail between New York City and Buffalo.

It's been floated before, with nothing actualized:

"The idea for a high-speed rail has been bounced around since the 1990s, but never gained any substantive traction. Gov. Mario Cuomo talked about the proposal in campaign speeches, but was then defeated by Gov. George Pataki in 1994. Pataki tried to secure money for a high-speed rail link to Schnectady after Sept. 11, 2001. In 2005, former Senate Majority Leader Joseph Bruno created a taskforce to make recommendations for improving the rail system, but it didn’t go anywhere after that."

Hoyt's chief of staff, Mark Hennessey, created a facebook page ("New Yorkers For High Speed Rail") that so far has 615 members.

I poked around Facebook for some more details and soon discovered that high speed rail has an immense amount of support in other states.

"Support California High Speed Rail" has nearly 40,000 supporters on Facebook.

SF to LA in 2.5 hours
• Trains would travel at 220mph
• SD and Sacramento to be included as well
• Create 450,000 jobs throughout the state (due to economic growth resulting from CAHSR)
• 10,000 fewer auto accidents every year
• Reduce carbon dioxide emissions equivalent to removing 1.4 million cars from the road
• It will pay for its construction cost in the long run
• Reduce CO2 emissions by over 17.6 billion lbs/year
• Reduce California’s oil consumption 22 million barrels/year
• Induce denser development, limiting sprawl
• Half the cost of expanding freeways and airports to meet future travel demand

It's not an idle issue, as other Facebook pages showed.

Another interesting use of Facebook too.

 

Trying To Find Non-Caroline Related News: Anything But Kennedy

This is no bias against Caroline Kennedy but the blogs nationwide have become consumed with this woman's quest for a U.S. Senate seat.  I'm not entirely boycotting this story (I sure feel like it) but there has to be something other than a child of Camelot to occupy the time of news outlets.

So I have decided to take an entirely irreverent and perhaps indifferent tact on this story.

Anything but Kennedy!!!

Westchester Assemblywoman Embracing School Property Tax Cap: Poll Shows 88 Percent In Favor Of Cap

I remember Assemblywoman Sandy Galef from her days as a County Legislator in the 1980s -- when there seemed to be a minority of Democrats at the gate wishing to be in control of it all.

Now Galef (whose initial roots were actually Republican many years ago) is taking a more pronounced stand on the school property tax initiative, reported Politics on the Hudson.

Perhaps the veteran Democratic lawmaker from Upper Westchester County (Ossining) will do better that Larchmont's Liz Feld fared when she was probably the strongest advocate of the fiscal conservative measure as a challenger to State Senator Suzi Oppenheimer.

Feld was oddly and uncharacteristically trounced nearly 2-1, on an issue that should have been a winner throughout the heart of Westchester County.

We're only the highest taxed county in the universe.

Oppenheimer's district includes Ossining and Galef will likely face strong resistance from the Briarcliff School District.

Sandy's brave.  Of course, she tackles it after Election Day and after the economy has fallen off the edge of the earth.

She has a poll too (what good do these darn things do when rabid PTA moms and dads turn the issue into a political third rail?).

88 percent of taxpayers in Galef's district support a tax cap -- but I'm sure about 2/3 of these well-intended fiscal axe wielders still end up voting for the same knuckleheads who caused all these debt-ridden problems in Albany in the first place.  They keep re-electing Democrats who worship Sheldon Silver like lemmings.

Galef is hosting a forum with the first proponent of the school tax cap, Tom Suozzi, on Thursday, Jan. 22 from 7-9 pm at Croton Village Hall.

Lessons of 2008: Need For Less Scandal and Celebrity; More Grass Roots and Bare Knuckles

2009 will be the year of Taxpayers Anonymous.

2008 was the last year of what historians will someday characterize as the end of a 35-50 cycle of fiscal dependency that crashed with a public depression -- debts that will make the drooping of Wall Street since mid-September look like a newspaper boy collecting for a paper route.

First, we have all been too nice.

The days of being nice are over.  Political correctness and the curse of civic niceties got us here.  Fear of offending each other.  Threats of political intimidation and a general over-dependence on government has left the public credit card tapped out.

Two stories in the past week offer examples of New York State's weakness; the crowding of Caroline Kennedy as celebrity into the hourly news cycle -- and the recall of too many scandals here (and nationwide).

Robert George of The New York Post wrote a column earlier this week about scandals -- mostly by Democrats -- that my friend Anthony J. Colavita read off in response to listener who called into his WVOX radio show tearing down the Republicans.

Tony is the former State GOP and Westchester County Chairman, so his loyalties are naturally with the elephants (as are mine), but it's fair to add that the Republicans are ridden with their scandals too.

This is a bad time, first economically, and perception is reality for politicians.

Robert George called it The Year of Living Scandalously.

"In a year when Republicans were out-spent and out-voted in the election, they were also out-corrupted at every turn. Sure, some valiantly tried to keep the GOP end up - Ted Stevens, former senator from Alaska, insisted the chair given to him as a gift wasn't really his, even if it was sitting in his living room. And Vito Fossella went for that old chestnut, the second family on the side."

It was a year Eliot Spitzer let us down.  He let his family down.  He let us all down.

But maybe America's problem is that we rely too much on hero-worship and less on grass-roots civic effort.

Which brings us to Caroline Kennedy, again.

Elizabeth Benjamin of The New York Daily News blog Daily Politics had a healthy recap of all the interviews Ms. Kennedy is finally fielding.

Is it fair to Caroline Kennedy or any candidate for public office that we expect so much -- often to compensate for what we wish things were -- rather than work hard on the local level to cultivate good candidates?

We reach for the dollars (ie. Michael Bloomberg).  We reach for the power (ie. Hillary Clinton).  We reach for the celebrity in Caroline, when the hallmark of her mother's exile from the Kennedy mystique was likely to keep her children as far away from that madness as humanly possible.

Having known a number of people close enough to John F. Kennedy, Jr. to know better, I am certain he would have been laughing now.  He got the joke and had at times an entirely ordinary way about him on the streets of New York that rebelled against all cult of personality.  I know that's an amazing thing to say about a fellow a lot of women openly adored -- but the everyman side of his persona was always very much evident.  Caroline Kennedy alluded to these point using other words, a refreshing re-examination of why she's here at this moment pursuing a U.S. Senate seat.

She's the anti-icon, which is good, and she's probably been the least ambitious of all the Kennedy children, which is even better.  That part of her interest in public service is a good thing.

But some are craving Kennedy's presence on the political scene for all the wrong reasons.  As the Sarah Palin debacle demonstrated, manhandling a candidate never helps.  Memo to Any Candidate:  Your political consultant is not an uber-guru. They're not the candidates either (the real problem with political consulting).  These talking heads are not prophets either, or candidates (or advocates).  To be fair, I sense that even the working press is on overload at the moment and people watching are changing the channel.

Yeah ... there was a lot of scandal this year.  The lyric "get the widow on the set, we have dirty laundry" keeps running through my head.   America, New York, everyone is burnt out on everyone else's problems.  It prompts one question, sort of a remnant of how I felt after 9/11 (and how I will feel after the next 9/11, and the 9/11 after that).

What's going to happen when we have a real emergency?

Does any local town supervisor and his or her council have the courage to say mistakes were made -- and budgets must be cut?  Do village and city mayors, along with fellow trustees and council members have the humility to clean up local waste?  Does the County Executive (along with most school boards and schools superintendents) possess the character to pitch austerity?  Does our Congressional delegation have the will and political capital to risk making the argument to save New York State?  Does our State Legislature have the honesty and tools to deal with New York State's fiscal default?

Two weeks ago, Laurie Nikolski of The Journal News wrote an editorical verbalizing a need to renegotiate municipal union contracts and this week it appears that Yonkers Mayor Phil Amicone has brought the discussion in that city hall to bartering productively for some "givebacks" from those unions.

Bravo.  But why did it take so long -- and is it enough?

It's a start and it's a lot more important than a person's name being floated as U.S. Senator because she's popular.

If I sound as if I'm expressing disdain for the media circus (one I am part of), it's due to what I sense is a lack of preparation for the real tragedies. The fiscal collapse of the public sector in our lifetime will be a tragedy, a betrayal of a gift outright that has been squandered.

As Yonkers City Councilwoman Joan Gronowski expressed about those residents throughout "the highest taxed county in America" gravitating to Rethinking Westchester Government, we are "mad as hell and not going to take it anymore" -- albeit sleepy.

... What New York State needs is that reality and grass-roots participatory civic engagement of people coming together to make a productive noise -- rather than waiting for Godot in the person of a Caroline Kennedy or (dare I also lay this at the State GOP's doorstep) Rudy Giuliani.

Madoff Implosion Prompts Comparisons Between Social Security And Ponzi Schemes

Business Week asks the question:  Is Social Security a Ponzi Scheme?

It's off-budget, unaccounted debt and it's borrowed on by Congress.  At some point, it will be insolvent and those last paying this mandatory payroll tax won't get a return on this investment.

Jim Cramer of "Mad Money" vented in this video on the the Federal government's failed obligations:

“We know the truth about Ponzi schemes,” Cramer said. “We all know the name of the biggest Ponzi scheme in history and it’s not even illegal. In fact, it is run by the U.S. government. And the name of it – well they call it Social Security"

According to the 2007 Social Security trustees report, Social Security is projected to bring in $827 billion in revenues for 2008 and payout $617 billion in costs, leaving it with $2.4 trillion in assets by the end of the year.  However, costs are outpacing income and some predict the fund will be insolvent – as soon as 2016 if the amount of Social Security assets held in Treasury bonds is discounted.

 

Cramer cited predictions that the program could be insolvent by 2042 -- and who gets left holding the bill then?

Yonkers Fiscal Debacle: Nothing New And Nothing Changes

Vox Populi on the Yonkers Tribune cut through the spin about the budget in Yonkers.

"Contained overtime would have prevented the $9 million expenditure. Of the $7 million, $3.5 million came from the city and $1.5 million came form the BoE and this would have reduced the gap to $2 million.

"At issue now is how could the mayor have closed this gap from the beginning? You guessed it; all his campaign/political hires on the second floor of City Hall."

As reported by The New York Times only a week ago, Yonkers was bracing for an expected 151 layoffs, to plug a $16 million budget gap that critics called a self-inflicted wound.

The threat of layoffs by Yonkers Mayor Phil Amicone put a challenge to the unions; renegotiate contracts and defer salaries/benefits.

After much grumbling and continued claims that Amicone created the fiscal crisis, the unions have so far begun to respond favorably.

First, the Teamsters voted to defer a salary increase.

Now, SEIU 1199 will vote this coming week to postpone salary increases.

Some claim that over-time and political hires have bloated Yonkers finances.  Others point to the historical fact that the fiscal crisis is not as deep or as helpless as with previous mayors.

Hezi Aris of the Yonkers Tribune outlined the budget debacle in New York's fourth largest city -- and made some pointed suggestions to Mayor Amicone. 

"Get rid of waste. Get rid of the cars; every last one of them, no matter how little will be saved. Shut down the city gasoline pumps for use other than for police, fire, and DPW vehicles. No individual cars are to use the pumps for any reason. Seriously consider taking a cut at the upper echelon of government, including the Mayor’s own salary. Why should anyone consider giving anything up if the mayor himself refuses to give up a dime? Patronage jobs must be let go, or if not that, salaries must be cut across the board."

Those suggestions could apply to every municipality in Westchester County, and the County Government, though I sometimes wonder if these elected officials haven't faced enough of a scare to sober their fiscal world view.

There's always election day.

New York State's Proposed Payroll Tax For Public Transit Could Be A Hard Sell

Azi of the Politicker had some video put up this weekend of a press conference earlier this with Governor David Paterson, New York City Mayor Michael Bloomberg and Richard Ravitch on a study of the MTA's finances.

Amid the proposed Executive Budget for New York State and the region's economic woes, the proposals of the Ravitch Report have not been getting much attention.

The Journal News had the perspective of the outer suburbs on a proposed 33 cents on every $100 payroll tax for employers.

What lawmaker will dare propose a new tax on commutation?

This is not going over too well, with anyone.

It would raise $1.5 billion a year, while fares on subways, buses and sububan trains would still rise.

"At first, it would be used to keep down fare increases, which otherwise could rise as high as 29 percent on most Metro-North rides while a subway fare could increase to $3 from $2. With measures such as the payroll tax and new tolls on the four free East River bridges, the fare increases would be about 8 percent, Ravitch's commission projected."

The Brooklyn Eagle reported on the Straphangers Campaign supporting the proposal of the Ravitch Report, including the concept of a regional bus authority stretching into the suburbs.

Ravitch suggested that such a regional authority could take over the costs of busing in the counties surrounding New York City.

Here is the full report made by Richard Ravitch to New York State Governor David Paterson.

What Ever Happened To ... Former New York State Governor Eliot Spitzer?

The Former New York State Governor writes for Slate now.

He's citizen Spitzer, on the outside looking in.  I'm no fan of his politics but exile can do some ironic things to fallen politicians.

Richard Nixon, for example.

There will still be many revisions by historians of his tenure as New York State Attorney General -- but journalists usually get the last word.  His first column for Slate magazine in December ("Too Big Not To Fail") was akin to a fallen hero coming out for one at bat.

He will be heard, albeit as a spectator.  He at least put the pen to paper.

Spitzer may never recover from being associated with the era that was asleep at the wheel when Wall Street went amuck.  The question that will forever dog him is how he missed so much right under his nose for nearly ten years.  His redemption now might be reporting openly about how it all really happened.

Mount Vernon's Raises: No One's Taking Credit

Lest anyone thinks the fiscal reform wonks have just dumped coal in the stockings of County Government officials and Yonkers City Hall, take a look at what's happening in Mount Vernon.

Mount Vernon Mayor Clinton Young is blaming his predesescor former Mayor Ernie Davis for the raises next year in that city government.

Politics on the Hudson reported former Mount Vernon mayor Ernest Davis saying that he had no part in granting $10,000 and $5,000 raises for six employees in the city’s Law Department.

This is a Bart Simpson moment,

"...Chief of staff Yolanda Robinson said raises for the department were negotiated in the former administration and took effect in 2008. But Davis said he didn’t approve the raises and wouldn’t have supported anything other than equal raises for his staff across all departments."

The Journal News covered the citizen unrest over the larger raises -- and what appears to have been a whole lot of other raises.

"The adjusted numbers, finally provided by the Department of Finance last week, show that most appointed employees got 4 percent raises in 2007 and 2008, and 3.5 percent raises in 2009; raises that matched those given to union employees. But a crop of appointees got bigger raises from $5,000 to $10,000 in 2008, instead of the flat 4 percent."

News reports added that those raises included $10,000 more for four people in the Law Department; $10,000 for two employees in the Finance Department; $5,000 for one employee in the Finance Department and two in the Law Department; $8,715 more for a civil service secretary; $9,315 for the deputy commissioner of the Department of Public Works; and $5,000 more for the director of Veterans Services.

The raises were apparently approved by both the Board of Estimate and Contract and the City Council.

New York Governor Says Caroline Chatter "More Like The Prelude To A High School Prom"

The Huffington Post suggested that Caroline Kennedy be apppointed ambassador to Great Britain.

What does Ms. Kennedy do if Hillary Clinton is not appointed Secretary of State?

The Daily Politics reported on a Brooklyn Assemblyman calling Caroline "Bloomberg's Agent" -- joining Assembly Speaker Sheldon Silver in cautioning she would be more beholden to the New York City Mayor.

Would this make newly indoctrinated Bloomberg talking head Howard Wolfson Hillary Clinton's double-agent?

Politics on the Hudson reported Governor David Paterson observing after returning from Iraq that all the speculation has been “sounding more like the prelude to a high-school prom than the choosing of the United States senator. And we found it rather amusing. But we were much more engrossed with the plight our troops in Afghanistan and Iraq.”

Meanwhile, Paterson wants us all to believe that Congressman Steve Israel -- who joined him on the trip -- didn't discuss the U.S. Senate seat with him at all.

Caroline Kennedy finally subjected herself to an interview (with the Associated Press), rather than the take home exams from The New York Times she had been completing.

Political Spinmaster Howard Wolfson Joins New York City Mayor Michael Bloomberg

File this under "politics makes strange bedfellows" -- and perhaps Wolfson's folly.

Mayor Taps Old Antagonist to Aid His Re-election Effort:  The New York Times

I guess party ideals or loyalty doesn't mean anything when your boss is a billionaire.

NY1, where Wolfson likes to hang his hat in New York, listed his credentials.

New York U.S. Senate Hopeful Caroline Kennedy Defers To Silence On Financial Disclosure

In the future, every candidate for office will attend a public hearing where he or she will confess their sins to the working press ...

... And no one will care.

The New York Times reported that Caroline Kennedy declined on Monday to reply to questions posed by that newspaper about any potential ethical, legal and financial entanglements.

This is blood sport.  One should be ready to make such disclosures -- or at least explain away potential scandal.   There are practical and fair reasons too.

“Precisely because there is no campaign or election, she should be more willing to disclose and subject herself to a greater level of public scrutiny than is required,” said Dick Dadey, executive director of Citizens Union, a nonpartisan watchdog group. He noted that other major contenders for the Senate seat — officeholders like the attorney general, Andrew M. Cuomo, and Representative Kirsten Gillibrand — have mounted runs for office and filed public disclosures before."

All the other prospective candidates for this U.S. Senate appointment have filed public disclosure.

The Times was matter of fact:

"If she were applying to be, say, an undersecretary of education in Barack Obama’s new administration, Caroline Kennedy would have to fill out a 63-item confidential questionnaire disclosing potentially embarrassing text messages and diary entries, the immigration status of her household staff, even copies of every résumé she used in the last 10 years."

This is how it works.  If you (or someone in your political circle) says things about his marriage, the working press has a permission slip to investigate your marriage.  If questions get thrown at your family's finances, including any organized crime family ties, be ready for every person who ever did business with your family to be scrutinized.

There are no boundaries.

There is pride, vanity, fear of professional reputation being dented and your poll numbers.

There's nothing else.

So those "handlers" keeping Ms. Kennedy under lock and key like a princess should quit the charade and cease mishandling her.  She should also be smart enough to show them the door.  In politics, people choose their jailers.

“She needs to deepen the public’s idea of who she is,” said Paul Light, a professor at New York University's Wagner School of Public Service. “To the extent she can be more transparent, she dispels the notion that it’s all about her name. We obviously know that she’s quite wealthy, but beyond that, we don’t know much about where she gets her income, how she’s invested, whether she has followed her own principles in her investing activities, and so forth. That would be very useful to know.”

About the only saving grace in this psycho-babbled political drama is that the man who has to make this U.S. Senate appointment at least has a sense of humor.

Taxpayers Anonymous: Mad As Hell And Not Taking It Anymore

Westchester Magazine had this story on the taxpayer unrest in Westchester County.

It highlights the work of Rethinking Westchester Government and its founders.

Both Democrats; Greenburgh Town Supervisor Paul Feiner and Yonkers City Councilwoman Joan Gronowski.

There are also members of the Westchester County Conservative Committee on board, including myself.

But few Republicans.

No elected Republican officials or prospective candidates have dared open their mouths on this issue in the press.  Some have attended the meetings, others are lending significant support -- but it's as if the party of Reagan is out to lunch when it comes to what The New York Times called "the Highest Taxed County In America."

Happy Holidays To The Empire State: Apollo 8 Christmas

Everything You Wanted To Know About Yonkers Provisional Employees But Were Afraid To Ask

The following headline in the Yonkers Tribune put it another way:

Councilwoman Gronowski Asserts Proposed Layoffs Exclude Many Illegal Employees

I would disagree with the word "illegal" but political appointees do ostensibly live at the whim or kindness of the person who put them there.  It's the game they're in.  It's called political patronage.

Gronowski's noted corrected that permanent employees in Yonkers, who had taken and passed civil service tests and been appointed to positions, are now slated for layoff, instead of a number of provisional employees who have never taken and passed the mandated civil service tests.

... And this is happening within the Westchester County Government and the New York State Government (and New York City), so it could one of the issues before next year's budget debacles are resolved.

The Yonkers Tribune noted the following from the Yonkers City Councilwoman's comments:

"Many of these employees are assigned in some fashion to the Mayor’s Office, and more than a few are randomly given different position titles at certain intervals as a means of circumventing the requirement for civil service testing. Civil Service law requires that a municipality request the NYS Civil Service to schedule an examination within a nine-month period, as soon as a person is hired in a position classified as “provisional”.   Several of these provisional employees, although holding mayoral assistant titles, are being paid and funded out of various departmental budgets and are physically located in other agency."

Nine months.

Some of these knuckleheads have remained in those positions for five years.  Gronowski took the criticism a step further:

“The City of Yonkers has a habit of either failing to call for civil service tests for select employees, or immediately changing the position titles of those favored employees, if they do take and fail a test for their positions."

 It's a bit worse, as Gronowski detailed.

She stated that when she discussed the matter with mayoral spokesman Dave Simpson during that time, particularly citing the years-long provisional status of Lorraine Lopez, Simpson told her “she [Lopez] could never pass a civil service test”, as if that were an excuse for circumventing civil service law.

The Tribune reported Yonkers Mayor Phil Amicone attributed any lack of testing to New York State, further claiming that the City of Yonkers had done its part to request tests for any provisional employees through the years.

Fair enough.  BUT, they shouldn't be getting paid so much.  They shouldn't be getting raises either and a healthy gesture by mayor of New York's fourth largest city would be to reduce his own office's payroll.

These aren't civil service employees.  There aren't union members.  These are people deemed political advantageous to an elected official -- or whose value as a public servant is considered is worth the risk of hiring them without adequate education, experience or New York State exams passed.

It happens all over New York.  It happens all over America. 

Politics Seeps Into Westchester Law Enforcement Over District Attorney Race

Three-Way Race

Both Republicans and Democrats are looking to challenge incumbent Westchester County District Attorney Janet DiFiore in 2009.

If Democrat Tony Castro gets the Independence Party line and DiFiore secures the Conservative Party line (as expected, discussed and apparently already negotiated), a three-way race for D.A. that would also include Republican Dan Schorr is inevitable.  There are theories speculated that either Schorr or Castro would be persuaded out of the race in September of 2009 with the offer of a judgeship -- neither far-fetched nor inappropriate -- but right now it looks as if these three candidates are locked into a heavyweight political fight.

... And it's going to drag law enforcement personnel throughout the northern suburbs of New York City into a divisive game of taking sides ... one that has already started.

The Westchester Guardian's headline on 12/4/08 read:

Another Good Cop Sacrificed On The Altar Of D.A.'s Incompetence

This comes courtesy of newspaper publisher Sam Zherka, who just coincidently has campaign staff for Democrat D.A. candidate Tony Castro writing the stories.

That's a fairly huge "in-kind" contribution but I digress.

Reckless Provocations

The national Gannett newspaper chain's Westchester print publication, The Journal News, has also started covering the suspension without pay of Pleasantville Sgt. Stephen Bonura by the Village of Pleasantville apparently for revealing the identity of a criminal informant.

Cops show support for suspended Pleasantville detective as hearing opens (12/17/08)

The Journal News reported on a public hearing in Pleasantville where Pleasantville Police Chief Anthony Chiarlitti read 60 charges against suspended Detective Sgt.. Stephen Bonura, 17 of them related to comments he made to reporters in May after the arrest of career criminal Kahlil Gonzalez.

"Bonura told the newspaper that the Westchester County District Attorney's Office treated Gonzalez too leniently because he was an informant. His supporters say that office pressured the village to discipline the 27-year veteran.

"Bonura is also accused of failing to properly handcuff Gonzalez at the station, illegally strip searching him and berating his girlfriend."

Gonzalez has a prior criminal record that appears to substantiate describing him as a "career criminal" -- so there is a lot more to this matter than meets the eye.

James Cristiano, president of the Westchester Detectives Association, was among Bonura's supporters at the hearing.

"They are out to destroy a good cop's career," said the Larchmont detective. "I think it's a travesty and I think it's fiscal mismanagement by this board to the extreme. They came up with minor violations that could have been handled internally. This is all about egos; Somebody's ego has run wild here, and this board has allowed it to spiral out of control."

While the chief has acknowledged having a conversation with District Attorney Janet DiFiore over the incident, she issued a statement yesterday saying that she never spoke to Pleasantville police about the disciplinary proceeding.

According to newspaper reports, Bonura is suing the Village of Pleasantville and the Westchester County District Attorney's office for $32 million dollars.

When is someone filing a criminal complaint if someone is so cock sure that something illegal has taken place?  I'm getting tired of Mr. Lovett's grandstanding.  Since when should Janet DiFiore be the "whipping boy" every single time a police department is having a bad hair day?

Political Agendas

I will hold off posting Republican D.A. candidate Dan Schorr's statements in support of Bonura until a more formal statement has been obtained.  He came across as well-spoken and genuinely concerned about Mr. Bonura's welfare, as have others.  My only problem as a political analyst is that there is no doubt Democrats and Republicans are already exploiting this police matter in Pleasantville for political benefit. It's clear to me that the Bonura matter will be a topic during next year's District Attorney's race.

... And I'm not sure if that's good for law enforcement in Westchester County, if this degrading finger-pointing continues.

The Journal News also reported in what Stephen Bonura's attorney said to Pleasantville officials during the hearing.

Standing before a 100-capacity hearing room filled mostly with police officers who were there to support Bonura, Lovett added, "I'm not going to have you try him. We're going to try you."

Without actual evidence of criminal wrongdoing by Pleasantville authorities or the D.A.'s office, I can't see how such presumptive attacks are good for any law enforcement or elected official anywhere in New York State.  Is every mayor, supervisor and/or police chief to fear being verbally intimidated and shook down by lawsuits and unscrupulous news outlets?

The Journal News reported Lovet claiming that the village suspended Bonura and ordered the internal affairs probe only after District Attorney Janet DiFiore complained to the Pleasantville police chief about Bonura's comments to The Journal News.

DiFiore and the chief both say she brought no pressure, though the chief has acknowledged they spoke shortly after Bonura's comments were posted on The Journal News' Web site. Yesterday, DiFiore issued a statement saying they never spoke about the disciplinary proceeding.

"Anyone who says otherwise is either lying or misinformed," her statement said. "The notion that I would ask a police department to discipline one of their own because he spoke out against this office is absurd and a total fabrication."

The Westchester Guardian had its own advance story on the hearing (12/18/08)

The headline was pure hyperbole:  DA DiFiore Orders 27-Year Veteran Good Cop Fired For Voicing His Opinion

Conflicts of Interest

What I fear has been lost here is a sense of dignity, by everyone, and proper professional discretion has been thrown to the wind.  The police blotter is delicate enough for any citizen who is arrested or the subject of a police report, even a harmless report for the record.  Journalists have an ethical obligation to report a story about law enforcement matters on the basis of the facts and to clarify what's alleged versus what a court has finally ruled.  Police personnel have the same ethical obligations, so do personnel working in a prosecutor's office.

A State Supreme Court decision earlier this year laid down harsh criticism about the objectivity of some personnel during a criminal case handled by the staff of former Westchester County District Attorney Jeanine Pirro.  But this is a new D.A. -- and those stirring the pot appear only motivated by political agenda ... at the moment.

What's missing here is a grounded reporting of the facts.  It's become an inflamed civil matter over in Pleasantville and other police departments, due to a subjective and politically opportunistic coverage by The Westchester Guardian.  Again, this newspaper's reporter of record works for a D.A. candidate -- so he's wearing two hats and serving two masters and "spinning" the story to persuade an outcome of a District Attorney's race.

It's no mystery that I have worn several "hats" at once in politics and the fourth estate.  You can't fool this fooler.  Westchester Guardian publisher Richard Blassburg is motivated by political self-interest.  Years of him stalking the D.A.'s office with claims of corruption have not generated one criminal complaint against any of its personnel.

As for his claims of "free speech" these days, Sam Zherka should print a disclaimer that his newspaper is not a newspaper.

It's a long-running political ad.

Yonkers Political Operative Turns New York's U.S. Senate Appointment Into An Ethnic Slur

"The Kennedy's collectively suffer from Irish Alzheimer's:
they only remember the grudges."

John Fleming
Yonkers Tribune
12/17/08

John Fleming isn't a favorite subject of mine.

Fleming dares to characterize the political intentions of Caroline Kennedy as vengeance against Andrew Cuomo.

" ... the main factors working against Andrew are not only the emergence of Caroline Kennedy as a candidate, but the Kennedy clan in general.  The Kennedy's collectively suffer from Irish Alzheimer's: they only remember the grudges.  And they owe Andrew big time for smearing RFK daughter and ex-wife Kerry Kennedy's name by leaking smutty details to the press during their recent divorce. Caroline for this seat would go a long way in the pay back arena. And the Kennedy's, historically, always get their pound of flesh. This one is worth a few pounds to them."

His ignorance is only rivaled by his bigotry.

I won't dignify Mr. Fleming's shallow comments, except to say that his ethnic slur against Irish-Americans would not be the first time he has stooped to such a cheap level -- and his invasive presumptions show more disrespect to the late John F. Kennedy, Jr. than anyone else.

His fixation with denigrating the sexual and marital issues of others, drawn from regularly digging under people's fingernails, also has much to do with his career failings.

It is true that John Fleming's name on the ballot defeated the political machine of former State Senate Majority Leader Joe Bruno but as his campaign manager I had a front row seat to his dark techniques.  He talks bigger than he is, has a track record of failing to pay people, shows the capacity to lie without conscience and I won't be surprised someday if he shoves a political knife deep into the back of his patron Phil Amicone.

Such traitors are only good for the treason.

Yonkers Public Works Employees Offer To Defer Raises In Exchange For No Layoffs

I spoke too soon -- though the following this entirely relates to what I said about raises for provisional employees in Yonkers City Hall.

The Journal News reported that the city's Teamsters voted yesterday evening to give back a pay raise and allow the city to skip payments to the union's welfare fund in exchange for guarantee that none of the 50 Teamsters slated to be laid off would lose their jobs.

... Give back a pay raise ...

... All the city to skip payments to the union's welfare fund ...

The specifics here, if accomplished, would be a negotiating coup for Yonkers Mayor Phil Amicone.

"The mayor said Teamsters chief Eddie Doyle Jr. reported to him that 95 percent of the 400 union members who participated in the vote favored the measure. The givebacks dealt with two points: postponement of a 2 1/2 percent pay raise set for Dec. 31 until July 1, and elimination of the city's payments to the union's welfare or benefits fund for the first six months of 2009."

Postponement of 2.5 percent pay and elimination of the city's payments to the union's welfare or benefits fund for the first six months of 2009.

Not a bad offering from a municipal union, the kind of renegotiating that could also ease the pressure on taxpayers.

Though the heads of several city unions have been openly hostile to givebacks, such as the Yonkers Police Benevolent Association, Amicone said one other union, which he did not identify, was likely to meet today to discuss givebacks to avert layoffs. He said discussions were continuing with two other unions.

"We do have the time to avert layoffs, but at this point we cannot demand anything," Amicone said. "I'm hoping the other unions will do the same thing,"

The mayor's approach to the negotiations is to use any savings realized from a particular contract to save jobs with that same union, mayoral spokesman David Simpson said.

City Council President Chuck Lesnick said he hoped that the police and firefighter unions would be able to avert layoffs, because layoffs there would hurt city efforts to reduce overtime, a chronic problem particularly for the police. Among police, 11 layoffs are proposed; seven firefighters would be laid off.

Layoff notices went out to affected city workers late last week, taking effect January 2.

President-Elect Barack Obama Interviewed By Prosecutors: Drudge Report

Courtesy of the Drudge Report, this story from The Smoking Gun about Barack Obama being interviewed last week by prosecutors.

So now it's Rahm Emanuel's fault?

The report states that Obama told Whitaker that "no one was authorized to speak for him" and that "he had no interest in dictating the result of the selection process."

Why does it seem as though somebody's about to take the fall?

Yonkers Councilwoman Calls For Layoffs Of Politically Provisional City Employees

I was warned that posting the following would have political ramifications, as if I am supposed to pretend a story of some importance isn't there

Gannett's lower Hudson Valley blog Politics On The Hudson reported that Yonkers City Councilwoman Joan Gronowski wants Yonkers Mayor Phil Amicone to trim some political patronage.

... And I think she's right.

Gronowski is a Democrat who has been doing some laudable work as a member of Rethinking Westchester Government (of which I am a proud and happy member).  Frankly, we're a rapidly growing fiscally conservative good government organization focusing on the County Government's politically wasteful hires.  Though Gronowski made her statements separate from Rethinking, it's in keeping with our goals -- and no locality should be exempt from cost cutting.

"With layoff notices to city workers in the mail in Yonkers, one City Council member says the city should first get rid of some political employees who have long ago exceeded the nine-month limit on provisional employees. Joan Gronowski, D-3rd District is targeting two employees in particular, Lorraine Lopez, a special assistant to the mayor, and Gail Burns, an aide to the mayor."

The problem here politically for everyone involved -- including myself -- is that Burns is the County Conservative Committee chair (of which I am, as Eastchester Town Conservative chairman, a  dutiful member).

The other problem is that Gronowski didn't go far enough -- and perhaps Burns is not the first who should be thrown overboard -- if she would need to be thrown overboard at all.  There is some dead weight in Yonkers City Hall to be addressed first.  Love or hate her, Gail Burns actually has administrative experience.  She knows Yonkers, certainly better than some of City Hall's usual suspect, and her time in constituent affairs under former State Senator Nicholas Spano rivals most of her contemporaries.

I would suggest that there is someone else far more overpaid who could be shown the budget plank.

Amicone's blind spot is former New York City Police Detective (and former New York City Mayor Rudy Giuliani "bodyguard") John Fleming.  Without the higher education or passed civil service exam, Fleming's somehow making $100,000 or more as a self-proclaimed deputy mayor.  It's never made sense.  Fleming's neither from Yonkers nor has he ever worked administratively in any municipal operation (obviously proven out by no record of advancement administratively in the New York City Police Department). 

And there are others making far too much, in both major parties, including a few consultants whose contracts should be torn up.

To be fair here, Yonkers is laying people off and one should expect parity among the political hires too.  This is a problem throughout Westchester's local municipalities, Westchester County Government and every aspect of New York State Government.  As hundreds of thousands are laid off in the private sector in the coming weeks, it will be hard to argue that any politically provisional patronage should remain -- and the municipal unions will have as much of a fierce argument against such political hires.

"Administration officials didn’t take the criticism laying down. They oint out that the percentage of city employees who are provisional has fallen from 16.8 percent at the end of 2001 to 2 percent now, a figure that is amongst the lowest among upstate city’s. Gronowski says the city has done a good job bringing down the number of provisional employees, but needs to  do more  when it comes to  provisional workers in the mayor’s office."

Yet they gave the Conservative chair an 8.04 percent increase in salary. I'm sure others made more.

A more conservative gesture would be for all provision employees to voluntarily defer their salary increases, as News Copy is learning at least one municipal union has done this week.

Meanwhile, the Yonkers Tribune reported that Democrat Chuck Lesnick, the Yonkers City Council President, has allowed his own staff to enjoy some dramatically inflated salaries.

Range of salaries increases since January, 2006 have ranged from nearly twenty percent to over 60 percent.  It makes the salaries and the salary increases of Gail Burns and others look tiny. 

Republican Math On New York's Public Budget Crunch: $3,875 Annually

The Daily Politics had Republican Assembly Minority Leader Jim Tedisco's math on what a family of four in New York State (making only $45,000 after taxes) will additionally incur this coming year due to Governor David Paterson tax-happy budget.

$3,875.00 annually.

In Westchester and Long Island, it's 2-3 times higher.

2009-10 Executive Budget Impact on a Family of Four
Proposed Initiative		Family Impact
Environmental Protection
	Groceries - Expanded Bottle Bill	$73.00
Health, Department
	Covered Lives Assessment	$73.00
Higher Education
	Tuition Increase at SUNY and Campus fees	$720.00
	Loss of TAP eligibility due to new minimum 15 credit per semester requirement	$755.00
Motor Vehicles
	Increased registration, plate, document and photo fees	$130.00
	New requirement - Drivers Education Class before permit	$450.00
Personal Income Tax
	Tax filers (paper filers)	$20.00
Parks and Recreation
	Golfing Fee	$25.00
	Park Admissions Fee Increase	$20.00
Real Property Tax
	Increase of property taxes as a result of reductions in school aid & AIM and 5-yr average property tax increase (7.99%).	$558.00
	Elimination of Middle Class STAR Rebate Checks	$386.00
	Increase Traditional STAR "floor" from 11 to 18 percent	$40.00
Sales and Use Taxes
	Cable and Satellite Sales Tax (Cable and On-Demand Movies)	$88.23
	Tobacco & Cigar Reclassification	$5.00
	Discount Coupon Sales Tax	$50.00
	Clothing Sales Tax Repeal	$160.00
	Miscellaneous New Taxed Services (Barber Shops, Salons, gyms, etc.)	$45.00
	Flavored Malt Beverage Tax	$5.00
	Prepaid Cigarette Sales Tax Increase	$2.92
	Digital Products Sales Tax	$16.00
	Motor & Diesel Fuel Tax Cap Repeal	$25.00
	Soda & Beverage Sales Tax	$122.29
	Excise Tax on Beer & Wine	$13.13
	Auto Rental Tax	$2.08
	Additional Sales Tax on Transportation (Limos, Taxis and Chartered Services)	$12.50
	Sales Tax on Amusements (Movies, Sporting Events, etc.)	$40.00
	Capital Improvement Restrictions	$33.33
State Police
	Motor Vehicle Law Enforcement Fee	$5.00
Grand Total		$3,875.48

$1.4 Billion Investor in Bernard Madoff's $50 Billion "Ponzi Scheme" Commits Suicide

Bloomberg has confirmed that Madoff investor Rene-Thierry Magon de la Villehuchet committed suicide.

Stuff like this leaves one wondering if there is a bottom.

Gothamist had the story.

"Mr. de la Villehuchet had been trying to recover the money that Access International raised in Europe and invested through Mr. Madoff’s business." And de la Villehuchet's friend told AFP, "Access was his whole life, and Madoff was a manager in whom he had complete trust. I lunched with him two weeks ago and he said, how lucky it was that Madoff was the only manager still doing well at the moment."

Liar's poker.

New York Republican Assembly Minority Leader Victim Of Identity Theft Scam

The Albany Times Union had this story on Assemblyman James Tedisco of Schenectady victimized again by identity thieves.

"ID theft can happen to anyone," he said in a statement. "That's why it is so important people are vigilant and on the lookout for ID thieves who would try and steal your Social Security, credit card, PIN number, bank account information, lines of credit, or even your good name and reputation."

Been there, done that, have the t-shirt.

Once you experience being impersonated online or have your credit raped, particularly, you begin to appreciate why many people prefer to live "off the grid" than be terrorized by these cheap criminals.

Return of The Franken: Minnesota Recount Enters "He Said, He Said" Stage

Real Clear Politics reported that Al Franken now has the lead in Minnesota's long-running U.S. Senate race, maybe:

"The two campaigns and the secretary of state's office are negotiating how to handle an estimated 1,600 improperly rejected absentee ballots. In addition, the state Supreme Court was scheduled to hear arguments Tuesday over a Coleman claim that about 130 ballots were counted twice."

If I had to lay bets, this is headed to some higher courts.

"Now, Coleman's hopes hinge on two different scenarios: winning more than half of the votes in the improperly rejected absentee ballots or pulling ahead after alleged duplicate ballots are removed from the vote count — if the campaign's attorneys can first convince the state Supreme Court that there is a genuine problem with duplicate ballots. The Franken campaign has disputed that claim.

It's all "he said, he said" now.

Yes, Ms. Pelosi, There Is An Automotive Industry Bailout

They don't all like President George W. Bush down in Alabama:

Bush's auto bailout an Edsel-sized goof:  Birmingham Press-Register

"With the bailout of Detroit, the nominally Republican president has now secured a dubious place in history. He will be remembered as the president who presided over the largest expansion of the federal government's role in the U.S. economy since Franklin Roosevelt."

$17 billion to do what?

Democrats wanted the bailout, before Election Day, when Bush had balked.  Then Pelosi and company backed off, once they had secured the union vote.  Now everyone has starting dancing with the bailout formula, as if money just grows on trees ...

... And I'm sure House Speaker Nancy Pelosi will find some reason to public criticize the President, either some element of the bailout or some political posturing that has no place as American is struggling to make ends meet.

There is this guy named Ron Gettelfinger, head of the United Auto Workers (UAW) who Business Week reported may still make everyone's life miserable. 

"If General Motors (GM) and Chrysler executives want federal loans beyond the initial $17.4 billion provided by President Bush and the Treasury Dept. on Dec. 19, they will need to wring concessions from the United Auto Workers. And that means dealing with Ron Gettelfinger."

CNN reported that 6 out of 10 Americans support a bailout but 3 out of 10 don't support additional assistance.

 

 

"Two Cents" On The U.S. Economy: The Sky Is Forecast To Fall

I shouldn't joke.

A Starbucks employee told me last night that 4 out of 10 customers had been telling him during the day that they were just laid off ... And this is in a Starbucks in the north end of Eastchester, the heart of sleepy suburbia and this kind of story has been repeated to me a dozen times over the past week throughout the sleepy suburbs of New York City.

U.S. Economy: Housing Prices Collapse at Near-Depression Pace -- Bloomberg

Down nearly 9 percent, the most since records began in 1968 and was described as likely the largest since the 1930s, the National Association of Realtors said.

Did I mention that I'm a Realtor?  ... 

It's been a rough year in real estate.  Those of us in real estate sort of saw the deconstruction of this economy implode before our eyes, over the past two years.

 Anyone with their eyes open knew it was coming.

Is "Patronage Day" Really Over In New York? -- Malcolm Smith Calls For Public Authority Right-Sizing

Liz Benjamin at the New York Daily News  had this insightful story Thursday on State Senator Malcolm Smith's calling for consolidation of some public authorities.

"I was always for attrition," Smith said. "We have 12,000 people who retire every year...This is a very difficult time. Everybody has to step up. They have to come to the table. There has to be shared sacrifice. You can't say, 'Do what you have to do, but don't touch me."

Smith's push for the consolidation of approximately 600 authorities agencies would go after New York "shadow government" -- often a fiscally unaccountable layer of government.

Liz Benjamin asked Smith if his "streamlining" of authorities (the State Senator specifically gave as an example those agencies with a potential duplication of services) would result in a further reduction of the state workforce, a good question given the fact that New York State already has its share of unemployed. 

"Yes," Smith answered and pointedly added, when I noted that authorities have long been a hotbed of political patronage jobs: "Patronage day is over."

That's tough talk from a Democrat.  Liz Benjamin added that it is nothing new for Malcolm Smith, who has brought these ideas up last year.

Of course, those public authorities are also where a lot of former Pataki patronage nested themselves after 2006, so Smith's budget knife has a partisan tinge.

The Media Descends Upon Caroline Kennedy: Saturday Night Live Awaits!!!

I was snowed in, without the Internet; technology free for a couple of days.  I actually trudged down the hill to a local coffee shop and bought a newspaper!  You forget what print is like when you blog or rely on a computer.  You also realize how much of a show newspaper layout has become these days.

The fonts are getting BIGGER.  HEADLINES, color photos and some words ...

... And I'm getting bored of Caroline Kennedy.

Are you getting bored of Caroline Kennedy?  Nothing personal but this entire U.S. Senate thang has become a reality t.v. show.  There are more important things to worry about than Caroline's chances of becoming U.S. Senator.  There is the budget, the debt, taxes, Wall Street, layoffs and a lot of people walking around in shock right now as our economy deflates.

Kennedy Q. and A. (finally):  The New York Times

But they were submitted questions, like a take home exam.  This is what Hillary Clinton did when she first ran for U.S. Senate.

I always felt her campaign manager, Bill Di Blasio did a better job of running for U.S. Senate than his boss, since he usually answered all the questions.  He was the smart one, finding a good local council seat in Brooklyn.  I'm not surprised he took such a good lead on the term limits issue.

As for Caroline Kennedy's answers to the take home exam:  She's a big D Liberal Democrat who takes no stand on a property tax cap or the millionaire's tax.  She doesn't support school vouchers.  She supports the Democrat's bailout package for the automotive industry and wants to see the state close the Indian Point nuclear power planet.

One good idea:  Kennedy would require that undocumented workers get documented and learn English (bet she borrowed that idea from Governor Arnold).

How long before Saturday Night Live starts parodying her?

Upstate New York Has Its Issues With Governor's Taxaholic Budget

The Press and Sun Bulletin out of Binghamton polled New York residents.

• 51 percent objected to the taxes/feed in Governor Paterson's budget.
• 67 percent supported the merger/consolidation of local governments to save money.
• 68 percent didn't believe the State Legislature was doing a good job.
• 45 percent approval rating for Governor Paterson

Southern Tier school administrators are worried about the "new fiscal reality" out of the State Capitol.

According to figures from the state Division of the Budget, cuts in Broome County would range from $1.6 million at Vestal to $55,783 at Deposit. Among area schools in Chenango and Tioga counties, cuts go from $397,636 at Norwich to $153,464 at Tioga Central.

"This appears to be more of a cut than I was hoping for," said Allen Buyck, superintendent of the Broome-Tioga Board of Cooperative Educational Services, which covers 15 school districts in Broome and eastern Tioga counties.

The aid cuts will have varying impacts on districts, depending on how much they rely on state aid to pay their bills, Buyck said. In Broome and Tioga counties, state aid can pay as much as about 75 percent of the costs in low-wealth district, such as Whitney Point to 30 percent of costs in Vestal.

School aid is cut by 3.3 percent (nearly $700 million), from the current fiscal year, to a total of $20.7 billion. State aid has still have increased by 42 percent since 2003-04, the governor said. The 2008-09 budget had record school aid increase of $1.75 billion statewide.

The Poughkeepsie Journal reported on how Paterson's proposed budget impacts the Mid-Hudson Valley.

The IBM deal in Dutchess, totaling $140 million in state aid, goes on as planned:

"... With $65 million from previous-year funding for the East Fishkill semiconductor plant and then, in this budget, $50 million for an upstate chip packaging development center and $25 million for enhancement of the Albany NanoTech chip research center.

"To get that money, Paterson proposes to shelve a total of $375 million in low-priority capital authorizations, with $275 million going to support "critical economic development initiatives" such as IBM."

But Dutchess County school districts face a loss of $20 million in school aid.  Ulster will lose $11.5 million.

Could Andrew Cuomo Shift His Support To Caroline Kennedy?

CBS News drew this story off Politico, speculating that Andrew Cuomo's respect for Caroline Kennedy might prompt him to withdraw his name from consideration from New York's U.S. Senate appointment.

"Forget all the political stuff, there's a real personal element here," said a Cuomo confidant, speaking on condition of anonymity. "He loved -- loved -- John John and always had a great relationship with Caroline. [Competing against her], that will be tough for him. She not the type of person he would play hard ball against."

Kennedy and Cuomo: A Side-by-Side Comparison (FOX News)

My sources insist that Andrew is too much of a family man to take a job too far away from his children.

The Associated Press reported Ms. Kennedy's publicly stating her intentions, while on a barnstorming tour of Upstate New York today.

"I just wanted to say, as some of you may have heard, I would be honored to be considered for the position of U.S. senator," Kennedy said. "I wanted to come upstate to meet Mayor Driscoll and others to tell them about my experience and also learn how Washington can help upstate New York."

But she didn't field any questions from the press, a big mistake.

I won't try to ponder why The New York Post has already endorsed a person who is yet to engage New York's press corps in any question and answer session.

Long Island's Newsday had the results of Siena's U.S. Senate poll.

Cuomo leads with 26 percent, Kennedy with 23 percent, upstater Kirsten Gillibrand's numbers have doubled with 7 percent, upstater Brian Higgins 6 percent and Nassau's Tom Suozzi at 5 percent.

No sign of Steve Israel in that poll, who made like Speed Racer following Caroline into Western New York.

U.S. Automakers Begin Month Long Closure of Car Plants Nationwide

Chrysler shuts down all production:  CNN

Chrysler, Ford Idle Plants; GM Halts Engine Factory:  Bloomberg

Top 20 Candidates for "Car Czar":  The Motley Fool

 

Caroline Kennedy Gets A Little Competition: Steve Israel Heads Upstate Too

I'm not sure of the rationale but my sources in New York State's Democratic Party hinted to me that Long Island Congressman Steve Israel always had the inside track to being appointed New York's next U.S. Senator.

Now Israel is head to Buffalo, where he will go head-to-head on the same turf with Caroline Kennedy.

I knows she's everyone's favorite and all (and I'm already sold on why she would be an excellent -- as much as I still think Kirsten Gillibrand would be much better) but someone better tell Ms. Kennedy to hold a press conference.

California Dreamin' 2008: They're In Deeper Fiscal Mess Than New York

For years, I would hear from my friend out on the west coast about how great it is out there (the traffic, the earthquakes, the flash floods, the fires).

Okay ... I have admit the freeways -- when there wasn't traffic -- had me envious.

The Los Angeles Times reported that the state's top three financial officials voted unanimously today to freeze $3.8 billion in financing on road, levee, school and housing construction projects throughout California.

You know all those wonderful public works projects that Mr. Obama is planning to start nationwide?

Don't count on it going over so well in California, where they don't have the money to buy the shovels.

"More than 2,000 other projects include park improvements, environmental restoration and repairs to state prisons. Many of them were authorized by voters in 2006 and championed by Gov. Arnold Schwarzenegger in his reelection campaign that year."

Who are those three officials with permission to stop everything?

"Today's action was extremely regrettable but the responsible and right thing to do," state Treasurer Bill Lockyer said after the vote by the obscure Pooled Money Investment Board, which he runs with state Controller John Chiang and Schwarzenegger's finance director, Mike Genest.

"We had no other option to keep crucial public services operating as long as possible," Lockyer said. "But it's now official -- the failure to solve our budget problem has put in grave danger billions of dollars in revenue for our businesses and thousands of jobs on which our workers and families depend."

California's treasurer said that halting public-works projects would have a ripple effect through California's economy, costing private companies $12.5 billion and eliminating 200,000 jobs.

New York State Conservative Party Leader: Taxes Addictive Habit

New York State Governor David Paterson actually did increase spending, in addition to raising taxes, and State Conservative Party Chairman Mike Long is reminding Paterson that taxation is an addictive.

The Daily Politics reported Long noting Paterson's own words on such bad habits:

"The reason I'm avoiding taxes is because I think taxes as addictive. And I think what happens when you start taxing is people start thinking of ways to spend the money that you raise...That as an initial option for the time being is something I don't want to explore."

But back to that spending, which isn't such a healthy practice either, Mike Long was in rare form -- criticizing the Democrat on his "big nanny-state government beliefs."

"Spending must be cut, every bit of waste must be eliminated, every program that can be consolidated should be, every available option to reduce the tax burden must be made before any tax is raised,” Long said.

That should included renegotiating municipal contracts (to at least defer salary hikes), which might remove the need to layoff state workers next year, but layoffs are probably coming too.

Long warned Governor Paterson to remember his own pledge to avoid taxes -- again repeating the economic principles that have been the rallying cry of the Conservative Party since its formation in 1962.

"The new taxes you propose will only drive more businesses and people out of New York. Every leading economist knows you cannot tax your way out of a recession and with your new tax proposals, you are proving that ‘people start thinking of ways to spend money.'"

Incidently, the Room Eight blog had an overview of minor parties and "the margin of victory" for some key races around New York State -- and the Conservative Party figured prominently in a number of wins.

No Republican has won New York State in over 35 years without support from Mike Long's party.  There have been some tugs of war with the Independence Party, with eiher Democrats or Republicans taking advantage, and Democrats usually drawing an edge in liberal areas with the Working Families Party.

Caroline Kennedy Wants To Be New York's Next U.S. Senator: Heads Upstate

50 words or less.

Caroline Kennedy wants to be U.S. Senator.  She's campaigning upstate.  Siena's poll shows Andrew Cuomo ahead 26-23 percent (18 percent undecided).  Kennedy's making statements but not yet fielding questions.

Her first press conference is going to be a hoot.

Maybe Ms. Kennedy will say somehing about Governor Paterson's proposed budget?

Suburban New York State Hardest Hit By Proposed State Budget: Westchester County Executive "Ebullient"

Responses to Governor Paterson's proposed State budget from The 'Burbs varied.

The Journal News blog Politics on the Hudson described Westchester County Executive Andrew Spano as "ebullient" about the Executive Budget.

“Governor Paterson’s budget calls for everyone to buy in. It calls for shared sacrifice and shared pain, because that is the only way to move New York ahead. The door is open to smart decision-making, as the Governor alluded to.” Spano said.

Buy in.

That's a distinctly partisan comment from Spano, akin to a parrot.

How could he be so supportive when Westchester has always been the last to get anything from State bureaucrats?

As Liz Benjamin of the Daily News acutely referenced today, Westchester's State legislative delegation hadn't been happy LAST year with aid formulas that shorted local school districts (from a 4/1/2007 Capitol Confidential story).

Westchester hasn't been happy for a while.  Long Island has historically always grabbed more school aid than its northern suburban neighbors across The Sound.

The Daily Politics also reported on outgoing State Senate Majority Leader Dean Skelos detailing how the suburbs will be even harder hit by Paterson's budget.

"... when it comes to straight education aid cuts, Long Island is slated for an approximately 18 percent decrease, according to Skelos, which is a big chunk of change when you consider (his numbers again) that the districts there normally get a 13 percent increase."

The Journal News reported that local schools throughout the lower Hudson Valley would receive $772 million in school aid next year, down nearly 7 percent from what schools are getting this year.

The proposed cuts - more than 12 percent in some Westchester and Rockland districts and part of a plan that also calls for the elimination of the School Tax Rebate check program - come as the governor seeks to close a two-year, $15.4 billion budget gap.

"Certainly, we would anticipate taxes would have to be impacted," said Mount Vernon Superintendent W.L. "Tony" Sawyer, cautioning that he hasn't determined how $3.9 million in cuts would affect the district. "We came into this school year in the red, and with a cut like this, it's going to be very challenging to get out of the red."

Some of the region's smaller districts face the largest percentage cuts. Nanuet schools would lose $808,000, or 12.9 percent, and Bedford's proposed 12.8 percent cut would mean the loss of $778,000. White Plains also would lose 12 percent of its state aid with a cut of $2 million.

Meanwhile, Paterson shaved $9 million in aid from Yonkers schools, $1.4 million in Peekskill and $2.9 million in Clarkstown.

Around here, it's all bad -- especially as the suburban regions now brace for the impact of reduced mortgage and property tax revenues as foreclosures start to rise (and more people grieve their taxes).

 

Across The Empire State: New York Braces For More Municipal Fiscal Pain

The New York Post had a graphic of Governor David Paterson looking like a boxer.

Post headline: "Tax Hell"

137 proposed new and hiked taxes (the previous number had been 88).  Spending was increased by $1.4 billions.  3,000 State jobs eliminated.  $700 billion from schools.  $4 billion in new taxes.

Fred Dicker:  PATERSON DISHES UP THE SAME OLD ME$$

"Gov. Paterson yesterday channeled the original architects of the state's fiscal mess, former Govs. George Pataki and Mario Cuomo ..."

The New York Times called this an "austerity" budget -- with teachers and healthcare unions spinning everyone else's woes.

“Kids did not create this crisis, and they should not bear the burden of it,” said Randi Weingarten, president of the United Federation of Teachers, the New York City teachers’ union.

In a joint statement, George Gresham, the president of 1199 S.E.I.U. United Healthcare Workers East, and Kenneth E. Raske, president of the Greater New York Hospital Association, said, “Today is a dark day for health care in New York.” They added, “These are staggering cuts that would shatter New York’s health care infrastructure.”

Maybe these union leaders will voluntarily defer salary increases (or re-negotiate contracts?), since they're feigning such compassion.

The Times reported how municipal unions are upset about a new pension category that would end "20 and out" for police and firemen, a Tier 5 for state employees

My parents, both New York City school teachers, were on Tier 1 -- admittedly a healthy pension package -- but that generation put a lot more into their pension with each paycheck than today's municipal workforce.

Long Island's Newsday had a "Viewsday" entitled "A budget diet for lean times"

Newsday pointed out that Paterson’s balancing act makes Albany a case study for the national debate between progressive economists and “anti-tax ideologues" -- quoting David Sirota from the Huffington Post:

“That's right, in one of the most unequal states in the country—in a state that domiciles some of the richest financial industry fat cats in the country—the governor is against even a slight increase in income taxes on the highest earners. Somehow, he thinks it will be better to punish his state's working-class with the double-whammy of service cuts and tax increases.”

Sirota's opinion piece in The Huffington Post (he also appeared on Your World With Neil Cavuto) led to the argument for the "millionaire's tax" -- something gaining support around New York State with those in the lower middle-income bracket.

Sirota pointed to a poll conducted by the Working Families Party (not my favorite organization) where 75 percent of New Yorkers support such a tax on the upper income bracket.

The problem with that poll (you can see it here) is that more than half polled were in the lower middle-income bracket, perhaps indicative of parts of New York State - but such polls by the unions won't ever tipped in the favor of most taxpayers.

The unions just don't want to defer any raises.

But Liz Benjamin of the New York Daily News reported on another poll, this one by Siena, that does show a majority of New Yorkers (68 percent) craving a greater tax on the wealthy.

Of course, the "wealthy" can just pick up and move to Connecticut or New Jersey -- and many just choose to retire to another less taxing state -- along with moving many a local business on "Main Street" to another state too.

I agree with the theory expressed on The Daily Politics by Liz Benjamin that the Executive Chamber is steering sentiments to bring about almost an insurection for a millionaire's tax -- by taxing everyone else -- but the Governor is also considering the economics.

New York State Governor Paterson has seen the same statistics the New York State Conservative Party and many other good government groups have been discussing for decades.  People vote with their feet in New York.  They move away, either because they can't afford to live here or they have the option to vacate the premises.  If Democrats get away with a "millionare's tax" this year, next year there might be a lot less millionaires around to tax.

Also, you don't jumpstart local and state economies by over-taxing the same cross-section of the population who will be hiring a lot of New Yorkers.  Even President-Elect Barack Obama is talking about sustaining the Bush tax cuts.  The Laffer curve is no laughing matter -- and bringing back Paul Volker is no mirage either.

Republican Response To Governor's Proposed Budget: New Yorkers Will Suffer

Newsday had State GOP chairman Joe Mondello's reaction to New York Governor David Paterson's budget.

"Increasing spending while raising taxes on everything from clothing and automobiles to health care and state parks will drive hard working families and successful businesses out of state. This, in turn, will lead to additional future tax increases and perpetuate a downward economic spiral."

Outgoing State Senate Majority Leader Dean Skelos had a problem with the nearly $6 billion in taxes and fees that were included in Paterson’s proposal, reported Capitol Confidential.

"We simply cannot raise taxes when our economy is struggling.  Upon first review, the Governor’s budget does not appear to include any plans to create new jobs and strengthen our economy, especially Upstate.  Nor does the Executive Budget call for any further investments in our highway and bridge infrastructure that is so critical to our economy."

Republican Assembly Minority Leader Jim Tedisco, like Skelos, initially played good cop by praising the Governor for an early budget proposal, but then put forth a populist message against Paterson's taxes/fees -- and did a "feel your pain" spin.

"All across New York, people are losing their jobs.  Businesses are closing.  Middle class families are hurting and being forced to cut back in almost every area.  It is even worse across Upstate, where our economy is in shambles, where so many communities have been devastated by a continued loss of manufacturing jobs.  Things are not much better on Long Island, where the high cost of living and lack of affordable housing hurts families and first-time homebuyers."

New York City Mayor Michael Bloomberg put it all another way.

Liz Benjamin of The Daily Politics reported that Bloomberg could be laying off city workers if Paterson's budget is approved "as is" by the State Legislature -- an estimated a "$1 billion hit" to the city's budget in 2010 -- a loss of $600 million in education aid and another $654 million less in revenue-sharing.

"That’s an awful lot of city employees," Bloomberg said. "That’s 12,000-odd city employees. In the end, we cannot print money. This city’s budget is fundamentally a labor budget. In many of our city agencies, 90% of our expenses go into labor.”

That doesn't sound like a Republican (or someone who is planning to run statewide as a Republican).

When All Else Fails, Launch A Blog: New School President Bob Kerrey Has Some Fun

There are worse things that a former U.S. Senator could be doing.

The New York Times reported that Bob Kerrey, president of the New School, has started a blog.

Blogging can become verbal brawling, as readers of News Copy know too well, but I have to give Mr. Kerrey credit.

A sample of comments on his blog (entitled "Blogging with President Bob Kerrey") indicates that the "anonymous vitriol" has already started.

“You have stolen our New School from us, Bob Kerrey,” added Anonymous at 9:39. “We want it back.”

Even a former U.S. Senator can catch flack on here.

New York's 2009/1010 Executive Budget: Taxes, Fees And Cuts In Local Aid

The news blogs covered New York's financial heap of trouble, as did news outlets throughout the state.

Upstate, out of the state capitol, the Albany Times Union blog Capitol Confidential tried to summarize it all.

The bottom line is a projected a $1.7 billion current-year shortfall, and a $13.7 billion deficit in 2009-2010.

It was a day of taxes and fees, new and increased, a list so long that I won't dare try to frame this fiscal picture in one blog post.

88 taxes and fees slated for increase.

Liz Benjamin of the New York Daily News blog Daily Politics had Paterson's budget by the numbers.

"Technically speaking, for all you budget wonks out there, General Fund spending would hold at $55.4 billion under Paterson's proposal, while State Operating Fund spending (that's state revenues minus any federal money) would actually increase slightly by $400 million to $79.8 billion.

"All Funds spending would total $121.1 billion which is an increase of $1.3 billion (1.1 percent) - the lowest growth since 1996-97 (that's Republican Gov. George Pataki's second budget) when all funds spending decreased by .4 percent."

It's a $121 billion budget.

The Daily Politics also did it's own careful top to bottom review of the taxes and fees:

"The $4.1 billion package of so-called "revenue enchancements" - a policy PC way of saying tax and fee increases - includes something for everyone (unfortunately) and also disproportionately hits things that one might consider non-essential.

"In other words, anything fun."

In what could be the start of a fiscally sado-masocistic budget process for New York, Liz Benjamin repeated what likely will be the mantra to taxpapers for the next year or more.

You Will Pay! (And Pay! And Pay!) Taxes And Fees, Take II

Too true.

We will all pay.

New York State's Executive Budget Reveals Fiscal Hardship Ahead: Taxpayers Versus Unions

No surprise that the union-bent Working Families Party (WFP) doesn't like New York State Governor David Paterson's executive budget for 2009/2010.

Public unions closely associated with the WFP (think the old American Labor Party) would like to see a "millionaire's tax" to ensure enough revenue to avoid the inevitable:  Re-negotiation of municipal union contracts.

Reuters had the details on Paterson's executive budget.

It's gonna hurt.