THE "PORK" IN NEW YORK, Thoughts of an older American on Constitutional Government in the USA Options

[Livyjr]

"No red flags in Spitzer campaign, state expense reports"

By DAVID B. CARUSO, Associated Press

Last updated: 2:02 p.m., Friday, March 21, 2008

NEW YORK -- Ever since the news broke that former Gov. Eliot Spitzer was a client of a high-priced prostitution ring, people have wondered: Did he use taxpayer dollars or campaign committee money to subsidize his trysts?

An analysis by The Associated Press of a year's worth of expense reports for Spitzer's office and his 2010 campaign shows little sign that those funds were used to pay for illicit activities.

Federal prosecutors have yet to weigh in on the matter; so far, only the alleged organizers of the prostitution ring have been charged.

Spitzer resigned last week just days after he was identified as a client.

Expense reports filed by Spitzer's campaign committee show plenty of far-flung travel for the governor, but nothing in them overtly suggests that he was taking prostitutes along or making frivolous jaunts as an excuse to be alone in a hotel room.

There are no payments from the committee to any companies that have been identified by federal authorities as fronts for prostitution.

The committee's lawyer, Kenneth Gross, said he has seen no evidence that the organization paid for hotel rooms for people who weren't on legitimate campaign business.

"We had a really good system, and we carefully reviewed not only the contributions coming in ... but also on the expenditure side," Gross said.

Records of Spitzer's state-issued credit card also show no obvious sign of having been abused for extracurricular pursuits.

Between September and February, the governor charged $4,056 in travel-related expenses to the state, including three trips to Washington D.C. and another to a conference with Hispanic lawmakers in Puerto Rico.

But he did not use his state card to pay for the two rooms that FBI agents said he used to arrange a Feb. 13 encounter with a call girl named Kristen at Washington's Mayflower hotel.

Spitzer's campaign didn't pay for the rooms either, suggesting that the governor -- a millionaire -- paid with his own money.

That doesn't mean that taxpayers were spared any expense associated with the trip; records filed with the state comptroller's office show that the government paid Spitzer's air fare and for hotel rooms for two aides and two State Police troopers who accompanied him on the trip -- all at a cost of about $1,070.

The governor's official business in Washington that week was testifying before a congressional committee about problems in the bond insurance market.

Spitzer has told aides and his legal team that he never spent public or campaign dollars on prostitutes.

What all this means for the federal inquiry into Spitzer's conduct is unclear.

Even if authorities find that Spitzer had trysts in hotel rooms that were paid for by his campaign, a prosecution may be difficult.

Using campaign money for private purposes is illegal, but candidates are generally given wide leeway on spending that may have a dual purpose.

For example, a committee wouldn't normally face sanctions for flying a candidate to the Caribbean for a long weekend, as long as he or she attended a bona fide political fundraiser on the same trip.

"The definition of 'personal use' is so weak that candidates can justify just about anything," said Richard Dadey, executive director of the government watchdog group Citizens Union.

"Basically, if you can make any theoretical case that the expense was tied to running for office or holding office, then it's OK," said Russ Haven, legislative counsel for the watchdog group NYPIRG.

Remarkably, Spitzer's successor as governor, David Paterson, disclosed shortly after taking office that he also had had extramarital affairs, and may have improperly billed his campaign committee for hotel rooms used in the flings.

Some of those payments were later reimbursed, and a fuller accounting is now under way.

Federal prosecutors in New York, who are leading the prostitution investigation, have not said whether they intend to charge Spitzer with any crimes.

The day Spitzer resigned, U.S. Attorney Michael Garcia said the governor's departure was not part of a plea bargain.

A senior law enforcement official speaking on condition of anonymity said "it's doubtful" that the U.S. attorney in the District of Columbia will bring prostitution charges against Spitzer in connection with his tryst the day before Valentine's Day, although the topic is still being discussed.

Potential violations in D.C. would be a misdemeanor charge and a requirement to attend so-called "johns school," aimed at rehabilitating prostitution solicitors.

The law firm representing Spitzer in the case referred inquiries to a publicist, who declined to comment.

Spitzer 2010 had about $2.9 million in unspent campaign funds when he resigned.

A spokesman for the committee, Jonathan Rosen, said the money will be distributed "in accordance with all applicable laws" but didn't outline where it would go.

He said it will not be used for the ex-governor's personal legal fees.

State law would allow the committee's millions to be spent in a variety of ways, including on donations to other Democrats or contributions to charity.

He also could return it to donors.

The New York State Republican Party said the committee should give the money to a charity "committed to helping young women avoid self-destructive lifestyles."

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NEW YORK MAGAZINE

"The Steamroller in the Swamp - Is Eliot Spitzer changing Albany? Or is Albany changing him?"

By Steve Fishman

Anger, as Spitzer explained it, was linked to the best, most optimistic side of him.

On inauguration day, January 1, 48-year-old Eliot Spitzer, Princeton class of ’81, Harvard Law class of ’84, heir to a real-estate fortune, and the most famous state attorney general in America, stood on the steps of the state capital and declared that everything in Albany must change, as he’d repeatedly vowed during his campaign.

“Day One is now,” he told the crowd.

“The light of a new day shines down on the Empire State,” he said, inviting the assembled to join him on his journey of reform.

Spitzer made a point of recruiting bright people; he’s a student of résumés.

“The reality is Spitzer does have the smartest people in the room working with him,” says one aide.

http://nymag.com/news/features/34730/

"Bouts of fury preceded governor's fall - Aides say frustration led Spitzer to grow ever more ambivalent about his job"

By DANNY HAKIM and MICHAEL POWELL, New York Times

First published: Sunday, March 23, 2008

The e-mail message was time-stamped Dec. 18, 2007.

It was sent at 5 a.m.

It did not mince words.

"I've been up all night, I haven't been able to sleep thinking how we've gotten to this position," it began, according to one recipient's recollection.

The author of the e-mail message was Eliot Spitzer, the 54th governor of New York.

His administration was just days from the end of its first year, and his poll numbers were abysmal.

And now the morning newspapers had another report of another set of subpoenas issued as part of an investigation into the administration's effort to tarnish a Republican rival.

The heat of Spitzer's frustration and anger, according to two senior aides who read the early morning message, all but radiated off their computers and BlackBerrys.

Spitzer ordered a 7:30 a.m. conference call.

He canceled plans to attend a forum in the Bronx on predatory lending in poor neighborhoods, suggesting it was a waste of time when "everything was falling apart."

One aide recalled the thrust of Spitzer's fury: We're disasters; I am surrounded by idiots.

Another remembered it this way: Rome is burning, and I'm supposed to be up in the Bronx talking about predatory lending.

Spitzer announced his resignation 11 days ago after reports of his involvement as a client of a high-priced prostitution ring.

Interviews in recent days with a handful of people close to Spitzer suggested that no one had figured out, for certain, what had happened.

Was Spitzer's conduct an aberrant episode?

Or had the man they had served with passion and devotion been living a secret second life for years?

"Nothing from my experience meshes with this, so it's hard not to feel badly for him," an aide said.

"As torn as we are and confused by it all, he was great to work for and it's a loss."

It is hard to say what role, if any, Spitzer's escalating disappointment in Albany played in his self-destructive behavior, and it remains unclear when his once seemingly idyllic life went so awry.

But the interviews with his aides and others who encountered him over the last several months made it clear that he had come to feel deeply ambivalent about his job as governor, the latest, grandest political prize in what many calculated would be a rise that could take him to the White House.

In fact, several aides said that 14 months into his term, he felt profoundly exasperated with the experience of trying to bend a powerful and divided State Legislature to his will.

He just could not accept the way things worked, or didn't work, in Albany, the aides said.

He was offended to the point of distraction by the fact that his chief rival, Joseph L. Bruno, the Senate majority leader, was seen by many to have outmaneuvered and outwitted him.

Bruno had taken to calling him "a spoiled rich-kid brat."

And the aides, all of whom spoke on condition of anonymity out of deference to Spitzer, said the former governor, for all of his estimable brilliance, was often a poor chief executive: combative, micromanaging, and unable to take a long view when things went wrong.

Despite Albany's often dysfunctional ways, there were allies to be had, coalitions to be assembled.

But he most often saw them as enemies, all part of a system that had thwarted reform.

Fury and moments of surrender characterized his last nine months, but his legendary outbursts seemed particularly ill-suited for the role of executive.

Spitzer's unhappiness generated its own collateral damage.

One aide said Spitzer had developed an appetite for more than the nightly glass of scotch.

And his wife, a loyal and reliable support during Spitzer's years of unchecked success, appeared to find the role harder to play when each month seemed to bring some fresh setback.

But if much of Spitzer's undoing remains hard to fathom, there are, for those who worked with him or encountered him of late, indelible images of a man who had seemed so suited to his last job, struggling to find his way in his new one.

Albany, July 9: The Capitol

Eliot Spitzer sat in his office on the second floor.

He began talking with his usual bravura and staccato pace about the ugly breakdown in budget negotiations.

Republicans had been spreading word that the governor had called Bruno "senile."

They said he had sent his men to spy on Bruno, too.

Spitzer seemed customarily confident, even defiant.

However, the life in his voice, like the sunlight late that afternoon, soon began to drain.

And then he was asked a question about his wife.

In that moment the veneer of toughness that he and his handlers had taken years to build up fell away almost completely.

There was quiet for several seconds.

"This, this is harder," he said, speaking with care about his wife, Silda, "because she looks at me and she says, 'Do you really want this stuff?"

"And do you want this for your kids and do you want them to see this stuff?"'

He paused again.

The reporter started to continue.

"Just all the ---- "

"Yeah," Spitzer said.

"It's ugly."

For a second, he flashed again with enthusiasm, speaking of a run he'd taken with one of his daughters the day before.

"We had a great time," he said.

"I ran with Sarabeth in Utica, and it was spectacular."

"She beat me, which was great."

"But then you pick up the papers and you see this stuff."

He paused again, looking nothing short of fragile.

"Well, you know," he said.

"There it is."

His eyes were moist.

Manhattan, Sept. 21: The Grand Hyatt Hotel

The governor's old allies had in mind tough love, not an arm-breaking session.

Dan Cantor, executive director of the labor-backed Working Families Party, and Bob Master, another Working Families Party leader, walked into the lobby of the Grand Hyatt New York.

Spitzer was holding a morning of political meetings upstairs.

The Working Families Party had endorsed Spitzer and worked hard for his election.

But in the last eight months he had fought with the party over his effort to push through a campaign finance bill that would limit union spending on elections and he had repeatedly insulted the powerful health care workers' union and the Democratic-controlled State Assembly.

Richard Baum, the secretary to the governor, greeted them in the lobby, three people who were at the meeting recalled.

Cantor previewed his talk in the elevator: The governor had to massage his allies; he had to move on issues like family leave, which played to his political base.

And he should not view the political world as divided between the virtuous and the venal.

Baum smiled, warily.

"This should be interesting," one person recalled him saying.

The governor was not used to hearing that sort of criticism.

They took their seats in the governor's suite, seven or eight men in a tight cluster.

Cantor cataloged their discontents.

At the end the governor leaned in, his face less than 12 inches from Cantor's.

And Spitzer began screaming.

"You have no standing to lecture me," he said, expletives punctuating virtually every third syllable.

"You're part of the system that is the whole problem in this state."

A year's worth of perceived slights poured out.

Curse piled upon curse, spittle flying.

"In the world of politics, calculated rage is really common," recalled a man who was in the room.

"But this was not calculated; this was pure rage and kind of scary to watch."

Manhattan, March 12: Office of the governor

Eliot Spitzer had taken roughly 100 seconds to announce his resignation before a mob of TV cameras.

He exited the media room into an office hallway.

The corridor was lined with young people -- staff members, secretaries, idealists and overachievers.

He could have easily averted them and walked directly to his office.

But if Spitzer was disgraced, he did not shrink from the challenge.

"He was at the far end, and he made the point of walking down the length of the hallway," said one aide who was there.

"There was a gantlet of people, and he said what he said."

"I don't know how you find the words to talk to a young staff at a moment like that," the aide noted, "but he did it."

Spitzer reassured the young people that their futures were still ahead of them.

He warned against making the same mistakes he had, from the modest to the catastrophic.

"People think it was hubris and that he must have been a fraud, but that's not right," another aide said of the former governor.

"He was a very good man who lost himself due to a combination of factors.

"He wanted so much to change things in Albany, but it didn't work out the way he planned."

"He couldn't meet the expectations of the public or the expectations he set for himself."

"They said he was pushing too hard and not pushing hard enough, that he was Mr. Softee and a steamroller."

"He felt damned if he did and damned if he didn't at every turn."

In such circumstances, without the ability to adjust or relax, "it's only a matter of time before you self-destruct," the aide said.

"Ironically, he knew full well that he was being watched."

"He even talked about it."

"He said: 'If we ever stumble, they'll be merciless.'"

"Those were his words."

The walk down the hallway over, Spitzer cried, one of the aides said.

"I couldn't look," the aide said

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"Felton leaving state police after bumpy year"

By MICHAEL VIRTANEN, Associated Press

Last updated: 1:42 p.m., Sunday, March 23, 2008

ALBANY -- Preston Felton's year leading New York's 5,000 members of the state police was tumultuous: A tactical team member was killed by friendly fire; he was criticized for his role in a political scandal; and a security detail is under scrutiny in the prostitution scandal that toppled Gov. Eliot Spitzer.

Still, his resignation announced last week and effective April 4 caught many by surprise.

That's because Felton, 49, still has supporters.

The New York State Troopers Police Benevolent Association calls him "a good man" who had worked closely with the union and upgraded weapons and safety equipment.

"For that, the PBA applauds his efforts," President Dan De Federicis said.

Gov. David Paterson, who succeed Spitzer last week, said he didn't know if Felton's departure was related to the scandal in which two Spitzer aides were accused of misusing state police records to embarrass Senate Republican leader Joseph Bruno use of state aircraft on trips that involved GOP fundraisers.

That 2007 case remains under investigation by the state Public Integrity Commission.

"I have no idea because I didn't ask him to resign," Paterson said.

"Although I asked all of the agency heads to resign, which is standard when someone new comes in."

"We will keep most of them, and most of them had sent their resignations in, he included, even before we asked for them," he said.

Felton's resignation, however, was accepted.

As acting superintendent, he was the first black to head the force, withdrawing his own retirement papers while a national search was done to replace retiring then 61-year-old Superintendent Wayne Bennett.

When the Spitzer administration appeared ready to consider nominating Felton himself, the scandal involving Bruno's use of state aircraft complicated possible confirmation by the Senate, which is led by Bruno.

Attorney General Andrew Cuomo, a Democrat, concluded in July that Felton created the records for public disclosure at the request of the governor's office, deviating from standard procedures and disregarding security considerations.

Felton responded that he didn't realize he was part of a political scheme.

"I have never, in my 26-year career with the state police, knowingly undertaken any such action and never would," Felton said in a written statement.

"To the extent that circumstances previously not known to me have now given rise to that appearance, I am particularly saddened."

That report led to Senate Investigations Committee hearings, which Felton declined to attend, instead sending the State Police attorney.

Committee Chairman George Winner threatened to subpoena Felton, but never did.

Winner, an Elmira Republican, said Thursday that Felton's retirement won't change his committee's focus, which includes legislative responses to Cuomo's report.

They intend to pursue subpoenas of Spitzer administration testimony and records, which are being challenged in court, he said.

The latest turn for the State Police came with Spitzer's resignation following disclosures he patronized expensive prostitutes, raising questions about what was known by the trooper detail responsible for his security around the clock.

State Police have declined to comment.

The first major incident during Felton's tenure was more deadly.

When 29-year-old trooper David Brinkerhoff died April 25 after a shootout in an upstate farmhouse, Felton immediately ordered an administrative investigation into the shooting that also left suspected gunman Travis Trim dead and Trooper Richard Mattson wounded.

Two days later, Felton stood in front of television cameras and disclosed that Brinkerhoff, a member of the heavily armed SWAT-style unit, was shot in the back of the head by another trooper's assault rifle.

He also said the farmhouse was destroyed that night by a fire apparently ignited by tear gas from police that landed on a bedspread hours after the shootout.

The troopers' union, which harshly criticized the state police leadership under Bennett in the manhunt for Ralph "Bucky" Phillips that left another trooper dead and one badly wounded months earlier, here praised Felton for his honesty to the troopers' families, the PBA and the public.

"This is never going to be an easy job for us."

"When you get up and you put your pants on, you recognize you might not come home that day," Felton said.

He ordered officers on patrol to wear the bullet-resistant vests that previously were optional, while acknowledging some troopers, investigators and higher-ranking officers might ignore the requirement.

But equipment upgrades, following internal reviews and union meetings, included stronger vests for all troopers, and heavier armor for the tactical unit, as well .45-caliber handguns that replaced the 9mm sidearms, 1,400 defibrillators for marked patrol cars, light bars atop cars that include blue lights easier to see in fog, bright yellow reflective vests for highway investigations and directing traffic, fire suppression systems similar to those in race cars in all new Crown Victorias, and two Bearcat armored vehicles.

Felton has declined requests for interviews.

"My observation to Preston Felton was he was doing a very good job under some very difficult circumstances," said Assemblyman James Parment, a Jamestown Democrat.

But he noted agencies are staffed with professionals and they will continue to their job even during a transition.

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"Analysis: Historic time reveals Albany's historic secret"

By MICHAEL GORMLEY, Associated Press

Last updated: 10:13 a.m., Saturday, March 22, 2008

ALBANY -- In two historic weeks, the most popular governor ever elected in New York resigned after he was linked to a prostitution investigation and his successor's administration was immediately weakened when he revealed his own extramarital affairs.

And some individuals, finally fed up with it all, said Albany's age-old mix of politics and sex has gone on too long.

There's a federal investigation into former Democratic Gov. Eliot Spitzer, the former crusading attorney general, and his connection to a $5,500-an-hour call girl ring.

Meanwhile, Gov. David Paterson, despite his extraordinary news conference last week to disclose his extramarital affairs, can't shed questions about whether any of the women received state or campaign money or help in getting public sector jobs.

On Friday he agreed to repay his campaign $250 for two questionable nights' stay at a Manhattan hotel years ago.

Oh, and New York is facing one of its most frightening fiscal crises in history.

Despite alarm on Wall Street, which provides 20 percent of state government's revenues, and an all-but declared recession that could make the big spending in recent years unaffordable, the scandals have helped stall budget talks with a little more than a week to go before the April 1 budget deadline.

"It's pretty devastating right now," said a longtime lobbyist and former legislative staffer who spoke on the condition of anonymity because of the sensitivity of the cases.

"We have a $5-plus-billion deficit, Wall Street is heading south, and the economy is heading south, but all we want to know about is who the governor is" having sex with.

Sex has long been part of Albany's politics, but the time honored "wall of silence" was pierced this week by veterans who are fed up after trying to ignore the string of arrests, resignations, romantic banter in elevators, and rumors that have been part of state government since Gov. Grover Cleveland in the 19th century.

Even lawmakers, staffers and lobbyists who spoke only on the condition of anonymity this week represented a sea change in Albany, where rumors when chased vaporize behind denials, never leaving the capital city.

"You almost have to play that game at the bar to really have access," said one former lobbyist who recently worked Albany as a young woman.

"Some people feel you need to sleep with someone to have influence, or wear short skirts."

"Otherwise, you are looked at as just a little girl ... it's the sex card."

You could hear the Albany culture in the defense of Paterson by lawmakers: At least he didn't pay for sex or break any laws, the lawmakers argued.

Yet what Paterson admitted to is the misdemeanor crime of adultery, still active on the books.

"Elected officials are really just reflections of the people we represent," Paterson said.

Maybe.

But it's easy to see Albany the way one disgusted and longtime legislative staffer described it: A cesspool.

Yet that's not true, either.

As in most cases where groups have a tarnished reputation -- be it the legislature or recent revelations by The Associated Press about the extent nationwide of sex between teachers and students -- the few define the many.

What's also true is no one is publicly standing up to defend the people they serve and who pay their salaries: New Yorkers.

In many cases, however, disclosure could cost them access to power, or their jobs.

Why did Paterson have to reveal extramarital affairs he had when his marriage was headed toward divorce years ago?

Why did his wife have to acknowledge she had one?

Did the Spitzer and Paterson kids have to get smacked this hard by all of this?

"I was puzzled a bit by Paterson and that he somehow felt -- he and his wife felt -- they should go public with their extramarital relationship because as far as I know, there was no conflict with his public responsibilities," said Tom Fiedler, visiting lecturer at the John F. Kennedy School of Government at Harvard University.

Perhaps these extraordinary two weeks also revealed something about the character of two men and a capital city.

Spitzer, after all, is a fighter.

He fought anyone who challenged him to become, perhaps, the best attorney general this state or nation has ever seen.

But within three days of being linked to prostitution, he quit.

He gave up forever the political life that he loved, ending some additional pain to the state and his family.

And Paterson, perhaps, didn't have to make the excruciating disclosures of his affairs at all.

He said he didn't want to compromise the office, or get blackmailed into decisions.

If it weren't for the Spitzer scandal, perhaps those rumors would have remained among so many others involving so many other politicians.

But in the end, the sex card was overplayed these last two weeks.

And it collapsed on Albany.

------

Michael Gormley is the Albany, N.Y., Capitol editor for The Associated Press. He can be reached by e-mail at mgormley(at)ap.org.

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"Lawyer says top Spitzer aide cleared in plot against Bruno"

By MICHAEL GORMLEY, Associated Press

Last updated: 4:23 p.m., Monday, March 24, 2008

ALBANY -- The top aide that former Gov. Eliot Spitzer blamed and disciplined for a plot to smear Senate Republican leader Joseph Bruno won't face criminal charges in the scandal, according to the ex-aide's attorney.

The former aide, Darren Dopp, was Spitzer's communications director in the governor's office and for two terms in the attorney general's office.

Dopp has said he was following orders and the law when he compiled and disclosed to a reporter state police travel records concerning Bruno when he used state aircraft on days he attended Republican fundraisers.

"The district attorney and I met today in person," said Dopp's attorney, Michael Koenig of Albany, on Monday.

"He advised me that all matters between his office and my client are now concluded."

A spokeswoman for Albany County District Attorney P. David Soares, Heather Orth, wouldn't comment.

She said the investigation is expected to be complete this week.

Spitzer's spokeswoman, Anna Cordasco of the public relations firm of Sard Virbinnen & Co., wouldn't comment.

Spitzer resigned March 12 after being linked to a prostitution ring.

That unrelated investigation came as his popularity was dragged down following the state aircraft scandal, which Bruno claimed was political espionage by Spitzer using state police.

In July, Attorney General Andrew Cuomo, a Democrat, concluded Dopp and another aide, William Howard, committed no crime, but engaged in misconduct by plotting to discredit Bruno.

In September, Soares also concluded the aides didn't commit any crime, but he disagreed with Cuomo, saying there was no evidence of a plot against Bruno.

Soares, however, took another look at Dopp's testimony after there appeared to have been conflicts between what Dopp told Soares and what he told the state Public Integrity Commission in its continuing investigation.

Koenig's statement on Monday came as a published report stated that, contrary to Spitzer's public comments, the former governor directed and pushed Dopp to compile the travel data about Bruno.

The New York Times, citing unnamed sources, reported Monday that Spitzer ordered Dopp and another aide to release the travel data from state police.

In July, when the scandal broke, Spitzer apologized for what he called overzealous conduct by his two aides. The former governor suspended Dopp and transferred and demoted Howard.

Dopp eventually left the executive chamber, while Spitzer insisted he had only cursory knowledge of the effort to compile the travel records.

Koenig wouldn't reveal Dopp's testimony about what the Democratic former governor knew about the effort against Bruno.

Dopp spoke to Soares after he was granted immunity.

"I was not going to allow Darren to get involved in the cross hairs of a politically charged investigation," Koenig said.

He said Dopp's statements had to be truthful, based on documents and other witness accounts, in exchange for immunity.

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THE NEW YORK TIMES

"GOP advisor set up tip on Spitzer - Roger Stone Jr., who allegedly left a threat in a voice mail for ex-governor's father, had lawyers alert FBI"

By DANNY HAKIM and FERNANDA SANTOS, New York Times

First published: Monday, March 24, 2008

A Republican political consultant said Sunday that his lawyers wrote a letter to federal investigators in November stating that Gov. Eliot Spitzer had patronized high-priced prostitutes during trips to Florida.

But the consultant, Roger J. Stone Jr., said he did not know if the letter played any role in helping investigators link Spitzer to a prostitution ring.

An affidavit filed in federal court in Manhattan in the prostitution case said that agents from the Federal Bureau of Investigations and the IRS began investigating the Emperors Club VIP in October as part of an inquiry of Spitzer that began last summer when a bank reported what seemed to be suspicious transactions involving the then-governor.

Stone, who has referred to politics as "performance art," is known for hardball politics and a cloak-and-dagger sensibility.

He started out as a teenager in the campaign of Richard M. Nixon, working for the Committee to Re-elect the President, and has a tattoo of the former president's head on his back.

Stone was fired as a consultant to New York state Senate Republicans last summer after allegations arose that he left a threatening voice mail message for Spitzer's father, Bernard.

Stone has denied making the call.

In a series of e-mail messages on Sunday, Stone said that his lawyers were contacted by federal investigators three weeks after the allegations about the call surfaced.

He said he was never interviewed by federal officials and said he was unsure whether the reason his lawyers were contacted was because of the call.

Stone said he told his lawyers to send the letter in November regarding Spitzer's use of prostitutes after meeting a woman at an adult-themed club in Florida who told him that she had knowledge of Spitzer's assignation.

James Margolin, a spokesmen for the New York FBI office, would not comment on whether the bureau received Stone's letter.

The Miami Herald reported on Stone's letter to the FBI on Saturday.

Since the story about Spitzer's connection to the prostitution ring broke on March 10, rumors have been proliferating on the Web and in Democratic circles that the case was motivated by politics.

Investigators have maintained that the case was prompted by suspicious banking transactions.

Spitzer resigned March 12.

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"Bouts of fury preceded governor's fall - Aides say frustration led Spitzer to grow ever more ambivalent about his job"

By DANNY HAKIM and MICHAEL POWELL, New York Times

First published: Sunday, March 23, 2008

The e-mail message was time-stamped Dec. 18, 2007.

It was sent at 5 a.m.

It did not mince words.

"I've been up all night, I haven't been able to sleep thinking how we've gotten to this position," it began, according to one recipient's recollection.

The author of the e-mail message was Eliot Spitzer, the 54th governor of New York.

His administration was just days from the end of its first year, and his poll numbers were abysmal.

And now the morning newspapers had another report of another set of subpoenas issued as part of an investigation into the administration's effort to tarnish a Republican rival.

The heat of Spitzer's frustration and anger, according to two senior aides who read the early morning message, all but radiated off their computers and BlackBerrys.

One aide recalled the thrust of Spitzer's fury: We're disasters; I am surrounded by idiots.

THE NEW YORK TIMES

"Spitzer role in Bruno smear? - People close to probe say that despite denials, ex-governor was involved in bid to discredit foe"

By RAYMOND HERNANDEZ and DANNY HAKIM, New York Times

First published: Monday, March 24, 2008

Former Gov. Eliot Spitzer was deeply involved in his administration's efforts last year to discredit state Senate Majority Leader Joseph L. Bruno, holding detailed discussions with senior aides, ordering damaging information about Bruno released and calling an aide at home repeatedly to check on the progress, according to several people with direct knowledge of the investigation.

The governor has previously said he was not personally involved in the effort, suggesting only that he was vaguely aware that his aides had responded to a reporter's inquiry about Bruno's travels on state aircraft.

But testimony and other information gathered by the Albany County district attorney, David Soares, indicate that the governor's participation was extensive and reflected Spitzer's intense desire to damage Bruno, the people with knowledge of the case said.

The investigation was based on examination of e-mail messages, along with interviews with about a half-dozen senior administration officials, chief among them Spitzer's former communications director, Darren Dopp, whom prosecutors decided last month to give immunity from prosecution.

A spokeswoman for Spitzer, who resigned March 12 after reports that he had patronized a high-priced prostitution ring, could not immediately comment on Sunday night.

Heather Orth, a spokeswoman for Soares, said:

"As with all cases of public integrity, we will not comment on an ongoing investigation."

"We expect to be completed with our investigation at the end of the month, and will report our findings then."

The effort to tarnish Bruno was the first major blunder of Spitzer's first term.

A report by the attorney general, Andrew M. Cuomo, on July 23 said that the Spitzer administration had improperly used the State Police to assemble records on Bruno's flights.

Spitzer apologized, placed Dopp on indefinite unpaid leave, and said he would not tolerate such behavior.

But according to the people with knowledge of the investigation, who spoke on the condition of anonymity because the inquiry is not over, Dopp described a meeting he had with Spitzer just before releasing the records assembled on Bruno to Times Union reporter James Odato.

Around June 25 or June 26, Dopp told prosecutors, he first met with Richard Baum, the governor's chief of staff, who told Dopp that the governor wanted the records on Bruno released to the media.

"Eliot wants you to release the records," Baum told him.

But Dopp, mindful of the political war that would erupt between the governor's office and Bruno, hesitated and decided to check with the governor.

He told the governor that Bruno would be furious, according to people familiar with his account.

Spitzer responded with expletives about Bruno and belligerently dismissed the warning.

The governor was so angry, Dopp recalled, that he turned red and spit out coffee he was sipping as he directed him to release the records immediately.

"As he was saying it, he was spitting a little bit," Dopp said.

"He was spitting mad."

The report by Soares is unlikely to settle the matter, known in Albany as Troopergate, which multiple investigative bodies are still reviewing.

Soares himself released a report in September that exonerated Spitzer, but he reopened his inquiry in the fall after testimony Dopp gave seemed inconsistent with a statement he gave to Cuomo's office, in which he accepted responsibility for the plan to damage Mr. Bruno.

Soares' office has been pursuing the second investigation for several months.

Though Soares interviewed Spitzer last fall, he did not interview him as part of the second investigation.

In Dopp's account, he described a meeting during which he showed Spitzer the records he had assembled on Bruno's travels, arraying them on a table in a conference room so Spitzer could inspect them.

Another time, Dopp said, Spitzer dropped by Dopp's office, picked up the records and looked at them briefly.

Dopp, and his wife, Sandy Dopp, who also met with investigators from Soares' office, said that after the meeting in late June in which Spitzer angrily urged the release of the records on Bruno, Spitzer repeatedly called the Dopp home in the early morning hours checking on the status of the effort to get a story published in The Times Union, when it might be printed and how Dopp believed the story would turn out.

Ms. Dopp said she was struck by how often Spitzer called Dopp at home during that time.

[Livyjr]

"Little travel probe fallout - Sources: DA unlikely to prosecute anyone over Bruno records scandal"

By RICK KARLIN and BRENDAN LYONS, Staff writers, Albany, New York Times Union

First published: Tuesday, March 25, 2008

ALBANY -- Former Gov. Eliot Spitzer's top spokesman will face no charges stemming from last year's travel records scandal, and Albany County District Attorney David Soares is unlikely to prosecute anyone in the affair, according to people familiar with the investigation.

With the probe coming to an end, one person familiar with the investigation said other Spitzer aides questioned by Soares' office had frequent memory lapses and appeared intent on protecting the former governor.

It also was learned Monday that Attorney General Andrew Cuomo, who last year issued a scathing report on the scandal, had gotten wind of the plan by Spitzer's office to look into Senate Majority Leader Joseph L. Bruno's use of state aircraft months before Bruno's records were released.

Cuomo's office insisted it was a casual conversation that the attorney general only vaguely recalls.

Michael Koenig, the attorney for former Spitzer spokesman Darren Dopp, said his client's role in the investigation is done.

"The district attorney advised me today in person that all matters between his office and my client are concluded," Koenig said.

"Darren is very relieved and grateful that this matter is now behind him."

Last fall, after issuing an initial report that found no wrongdoing in the scandal, Soares reopened his inquiry after learning that Dopp's testimony was at odds with that given by others.

By February, Soares had granted immunity to Dopp, who subsequently implicated Spitzer in the affair.

In contrast, other Spitzer aides had on numerous occasions told investigators that they didn't remember what happened during the effort to release Bruno's travel records.

Among the top aides who testified were Peter Pope, Spitzer's policy director; Sean Patrick Maloney, his first deputy secretary; and David Nocenti, his counsel.

"There were a lot of 'I can't recalls,' " said a person familiar with the investigative records.

The scandal erupted last summer when Bruno charged Spitzer with spying on him, after the governor's office released to the Times Union travel records of Bruno's trips to New York City aboard a State Police helicopter.

The records showed that several of the trips, also involving State Police drivers, coincided with major political fundraisers in New York.

Bruno refused to divulge details of the trips, but insisted they involved legitimate public business.

The state has since tightened its travel policy.

In a July 23 report, Cuomo found no laws were broken by either Bruno or Spitzer's aides, but that the governor's office acted improperly by having State Police put together the records from memory, and involving police in a political matter.

Soon after, the newly formed Public Integrity Commission and Soares were looking into the affair as well.

Both the commission and Soares have continued their investigations, although Soares said he expects to finish by the end of March.

Dopp's testimony, first described in a story in Monday's New York Times, revealed that Spitzer was deeply involved in releasing the travel records in an effort to damage Bruno's image.

Some unanswered questions or loose ends remain, however.

For example, a person close to the investigation said Soares has not interviewed Spitzer in his second look at the affair.

Sen. George Winner, R-Elmira, who heads the Investigations Committee, questioned the timing of Soares' pending report, now that Spitzer has resigned after a prostitution scandal.

"Now he's acknowledging what 70 percent of everybody in New York knew," said Winner.

Soares gave Dopp immunity weeks before Spitzer was brought down in a separate scandal involving high-priced call girls.

Soares' spokeswoman Heather Orth said the district attorney planned to release his findings soon, but she wouldn't comment further.

Meanwhile, a Cuomo aide confirmed that months before the scandal erupted, Dopp mentioned the plan to look into Bruno's travel records in a conversation with Cuomo.

The aide said, however, that it was mentioned only in passing, and the attorney general barely remembers the conversation.

"Mr. Dopp has characterized this remark as innocuous and made in passing during a conversation about numerous issues," said the Cuomo aide.

Rick Karlin can be reached at 454-5758 or by e-mail at rkarlin@timesunion.com.

[Livyjr]

"Albany DA seeks to make Spitzer scandal documents public"

By MICHAEL GORMLEY, Associated Press

Last updated: 5:34 p.m., Tuesday, March 25, 2008

ALBANY -- Albany County District Attorney P. David Soares on Tuesday asked Gov. David Paterson to waive executive privilege for former Gov. Eliot Spitzer so Soares may release publicly all findings, testimony and records related to his probe of a travel scandal.

Soares wants to release all material, including e-mails, involving Spitzer during the time two of his top aides are accused of compiling records that would embarrass Senate Republican leader Joseph Bruno.

Soares made his request Monday to Paterson, who referred it to the attorney general on Tuesday.

Spitzer said he had only cursory knowledge of the plot and blamed the aides.

He granted only a limited waiver of privilege to deny Soares' access to some records.

Spitzer resigned March 12 amid a prostitution investigation.

"The public has expressed great interest in this matter, and we believe the people of the state of New York and the county of Albany have a right to a full airing of the events surrounding this case," said Soares, a Democrat.

"We believe this is especially so because this matter involves the state's highest office."

"The people have put their trust in your office," Soares wrote Paterson, "and transparency is the most honorable way of reciprocating that trust."

Paterson's chief of staff, Charles J. O'Byrne, asked Attorney General Andrew Cuomo for a legal opinion on the request Tuesday.

Soares' letter to Paterson asked for a response by 5 p.m. Tuesday, but officials in the attorney general's office were still talking with Soares and Paterson's office after the 5 p.m. deadline.

However, a senior member of Cuomo's staff said because of the information Soares requested, the deadline won't likely be met.

"Given the complexities of the legal issue and the fact that the D.A. Soares has been in possession of the documents for months, we don't understand the 24-hour deadline," said the senior staffer on the condition of anonymity because of the sensitivity of the case and interagency discussions.

"It's important that we understand the history of the assertion of these privileges and it's also important that we understand whether or not the D.A. and the state Public Integrity Commission accepted the privileged assertions," the senior staffer told The Associated Press.

The state Public Integrity Commission that rules on the conduct of executive branch employees continues to investigate the case.

Cuomo issued a report in July that found misconduct by the two aides in a plot to smear Bruno for his use of state aircraft on days he attended Republican fundraisers.

Cuomo found no crimes were committed, but he didn't compel testimony and the Spitzer administration wouldn't allow the top aide in the scandal, communications director Darren Dopp, to testify.

Soares' investigation, released in a report in September, found no evidence of a plot and no misconduct by the aides, who had argued they were following directions, policy and the state Freedom of Information Law by compiling the travel records and providing them to a reporter who sought them.

Soares recently returned to the case, however, and further questioned and investigated Dopp's role.

Soares' final report is due this week.

Dopp's attorney, Michael Koenig of Albany, said Monday that Soares told him Dopp is cleared of any crime in the case.

Soares' spokeswoman wouldn't comment on the investigation.

Soares' conclusions in the September report were based on the voluntary testimony and surrender of e-mails from Spitzer, Dopp, Secretary to the Governor Richard Baum, Spitzer press secretary Christine Anderson and William Howard, a former top public security aide in the governor's office.

There was no immediate comment from Spitzer's spokeswoman, Anna Cordasco.

[Livyjr]

"Audit cites problems with dam safety programs"

By MICHAEL VIRTANEN, Associated Press

Last updated: 4:44 p.m., Tuesday, March 25, 2008

ALBANY -- A state audit released Tuesday identified major problems with the state's dam safety programs, including lax oversight, staff shortages and outdated policies from 2004 through early 2007.

"The dams we focused on, with most of them there wasn't the imminent threat of failure in any way," said Jennifer Freeman, spokeswoman for the state Comptroller's Office.

"The concern is the DEC does not have the enforcement power to ensure those owners make the necessary repairs."

The state Department of Environmental Conservation has responsibility for dam safety.

In February, the DEC proposed new regulations that would require owners of about 1,000 dams in New York to keep detailed design and modification records, as well as operation, maintenance and emergency action plans available for state inspection.

Many of the 4,000 others are small and pose little hazard.

"There were literally no enforcement actions for years," said Jim Tierney, DEC assistant commissioner for water resources.

"In the last year we have issued administrative consent orders for remedial work at 15 dams."

"We have 12 other enforcement actions under way."

Citing a high-profile dam failure and some dangerous deficiencies found the past few years, the agency in February said it has increased its dam safety staff statewide from three to 20, and the proposed regulations clarify that its enforcement authority applies even to smaller dams.

That proposal followed the audit of dam safety programs under three years of Gov. George Pataki's and two months of Gov. Eliot Spitzer's administration.

Freeman said it addresses many of the auditors' concerns.

Comptroller Thomas DiNapoli said given the number of dams identified as in continuous disrepair, DEC enforcement authority should be expanded so the agency can take action against owners who fail to fix deficiencies within a reasonable amount of time even if there's no imminent threat of dam failure.

The DEC said last month its staff has completed inspections over the past few years of all 389 high hazard dams, those whose failure would pose a serious threat to downstream communities.

The agency proposed that owners of larger dams have to schedule inspections by a professional engineer at least every 10 years to determine if their classification remains accurate.

The DEC is taking public comments until May 17 on its proposal and scheduled hearings.

In July 2005, about 200 homes in a northern New York village were evacuated after a recently rebuilt dam crumbled.

It was at the south end of the mile-long Hadlock Pond in Fort Ann, about 55 miles north of Albany.

The same year, emergency repairs began on an aging dam just north of the Catskills that serves New York City's drinking water supply to protect 2,500 upstate households and businesses.

They would have been in the path of some 20 billion gallons of water if the 80-year-old Gilboa Dam failed.

The $24 million project, finished in 2006, included installing 80 anchoring cables to pin the dam to the bedrock.

A $315 million reconstruction project is scheduled to start this year.

--------

On the Net:

Comptroller: http://www.osc.state.ny.us/audits/allaudits/093008/06s61.pdf.

DEC: http://www.dec.ny.gov/regulations/propregulations.html

[Livyjr]

"PORK" is a STATE OF MIND .....

"I AM BEYOND THE LAW ..."

"I CAN DO WHATEVER I PLEASE ..."

"NOBODY CAN TOUCH ME ..."

"I AM AN ELECTED OFFICIAL ..."

"I AM BEYOND THE LAW ..."

And so it is ....

Here in the CORRUPT EMPIRE of New York ....

"New grant to create 1,000 new jobs upstate"

By VALERIE BAUMAN, Associated Press

Last updated: 4:33 p.m., Tuesday, March 25, 2008

ALBANY -- Gov. David Paterson announced Tuesday that six grants totaling $5.5 million will help create more than 1,000 new jobs during the next three years in upstate New York.

Nearly $3.8 million of the grants was federal money and about $1.7 million came from the Empire State Development Corporation.

The state's Housing Trust Fund Corporation, created to help meet the housing needs of low income New Yorkers, approved the grants Tuesday.

Most of the new jobs will be available to low- and moderate-income New Yorkers.

The projects include:

--Green Island Power Authority Expansion in Albany County.

The Village of Green Island will receive a $750,000 grant to help the municipality's power authority expand to serve two local businesses that had considered relocating out of state because of high energy costs.

The grant maintains 120 jobs and creates 23 new ones during a three year period.

--The City of Olean in Cattaraugus County was awarded $750,000.

The grant will help Data Listing Services, LLC, create a new call center, generating 450 new jobs in the next three years.

--Montgomery County will receive $503,500.

The grant will help Power Pallet, Inc. create 65 new jobs.

The company recycles wooden pallets used in transportation and storage.

An additional $700,000 came from an Empire State Development Grant.

--The City of Lockport in Niagara County will receive $266,000.

The grant will help Niagara Produce, Inc., a retail grocery and market, expand and add 31 new jobs.

--The Town of Ticonderoga in Essex County will receive $750,000 to help build a municipal wastewater collection system.

Best Western, one of the companies that will be served by the wastewater system, is investing $5.5 million in the project and creating 19 new jobs.

The project will also retain 28 jobs.

--The Town of Erwin in Steuben County will receive $750,000 to help Sitel Corporation create a call center and generate 400 new full time jobs and 50 new part-time jobs.

An additional $1 million came from the Empire State Development grant.

------

On the Net: http://www.ny.gov/governor/press

[Livyjr]

"Soares pushes travel probe - District attorney seeks public release of papers related to Spitzer flap"

By RICK KARLIN, Capitol bureau, Albany, New York Times Union

First published: Wednesday, March 26, 2008

ALBANY -- Albany County District Attorney David Soares is asking Gov. David Paterson to let him publicly release records pertaining to last summer's travel records scandal so Soares can provide what he termed a "full airing of the events surrounding the case."

The records, which could include e-mail, notes and other correspondence involving former Gov. Eliot Spitzer and his top officials, could be released if Paterson were to waive executive privilege and grand jury secrecy surrounding information that Soares sought through subpoenas to the Spitzer administration.

"I am writing to formally request a waiver from you so that the Office of the Albany County District Attorney can fully air the relevant information uncovered during our investigation of events surrounding the release of documents from the Executive Chamber," stated the letter, dated Monday and signed by Linda Griggs, Soares' assistant district attorney.

Soares' request is the latest chapter in the ongoing, politically charged travel records scandal.

Paterson responded Tuesday by asking Attorney General Andrew Cuomo for an advisory opinion on whether he could waive executive privilege on behalf of Spitzer, who resigned March 17 amid a prostitution scandal.

Multiple agencies have been investigating an incident in which Spitzer's top advisers last June released to the Times Union records of Senate Republican Majority Leader Joseph L. Bruno's state-funded trips, which included travel on days of major political fundraisers.

Bruno charged Spitzer with spying on him, which led to two reports, one in July from Attorney General Andrew Cuomo and another from Soares in September.

Both found no illegalities although Cuomo concluded that Spitzer's aides wrongly drew State Police into the affair and misused the Freedom of Information Law by having them re-create the travel records from memory.

At least two other investigations, by the state Senate and the state Public Integrity Commission, are continuing.

Soares had initially concluded there was no wrongdoing, but reopened his investigation in October after the Public Integrity Commission advised him of that Spitzer's former communications director, Darren Dopp, may have perjured himself in a sworn statement to Cuomo's office.

The commission also alleged, Soares said in Monday's letter, "that Senior Executive Chamber employees may have coerced Mr. Dopp into signing the allegedly false statement."

Soares later gave Dopp immunity in exchange for his testimony, and this week told his attorney, Michael Koenig, that he is done with his client.

Cuomo's office issued a press statement saying that Soares wants to publicize the documents and said it is studying the matter.

When Soares requested that Paterson release the information, Charles O'Byrne, the governor's secretary, asked Cuomo for a formal opinion on whether the governor could do so.

Soares, who has said he expects to wrap up his investigation by the end of the month, had asked that Paterson respond by 5 p.m. Tuesday.

But a person familiar with the matter said lawyers for Cuomo might take several days to sort out the request.

Legal experts said Cuomo, who has requested to meet with all interested parties, including the Senate and the Public Integrity Commission, will have to deal with some hefty legal questions, because the decision could set a precedent on the limits of executive privilege and how governors deal with other governmental bodies such as prosecutors, investigatory agencies and the Legislature.

The state Senate is currently in court over whether it can subpoena documents from the governor's office for its investigation.

"There are important principles at stake that are being put to the test by an increasingly inconsequential matter," said Koenig, Dopp's lawyer.

Karlin can be reached at 454-5758 or by e-mail at rkarlin@timesunion.com.

[Livyjr]

"Audit: Dams' fixes delayed for years"

By BRIAN NEARING, Staff writer, Albany, New York Times Union

Last updated: 5:26 p.m., Tuesday, March 25, 2008

ALBANY -- The state has waited since Nelson Rockefeller's administration for the owner of a 19th-century Adirondack dam to fix safety violations, according to an audit on dam safety from the state Comptroller.

While the Rainbow Lake Dam in Franklin County, under a state repair order since 1971, is the worst offender, it is far from alone.

Two dozen dams' owners haven't obeyed repair orders for years, the report issued Tuesday found.

Ten of those dams -- including one owned by the city of Watervliet -- have unaddressed violations between 26 and 28 years old, in the era when Mario Cuomo replaced Hugh Carey as governor.

Rainbow Lake Dam, built on the North Branch Saranac River in 1875, contains a 356-acre lake.

The audit identified the owner as Jason Roberts Development Corp., although no corporation by that name is filed with the Department of State Division of Corporations.

"We have had difficulty locating the owners in this case," said DEC spokeswoman Maureen Wren.

She said the risk of failure appeared to be low, even though the state had rated the dam as "high hazard."

DEC officials, who are responsible for enforcing safety rules, told state auditors that while none of the dams in the audit are in "imminent danger of failure," they could not "quantify the level of risk to downstream residents."

In responding to state Comptroller Thomas DiNapoli, DEC blamed absent enforcement on lack of staff and budget, as well as attention to other duties including emergency flood response and dealing with requests for information under the state Freedom of Information Law.

"It is important to note that enforcement was nearly nonexistent in years past, but in the last year alone, the state issued complaints for 12 dams and entered into additional orders on consent for remedial work at 15 dams," said Wren.

"We welcome the Comptroller's report and have begun implementing many of the recommendations."

In February, DEC announced tougher dam safety draft rules requiring most owners to keep detailed safety and maintenance records, as well as pay for regular safety inspections.

The requirements were inspired in part by the July 2, 2005, collapse of Hadlock Pond dam in Washington County.

The recently rebuilt dam released a torrent of water that destroyed homes and roads in Fort Ann and spawned a rash of lawsuits from property owners, the town and the dam's builders.

Wren said the state also has increased the number of dam safety inspectors in recent years from three to 20, but could not say how long it might take to handle the backlog of overdue violations.

"The longer owners take to correct problems, the greater the deterioration and the cost of these repairs and the increased likelihood that this neglect could lead to failure at some point down the road."

"This cannot continue," said DiNapoli.

Brian Nearing can be reached at 454-5094 or by e-mail at bnearing@timesunion.com.

[Livyjr]

"Home price drop signals tough spring"

By VINNEE TONG, Associated Press

Last updated: 5:53 p.m., Tuesday, March 25, 2008

NEW YORK -- Home prices plunged by record levels in January from a year ago, with almost no major cities immune from the spiraling market.

Analysts worried that even the usually reliable spring selling season would fall flat.

The closely watched Standard & Poor's/Case-Shiller index of home prices in 20 cities fell nearly 11 percent in January from a year earlier, the biggest drop in its two-decade history.

Everywhere else, mounting foreclosures, falling consumer confidence and sellers slashing their asking prices are taking an increasing toll on the market.

"It's just a spiral that will end up taking this year to get out of," said Pava Leyrer, president of Heritage National Mortgage in Detroit, adding that the market there is not expected to improve until the spring of 2009.

Rising foreclosures have become the biggest factor driving prices lower, Moody's Economy.com chief economist Mark Zandi said.

There were already too many homes on the market, and foreclosures bring even more property -- priced at a deep discount -- into the mix.

Zandi said while prices are still falling steeply, demand seems to have stabilized.

"The psychology of the market has completely shifted," Zandi said.

"Sellers do realize that homes are worth fundamentally less than they thought."

On Monday, new data for February showed the biggest drop in at least nine years in the median sales price of existing homes.

"Home prices continue to fall, decelerate and reach record lows across the nation," said David Blitzer, index committee chairman at S&P.

"No markets seem to be completely immune from the housing crisis."

Prices have fallen month-to-month for five straight months in all 20 cities tracked by S&P.

And the declines are getting steeper, with 13 of the 20 cities reporting their biggest single monthly decline in January.

A separate survey Tuesday from the Office of Federal Housing Enterprise Oversight said home prices fell 3 percent in January from the same month last year.

That index is calculated using mortgages of $417,000 or less that are bought or backed by Fannie Mae or Freddie Mac.

"Region's home prices rise despite slowdown - Realty broker says many homeowners appear to be holding off on selling during economic downturn"

By CHRIS CHURCHILL, Business writer, Albany, New York Times Union

First published: Tuesday, March 25, 2008

First-time home buyers hoping the real estate slowdown will result in lower prices are in for disappointment, at least for now: Statistics released Monday show a general rise in Capital Region single-family home prices.

Albany and Schenectady counties showed February median sale price increases of 6 percent and 4 percent, respectively, when compared with the same month a year ago.

Rensselaer County showed a 12 percent increase, according to the Greater Capital Association of Realtors Inc., a Colonie-based trade group.

Saratoga County was the exception.

The median price there fell 3 percent.

Overall, in the 11 counties covered by GCAR, the median price rose 8 percent, to $189,900.

When necessities as diverse as gasoline and groceries are costing more, perhaps pricier housing shouldn't be a surprise.

But the local rise comes as prices nationally are falling.

In fact, the National Association of Realtors reported Monday that the median existing-home price for all housing types was $195,900 in February, down 8.2 percent from a year earlier.

Also, the increase in local median prices is happening during a sharp fall in the number of homes sold.

According to GCAR, closed home sales in Albany, Schenectady, Saratoga and Rensselaer counties fell 29 percent in February, compared with a year earlier.

Laws of supply and demand suggest a price decrease should accompany such a rapid slowdown.

Yet Eric Dahl, managing broker at nonprofit Community Realty in Albany, said the inventory of quality houses on the market is also declining.

By his count, 709 homes in good or better condition were on the market in Albany County in September.

This month, the number had fallen to 590.

"I'm not seeing prices come down at all, but I am seeing what is reflected in the (GCAR) numbers, which is far fewer transactions," he said.

"I think sellers are sitting back and saying, 'This isn't a good time to sell.' "

Community Realty largely works with first-time buyers, who in recent years have faced a difficult trend: The cost of buying a house in the Capital Region has outpaced income growth.

In Albany County, for example, median household income grew by 19 percent from 1999 to 2006, according to the U.S. Census Bureau.

During the same period, the median sale price of a single-family home in the county jumped 76 percent.

Dahl said many buyers are hoping to see that trend curbed.

And in the wake of negative national real estate news, some expect it.

"We do definitely encounter buyers who have unrealistic expectations about our local market," Dahl said.

"They think you might all of a sudden find a $200,000 home for $120,000."

Marie Bettini, president of GCAR, said first-time home buyers are now "the driving force" in the housing market here.

They're being lured into the market by low interest rates and the search for good deals.

Some seem to be buying even if they aren't finding the hoped-for bargains, Bettini said.

There was positive news Monday for the national housing market.

The National Association of Realtors said the seasonally adjusted number of existing-home sales surpassed expectations and climbed 2.9 percent in February, compared with January.

Still, when compared with February 2007, the number of existing-home sales fell 23.8 percent.

Chris Churchill can be reached at 454-5442 or by e-mail at ccchurchill@timesunion.com.

[Livyjr]

"$30M to help telecom firm"

By LARRY RULISON, Business writer, Albany, New York Times Union

First published: Tuesday, March 25, 2008

ALBANY -- Tech Valley Communications has received approval from state regulators to borrow up to $30 million for new projects or to refinance existing debt.

The Albany-based company sells telecommunications services such as phone and high-speed Internet access, mostly to businesses and government entities, using a super-fast fiber-optic cable network it has built throughout the region.

Since the company provides telephone service, it is regulated by the state Public Service Commission.

Last month, Tech Valley Communications asked the PSC if it could issue up to $30 million in long-term debt to be obtained from one or more banks, including TD Banknorth.

The money is expected to be used for either working capital, to expand its network and services, or to refinance existing debt.

The company said the money is needed for important projects, such as Albany County's E-911 service.

Also known as Enhanced 911, the system is an emergency telephone service for county residents and businesses that provides simplified dispatch of police, fire or ambulance.

Chief Executive Officer Kevin O'Connor said Monday he couldn't reveal any specifics of the borrowing because the deal had not been completed.

But he said the company was refinancing older debt.

"We're actually closing today or tomorrow," he said.

He did say the work the company is doing for Albany County is cutting edge.

A spokeswoman for the county confirmed the company's involvement.

[Livyjr]

"AMD gets $622 million Mubadala injection"

Associated Press

Last updated: 10:02 a.m., Friday, November 16, 2007

SUNNYVALE, Calif. -- Advanced Micro Devices Inc., the second-largest maker of PC and server microprocessors, said Friday it received a $622 million investment from a unit of Abu Dhabi-based Mubadala Development Co.

The United Arab Emirates investment firm received 49 million newly-issued shares at $12.70 each, the closing price Thursday of AMD's common stock, representing an 8.1 percent stake.

AMD received about $608 million, after reimbursing Mubadala for approximately $14.6 million in expenses.

The company said it will use the proceeds for general corporate purposes including investing in research and development, product innovations and manufacturing.

"AMD sells 8.1 percent stake to Abu Dhabi"

By JORDAN ROBERTSON, Associated Press

Last updated: 6:44 p.m., Friday, November 16, 2007

SAN FRANCISCO -- With oil prices surging and U.S. stock prices slumping, chip maker Advanced Micro Devices Inc.'s sale of an 8.1 percent stake to the Abu Dhabi government's investment arm represents the latest plunge by a wealthy Middle Eastern nation into a troubled U.S. corporation.

It also raises fresh questions about the appropriateness of Middle Eastern firms owning large chunks of U.S. businesses that specialize in advanced technologies.

Sunnyvale-based AMD, the world's No. 2 microprocessor maker, needs the $622 million investment from the Mubadala Development Company to help lift the company out of a deep financial slump.

AMD has lost more than $1.6 billion so far this year, and has just $1.5 billion in cash on hand as it works to pay down $5.3 billion in debt.

The financial woes have caused AMD's stock to fall more than 35 percent since the start of the year, a slide that has wiped out nearly $4 billion in shareholder wealth.

The infusion, announced Friday, is a necessary jolt for AMD is it hunts for money to fund its counteroffensive against Intel Corp., the world's largest chip maker, and amid a huge spike in investments in U.S. companies from Middle Eastern nations.

AMD shares rose 45 cents, or 3.5 percent, to $13.15 in premarket trading.

"Stocks drop on weak manufacturing report"

By TIM PARADIS, Associated Press

Last updated: 6:12 p.m., Wednesday, January 2, 2008

NEW YORK -- Wall Street skidded lower Wednesday after a weaker-than-expected reading on the manufacturing sector and a spike in oil prices to $100 a barrel triggered concerns of a further slowdown in the overall economy.

Chip stocks fell after Bank of America issued a bearish assessment for the sector.

Intel Corp. fell $1.31, or 4.9 percent, to $25.35, while Advanced Micro Devices fell 36 cents, or 4.8 percent, to $7.14.

"Stocks end rough week with modest drop"

By MADLEN READ, Associated Press

Last updated: 4:42 p.m., Friday, January 18, 2008

NEW YORK -- Wall Street ended a painful week with another decline Friday as skittish investors unable to hold on to much optimism about the economy drew little comfort from President Bush's stimulus plan.

Meanwhile, chip maker Advanced Micro Devices Inc. late Thursday said its fourth-quarter net loss widened, but the loss was smaller than Wall Street predicted.

AMD surged 73 cents, or 11.5 percent, to $7.07.

"Intel lowers gross profit margin outlook"

By JORDAN ROBERTSON, Associated Press

Last updated: 10:22 p.m., Monday, March 3, 2008

SAN JOSE, Calif. -- Intel Corp. lowered its profit forecast for its fiscal first quarter Monday, blaming the shortfall on a steeper-than-expected drop in prices for memory chips.

Analysts are warning the pressure could continue into 2008 because of global economic uncertainty that is causing companies to clamp down on spending.

Intel has benefited from making a quicker transition to a new chip-making process than its smaller rival, Advanced Micro Devices Inc.

The two compete primarily in the market for microprocessors.

Intel made nearly $7 billion in fiscal 2007, which ended in December, an improvement of roughly $2 billion over 2006, when the company was hurt by a fierce price battle with AMD.

AMD, meanwhile, lost nearly $3.4 billion last year, dragged down primarily by expenses from a costly acquisition.

"Schumer 'sold' on AMD plans for Malta site - U.S. senator says company president remains upbeat about $3.2 billion chip-fab plant"

By ERIC ANDERSON, Deputy business editor, Albany, New York Times Union

First published: Wednesday, March 26, 2008

U.S. Sen. Charles Schumer made his first visit to the Luther Forest Technology Campus Tuesday morning to tell local officials and residents he believes a $3.2 billion Advanced Micro Devices Inc. plant will be built there as planned.

"AMD has had a rough year -- five quarters -- where they've lost money," he said.

But, "AMD and most of their analysts regard this as a bump in the road."

Schumer instead focused on what's at stake in Luther Forest: a manufacturing plant that would make AMD's semiconductors -- the brains of computers and other advanced electronics -- more competitive with those of rival Intel Corp.

"'If our company has any future, it's here,' " Schumer quoted AMD CEO Hector Ruiz as telling him during a conversation on Friday.

"I'm completely sold on the fact that AMD is going to be here," Schumer added.

State Senate Majority Leader Joseph L. Bruno and U.S. Rep. Kirsten Gillibrand joined Schumer at the Tuesday morning press event at a small office building on the Luther Forest campus.

AMD has been offered state incentives worth up to $1.2 billion toward the $3.2 billion cost of the plant.

Schumer said the incentives were "worth every penny."

Still, AMD will have to finance the remaining $2 billion, which is more than half its total market value of $3.8 billion.

Steve Groseclose, AMD's director of global environment, health and safety, said after the event that financing the project was being worked on in parallel with the necessary permits and other planning work that must take place before ground can be broken.

Groseclose said it wasn't clear what impact rising prices for such construction materials as steel might have on the project's final cost.

AMD would like to be able to start construction as early as January or February 2009, he said, although the company hasn't made the final decision on whether to proceed with the project.

AMD has until July 2009 to make that decision without forfeiting the state incentives.

During his appearance Tuesday, Schumer thanked Alain Kaloyeros, who heads the College for Nanoscale Science and Engineering at the University at Albany, and Bruno, as well as former Gov. George Pataki, for their vision and support for the AMD project and development of the local semiconductor industry.

Bruno "really has been a leader in figuring this out and getting the support it needs," Schumer said.

Schumer said that while the Capital Region work force and the incentive package helped attract AMD, the combination of Albany NanoTech and IBM Corp., which has a major research presence at Albany Nanotech, gave the region a unique advantage that made the difference.

The Albany NanoTech complex, where next-generation semiconductors and their manufacturing processes are under development, also will soon be home to International Sematech, the research consortium of the world's major chipmakers.

Schumer expects construction of the AMD plant will have to begin by early next year if it's to meet its goal of producing the next generation of semiconductors by 2012.

Most of the estimated 1,200 employees will be hired locally, although a few likely will come from outside the area.

"That's why we're here, because there's a huge talent pool," said Groseclose, the AMD official.

Eric Anderson can be reached at 454-5323 or by e-mail at eanderson@timesunion.com.

[Livyjr]

FOR IMMEDIATE RELEASE:

January 18, 2008

"GOVERNOR SPITZER LEADS FIRST MEETING OF COMMISSION TO MODERNIZE REGULATION OF FINANCIAL SERVICES - Commission Discusses Regulatory Reform to Help Maintain New York’s Status as World Financial Capital and Ensure the Highest Standards of Consumer Protection for New Yorkers"

Governor Eliot Spitzer today hosted the first formal meeting of the Commission to Modernize the Regulation of Financial Services, which includes heads of major financial services organizations, consumer advocates, the business community, legislators and regulators.

The commission discussed an innovative proposal to institute principles-guided regulation in New York along with other potential reforms.

New York’s financial services market has been burdened by current regulations – a litany of detailed rules that are ineffective at achieving consumer protection.

The United Kingdom and other international markets are moving to principle-based regulation, which focuses on broad guidelines.

Hector Sants, the Chief Executive Officer of the Financial Services Authority of the United Kingdom, spoke to the commission about how his agency, the sole regulator for all financial services in the U.K., is transitioning from rules-based to principles-based regulation.

http://www.ny.gov/governor/press/0118081.html

"Regulator takes blame for Northern Rock"

By ROBERT BARR, Associated Press

Last updated: 8:52 a.m., Wednesday, March 26, 2008

LONDON -- Britain's financial services regulator admitted Wednesday that it had done a poor job of supervising Northern Rock, the mortgage lender which became Britain's most prominent victim of the subprime mortgage crisis.

Northern Rock was forced to turn to the government for support when its short-term lending resources dried up -- leading to a run on deposits.

The government nationalized Northern Rock in February, and the company is now undergoing reorganization.

The Financial Services Authority said an internal audit had identified four major failings regarding Northern Rock: insufficient engagement with the company resulting in no rigorous follow up to problems arising from the credit crisis; a lack of adequate oversight of Northern Rock management; insufficient resources to supervise the company; and a failure to ensure that all available risk information was properly analyzed and applied.

"The review concluded that, overall, the supervision of Northern Rock was at the extreme end of the spectrum within the firms reviewed in respect of these failings and that its supervision did not reflect the general practice of supervision of high-impact firms at the FSA," the agency said.

A union official welcomed the agency's admission of failures, but noted that around 2,000 Northern Rock employees would pay for those failures by losing their jobs.

"We are calling on the FSA to ensure that their supervision practices are strengthened so there can be no repeat of the mistakes that occurred in Northern Rock," said Graham Goddard, deputy general secretary of the Unite union, who called for a full investigation of the events leading up to the bank's near-collapse.

"This inquiry must take a broad perspective of all those involved, including the previous management of the company."

"The hard working staff at Northern Rock deserve to know what went wrong and that lessons will be learnt," Goddard said.

To improve its performance in monitoring companies such as Northern Rock, the agency said it was creating a new group of specialists to regularly review supervision.

The numbers of supervisory staff monitoring high-impact companies will increase, and the FSA said it will expand its prudential risk department.

The agency said it will also pay greater attention to the liquidity of high-impact retail companies, and be more rigorous in assessing the competence of senior management.

"It is clear from the thorough review carried out by the internal audit team that our supervision of Northern Rock in the period leading up to the market instability of late last summer was not carried out to a standard that is acceptable, although whether that would have affected the outcome in this case is impossible to judge," said Hector Sants, the agency's chief executive.

The agency did not immediately release the full text of its review, but said it would be available by the end of April.

Britain's taxpayers have so far advanced subsidies of 55 billion pounds ($110 billion) to prop up Northern Rock.

The company's new executive chairman, Ron Sandler, announced last week that he plans to reduce Northern Rock's staff of 6,500 employees by a third and to reduce its home mortgage book by half.

Sandler said he hopes to phase out government support within four years.

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On the Net:

Financial Services Authority, http://www.fsa.gov.uk

Northern Rock, http://companyinfo.northernrock.co.uk

[Livyjr]

"JPMorgan Chase to cut 300 jobs in Rochester"

Associated Press

Last updated: 6:43 p.m., Wednesday, March 26, 2008

ROCHESTER, N.Y. -- JPMorgan Chase & Co. says it will cut 300 jobs at its home equity loan processing center in Rochester's Chase Tower and combine that operation with Chase offices in Milwaukee and Phoenix.

The cuts are a result of a national downturn in Chase's home equity loan business, said E. Malcolm Wolcott Jr., president of Chase's upstate operations.

Chase employs about 950 workers at the Chase Tower in downtown Rochester and branches throughout the area.

Wolcott said the bank has contacted local business groups to help find new jobs for some of the affected employees.

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Information from: Rochester Democrat and Chronicle, http://www.democratandchronicle.com

[Livyjr]

"Government watchdogs target personal use of campaign donations"

By MICHAEL GORMLEY, Associated Press

Last updated: 6:32 p.m., Thursday, March 27, 2008

ALBANY -- Prospects look dim for lawmakers to raise their salaries this year now that Gov. David Paterson says a recession is forcing harder choices in the state budget due Tuesday.

"I don't think the state can really afford to do very much really for anyone, least of all for legislators right now because of this situation," Paterson said.

Most lawmakers will continue to muddle through, in part by falling back on millions of dollars in campaign contributions which, under the rules they wrote, can pay almost anything from Buffalo Bills tickets to a trip to Ireland, state records show.

Auto insurance payments, rental cars, gasoline, auto repair and other expenses are also paid by campaign contributions that offset household or daily work expenses most people must be take from their salaries, according to the records of many lawmakers reviewed this week.

"Campaign contributions should be used for campaigns, not for lifestyle subsidies," Blair Horner of the New York Public Interest Research Group said Thursday.

"Most campaign contributions come from groups that have business before government."

"This creates an inherent conflict."

Need a dinner at one of Albany's best restaurants?

No need to tap into that taxpayer-paid per diem of $150-or-so a day for expenses for staying in Albany.

Bring some staff and friends to Jack's Oyster House and pick up the check for $310, like Republican Sen. Kenneth Lavalle's campaign did.

Bar association dues due?

Cut a check for $125, they way Democratic Assemblyman Joseph Lentol's campaign did.

Want tickets to the Buffalo Bills?

Plunk down $2,764 for them, like Democratic Sen. Bill Stachowski 's campaign did.

Need a car?

Pick out a $25,000 Chevy and pay cash, like Republican Sen. Catharine Young's campaign did.

Or pay monthly car payments, as several other lawmakers' campaign funds do.

Want to get away from it all?

Try a trip to Ireland, as Assemblyman Adam Clayton Powell's campaign did in 2007, for few euros over $2,500.

"Absolutely campaign money should be used for anything that would enhance an official's capacity as state legislators and certainly learning about Ireland and its people and its struggles ... will help our Irish brothers and sisters in our district," said the East Harlem Democrat.

The trip from Sept. 29 to Oct. 10 in 2007 was attended by many American lawmakers, many of Irish descent.

He said the trip included historic tours and a meeting with the prime minister to discuss pressing current issues.

Asked if any New York state legislation came of the trip, he said:

"I'm not sure."

"Possibly."

All of it's legal, and much of it, like NFL tickets for a team that means much to Stachowski's western New York district and a car for Young, who drives across the state from Olean to Albany, are quickly defended by lawmakers.

Lentol said the dues keep him associated with the Brooklyn Bar Association, an important constituent group, because he doesn't practice law anymore.

"There is generally not very tight regulation of them and probably for good reason," he said.

He said it's appropriate to use the funds to maintain and operate the public office, "but it should not be to improve their lifestyle or their lives."

"There should be a middle ground."

Young also said the purchase of a car is a legitimate expense.

"My senate district is one of the largest geographically and is the farthest away from Albany," she said.

"I put about 70,000 miles on my Chevy per year doing my job."

"It doesn't cost the taxpayers one dime for mileage, even though I could be reimbursed by the state."

"I'd rather save taxpayer money."

"If it's so important, then either the state or they should pay for it," Horner said.

Legislators for nearly a decade have received a base salary of $79,500, but most get leadership stipends from a few thousand dollars to tens of thousands of dollars.

Per-diem payments for living expenses in Albany can add another $15,000.

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On the Net:

NYPIRG: http://www.nypirg.org

[Livyjr]

"Lobbyists push for tax increases to offset budget shortfall"

By VALERIE BAUMAN, Associated Press

Last updated: 4:43 p.m., Thursday, March 27, 2008

ALBANY -- Lobbyists are making a last-minute push for higher taxes on millionaires and smokers as the budget deadline approaches in less than a week.

With a $4.6 billion budget deficit looming, two lobbying campaigns claim to have partial solutions to the state's financial burdens as lawmakers push to meet the April 1 deadline for a new budget.

New Yorkers for Fiscal Fairness, a coalition including the state's large public employee unions, is paying more than $100,000 for radio advertisements that argue for a tax increase for people with incomes of $1 million or more because "the wealthiest New Yorkers just aren't paying their fair share."

The ad says the only alternative would be cutting funding for hospitals, schools and colleges.

"Taxing millionaires or cutting schools and health care -- that's an easy choice," the ad says.

The heavy-handed tactic is common this time of year as lawmakers are under close scrutiny for how they craft the roughly $124 billion budget and whether they will get it done on time.

Politicians and lobbyists like to complain about budget cuts, but they are referring to cuts in budget growth, rather than spending less than last year.

Frank Mauro, of the Fiscal Policy Institute, one of the groups in the coalition supporting the tax increase, said New York has to figure out what is the least harmful way to balance the budget in a recession.

But opponents of the tax increase say the radio ads go too far.

"It crosses the boundary into the ridiculous," said E.J. McMahon, of the Empire Center for New York State Policy.

"It creates this specter of budget cuts and service cuts that just isn't there.

The Empire Center, part of the fiscally conservative Manhattan Institute, has issued a response to the coalition's ad, rejecting its arguments for increasing taxes.

McMahon advocates minimizing growth in government spending.

For instance, the center argues that the executive budget would increase school aid by $1.5 billion, or 7 percent, on top of last year's increase.

Gov. David Paterson proposed cutting $800 million from the executive budget offered earlier this year by former Gov. Eliot Spitzer before he resigned in disgrace, but it would still result in total state spending growth of 3.7 percent.

The millionaire tax has the support of the Assembly, but Paterson has said it's not the right time to raise taxes and Senate Republicans have rejected the idea entirely.

Another group pushing for a tax increase is the Center for a Tobacco Free New York.

The coalition spent $200,000 on radio advertisements and print ads that support doubling the $1.50 cigarette tax for a total $3 per-pack tax.

The ad starts with a song reminiscent of superhero cartoon themes, and a deep voice proclaiming "Most New York leaders can't bend steel with their bare hands."

"None can leap tall buildings with a single bound."

"But all can save lives with a single vote to increase the cigarette tax."

The ad argues that the increase would raise more than $480 million and prevent more than 290,000 children and teenagers from starting smoking.

Anti-smoking groups have long sought to increase the cost of buying cigarettes to deter people from the habit.

"The state can generate substantial new revenue and they'll also see a substantial decrease in health costs," said Jennifer Cucurullo, a spokeswoman for the American Cancer Society.

"This is just a money grab by the antismoking crowd," said Audrey Silk, founder of the New York City Citizens Lobbying Against Smoker Harassment.

"They're just shameless, and on top of it all, it creates nothing more than an incentive for the lucrative black market to step in."

The coalition is buying ads in all major daily newspapers outside of New York City.

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On the Net: http://www.abetterchoiceforny.org

http://www.empirecenter.org/2008/03/TaxHikeClaimFact.cfm

http://www.budget.state.ny.us/