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

[Livyjr]

THE WALL STREET JOURNAL

December 5, 2007, 9:07 am

"Cuomo Filling Spitzer Shoes, One Subpoena At a Time"

Posted by Peter Lattman

“The follow-the-money expression is, ‘follow the mortgage,’” said Andrew Cuomo at a press conference last month announcing supboenas issued to Fannie and Freddie.

Yesterday, Cuomo’s office continued to “follow the mortgage,” sending subpoenas to several big Wall Street investment banks seeking information related to the packaging and selling of debt tied to high-risk mortgages.

The banks — which include Merrill and Bear — declined to comment.

Here’s the WSJ story.

The subpoenas.

The soundbite.

The headline-grabbing investigations.

With each passing day it seems that the New York attorney general is following the playbook of predecessor Eliot Spitzer.

Spitzer junkies should click here http://www.newyorker.com/reporting/2007/12...n?currentPage=1 for a 12,000-word New Yorker piece, “The Humbling of Eliot Spitzer,” marking the governor’s first year in office.

Here’s an entertaining excerpt:

Spitzer is a lawyer, a logician, a tactician, a policy fanatic, but not a deep thinker or a self-doubter.

He is not inclined toward wistfulness or wonder, which is not to say that he isn’t caring or curious.

It is often said by those who know him, and by Spitzer himself, that what you see is what you get.

When I first met him, he said, with some disdain, “You going to write about my childhood?”

A month later, he said, “Let me ask you: is my life much more boring than people presume?"

"And don’t you think most lives are?”

He’s didactic.

He says “Look” a lot.

He’s a world-class square, but he can be funny and good-natured.

His humor relies on mockery, of others and of himself, although his self-deprecations often end in self-aggrandizement.

His stock “stupid story about missing class,” as he called it—about going back to Harvard Law School and being ribbed by two professors for not having ever gone to their lectures—ended with the punch line “Yeah, but has it hurt my career?”

The most commonly heard criticism of him, which has dogged him at least since his days as attorney general, is that he is a bully, which encompasses not just professional aggression but also what many regard as a preening rectitude and a tendency toward intellectual arrogance.

He understands that his idiosyncrasies, his hyperachiever habits, are both salutary and worthy of ribbing.

When you are followed around every day by a mob of reporters and aides, your mannerisms, however sincere, can soon seem like affectations.

Squareness can come off as shtick.

He wears only white button-down shirts, which he buys at Brooks Brothers.

He bought a blue one once:

“It was unnerving."

"Never wore it.”

He gets up at five in the morning to jog; he’s known for it, and wants you to know it, but if it’s a pose it’s a hard-earned one.

His first thought upon waking each day, he says, is a wish for two more hours’ sleep.

http://blogs.wsj.com/law/2007/12/05/cuomo-...time/trackback/

[Livyjr]

"Immunity weighed in travel probe - Senate panel considers offering a deal to former top Spitzer aide, but the path appears very difficult"

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

First published: Wednesday, December 5, 2007

ALBANY -- The Senate Investigations Committee is looking at the possibility of offering immunity to a former top aide to Gov. Eliot Spitzer in its probe of a travel records scandal, the panel's chairman said Tuesday.

But that would require approval by the full Legislature -- and the governor himself -- said Bennett Liebman, acting director of the Government Law Center at Albany Law School.

The Senate Investigations Committee has subpoenaed Spitzer's former communications director, Darren Dopp, and also the governor's office, for memos, letters, notes and other material relating to a scandal in which Spitzer aides directed State Police to compile travel records on Senate Republican Majority Leader Joseph L. Bruno.

The committee's chairman, Sen. George Winner, R-Elmira, said the committee is exploring giving Dopp immunity from prosecution as an incentive to disclose more than has so far been revealed.

"We have talked about it, recognizing that it is an option," said Winner.

So far, investigations by Attorney General Andrew Cuomo and Albany County District Attorney David Soares have found no criminal wrongdoing.

Soares, however, is exploring possible discrepancies in what Dopp told Cuomo, the state Commission on Public Integrity, and the district attorney himself, and whether the former aide may have committed perjury or obstruction of justice.

Soares' office declined comment on Tuesday.

The possible offer of immunity underscores the Senate Republicans' questioning of whether the effort to have State Police compile the travel records on Bruno was known to Spitzer himself.

The governor has maintained he was unaware that Dopp and others had told Acting State Police Superintendent Preston Felton to get the records.

For district attorneys, an offer of immunity is one of several tactics that can be used in an investigation.

"That's a prosecutorial tool that's generally kept close to the vest," said Ray Kelly, a veteran Albany defense lawyer who, like other attorneys, stressed that he was speaking in general terms and not about the Dopp case.

"There would have to be some target in mind," said Brian Devane, an Albany lawyer.

But Abany Law School's Liebman said neither the committee nor the Legislature has the same power as a district attorney to grant immunity.

That was decided in a 1931 Court of Appeals decision, he said.

The decision said immunity could only be granted through a bill empowering the committee to do so and would require approval by the Senate and Assembly, and the governor's signature.

If the governor vetoed it, both chambers would have to override the veto for it to be enacted.

If the Senate, controlled by Republicans, tried to push such a bill in this instance, it could draw the Democrat-controlled Assembly into a heavily politicized affair it has mostly avoided.

A similar situation occurred almost two decades ago when the felony convictions of Oliver North, an aide to President Ronald Reagan, were vacated in the Iran-Contra Affair because Congress had granted him immunity.

But the powers of Congress and the state Senate are, as Kelly said, "apples and oranges."

State law offers two types of immunity: "Use immunity," which prevents prosecutors from using the particular testimony given by a witness against that witness; and the broader "transactional immunity," which protects the witness from any charges pertaining to his testimony, no matter where the information comes from.

Another possibility would be if the Senate committee requested Soares to offer immunity.

However, the Republican-controlled committee and Soares, a Democrat, have not been communicating.

"I've never spoken to Soares in my life," Winner said.

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

[Livyjr]

"No 'shake-up' of Spitzer team - Three key position changes among aides described as 'fine tuning' administration"

By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union

First published: Friday, December 7, 2007

ALBANY -- Gov. Eliot Spitzer's aides Thursday dismissed speculation of a "shake-up" within his central staff and portrayed three key position changes announced late Wednesday as the "fine tuning" of a team preparing for Year Two of Day One.

Paul Francis, Spitzer's budget director and senior adviser, is moving to the governor's chambers as director of state operations starting in the new year.

Francis will replace Olivia Golden, who has been cast by some people she's worked with as smart but not suited to overseeing all the state's agencies and seeing to it that the governor's directives and policies are enforced.

Over the past three years, Francis has consumed knowledge about the state agencies and is seen as a good choice for the post.

"It's not a shake-up, it's an evolutionary change," said Francis, who has been helping the governor develop policy since 2005 as a campaign adviser and as budget director.

Francis, who will keep his $175,600 salary (Golden was paid $169,000), will report to Rich Baum, chief of staff for the governor, but will have a direct line to Spitzer if necessary.

He said speculation that he desires Baum's job or that Baum is leaving is incorrect.

Aides to the governor say no substantial changes are envisioned.

"I have absolutely no desire than to be the director of state operations and work in a partnership with Rich ..."

"Rich trumps me ..."

"Both of us will be in these jobs for as long as the governor is the governor," Francis said.

He said Baum will focus on issues from a political or strategic perspective and he'll work on programmatic matters, using a new metric set up by Golden to measure agency performance.

Golden, according to several interviews of people within and outside of government, was a strange choice -- a child welfare expert and former Clinton administration assistant secretary for children and families at the U.S. Health Department.

To come to New York and work with government agencies employing 200,000 people was a tough task, the officials say.

Her departure, recommended by some of Spitzer's advisers, has followed a handful of exits this year of key administration figures, including Darren Dopp, the former director of communications, and Steven Mitnick, the governor's former energy adviser.

Both resigned amid accusations they abused their positions.

"I don't think it's a shake-up," said former budget director John Cape, who served Gov. George Pataki.

"It's the normal process every new administration goes through in deciding the highest and best use of their talent."

He said it seems Spitzer is figuring out where it makes sense to reposition people.

He said Francis has been an excellent budget manager and tactician and Laura Anglin, the incoming budget director, is "phenomenally talented and experienced."

The changes should solidify two important units of the administration at a time when agency finances and state spending will be under close watch.

Francis will be working with Kristin Proud, the former deputy secretary to the Assembly Ways and Means Committee who had been serving as an administration health care adviser.

In November Spitzer reassigned her as deputy director of state operations.

"The pairing of Paul Francis and Kristin Proud gives the administration a very powerful one-two punch in the operations area," said Patrick Bulgaro, who served as budget director under Gov. Mario Cuomo.

Francis' job as budget director fell to his top deputy.

Anglin, who has been working at top level government financial posts for nearly 20 years, will see her pay rise to $175,000 from $169,733.

She has essentially been running budget functions while Francis worked on issues not typically associated with the budget director, such as the state racing franchise.

"Laura has been the chief operating officer of the budget division while I've been the chief executive officer of the division," Francis said.

"The fact that she is so strong on all the details of the budget has given me the time to spend on a large number of other policy areas."

Francis, who comes from a business background -- he was chief financial officer of Priceline.com. -- is unlike a lot of the governor's other top advisers who are lawyers, including Sean Patrick Maloney, leaders of Spitzer's attorney general office such as David Nocenti and Peter Pope, and close allies, particularly Lloyd Constantine and wife Silda Wall Spitzer.

James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.

[Livyjr]

"Spitzer says his scandal testimony won't become public"

By MICHAEL GORMLEY, Associated Press

Last updated: 3:53 p.m., Friday, December 7, 2007

ALBANY -- Gov. Eliot Spitzer said he will not make public his expected testimony to the Public Integrity Commission on the political scandal in which his aides are accused of tracking the travels of Senate Republican leader Joseph Bruno.

"The reason I can't is because it's their rules, not mine," Spitzer told The Buffalo News editorial board.

"And their rules don't permit it."

Commission spokesman Walter Ayres on Friday said the rules of the commission, like its precursor Ethics Commission, prohibit the body from releasing testimony.

Spitzer replaced the Ethics Commission as part of his government reform measures.

It is controlled by his appointees.

Asked if any person questioned by the commission could request that the testimony be made public, Ayres said:

"Although the law does not allow me to comment about ongoing investigations, I can confirm that it has not been the policy of the commission to provide transcripts of depositions or to allow witnesses to record their testimony."

Ayres declined to respond when pressed on whether a policy means public release of the testimony was prohibited by the commission.

Spitzer spokesman Errol Cockfield had no immediate comment.

"So much for sunshine and open government," said Sen. George H. Winner Jr., an Elmira Republican whose committee is also investigating the scandal that has halted bipartisan cooperation in Albany since early summer.

"It's a solar eclipse when it comes to his government."

Winner, who like Spitzer is a lawyer, said the governor could choose to waive his confidentiality in testimony to the Public Integrity Commission.

Winner also said the commission could establish rules for the testimony that would make it public, if Spitzer or commissioners desired.

Spitzer campaigned last year as a crusader to open up government.

He hasn't testified publicly in the scandal in which two of his top aides are accused of misusing state police to compile records of Bruno's use of state aircraft on days he mixed meetings with lobbyists with GOP fundraisers.

Attorney General Andrew Cuomo found no crimes were committed, but found the aides acted improperly.

Albany County District Attorney P. David Soares also found no laws were broken and found no proof of a political plot to smear Bruno by releasing the records to a reporter who had requested them.

"I have nothing to say that I haven't said," Spitzer told the Buffalo News editorial board in repeating that he wants to testify to the Public Integrity Commission.

He has not yet been asked to testify before the commission.

The Spitzer administration, however, continued to fight Winner's subpoenas in court on Thursday in Manhattan.

Winner seeks records from Spitzer and records and testimony from his former communications director, Darren Dopp, who has been accused of a leading role in the alleged plot.

"So the stonewalling continues," Winner said.

Earlier this week, Dopp avoided -- at least for now -- a possible perjury charge from a grand jury Soares was expected to impanel.

"I have reason to believe the matter has been delayed," said Dopp's attorney, Michael Koenig.

"I am not privy to the district attorney's decision-making process nor the status of their investigation."

"I would hope and expect that, based upon the facts of the law, charges are not brought against my client."

Soares wouldn't comment.

[Livyjr]

"Audit: NYRA shorted state $54 million in franchise fees"

By MICHAEL GORMLEY, Associated Press

Last updated: 2:44 p.m., Friday, December 7, 2007

ALBANY -- The New York Racing Association -- which may be facing its final three weeks in business after running thoroughbred racing since 1955 -- was hit with more bad news Friday when auditors claimed it failed to pay the state $54 million in franchise fees since 2000.

The audit by state Comptroller Thomas DiNapoli found NYRA shorted the fees by $10.9 million in 2004-2005 alone.

NYRA pays the state for the right to run the Aqueduct, Belmont and Saratoga race tracks under the franchise.

The fee is based on a calculation of revenue after expenses.

"Over and over again our auditors have found that NYRA has continually misinterpreted the mathematical formula for calculating the franchise fee and shortchanged taxpayers," DiNapoli said.

NYRA President Charles Hayward said the criticism is unwarranted, but he supports DiNapoli if he is calling for a review of how the franchise fee is calculated.

"We have sought legal and financial advice from lawyers and accountants who tell us we're doing it the right way," Hayward said.

NYRA has paid little or no franchise fee since 2000 because expenses have exceeded revenue.

"If the comptroller is asking for clarification, then we applaud it."

"But we think we're doing it right," Hayward said.

NYRA's franchise ends Dec. 31 and it is trying to win renewal over three competitors, each of which has less experience in running thoroughbred tracks but promises more money for the state.

Legislative leaders and Gov. Eliot Spitzer, who favors NYRA, continue negotiations.

The Legislature could make a choice as early as Thursday, when a special session is planned.

Earlier this week, the state Commission of Investigation subpoenaed the law firm NYRA hired as its "integrity counsel."

The Senate's Republican majority, which opposes Spitzer's plan, has criticized NYRA's $125,000-a-month, no-bid contract with the Manhattan firm of Getnick & Getnick.

"The comptroller's audit is another reason why we can't support the governor's plan to continue the status quo with NYRA," said Scott Reif, spokesman for Senate Majority Leader Joseph Bruno.

"It's imperative that we work towards a final deal that creates a stronger model for racing and is in the best interest of taxpayers."

NYRA, which has said its nonprofit status is outdated and keeps it from competing profitably with casinos and other gambling venues, is vying with Empire Racing, Capital Play and Excelsior Racing Associates for what is expected to be a 30-year franchise to operate New York's tracks.

"The state has exercised oversight over NYRA for the past 50 years and things keep going from bad to worse," said Empire's Jeffrey Perlee.

"At some point we have to acknowledge that trying to simply reform the business operations of a chronically dysfunctional organization is throwing more good money after bad."

------

On the Net:

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

[Livyjr]

"NYRA consultant target of subpoena - No-bid contract pays 'integrity counsel' $125,000 per month"

By JAMES M. ODATO, Capitol bureau, Albany, New York Times Union

First published: Thursday, December 6, 2007

ALBANY -- The State Commission of Investigation on Wednesday subpoenaed a consultant hired on a no-bid contract by the New York Racing Association.

Attorney Neil Getnick, hired last summer as NYRA's $125,000-per-month "integrity counsel," confirmed the subpoena.

The commission's chief counsel, Anthony Cartusciello, said he could not discuss matters before the panel, a six-person body dominated by appointees of former Gov. George Pataki and Senate Majority Leader Joseph L. Bruno.

The commission received an anonymous letter claiming Getnick conspired with Gov. Eliot Spitzer's office to subvert the process for awarding the racing franchise for operations at Saratoga, Aqueduct and Belmont Park thoroughbred tracks and steer it to NYRA and Excelsior Racing Associates.

NYRA's contract to Getnick's law firm, Getnick & Getnick, was criticized by Senate Republicans in earlier hearings and by NYRA's competitors for the franchise.

Getnick was the court-appointed monitor overseeing NYRA during its deferred criminal prosecution in a federal tax fraud case in 2003.

"I regret that I was not afforded the opportunity to appear before the state Senate Racing Committee when it held its NYRA-related hearings earlier this fall," Getnick said.

"I would welcome the opportunity to testify before the state investigation commission."

"The facts are straightforward and should be heard by the public."

The subpoena calls for information on NYRA's process for awarding contracts and related matters.

The state comptroller in the past has faulted NYRA's failure to follow competitive bidding rules, and the Racing and Wagering Commission has specifically criticized the Getnick contract.

NYRA Chairman Steven Duncker has defended the five-year contract, saying Getnick is uniquely qualified, having worked as NYRA's monitor for 18 months, and that racing law allows some exemptions from competitive bidding.

He has called the letter "a pack of lies."

Duncker would not comment further Wednesday, but said NYRA has not been subpoenaed.

Bruno called on Spitzer to meet publicly Dec. 10 with legislative leaders to discuss the "future of racing."

NYRA's franchise to operate races expires at year's end, and the Senate is rejecting Spitzer's plan to extend NYRA's franchise for 30 years.

Spitzer's aides had no immediate comment.

James M. Odato can be reached at 454-5083 or by e-mail at jodato@timesunion.com.

[Livyjr]

"Buyers' confidence lowest in four years - Consumers across New York state hit hard by high energy prices"

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

First published: Thursday, December 6, 2007

COLONIE -- The statewide index of consumer confidence hit its lowest point in more than four years in November, the Siena Research Institute reported Wednesday.

And it could have further to fall, said the institute's director.

"With high energy prices, the housing slump and the Fed predicting a slower economy next year, consumer confidence may not have found the bottom yet," said Douglas Lonnstrom, the institute's founding director and a professor of statistics and finance at Siena College in Loudonville.

"Just listen to the concerns of low-income citizens as well as women and older New Yorkers."

Confidence was lowest among those three groups, according to the survey.

Lonnstrom said high energy costs are likely hitting low-income households particularly hard, taking a bigger chunk of their budgets, while older adults on fixed incomes also are seeing less money left over after paying higher gasoline and utility bills.

"In a lot of households, women pay the bills," he added, "so they're seeing this before the men."

For some households, the bills are having a snowball effect, said Karen Dettbarn of the Consumer Credit Counseling Service in Colonie.

"Their heat, their electric, their gas, their car -- if they fall behind on one, all of the other credit cards can increase their interest rates," she said, boosting the finance costs on debt and putting the consumer further behind.

They're cutting back or eliminating holiday spending to make ends meet, she said.

Economists follow confidence surveys closely because they measure consumers' willingness to spend, and that spending makes up about two-thirds of the nation's overall economic activity.

The Siena survey is based on one conducted nationally by the University of Michigan, with the index set at 100 in the base year of 1966.

The statewide index fell 2.4 points to 69.5 in November, about 6.6 points below the nation's 76.1 index, which was down 4.8 points from October.

The state's reading was the lowest since the spring of 2003.

Lonnstrom said a separate part of the survey that measures buying plans for certain big-ticket items yielded one bit of positive news.

That was a slight uptick in consumers' plans to buy homes and furniture and to make major home improvements.

But buying plans for cars, trucks and computers were down.

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

Pessimism prevails

While Republicans felt more optimistic, overall confidence among other groups in New York state was flat or declined from October to November:

Group \\\ Index \\\ Change

Republicans \\\ 79.1 \\\ 0.3

United States \\\ 76.1 \\\ -4.8

Under 55 \\\ 75.4 \\\ -2.5

Higher-income \\\ 74.4 \\\ -2.9

Men \\\ 73.9 \\\ -0.2

Metro NYC \\\ 70.4 \\\ -3.7

New York state \\\ 69.5 \\\ -2.4

Democrats \\\ 68.5 \\\ -4.6

Upstate NY \\\ 67.7 \\\ 0.0

Women \\\ 65.1 \\\ -4.4

55 and over \\\ 64.5 \\\ -2.5

Lower income \\\ 60.5 \\\ -4.6

Source: Siena Research Institute; U.S. data from University of Michigan

[Livyjr]

"GOP should slam coffin lid on boring, costly Troopergate"

By FRED LeBRUN, Albany, New York Times Union

First published: Sunday, December 9, 2007

After six months, Troopergate has become not just boring, but increasingly an expensive annoyance.

Continued, hysterical pursuit by Senate Republicans is becoming more and more about them, and not about revealing some higher, or even lower, truth concerning a long-ago incident that was more embarrassing than anything else.

What's the taxpayers' running tab, I wonder, for the imported legal gurus guiding our esteemed lawmakers in their hounding of Governor Spitzer's former communications director, Darren Dopp?

Because I'm confident that if it were up to the public, the Washington legal team behind Senate Republican efforts to keep this a hot political issue no matter what would be sent packing.

The simple truth is any significant point to the multiple inquiries still gasping for breath have already played out in the tabloids.

Every innuendo, truthful or otherwise, has been teased out to infinity.

So what's the point anymore?

What more can we learn, or be instructed by, that the public has not already absorbed and adjusted to?

The very worst the Republicans could possibly pin on Eliot Spitzer is that he knew more than he said about the ill-conceived plan to get the goods on Senate Majority Leader Joe Bruno's inappropriate use of state aircraft for personal and political business.

That's the very worst of it, and chances are they won't come close to that.

A month ago in a Siena College poll, a great majority of the public said they already believed the governor did know more than he said.

So what more is there to gain by prolonging this expensive agony?

From their perspective, Senate Republicans have the best of both worlds at the moment, anyway.

They've managed to poison the air enough so that most New Yorkers believe the blackest thoughts about Governor Spitzer and his administration, without ever having to actually prove anything.

So give us all a break, senators, and let this chicken-feed issue die a natural death.

Continue this nonsense at your peril, though.

That same Siena College poll showed only about 10 percent of the public consider Troopergate an important issue.

By now, that's probably well down into the single digits.

What the folks back in the home district ought to be asking is why are $100,000-a-year legislators wasting their time on this?

In its time, did Troopergate serve a purpose and reveal a sort of institutional arrogance about the Spitzer administration?

The answer is yes, no question.

Spitzer has taken a beating over it, and should have, and I believe he has made adjustments because of it.

But I'll go out on my customary limb here and assert that in five years time, what will be remembered as equally significant if not more so is that Troopergate marked the end of the frightfully expensive abuse of state aircraft by politicians, notably Joe Bruno.

Finally those helicopters and airplanes are radioactive for the pols.

Mario Cuomo couldn't do that, George Pataki didn't want to, but now Eliot Spitzer will be credited with a true, quantifiable reform.

At a heavy price, obviously.

The latest meaningless blip that's got Senate Republican shorts in a knot is that Albany County District Attorney David Soares won't pursue perjury charges against Dopp over alleged inconsistencies in statements to various investigators.

First off, proving perjury is tough under the best of circumstances, lawyers tell me.

In this case, there's a question whether one of the statements was sworn.

If it wasn't, perjury couldn't happen.

Beyond that, the Dopp statements supposedly at variance are hardly a smoking gun.

They amount to wording about impropriety versus appearance of impropriety.

Only stuff a lawyer, or an opportunistic pol, would give a rat's whiskers about.

The short of it is David Soares did exactly the right thing.

Which brings us finally to our much ballyhooed state Commission on Public Integrity.

Where is it?

The commission has had the better part of three months to give us the definitive word on Troopergate so we can slam the coffin closed.

We're not talking Pentagon Papers here, or Watergate break-in.

All the players are well-known, the incident pretty straight forward.

Come on, already.

You're making this look like state work.

Fred LeBrun can be reached at 454-5453 or by e-mail at flebrun@timesunion.com.

[Livyjr]

"For Spitzer, Day 1 seems so long ago - On Jan. 1, the Sheriff of Wall Street rode into town with plans to clean up the Capitol; results have been mixed"

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

First published: Sunday, December 9, 2007

Everything changed on "Day One," but not the way people thought it would.

Last year around this time, when Eliot Spitzer rode into town as the triumphant candidate, his reputation preceded him.

Hopes were high for the new governor.

He'd do for Albany's infamous dysfunction what he did as attorney general, the job in which he earned the moniker "Sheriff of Wall Street."

He would clean up the Capitol and shatter the "status quo," even if it meant stepping on toes or knocking heads.

Even Republicans cheered the Democrat, who seemed like a breath of fresh air following the increasingly detached style of three-term Gov. George Pataki.

Fast forward to November.

After months of blunders, battles and missteps, his political status was summed up in a Buffalo News headline:

"As Spitzer Arrives, Democrats Cringe."

If nothing else, Spitzer may have set a record for how far a governor could fall in both opinion polls and in the eyes of fellow politicians.

According to one poll, from the Siena Research Institute in November, Spitzer's favorability-unfavorability rating was 41 percent to 46 percent, compared with 75 percent to 10 percent in January.

The question is: Can he turn that around?

The answer might sound like one of those old psychiatrist jokes: Yes, he can change, but he'll really have to want to.

Certainly, the governor had some early successes, such as pushing through workers compensation reforms, passing a civil confinement law and simplifying school funding -- all of which Pataki had sought, but not achieved.

But Spitzer also used up his goodwill at the same frenzied pace as he went after reforms.

First, there was his effort to control the selection of a new comptroller when Alan Hevesi was forced to resign after last year's Chauffeurgate scandal.

Spitzer lost that battle to the Democratic Assembly, which chose one of its own, Tom DiNapoli.

Next came the still-raging war with Senate Republican Majority Leader Joseph L. Bruno.

That fight actually started in the winter, when Spitzer hired Republican Sen. Michael Balboni as his homeland security czar and worked to get Craig Johnson elected in his place.

Johnson won, reducing the Republicans' already tenuous hold on the chamber, its last bastion of power in state government.

With Bruno and other Republicans on notice that more efforts to unseat them were coming, the GOP was looking for a way to go on the offense.

They didn't have to look hard.

By summer, Spitzer was caught up in a travel records scandal in which his aides had State Police gather records on Bruno's state-funded travel.

Bruno charged the governor with "political espionage."

That battle continues, although it was briefly overshadowed this fall when Spitzer tried to enact a plan giving driver's licenses to illegal immigrants.

Even the way Spitzer backed down in the license fight angered people.

Fellow Democrats complained that the governor changed course without warning.

His personal style hasn't helped build bridges.

First there was the tirade where Spitzer told Assembly Minority Leader Jim Tedisco he was a "(expletive) steamroller."

Then came an elliptical remark referring to Bruno as an "old senile piece of (expletive)."

The governor, in the words of political consultant Doug Muzzio, had turned "toxic."

Pundits, consultants and other members of the chattering class offer a common explanation: Spitzer may have been good as a prosecutor, but has yet to grasp that the governor's job is a lot different.

Perhaps the best indication of that were his personnel choices.

Spitzer put the governor's office largely in the hands of prosecutors he had worked with previously, either as a federal lawyer or as attorney general.

That was a recipe for problems.

A prosecutor can threaten a business with legal action, and even if the business owner thinks he's right, he may settle a case out of pure practicality.

Lawmakers, though, can't be shut down or put out of business by a zealous governor.

Some politicians even relish a good fight.

Spitzer fell into other traps, noted Albany Assemblyman Jack McEneny.

He might have assumed the Legislature's reputation for dysfunction meant he could pick off lawmakers at will.

But public distaste for a group rarely applies to individual members, who work to build personal connections with voters.

And, Spitzer might have mistaken his nearly 70 percent electoral margin as a personal mandate, when voters might have simply wanted a change after 12 years of Republican leadership.

"Did they vote for Spitzer or a Democrat or did they vote for a change?" asked McEneny.

Still, McEneny and others note this is just the first of three years in Spitzer's term.

"This better be the learning year because in year two he flunks out," Muzzio said.

The test in 2008 will be twofold: Can Spitzer get the policies he wants, such as campaign finance reform, even in a tough budget year?

And, can he help Democrats take over the Senate after decades of Republican control?

On the second count, Spitzer has numbers on his side: Enrolled Democrats outnumber Republicans 5-3.

And, many Republican senators are in their 70s.

So how would the governor use this to his advantage?.

First, pundits say, he needs to learn from past mistakes by not inciting what could be viewed as unnecessary confrontations, such as the comptroller issue.

There are some indications he's doing that.

His secretary, Richard Baum, has been contacting lawmakers who've been critical of the governor, listening to their concerns and trying to smooth things over.

"Every day in politics is a learning process," said Assemblyman Keith Wright, D-Manhattan, among the vocal Spitzer critics Baum recently reached out to.

Like others, Wright noted lots of office holders have had rough first terms.

President Bill Clinton, for example, struggled early on with battles over gays in the military, and with Hillary Rodham Clinton's aborted health care overhaul.

One veteran Capitol lobbyist and observer, who asked not to be named because he deals with state agencies, compared Spitzer to Gov. Al Smith, who served through the 1920s.

Like Spitzer, Smith was a reform-minded Democrat from Manhattan who faced an entrenched Legislature that had even more power than today.

Smith traveled the state, frequently blasting lawmakers in his efforts to streamline government, which was riddled with even more opaque commissions, regulatory boards and fiefdoms controlled by lawmakers.

Eventually, he noted, Smith simply wore down many of his opponents.

Spitzer certainly seems to have the energy and wherewithal to wage such a long-term fight, and recently, he's exhibited a willingness to change course to avert a needless political dust-up.

Case in point: When Assembly Republican Minority Leader Jim Tedisco complained in October that a free health clinic in Schenectady had its funding cut by the governor's office due to political pique, the money was eventually restored.

And, after the Times Union reported on plans for a downsized Martin Luther King Day celebration in Albany, the governor's office switched course on that, too, when it quickly became apparent the idea didn't sit well with the public.

"Even in the last couple of weeks I think you've seen a softening of positions and more of a collegial governor," said Sen. Neil Breslin.

So is there a kinder, gentler Eliot Spitzer and will there be harmony with people like Bruno?

That might be a stretch, Spitzer indicated in an interview Friday with the Times Union.

The main thing he learned during his first year in office, he said, is there is a lot of "push-back" when you're trying to force a change.

Spitzer ran through a list of accomplishments, including stem cell research funding, school finance reform, laws against human trafficking, and budgeting reforms, adding, "you can get all those things done, but people push back."

That's a lesson he learned as attorney general, when he took on Wall Street brokerage firms and insurance companies.

He said it won't deter him.

"There was enormous push-back, greater push-back than what I've gotten here," he said.

"I believe in sticking to principles and we will continue to drive forward a reform agenda."

As for Bruno, spokesman Mark Hansen said the Senate's priorities next year will continue to be property tax relief, education, health care and job creation.

"We will be looking to see what the governor proposes to see how he addresses those priorities."

So what's the best advice?

To really turn things around, the governor should recall what he did after he ran -- and lost -- his first race for attorney general in 1994, said Steve Pigeon, who served as Erie County Democratic chairman at the time.

After the defeat, Spitzer regrouped and spent part of the next four years traveling the state and keeping touch with county chairs and others in preparation for another run.

"Don't hit a panic button, but go back to the basics," Pigeon said.

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

[Livyjr]

After months of blunders, battles and missteps, his political status was summed up in a Buffalo News headline:

"As Spitzer Arrives, Democrats Cringe."

If nothing else, Spitzer may have set a record for how far a governor could fall in both opinion polls and in the eyes of fellow politicians.

"Housing slump damages state revenue: report"

Mon Dec 10, 12:46 AM ET

WASHINGTON (Reuters) - The U.S. housing slump has damaged many states' revenue streams, leaving some with shortfalls and worries about funding education and health care, according to a report released by the National Conference of State Legislators on Monday.

Legislative fiscal directors from 24 states said their states' revenue was affected last quarter by the housing market's plummet.

Florida reported the slowdown directly or indirectly hurt all of the state's major revenue sources.

Local governments generally collect property taxes, but states can levy related charges such as mortgage taxes.

More than 12 states and Puerto Rico had declines in real estate transfer and recording taxes, according to the survey, which was conducted in November and covered the first four months of fiscal 2008 for most states.

"Many states anticipated a slowdown in this revenue source, but the drop is even higher than expected," the report said.

The overall revenue picture was mixed with some states, particularly in the west or Midwest, raising their fiscal 2008 forecasts, while others, most notably California, Florida and New York, lowering theirs.

Florida has dropped its general fund estimate by $2.1 billion since August.

"Although early warning signs do not portend immediate bad news, concerns for current year budgets are mounting with even greater concern for some states in (fiscal) 2009," the report said.

"If the economy takes a turn for the worse, state finances undoubtedly will decline from the situation reported here."

Last week's report from the National Governors Association and National Association of State Budget Officers reached the same conclusion.

Only nine states had optimistic revenue outlooks for the rest of their fiscal year, compared to 16 states that had positive expectations in November 2006, according to the survey.

Nearly 20 states expressed concerns about revenue, compared to just six last year.

In Arizona for example, overall tax collections were 7.3 percent below the state's forecast, according to the NCSL report.

Surpluses from past years' revenue surges may help those states that built up a financial cushion, NCSL said.

Meanwhile perennial spending pressures like Medicaid, the federal and state-funded health care program, remained.

Education was also a burden, according to the report.

California may have to make up for some education funding shortfalls, while Connecticut and Kansas must cover swelling special education costs.

(Reporting by Lisa Lambert; Editing by James Dalgleish)

[Livyjr]

"Spitzer officials say no policy change in violent felon paroles"

By MICHAEL HILL, Associated Press

Last updated: 12:52 p.m., Sunday, December 9, 2007

ALBANY -- Ailing at age 89, Charles Friedgood will leave prison this month after more than three decades behind bars.

The wife killer with terminal cancer had been denied parole five times when a board finally granted him release last month.

Friedgood's parole comes as inmates convicted of the most violent crimes are being released at a higher rate under the first-year administration of Gov. Eliot Spitzer compared to his predecessor.

Parole officials stress there is no policy change and that they merely are making careful decisions based on the law.

But early numbers suggest a change since the Pataki administration.

Parole boards through October of this year interviewed 1,087 so-called "A-1" violent felons -- those convicted of murder, attempted murder, kidnapping or arson in the first degree -- and granted release to 118, or 17 percent.

That compares to release rates in the 5 to 6 percent range for those inmates during the last two complete fiscal years of the Pataki administration.

The Republican governor came into office promoting a tough-on-crime philosophy and parole boards began granting releases at a lower rate after he succeeded Democratic Gov. Mario Cuomo in 1995.

While there was no formal policy to deny release to inmates convicted of violent felonies, critics say that was the practical effect.

Spitzer's parole chairman, George Alexander, would not speak to The Associated Press about release rates under the new administration.

Spokesman Mark Johnson said 10 months of data available is not enough time to discern if there is a trend.

He added that the parole board operates independently of political pressure.

"The Board of Parole, by law, operates as independent quasi-judicial body that functions outside of politics," Johnson said in an e-mail.

"Decisions made by the board are done independently on a case-by-case basis."

"All cases are different and considered on their own merits."

In fact, Alexander in April reminded parole board members in a memo that, by law, they must consider a number of factors when deciding whether to grant supervised release to an inmate.

Factors include not only the applicant's crime, but his institutional record and prior criminal record.

Parole has always been a sensitive issue for public officials.

A release policy viewed as too lenient can inflame public opinion, while a lockdown on releases can lead to other problems.

Pataki was sued in federal court in 2006 by inmates who claimed they had been denied parole improperly.

Lawyers for the inmates claimed there was an "unofficial policy" of making blanket denials for A-1 violent felons based solely on their crimes.

Settlement talks in the lawsuit ended last month when the state pulled out.

Robert Isseks, attorney for the inmates, said a finalized settlement was imminent when the state suddenly withdrew without an explanation.

The withdrawal came shortly after details of the pending deal began leaking out.

The Daily News published a story about the possible settlement under a headline that read in part:

"Eliot Eyes Deal in Suit to Spring State's Most Heinous Killers."

Spitzer spokesman Paul Larrabee did not say why the state broke off talks, but stressed that officials were guided by public safety.

"The state absolutely has a right to deny parole to some violent felons in order to protect the citizens of the state," Larrabee said.

The inmate lawsuit is pending in White Plains before a federal judge, who on Thursday denied the state's motion to dismiss based on a change in administrations in Albany.

Isseks said that despite anecdotal evidence that some inmates are being granted parole after proper consideration by parole boards, other inmates continue to be denied parole based solely on the nature of their offense.

"It appears to be a random sort of thing," Isseks said.

"Some people get released, some people don't."

He said the lawsuit is still relevant.

Despite Spitzer's election, Pataki nominees continue to dominate the 19-member parole board.

Members are appointed to six-year terms and Spitzer appointees are not likely to gain a majority during this term.

Two slots are currently vacant.

Still, Friedgood's release suggests the administration in Albany can affect parole decisions.

Friedgood, convicted of killing his wife in 1976, was denied parole for a fifth time in October.

The three-member board said there was a good chance he would break the law again.

Within weeks, parole officials ordered a do-over, citing the pending lawsuit, which included Friedgood as a co-plaintiff.

A board consisting of three new members conducted a separate interview of Friedgood and granted him release on a 2-1 vote.

The initial three-member board that denied Friedgood parole included two Spitzer appointees.

The second board that released him consisted entirely of Pataki appointees.

[Livyjr]

"DiNapoli: NYRA Underpaid Franchise Fees by $10.9 Million - Urges Governor and Legislature to Ensure Strong Oversight of Future Race Track and VLT Operators"

State Comptroller Thomas P. DiNapoli today urged the Governor and Legislature to include strong oversight provisions in the legislation for the operation of the state’s racetracks and related video lottery terminals (VLT).

DiNapoli’s recommendations follow the release of an audit today that found the New York State Racing Association (NYRA) underpaid franchise fees owed to the state in 2004 and 2005 by a combined total of $10.9 million.

Comptroller audits have found that NYRA failed to pay the state nearly $54 million in franchise fees from 2000 to 2005.

“NYRA is legally required to pay taxpayers a reasonable amount in exchange for operating the state’s thoroughbred race tracks."

"But over and over again our auditors have found that NYRA has continually misinterpreted the mathematical formula for calculating the franchise fee and shortchanged taxpayers,” DiNapoli said.

“NYRA appears to have cleaned up some of its past practices but they’re still shortchanging taxpayers on franchise fees.

“The horse racing franchise is a valuable state asset."

"In any new proposal, the Governor and the Legislature should include provisions for strong oversight of the operators and clearly stipulate how any payments owed to the state are calculated so the operators can’t play games with what they owe taxpayers.”

Under state law, the Comptroller is required to certify NYRA’s annual franchise fee, which the Comptroller does every two years.

NYRA is required to perform certain year-end tests of expenses (106 and 90 percent tests defined in law) to determine its entire net adjusted income.

The franchise fee is calculated based on NYRA’s entire adjusted net income, less $2 million, which is to be allocated for horsemen’s stakes and purses.

If the adjusted net income for the year is less than $2 million, the entire amount is to be allocated for horsemen’s stakes and purses, and NYRA pays no franchise fee to the state.

When verifying the franchise fees for 2004 and 2005, auditors found that instead of using actual expenses (those expenses which comply with generally accepted accounting principles) as intended, NYRA calculated the fee using tax-basis expenses (those expenses which are deductible on its federal corporate tax return).

As a result, auditors found that NYRA did not pay $14.3 million it owed the state in 2004 because it calculated the franchise fee to be $0.

In 2005, auditors found that NYRA actually calculated it owed the state $3.3 million when auditors found that it did not owe anything to the state for that period.

Auditors note that specific tests exist in law to limit the amount of expenses incurred by NYRA.

Using only tax-basis expenses allows a significant amount of NYRA’s expenses to escape the budget and spending limitations set forth in statute.

For example, on NYRA’s 2005 tax return, its total tax-basis operating expenses were $146.4 million, while its actual operating expenses were $167.3 million, a difference of $20.9 million.

NYRA’s flawed methodology for calculating the franchise fee has also been used for developing its budgets.

Therefore, the NYRA Board of Trustees has not had an accurate picture of its financial situation when they voted on its budget.

Auditors found in 2005 NYRA started providing the board with both anticipated actual and tax-basis expenses when it prepared its budget.

Auditors noted that it was NYRA’s actual, and not tax-basis, expenses which have resulted in its current dire fiscal condition, deficits and bankruptcy.

Auditors also questioned NYRA’s practice to deduct accrued interest on its annual federal tax returns for a $74.5 million loan.

One of the Comptroller’s prior audits also questioned this practice and urged NYRA to obtain an Internal Revenue Service (IRS) ruling.

In a recent ruling, the IRS agreed with Comptroller auditors and also took issue with other deductions NYRA made over the years.

IRS auditors initially identified a tax liability of $1.6 billion; however, the IRS recently notified NYRA that it anticipates adjusting its claim against NYRA to below $25 million.

NYRA’s franchise to operate the state’s three tracks ends December 31, 2007.

The Governor has recommended that a newly reconstituted NYRA be awarded a new franchise for 30 years to operate the tracks, while another yet to be named entity would run the VLTs.

The final agreement requires legislative approval.

To ensure strong oversight and address problems identified by past Comptroller audits, DiNapoli recommended the Governor and the Legislature include the following recommendations in the enabling legislation:

Confirm the Comptroller’s broad audit authority and stipulate the Comptroller’s right to examine all financial and operational matters associated with racing and gaming activities.

Clearly define all financial terms, including revenues, expenses and all other payment obligation terms to ensure that all racing and gaming operators fully understand and meet their fiscal responsibilities.

Ensure all contracts meet guidelines consistent with applicable state procurement laws.

NYRA disputed the audit’s findings and the auditors’ calculation of the franchise fees.

NYRA’s full response is included in the audit.

http://www.osc.state.ny.us/press/releases/dec07/120707.htm

[Livyjr]

THE NEW YORK DAILY NEWS DAILY POLITICS BLOG:

December 10, 2007

"Um, Governor? About Those 'Rules'..."

A reader with a much better memory than mine wrote in to question Gov. Eliot Spitzer’s recent claim to The Buffalo News Editorial Board that his testimony under oath (which has yet to occur) to the state Commission on Public Integrity must remain secret because the commission’s “rules don’t permit it.”

The reader recalled that former state Comptroller Alan Hevesi’s testimony before the now-defunct state Ethic Commission had been posted on the Web, perhaps even on the commission’s own site.

Actually, the commission only made public excerpts of Hevesi’s testimony in its 2006 report on Chauffeurgate, which touched off the Albany County DA’s probe that led to Hevesi’s guilty plea to a felony charge of drefrauding the government and subsequent resignation.

However, three months ago - about nine months after Hevesi’s departure - The Times obtained from the State Archives and posted all 800+ pages of the full Ethics Commission Chauffeurgate file.

The Ethics Commission no longer exists, merged with the state Lobbying Commission earlier this year to create the Public Integrity Commission, which is dominated, and therefore controlled, by Spitzer appointees.

But it seems there is a precedent for the public release of testimony by a seated statewide elected official to a state investigative body.

Public Integrity Commission spokesman Walter Ayres (who used to handle press for the Ethics Commission) released the following statement last week:

“Although the law does not allow me to comment about ongoing investigations, I can confirm that it has not been the policy of the commission to provide transcripts of depositions or to allow witnesses to record their testimony.”

When pressed, however, Ayres declined to say whether this policy was a strict prohibition.

Spitzer spokesman Errol Cockfield told the TU: “By law, the commission’s investigations are confidential.”

I talked to Ayres today, and he told me the rules regarding the confidentiality of investigations haven’t changed with the merging of the Ethics and Lobbying commissions.

By statute, the commission is required to keep testimony confidential if, by the end of a probe, no violations have been found.

No commission has ever released testimony, techincally speaking.

The State Archives did the releasing.

How did that happen?

After Hevesi pleaded guilty and waived his right to appeal, it was determined that his case had so much historical value that it should not molder in the filing cabinets of the Ethics Commission, but rather be available for public perusal.

One could argue that a similar decision would have to be made after a seated governor testified before the Commission on Public Integrity - if and when he ever does, and if and when this messy case ever gets closed for good.

http://www.nydailynews.com/blogs/dailypoli...hose-rules.html

[Livyjr]

THE NEW YORK DAILY NEWS DAILY POLITICS BLOG:

IF Eliot "STEAMWHISTLE" Spitzer really wanted to get this messy case closed for good ....

Then, citing New York State Criminal Procedure Law section S 190.25(4)(a):

"Nothing contained herein shall prohibit a witness (to a Grand Jury proceeding) from disclosing his own testimony (to a Grand Jury)" ....

"STEAMPIPE" Spitzer should TELL the Ethics Commission that HE intends to make his testimony before the Ethics Commission public ...

And if they say he can't ....

Then by God, he should sue their @#$%$ in State Supreme Court for the right to make his testimony public ...

And Spitzer would win that lawsuit hands down ....

AND THAT WOULD BE THAT ...

This messy case would then be closed for good ....

But let's all get real here, folks ...

Spitzer is not going to do any of that ...

For if he was, this mess would have been over long ago .....

Instead, as Jacob Gershman of the New York Sun noted ...

All the Spitzer dude is doing, instead of being forthright and forthcoming, is ducking and dodging and bobbing and weaving all over the place ...

And making LAME EXCUSES ...

LIKE A GUILTY MAN ....

And the Spitzer dude, instead of being forthcoming and assertive with the Ethics commission here ...

Is feeding us this BULL@#$% EXCUSE that the Ethics Commission won't let Spitzer make his own testimony public ....

And so ....

What a loser this Spitzer is ...

PUTZ!

And so ...

Posted by John Galt on December 10, 2007 4:45 PM

http://www.nydailynews.com/blogs/dailypoli...hose-rules.html

[Livyjr]

"Spitzer's standing with NY voters continues to slide"

Associated Press

Last updated: 4:53 p.m., Monday, December 10, 2007

ALBANY -- Gov. Eliot Spitzer has reached a new low in the eyes of voters, drawing a 51 percent unfavorable rating in a new poll.

He was given a favorable rating by 36 percent of voters polled by the Siena College Research Institute, down from 41 percent last month.

"A majority of voters, 56 percent, are not prepared to re-elect the governor," Siena spokesman Steven Greenberg said.

"Only one in three Democrats is prepared to re-elect him, while 42 percent prefer 'someone else.'"

In New York City, 45 percent view him favorably and 40 percent unfavorably.

Only 26 percent of upstate voters view him favorably and 62 percent gave him an unfavorable rating.

His job performance was rated 27 percent positive versus 70 percent negative.

That's a slide from last month's 33-64 rating.

"The governor has always been clear that his leadership decisions are unaffected by polls."

"The same is true today," said Errol Cockfield, spokesman for the governor, in a written statement.

The poll also found that 82 percent of New Yorkers want the governor and Legislature to cut spending.

Only 13 percent would support increasing taxes.

"The voters' clear message to Albany: do not increase our taxes," Greenberg said.

"They would strongly prefer spending cuts, preferably not in health or education."

"And by a margin of 67 to 28 percent, voters are opposed to legislators giving themselves a pay raise."

The Dec. 3-6 poll of 625 voters has a margin of error of 3.9 percentage points.

[Livyjr]

THE NEW YORK DAILY NEWS DAILY POLITICS BLOG:

In the Associated Press article "Spitzer's standing with NY voters continues to slide", last updated 4:53 p.m., Monday, December 10, 2007, it was stated that only 26 percent of upstate voters view Eliot "STEAM CALLIOPE" Spitzer favorably and 62 percent gave him an unfavorable rating ...

Which makes "STEAMPIPE" Spitzer the most reviled and disrespected Governor in NYS history, I believe ....

And the prime reason for it, according to my own informal polls ...

Is "STEAMVENT" Spitzer's continued BULL@#$% concerning his public testimony about his involvement in TROOPERGATE ...

The promised public testimony that JUST NEVER COMES ...

JUST NEVER HAPPENS ...

DESPITE ALL THE EMPTY PROMISES BY SPITZER TO BE FORTHRIGHT AND FORTHCOMING ...

Instead, all people hear coming from this "STEAMTRAIN" is a RAFT OF @#$% ....

Excuses ....

LAME EXCUSES ...

"OH, HOW I WANT TO!"

"BUT THEY WON'T LET ME!"

"EVEN THOUGH I REALLY DO WANT TO!"

And so ...

Spitzer is in FREEFALL alright when it comes to his reputation for integrity ...

The MAJORITY of upstaters are now convinced by Spitzer himself that Spitzer doesn't have any integrity whatsoever ...

Because if he did ....

He would have acted like it by now ....

Instead of acting like a GUILTY MAN trying to hide something from the authorities ...

So upstate people don't want to have anything more to do with this deceitful Spitzer dude ....

And his recent poll numbers reflect that fact ....

Where only 26 percent of upstate voters view Eliot "STEAMSHOVEL" Spitzer favorably and 62 percent gave him an unfavorable rating ...

And so ...

Posted by John Galt on December 10, 2007 5:27 PM

http://www.nydailynews.com/blogs/dailypoli...hose-rules.html

[Livyjr]

THE NEW YORK POST

"SPITZ PROBE A JOKE - PANELIST RIPS 'DIRTY TRICKS' SECRECY"

December 10, 2007 -- THE state Public Integrity Commission gives the appearance of being "involved in a cover-up" of Gov. Spitzer's role in the Dirty Tricks Scandal because its probe has been slow and secretive, a member of the group has told The Post.

"Many of us are getting frustrated at the glacial pace and the secrecy within the secrecy that has come to define our investigation, not to mention the growing perception that we're involved in a cover-up," said the commission member, who has ties to Spitzer.

"I took this job to serve the state, not to help cover up for the governor or anyone else," added the member, who insisted on anonymity.

The unprecedented comment by one of the 13 unpaid commission members comes after months of confused and ineffective investigative efforts by the Spitzer-controlled panel into the use of the State Police by top gubernatorial aides to gather purportedly damaging information on Senate Majority Leader Joseph Bruno (R-Rensselaer).

It also follows Spitzer's claim to the Buffalo News that his long-expected commission testimony won't be made public because of a supposed prohibition in the panel's "rules."

Legal experts told The Post that while state law bars the commission from disclosing certain investigative information, the law does not bar Spitzer from disclosing his own testimony.

"I don't know of anything that would bar the commission from allowing the governor to record his own comments, which he could then make public," said a well-known expert on state ethics laws.

"At the very least, the governor could agree to step outside and answer questions from the press the way he says he's prepared to answer questions from the commission," the expert said.

Spitzer has publicly claimed he wants to testify in public, but privately, he and his aides are fighting efforts by the commission and the Senate Investigations Committee to obtain scandal-related documents and testimony.

Two top Spitzer aides, Chief of Staff Richard Baum and Darren Dopp, the governor's former communications director, refused to be interviewed about the scandal by Attorney General Andrew Cuomo's investigators.

The Post disclosed in October that commission Chairman John Feerick had created a special "subcommittee" of Spitzer-friendly members to oversee the investigation.

The move led some investigators to conclude that Feerick, a former Fordham Law School dean, was seeking to shut out commission members appointed by Bruno, Republican Assembly Minority Leader James Tedisco and Cuomo, a Democrat who issued a bombshell report on the scandal in July.

fredric.dicker@nypost.com

http://www.nypost.com/seven/12102007/news/...joke_196503.htm

[Livyjr]

THE NEW YORK DAILY NEWS

"State Senate to pressure Sheldon Silver"

Monday, December 10th 2007, 4:00 AM

State lawmakers are headed for an end-of-year showdown over pay raises.

The Republican-led Senate plans this week to pressure Democratic Assembly Speaker Sheldon Silver, whose downstate-dominated members are squeezed the hardest by the lack of a salary hike.

"We're going to increase the heat in his kitchen," crowed one Republican senator, adding, "This will drive his members cuckoo right before Christmas!"

The Senate's plan: to pass a bill when senators return to Albany on Thursday that would provide immediate raises for judges but no one else, breaking the long-held tradition of coupling judicial and legislative pay hikes.

The $79,500 base pay for legislators hasn't changed since 1999.

State judges, who also haven't had a raise since 1999, earn $136,700.

The Senate bill would boost them to $165,200, bringing them in line with their federal counterparts, and include a retroactive salary increase.

The Senate GOP hopes to embarrass Silver and squeeze him between the judges, several of whom have sued over their lack of a raise, and his members, who are unlikely to back a measure that doesn't increase their own bottom line.

Silver Sunday rejected the move as "pure political posturing" by Senate Majority Leader Joseph Bruno, adding, "I don't think he's real on that."

"Joe Bruno's members want a pay raise as much as any other member."

"To save themselves politically, they don't want to vote for it."

Bruno's plan would also potentially drive a wedge between Silver and his fellow Democrat, Gov. Spitzer.

Spitzer unsuccessfully advocated for the decoupling of legislative and judicial raises during the 2007-08 budget battle.

However, he pledged his support for a pay hike for lawmakers while seeking to woo Assembly Democrats at a recent closed-door meeting in Brooklyn.

Silver, who hasn't yet committed to bringing his members back to Albany, said there's a 50-50 chance the Assembly won't return before the end of the year.

Silver also added some fuel to the smoldering fire between himself and Bruno, who has repeatedly referred to the speaker as a "wimp" in public and has so far refused to apologize.

"He's wrong on the facts."

"He can only call me names because he can't debate issues with me," Silver said of Bruno.

"You learn this in law school: When you're wrong on the facts, all you can do is dazzle them with your baloney."

Bruno spokesman John McArdle retorted, "Why should [Bruno] apologize?"

"It's true."

"This is about the speaker doing what he is elected to do, which is to represent the Legislature, and he hasn't done that in the last year."

ebenjamin@nydailynews.com

http://www.nydailynews.com/news/politics/2...don_silver.html

[Livyjr]

NEW YORK MAGAZINE

"Party Hacks Still Wait for Career Day - Spitzer’s distaste for patronage has left Pataki’s people in place."

By Geoffrey Gray Published Dec 10, 2007

As Eliot Spitzer approaches the end of a wildly tumultuous year in office as governor, many loyal Dems are wondering where the cushy jobs are.

The governor has yet to replace many of the rank-and-file workers hired by George Pataki.

“It’s really crazy, the day-to-day people running his administration are Pataki Republicans—it’s no wonder he’s having such a hard time getting anything done,” says one politico who worked for Spitzer when he was AG.

While the idea of doling out patronage doesn’t jibe with Spitzer’s reformer image, there’s a reason why it’s an Albany tradition: By hiring the relatives of party hacks, you ensure the loyalty of the Legislature.

“Many big Dems do think Eliot needs to give Dems patronage jobs."

"Eliot doesn’t believe in giving unqualified people jobs,” one administration source says.

“He simply won’t do it—even if its good for politics.”

But isn’t good politics what you need to get good policy?

One Dem consultant concludes, “If there’s one thing Eliot’s learned in his first year, it’s that he’s not as special as he thought he was."

"Albany changes for nobody.”

http://nymag.com/news/intelligencer/41827/

[Livyjr]

THE NEW YORK SUN

"Tax Tips Spitzer Could Use"

By JACOB GERSHMAN

December 10, 2007

The advice that Governor Spitzer is getting is that he should start hitting singles.

After a year of humiliating strikeouts and bench-clearing brawls, the thinking is that the governor needs to rack up small accomplishments in order to rebuild confidence in his leadership.

The problem is the game's not close.

New York, as a whole, has slipped too far behind other states.

If it's going to stage a rally, Mr. Spitzer will have to produce more than a few slaps to left field, while keeping in mind the difference between a wild swing for the fences — i.e., illegal immigrant licenses — and a good, solid stroke.

An early sign of disappointment with the Spitzer administration was the lack of big ideas in his first budget.

The governor tried to pretend otherwise, touting his "Contract for Excellence," which accompanied a record surge in education spending.

Neither a binding contract nor conditioned on excellence, the program is a costly layer of bureaucracy masquerading as accountability.

The early indication is that Mr. Spitzer will be even more cautious and unimaginative in his second budget, which he will submit to lawmakers in January.

If the governor changes his mind and starts to wonder if a platform of humility will be enough to run on in 2010, here are a few ideas he could try out:

For starters, how about a property tax cap?

As noted by the Citizens Budget Commission, more than a dozen states cap the annual growth of property tax collections.

The Spitzer administration has stuck with the Pataki model for lowering property taxes by putting more money into the School Tax Relief program, which uses state funds to pay for local property tax exemptions.

As the commission noted, the program has failed to lower taxes by encouraging school districts to spend more money more wastefully.

A cap on local school property taxes wouldn't cost the state any money but would encourage efficiency by forcing Albany and local governments to tackle the union contract and pension mandates that are responsible for New York's high-levels of municipal spending.

The most successful version is Massachusetts's Proposition 2 1/2, a 25-year-old statute that limits annual increases in local property tax levies to 2.5% of aggregate property values.

In the first 10 years of its existence, Massachusetts went from having a tax burden that was 22% above the national average to one that was 1% below average.

A cap would meet resistance from the state teachers' union.

(In New York City, the cap would have less of an impact because school budgets don't depend on property taxes.)

The governor could counter the anger by sticking with his pledge to hike state school aid by $7 billion over his term, money that would make it easier for local school districts to swallow a cap.

Another idea, one championed by the most prominent fiscal analyst in Albany, E.J. McMahon, is to abolish the corporate franchise tax in upstate New York, establishing one of the only regions in America free of a state tax on capital formation and profit-making.

Mr. McMahon would phase in the plan during three years and estimates a net revenue loss of $1 billion, which he said could be replaced by scaling back on failed upstate aid efforts, such as the Empire Zone program.

Downstate is already increasingly subsidizing upstate, Mr. McMahon points out.

"The more they sink, the more rope you have to give them," he said.

His idea is to give the area help in a way that will draw more capital investment so that in the long-term, upstate will become more self-sufficient.

Along similar lines, a former top aide to Mayor Bloomberg suggested that Mr. Spitzer get rid of the 4% sales tax in upstate.

It's an idea that would certainly catch Joseph Bruno and the Senate Republicans off guard and neutralize their accusation that the governor has no plan to revive the region.

Lawmakers would complain that the plan is unfair to New York City metropolitan area residents.

Mr. Spitzer, as the aide suggested, could respond by co-opting Governor Cuomo's "family of New York" theme of compassion.

If Mr. Spitzer is to make a big splash in January, it's more likely that he will favor programs, such a universal health care package, that appeal to various left-wing constituencies.

The governor has been more concerned about redistributing state funding than limiting how money is spent.

Part of the thinking behind this approach is that Mr. Spitzer will likely have a more competitive Democratic primary in 2010 than a Republican one.

The catch is that by moving leftward, the governor only strengthens the position of the Senate Republicans, who can portray themselves as a check on Mr. Spitzer's excesses.

The governor will be in an even weaker political position if the Republicans hold on to their majority next year.

Our shell-shocked governor, most likely, is thinking small.

My guess is that he prefers to bunt rather than risk another whiff at the plate.

If that's the case, it will take another governor to pick up the bat and get New York back in the game.

jgershman@nysun.com

http://www.nysun.com/article/67756?page_no=1