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

[Livyjr]

"NY releases employment data amid cuts across state"

By RICHARD RICHTMYER, Associated Press

Last updated: 4:46 p.m., Thursday, November 20, 2008

ROUSES POINT, N.Y. -- New York lost nearly 14,000 private sector jobs in October, but the seasonally adjusted unemployment rate in New York City and across the state dipped slightly to 5.7 percent.

That's a drop from 5.8 percent in September, but up from 4.6 percent in October 2007.

Outside New York City, St. Lawrence County had the highest unemployment rate last month at 6.9 percent.

Nationally, the rate was 6.5 percent in October.

The latest numbers were released by the state Labor Department on Thursday, a day after HSBC Mortgage Corp. said it was cutting 225 jobs at its Buffalo-area headquarters.

Since October 2007, the largest losses have been 17,400 jobs in manufacturing and 16,500 in the financial industry, followed by 11,000 in trade, transportation and utilities, according to state data covering both the public and private sectors.

Jobs in education and health services grew over that time by 30,200 and 11,200 more workers were employed in government.

The total of private sector jobs dropped 14,100 from 7,254,000 to 7,239,900 over the year.

Gov. David Paterson said in late October that jobs lost to turmoil on Wall Street would eventually top 45,000.

Rod Fortran, a labor department analyst, said Thursday there are more cuts to come in the financial sector that aren't reflected in the latest employment numbers.

While job cuts have been concentrated around New York City and western New York, the effects of the state's economic slowdown have been far reaching.

One of the North Country's biggest private employers -- Wyeth Pharmaceuticals -- announced plans this week to lay off 118 of the 725 remaining workers at its plant in Rouses Point.

"It's just a sign of the times," said George Rivers, mayor of the village on the Canadian border, who noted that about 1,200 people worked at the plant two years ago.

"But it's not so bad compared to what's happening around the country."

"They're laying off thousands in the banking industry."

Rouses Point is a small village of 2,500 on the banks of Lake Champlain bordered on the north by Quebec and Vermont to the east.

The Wyeth plant -- a sprawling, tightly guarded industrial complex -- is just a few blocks from the main street, where some business owners are worried about its shrinking work force.

"There's been nobody around," said Binnie Munnik, who stopped Thursday for a coffee at a cafe a few doors down from the antique shop she has run since 1993.

Beefed up border patrol budgets in recent years have brought some new people to the area, but Munnik said she's still having trouble finding a buyer for her lake front house.

"I've had it up for sale for years," she said.

Just last August, North Country business boosters and government officials were celebrating the salvation of the plant, which Wyeth had planned to close but recently sold to Akrimax Manufacturing, a privately owned pharmaceutical company based in New Jersey.

Wyeth is shifting its manufacturing out of the plant, and Akrimax plans to fully take over by the end of next year.

The company said it plans to bring additional business to the plant through contract manufacturing agreements with other drug makers but hasn't provided specific projections.

"It's disappointing, but it's only temporary," Plattsburgh-North Country Chamber of Commerce president Garry Douglas said of the job losses.

Douglas said some of the area's small businesses likely have cut jobs, but so far none of the North Country's major employers aside from Wyeth have done so.

He also pointed to some developments -- including a bus manufacturer's plan to build an assembly plant expected to employ about 300 people in Plattsburgh by 2011 -- as reasons to be optimistic.

Like Douglas, coffee shop owner Kris Duus remains upbeat even as several shops and buildings along Rouses Point's small main strip sit vacant.

Locals and the additional border patrol staff make up most of her shop's business, she said.

"It's a very walkable downtown, and that helps," said Duus, who opened the shop a little over a year ago.

------

On the Web: The state Labor Department, http://www.labor.state.ny.us

[Livyjr]

"Home sales remain at low levels"

November 24, 2008 at 10:45 am by Chris Churchill, Business writer, Albany, New York Times Union

Amid fears of a deepening national real estate recession, the Capital Region’s residential real estate market remained slow in October, with the overall number of single-family home sales down 16 percent from a year ago in the 11-county area covered by the Greater Capital Association of Realtors Inc.

In October 2007, there were 909 closed residential sales.

This year, there were 760, according to numbers released this morning by the association.

Median sale prices in the region were down a bit, compared to the prior year, with the average October price falling from $190,000 in 2007 to $189,700 this year.

In Albany County in October, closed sales fell 17 percent while the median price increased by 1 percent, to $196,800.

Schenectady County saw big declines in October, with closed sales falling 20 percent and the median sale price declining 4 percent to $168,578, compared to the prior year.

In Saratoga County, closed sales sank by 10 percent while the median price declined 1 percent to $252,200.

And in Rensselaer County, closed sales fell 4 percent, year over year, while the median price dipped 1 percent to $178,000.

The numbers include only single-family home sales made by real estate agents who are members of GCAR.

They do not include condominiums and multifamily housing, or “for sale by owner” homes and person-to-person transactions.

As poor as the Capital Region’s numbers are, they compare favorably with the national picture.

The National Association of Realtors released dismal statistics today, reporting that the October median sale price fell by the most on record, leading to fears that the nation is entering a deep housing recession.

The national median price fell a staggering 11.3 percent to $183,000, the largest year-over-year decline since the NAR began keeping such records in 1968.

Purchases of existing homes nationally fell 3.1 percent.

In a press release that accompanied the statistics, GCAR stressed the difference between the local and national markets, and repeated its belief that the Capital Region housing market is weathering the economic storm better than other areas.

“But it’s the other parts of the country that get the media’s attention, when it should be our market and others like it that are put in the national spotlight,” said James Ader, chief executive of the association.

“Bad news is often a self-fulfilling prophecy."

"Let’s broadcast the good news as well.”

[Livyjr]

WE ARE STUCK WITH A BUNCH OF SPOILED LITTLE CHILDREN IN POWER IN GOVERNMENT UP HERE ...

"County budget spurs dispute - Rensselaer lawmakers accuse each other of playing politics"

By KENNETH C. CROWE II, Staff writer, Albany, New York Times Union

First published in print: Monday, November 24, 2008

TROY — Rensselaer County's proposed 2009 budget continues to be a political battleground for Republican and Democratic county legislators.

While the Republican majority is backing fellow Republican County Executive Kathleen Jimino's tentative $287.7 million budget, the Democratic minority finds fault with the way it was put together and its take on tax rates.

"They keep saying there's no tax increase when people are paying more,'' said Legislator Flora Fasoldt, D-Sand Lake.

"Under the county executive's proposed budget, Troy taxpayers will suffer the highest tax increase in the county, 13%, all the while being assured that there's no increase in the tax rate,'' Legislator Peter Grimm, D-Troy, said.

Jimino's proposed budget keeps the county tax rate at $5.23 per $1,000 of true assessed value.

The tax rate in each community varies based on differences in equalization rates and assessments.

"It is pretty clear the Democrats are playing politics with the tax rate and trying to confuse residents because of the problems their party is having dealing with state fiscal issues,'' legislator Richard Salisbury, R-Schaghticoke, vice chairman for finance.

"The Democrats themselves have acknowledged the county property tax rate is not increasing, and they know equalization and assessment rates are set by the state,'' Salisbury said.

The Republicans and Democrats have each issued reports on the budget.

A public budget hearing will be held at 5:30 tonight in the County Legislature chambers.

The Republican report concurred with Jimino's budget and stressed the expense of dealing with unfunded state mandates.

Fasoldt said the Democrats came up with numerous recommendations to trim the budget.

"We did a really thorough look at the budget,'' Fasoldt said.

The Democratic report recommended imposing a 0.9 percent spending cut on all departments; rescinding pay raises for elected officials adopted in 2006; forming a committee to reduce the size of the legislature; selling county-owned property; using the surplus to end year-end borrowing; eliminating new, non-mandated positions; and other changes.

"The budget report and recommendations submitted by the minority legislators show either a complete failure on their part to understand budgeting or an attempt to play politics with the sound fiscal footing we currently stand on,'' said Stacey Farrar, the county budget director.

Fasoldt said that everything that the minority does is being unnecessarily politicized by the Republicans.

Kenneth C. Crowe II can be reached at 454-5084 or by e-mail at kcrowe@timesunion.com.

[Livyjr]

"DiNapoli predicts heavy job losses - Two-year forecast finds Capital Region could get off relatively easy as state loses 225,000 jobs"

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

First published in print: Tuesday, November 25, 2008

Wall Street's collapse could cost the Empire State an estimated 225,000 jobs during the next two years, Comptroller Thomas DiNapoli said on Monday.

That's even gloomier than Gov. David Paterson's prediction last month that 160,000 jobs would disappear during the next two years — although Matt Anderson, a spokesman for the governor's budget office, said their numbers will be updated next month when they propose the 2009-2010 budget.

Due to the global credit crisis, a number of investment banking firms have moved to become regulated banks, which means that the era of mega-bonuses and stratospheric salaries — and the state tax receipts that go with them — is drawing to a close.

Historically, Wall Street has generated 20 percent of state revenues.

Much of the job loss is focused downstate, with New York City expected to lose 175,000 of the 225,000 jobs, DiNapoli said during a conference call.

"The farther away you get from downstate, the less of an impact,'' he said.

So far, the Capital Region has dodged the worst of the economic crisis hitting New York City and other parts of the nation.

That's thanks to the region's role as a center for government, higher education and health care, noted Leif Engstrom, a program manager at the Capital District Regional Planning Commission.

"We have a very stable economy."

"We don't experience the highs and we don't experience the lows,'' said Engstrom.

If tax revenues continue to sag, however, the region could suffer from government spending cutbacks.

The securities industry has already lost more than 16,000 jobs in New York City and could shed a total of 38,000 by October 2009, DiNapoli said.

That translates into the loss of $6.5 billion in tax revenue over the next two years.

"We know that Wall Street is going to look different from before we went into this," said DiNapoli.

While a shrunken Wall Street may mean lower tax receipts in future years, DiNapoli said it also may ease the boom-and-bust cycles that state coffers have been subject to.

"The stability may not be such a bad thing," he said.

DiNapoli's findings also exceeded New York City Comptroller William Thompson Jr.'s earlier prediction that the city would lose 165,000 jobs in the next two years.

"We are confirming what everybody knows,'' DiNapoli said.

The comptroller joined the chorus of Capitol observers and pundits who decried lawmakers' failure last Tuesday to act on Paterson's call to cut $2 billion from this year's budget.

"It certainly, from my point of view, was a lost opportunity," said DiNapoli, who like Paterson and others said New York state and city may need federal help to get out of the current budget mess.

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

[Livyjr]

"Files of North Greenbush officials ordered opened"

By BOB GARDINIER, Staff writer, Albany, New York Times Union

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

TROY -- Files of an investigation of possible criminal wrongdoing of a former North Greenbush town attorney and a planning board member were ordered open for review this morning in a federal lawsuit brought by them against the town and others.

In June 2006, former town attorney Linda Mandel-Clemente and planning board member Jim Reid faced misdemeanor charges of attempted petit larceny for removing 17 boxes of litigation files from offices of the town attorney.

On Dec. 31, 2005, Town Clerk Kathryn Connolly said she was in Town Hall setting up for a swearing-in ceremony after the election that toppled Republican Supervisor Paul Tazbir.

Connolly said she saw Mandel-Clemente, who was a planning board member and a former town attorney during the Tazbir administration, and Reid, who also served on the planning board at the same time, removing boxes from Town Hall, leaving incoming Supervisor Mark Evers with no records of legal matters involving the town during the previous administration.

Connolly called town police, who followed the group to Mandel-Clemente's office and seized the boxes as well as other town documents she already had at her private office.

The case against Mandel-Clemente and Reid was later adjourned in contemplation of dismissal and the investigative records sealed.

The pair then filed a federal lawsuit against the town and others claiming, among other things, that they did nothing wrong and the criminal charges were drummed up to defame them.

A lawyer for the respondents named in that on-going lawsuit, which include town and other officials, asked County Judge Robert Jacon Tuesday to unseal investigative records and grand jury minutes pertaining to the case.

A grand jury heard evidence but the pair were never formally indicted.

"Ms. Clemente is alleging that false information provided by my clients led to the charges against her and violated her civil rights," Claudia Ryan, attorney for the respondents, told Jacon.

"'We need access to the records to properly defend our clients."

No one representing the plaintiffs appeared in court to argue against the motion.

Jacon then granted access to investigative records but denied access to the grand jury minutes, which are deemed secret.

"You have not made the burden of proof to open grand jury minutes," Jacon told Ryan.

"But if, during your discovery, you come upon something that would change my mind, you can refile the motion."

[Livyjr]

"Bruno probe sees a flurry - Federal prosecutors said to have sent out several subpoenas recently"

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

First published in print: Saturday, November 29, 2008

ALBANY - Federal investigators pursuing a criminal probe of former Senate Majority Leader Joseph Bruno have called people familiar with details of his activities to testify before a grand jury here in recent weeks.

The actions of the United States Attorney for the Northern District's office suggested to at least one of the parties subpoenaed that prosecutors in the roughly three-year-old case are authenticating documents produced by witnesses for the FBI.

Several subpoenas were issued in recent weeks and shortly before the November elections, according to recipients and people close to individuals receiving the orders, which required secret testimony at the U.S. Courthouse in Albany.

Jack Werk, a thoroughbred horse expert from California, said Friday he flew here in September to testify.

He said his request to appear before the grand jury came more than a year after he produced documents and other information for the federal probe.

He declined to discuss his testimony.

He has told the Times Union previously that he prepared an analysis for a proposed thoroughbred horse transaction involving Bruno and former New York Racing Association trustee Earle Mack, an avid horseman whose wealth grew from downstate real estate holdings.

Mack sold Bruno two breeding mares for Bruno's breeding business in Brunswick.

Offspring later sold well above the sums Bruno paid for the mares.

Mack purchased one of the yearlings.

Also, lobbyists and former public officials have been called to testify, according to people close to those witnesses.

Paul Holstein, a spokesman for the FBI, said his office would have no comment.

Bruno's lawyer, William Dreyer, did not respond to a message left at his office.

Bruno has said he has done nothing wrong.

A person familiar with the probe said it appears the federal government is building toward a climax in the case.

Mack had secured Werk to write a letter confirming that the sale of the mares to Bruno was fair to the buyer.

A previous subpoena to Werk showed the FBI's broad interest in horse deals involving Bruno and his friends dating to Jan. 1, 2001.

Documentation sought from Werk involved 15 related people, business entities or horses, including Bruno and his breeding farm.

Those named include Bruno associate Jared Abbruzzese and his partner Wayne Barr, both of whom are Capital Region businessmen and thoroughbred owners.

Barr was a Bruno appointee on the New York Racing Association board until last year.

He had replaced Mack as an NYRA trustee.

Bruno had also appointed Mack.

The subpoena also sought information about: Bazaguma, a partnership controlled by Abbruzzese and named after his four children; Weatherwatch Farm and Weatherwatch Equine Training Center, which are owned by Abbruzzese or his wife, Sherrie; Jerry Bilinski, Bruno's close friend and a veterinarian from Columbia County; Bilinski's Equine Medical Center in North Chatham; Barr's Willow Rock Stables; Mack and Mack's Rising Son Farm; Ladies Night In and You're The Top, the two mares Bruno got from Mack.

The federal investigation involves many aspects of Bruno's public and private life.

The former Republican leader, now leading a consulting company in Latham and registered as a lobbyist, had operated his own consulting business, served a Connecticut investment house and bred horses during his tenure in the state Senate.

Besides the horse transactions, federal prosecutors have been interested in union funds from New York labor groups invested with Wright Investors Service of Milford, Conn., a firm that employed the senator for more than a decade.

The probe has also looked at land deals involving Bruno and economic development grants he arranged.

In July, Bruno stepped down from the Senate after 32 years in office.

James M. Odato can be reached at jodato@timesunion.com or 454 5083.

[Livyjr]

"Future uncertain for MTI MicroFuel Cells - Company says it can fund operations only through January"

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

First published in print: Saturday, November 29, 2008

COLONIE — The future of MTI MicroFuel Cells Inc. may be decided in the next few months.

The Colonie-based company, a subsidiary of Mechanical Technology Inc., recently told shareholders in a regulatory filing that it has "adequate resources" to fund its operations only through the end of January.

MTI Micro is developing a line of small fuel cells, named Mobion, for handheld electronic devices such as cell phones and digital cameras.

The company, which has received funding from Samsung, is hoping to commercialize Mobion by next year.

Parent company MTI has had trouble raising money to support that commercial launch.

And the company's stock holdings in another local fuel cell company, Plug Power Inc., have dropped in value with the market's sharp decline.

MTI uses the sale of Plug shares to fund its operations.

Although MTI Micro has not started producing revenue yet, another division called MTI Instruments sells high-end test and measurement devices and brings the company revenue.

MTI noted in a Nov. 14 Securities and Exchange Commission filing that it had $3.44 million in cash and marketable securities as of Sept. 30, enough to get the company through to the end of 2009 as long as it stops advancing funds to the fuel cell division.

In the meantime, MTI Micro will be looking to either further reduce its expenses or get government or stock market funding. Under the current economic climate, both sources could prove difficult.

However, Walter Robb, an MTI board member and significant investor in the company who also recently provided the company with additional funding, said MTI Micro will be fine.

He said that the SEC filing was extremely conservative.

"It isn't quite that bad," he said Monday.

He rejected any notion that the company was in jeopardy of going out of business early next year.

"No, absolutely not," he said.

"We've cut the burn rate."

MTI Chief Executive Officer Peng Lim could not be reached for comment.

However on Tuesday, MTI Micro issued a press release touting Mobion, saying it was able to achieve 5,500 hours of continuous operation in lab testing and that the company had filed its 110th patent for Mobion.

MTI, which has offices and research and development for its fuel cell business on New Karner Road in Colonie, has been cutting jobs in an effort to reduce expenses.

It eliminated 29 jobs in September after previously employing more than 100 between its Colonie location and the MTI Instruments office and assembly lines in Albany.

Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.

[Livyjr]

"Probe tied to Bruno nears an end - Charges possible; ex-state Senate majority leader has said he's confident no laws were violated"

By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union

First published in print: Sunday, December 7, 2008

ALBANY – Federal criminal charges are being contemplated in connection with an exhaustive FBI investigation surrounding the business dealings of former Senate Majority Leader Joseph L. Bruno.

It's not known whether Bruno, 79, of Brunswick, will, in the end, be charged in connection with the federal grand jury probe.

However, in interviews over the last two weeks, three people familiar with the investigation said federal prosecutors are wrapping up their case and that charges may be filed.

If no charges are handed up, Bruno could receive a letter from the Justice Department clearing his name.

Bruno has never been publicly identified as a target of the investigation.

Bruno and his attorney, William Dreyer of Albany, a former federal prosecutor with experience in white-collar crime defense, did not respond to requests for comment made through Dreyer's office.

Officials for the FBI and the U.S. Attorney's office both declined to comment.

Copies of some of the subpoenas, and interviews with witnesses who have testified before the grand jury, show the criminal investigation has been broad.

The investigation has drilled deeply into Bruno's real-estate dealings, investments, political decision-making, his ownership and breeding of thoroughbred horses, his ties to labor unions, and his work as a business consultant for an unknown number of private clients, including a Connecticut investment firm, according to interviews with people close to the case and copies of subpoenas obtained by the Times Union.

Bruno abruptly resigned from that firm, Wright Investors Service of Milford, Conn., last year.

He has declined to disclose how much he was paid as their consultant over an approximately 10-year period.

Still, the FBI has continued to look closely at Bruno's role in helping Wright secure contracts for investments from New York labor union pension and benefit funds.

In September, several New York labor union officials were summoned before the federal grand jury in Albany and peppered with questions about their interaction with Bruno as it related to Wright Investors.

Their appearances were part of a flurry of grand jury testimony before the federal panel over the past four months, including as recently as Friday.

''They wanted to know did Bruno recommend them (Wright) and did he disclose that he had an interest,'' an attorney for some of the labor officials, who testified before the panel in September, said.

''He didn't disclose his interest, but he didn't really push."

"He put in a word for them the same way you might recommend someone try a restaurant.''

The investigation began three years ago, when FBI agents from a white-collar crime unit in Albany began examining a series of private jet flights provided to Bruno by people with whom he did business both politically and privately, a source close to the case said.

The chartered jet flights, in some cases worth thousands of dollars per hour, ferried Bruno to private vacations in South Florida, political fund-raisers, government functions and at least once to Kentucky horse country.

The FBI's interest in the flights was triggered, in part, by a related inquiry by the state's now-defunct lobbying commission, according to a source familiar with the investigation.

The FBI's examination quickly expanded and agents began sifting through bank records related to a private consulting firm Bruno ran from his Brunswick home.

At least one of Bruno's consulting customers included Loudonville resident Jared Abbruzzese, a wealthy businessman and horse racing enthusiast who also was behind a consortium that had vied to manage three of New York's storied but financially troubled horse racing tracks, including Saratoga.

Abbruzzese, a close friend of Bruno's, bankrolled some of the jet flights, and his name also was listed in federal grand jury subpoenas that have been sent out over the past two years in the probe.

Other horse racing enthusiasts and associates of Bruno's were listed in the subpoenas, which sought business records dating to January 2001.

The former senator, now CEO for a Latham-based technology firm, CMA Consulting Services, has declined to disclose his income or clients of his home-based private business, Capital Business Consultants.

Bruno also has declined to say whether any of his private clients had an interest in state government contracts or funding.

The impending conclusion of the 3-year-old investigation has stoked some speculation in federal law enforcement circles that the timing may be tied to next month's change of administration in Washington, D.C., as the Bush era ends and President-elect Barack Obama revamps the Justice Department's leadership.

Glenn T. Suddaby was the U.S. Attorney in New York's Northern District for most of the investigation.

Suddaby recently was appointed a federal judge and his Justice Department post was filled by acting U.S. Attorney Andrew T. Baxter.

A source briefed on the investigation previously told the Times Union the FBI was building a case around the ''honest services'' provision of federal statutes, a one-sentence amendment Congress inserted into federal law 20 years ago to close a loophole in its laws defining mail fraud and wire fraud.

The broadly written law prohibits anyone from depriving the public of an inherent ''right to honest services.''

Five months ago, Bruno resigned from the Senate seat he held since 1976.

To many, he left a legacy as an iconic Capital Region politician who rose from an impoverished childhood to become one of the three most powerful elected officials in state government.

Yet over the past two years Bruno, a Korean War veteran who gained a reputation in the Senate as a hard-nosed fighter, has been dogged by the FBI probe.

His former political aides were defensive at times when asked about the investigation, including Bruno's use of private jets.

Bruno has repeatedly said he has done nothing wrong.

Two years ago, Bruno publicly acknowledged the FBI probe in a hastily called news conference at the Capitol after reporters began asking questions about it.

He said he was not a target, that it involved his outside business dealings and that he was cooperating fully.

Then, before leaving public office five months ago, he again said he was not concerned by the grand jury investigation and that he's done nothing wrong.

''There is nothing there, and I am told by my lawyers, who I met with yesterday, there is absolutely nothing that we have done wrong,'' Bruno said in July.

''But would it be nice if people would just go on and let me live my life?"

"Yes, that would be very, very nice.''

Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.

[Livyjr]

"AMD stake in Foundry Co. shrinks"

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

Last updated: 11:11 a.m., Monday, December 8, 2008

Advanced Micro Devices Inc. said this morning it now will have a smaller stake in the new joint venture being created to operate its chip-making factories.

Under the amendments, it will own 34.2 percent of the joint venture, known as The Foundry Co., while Advanced Technology Investment Co. of Abu Dhabi will own 65.8 percent.

Previously, AMD was to own 44.4 percent of the company, under a deal reached in early October.

The change in ownership share results from a decline in the value of the assets that AMD is contributing to the venture.

AMD is contributing its factories in Dresden, Germany, as well as its planned chip fab in Malta, Saratoga County.

ATIC will still invest $2.1 billion for its stake in the venture, $1.4 billion of that going to the venture and the remaining $700 million to AMD.

AMD and ATIC will continue to have equal voting rights in the spinoff.

[Livyjr]

"NY gov seeks redistribution of Medicaid spending"

By VALERIE BAUMAN, Associated Press

Last updated: 5:05 p.m., Monday, December 8, 2008

ALBANY -- New York state health officials say Gov. David Paterson's budget plan for next year will include moving more funding and patients to less expensive outpatient care instead of long-term hospital stays.

New York Health Commissioner Dr. Richard Daines said the proposal will help prevent serious illness by promoting preventive care and discouraging unnecessary, expensive hospitalizations and emergency room visits.

The changes would also expand access to care for New Yorkers, encouraging more clinics to remain open longer and on weekends to serve the working poor who can't afford to take time off work, he said.

Paterson's proposal would also cut Medicaid spending to hospitals, nursing homes and pharmacies.

New York spends $2,283 per patient on Medicaid -- more than any other state in the country and more than twice the national average of $1,026.

But it wouldn't cut eligibility or coverage.

It would change the Medicaid payment system to reimburse physicians and hospitals based on the care a patient needed and the severity of the problem.

Some hospitals oppose the timing of the changes, saying they can't afford additional cuts, or shifts in reimbursement during the current fiscal crisis.

"You don't go out and fix the roof in the middle of a hurricane," said William Van Slyke, a spokesman for the Healthcare Association of New York State.

But health officials said the changes are more urgent now than ever.

"A real reform works in a time of crisis," Daines said.

"If you call it reform but it only works when you've got a lot more money flowing into the system, it's really not reform -- it's spending more money."

New York started in this direction in 2007 under former Gov. Eliot Spitzer, redirecting about $154 million in inpatient care spending to primary care reimbursement.

The exact numbers for the next fiscal year's redirected funds are still being negotiated by the state Division of Budget.

The governor plans to allocate nearly $100 million to help hospitals provide more ambulatory treatment.

Daines said New York spends too much on inpatient care and too little on outpatient and preventive care.

It's forced some outpatient clinics to close because it's more profitable to deal with long-term care patients.

The Interfaith Medical Center in Brooklyn closed five outpatient clinics in 2004 for various reasons, including the reimbursement structure of Medicaid.

"The cost of running the clinics far outweighed the reimbursement for the outpatient services," said Ebone McIntosh, vice president of hospital administration.

Advocates argue the disincentives resulted in unnecessary illnesses because things that could have been prevented -- like diabetes -- are not addressed early on.

"If you want to get people into the system earlier before they need intensive inpatient care, they have to shift where the money is," said Arthur Levin, executive director of the Center for Medical Consumers.

New York officials are still seeking help from the federal government, but health officials say that doesn't preclude the need for tough decisions.

------

On the Net: http://www.health.state.ny.us/health--care/medicaid/

[Livyjr]

"Rensselaer County budget passed - Legislature spars over $287.7M plan, rising costs; tax rate the same"

By KENNETH C. CROWE II, Staff writer, Albany, New York Times Union

First published in print: Tuesday, December 2, 2008

TROY — In a 12-6 party line vote Monday night, the Rensselaer County Legislature approved a $287.7 million county budget for 2009.

The Republican majority and Democratic minority continued sparring over the budget originally presented by County Executive Kathleen Jimino in October until they voted.

"I don't envy the minority for the task of attempting to punch holes in it."

"This is a budget that increases spending less than 1 percent,'' Legislature Chairman Neil Kelleher, R-Troy, said.

The approved budget maintains the county tax rate at $5.23 per $1,000 of true assessed value.

A home assessed at $100,000 will have a county tax bill of $523.

The Democrats took issue with this since the budget was introduced.

Minority Leader Virginia O'Brien, D-East Greenbush, said the tax levy, which goes to $54.6 million in 2009 from $51.7 million, is a better indicator of the monetary impact on county taxpayers.

"There are a lot of signs we're in a weakening economy,'' O'Brien said.

"What we need to show is fiscal discipline."

"I don't think we're doing that.''

The Democrats introduced a resolution to trim the tax levy by 1.5 percent, or $657,313, by cutting the county Legislature's chamber repair fund by $650,000 and eliminating $7,313 in raises for three of Jimino's staff.

This was defeated in the Rules Committee.

Jimino issued a statement after the vote saying, "I commend the Legislators who supported this budget that calls for no increase (in the tax rate) but relies on ... efforts to attract families and business that grow the county's tax base and offset the ever increasing cost burden of state and federal mandates.''

[Livyjr]

"Paterson asks Cuomo to look into judicial nominations - Lack of diversity cited by governor in list for new chief judge"

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

Last updated: 12:51 p.m., Wednesday, December 3, 2008

Gov. David Paterson has asked Attorney General Andrew Cuomo to examine whether or not he's legally obligated to select the next chief judge of the New York Court of Appeals from a list that he finds insufficiently diverse.

Paterson has expressed his displeasure that the list, compiled by the Commission on Judicial Nomination, includes no women and only one member of a minority.

The current chief judge, Judith Kaye, will retire at the end of the month.

The nomination process for state Court of Appeals chief judge is starting to morph into a political battle.

On Monday, the governor's aides said they were exploring options for coping with the list, such as requesting more names from the nominating committee, which is bipartisan but headed by former Pataki confidant John O'Mara.

At the same time, state Senate Democrats — who are about to take control of the chamber next month and who have been at a retreat in Saratoga Springs to lay out political and fund-raising strategies for next year — are starting to complain about the nominations as well.

"I am profoundly distressed by the list of candidates recommended by the Committee on Judicial Nomination," said Sen. Ruth Hassell-Thompson, ranking Democrat on the Senate Judiciary Committee, in a statement.

"Without impeaching the qualifications of those on the list, I find it incomprehensible that not a single woman, nor a single Latino candidate appears on the list."

The nomination controversy has ramifications for the lingering question of how a handful of rebellious senators will vote to elect the chamber's leadership.

Those senators — Pedro Espada, Ruben Diaz Sr. and Carl Kruger — have made the lack of Latinos in leadership positions throughout the state a major component of their unwillingness to express support for current Senate Minority Leader Malcolm Smith.

[Livyjr]

"AMD stake in Foundry Co. shrinks"

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

Last updated: 11:11 a.m., Monday, December 8, 2008

Advanced Micro Devices Inc. said this morning it now will have a smaller stake in the new joint venture being created to operate its chip-making factories.

Under the amendments, it will own 34.2 percent of the joint venture, known as The Foundry Co., while Advanced Technology Investment Co. of Abu Dhabi will own 65.8 percent.

"Plan for AMD plant clears hurdle - Approval to transfer state incentives gets OK from state board"

By ERIC ANDERSON, Deputy Business Editor, Albany, New York Times Union

First published in print: Tuesday, December 2, 2008

The plan to build a $4.6 billion semiconductor fabrication plant in Saratoga County cleared another hurdle Monday when the board of the Empire State Development Corp. unanimously approved the transfer of $1.2 billion in state incentives from Advanced Micro Devices Inc. to a joint partnership between AMD and the Emirate of Abu Dhabi.

AMD is spinning off its manufacturing operations to the new entity, which has been temporarily dubbed The Foundry Co.

The package of incentives was first granted in 2006.

The plant is planned for Luther Forest Technology Campus in Malta.

The project will be the focus of a public hearing Dec. 10 at 1 p.m. at the Technology Campus.

After that, the state Public Authorities Control Board also must approve the transfer.

A spokeswoman for the state comptroller's office could not say Monday whether the control board might consider the transfer at its next meeting, scheduled for Dec. 17.

The package of incentives includes $650 million in cash.

Abu Dhabi is providing $7.2 billion to the joint venture, and plans for the factory have begun moving ahead.

The Foundry Co. also will operate existing AMD chip factories in Dresden, Germany.

AMD has struggled to make money, losing $5.6 billion over the past two years, according to an Associated Press report.

Last month, it said it would cut 500 jobs, or 3 percent of its global work force.

AMD was slated to open an office by Monday at the Saratoga Technology & Energy Park in Malta that would occupy 9,000 square feet and initially employ a dozen people.

The park is adjacent to Luther Forest.

Efforts to reach AMD for comment on Monday were not successful.

[Livyjr]

"Flood of unemployment claims jams state call centers - State adding staff to deal with deluge of jobless claims"

By PAUL GRONDAHL, Staff writer, Albany, New York Times Union

Last updated: 3:09 p.m., Tuesday, December 9, 2008

ALBANY — An endless busy signal is often the final indignity for the newly unemployed.

Laid-off New Yorkers who have faced days and even weeks of frustration trying unsuccessfully to reach a claims representative on the phone to discuss their unemployment claim may find some relief soon.

State labor officials, swamped by an unprecedented deluge of calls in November, are scrambling to alleviate long delays by doubling the number of claims reps at its two call centers.

They're also going to extend hours.

"It's no secret the surge of calls has led to long, frustrating wait times," said Leo Rosales, a spokesman at the state Department of Labor.

"We've received complaints and we're responding to them," Rosales said.

"This is our top priority."

The state labor department currently employs 156 claims reps at its call centers in Troy and Endicott, Broome County.

They received 826,000 calls about unemployment insurance claims last month, compared to 322,000 in November, 2007.

The department plans to hire 150 more claims reps by the end of this month and four weeks of training has been cut to two to speed up the process.

Each claims reps handles 40-50 calls per day and spends on average of eight minutes with each caller.

"It's a very tough job because the callers are frustrated and distraught over being unemployed with the holidays coming up," Rosales said.

In an attempt to help ease long delays, the call centers' current weekday hours from 8 a.m. to 5 p.m. will be extended, by adding hours in the evening and perhaps by opening on Saturdays.

The amount of additional hours will depend on the department's ability to re-allocate scarce federal funding from other areas.

This recent spike in claims hadn't been seen in the state since just after the 9/11 terrorist attacks.

Since 2001, U.S. Dept. of Labor funding has been cut steadily and New York has responded by trimming 30 percent of its claims reps.

Nationally, 533,000 jobs were lost last month, the most in three decades, and the national unemployment rate rose to a 15-year high of 6.7 percent.

New York's unemployment rate was 5.7 percent in October, compared to 4.6 percent in October, 2007.

Forecasts are for the state's unemployment rate to climb above 6 percent by the end of this year and possibly much higher in 2009.

Congress approved a seven-week extension of emergency unemployment benefits, starting Nov. 30.

It's not necessary to file a new claim to collect that.

Athough it has 30 regional offices, the state labor department has done away with having people wait in lines to file unemployment insurance claims.

It now directs everyone to its Web site to file a claim online.

If a person needs help or has an unanswered question, he or she is directed to the toll-free call center.

That's where the long delays have come.

Paul Grondahl can be reached at 454-5623 or by e-mail at pgrondahl@timesunion.com.

[Livyjr]

"MapInfo cutting jobs"

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

Last updated: 2:16 p.m., Wednesday, December 10, 2008

Pitney Bowes MapInfo, based in Rensselaer Technology Park in North Greenbush, is cutting 128 jobs worldwide, including some in the Capital Region.

The company said today employees were notified of the cuts Monday.

Some were immediate, while other positions will be phased out over coming weeks, spokesman Matt Broder said.

About 10 percent of the job cuts came in North Greenbush.

The cuts are permanent.

Broder blamed the economic slump for the move.

"There is a bit of a business pulllback going on," he said.

"The business climate is obviously very challenging for a whole range" of businesses.

Pitney Bowes MapInfo produces what it calls location intelligence software that might be used, for example, to determine an optimal location for supermarket or retail store.

The reductions represent about 8 percent of Pitney Bowes MapInfo's 1,600 employees.

About 300 are local, as part of an overall Pitney Bowes work force of 450 in the Capital Region.

[Livyjr]

"Indictment: Former justice Spargo solicited $10,000"

By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union

First published in print: Thursday, December 11, 2008

ALBANY — A former state Supreme Court justice from Albany County was indicted Wednesday by a federal grand jury on attempted extortion and bribery charges in connection with a scandal that led to his removal from the bench two years ago.

The felony indictment alleges that Thomas J. Spargo, 65, of East Berne, pressured an Ulster County attorney who had cases before him to give Spargo $10,000.

The money, solicited in 2003, was intended to help defray Spargo's legal bills in connection with a state judicial panel's years-long effort to have him removed from the bench, records show.

"The indictment further charges that Spargo solicited the money by causing the attorney to fear that Spargo would use his official acts and influence to harm the attorney if he was not paid and, conversely, to help the attorney if he was paid," states an FBI release announcing the indictment.

The investigation of Spargo was first publicly disclosed by the Times Union in Wednesday's editions.

The case is being handled by the Justice Department's Public Integrity Section in Washington, D.C., and the FBI's Albany division.

"This case should demonstrate that the FBI will pursue all allegations of judicial corruption vigorously, as public corruption violations are among the most serious of all criminal conduct and can tear at the fabric of a democratic society," said John F. Pikus, special agent in charge of the Albany division, in a prepared statement.

It's unclear why the case is being prosecuted by the Public Integrity Section of the U.S. Department of Justice rather than by federal prosecutors with New York's Northern District.

E. Stewart Jones, Spargo's attorney, could not be reached for comment.

Late Tuesday, Jones had declined to comment on the investigation.

Spargo is scheduled to appear in U.S. District Court in Albany next week on the indictment.

In May 2006, Spargo, an attorney in private practice, was removed from the bench following an approximately three-year investigation by the state Commission on Judicial Conduct.

The Court of Appeals later affirmed the commission's determination that Spargo be removed.

The commission's probe centered on Spargo's alleged shakedown of at least one attorney; by the fall of 2003, Spargo's legal bills to fight a removal action against him had mounted to more than $140,000, records show.

Spargo, an expert in state election law, won an election for Berne town justice in the late 1999 and used the victory to buoy his successful bid for state Supreme Court in 2001.

His victory in that election was buttressed by a cross-endorsement from the Republican and Democratic parties, which secured his name on both lines in the seven counties of the Third Judicial District.

But Spargo's tenure on the bench almost immediately became clouded as the state judicial panel began examining a series of misconduct allegations.

The panel determined Spargo should be removed for doling out coupons for gas and coffee and buying drinks for voters during his 1999 campaign.

The panel determined this was an effort to "buy votes."

Another charge sustained by the commission is that Spargo, while sitting as a town court justice, had presided in cases involving the Albany County District Attorney's Office without publicly disclosing that then-District Attorney Paul Clyne had been his client in an election law case, and still owed him $10,000.

Still, "The commission's emphasis in removing Judge Spargo was on the money transactions, the attempt to get the lawyers to give him money," said Robert H. Tembeckjian, administrator and counsel for the Commission on Judical Conduct.

The two-page indictment handed up Wednesday does not identify the attorney Spargo is accused of attempting to extort a bribe.

But the judicial panel's files indicate Spargo explicitly pressured an attorney named Bruce Blatchly.

"While they were alone in chambers, respondent told Mr. Blatchly that the legal expenses associated with his litigation against the commission were rising, that he was going to be raising funds, and that he was looking for $30,000 from attorneys in Ulster County," the commission's 2006 report states.

"(Spargo) further told Mr. Blatchly that rather than solicit a number of lawyers for small contributions, he had decided to go to three attorneys who were often in court, Mr. Blatchly, Mr. (Alfred) Mainetti and Maureen Keegan, and that he would be asking for $10,000 from each of them," the report continued.

Spargo, a former counsel to the state Republican Party, came under scrutiny in the mid-1980s when as an attorney for the Pyramid Company development firm he allegedly funneled more than $750,000 into a Poughkeepsie Town Board race for candidates who were supportive of a shopping mall project.

Spargo invoked his Fifth Amendment right against self-incrimination during testimony before a state panel in that matter, and was never accused of wrongdoing.

Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.

[Livyjr]

"Deal for Senate control is in tatters - Malcolm Smith suspends negotiations with 'Gang of Three'"

Capitol bureau, Albany, New York Times Union

Last updated: 3:40 p.m., Wednesday, December 10, 2008

Less than a week after it was negotiated, the deal to secure Democratic control of the state Senate has fallen apart.

This morning, Senate Democratic Leader Malcolm Smith announced that he was suspending negotiations with the so-called "Gang of Three" — senators Carl Kruger and Ruben Diaz Sr. and Sen.-elect Pedro Espada.

" ... To do so otherwise would reduce our moral standing and the long-term Senate Democratic committment to reform and change," Smith said in a statement shortly after he, joined by Liz Krueger and Neil Breslin, announced the collapse of negotiations.

"We would rather wait two more years to take charge of the Senate than to simply serve the interest of the few."

"Throughout this process, Malcolm Smith has proved to be the not-ready-for-prime-time leader," Espada said.

"I will not sit in the room with him again unless he's got the total support of his own conference."

Since Election Day, the breakaway Democrats have threatened to withhold their support from Smith's leadership.

Last week's deal seemed to shore up his support by granting the three powerful posts in the new majority.

[Livyjr]

"Empire Zone reforms would require $12B from The Foundry Co."

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

Last updated: 12:50 p.m., Wednesday, December 17, 2008

The reforms call for Empire Zone participants to produce $20 in investments and wages for every $1 of state benefits.

That means the $600 million in zone benefits that The Foundry Co. would receive to build the semiconductor plant in Saratoga County would require it to spend $12 billion.

It wasn't clear how quickly the company would have to spend that money.

[Livyjr]

WE ARE NOW SPENDING OUR STATE TAX DOLLARS TO SUPPORT AN OIL-RICH ARAB EMIRATE ...

"Another state OK for AMD incentives"

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

Last updated: 3:25 p.m., Wednesday, December 17, 2008

The state's Public Authorities Control Board today approved the transfer of $650 million in cash promised to Advanced Micro Devices Inc. for a $4.6 billion computer chip factory in Saratoga County.

Now, the money will go to a joint venture between AMD and the Emirate of Abu Dhabi.

The PACB, a state oversight board that must approve such incentive packages, approved the spending two years ago.

But AMD, which has been suffering losses, decided to spin off its manufacturing and get a major investment from the oil-rich Persian Gulf city-state in order to strengthen its balance sheet and the project's prospects.

The $650 million is coming from Empire State Development Corp., the state's economic development unit.

The majority of the money -- $500 million -- will pay for construction of the fab building at the Luther Forest Technology Campus in Malta, while $150 million will be used for research and development of chip technology.

[Livyjr]

"Spargo's lawyer raps 'timing' - E. Stewart Jones says there's no truth in charges against former state judge"

By BRENDAN J. LYONS, Senior writer, Albany, New York Times Union

First published in print: Wednesday, December 17, 2008

ALBANY – An attorney for Thomas J. Spargo, a former state Supreme Court justice who was removed from the bench two years ago, lashed out at federal authorities Tuesday for pursuing criminal charges against his client related to a scandal that took place five years ago.

Spargo, 65, an East Berne attorney who specializes in election law and once was counsel to the state Republican Party, appeared in U.S. District Court Tuesday for his arraignment on charges of attempted bribery and attempted extortion.

The two-count felony indictment was returned by a grand jury in Albany last week, just days before the statute of limitations was to expire.

The case centers on allegations that in December 2003 Spargo pressured an Ulster County attorney who had cases before him to donate $10,000 to a fund set up to defray Spargo's legal bills.

At the time, Spargo had run up a $140,000 tab from a years-long fight with the Commission on Judicial Conduct.

The state panel concluded Spargo had attempted to extort money from the attorney, and in 2006 it ruled he should be removed from the bench.

The Court of Appeals later affirmed the decision.

Spargo pleaded not guilty to the criminal charges Tuesday.

He declined to comment as he left court after being released on his own recognizance by U.S. Magistrate Judge George H. Lowe.

Before the brief proceeding, Spargo shook hands with two FBI agents and politely introduced himself to the government's trial attorney, M. Kendall Day.

Outside court, Spargo's attorney, E. Stewart Jones, who also represented Spargo during his four-year battle with the judicial commission, questioned why now.

''The timing of this is inexplicable, on the eve of the expiration of the statute of limitations, years after the decision by the Court of Appeals and the Commission on Judicial Conduct,'' Jones said.

''I don't understand it.''

Jones said they do not know why the case is being handled by the Justice Department's Public Integrity Section in Washington, D.C., rather than by federal prosecutors in New York's Northern District.

The Public Integrity Section, which was set up, in part, to investigate public corruption cases, was intended to be impervious to outside political influences.

It is the same division behind last summer's raid on the State Street offices of former state GOP Chairman William Powers, now a lobbyist.

That probe centers on the campaign and political dealings of former U.S. Rep. John Sweeney of Clifton Park, and includes an examination of Sweeney's ex-wife, Gaia "Gayle" Ford, who worked at Powers' State Street firm when Sweeney was a congressman.

Spargo and Powers know one another but it's unclear if the two investigations are connected.

A spokesman for the FBI in Albany did not respond to a request for comment.

''I find the entire process bizarre because it's begun here in the fall of 2008,'' Jones said.

''We are now facing federal charges that are brought by a governmental agency that has absolutely no connection to this case until now, and no connection to this district until now."

"But the bottom line is whoever has it doesn't have the facts, doesn't have the proof and doesn't have the truth.''

Spargo, a widely known attorney in Albany's political circles, began his rise to the bench when he won an election for Berne town justice in 1999.

Two years later, he received a coveted cross-party endorsement during a successful bid for a state Supreme Court post in Albany.

During his tenure Spargo presided over cases across the seven counties of the Third Judicial District.

Still, Spargo's tenure on the bench almost immediately became clouded as the state judicial panel began examining a series of misconduct allegations that dated to his initial campaign for town justice.

Brendan J. Lyons can be reached at 454-5547 or by e-mail at blyons@timesunion.com.