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

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"Tedisco defends payout to top aide - Assemblyman says he thought of $32,500 used for legal bills as a loan"

By JAMES M. ODATO, Capitol bureau

First published in print: Tuesday, April 28, 2009

ALBANY — Assemblyman James Tedisco defended his controversial decision to use a Republican Assembly Campaign Committee account to pay the legal bills of his top aide, adding that he thought of the payment as a loan.

In an interview Monday, Tedisco said the $32,500 check from the RACC housekeeping account last July helped his chief of staff, William Sherman, in his defense against Democrats trying to use a frivolous lawsuit to bankrupt Republican candidates for Schenectady County Legislature.

He said he has no regrets, even though discovery of the payment last week infuriated many of the 40 other members of the Republican minority.

Tedisco stepped down as minority leader earlier this month amid a paper ballot count in his unsuccessful run to become a U.S. representative from the 20th Congressional District.

"I thought it was the right thing to do," Tedisco said.

"I regret they filed a frivolous lawsuit."

"I don't regret standing up for the Republican Party."

He said it was important to support grass-roots candidates who could become state lawmakers.

Asked why he only agreed to pay Sherman's half of the legal bill and not that of co-defendant Joseph Suhrada, another Republican, Tedisco said, "Bill was part of our conference."

"... It seemed like a conference thing, to stand up for our candidates."

"... They've got to be not afraid of running for office because of frivolous lawsuits."

Suhrada won his 2005 race for the County Legislature; Sherman lost his run.

Suhrada, a longtime supporter of Tedisco, has not returned several phone calls to his candy store in Schenectady.

In 2005, both Republicans were sued by members of the Mallozzi family.

Brothers Robert and John Mallozzi own Villa Italia Pasticceria in Schenectady with their sister, Christine Mallozi-Chiaravalle, who was a Democratic candidate for county office.

The Mallozzis lost their suit against Sherman and Suhrada at the end of 2008.

They had alleged that they were defamed during a hotly contested race decided by a handful of votes.

The race featured mudslinging on both sides: The Democrats portrayed the two Republican men with long Pinocchio noses; GOP ads targeted the Mallozzis, operators of a successful banquet hall in Rotterdam and the popular bakery, as beneficiaries of politically directed economic development grants.

A state judge said that such accusations are permitted in political ads, and held that the two Republicans should receive their legal expenses.

At the time, Sherman estimated the bills would amount to more than $80,000 for the two men.

Earlier, he arranged for RACC to cover his half and attached a note to his law firm, Hiscock & Barclay, saying the payment had to be held in the strictest confidence.

Tedisco said "you have to ask Bill" when asked about the purpose of the note.

Sherman has not returned calls.

Tedisco said his expectation was that Sherman would repay RACC once he collected the legal fees from the plaintiffs.

He could not explain why that has not happened.

Lawyers for the Mallozzis and Sherman would not say, and attempts to reach Robert Mallozzi have been unsuccessful.

Tedisco said he expects that Sherman will have to pay the money back, adding that he didn't run the plan by the rest of the Republican members because he was making an executive decision.

Tedisco said he poured hundreds of thousands of dollars into RACC from his own campaign fund, and into other campaigns without asking members first.

Tedisco said Sherman received an extra $10,000 in pay from RACC funds because of his hard work on political activities.

The legal bill payment and the extra salary were not meant to induce Sherman to stay on as chief of staff after announcing plans to leave for a new job at a charter school company, Tedisco said.

Sherman also received a pay hike for his Assembly post after changing his mind about leaving last summer.

Some GOP members say privately that they were outraged at Tedisco's actions.

The state Board of Elections said the account from which Sherman received his confidential payment should not have been used for legal bills.

Minority Leader Brian Kolb said Sherman's job is unchanged, although he has called for an audit of RACC books.

The minority office did, however, eliminate the job of Dan Bazile, a press officer hired by Tedisco.

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

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"GlobalFoundries puts its chips on the table - Analysts, journalists get a tour of campus as it is, as it will be"

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

First published in print: Friday, May 1, 2009

MALTA — Changes are coming quickly to Luther Forest Technology Campus.

Officials from GlobalFoundries Inc., the company planning a $4.2 billion computer chip factory here, told technology writers and analysts from around the world Thursday they are close to buying the 222 acres for the project and starting ground work.

"We're about to start clearing the site," said Terry Caudell, project manager for what will be known as Fab 2.

GlobalFoundries and Luther Forest Technology Campus Economic Development Corp., which owns 1,414 acres that straddle the towns of Malta and Stillwater, still must finalize their transaction, estimated to cost between $7 million and $8 million.

Although the two parties believe the closing could occur any day now — they have been saying that for two weeks — it's likely to wrap up by next week.

The complexity of the deal, especially the deed and other documentation, is why the closing was not done as of Thursday.

Once completed, GlobalFoundries will send its official commitment letter to the state of New York, and that will make the company eligible for $650 million in cash for the 1.3 million-square-foot building and costs for research and development.

Then GlobalFoundries will name the general contractor for the project, which is expected to be M+W Zander.

Zander, in turn, will award the first contract of the project for initial site clearing, which involves removing trees and roots and moving dirt and sand.

"It will happen pretty fast," said GlobalFoundries spokesman Travis Bullard.

GlobalFoundries invited journalists and analysts who cover the computer chip industry to Malta to meet with company executives and learn about plans for Fab 2, which is expected to reach full-scale production by 2012, supplementing existing manufacturing in Dresden, Germany.

Some came from as far away as London and Israel.

GlobalFoundries Chief Executive Officer Doug Grose was in attendance, along with other top executives.

The event ended with a bus tour of Luther Forest, including the site where Fab 2 will be built.

They also toured Albany NanoTech, where GlobalFoundries does chip research as part of an alliance with IBM Corp.

GlobalFoundries was created two months ago as a spinoff of Advanced Micro Devices Inc. of Sunnyvale, Calif., which first announced plans for the project in June 2006.

AMD has since decided to move to a "fabless" manufacturing model, in which it outsources all of its chip production.

AMD maintained a significant stake, though, in GlobalFoundries in a joint venture with Advanced Technology Investment Co., an investment fund owned by the Emirate of Abu Dhabi.

AMD is GlobalFoundries' first customer, but new clients are being aggressively pursued, officials said.

The Fab 2 site actually has space for up to three factories, or modules, although the company has only committed to one so far.

"We think this is a well-designed campus, and it will serve us well into the future," Caudell said.

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

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"HEY, DON'T BLAME ME; THE COOKIE JAR WAS THERE BEGGING ME TO PUT MY HAND IN IT ...."

And so ...

"7 lawyers in jobs scandal at risk - Civil Service presses Pataki-era holdovers over their status"

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

First published in print: Friday, May 1, 2009

ALBANY - Seven attorneys at the state Department of Taxation and Finance face losing their jobs amid allegations they and a former commissioner manipulated civil service practices to secure tenured government jobs at the end of the Gov. George Pataki era.

The Times Union has confirmed the attorneys all received letters from the state Department of Civil Service that set a deadline, now extended to May 15, for them to explain why their positions should not be revoked, effectively putting them out of a job.

The attorneys have annual salaries ranging from $71,051 to $127,794, according to 2008 records.

The attorneys were identified in a state inspector general's report released in March that found former acting tax Commissioner Barbara G. Billet had massaged civil service ''exams'' by creating specific criteria so that their background and qualifications would make them the only choice for certain senior attorney jobs.

They schemed to manipulate the hiring criteria at a time when they knew Pataki would not be seeking re-election and their politically appointed ''at-will'' jobs could be eliminated, the report said.

The inspector general's investigation began as a probe of Billet, who slid into a civil service post she had never held after stepping aside as commissioner.

The probe also examined the propriety of a post-retirement job in which Billet had telecommuted from her retirement home in South Carolina while working under an assumed name.

The investigation concluded Billet's conduct may have violated the state Public Officers Law, including a provision that ''no officer or employee of a state agency ... should use or attempt to use his official position to secure unwarranted privileges or exemptions for himself or others.''

The attorneys who recently received ''letters of possible revocation'' are: Christopher O'Brien, Ellen Roesch, Robyn Cotrona, David Demeter, Andrew McEvoy, Marc Strange and Michele Milavec, according to two people briefed on the matter.

David Ernst, a spokesman for the Department of Civil Service, declined to confirm who received the letters and said ''there's been no final action taken.''

''We're still in the process at this point in carrying out the recommendations of the inspector general and the directive from the governor to investigate and take appropriate action,'' Ernst said.

''The Department of Civil Service is concerned only with whether the permanent status was granted in an irregular, illegally or even a fraudulent fashion.''

The inspector general's 10-month investigation found the suspect job-securing practice was not isolated to Billet and her coworkers.

The unscrupulous manipulation of civil service hiring provisions dates back years and may involve dozens of attorneys who fraudulently obtained government jobs that would shield them from firings related to political ties, the report said.

The report also criticized the process by which Billet arranged for her own rehiring to a part-time attorney's position after her ''retirement'' last year.

The unprecedented and secretive arrangement enabled Billet to ''telecommute'' from a home near Hilton Head, S.C., while working under a made-up name so that tax agency workers would not recognize her.

Billet's controversial telecommuting job was publicly exposed last June by the Times Union.

She resigned a month later.

The newspaper's stories showed Billet used the name ''Barbara Clarkstone,'' which was drawn from a combination of her grandmothers' maiden names.

Billet did not work a full year but her pay equaled about $28,000 annually for working two days a week from home.

The inspector general said the telecommuting privilege had never been granted to any other current or former taxation and finance employee.

Billet retired as commissioner in January 2007 and flatly denied that politics played a role in her rehiring, which took effect March 6, 2007.

She worked in various state jobs for more than 20 years and headed the state tax department as acting commissioner for 14 months before retiring from the $155,000-a-year position, a politically appointed job.

Billet collects an annual state pension of $49,349, records show.

Another attorney implicated in the report, Marvis Warren, did not receive a letter of possible revocation.

A person briefed on the matter said Warren had secured her civil service position more than three years ago, which is beyond a deadline for the agency to take any action unless it can be shown the employee engaged in fraud.

Marvis Warren is the wife of former state Assemblyman Glenn Warren, R-Fishkill, who also was executive director of the state Worker's Compensation Board under Pataki.

DeMartino was offered a tenured job at a time when he was counsel to Pataki's appointment's office, but the position was rescinded.

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

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"HEY, DON'T BLAME ME; THE COOKIE JAR WAS THERE BEGGING ME TO PUT MY HAND IN IT ...."

And so ...

"Playing the Albany game for big gain - State pension fund presented a ripe target as calls for change were ignored"

By IRENE JAY LIU, Capitol bureau, Albany, New York Times Union

First published in print: Sunday, May 3, 2009

ALBANY — In a state where corruption and government scandal make daily headlines, the notion that New York's class of powerful political operatives could use undue influence to enrich themselves through government is nothing new.

Over a century ago, state Sen. George Washington Plunkitt, part of the Tammany Hall machine, wrote about the exercise of power for personal gain by noting, "I seen my opportunities and I took 'em."

But in today's investigation of "pay-to-play" corruption at the state pension fund, what makes the schemes allegedly organized by top Democratic operative Hank Morris so unique — and so difficult to detect — was that they aligned two spheres that rarely overlap in Albany: public finance and politics.

But the alleged scheme could have been revealed much sooner if state leaders had heeded the warnings of government watchdogs.

Morris has been charged with conspiring to sell access to billions of taxpayer dollars in exchange for millions of dollars in kickbacks and other payments for political and personal gain in a "pay-to-play" scheme at the pension fund, formally known as the New York State Common Retirement Fund.

Morris was the top political adviser to former state Comptroller Alan Hevesi, who, as the state pension fund's sole trustee, had unfettered control over the investment decisions for the fund.

Morris allegedly set up shop as a placement agent and charged a commission for granting access to Hevesi's office, according to the indictment.

In April, hedge fund manager Barrett Wissman pleaded guilty to felony fraud for his role in a kickback scheme involving Morris.

The hedge fund manager admitted pocketing at least $12 million for helping to direct $100 million in pension dollars to Hunt Financial Ventures and kicking back $600,000 to Morris.

For those who inhabit the Capitol — legislators, staffers, lobbyists and advocates — politics and influence are largely applied toward crafting legislation and regulations.

Until Morris' alleged scheme surfaced, few could have anticipated that the same political influence could be wielded to broker complex financial deals that comprise the $122 billion state pension fund.

For decades, control of the fund "has been the purview of Wall Street investment houses and a handful of white-shoe law firms — all of whom allegedly answered to the SEC," said John Cordo, a prominent Albany lobbyist who worked for years as counsel in the state Senate.

"There wasn't much overlap with Albany's traditional political and lobbying core."

"It seems that several years ago that began to change."

Attorney General Andrew Cuomo, who is leading the pension fund investigation in conjunction with the SEC, told reporters Thursday that the alleged Morris operation is "the worst of both worlds … the worst of the private-sector financial community meeting the worst of the government and political community."

Cuomo said these pay-to-play schemes are a national problem, but that the situation is worse in New York because of the confluence of two factors.

First, New York is one of only three states that have a sole trusteeship, the state comptroller, in charge of the pension fund.

Second, New York allows what Cuomo termed "exorbitant" campaign contribution limits for statewide elected positions — $55,000 per individual or Limited Liability Corporation.

"I believe that (combination) is TNT — it causes an explosion," Cuomo said.

State Comptroller Thomas DiNapoli has voluntarily capped contributions to his campaign at $10,000 per individual or LLC, and has introduced a program bill to enable public financing of the comptroller's race.

He is currently seeking sponsors to carry the bill in the Assembly and Senate.

While Capitol insiders might not have anticipated the hazards of pay-to-play, Arthur Levitt Jr., son of former state Comptroller Arthur Levitt Sr. and the longest-serving chairman of the Securities and Exchange Commission, sounded the alarm over a decade ago.

Addressing a group of pension managers from around the country in 1999, Levitt warned that "certain practices remain closer to the backroom deals and 'honest graft' of Plunkitt and his ward captains, than to the unimpeachable integrity demanded of fiduciaries."

In that speech, Levitt used a baseball metaphor: If pay-to-play controlled the sport, "a baseball team would draft players on how much they have lined the pockets of the team's management."

"A player's batting average, home runs, or earned run average would be a secondary concern — if at all."

"How many games do you think the team would win?"

"And how would the fans react if they knew this was how the team was selected?"

At that meeting, Levitt proposed a series of reforms that would have banned investors doing business with pension funds from making political contributions.

But the idea met with stiff resistance from state officials and was never implemented.

Levitt continues to advocate on the issue since stepping down from the SEC in 2001 and moving to the private sector.

He is now senior adviser to the Carlyle Group, a politically connected private equities firm that has been questioned in the ongoing pension fund investigation.

In October 2007, Levitt told a group of pension fund managers that the SEC should revisit his 1999 proposal, and that firms should voluntarily stop paying finder's fees to nonemployees who deliver pension fund business to them.

In late April, Carlyle was the first firm to voluntarily discontinue use of placement agents in connection with public pension funds.

Both DiNapoli and New York City Comptroller William Thompson have banned the use of placement agents, lobbyists and consultants.

The state, however, missed other opportunities to shed sunlight on vulnerabilities in the system.

From the late 1990s to the early 2000s, the now-defunct New York State Temporary Commission on Lobbying called for an expansion of the definition of "lobbying."

The commission recommended that lobbying be defined as "communicating directly or soliciting others to communicate ... for the purpose of influencing any legislative, administrative or official action to be taken by that official or staff person," which would have extended the definition beyond the realm of legislation and regulations into the business of the pension fund.

In annual reports up until 2003, the commission said the current definition is "too restrictive, and effectively curtails the commission's ability to obtain disclosure of such activities" outside the current definition, including business related to the pension fund.

Like Levitt's reforms, the proposal went nowhere.

When asked why the proposal never moved forward, former Lobbying Commission Director David Grandeau laughed and suggested that part of the reason why it met resistance is because he had been the one making the proposal.

As director of the lobbying commission, Grandeau had drawn the ire of state officials and lobbyists alike for his aggressive tactics and willingness to use the press to expose corruption in the system.

(In 2007, the lobbying commission was merged with the State Ethics Commission into one Public Integrity Commission.)

Extending the lobbying definition might have uncovered the alleged pay-to-play scheme sooner, Grandeau said.

Lobbying firms are required to file information about their clients, expenses, the bills and contracts targeted, and the names of the individual lobbyists doing the work.

If the definition had been expanded, the placement agent fees paid to Morris' employer, Searle & Co., as well as his personal involvement in the deals would have been publicly disclosed.

On Friday, Cuomo announced that he and the SEC were expanding their investigation to include "unregistered and unlicensed middlemen," an area he said highlights "systemic weakness in the system."

Cuomo said that he intends to present the legislature with reform proposals in the future.

But Grandeau said that no rule will be able to fix the problem wholesale.

"Right now as you and I are talking, someone is running a scam," he said.

"People are not going to change."

"There is always going to be corruption in government."

"The best thing you can do is find capable people who are strong, committed investigators and enforcers."

"That's how you stop it," he said.

"With the exception of the attorney general, I don't think anyone else is doing that."

Staff writer Irene Jay Liu can be reached at 454-5081 or iliu@timesunion.com.

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"Paterson calls for state spending cap - Would limit annual increases going forward; approval by Legislature could be a tough sell"

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

Last updated: 3:31 p.m., Monday, May 4, 2009

ALBANY — Gov. David Paterson wants to impose a spending cap on the state budget.

"If we limit the appropriations in our upcoming budgets, we will bring a whole new value system to Albany," he said in an afternoon press conference from the Red Room of the Capitol.

"We are going to ask government to live under the same conditions our taxpayers do."

The plan would limit increases to a three-year average of the inflation rate.

Paterson said that if such a cap had been in place over the past five years, savings to the state budget would be $17 billion — almost the size of the deficit that Paterson and lawmakers had to close last month in the 2009-2010 state budget.

This year, the state spending portion of the budget, grew .7 percent, which would be within the proposed guidelines.

Such a cap would have to be approved by the Legislature, and it was unclear if lawmakers — who hate to be the bearers of bad news to their constituents — would even take up such a plan.

Paterson said the discipline lawmakers exhibited in passing this year's budget makes him optimistic that they would approve his cap.

The cap also comes as Paterson, dogged by approval ratings such as today's Marist Poll showing that only 19 percent of New Yorkers think the governor is doing a good or excellent job, is going into full re-election mode looking forward to 2010.

Last week, for example, Paterson announced that he would no longer simply approve laws or measures that cost local governments money.

He's also borrowing a page, to some extent, from one of his allies and one-time gubernatorial aspirant, Nassau County Executive Tom Suozzi, who has led the push for a 4 percent annual cap on school taxes.

That concept of a spending cap has proven popular with voters.

Additionally, Paterson is pushing many proposals at once — similar in style to Attorney General Andrew Cuomo, who has kept up a veritable blizzard of reform initiatives since coming into office.

Cuomo is increasingly cited as the leading potential challenger in a Democratic primary for governor.

Rick Karlin can be reached at (518) 454-5758 or rkarlin@timesunion.com

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"Builder pleads guilty to grand larceny"

By DENNIS YUSKO, Staff writer, Albany, New York Times Union

First published in print: Thursday, May 7, 2009

BALLSTON SPA - A Saratoga County custom home builder has pleaded guilty to taking money from customers and using it for purposes other than constructing their homes, law enforcement officials said Wednesday.

James McLagan of Mechanicville pleaded guilty to two counts of felony grand larceny in Saratoga County Court on Tuesday, a court clerk said.

Each count represents multiple victims whose money was stolen during the construction of new homes in the subdivisions of Nielsen's Landing in Saratoga and Washington's Crossing in the Saratoga Springs, prosecutors say.

Authorities charged McLagan last year with bilking clients, including thoroughbred horse trainer H. James Bond, of more than $215,000 in down payments for homes he never built.

Instead of using the money to pay for contractors and supplies, McLagan diverted the money "to other purposes," Saratoga County District Attorney James A. Murphy III said.

McLagan never completed the new homes or they were foreclosed on before the buyers could assume ownership, Murphy said.

He called the convictions a warning to all contractors in New York not to misuse a customer's money.

McLagan, 55, faces jail, probation and restitution when he is sentenced June 30, Murphy said.

McLagan also pleaded guilty Tuesday to two misdemeanor counts of petit larceny stemming from the cases.

Last year, Saratoga Springs Mayor Scott Johnson posted $16,000 bail for McLagan when he was arrested.

Johnson cited his son's friendship with McLagan's sons at the time.

Dennis Yusko can be reached at 454-5353 or by e-mail at dyusko@timesunion.com.

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"Labor deal said to be holding up Malta chip fab"

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

Last updated: 1:01 p.m., Friday, May 8, 2009

A spokesman for GlobalFoundries Inc. said this morning that the company won't proceed with its $4.2 billion computer chip factory project in Malta until it comes to a labor agreement with construction unions.

GlobalFoundries has been saying for weeks now that its deal to purchase 222 acres at the Luther Forest Technology Campus was just days away as the complex deed and other documents were finalized.

Once the deal closes, the Sunnyvale, Calif.-based company is expected name the general contractor, award the first bid to clear the site, and send a letter to New York state officially accepting $650 million in grant money for the project.

However, company spokesman Travis Bullard said today in Pittsfield, Mass., that while the land deal has been worked out, the real estate closing and the awarding of contracts won't occur until a deal is worked out with the unions.

That means it may be weeks, not days, until the land is acquired and site clearing begins.

Labor unions have been demanding project labor agreements be used at the site, because the project is getting state incentive money.

PLAs are pacts between project owners and union and nonunion shops that govern wages and work rules on big construction sites.

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"Ex-Health Commissioner Novello charged with theft, fraud"

By ROBERT GAVIN, Staff writer, Albany, New York Times Union

Last updated: 12:43 p.m., Tuesday, May 12, 2009

ALBANY - Former state Health Commissioner Antonia Novello faces up to 12 years in prison on charges she illegally ordered state workers to chauffeur her around on shopping sprees, pick up her dry cleaning and water her plants over a two-year period.

A 20-count criminal indictment unsealed in Albany County Court this morning alleged Novello used her staff employees, including a security assistant, to do "personal services for her."

It also said she filed false information on a state comptroller's office form, failing to list the "chauffeur amount" that benefitted her.

The one-time U.S. surgeon general pleaded not guilty to one count of defrauding the government and three counts of filing a false instrument, both low-level felonies.

She entered the same plea to 16 counts of theft of government services, a misdemeanor.

The indictment listed the amount of money involved as in "excess of $1,000," though she had been alleged to cost taxpayers $50,000.

The typically outspoken Novello, 64, appeared somber as she entered the second-floor courtroom of Judge Stephen Herrick, joined by attorney E. Stewart Jones.

She answered no questions from reporters as she awaited Herrick.

"Are you Antonia Novello?" the judge asked.

"Yes, sir," the former commissioner replied.

"Is that your signature," he later asked after Novello signed a procedural document.

"Yes it is,'" Novello said quietly.

"Yes, your, honor,"

Herrick released Novello without any bail, but not before asking her to surrender her passport.

She exited with Jones to face cameras.

Novello remained silent.

Jones did not.

The high-profile attorney blasted state Inspector General Joseph Fisch's office, which referred the case to Albany County District Attorney David Soares' office.

Jones called her prosecution a "selective process" that should have been handled in civil court.

He said the inspector general's office "discriminatory criminalized, politicized and distorted" the case.

"It never should have reached this point," Jones said.

"(That) one of our nations's great public servants stands here today is a shame."

"And the shame is on the inspector's office for putting her in this position."

He said Novello would have paid back the state had she been asked.

He said she was never given notice and called the case unfair.

He said members of Congress, as well as the Obama and Paterson administrations, have done "far worse" than Novello and not been criminally charged.

"Why is she here?" a visibly irked Jones told reporters.

"She's here because she has a bull's-eye on her back."

"Because politics is a contact sport."

"Because there are people who are vindictive and who have wanted to get her ever since she left the state."

Soares said Novello's status as a once top state and national official was "irrelevant" in his decision making about the prosecution of the case.

Asked about Jones' contention no one ever explained Novello the problem, Soares said, "I think as time goes on and the facts of this case come out, you will see that statement is not necessary correct."

He said it was a similar case to his office's prosecution of former Comptroller Alan Hevesi, who used state employees to chauffeur his wife, "in the sense that there's a misappropriation of state resources."

He bemoaned that state law does not allow a more serious charges for the amount of money involved.

Had Novello taken thousands in paper clips, he noted, she could have been charged with a more serious felony.

The charge of defrauding the government, according to the indictment, alleged Novello used employees under her supervision "for her personal purposes while such state employees were being paid by the state of New York for regular and overtime hours during the time they were directed by the defendant to perform such personal services for her."

Heather Orth, a spokeswoman for Soares, said the allegations mirrors accusations detailed in a January state Inspector General's Office report about of her conduct as commissioner.

In a strongly worded report, Fisch said Novello shamelessly and blatantly exploited and abused her staff by requiring guards to chauffeur her to malls and stores and required staffers to rack up 2,540 hours of overtime at a cost of $50,000 to taxpayers.

Besides ferrying her to Colonie Center and Crossgates Mall, staffers were ordered to water her house plants, buy her groceries, handle her dry cleaning and be "on call" nights, weekends and holidays.

The acts drew the concern of Novello's top deputy, Dennis Whalen, now Gov. David Paterson's director of operations.

He wrote in 2003 that she should not be using staff for non-state services, Fisch found.

In recent weeks, several state officials have testified in front of an Albany County grand jury investigating Novello's conduct during her 1999-to-2006 tenure as commissioner, people familiar with the investigation told the Times Union.

Novello served in the office under Gov. George Pataki following her service as surgeon general under President George H.W. Bush from 1990 to 1993.

She would be the latest of a series of state officials investigated and prosecuted for the way they conducted themselves as a public servant.

Accusations of misuse of state employees and a warped sense of privilege arose frequently during the 64-year-old doctor's run in charge of the state's multibillion-dollar health program.

She was known to spend extravagantly on her large office in the Corning Tower.

According to the inspector general's report, security guards repeatedly transported Novello's mother to the Newark, N.J., airport to catch flights to Puerto Rico.

He noted that Novello failed to fully declare the perks on her tax returns and turned the case over to the Albany County district attorney.

She is employed now as an executive with Disney Children's Hospital in Orlando, Fla.

Capitol Reporter James M. Odato contributed to this report.

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"IG: Integrity commission chief leaked confidential information to Spitzer aide - IG recommends removal of Executive Director Herbert Teitelbaum"

By MIKE GOODWIN, Staff writer, Albany, New York Times Union

Last updated: 12:02 p.m., Wednesday, May 13, 2009

ALBANY -- The executive director of the state's Commission on Public Integrity leaked confidential information to the Spitzer administration about the commission's probe of "Travelgate," the Inspector General's office announced in a report about his probe of the ethics panel.

The report issued by Inspector General Joseph Fisch criticizes the integrity commission and calls for the dismissal of Executive Director Herbert Teitelbaum.

It alleges that Teitelbaum illegally disclosed confidential information to Robert Hermann, a cabinet member, when the commission was probing then-Gov. Eliot Spitzer's role in the disclosure of Senate Majority Leader Joseph L. Bruno's travel records.

State law requires commission officials to keep investigations confidential.

Fisch said Hermann and Teitelbaum were both warned, Hermann by another Spitzer official and Teitelbaum by a commission lawyer, not to discuss confidential information about the commission's work, but Teitelbaum continued to leak information.

Among the information Teitelbaum disclosed was that the commission was recommending that Albany County District Attorney David Soares look into possible perjury tied to the probe.

The IG investigation arose out of the chaos of last year's so-called "Travelgate" or "Troopergate" scandal as one state official after another investigated the release by the Spitzer administration of travel records for Bruno.

The IG pursued alleged leaks by Teitelbaum of confidential information through a third party to Spitzer's aides.

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"Charges follow scathing report - Ex-health chief Antonia Novello pleads not guilty to using state workers as her personal servants"

By ROBERT GAVIN, Staff writer, Albany, New York Times Union

First published in print: Wednesday, May 13, 2009

Antonia Novello spent seven years as state health commissioner, but now she could face 12 years in state prison for allegedly using state workers as her personal servants.

Novello, who also served as the U.S. surgeon general under President George H. W. Bush, was in court Tuesday to answer criminal charges connected to allegations she ordered her security staff to act as chauffeurs to take her on personal business.

Novello, 64, pleaded not guilty at her arraignment on a 20-count indictment that accuses her of abusing her office from 2004 to 2006, her final years as commissioner.

The usually outspoken Novello appeared somber as she entered the second-floor courtroom of Albany County Judge Stephen Herrick, joined by her defense attorney, E. Stewart Jones of Troy.

She answered no to questions from reporters as she waited for Herrick.

"Are you Antonia Novello?," the judge asked.

"Yes, sir," the former commissioner replied.

"Is that your signature," Herrick later asked after Novello signed a procedural document.

"Yes it is,'" Novello said quietly.

"Yes, your, honor,"

The indictment backs a scathing report state Inspector General Joseph Fisch released in January accusing the former commissioner of repeatedly abusing her authority.

The inspector general had found Novello not only required her workers to rack up 2,547 hours of overtime between 2000 and December 2006, but ordered employees to drive the commissioner - and friends - everywhere from Capital Region shopping outlets to Newark airport in New Jersey.

Among other findings, Fisch's report alleged one employee stated she could not carry out Medicaid fraud investigations because she was too busy with her "duties to the commissioner."

Novello allegedly had employees do her dry cleaning, water plants while she was away and go on shopping runs.

Fisch referred the case to Albany County District Attorney David Soares' office, which brought the case to a grand jury.

The indictment unsealed Tuesday is far vaguer than Fisch's report.

It does not go into details about the nature of the personal missions Novello allegedly ordered her staff to perform for her.

Other than citing the charges Novello faces, Soares would not specifically outline individual instances of Novello's alleged abuse of power when questioned by a reporter at a news conference.

Novello is charged with one count of defrauding the government; three counts of filing a false instrument, both low-level felonies; and 16 counts of theft of services, a misdemeanor.

If convicted she faces as much as 4 to 12 years in state prison.

The indictment only states Novello, who was paid $196,000 annually in Albany, cost the state "excess of $1,000" by ordering the personal work.

The inspector general's report placed the figure at $48,000.

Herrick released Novello without any bail, but not before asking her to surrender her passport.

She exited with Jones to face cameras.

Novello remained silent.

Jones did not.

The high-profile Troy attorney blasted Fisch's office.

Jones called her prosecution a "selective process" that should have been handled in civil court.

He said the inspector general's office "discriminatory criminalized, politicized and distorted" the case.

"It never should have reached this point," Jones said.

He said Novello would have paid back the state had she been asked.

He said she was never given notice and called the case unfair.

"Why is she here?" Jones told reporters.

"She's here because she has a bull's-eye on her back."

"Because politics is a contact sport."

"Because there are people who are vindictive and who have wanted to get her ever since she left the state."

Fisch issued a statement saying, "When investigating allegations of misconduct by a public official, that official's political identity, affiliation, or philosophy, are matters of indifference to my office."

His report had stated that Novello was advised in July 2003:

"When you are not in official travel status, and when you are not acting in your official capacity as the State Health Commissioner, avoid the use of the drivers or state staff."

"Never under any circumstances request or direct that an employee perform a personal (non-state) service for you or conduct personal business on your behalf."

Meanwhile, Soares told reporters Novello's status as a former top state and national official was "irrelevant" in his decision making about the prosecution of the case.

Asked about Jones' contention no one ever explained the problem to Novello, Soares said, "I think as time goes on and the facts of this case come out, you will see that statement is not necessary correct."

He compared the case to his office's prosecution of former Comptroller Alan Hevesi, who used state employees to chauffeur his wife, "in the sense that there's a misappropriation of state resources."

The charge of defrauding the government, according to the indictment, alleged Novello used employees under her supervision "for her personal purposes while such state employees were being paid by the state of New York for regular and overtime hours during the time they were directed by the defendant to perform such personal services for her."

The filing allegation is because failing to list the accurate "chauffeur amount" that benefitted her.

Novello, a surgeon general under President George H.W. Bush from 1990 to 1993, was later chosen by Pataki to be the state's top health official.

She joined the agency in 1999 and left in 2006.

She later became vice president of Women and Children Health and Policy Affairs at Disney Children's Hospital at Florida Hospital, in Orlando, Fla.

Robert Gavin can be reached at 434-2403 or rgavin@timesunion.com

[Livyjr]

"Ethics panel won't quit - Commission on Public Integrity is in turmoil after inspector general's report, rejection of governor's call to resign"

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

First published in print: Thursday, May 14, 2009

ALBANY - A bizarre power struggle over public integrity in state government erupted Wednesday as the state inspector general accused the Commission on Public Integrity of leaking confidential information, the governor called for commission members to resign and the commission responded with defiance.

It began with Inspector General Joseph Fisch issuing a report sharply critical of the commission and its executive director.

Released in late morning, Fisch's report recommended that CPI Executive Director Herbert Teitelbaum be dismissed for allegedly passing along confidential information to former Gov. Eliot Spitzer's administration about the commission's probe into the 2007 travel records scandal involving Spitzer and then-Senate Majority Leader Joseph L. Bruno.

The inspector general's report accused the panel's commissioners of failing to fulfill their duties by allowing Teitelbaum to violate the public trust.

Wednesday afternoon, Gov. David Paterson responded by agreeing that Teitelbaum should be removed.

In a news conference, Paterson installed a new chairman of the commission, Michael Cherkasky, a former prosecutor who is now a wealthy trial lawyer and security company CEO.

Cherkasky replaces John Feerick, who resigned from the commission in February.

The governor also called for six other gubernatorial appointees on the commission and six legislative appointees to resign so the commission could "start fresh" because of "widespread violation of the public trust."

Senate Majority Leader Malcolm Smith later released a statement that he had "total confidence" in his commission appointee, Richard Emery, and intended to leave him in place.

In turn, through lawyers, the commission and Teitelbaum blasted Fisch, accusing him of ignoring information that conflicted with his assertions.

All said they would not be stepping down.

Concluding a lengthy probe that included 19 witness interviews, Fisch criticized the commission for failing to look into serious charges about Teitelbaum's conduct charges leveled by Albany County District Attorney David Soares.

The report alleges Teitelbaum illegally disclosed confidential information to Robert Hermann, a Spitzer cabinet member, when the commission was probing Spitzer's role in the disclosure of Senate Majority Leader Joseph L. Bruno's travel records and use of state aircraft.

Hermann shared what he found out with Spitzer's lawyers.

Zachary Carter, acting the commission's pro bono attorney, suggested Fisch had, in essence, been duped in an attempt by Spitzer's lawyers to create a distraction Teitelbaum's alleged leaking to turn attention away from misdeeds of the Executive Chamber.

The Commission on Public Integrity has the power to investigate the governor and his staff.

Carter said Spitzer's lawyers moved to protect the governor's staff when Teitelbaum was aggressively pursuing a theory that Spitzer staff coerced former communications director Darren Dopp to sign an untruthful statement to Attorney General Andrew Cuomo, who was also investigating the travel records matter.

He said Fisch's "unfounded conclusions" ignored the commission's reasonable and measured response to allegations about Teitelbaum.

He added that there is no proof Teitelbaum leaked information to Hermann and no finding of fact that information provided the Spitzer administration was indeed confidential.

Moreover, Carter said Teitelbaum "deserves a medal" if he was using Hermann to try to get the Executive Chamber to cooperative with the commission's investigation.

The inspector general's report notes discrepancies in stories told to Fisch's investigators by Teitlebaum and Hermann about the exchange of the "confidential" information.

The two men were close friends and called each other 165 times during just five months of 2007, the inspector general found.

Hermann was a partner in the Teitelbaum, Hiller law firm.

He was appointed by Spitzer to head the Governor's Office of Regulatory Reform and is now employed by Senate Democrats as special counsel.

The report says Hermann passed along information provided to him by Teitelbaum about the high-profile investigation of Spitzer's involvement in the release of travel documents.

When confronted on the leaking, Hermann told inspector general investigators he found out about Teitelbaum's investigation by looking at Teitelbaum's legal pad.

Hermann never mentioned that he'd seen Teitelbaum's notebook to others to whom he relayed confidential material, Fisch said.

State law requires CPI officials to keep investigations confidential.

Fisch said Hermann and Teitelbaum were both warned Hermann by another Spitzer official and Teitelbaum by a commission lawyer not to discuss confidential information about the commission's work.

Among the information Teitelbaum disclosed was that the commission was recommending Soares look into possible perjury by Dopp.

The inspector general looked into Teitelbaum's conduct after Soares wrote letters urging an investigation.

Former CPI Chairman Feerick stood by Teitelbaum in the face of Soares' criticisms.

While Fisch said Teitelbaum and Hermann "betrayed the public," the inspector general said Feerick was too trusting of Teitelbaum.

"I'm saddened that a man like John Feerick and other people with such outstanding reputations failed to exercise their responsibilities as overseers as the primary guardian of public integrity and ethics," Fisch said in an interview.

Soares said the "report speaks for itself."

James DeVita, a lawyer for Teitelbaum, said the commission concluded long ago that the allegations of inappropriate leaking by Teitelbaum were baseless and called Fisch's findings "unjustified and inaccurate aspersions."

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

Michael Cherkasky

Currently president and CEO of U.S. Investigations Services, the largest supplier of security investigations for the federal government.

Previously served as president and CEO of the insurance broker Marsh & McLennan, where his duties included investigating a damaging kickback scandal.

Also served as president and CEO of Kroll, Inc., an investigations firm that oversaw major reforms at the Los Angeles Police Department; Cherkasky previously worked as chief of the Investigations Division for the New York County District Attorney's Office.

Source: Governor's office

[Livyjr]

"Ethics panel should go"

By FRED LEBRUN COMMENTARY

Albany, New York Times Union

First published in print: Sunday, May 17, 2009

That the state Commission on Public Integrity should be called upon by Gov. David Paterson to resign for failing to do its job in the notorious Troopergate incident is the sort of rich irony we expect from the political side of our state government.

It's so Albany.

But to have that same hoity commission defy the governor and refuse to step down is quite special.

A spectacle as rare these days as a public hanging.

What brought all this to a head, of course, was state Inspector General Joseph Fisch's brilliant report that tacked commission executive director Herb Teitelbaum's hide to the wall for inappropriate, if not illegal, backdoor communications with Governor Spitzer's staff during the commission's Troopergate investigation.

The commission itself came under criticism for repeatedly failing to scrutinize Teitelbaum's conduct, even after Albany County District Attorney David Soares pointedly accused Teitelbaum.

Fisch, who had quite a spectacular week of successes, made the rare recommendation that Teitelbaum be fired for his conduct.

A few days before, also based on a Fisch report, former state Health Commissioner Antonia Novello was arraigned in Albany County Court on charges of defrauding the state.

One showstopper after another.

It turns out the real, functioning commission on public integrity is the inspector general's office.

Who would have guessed?

Acting on Fisch's report, the governor asked all the sitting commission members to resign and agreed Teitelbaum should be replaced.

At the same time, he filled the vacant position of commission chairman.

Yet now we have a rogue commission of 12, plus the executive director, standing defiant.

Not a smart place to be, smacking of arrogance and insolence as it does.

As the governor observed with admirable restraint, a commission appointment "is not something you own in government."

But make no mistake, this is not a contest of equals, no matter how prestigious the gaggle of lawyers on the commission itself might be, or how above reproach the embattled commission executive director might consider himself.

There is only one governor.

And as weakened as Paterson may be perceived because of his low approval ratings, and as reasonable as he's sounding in dealing with this mess, he's got to be seriously ticked and ready to throttle a few necks.

During a news conference Thursday, he said he was "shocked and surprised" by the commission's reaction, and suggested its members "think it over."

After all, his authority is being challenged.

Clearly, if ever there was a time for Paterson to be forceful, to show he's in charge, this is it.

If he doesn't act quickly and with force, that will be noted too, and the governor can't afford any more of that if he wants to turn public opinion around.

At this late point, it doesn't matter whether commission members and Teitelbaum can rationalize keeping their jobs, or whether they've actually convinced themselves the inspector general's blistering report was unfair.

They've lost the moral high ground they need to do any future work as the commission.

Besides, their lawyerly protestations of exemplary ethical behavior, totally at odds with Fisch's report, are thin wailings in the wind, heavy on screech, light on substance, and frankly, don't cut it.

Who cares whether commission members have fixed-term appointments?

When the governor says step down, you do so graciously.

Or else.

As Paterson mentioned, there is ample precedent for requesting wholesale resignations to give a government or an agency, or in this case a commission, "a fresh start."

The governor asked for and got the resignations of all state agency heads and decision makers when he took over from Eliot Spitzer.

Many were reappointed.

Probably the same would be true for some commission members, notably Richard Emery.

He's the commissioner who spoke out most forcefully but with little success, according to the Fisch report, for a thorough internal investigation of Soares' allegations.

Among the consequences the defiant ones are courting is this: The longer commission members drag it out, the more likely this will get public and personal, with names singled out.

This will become an indelible and embarrassing event for which their lives and careers will be long remembered, right through their obituaries.

There is simply less celebrity in exiting now as an anonymous herd.

Then again, the commission hasn't done the right thing all along, why should it start now?

While the Fisch report on Teitelbaum and Troopergate has devastated any future effectiveness for those currently running the commission, its substance also thoroughly compromises any pending charges brought by the commission in Troopergate.

Fisch shows us it simply wasn't a straight-up investigation.

There were all manner of maneuverings going on, mostly to protect Governor Spitzer.

Former Spitzer communications director Darren Dopp and former State Police Superintendent Preston Felton still have cases pending before the commission.

In the interest of justice and fairness, those charges should be dropped.

If there was real justice, their legal bills ought to be forwarded to Herb Teitelbaum.

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

[Livyjr]

"Embattled ethics director steps down - Herbert Teitelbaum exits after scathing Inspector General report"

Capitol bureau, Albany, New York Times Union

Last updated: 4:06 p.m., Monday, May 18, 2009

ALBANY — The embattled executive director of the Commission on Public Integrity is resigning less than a week after the release of a harsh report from the state Inspector General found that he unlawfully funneled information about the commission's investigation of the travel records scandal to members of the administration of former Gov. Eliot Spitzer.

Teitelbaum's resignation arrives the same day Gov. David Paterson announced his plans to introduce legislation this week creating a new watchdog group.

News of Teitelbaum's exit from the two-year-old panel came in a release that contained laudatory quotes from the commission's new chairman, Michael G. Cherkasky, who last Wednesday — the day the inspector's report was released — stood next to Paterson as the governor called on Teitelbaum and the rest of the current integrity panel to resign.

"Mr. Teitelbaum has served the people of New York with honor and diligence during one of the most difficult periods ever faced by a new state agency," Cherkasky said in his statement.

"With the utmost professionalism, he oversaw the Commission's investigation into Troopergate, working tirelessly to make sure all the facts became known to the public and resisting the efforts of many to stonewall his efforts."

"The skills he used in his many years as a successful litigator were invaluable in getting to the heart of this scandal."

" ... While we are saddened to lose Herb, we understand that by this action he has decided to put a stop to what has become a distraction to the Commission's critical work."

In a three-page letter of resignation addressed to Cherkasky, Teitelbaum says he had originally contemplated stepping down after the departure in February of former CPI Chairman John Feerick, but had allowed other commissioners to convince him that the simultaneous loss of the panel's two top officers would be "destabilizing to the Commission and its staff."

Last week, Paterson said that he had been waiting to name the new chair until the Inspector General's report was released.

Also Monday, the governor announced that he would submit legislation later this week to create a new watchdog agency, the Government Ethics Commission, that would be independent and have jurisdiction over State government, lobbying and campaign finance.

"The general perception is that the ethics process in Albany is broken and I believe it is," Paterson said in a news release.

[Livyjr]

"Ethics chief departing on note of defiance - Spitzer appointee's decision to quit follows critical report, whose allegations he denies"

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

First published in print: Tuesday, May 19, 2009

ALBANY — The executive director of the state's Commission on Public Integrity said Monday that he will resign, an announcement that comes less than a week after a scathing report concluded he had unlawfully funneled information about the panel's high-profile investigation of the travel records scandal to members of former Gov. Eliot Spitzer's administration.

Herbert Teitelbaum's resignation was made public just hours after Gov. David Paterson announced plans to create a new watchdog group that would take over the CPI's duties.

Paterson last week called for Teitelbaum and the rest of the CPI's members to step down in the wake of Inspector General Joseph Fisch's report that found Teitelbaum had "betrayed the public trust."

Teitelbaum, who was appointed by Spitzer, first drew fire last summer when Albany County District Attorney David Soares asked Fisch to investigate whether Teitelbaum had leaked information about the CPI's investigation to Spitzer aides.

The travel records affair centered on whether Spitzer had improperly ordered State Police to release helicopter records for then-Senate Republican Majority Leader Joseph L. Bruno, who had been battling the governor.

Spitzer stepped down amid a prostitution scandal over a year ago, and Bruno left office last summer.

Bruno has since been indicted for alleged influence peddling.

Fisch, who was appointed by Paterson, said he had evidence — including tape-recorded interviews — that Teitelbaum had provided back-channel reports to the Spitzer camp on the CPI's investigation.

Last week, Paterson asked his picks to the CPI to step down, and asked the other state leaders empowered to make picks for the panel to do the same.

So far, neither commissioners nor officials have taken Paterson's lead.

Monday's proposal by Paterson to create a new Government Ethics Commission, which would supersede the CPI, could be a way for the governor to address the problem while sidestepping a potential fight with lawmakers — who could conceivably reappoint some of their CPI members to the new panel.

"The only way out of this mess is to create a new law," said Blair Horner of NYPIRG, a government reform group.

Others stressed that laws and commission structures are only as good as the people behind them.

"It's all going to be dependent upon whoever is in charge of it," said David Grandeau, former director of the Lobbying Commission.

Good-government advocates have long criticized the way the CPI was set up: seven of its 13 members are appointed by the governor, a structure that critics charge concentrates too much power with the executive.

All of those current seven members were Spitzer appointees.

Under Paterson's plan, which is being developed with lawmakers, the Legislature and executive would share power in appointments so that none of the
three branches — Senate, Assembly, governor — could appoint a majority.

The new commission would cover campaign finance issues as well, a notion that some legislators thought was a prudent idea.

"We do need consolidation and uniformity," said Sen. Neil Breslin, D-Delmar.

In his parting letter, Teitelbaum said he had been planning to step down since former CPI Chairman John Feerick announced his retirement in February.

Teitelbaum, whose resignation becomes official next month, also struck a note of defiance, saying he "unequivocally" denies Fisch's charge that he had leaked information to Spitzer's team.

"I think the investigation establishes that there was a basis for him to step down," Fisch said in response.

Fisch is scheduled to testify today before the Senate Government Operations Committee; he said he planned to ask for an expansion of his agency's role.

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

Last week: A report from the inspector general says the executive director of the Commission on Public Integrity leaked confidential information to the Spitzer administration.

Gov. Paterson said the entire CPI should step down.

Monday: Teitelbaum said he will resign; Paterson proposed a new Government Ethics Commission to take over CPI's duties.

Coming: The governor will finalize plans for a new commission, and lawmakers will have to vote on it.

[Livyjr]

"Skelos is majority leader as GOP reclaims Senate - Two Democrats join Republicans to elect new leader"

By IRENE JAY LIU and RICK KARLIN, Capitol bureau, Albany, New York Times Union

Last updated: 4:06 p.m., Monday, June 8, 2009

ALBANY - Senate Republicans have seized control of the chamber in a leadership coup in which they got two Democrats to join their caucus, a stunning move that could change the nature of electoral politics as well as the end of this year's legislative session.

Dean Skelos was elected majority leaders after Senators Hiram Monserrate, D-Queens, and Pedro Espada, D-Bronx, voted with Republicans to change the leadership of the chamber.

The defections ended Malcolm Smith's six-month tenure as the leader of the senate.

Monserrate and Espada gave the Senate Republicans the 32 votes they need to switch leadership.

The Democrats' hold on the Senate has been shaky since the party won a one-vote majority in November.

Selection of a majority leaders was delayed for weeks as the party cut deals with members to convince them to support Smith.

[Livyjr]

"Senate act brings on the clowns"

By FRED LEBRUN COMMENTARY, Albany, New York Times Union

First published in print: Sunday, June 14, 2009

What do we do here?

Laugh, cry, ignore them?

For the second time in as many years, New York state's political leadership has become an international laughingstock.

We can't even do a coup d'etat right.

Somebody send the Republican Senate leadership down to a banana republic to get the rest of their training.

Some of us even long for the days of the comparatively easy to understand moral challenges of Client No. 9 and Senator Joe.

After a week of the incredible, which is saying something in Albany, the most galling aspect of the coup to topple Democrat Majority Leader Malcolm Smith is that now nobody's in charge and nothing will get done.

We've gone from incompetence to chaos, which even in Albany can't be masqueraded as progress.

What an utter waste of taxpayer money it is to pay any of these clowns in the Senate, Republican and Democrat, if they can't be grown-ups and forge a working Senate to get the people's business done.

Relying on a couple of ethically challenged legislators in a phony "coalition" to do it for them is insanity, and guarantees instability for the rest of the session.

Now, was the dramatic takeover by the maybe new Majority Leader Dean Skelos' Republican rangers deft politics or insufferable arrogance in violation of the electorate's wishes?

That remains to be seen, but the apparent result can't be ignored.

So get over it, Democrats.

You allowed this to happen.

Sometimes you don't know there's a snake in the woodpile until you get bit.

In this case, it came as no surprise, so who was in charge of the care and feeding of the snakes?

Go kick him in the butt, then swallow the bitter pill, and forge a real coalition.

Rensselaer County Supreme Court Justice George Ceresia expressed the growing general public frustration when he said Thursday he would love to throw restraining orders against Senate leaders in both parties.

That was in response to a request by the Democrats to rule against the Republicans.

Wisely, given the separation of powers issue here, the judge decided to stay out of it.

This mess is for the senators to clean up, since they made it.

Once upon a time, the public got so fed up and angry with the self-serving partisan shenanigans of the New York's state Senate done under the shameless cloak of reform that people stormed into its inner sanction, screamed at senators and staff, spit on them and jostled them.

Actually, that would be last Thursday afternoon.

Whenever you hear reform uttered by any of these people, substitute the word power, which is what they really are after.

Republicans have turned loose potent forces here they can't control.

The public is getting riled at the lack of order, dignity and progress on important issues.

You know, dumb stuff like that.

My gut hunch is the billionaire wrecking machine Tom Golisano may have done it this time, but not in the way Golisano or fellow co-conspirator Dean Skelos had in mind.

This may be the final straw that sees a whole lot of rascals thrown out in a year and a half.

Frankly, I wouldn't give a plug nickel for the political futures of any of the players and participants on either side of the coup because they are fast growing into the gang that gave us our second international laughingstock award.

There are bull's-eyes on a bunch of them already, and deservedly.

The only way Skelos could have remotely justified this violent breach of collegiality and order by taking control as he did was to quickly and authoritatively show the public a better report card than the guy he deposed.

That's simply not going to happen.

It's not even clear at this point that the Republican majority, if it holds, can get out of its own muddle and get anything accomplished, even of an ineffective one-house nature.

Certainly not much can be expected in terms of cooperation with the Democratic Assembly.

So even greater paralysis ensues.

A worse scenario than we just experienced with the Democratic leadership in the Senate, which was hampered by inexperience in the ranks right up to leadership and consequently showed an annoying inability to get up to speed on passing bills.

So where does that leave the public?

Who knows?

I certainly don't.

We'll see another dozen turns of the worm before we can answer that, but odds are slim to none that anything productive will come out of the sulfuric fumes of this mess anytime soon.

As for the governor, this is catastrophic.

Odds were lengthening anyway that David Paterson could rise from the dismal swamp of his non-popularity, low poll numbers that to some extent he doesn't fully deserve.

But now he won't be able to show the ripe fruits of his leadership on any meaningful issues, because there aren't likely to be any.

As for Golisano, I should hope this puts to rest once and for all his value to the state's governmental process, which is nil.

He is good only for throwing expensive wrenches into the machinery.

He is either arrogant or naive to a fault.

In the end it doesn't matter which, because the results are the same.

He's moved his primary residence to Florida.

Perhaps he should take an interest in politics there.

His style seems more appropriate to the Sunshine State.

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

[Livyjr]

"Analysis: NY Senate coup a tough bet"

By MICHAEL GORMLEY, Associated Press

Last updated: 12:07 a.m., Sunday, June 14, 2009

ALBANY -- In a week of slick parliamentary plotting, name-calling and threats over who controls New York's Senate after a shocking power grab Monday, one of the most perplexing questions remains: Who do you root for in this mess?[

Do you back the "reform coalition?"

They say they want to end Democratic control of state government and halt overspending and overtaxing.

But one of the first acts by the alliance of all 30 Republicans and two dissident Democrats was to adopt a rule that would prohibit the Democratic conference from duplicating the coup that left Democrats slack-jawed, angry and powerless.

As Blair Horner of the New York Public Interest Research Group notes, the coalition and its 32-member majority could accomplish most or all of its policy objectives in floor votes without seizing the leadership posts, the move that shut down the Senate for at least the past week as the end of the scheduled 2009 session nears on June 22.

Maybe you can root for the dissident Democrats?

They made the apparent takeover possible, scoring a Latino victory by taking the top spot in the Senate and creating unheard of bipartisan leadership.

But their elected Senate president, Democratic Sen. Pedro Espada of the Bronx, has outstanding campaign violations, still faces a $60,000 fine, and his pork-barrel grants are being investigated.

The other dissident, Sen. Hiram Monserrate, faces a felony assault charge.

A court had to step in late Thursday to temporarily bar Espada from the line of succession if Gov. David Paterson left office or went out of state, giving the Senate leader power to pardon himself and Monserrate if convicted.

Six months ago, Republicans wanted Monserrate suspended:

"It definitely takes the institution down," Republican Sen. Martin Golden of Brooklyn said then.

"And we don't need that."

How about rooting for the Democratic conference?

They are just getting their feet, managing a diverse conference.

Under embattled Majority Leader Malcolm Smith, they took some steps to change Albany and end gridlock between the GOP-led Senate and Democrat-led Assembly while advancing progressive causes, including diverting nonviolent drug offenders to treatment instead of prison and, potentially, legalizing same-sex marriage.

Yet, hours before Monday's revolt, the Democratic conference, with just a 32-30 edge, announced it would keep 90 percent of $85 million in pork barrel spending for distribution to their districts.

The Democrats' defense?

That's what Republicans did to us for years.

How about the Republicans?

They said they need power because their upstate and suburban districts were shut out by New York City Democrats who control the Senate, Assembly and governor's office.

But in Albany, with great power come great perks.

Republicans, hating the minority status they hadn't experienced for more than four decades, have sought many ways to return to power since they lost the majority in the November elections.

The Senate majority controls legislation, collects leadership stipends, gets more resources and lobbyists' donations for campaigns, and gets bigger offices and more patronage.

Perhaps rank and file Democrats will save themselves?

Black Democratic senators want a black senator and Latinos want to back Espada and Monserrate.

Supporters of a landmark bill to legalize same-sex marriage are making it clear they might join a coalition if it brings the bill to the floor.

And although the coalition appears to be using the bill as bait to draw supporters, the bill might be voted down, creating a big defeat for the years long effort.

Maybe the activists will cut through the power play?

With screaming supporters behind him in Queens, the Rev. Al Sharpton warned Monserrate not to mess with the Democratic conference.

In Albany Thursday, groups closely aligned with the Democratic conference loudly protested the coalition senators in near mob scene rare even for Albany.

They shouted insults at Republicans, Espada and Monserrate, holding signs like "Senate not for sale," though one of the groups stood to lose $200,000 in pork barrel grants for their programs from Democrats.

How about the governor?

Gov. David Paterson played the outraged statesman by repeatedly condemning the "dysfunction and chaos" that wasted a week of session.

Although he says he's not getting involved in Senate affairs, he doesn't accept that the coalition seized power.

He admits, however, that he has no power to affect who runs the house.

It's odd talk for the head of the state Democratic Party.

It also wasn't the way the last governor faced with a Senate power struggle talked.

In 1965, Republican Gov. Nelson Rockefeller stepped in when Democrats and Republicans couldn't agree on a majority leader in a struggle that featured U.S. Sen. Robert Kennedy and New York City Mayor Robert Wagner.

In the end, Rockefeller got some of his fellow Republicans to switch their votes.

"It certainly worked, at least in the short run," said Robert Ward of the Rockefeller Institute of Government.

"They did get back to business ... one lesson from that is that a powerful governor can have some influence in the Legislature."

Today, both sides say the power struggle must be decided before going back to business.

"There are legislators who probably do believe the only way to change the Legislature is topple the leadership," said NYPIRG's Horner.

"But if you put it all together, it's about power."

------

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

[Livyjr]

"Bold coup upsets Senate - It seemed like a routine day, but a well-planned GOP attack ousts stunned Democrats after a brief stint in power"

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

First published in print: Sunday, June 14, 2009

The overthrow of the state Senate that shocked the Capitol on Monday unfolded with a multitude of people playing critical roles in a drama unparalleled in state history.

The coup was over in short order.

Based on numerous interviews, minutes were like hours for those involved.

Sen. George Maziarz circled Monday, June 8, on his calendar for two important appointments.

He had an anxious feeling waiting for that day.

The Niagara County Republican had been called the end of the prior week by Angelo Aponte, the powerful, micromanaging secretary of the Senate.

Aponte, Democratic leader Malcolm Smith's chief operating officer, asked Maziarz to show up at his office for a meeting at 11 a.m. that Monday.

Maziarz planned to be in the Senate chamber for a session at 3 p.m. to take part in a change of power that had been planned in secret for weeks.

The details were sealed the previous Wednesday, with Maziarz recommending immediate action before word leaked out.

He worried that Aponte had wind of the plot.

It turned out the secretary wanted to discuss the need for civility during chamber debates, noting that Maziarz had gotten a bit personal during budget arguments.

"I shook his hand knowing he had no idea," Maziarz recalled.

He smiled broadly in his office in the Legislative Office Building, much smaller than the one he used his previous 15 years in the Senate, when Republicans held control.

"I knew we were going to catch him off guard."

Sen. Neil Breslin of Bethlehem had Monday scheduling issues, too.

He had accepted fellow Democrat David Valesky's request to switch weeks of duty as chairman of the Senate session.

"I wasn't supposed to be up there," Breslin said later.

Sen. Thomas Libous was on schedule, but he was starting to feel pain.

He upset his cranky back gardening at his home in the Southern Tier.

Known as "Rambo" as a young city councilman in Binghamton who challenged a popular Democratic mayor, Libous had been the choice of Senate Majority Leader Warren Anderson to succeed him in Albany.

In the chamber, Libous' eyes darted to Steve Pigeon and his boss, Rochester billionaire Tom Golisano, seated in the gallery above.

Golisano, who last fall spent $4 million to help Democrats win elections, was an essential partner in the plot.

Libous saw Breslin assume the chairman's post, and thought his luck had taken a hit.

Breslin, a veteran of the chamber and a lawyer for 35 years, took turns officiating with two more junior Democrats.

Either of them presiding, Libous thought, would have made his job easier.

"I'm an observer," Libous said.

"I see who's good on the floor."

"I thought Breslin would have been tougher."

But Libous had been rehearsing and was confident.

He knew he had 32 of 62 votes, including Democrats Pedro Espada and Hiram Monserrate of New York City.

He rose from his Senate seat and asked Breslin for a "privileged resolution" to be voted on at the start of session.

Republican lawyer Adam Richardson delivered the resolution document to Journal Clerk Thomas Testo.

A Republican holdover and state employee since 1976 who is considered excellent at his job, Testo was said to be in his last session -- perhaps involuntarily.

Testo, who had read thousands of resolutions during hundreds of session days, could tell by a glimpse that this one was different.

He took the document as Richardson delivered a copy to Deputy Majority Leader Jeff Klein, an ambitious Bronx Democrat and, as Libous put it, a "worthy adversary."

Klein thought his biggest order of business that day would be the resolution prepared by Aponte identifying the $85 million in member-item grants the senators would hand out in their districts this year -- $77 million for the 32 Democrats, $8 million for the 30 Republicans.

Without looking at Libous' resolution, Breslin directed it be read.

Testo enunciated:

"By senators Libous, Monserrate and Maziarz, providing for the election of Pedro Espada Jr. as temporary president of the Senate and Dean Skelos as vice president pro-tem and majority leader."

As the noise level in the chamber rose, Klein jumped up and asked a halt the proceedings.

Breslin agreed.

Libous argued that he held the floor and would not sit down.

Breslin turned to fellow Albany County Democrat Keith St. John, a lawyer and former Albany Common Council member who ascended to parliamentarian in January when Democrats took over.

Not known for his political savvy, St. John huddled with Breslin and Michael Fallon, the Democrats' top lawyer on the floor and a seasoned legal operative but not considered a wartime consigliere.

Libous demanded a vote to overrule Breslin.

Minutes passed.

When Breslin allowed a vote, every Republican senator, plus Espada and Monserrate, stood to raise their hands.

Klein called for adjournment, Breslin confirmed it and the Democrats fled, not sticking around to see Espada and Sen. Dean Skelos sworn in as the new leaders.

In the huddle, Breslin revealed later, he had asked Fallon and St. John how to get out of the jam.

"I've been a lawyer for 35 years," Breslin said.

"I've been in a courtroom ..."

"You have to react."

Some legal critics say Breslin should have used his gavel to ignore Libous, grant Klein's motion and buy time.

"Ultimately, we can talk and dance," Breslin said.

"Whoever has the majority rules."

Breslin said he did not want to take an illegal route, but Libous caught him off guard.

He said Libous was "devious" in identifying his resolution.

All privileged resolutions are first approved by the majority leader, so he assumed it was vetted.

"I have always assumed that people in the chamber are honorable," Breslin said.

He said he has full faith in Testo, St. John and Fallon, but he believes Libous was a bit underhanded.

Not so, said Libous, Maziarz and a slew of lawyers.

Senate rules did not require prior approval of such a resolution.

"Sen. Breslin just walked into it," said Maziarz.

"There were a lot of unplanned benefits."

He said he wasn't surprised that Breslin let Testo read the resolution.

Last year, Maziarz often filled the president's seat for both Sen. Joseph L. Bruno and Skelos when they were majority leaders.

He said he always let Testo read the resolution immediately.

Together, Libous and Maziarz had sewn up the deal.

It started about two months ago.

Pigeon reached out to Maziarz.

Enough is enough, he said: The Democrats, were making things worse.

Maziarz took the Golisano camp to Libous and then to Skelos, the minority leader.

Pigeon, the Erie County Democratic Committee chairman from 1995 to 2002, knew Espada and Monserrate.

He had gone to the Bronx in December to make sure Espada and other dissident Democrats got behind Smith to secure the Democratic majority.

In the spring, Espada told Pigeon that working under Smith was impossible.

He said Aponte was ordering around committee chairmen, specifically attempting to get Espada to run his Housing Committee with a favorable vote on a bill to control rents in New York City.

On April 28, Maziarz arranged a meeting among Pigeon, Libous, Skelos and himself.

They drove around Albany looking for a place they wouldn't be recognized.

They found Red Square, "a biker bar" Maziarz said.

"I went in, saw people with earrings."

"Headbanger music."

"I went back to the car: 'No one's going to know us here.'"

They hung out for an hour and agreed they would attempt to create a "coalition government" of all the Republicans and as many Democrats who would give them the majority and pledge to improve the Senate.

Republican lawyer Rob Mujica became a central figure.

Mujica, the finance secretary for Skelos, had had his own confrontation with Aponte in the winter.

Aponte wanted Mujica to brief the Senate Democrats on budget issues.

When Mujica suggested that Skelos was his boss, Aponte fired him, although Mujica continued on the Republican payroll.

Mujica, a graduate of Albany Law School and part of the GOP central staff for years, is of Puerto Rican descent and understands the language and culture of Hispanics Monserrate and Espada.

Mujica, with other Republican lawyers, carefully helped lay out the plan.

Senators Kemp Hannon of Long Island and George Winner of Elmira prepared Libous for any pushback in the chamber.

Pigeon and Golisano assured the dissident Democrats that Golisano's Responsible New York, a political action committee fueled with a fraction of Golisano's immense wealth, would back candidates who support Golisano's vision of reform.

It was at Mujica's house that the final details were put together a week ago, including committee appointments.

The planners ran through 15 scenarios as possible responses, and the Democrats reacted with what was the best-case scenario, Pigeon said, because they were ill-prepared.

"Malcolm was an incompetent leader and he proved it on Monday," Pigeon said.

Mujica's home is on Eagle Street.

It was the war room and Republican operatives and senators and representatives of Golisano and Espada were in and out.

Across the street is the Executive Mansion, where Gov. David Paterson sometimes lays his head.

"We wouldn't have even tried to do it with a strong governor," Pigeon said.

"We wouldn't even had considered it."

Golisano had become frustrated with Paterson as well.

Golisano said the Democratic leadership had failed.

It became clear to him when he sought to get Smith to plan a property tax break in the state budget and got nowhere.

It became clearer after the $132 billion budget was passed with an enhanced income tax on wealthy New Yorkers.

He was angered when he met with Smith and the leader seemed more interested in his BlackBerry than in Golisano's message.

"Libous did a great job," Golisano said, warning there's more to do.

"Success only lasts for a moment -- when you achieve it."

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

Coup, then chaos

Monday: Coup takes place, flipping control of the Senate to Republicans and two turncoat Democrats.

Tuesday: The Senate chamber is dark.

Both camps meet privately.

Wednesday: The new "coalition government" cancels its proposed first session one of the turncoat Democrats, Hiram Monserrate, asks for time to woo more Democrats.

Thursday: "Coalition government" unlocks Senate doors and conducts a session without 30 Democrats; Monserrate makes a cameo appearance.

Lawsuit by Senate Democrats begins.

Friday: State judge says he'll rule Monday on the legality of the change of control, but wants parties to work it out themselves.

Saturday: Senate Democrats weigh a leadership change within their conference and consider promoting Brooklyn's John Sampson.

[Livyjr]

"Judge gives Senate opponents until 1 p.m. to resolve issues"

By ROBERT GAVIN, Staff writer, Albany, New York Times Union

Last updated: 10:49 a.m., Monday, June 15, 2009

ALBANY -- Acting state Supreme Court Justice Thomas McNamara has ordered both sides in the war for the state Senate to return to the Capitol and attempt to resolve their differences, or return to his courtroom at 1 p.m.

Meanwhile, Sen. Hiram Monserrate annouced that he was returning to the Democratic conference.

A press conferene is expected later this morning.

Although the judge noted there are "serious and difficult" matters separating Democratic Leader Malcolm Smith and breakaway Democrat Pedro Espada Jr., he said the judiciary has shown a "historical" reluctance to involve itself in legislative affairs.

"I have no problem in providing an answer to the quesiton from a judicial standpoint," McNamara said.

"As a matter of public policy, you guys should work this out."

Democratic attorney Richard Emery -- also a member of the Commission on Public Integrity -- told reporters that a power-sharing agreement seemed to be the only solution absent a ruling from the court.

"It's unprecedented," Emery said of such an arrangement.

"We'll see what develops."

Earlier in the hearing, lawyers for the Senate Republicans offered to introduce DVDs of the June 8 legislative session when the coup that overturned the Senate took place.

Attorney John Ciampoli, representing Espada, said the DVD of the session and a follow-up press conference by Sen. Malcolm Smith "speaks for itself" in showing the session was not over when senators voted on the resolution.

"Why should I care about Sen. Smith's remarks at a press conference?" McNamara replied.

Espada appropriated the role of the Senate's president pro tem a week ago today after the dramatic coup that returned the chamber's 30 Republicans -- joined by Espada and his fellow breakaway Democrat Hiram Monserrate of Queens -- to power after five months of Democratic rule.

As the parties were meeting in court this morning, Espada released a statement acknowledging that Monserrate had informed him he was staying with the Democrats, but emphasized that Monserrate continued to support him as president pro tem.

McNamara heard from both sides on Friday and told them to return to court today to argue their cases.

Moments before entering court this morning, Ciampoli told reporters a large part of his argument was that the dispute should not be handled in a judicial setting.

Asked whether reports that Monserrate is switching sides again would have any effect, Ciampoli would only say, "We have a case to put on."

[Livyjr]

"NY gov demands action in Senate leadership saga"

By MICHAEL GORMLEY, Associated Press

Last updated: 12:05 p.m., Monday, June 15, 2009

ALBANY -- An official in New York Gov. David Paterson's administration tells The Associated Press that the governor will give the Senate until 1 p.m. to arrive at a power sharing agreement, or he will request a leaders' meeting two hours later to forge an agreement.

The administration official says Paterson will inform a judge of his intention at 1 p.m. if the Senate misses his deadline.

The administration official spoke on condition of anonymity because he isn't authorized to make the directive public.

Paterson is taking the action because he says the Senate needs to convene this last whole week of session to pass important bills.

Legislative leaders don't have to attend a meeting called by the governor.