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

[Livyjr]

THE NEW YORK POST

"SPITZER AIDE TO QUIT"

By FREDRIC U. DICKER

June 19, 2007 -- ALBANY - A top aide to Gov. Spitzer who is under investigation for allegedly threatening a Public Service Commission member is expected to quit his job within the next few weeks, sources told The Post yesterday.

Steven Mitnick, the governor's top energy and telecommunications adviser, has decided "to consider other opportunities," possibly in Washington, said a Spitzer administration source.

"He is expected to depart after the IG [inspector general's] report is made public," the source continued.

A spokesman for Inspector General Kristine Hamann, who was asked by Spitzer to investigate the charge, declined comment.

A source, however, said a report was expected in the next "several weeks."

Mitnick did not return a call seeking comment.

Commissioner Cheryl Buley accused Mitnick in April of threatening to have her removed from her job if she didn't back off her efforts to investigate Con Edison's handling of last year's blackout in Queens.

http://www.nypost.com/seven/06192007/news/...c_u__dicker.htm

[Livyjr]

"Citigroup: AMD may partner on NY fab"

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

Last updated: 1:35 p.m., Tuesday, June 19, 2007

Two Citigroup analysts believe Advanced Micro Devices Inc. may be looking to partner with another company on its proposed $3.2 billion computer chip fab in Saratoga County.

They also think AMD, which has been struggling financially, may seek to sell its Fab 30 in Dresden, Germany.

[Livyjr]

THE NEW YORK DAILY NEWS DAILY POLITICS BLOG:

"Prof. Bruno"

Majority Leader Joseph Bruno, pronounced himself "frustrated, exasperated and disappointed" about the lack of substantive movement in the final days of the session, and accused Gov. Eliot Spitzer of disengaging on negotiations - even on issues where the three sides are close to deals, like the Healthy Schools Act, violent video game restrictions and DNA database expansion - in an effort to hold everything "hostage" to his quixotic quest for campaign finance reform.

Bruno offered Spitzer some unsolicited advice on the finer points of his new job.

"The governor was attorney general and he was a prosecutor, and he's used to, apparently, strong-arming, mandating."

"But as chief executive of this state, dealing with 212 legislators, that does not work," Bruno said.

"The way you get anything done is to sit openly, you can sit publicly, and discuss what's important to the people of the state - issue by issue, generally and specifically."

"That's how you create laws."

"That's how you get a budget done."

"That's how you do the important things."

Bruno rejected out of hand Senate Minority Leader Malcolm Smith's idea of sticking around past 5 p.m. tomorrow (the scheduled end of session), saying - as flashbulbs popped and tape recorders caught his every word:

"The one thing I am not going to do is sit here posturing, doing photo ops, as some people like to do, and not getting a result for the taxpayers."

Posted by Elizabeth Benjamin on June 20, 2007 3:01 PM

Comments

Say what you will about Joe Bruno in a lot of other respects, he is dead on the money here with his assessment of how Eliot "STEAMROLLER" Spitzer should be acting in his constitutional capacity as governor of the State of NY ....

If Eliot "STEAMROLLER" Spitzer had not trashed our constitutional processes here in NYS with respect to how the budgeting process was mandated to unfold, we would be exactly where Joe Bruno is correctly saying we would have been if Eliot "STEAMROLLER" Spitzer had abided by his constitutional duties with respect to engaging in a dialogue with the NYS Legislature ...

Eliot "STEAMROLLER" Spitzer's first and biggest mistake, in my estimation, was proclaiming himself as a "STEAMROLLER" who was going to STEAMROLL all over the representatives of the people here in upstate NYS when he didn't have the *** to back up that boast his mouth was making, when push came to shove, as it always does in Albany ......

By making such grandiose claims as this "STEAMROLLER" Spitzer did, and then by failing to back up his words with deeds, Eliot "STEAMROLLER" Spitzer has simply exposed himself to the candid world as another cheap fraud in politics ....

And now, to the people of upstate NY, Eliot "STEAMROLLER" Spitzer has all but disappeared ....

After being exposed as a poindexter and a pipsqueak by Joe Bruno .....

And so .....

Posted by: John Galt | June 20, 2007 6:19 PM

http://www.nydailynews.com/blogs/dailypoli...prof_bruno.html

[Livyjr]

RE: U.S. Attorney Glenn Suddaby mightily agitated by leaks concerning the federal investigation of Republican NYS Senate Majority Leader Joseph "BIG JOE" Bruno ...

http://www.wten.com/global/video/popup/pop...mp;rnd=52308452

THE ALBANY, NEW YORK TIMES UNION CAPITAL CONFIDENTIAL BLOG:

"No, We’re Not Sticking Around"

June 20, 2007 at 3:45 pm by Rick Karlin

So much for Senate Minority Leader Malcolm Smith’s suggestion a few hours ago that lawmakers stick around and work overtime if need be to finish their business after Thursday’s scheduled end to the legislative session.

‘’Should we stay here and look at each other?'’ Sen Majority Leader Joe Bruno replied when asked about Smith’s suggestion.

‘’We’re not going to sit around here, wasting time and posturing,'’ Bruno, a Brunswick Republican said in response to the overtime proposal by Smith, a Democrat from Queens.

Bruno’s remarks came during a brief press conference in the hallway outside his offices and he made it clear that he’s increasingly frustrated with Gov. Eliot Spitzer, whom he accuses of holding up reams of legislation due to the governor’s insistence on campaign finance reform, which the Senate Republicans are resisting.

‘’Everything seems to have slowed down,'’ Bruno said, adding that he is “frustrated, exasperated and disappointed,'’ with what he characterized as Spitzer’s obsession with campaign finance.

“I’m just puzzled,'’ Bruno added, contending that Spitzer, the former Attorney General, is continuing to act like a prosecutor in dealing with the Legislature.

Comments

JOE BRUNO ADDED: “I’m just puzzled,” contending that Spitzer, the former Attorney General, is continuing to act like a prosecutor in dealing with the Legislature ….

JOHN GALT REPLIES: And since Joe Bruno has us on to the subject of prosecutors …

disgustedwithNYS, in all seriousness, the FBI cannot continue to pursue an investigation without the consent and approval of the Office of the U.S. Attorney ….

This we learned the hard way, back in 1989, when the Office of the U.S. Attorney for the Northern District of New York summarily closed down that Hobbs Act Public Corruption investigation in Rensselaer County whose records I quote from in here ….

Later on, after that investigation was closed, in a list of potential federal judicial nominees, we saw the name of the same U.S. Attorney who closed down the Joe Bruno/Hobbs Act investigation back in 1989 as a candidate for a life-time appointment on the federal bench ….

Pay-back is sweet, is it not?

The FBI records from that particular Hobb’s Act investigation reflect the relationship between the FBI and the Office of the U.S. Attorney for the Northern District of N.Y. as follows:

December 9, 1988:

USA’S OPINION - Assistant United States Attorney DAVID HOMER, Northern District of New York, was consulted regarding this matter on November 23, 1988, and suggested that the FBI interview the people specifically mentioned in (redacted) letter in an effort to verify (redacted) allegations.

After these interviews are concluded, AUSA HOMER will render a prosecution opinion regarding this matter.

end quotes

In this case, there was solid evidence of the commission of crimes in Rensselaer County including Class “E” felonies …

There was further evidence that the citizens of Rensselaer County clearly were not getting honest government services ….

And there was solid evidence that Joe Bruno had allegedly violated the law in the State of New York in connection with his Rensselaer County land dealings ….

On June 30, 1989, the FBI records conclude:

UNITED STATES ATTORNEY’S OPINION: Assistant United States Attorney, BARBARA COTTRELL, Northern District of New York, advised on May 1, 1989, that no evidence of any violation of federal law had been uncovered as result of investigation to date.

For this reason, AUSA COTTRELL declined prosecution at this time ….

end quotes

There went the investigation, and all of our evidence that the FBI had taken from us, after intimidating the be-jaysus out of all the potential witnesses who could come forward in this matter, and there began the long, hard ride for the principal investigator in this matter in Rensselaer County who had painstakenly assembled much of this evidence in the first place, and nothing more was ever heard about the matter …..

The principal investigator from Rensselaer County never worked again, the evidence all disappeared, and peace once again reigned in Joe Bruno’s land ….

By closing the investigation in that matter, by saying there is NO EVIDENCE of federal crimes being committed, the Office of the U.S. Attorney is then able to discredit those who were involved in the investigation at the county level in NYS, so that those individuals cannot again come forward with further complaints to the Office of the U.S. Attorney in connection with a continuation of the same practices by the same individuals ….

Thus, people like Joe Bruno are effectively immunized from prosecution by the Office of the U.S. Attorney for the Northern District of New York …

It must be kept in mind that I have several hundred pages of FBI records in connection with that prior investigation, and it started out by looking at allegations of political “shake-downs” in the Town of East Greenbush in exchange for planning board and zoning board approvals, and it expanded outwards from there, and was very thorough and comprehensive, so it isn’t a matter that the FBI and the Office of the U.S. Attorney for the Northern District of New York did not know what was going on here in Rensselaer County …

And once that on-going course of conduct has been branded as “not federal crimes” by the Office of the United States Attorney, the perps then have free rein to continue, since the FBI cannot continue to investigate the same on-going course of conduct without permission from the Office of the US Attorney ....

So that here in Rensselaer County, Joe Bruno and those who are on his list of “protected persons” are all but untouchable ….

And so ….

I guess, disgustedwithNYS, that you might conclude that I think this federal investigation of Joe Bruno, which Joe calls a “media event” is really going nowhere, and I would say that the shepard of that outcome is likely to be this Suddaby dude, keeping in mind that Karl Rove has the power and authority to get U.S. Attorneys fired ….

And so ….

Comment by John Galt — June 20, 2007 @ 5:43 pm

http://blogs.timesunion.com/capitol/?p=4892#comments

[Livyjr]

"Rensselaer Co. timesheet probe ends"

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

Last updated: 5:15 p.m., Wednesday, June 20, 2007

TROY - A Rensselaer County grand jury investigation into allegations that dispatch supervisors falsified times sheets was closed today when the dispatcher who filed the complaint wouldn't waive his immunity, District Attorney Patricia A. DeAngelis said.

Dispatcher Dean Myers sent a letter to the district attorney's office in the fall alleging that time sheets were falsified, according to the district attorney.

"This case comes to an end because of the complainant's lack of cooperation," DeAngelis said in a statement.

"This case was set to be heard by the grand jury to determine if there was any wrongdoing."

"Unfortunately, those who logged complaints of official misconduct by others refused to answer questions of their own alleged misconduct."

Myers and another employee, who was not identified, declined to waive their immunity when they testified before the grand jury, DeAngelis said.

Myers withdrew his request for the investigation, which ended the case, the district attorney said.

[Livyjr]

"Spitzer, Bruno in legislative Albany showdown"

By MICHAEL GORMLEY, Associated Press

Last updated: 4:13 p.m., Wednesday, June 20, 2007

ALBANY -- Gov. Eliot Spitzer, the freshman Democratic reformer banking on record popularity, is facing off against Republican Senate leader Joseph Bruno, an expert navigator of Albany's political waters, in the last two days of the scheduled legislative session.

In the balance are proposals including restricting the influence of campaign donations; a toll proposal for Manhattan to reduce traffic and pollution; as much as $900 million in capital projects statewide; and pay raises for judges and lawmakers.

"Everything is being held hostage, subject to an agreement on campaign finance reform on their terms, the executive's terms," Bruno said Wednesday.

"The governor was attorney general and a prosecutor and he's used to, apparently, strong arming and mandating ... it does not work in government in New York state."

"And if the governor hasn't learned that, he's going to learn it."

Democratic Assembly Speaker Sheldon Silver, leaving a closed-door meeting with Spitzer and Manhattan assembly members, said he was optimistic a deal could be reached with the governor and Bruno on campaign finance reform, New York City's "congestion pricing" traffic plan, and other major issues before Thursday's close of business.

Silver wants changes to the pricing plan proposed by New York City Mayor Bloomberg to charge tolls to reduce traffic and pollution.

The measure is supported by Spitzer and Bruno and could draw millions in federal funds.

Silver was cagey, but said Wednesday he's not sure a July special session to vote on an agreement -- floated Tuesday -- will be necessary.

"Nothing is closed until everything's closed," said Silver.

He disputed Bruno's description of Spitzer as being inflexible and the talks being stalled.

Senate Republicans portray the governor, who campaigned as an Albany reformer, as "obsessed" with producing a win on his campaign finance proposal.

The millionaire governor who can draw donations from Hollywood to Manhattan proposes to cut donations dramatically to limit the influence of money on decisions and spending in Albany.

Bruno, however, opposes some Spitzer provisions including ending what the governor considers a loophole in which companies can form limited liability corporations and contribute 10 times the corporate limit.

Those LLCs are major backers for Senate Republicans, a party fighting to keep the majority over a steadily growing Democratic minority.

The Senate leader will stick by his own campaign finance proposal that doesn't include LLC limits and won't impinge on what Bruno calls free speech, a Senate official close to Bruno said Wednesday.

Spitzer could take that and try to declare a win on one of his major issues, but good-government groups have already criticized the Senate proposal as weak.

If the Albany axiom of "half a loaf is better than none" prevails, campaign finance laws under a long established pattern wouldn't likely be touched again for years.

Good government groups have insisted that now is the best chance in years for significant change.

Although Assembly Speaker Silver said he supports Spitzer's campaign finance proposal, it won't become law without the Senate Republicans' support.

Senate Minority Leader Malcolm Smith on Wednesday called for lifting the session's scheduled end on Thursday, taking the body into next week or longer if necessary.

The Republican-controlled Senate won't go for it.

But Smith's call can be a bit embarrassing publicly for the slim Republican majority and shows Smith's continued alliance with Spitzer, who said much the same thing on Tuesday.

"It's time for overtime," Smith said.

"If it means we have to sit here until September ... so be it."

A trend in Albany negotiations, however, has been that the leaders have about three "blow ups" where talks halt, then compromise is quickly reached.

"I think we'll get agreement on significant stuff, maybe at the last minute," said veteran Sen. Hugh Farley, a Schenectady County Republican.

Still on the table and ripe for a traditional late-session deal with campaign finance are proposals including one that would raise the salaries of lawmakers, commissioners and judges sought by Silver and Bruno; a capital budget critics call "pork" for lawmakers that would fund as much as $900 million for construction projects in legislative districts statewide.

Legislative sessions traditionally come down to wins and losses for leaders in Albany and how they translate to voters and important interest groups.

Spitzer tried hard in last year's election to run up support for what eventually was a record-setting share of the vote and he tries to use that popularity as a tool, often against the Legislature that as a whole has been held in low esteem in polls.

This week's Quinnipiac University Poll, however, gave Spitzer a mixed report.

His personal approval rating is at a high 60 percent and up from April, but only 22 percent of voters think his hard-charging style is working and 42 percent said it contributes to legislative gridlock.

[Livyjr]

"Senate putting power to use - With Democratic governor and Assembly, Republican majority flexing its singular clout in confirmations"

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

First published: Thursday, June 21, 2007

ALBANY -- It was a serious accusation.

Alexander "Pete" Grannis might be perceived as "anti-hunter," according to state Sen. Carl Marcellino, R-Syosset, who heads the Senate Environmental Conservation Committee.

Never mind that Marcellino represents a heavily suburbanized Long Island district; the "anti" tag would stick among upstaters who form a big chunk of the Republican majority in the Senate.

Grannis, a former Manhattan Democratic assemblyman, weathered the storm and was confirmed as head of the Department of Environmental Conservation.

But his confirmation hearing in late March may have set the tone for something new in Albany: Senate Republicans, who confirm the governor's appointments to key positions, are putting more pressure on nominees and questioning them closely since the Democratic governor took office.

It happened again this week when the Senate Commerce Committee grilled Dan Gundersen, Gov. Eliot Spitzer's nominee to head economic development efforts upstate.

Republican Sen. James Alesi, from the Rochester area, blasted Gundersen for living in prosperous Saratoga Springs rather than Buffalo, the poster child for the upstate Rust Belt.

Later that day, committee members questioned Avi Schick, Spitzer's choice to head the Urban Development Corp., a related development agency.

"I find it bizarre that there are two economic development heads," said John Bonacic, R-Mt. Hope.

"Two brains is a good thing," replied Schick, which prompted Bonacic to shoot back, "You are doing a lot of dancing."

To be sure, the nominations of Gundersen and Schick are moving forward and could be confirmed as soon as today.

But the questioning, as well as what some say is the slow pace of confirmations, represents a shift that observers say was predictable.

With a Democrat in the governor's office, following Republican George Pataki's three-term reign, and the Senate now the state's remaining Republican base of power, senators are embracing their confirmation authority with a newfound enthusiasm.

As of Wednesday, with one day left in the legislative session, 83 appointments were pending in the Senate, some dating to February and March.

"It's become much more political this year," said Sen. Jeff Klein, a Bronx Democrat.

"At the same time, I don't think questioning or extra questioning is a bad thing."

Senate GOP spokesman Mark Hansen said senators are simply doing their jobs.

"It's very appropriate to give nominees a hearing and to discuss issues of concern," said Hansen.

Confirmations are one area in which the Republican Senate can exercise some real political muscle, since the Assembly, controlled by Democrats, plays no role in the process.

"You're in the Senate and you had all this clout before," said one insider who was recently confirmed for an unpaid board membership.

"Now they have this," he said of the Senate's confirmation role.

Reasons for confirmation delays, real or perceived, vary.

Richard Booth, a Cornell University professor, is Spitzer's choice to head the Adirondack Park Agency, but Sen. Betty Little, R-Queensbury, has questioned the fact that he doesn't live inside the park, where the agency oversees land-use issues.

"Because of that controversy my appointment has been blocked," Booth said of the situation so far.

Spitzer's nomination of Angela Sparks-Beddoe as chairwoman of the Public Service Commission is also being held up amid charges that the governor's energy advisor, Steven Mitnick, had tried to strong-arm Cheryl Buley, a PSC member and wife of former state GOP lawyer Jeff Buley, on a matter before the commission.

One insider said the state inspector general's investigation of that allegation accounts for the delay in Sparks-Beddoe's confirmation.

The IG's office did not return a call late Wednesday.

In some of the apparently slow-moving confirmations, Spitzer wants to replace well-connected Republicans.

Joe Martens, president of the Open Space Institute, is awaiting confirmation as chairman of the Olympic Regional Development Authority.

He would replace J. Patrick Barrett, a former state Republican Party chairman.

Ed Reinfurt has been running the state's Foundation for Science Technology and Innovation for at least a month and is likely to be confirmed.

But one person familiar with the agency said the Senate is in no rush, since Reinfurt is replacing Pataki appointee Michael Relyea, a former Senate staffer who has maintained close ties to Senate Republicans.

Foundation spokeswoman Jannette Rondo said Reinfurt's confirmation was moving forward, and that delays are "just part of the process."

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

[Livyjr]

THE NEW YORK POST

"GARSON'S FLEETING FREEDOM"

By ALEX GINSBERG

June 21, 2007 -- A Brooklyn judge convicted of taking bribes will have to sit out his appeal behind bars, a judge ruled yesterday.

Gerald Garson was sentenced earlier this month to three to 10 years for accepting cash, cigars, meals and drinks from a crooked lawyer in return for insider advice and referrals on divorce cases.

The cuffs went on, but they came off almost immediately after appeals Judge Edward Carni granted the disgraced jurist a temporary stay.

Yesterday, after hearing arguments from both sides, Carni opted not to extend the stay.

Garson was expected to surrender at Brooklyn Supreme Court next Tuesday, when others nailed in the same probe are scheduled to be sentenced.

Garson lawyer Michael Washor did not respond to a phone call seeking comment.

http://www.nypost.com/seven/06212007/news/...ex_ginsberg.htm

[Livyjr]

"No shuffle to Buffalo for upstate czar - Saratoga Springs is home of governor's nominee, as Senate GOP questions help for ailing areas"

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

First published: Tuesday, June 19, 2007

And when one of Gundersen's main questioners, Sen. John Flanagan, R-Northport, pointed out that the Department of Economic Development is controlled by a public corporation rather than the Legislature, Gundersen reminded him that also was the case under former Gov. George Pataki.

"This is the way, senator, that it's been structured now for a very long time," he said.

Gundersen, who comes to New York after running economic development efforts in Pennsylvania, has been nominated by the Democratic governor as co-chairman of the department, better known as Empire State Development Corp.

THE ALBANY, NEW YORK TIMES UNION CAPITAL CONFIDENTIAL BLOG:

tomtuxman, thanks for keeping the conversation alive in an informative manner ...

And color me old-fashioned here, tomtuxman, but irregardless of what anyone else has done under any other administration in that position that this Gunderson dude is up for, the fact is and remains that if this Gunderson dude has to be confirmed by the NYS Senate for this position, then he has to take an oath himself to the NYS Constitution pursuant to sect. 1 of ARTICLE XIII of the NYS Constitution as follows:

Section 1. Members of the legislature, and all officers, executive and judicial, except such inferior officers as shall be by law exempted, shall, before they enter on the duties of their respective offices, take and subscribe the following oath or affirmation:

“I do solemnly swear (or affirm) that I will support the constitution of the United States, and the constitution of the State of New York, and that I will faithfully discharge the duties of the office of _______, according to the best of my ability” ….

He takes the oath, tomtuxman, and he has to sign the oath, and the signed oath has to be on file for people like me to be able to inspect during normal business hours of government in NYS ..... …

And the oath clearly states that he will faithfully discharge the duties of the office he is going to hold .....

And that doesn’t mean to do the job the same way that this Gargano dude was doing it ......

Or this Tese ..... …

It means according to the NYS Constitution and the laws of NYS .....

And here is where my problems with this Gunderson dude begin ....

Outside of him getting lippy and snotty and mouthy with the members of the NYS Senate ......

Which I thought had him getting above his raising a bit, if you know what I mean ..... …

This Gunderson dude apparently does not know a thing about our Constitution or our laws, which comes as no surprise, given that he is not from here, but is from Pennsylvania, instead, a state with a different constitution and set of laws than NYS ....

And so ....

It’s about OUR government here in NYS, tomtuxman .....

This is not Gunderson’s government, or Eliot “STEAMROLLER” Spitzer’s government ....

It is OUR government, tomtuxman, and they are both our servants, Spitzer and Gunderson .....

That is what that provision of OUR NYS Constitution on the constitutional oath is all about ....

In NYS, the Constitution begins with OUR Bill of Rights ....

When he takes that Oath of Office, this Gunderson dude is swearing to support OUR NYS Bill of Rights .... …

And old-fashioned as I am, I believe that when he swears that oath, this Gunderson dude should be at least as conversant with that document as I am as a NYS citizen, so he should be citing law in these confirmation hearings, and not what somebody else in some other regime here in NYS might have been doing while in that office, especially someone in the Mario Cuomo regime, or the equally bad or worse regime of George Pataki .....

As Eliot “STEAMROLLER” Spitzer said with his own more than ample mouth, on DAY ONE, everything was supposed to change .... …

So now, we should not be hearing from this Gunderson dude that it is going to be more of the same old same old under him that we were stuck with under Cuomo and Pataki ....

And when we allow people like this Gunderson dude to make a mockery of that oath and OUR Constitution and OUR Bill of Rights, then we ourselves are mocking the concept of rule of law in this state .....

And so ....

Comment by John Galt — June 21, 2007 @ 4:04 pm

http://blogs.timesunion.com/capitol/?p=4856#comments

This post has been edited by Livyjr: Jun 21 2007, 02:34 PM

[Livyjr]

"Critical issues on hold in Spitzer, Bruno clash"

By MICHAEL GORMLEY, Associated Press

Last updated: 4:43 p.m., Friday, June 22, 2007

ALBANY -- OK, so if Democratic Gov. Eliot Spitzer is a rich brat too used to getting his way, and Senate leader Joseph Bruno is addicted to Albany's pork, campaign donations and lobbyists, what happens now to the major issues affecting New Yorkers?

"There's been bad blood for a while," said Doug Muzzio, professor of public affairs at Baruch College.

"It has now turned into a full frontal assault on Joe Bruno."

Muzzio said Spitzer has more motivation now to "put it into high gear ..."

"He got mixed results (in the legislative session) and everything didn't change on day one, or month one or session one."

The issue isn't academic.

Bruno, Spitzer and Democratic Assembly Speaker Sheldon Silver agree in concept on some major issues affecting New Yorkers and tried to negotiate others that were derailed in the Bruno-Spitzer blowup Thursday night.

Among them are New York City Mayor Michael Bloomberg's push for a "congestion pricing" plan to put up tolls in New York City to reduce traffic and pollution and draw down $500 million in federal funds; Spitzer's campaign finance reform -- opposed by Bruno -- to reduce the influence of special interests; a pay raise for judges and lawmakers; and a capital construction fund worth perhaps $1 billion over the next several years.

But the Senate adjourned, as scheduled, Thursday night.

Bruno said they will return for a day in July and when needed on specific issues.

So what's next?

Spitzer plans to again hit the road where he scared some legislators earlier this year in sofa chats, often in Republican homes.

He told families about his vision for a brighter New York for their children and said that although their local legislator may be a great guy at the town picnic, he is part of an Albany monolith that Spitzer once said had an aura of unseemliness.

The living room scenes played out in local newspapers and TV stations, and many lawmakers got the message from constituents.

This time his target will be singular: Joe Bruno and his slim Republican majority in the State.

"I will be traveling, probably pretty broadly over the next couple of months, making the point I've been making: That there is a failure to act to do the people's business."

"And I will ask the citizens to inquire of their senators, 'How did you vote on this issue?'"

"'Where were you on June 22?'"

"'Were you at work in the Capitol passing bills that could have changed our life?'"

Bruno has just a 33-29 majority over Democrats in the Senate.

Spitzer outraged Bruno in February when he hired a Republican state senator as homeland security chief, then supported the Democrat in a special election to fill the seat.

The Democrat won.

"I've got to believe Eliot thinks he can knock him out," Muzzio said.

"Let him do whatever he wants," Bruno said of the millionaire governor late Thursday night after he ended the Senate's regular session.

"Our members can take care of themselves."

That's a decidedly bolder take than the GOP Senate had in January and February when the new governor, fresh off a record share of the vote in November, struck fear into some lawmakers when they saw their district was on his schedule.

But some say that's when Spitzer's quick successes, announced shoulder to shoulder with lawmakers of both parties, started to wane.

"That was the honeymoon," said Maurice Carroll of The Quinnipiac University poll, which released a poll last week on Spitzer that shows voters are mixed on how Spitzer deals with the legislature.

Spitzer said he gets along personally with lawmakers, almost all of whom he has met in a series of breakfasts at the governor's mansion in the past two months.

But the softer Spitzer who dropped in on legislative conferences in January may not be seen in Albany again.

"Substantively, that hasn't produced a whole lot," Spitzer said.

"I'm still going to enjoy a chat with members of the Legislature, but we're going to play hardball when it comes to getting bills passed to do the people's business."

"What is guiding me is not based upon what I learned over the last six months," Spitzer said.

"It's something we all know about state government ... something 19 million citizens know, which is that this state Legislature, the Senate in particular right now, does not do its business."

Bruno's staff formally protested Friday when a Spitzer press officer refused to let a Senate staffer attend the governor's press conference, a routine courtesy in Albany.

"Blame the mess on Bruno?" Carroll said.

"That's perfectly fine politics."

"But that's ridiculous."

Bruno said Spitzer "has to transition from spoiling for a fight to negotiating in good faith to get results."

"If you're spoiling for a fight, you'll get one."

"If he wants to, he could be a most unsuccessful governor," Bruno said.

"That's up to him ... honestly, it's sad."

"We had a hell of a start."

Silver wouldn't blame Spitzer or Bruno.

"What's more important is to move forward," Silver said Friday.

"I am confident cooler heads will prevail and real negotiations will take place once we are out of the lime light of the legislative session."

Muzzio said it seems to add up to more evidence that Albany is still dysfunctional, after spending years trying to shed the label.

"My speculation would be lots of people are looking at this saying, 'They're at it again.'"

"We have a new governor and they still can't get it right," he said.

[Livyjr]

"Session crumbles; Sematech survives - Spitzer, Senate feud waylays many deals, though lawmakers may return"

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

First published: Friday, June 22, 2007

ALBANY -- The 2007 regular legislative session expired late Thursday with deals going sour as the governor accused the Senate of trying to push through a half-billion dollar plan laden with pork.

The Senate ended up joining the Assembly in approving $300 million for the expansion of the Sematech computer chip research center in Albany that is expected to bring 450 new jobs.

But it left town without agreeing to add $1.1 million for the Albany school district or $11 million more annually in lieu of taxes to Albany for the state's Harriman office campus.

The Legislature could return, however, within a month.

Gov. Eliot Spitzer refused more than $1 billion in capital spending lawmakers wanted for projects across the state, saying much of it was "fat."

Agreements were few and far between, although both chambers agreed to a bill to end solitary confinement of mentally ill prisoners.

Both also passed a late-arriving bill called the "airline passengers' bill of rights" to require food, water and other comforts for passengers when flights are delayed more than three hours.

One-house bills were passed in volumes, including $350,000 Sen. Hugh Farley, R-Niskayuna, sought for a free medical clinic in Schenectady County.

But negotiations continued almost to the last minute on that money and various other deals that could get sewn up later in the year.

A push to let racetrack casino operators, including Saratoga Gaming and Raceway, keep more revenues from video lottery terminals for marketing seemed ripe for an agreement.

The Senate's bill to keep Bellevue Woman's Hospital open, however, died in the Assembly, blocked by Democratic leaders according to Spitzer's wishes not to unravel the Berger Commission plan for consolidating the state's hospital system.

The fragile relationship between Senate Republicans and Spitzer, a Democrat, fractured as each side blamed the other for a failure to resolve even deals they had earlier shaken hands on, such as Wicks Law reform.

Spitzer said the Senate GOP backed out of agreements because he wouldn't go along with $500 million in funding for capital projects submitted by Senate Majority Leader Joseph L. Bruno, "much of it, if not most of it, pork."

"It was dripping fat; it was a horrendous thing to look at," Spitzer said.

Bruno blamed Spitzer for what he called a ruined finish to what started out as a promising session.

He said deals were impossible because of the governor's "obsession" with achieving a campaign finance reform deal desired by no one other than misguided special interest groups.

He said the governor was holding several issues "hostage" unless he got his way on reforming the political donation process.

Bruno described his capital project list as vital economic development.

Projects include GE Capital's expansion in North Greenbush and construction at Saratoga Performing Arts Center.

Bruno warned that some of the projects, which he wouldn't name, are time-sensitive, and said his list includes opportunities for numerous jobs.

However, Bruno said the Senate will return July 16 and may reconvene numerous times before the year's end because of the list of unfinished business.

Speaker Sheldon Silver, D-Manhattan, was much more upbeat, saying the session had yielded successes to be proud of.

He also said he submitted a list of capital projects worth $500 million, many involving public and private college research centers and construction.

Like the Senate Republicans, Silver refused to make the list public.

Spitzer also wouldn't disclose the lists.

Silver also defended his projects as worthwhile: "I don't use pork, so I don't know pork if I see pork," said Silver, an Orthodox Jew.

"But ... those are not pork."

Individual lawmakers said their desire for capital project money is strong.

Spitzer said he was particularly troubled that pay raises for judges never got done.

Judicial compensation and raises for lawmakers are expected to be on the table when the two chambers reconvene.

The Senate closed down at 10 p.m.

The Assembly went later into the night.

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

Winding it up

On the final day of the regular legislative session, a few agreements happened, but ill-will between Gov. Eliot Spitzer and Senate Republicans killed momentum on several key deals.

DONE:

Extending Power For Jobs: It provides cheap electricity for some employers, but the extension is only one year and doesn't restructure the program long-term.

Banning the box: Ends the practice of putting prisoners with serious mental illness in solitary confinement (may be subject to contingencies to suit the governor.)

Airline passenger bill of rights: Requires airlines who delay flights for more than three hours to provide food, water, clean restrooms and fresh air to passengers.

Pipeline protections: Allows the state to evaluate private owners' security and safety procedures for petroleum and natural gas lines.

Sematech: $300 million for a computer chip research center at the University at Albany for Austin-based Sematech to build its international headquarters.

PUT OFF

Wicks Law reform: Only the Assembly passed it even though the Senate GOP had agreed to a deal to raise the dollar values for public projects requiring multiple contractors.

Violent video games: It would be a felony to sell them.

Healthy schools: Requires more nutritious vending and cafeteria meals.

Paid family leave: Allows up to 12 weeks away from jobs, with employees paying for the benefit through a payroll deduction.

Congestion pricing: Allow New York City to charge to enter Manhattan by vehicle.

Judicial/legislative pay raises: The governor wants to tie this to reforms.

Campaign finance reform: Senate and Assembly have trouble with Spitzer plan.

Article X: Siting regulations for new power plants.

Death penalty for cop-killers: Assembly Democrats won't go along.

Horse racing: Awarding a new horse racing franchise.

Capital projects: Hundreds of millions of dollars for capital project funds.

[Livyjr]

"$300M payout makes the cut - Senate signs off on money for expansion of Sematech facility at UAlbany"

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

First published: Friday, June 22, 2007

ALBANY -- As deal after deal collapsed Thursday on a host of issues, lawmakers did accomplish one major objective: a $300 million bill to expand a computer chip research facility at the University at Albany.

Gov. Eliot Spitzer and lawmakers have been hailing the Sematech expansion as way to help solidify the Capital Region as a high-technology hub, create some 450 high-paying jobs and lure untold more tech firms and investment.

But final passage of the bill was held up in the Senate until the 11th hour, and came after Sematech's head sent a letter warning New York to pass the funding or risk losing the project.

"Based on the definite commitment I received in my last trip to Albany, my board expects that the bill will be passed no later than today June 21," wrote Sematech President and CEO Michael Polcari in an e-mail to top staffers of Sen. Majority Leader Joe Bruno, Assembly Speaker Sheldon Silver and Gov. Eliot Spitzer.

"Failure to do so will put the project in serious jeopardy, with some pushing for alternatives to NYS."

Sematech is the Austin, Texas-based research consortium comprising firms such Intel, AMD, and IBM.

The group has an existing research program at the University at Albany school of nanoscience, focusing on the next generation of computer chips.

While Polcari's letter was addressed to aides to all three leaders, it was clearly aimed at Bruno, who for several weeks has linked the $300 million measure to an additional $300 million he wants for other upstate development projects.

Bruno spokesman John McArdle said the majority leader never came out and said Sematech funding hinged on getting his funding request.

"He said he's not going to hold it up," McArdle said of Bruno.

However, when asked about Sematech earlier this month, Bruno said: "We need a capital plan."

"We have needs all over this state ..."

"When we get a plan done, we'll vote for it and I will pass it in my house."

Ultimately Bruno didn't get the $300 million in additional capital project funds.

But with Bruno earlier assuring Polcari the deal would get done before the Senate left town, the Senate approved the funding late Thursday evening.

In a written statement after the vote, Bruno stressed he hasn't given up on his capital plan.

"While SEMATECH II is an important step forward, I will continue to fight for a broad and comprehensive capital improvement plan that will create new jobs, strengthen our economy and provide new investment opportunities for businesses looking to expand or locate in New York, particularly in Upstate," he said.

[Livyjr]

"Spitzer-Bruno rivalry flares in hall - Spokesmen for Senate majority leader, governor trade barbs about treatment of aide at media event"

By JAY JOCHNOWITZ, State editor, Albany, New York Times Union

First published: Saturday, June 23, 2007

ALBANY -- Amid intense end-of-session acrimony, Senate Majority Leader Joseph L. Bruno's office accused Gov. Eliot Spitzer's staff of barring a Bruno aide from attending a news conference by the governor Friday.

The governor's chief spokesman called the allegation "wildly inaccurate."

The spat punctuated the bitter closing days of the legislative session, underscoring how the Spitzer-Bruno battle had spilled over into the normally collegial relationship among staffers, even those of rival politicians in Albany.

It's long been accepted that various factions in the Capitol send staffers to each other's news conferences.

But on Friday, Bruno's communications director, John McArdle, fired off a letter of protest to Spitzer spokesman Darren Dopp over the ouster of one of the senator's aides, Nick Parrella, from a news conference the governor held with environmental activists and government watchdogs.

Parrella, who regularly attends such events, said he had already sat down when Spitzer aide Paul Larrabee called him out into the hallway and told him, "I know it's a crappy thing to do, but we're not extending our courtesies to you right now," and told him to leave.

McArdle noted that the only other time such a thing happened was in 1992 under former Gov. Mario Cuomo, when press staff for then-Majority Leader Ralph Marino were banned from news conferences.

According to a report at the time, Cuomo was irritated that Marino staffers were taking "incendiary" reports back to their boss.

In response to the ban, Marino staffers began wearing signs that said "banned" and stood outside the governor's office during meetings.

McArdle, then a spokesman for Marino (Dopp worked for Cuomo at the time), reminded Dopp on Friday of the Marino flap and the fact that Cuomo later reversed the policy.

He also recalled a comment Spitzer made during a meeting of leaders earlier this year that the Red Room, where formal news conferences are held, was "my room."

"But as lobbyists and others attend public events there, I would expect that legislative representatives doing legitimate government business not be removed," McArdle wrote.

Dopp, however, said no Bruno staffers have been barred from the governor's news conferences and the account of Parrella's treatment was wrong.

In a letter back to McArdle, Dopp called Parrella "a fine young man," and said he is welcome on the second floor.

Dopp said Parrella was asked only for "a little space and discretion," and told McArdle, "You're overreacting."

Jay Jochnowitz can be reached at 454-5424 or by e-mail at jjochnowitz@timesunion.com.

[Livyjr]

"Spitzer Donor Sees Albany as Presidential Test - Skadden Arps lawyer Doug Dunham says that if reforms succeed, Eliot could be the next Grover Cleveland."

By Azi Paybarah

According to one of Eliot Spitzer’s major contributors, the success of the Governor’s reform agenda in Albany could end up being a test run for something much bigger down the road.

“I can certainly see him being a really viable contender for President if he’s able to get all these reforms through,” said Doug Dunham, a major Democratic fund-raiser who is counsel at Skadden, Arps, Slate, Meagher & Flom.

By Mr. Dunham’s thinking, Mr. Spitzer needs to succeed in his plan to flip control of the Republican-led State Senate to the Democrats.

He would then be able to push through his agenda of reform, and could in turn parlay that into a successful bid for the White House.

http://www.nyobserver.com/20070226/2007022..._newsstory2.asp

"State bills left to wilt - Posturing results in unfinished business awaiting special session"

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

First published: Saturday, June 23, 2007

ALBANY -- As hostilities between Gov. Eliot Spitzer and Senate Majority Leader Joseph L. Bruno soared Friday, the Assembly headed out for a summer break, leaving a mound of work on contentious issues for extra innings in July.

The Assembly got a few things done by staying a full extra work day on Friday, including several deals for localities.

But sticking around a day longer than the Senate mostly meant more one-house bills and negotiations on amendments to prepare for a return around July 16, the day Bruno indicated he will call his chamber back.

Spitzer called the Senate's departure "outrageous'' and blasted Bruno for being more concerned about legislative pay raises and discretionary cash for his members than working out disagreements on campaign finance reform, public authorities reform, power plant siting, Wicks Law reform, brownfields regulations and schools.

"Before leaving, however, senators found time to advance almost $500 million in requests for pork barrel spending,'' Spitzer said.

Bruno responded by calling Spitzer's campaign finance reform program a "millionaire reelection plan'' that would give the advantage to only the wealthiest candidates.

And he knocked some of Spitzer's nominees for key posts, saying one is "reportedly under investigation'' and another's credentials include political fundraising.

He didn't name the nominees.

But Senate Republicans have been casting aspersions on Angela Sparks-Beddoe, Spitzer's proposed chairwoman of the Public Service Commission.

She is a lobbyist for the New York State Electric & Gas Corp. and Energy East.

A state Inspector General's investigation involving a Spitzer aide's alleged intimidation of PSC Commissioner Cheryl Buley has been under way for weeks.

In efforts to shoot down Spitzer's campaign finance reform plan, Senate GOP officials have noted that H. Dale Hemmerdinger, the proposed chairman of the MTA, has helped Spitzer's campaign raise piles of cash.

Assembly Speaker Sheldon Silver, D-Manhattan, said several "missiles'' were being fired in the Capitol but he had no intention of entering the fight.

He also made it clear the Assembly will not pass a bill to exempt Bellevue Woman's Hospital from a law setting up consolidation in the health care industry.

Bellevue is slated to close.

Assembly Minority Leader James Tedisco, R-Schenectady, and Anne Saile, the president of Bellevue, said they've worked out an alternative way to spare the hospital.

A meeting is set with Spitzer's top health advisors Wednesday to discuss uses for the facility.

Spitzer has maintained that altering the plan to close hospitals and nursing homes threatens $1.5 billion in federal funds and has flatly refused to tinker with the law.

Silver said an attempt by Tedisco to pass a bill for $350,000 for a free medical clinic in Schenectady is highly unorthodox and unlikely to be allowed.

The funding, Silver said, represents a "member item'' that needed to be part of this year's budget.

Sen. Hugh Farley, R-Schenectady, was able to get a bill for the funding passed Thursday.

Other Capital Region funding bills were also stalled, although agreements may be struck in July.

One would provide $1.1 million in funds for the Albany School District.

A bill to do that passed in the Assembly, but was not taken up in the Senate.

It would allow the district, operating under a contingency budget, to get a loan that would be paid off over 30 years from the district's cut of lottery revenues.

Mayor Jerry Jennings also is pushing the Legislature for 15 years of payments-in-lieu-taxes from the state for the Harriman State Office Campus.

Bills proposed would give the city $11 million a year or 2 percent of assessed value.

The payments would decline as parcels are sold to private sector investors as planned, sponsors said.

The bill, sponsored by Sen. Neil Breslin, D-Bethlehem and Assemblyman John McEneny, D-Albany, will be ready for passage in both houses in July, McEneny said.

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

[Livyjr]

"Rensselaer Co. timesheet probe ends"

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

Last updated: 5:15 p.m., Wednesday, June 20, 2007

TROY - A Rensselaer County grand jury investigation into allegations that dispatch supervisors falsified times sheets was closed today when the dispatcher who filed the complaint wouldn't waive his immunity, District Attorney Patricia A. DeAngelis said.

Dispatcher Dean Myers sent a letter to the district attorney's office in the fall alleging that time sheets were falsified, according to the district attorney.

"This case comes to an end because of the complainant's lack of cooperation," DeAngelis said in a statement.

"This case was set to be heard by the grand jury to determine if there was any wrongdoing."

"Unfortunately, those who logged complaints of official misconduct by others refused to answer questions of their own alleged misconduct."

Myers and another employee, who was not identified, declined to waive their immunity when they testified before the grand jury, DeAngelis said.

Myers withdrew his request for the investigation, which ended the case, the district attorney said.

THE ALBANY, NEW YORK LOCAL POLITICS BLOG:

"Special prosecutor needed"

June 22, 2007 at 4:39 pm by Kenneth C. Crowe II, staff writer, Albany, New York Times Union

Rensselaer County Legislator Kevin Harrington, a Democrat, wants to see a special prosecutor look into whether time sheets at the county dispatch center were falsified.

Harrington’s comments come after District Attorney Patricia DeAngelis, a Republican, closed the investigation when Dean Myer, a dispatcher, refused to waive his immunity when he testified before the grand jury.

Myer claimed that superivsors in the dispatch center falsified their time sheets.

Myer wouldn’t waive his immunity and DeAngelis closed the case.

“It is incomprehensible that the DA would demand that a whistle blower sign away his immunity from prosecution before testifying before a grand jury."

"A cooperating witness is normally encouraged to testify and, under state law, has automatic immunity,” stated Harrington, a member of the Legislature’s Public Safety & Judiciary Committee, in a release today.

“I can only conclude that the DA did this deliberately and has no intention of allowing potentially damaging sworn testimony to be heard by the grand jury."

"I, therefore, believe that a special District Attorney should be impaneled to review this case and permit the testimony of the whistle blower with the same procedural immunity of any grand jury witness."

"Once given, let the grand jury weigh the credibility of the testimony and act according,” Harrington continued.

Comment

I’m glad you posted this, because I too have been having some real problems with the actions of Rensselaer County District Attorney Trish DeAngelis in this matter of her dropping this investigation ….

With respect to grand juries in the State of New York and Rensselaer County having the authority to investigate these kinds of matters involving alleged mis-use of office by public officials, section 6 of Article I, the BILL of RIGHTS of the NYS Constitution provides as follows:

§ 6. No person shall be subject to be twice put in jeopardy for the same offense; nor shall he or she be compelled in any criminal case to be a witness against himself or herself, PROVIDING, that any public officer who, upon being called before a grand jury to testify concerning the conduct of his or her present office or of any public office held by him or her within five years prior to such grand jury call to testify, or the performance of his or her official duties in any such present or prior offices, refuses to sign a waiver of immunity against subsequent criminal prosecution, or to answer any relevant question concerning such matters before such grand jury, shall by virtue of such refusal, be disqualified from holding any other public office or public employment for a period of five years from the date of such refusal to sign a waiver of immunity against subsequent prosecution, or to answer any relevant question concerning such matters before such grand jury, and shall be removed from his or her present office by the appropriate authority or shall forfeit his or her present office at the suit of the attorney-general.

The power of grand juries to inquire into the wilful misconduct in office of public officers, and to find indictments or to direct the filing of informations in connection with such inquiries, shall never be suspended or impaired by law.

end quotes

THE POWER OF GRAND JURIES TO INQUIRE INTO WILFUL MISCONDUCT IN OFFICE OF PUBLIC OFFICERS SHALL NEVER BE SUSPENDED OR IMPAIRED BY LAW …..

And yet, despite this clear and unequivocal language in OUR Bill of Rights of OUR NYS Constitution which DA Trish DeAngelis swore an oath of office to support, a Grand Jury in Rensselaer County was just deprived of its power to inquire into allegations of misconduct here in Rensselaer County government by REPUBLICAN DA Trish DeAngelis herself on the most flimsy of excuses ….

And I for one must wonder why ….

And the obvious answer is politics ….

And protection of fellow REPUBLICANS ….

And here REPUBLICAN Rensselaer County Executive Kathleen Jimino comes to mind ….

Since it would seem that this buck would ultimately stop at her desk if a Grand jury was allowed to perform its own constitutional duty to us citizens here in Rensselaer County by investigating this matter pursuant to section 6 of Article I of OUR NYS Constitution …

And so …

Comment by John Galt — June 22, 2007 @ 7:47 pm

http://blogs.timesunion.com/localpolitics/?p=373#comments

[Livyjr]

"CDPC: $3M misused by ex-director, state says - State agency implicates Albany psychiatric center's ex-director in misspending of $3M, but recommends no criminal action"

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

First published: Saturday, June 23, 2007

ALBANY-- The former executive director of Capital District Psychiatric Center misused more than $3 million, hiring people for questionable jobs, handing out generous "stipends'' to state employees and running up an expense tab to visit his hometown in Wisconsin with money that was supposed to be used for physician recruitment, according to state Inspector General Kristine Hamann.

But the report, issued this week, didn't find that Jesse Nixon pocketed the money, so it does not accuse him of a crime or refer the matter to prosecutors.

Hamann's office had no further comment on the matter, letting the report speak for itself.

Instead, the report paints a picture of a man who would later tell investigators he had "absolute power'' and used money that should have gone into state coffers as he saw fit.

The report concludes that "Nixon had unfettered access to large sums of money -- most of which rightfully belonged to the State -- which he alone allocated to the benefit of third parties and himself.''

Nixon made news over a decade ago when he pleaded guilty to assaulting a pizza deliveryman and declared bankruptcy twice after accumulating more than $1.3 million in personal debt.

Nixon, who was put on leave and retired in late 2004, could not be reached for comment.

A person who said he was Nixon's stepson -- reached in Milwaukee, Nixon's hometown -- believed the former director was still in the Albany area.

The 160-bed center is one of 27 hospitals operated by the state Office of Mental Health.

OMH spokeswoman Jill Daniels said her agency contacted the inspector general around 2004, shortly after hearing allegations of problems at the hospital.

"When we suspected there was something going on, we were the ones who referred it to the inspector general's office,'' Daniels said.

The report found that OMH "failed to ensure Nixon's compliance'' with state policies and regulations.

Spending oversight has improved, Daniels said.

The nine-page report details numerous findings, but one of the biggest issues regarded rent that a private nonprofit group, the Albany Citizens Council on Alcoholism and Other Chemical Dependencies, paid to CDPC for space in the hospital, on New Scotland Avenue.

In addition to inpatients, CDPC serves about 800 outpatients and works with several groups to coordinate care.

Rent paid to CDPC is supposed to go directly to the state, but the citizens council went 26 years without a lease, the inspector general found.

About $2.8 million was paid between 1988 and 2004, but rather than being in the form of rent, the citizens council paid the salaries of dozens of people Nixon selected or approved and who were carried on the Albany council books "despite performing no services for ACCA,'' according to the inspector general.

These employees were referred to as "rent people,'' by the citizens council, the inspector general found, and their time sheets frequently contained "fictitious hours worked.''

At least one of these employees returned two checks because she ''didn't do anything for the money,'' according to the report.

The report doesn't suggest the citizens council did anything wrong.

Officials from that agency could not be reached Friday.

Additionally, the report said, Nixon arranged with Albany Medical Center for $60,000 in annual rent payments for a psychiatric clinic Albany Med operates at CDPC and used that money to pay for "independent contractors.''

Some of the money went to state employees as "stipends'' beyond their regular state salaries, such as an electrician who picked up an extra $3,500 for electrical work, and a state psychiatrist who received more than $110,000, on top of her $127,212 state salary.

That money should have gone into state accounts as well, said the inspector general.

Nixon himself picked up more than $30,000 a year from Albany Medical College, which designated him an assistant dean.

That was in addition to his state salary, which was $129,555 in 2004.

But any work he did at Albany Med was "part and parcel'' of his state duties, the report noted.

The inspector general also found that Nixon made several trips to Milwaukee and Chicago, where he had family, under the auspices of "physician recruitment,'' although there was no indication he spoke with any physicians.

Further, Nixon was the "sole operator'' of a charity known as The Friends of CDPC, which in 2003 and 2004 collected more than $36,000 from pharmaceutical firms that was supposed to go to educational events.

Instead, the money went to other costs, such as those involved in putting on a concert by jazz musician Al Jarreau, who the inspector general said was a friend of Nixon's.

Some of the money also went to a foundation named for one of Nixon's and Jarreau's high school teachers in Milwaukee.

Investigators also found thousands of dollars in expenses for things like lottery tickets, meals and cocktails.

Workers at CDPC also mowed Nixon's lawn and cut his grass, although he told the inspector general he hadn't asked them to do so..

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

[Livyjr]

"CDPC report headed for DA's office - Action follows Inspector General's review of ex-state official"

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

Last updated: 6:33 p.m., Saturday, June 23, 2007

ALBANY - State Inspector General Kristine Hamann will hand over her investigation of Jesse Nixon's leadership of the Capital District Psychiatric Center to the Albany County District Attorney's Office on Monday, state officials said today.

The referral comes after Hamann reported findings last week of a three-year review of Nixon's handling of the state facility.

She concluded he ran the center as a personal fiefdom and misused state money and resources.

The investigators said he declared having "absolute power" and found he funneled $3 million in public funds to people and contractors improperly.

The Inspector General's report said he steered jobs to favored people, took $30,000 from Albany Medical College to augment his $129,555 salary, expensed personal trips and doled out bonuses without any apparent authorization from superiors.

Steve Del Giacco, a spokesman for Hamann, said Nixon's conduct warrants review by a prosecutor.

"It's been under consideration to provide our findings to a prosecutor, and on Monday we are going to be contacting the Albany District Attorney's office and providing him a copy of our report," he said.

Neither Nixon nor his lawyer could be reached for comment today.

Heather Orth, a spokeswoman for Albany County District Attorney David Soares, said the prosecutor had no comment at this time.

[Livyjr]

"Spitzer advises judges not to sue for higher pay"

By MARC HUMBERT, Associated Press

First published: Saturday, June 23, 2007

ALBANY -- Gov. Eliot Spitzer advised New York's judges not to take their battle for higher salaries into court, calling any such lawsuit "frivolous" and one they would not win.

New York's chief judge, Judith Kaye, has threatened legal action.

"I think it would diminish the level of discourse on that issue," Spitzer told a state Capitol news conference on Friday.

The governor's advice came after he and legislative leaders failed this week to either agree on a raise for judges, lawmakers, and statewide elected officials or divide up the issue and just boost the pay of judges.

Legislative leaders have refused to deal with just the judges' pay while Spitzer has refused to go along with a pay raise for lawmakers unless they agree to his demands for an overhaul of the state's campaign finance law, a demand thus far rejected by state Senate Majority Leader Joseph L. Bruno.

The state's judges and legislators have not had pay raises since 1999.

Kaye has been demanding action by Spitzer and the Legislature and said earlier this year that if they didn't act by the end of the legislative session she might sue them over the issue or try to find some way to raise judicial salaries without going through the governor and the Legislature.

New York's lawmakers are paid a base salary of $79,500 a year, although most get thousands of dollars more for committee or leadership assignments.

Kaye, New York's highest paid state judge, makes $156,000 a year.

[Livyjr]

"Spitzer advises judges not to sue for higher pay"

By MARC HUMBERT, Associated Press

First published: Saturday, June 23, 2007

ALBANY -- Gov. Eliot Spitzer advised New York's judges not to take their battle for higher salaries into court, calling any such lawsuit "frivolous" and one they would not win.

New York's chief judge, Judith Kaye, has threatened legal action.

"I think it would diminish the level of discourse on that issue," Spitzer told a state Capitol news conference on Friday.

The governor's advice came after he and legislative leaders failed this week to either agree on a raise for judges, lawmakers, and statewide elected officials or divide up the issue and just boost the pay of judges.

Legislative leaders have refused to deal with just the judges' pay while Spitzer has refused to go along with a pay raise for lawmakers unless they agree to his demands for an overhaul of the state's campaign finance law, a demand thus far rejected by state Senate Majority Leader Joseph L. Bruno.

The state's judges and legislators have not had pay raises since 1999.

Kaye has been demanding action by Spitzer and the Legislature and said earlier this year that if they didn't act by the end of the legislative session she might sue them over the issue or try to find some way to raise judicial salaries without going through the governor and the Legislature.

New York's lawmakers are paid a base salary of $79,500 a year, although most get thousands of dollars more for committee or leadership assignments.

Kaye, New York's highest paid state judge, makes $156,000 a year.

[Livyjr]

"Rebuilding an upstate empire - Daniel Gundersen outlines three-pronged plan to retain and bring businesses to New York"

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

First published: Sunday, June 24, 2007

Daniel Gundersen uses furniture -- specifically, a three-legged stool -- to describe how Gov. Eliot Spitzer's administration plans to revive upstate with its Renew New York program.

Gundersen, upstate chairman of Empire State Development Corp., outlined the strategy during an appearance at the Capitaland Quarterly breakfast forum, taped June 6 at the North Greenbush studios of WMHT Educational Telecommunications Inc.

He criticized the Empire Zone program of tax breaks and incentives for job creation, blaming a lack of strategy for its ineffectiveness at turning upstate New York around.

"Of the 9,700 companies that currently claim Empire Zone benefits, three-quarters of them are in the upstate region," he said.

Yet job growth has been sluggish or nonexistent.

"The problem we have with the Empire Zone program is that it is not tied to any overall economic strategy," he said.

Gundersen, who is based in Buffalo, is part of an effort to make economic development programs statewide more effective.

While he focuses on problems facing upstate regions, Empire State Development also has a downstate office, headed by Patrick Foye, that oversees development in the Hudson Valley, metropolitan New York City and Long Island.

The Capital Region is on the dividing line.

Gundersen's three-legged stool represents his upstate strategy.

There's the first leg -- preparing upstate New York to compete in what Gundersen calls the "innovation economy."

He cited BAE Systems' announcement in April that it will add 125 jobs at its Johnson City facility, where it already employs 1,300, as an example of creating "the jobs of the innovation economy."

Other examples include International Sematech's plans to move its research headquarters to the Albany NanoTech complex at the University at Albany, and expansion by Corning Inc.

"Leg two is reducing costs," Gundersen said.

"The governor referred to the perfect storm of unaffordability that was driving business out of the state."

Workers' compensation costs have already been cut, and business taxes lowered, Gundersen said.

The third leg is infrastructure investments.

"We must make our upstate communities attractive places to live and work," he said.

Under the more focused strategy envisioned by the Spitzer administration, not every business would benefit.

Gundersen said the state would take an investor's perspective in choosing where to spend its money.

"We need to identify the fastest-growing businesses in our communities and focus on helping them," he said.

Losing those companies would hurt more in the long run than the shutdown of a factory producing outmoded products.

He promised that Empire State Development, which runs New York's economic development programs, "will be at the front lines, finding opportunities, finding deals."

In Pennsylvania, where he served as executive deputy secretary of the state's Department of Community and Economic Development, the retention program "reached out to 10,000 businesses every year," Gundersen said.

Empire State Development would offer help with financing, filling gaps not met by other sources of funding, he said.

Pursuing international opportunities is another part of the strategy.

"One of the major efforts we have is opening foreign markets to upstate companies," Gundersen said.

In Pennsylvania, he led the international business development office.

"Pennsylvania became the No. 1 state for cross-border investments," he said.

While Gundersen focused on the innovation economy, he also said agriculture and tourism are two important industries that needed attention.

"I believe we have not even begun to realize the potential of these industries," he said in response to one audience member's question.

And while he said upstate residents "are ready for this new thinking," the work force also needs to be ready.

"In terms of work force, we need to do a better job of aligning work force strategies with economic development strategies," he said.

While Gundersen mentioned the need for a strategy, one businessman in the audience, entrepreneur Harry Apkarian, said afterward the presentation nevertheless lacked one.

"There was nothing strategic or tactical in solving the problem.

"He didn't use the word 'commercialization' once," said Apkarian, who co-founded Mechanical Technology Inc.

"Tell me how you're going to solve the problem."

Apkarian, who as the first Entrepreneur in Residence at Union College in Schenectady mentors students on their business plans, said he wanted to know how Gundersen would create jobs and keep young adults here.

"I would say, we've got to generate entrepreneurial capital," setting up support centers to help entrepreneurs bring their technology and innovations to market, Apkarian said.

But another audience member, Schenectady County Chamber of Commerce President Charles Steiner, said he liked what he heard, particularly the emphasis on retaining businesses.

"Seventy percent of business growth comes from existing businesses," he said.

"The other 30 percent gets the headlines."

Steiner also supported cost-cutting efforts.

"We're still a very expensive state to do business in," he said.

As for strategy, "he got to some more specifics than just a month ago," Steiner said of Gundersen.

"I think it is coming together."

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