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

"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.

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

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

"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.

"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.

"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.

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

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

"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.

"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.

"$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.

"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.

"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

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

"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.

"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.

"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.

"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.

"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.

NEWSDAY

AP New York

"The 2007 legislative session wins and misses"

June 21, 2007, 11:03 PM EDT

By all accounts, the 2007 legislative session began with historic progress and closed in one of the most disappointing ends of session Albany has seen.

Here's a scorecard on some of the issues:

DONE

Jan. 16 _ Budget reform. The agreement required secretive "member items" to be disclosed before they are put to a vote by the Legislature.

It also creates a way to agree on revenues quickly, ends the long delays of the past when the governor and legislative leaders were unable to agree and provides far more fiscal data to legislative leaders in November.

Jan. 24 _ Ethics and lobbying reform. The agreement created a far-reaching agency to enforce rules governing lobbyists and employees in the executive branch.

It also bans gifts to lawmakers and quadruples the penalties for violating ethics laws.

Feb. 27 _ Workers Compensation reform.

The long awaited reform will save employers $1 billion over several years by eliminating costly lifetime payments for "permanent partial disabilities."

It was expected to be announced Tuesday, according to a legislative official familiar with the deal.

The reform will also save employers 10 to 15 percent or more in payments for workers' compensation insurance in a measure expected to make New York more inviting to companies.

March 14 _ Civil confinement. Under the law, before a sex offender is released from prison, mental health experts will assess inmates to determine if they pose a risk of committing more sex offenses.

A jury will then decide whether the convict is likely to commit future crimes and a judge will rule on confinement or intensive supervision after release.

April 1 _ Budget. A budget agreement eventually was pegged at $123.6 billion with record increases in school spending, record cuts in health care spending, and a record $1.3 billion in property tax relief.

June 14 _ Wicks Law agreement. It would exempt more than half of public construction projects from a decades-old law that protected unions, but drove up the cost of public projects by as much as 30 percent.

UNDONE

Congestion pricing _ New York City Mayor Michael Bloomberg needs Albany's authorization for his plan to charge tolls to reduce traffic and air pollution under a federal pilot program that could bring $500 million to New York.

Campaign finance reform _ Spitzer's proposal would dramatically limit campaign contribution to reduce the influence of money in campaigns and on politics.

Pay raises for judges, lawmakers, and commissioners _ State judges who haven't had a raise since 1999 would get raises already covered in the state budget, and a commission would be created that would lead to the first raises for lawmakers and state commissioners in nearly a decade.

Wicks law reform _ Despite the public agreement June 14, the bill wasn't passed by the Senate.
___

SOURCE: Offices of the governor, Senate majority and Assembly majority.

http://www.newsday.com/news/local/wire/new...egion-apnewyork

NEWSDAY

"AP New York - Legislature session closes without reform, NYC traffic plan"

By MICHAEL GORMLEY, Associated Press Writer

June 21, 2007, 9:58 PM EDT

ALBANY, N.Y. -- In the closing hours of the 2007 legislative session, lawmakers failed to find agreements on an all-or-nothing deal that would include Manhattan street tolls to cut traffic, a tougher campaign finance law and pay raises for legislators and judges.

In the end, Democratic Gov. Eliot Spitzer and Republican Senate leader Joseph Bruno accused each other of holding hostage issues important to New Yorkers for their own pet priorities, resulting in what each called a disappointing late session.

"I think it's sad for the people of the state that the governor establishes a position that nothing happens unless we have agreement on campaign finance" reform, said Republican Senate Majority Leader Joseph Bruno.

He blamed Spitzer for what he called one of the worst endings of a legislative session he's seen.

Bruno said Spitzer had an "obsession" with his campaign finance reform proposal and that the governor required the Senate to approve the measure before he would act on any other issues.

Bruno maintains that Spitzer's plan would target the Senate Republicans' donors and prompt them to lose the majority, resulting in a Democrat-controlled state government.

Spitzer said Bruno was beholden to special interests and their campaign donations, and addicted to pork-barrel spending.

He also questioned Bruno's work ethic.

"We will not take our marbles and run from the field," Spitzer said of Bruno and his Republican majority, who promised to end the legislative session Thursday.

"We will do as we have done every day, which is to continue to work."

Spitzer also accused Bruno of refusing to act on a couple dozen issues discussed in public meetings unless the governor approved nearly $500 million in capital projects _ which Spitzer called "pork, dripping with fat."

The governor also said Bruno reneged on a public pledge to reform an old pro-union measure known as the Wicks law, which drives up the cost of public projects by as much as 30 percent.

"Unfortunately, a lot of the major issues remain on the table," said Assembly Speaker Sheldon Silver, who sided with Spitzer on several major issues.

"We started out the year with a bang but we're going out with a whimper," said Assembly Minority Leader James Tedisco, a Schenectady Republican.

"I don't blame Bruno or Spitzer."

"The Assembly Democrats are the cats who ate the canary."

"They advanced controversial issues such as gay marriage and legalized medical marijuana and debated them for hours while critical issues that affect nearly all New Yorkers like out-of-control property taxes and gas prices, habitual offenders and the Upstate economy received zero attention."

Senate Minority leader Malcolm Smith, a Queens Democrat, said some issues may need more work.

"Why quit now?" Smith asked.

"We were prepared as a conference to go into extra innings and see these issues through to completion, but unfortunately the Republican majority has chosen to cut and run on their responsibilities."

The antagonism Thursday night ended a tumultuous first six months for Spitzer, who was elected with a reputation as a reformer and received a historic share of the vote in November.

After making some major agreements early on to reform the budget process, ethics and lobbying, lawmakers and Spitzer clashed.

The problems arose when governor got the Legislature to agree to help pick a state comptroller.

But when Spitzer's panel of ex-comptrollers failed to include a legislator among its three finalists, the Legislature, led by the Assembly's Democrats, picked one of their own.

Since then, Bruno and Spitzer have feuded, threatening to make the state budget late _ something Spitzer wanted to avoid.

Ultimately Bruno was able to restore part of Spitzer's cuts to hospitals under a health care reform package and Bruno was able to get more funding for school districts represented by Long Island Republican senators.

Thursday's lack of agreement on some major issues may herald a new era in which Spitzer and Bruno said the Legislature will return several times during the year for specific issues.

However, in Albany, issues that are pressing before a deadline can become old news and a low priority once the deadline passes.

Ultimately, Spitzer and legislative leaders couldn't compromise on a state approval of Mayor Michael Bloomberg's plan to use tolls to reduce traffic and pollution in Manhattan.

Albany must give the Bush administration its commitment for the "congestion pricing" plan that will draw about $500 million in federal funds.

Spitzer said the commitment could be made as late as August.

Bruno had sought that agreement on behalf of Bloomberg, a longtime political benefactor of the GOP conference.

No agreement was reached on Spitzer's campaign finance reform measure, which would dramatically limit campaign contributions by special interests and restrict companies' ability to contribute.

"I think the governor has held fast to his commitments that this needs to be real reform," said Barbara Bartoletti of the League of Women Voters.

Good government groups had said this was the best chance for campaign finance reform in decades, because a popular governor was pushing it.

Also dropped, for now, is a bill that would raise judges salaries and create a commission that would likely lead to raises for lawmakers.

Legislators now are paid a base salary of $79,500, but leadership posts and per-diem payments collected by most during session increases their income.

Judges haven't had a raise since 1999 and the state's highest paid judge makes $156,000 a year, less than most of their counterparts in other states and far less than most lawyers in the private sector.

Publicly, the Senate and Assembly sealed agreements on other bills including the nation's first airline passenger's "bill of rights" by a state that would require airlines to provide food, water, clean toilets and fresher air to passengers stuck on tarmacs more than three hours.

Airlines could face fines of $1,000 per passenger for failing to provide the amenities.

The measure follows an eight-hour delay on Valentine's Day at John F. Kennedy International Airport and other incidents including a long delay this week at LaGuardia Airport.

"Quite honestly, it's absurd we have to do a law like this," said Sen. Charles Fuschillo, a Long Island Republican and co-sponsor of the bill.

He said airlines would be required to provide at least a snack, water, ventilated air and working toilets in long delays under the bill.

http://www.newsday.com/news/local/wire/new...egion-apnewyork

THE NEW YORK SUN

"Spitzer, Bruno Battle Over 'Horrendous' Pork"

By JACOB GERSHMAN, Staff Reporter of the Sun

June 22, 2007

ALBANY — The escalating power struggle between Governor Spitzer and the Republican Senate majority leader, Joseph Bruno, has brought the capital to a standstill that threatens to make the Pataki years seem harmonious in comparison.

The strife culminated last night in a complete breakdown in negotiations on the final day of the legislative session that derailed agreements on a swath of high-profile issues and indefinitely put on hold much of the governor's agenda.

Among the victims of the gridlock were Mayor Bloomberg's congestion pricing plan, the governor's proposal to tighten campaign finance regulations, legislative and judicial pay raises, legislation to expand the state's criminal DNA database, a capital spending plan, an overhaul of a costly construction mandate known as the Wicks Law, and Senate confirmations of three SUNY trustees and the chairmen of the Empire State Development Corporation.

All sides, however, agreed that lawmakers would return in mid-July for an extra session in a bid to resuscitate talks.

Emerging last night after rounds of closed-door talks, Messrs. Spitzer and Bruno angrily pinned the blame for the deadlock on each other.

Mr. Spitzer portrayed the 78-year-old Senate leader as an obstructionist wedded to the status quo.

He said Mr. Bruno refused to sign on to many agreements because the governor wouldn't grant him a discretionary capital package worth almost $500 million that Mr. Spitzer described as "horrendous" pork "dripping with fat."

"This is a session that had enormous potential but has ended with … significant disappointment," Mr. Spitzer said at an evening press conference.

"This session did not fail for a lack of leadership or energy or determination in the executive branch of government, but rather because the state Senate would not embrace the agenda to energize government and the economy."

Mr. Bruno accused the governor, a former two-term state attorney general, of acting as a bullying prosecutor and holding hostage many pieces of legislation in order to pressure him into agreeing to a campaign finance reform package that would scale back political contributions across the board and ban money from limited liability companies.

Mr. Bruno said Mr. Spitzer, who has made no secret of his wish to oust Republicans from power in the Senate for the first time in decades, was motivated by selfish political concerns.

"Campaign finance reform is an obsession for some reason that I'm still trying to understand other than it's intended by its content to make New York State a one-party state," Mr. Bruno said at a separate news conference.

Mr. Bruno, who is battling to preserve his party's two-seat majority in the chamber, said the governor's campaign finance propose would "stifle a member's ability to communicate with the public."

He said: "I think it's sad for the people of this state … that the governor establishes a position that nothing happens unless we get an agreement on campaign finance reform."

"… I don't know about you, in your lives when you get up in the morning, do your children, your significant others ask you, ‘What's the status of campaign finance reform?'"

A high-level Spitzer official said Mr. Bruno was willing to accept a more limited campaign finance package but was overruled by his Republican colleagues.

While each leader pointed to specific disagreements, the collapse of negotiations was the climax of a brewing battle between the two feisty leaders fueled by opposing political strategies.

By walking away with little accomplished, Mr. Bruno is able to undercut Mr. Spitzer's famous campaign pledge to "change everything" in Albany and present the governor as an ineffective leader who is ignoring pocketbook issues such as tax relief.

After agreeing to significant concessions in budget negotiations earlier in the year, a move that lawmakers said made him appear weak-willed, Mr. Spitzer seemed to take a tougher stand this week.

Rather than back down on his pledge to rein in campaign finance rules, Mr. Spitzer hopes to come away with a stronger case for removing Republicans from power to present to voters in next year's legislative elections, political observers say.

Although Mr. Spitzer directed his anger at Mr. Bruno, the Democrat-led Assembly also played a major role in blocking progress on key legislation, including approval for Mr. Bloomberg's controversial anti-traffic plan to charge motorists a fee for driving into much of Manhattan and use the revenue to pay for a slew of mass transit projects.

Lawmakers said the Assembly speaker, Sheldon Silver, refused to agree to set up an expert commission that would review the plan and submit an implementation report to the Legislature by February for approval.

Assembly members, many of whom are critical of the plan, feared the commission would make congestion pricing a fait accompli.

Amid the lack of progress, was a piece of good news for New York City consumers.

Both houses passed legislation to eliminate the city's sales tax on clothing and footwear.

Currently, only items costing less than $110 are exempt from a 4% sales tax.

http://www.nysun.com/article/57085?page_no=1

THE NEW YORK TIMES

"Spitzer and Legislature Sprint to Finish Line"

By DANNY HAKIM and NICHOLAS CONFESSORE

Published: June 22, 2007

ALBANY, June 21 — Gov. Eliot Spitzer’s first legislative session was coming to a fractious close on Thursday night, as he and top lawmakers failed to reach agreement on a wide range of issues as they rushed to finish business for the summer.

There appeared to be agreement on a small number of measures.

One required suspects indicted on rape charges to take H.I.V. tests.

Another expanded Family Health Plus, a state-financed health insurance program, to businesses, in the hope of covering more New Yorkers.

The Legislature also was expected to pass a bill waiving the sales tax on clothing and footwear in New York City and did pass another significantly expanding a program in the city that gives tax incentives for building affordable housing, though it was not clear where the governor stood on the issues.

The Senate majority leader, Joseph L. Bruno, the state’s top Republican, said Mr. Spitzer, a Democrat, held up talks on a variety of other issues because he wanted the Senate to accept his sweeping proposal to toughen campaign finance laws.

“Nothing else can move unless it gets done their way,” Mr. Bruno said of the administration, asserting that the governor’s proposal would turn New York into a one-party state.

“That one party wasn’t intended to be Republican, in case anybody was wondering,” he said.

But Mr. Spitzer attributed the breakdown in part to the Senate’s demands for money for projects that he said were “dripping fat.”

He pledged that deals would eventually be reached on other issues, “because one of the things people know about me is that I’m dogged.”

“We will not take our marbles and run from the field,” he said.

The sudden collapse of the negotiations came after it had appeared that agreements were close at hand on a number of significant measures.

After lunch, for example, Mr. Spitzer said he expected an agreement to create a commission to study Mayor Michael R. Bloomberg’s contentious plan to charge motorists to enter Manhattan below 86th Street, an idea known as congestion pricing.

The proposal, part of a broad plan by the mayor to improve air quality and ease traffic, has faced particularly strong opposition from Assembly Democrats, who have raised concerns that the plan would increase traffic in some neighborhoods and hurt poor and middle-income drivers in other boroughs.

The legislation would have created a commission to study how revenue from the program would be used, the impact of traffic on communities outside central Manhattan and ways the rules would be enforced.

It would have also required that the commission submit a report by the fall and that the Legislature vote on it by next Feb. 15.

The city would not be allowed to impose the fee until after that vote.

But the Assembly speaker, Sheldon Silver, said there was “no agreement on anything.”

The mayor, he added, “does not want anybody else’s view considered on the entire issue.”

Mr. Bruno and city officials said they were hopeful the plan could still be salvaged, though it seems unlikely that one would come together in time to qualify for as much as $500 million in federal aid.

The Bush administration has said it could grant the money to New York if it puts the plan in place by midsummer.

All three sides — the governor, the Senate and the Assembly — had also been in broad agreement that the state should start collecting and storing DNA from people convicted of all crimes; currently DNA is collected from people convicted of all felonies and a few misdemeanors.

But a deal was scuttled because the sides could not agree on provisions sought by the Democratic-led Assembly, including creating a commission to investigate cases involving DNA exonerations.

Discussions also apparently collapsed on a plan to bolster oversight of the network of public authorities, like the Metropolitan Transportation Authority and the Empire State Development Corporation, that control much of the state’s debt.

On the H.I.V. testing bill, both Mr. Spitzer and the Republican-led Senate supported the measure, but it had been a subject of contentious debate in the Assembly, where opponents raised concerns about civil liberties and creating a false sense of security in victims if there were a false negative test result.

Michael Kink, legislative counsel for Housing Works, the AIDS service and advocacy group, said, “It’s a misguided measure that actually threatens the health of rape survivors in order to score easy political points.”

But Assemblywoman Nettie Mayersohn, a Queens Democrat who sponsored the bill, said, “What I’m trying to do is make people understand that this is not about civil liberties; it’s about public health.”

The Legislature also approved an expansion of New York City’s property tax abatement, known as 421-a, for developers who include subsidized housing in new buildings.

The legislation, supported by Mr. Bloomberg and the City Council, calls for significantly extending the areas of the city in which developers must make one of every five new apartments affordable to lower-income people in order to take part in the 421-a tax incentive program.

Under the current program, only developers in central Manhattan and areas along the Greenpoint-Williamsburg waterfront in Brooklyn were required to earmark such units to receive the incentives.

The bill appeared to be in some peril on Thursday after the Assembly approved a different version, championed by Assemblyman Vito J. Lopez, a Brooklyn Democrat.

His bill added new neighborhoods where developers must build affordable housing to qualify for the break, including some, like Crown Heights, that have not been reached by gentrification.

His bill would require the subsidized apartments to be made available to families at a lower income level than is currently specified by the law, and would require paying prevailing wages to workers employed in the buildings.

But it would offer a significant concession to Forest City Ratner Companies, the developer of the Atlantic Yards project near Downtown Brooklyn.

Forest City Ratner was the development partner in building a new Midtown headquarters for The New York Times Company.

Under current plans, the 16 Atlantic Yards buildings are to include 2,250 subsidized rental apartments among more than 6,000 condominium and rental units.

Several of the buildings contain no subsidized housing at all, but Mr. Lopez’s bill would allow those buildings to qualify for the tax break so long as the overall complex contains 20 percent subsidized housing.

It also would allow Forest City to offer some subsidized apartments to families with higher incomes than would otherwise qualify under the new law.

Together, the changes have drawn concern from some housing advocates and city officials.

But the Senate approved the measure on Thursday night.

“The city contemplated whether it needed to do this and concluded that it did not, that Atlantic Yards should get a tax break for a building that has 20 percent affordable, but that the condo buildings should pay property taxes,” said Brad Lander, director of the Pratt Center for Community Development.

“It achieves no additional affordability at Atlantic Yards but costs the taxpayers $100 million.”

Michael M. Grynbaum contributed reporting.

http://www.nytimes.com/2007/06/22/nyregion...nted=1&_r=1

NEWSDAY

State/Region

"Spitzer, Bruno play blame game in stalemate"

BY MELISSA MANSFIELD

melissa.mansfield@newsday.com; Albany

June 22, 2007

ALBANY - Last night's legislative session dragged nearer to an end in finger-pointing as leaders were unable, or unwilling, to compromise on key issues.

Though the legislature continued to meet into the night, Gov. Eliot Spitzer and Senate Majority Leader Joseph Bruno blamed each other for the session's lack of final successes.

Spitzer said Bruno (R-Brunswick) held up agreements on reform of the Wicks law, which governs construction of public projects, and other issues, because he wanted $500 million in "pork" projects.

Bruno said Spitzer tied everything to Spitzer's campaign finance reform plan, which Bruno and his caucus approach differently.

The stalemate left the expansion of the DNA database, healthy food choices in schools and a Manhattan congestion pricing plan awaiting resolution.

The legislative session was scheduled to end yesterday.

"This is a session that had enormous potential but is ending with significant disappointment."

"Disappointment because the State Senate is reflecting once again the desires of the status quo and special interests, failing to embrace the opportunity that was presented to them," Spitzer said.

The governor, a Democrat, was displeased that the Senate was going home before resolution.

Bruno said Spitzer caused the freeze on negotiations.

"The governor is holding up a lot of important things to the people of this state, holding all of this from closing because of campaign finance reform," he said, calling the governor "obsessed" with it.

Sources say that earlier in the afternoon an agreement was reached on congestion pricing, but then campaign finance reform, which could have been seen as a quid pro quo for possible legislative pay raises, torpedoed the deal.

Assembly Speaker Sheldon Silver (D-Manhattan) gave an upbeat assessment of the session, pointing to the resolution of longstanding issues such as civil confinement of sexual predators and changes to workers' compensation.

He said the school aid formula was changed to emphasize support for high-needs districts and the growth rate of Medicaid spending was reduced.

"I think it's not a time to talk about blame or recrimination."

"I think this has been a very successful session from the first day that it began, going through the budget, right up to now," Silver said.

He denied that he had agreed to congestion pricing, and criticized Mayor Michael Bloomberg for allegedly not including the City Council in the formulation of the anti-pollution plan.

Others said the talks ebbed and flowed throughout yesterday and Wednesday.

Spitzer met in turns with both leaders.

The governor had vowed there would be no secret three-way meetings, which have been the way deals were struck in the Capitol for generations.

Among the measures adopted was a $300-million increase to the state Environmental Protection Fund, which has been used to preserve open space, combat pollution and promote recycling.

The money is derived from the real-estate transfer tax.

The fund "is the way that we protect the water we drink, the air we breathe and the food we eat," said Sen. Carl Marcellino (R-Syosset), who sponsored the bill with Assemb. Robert Sweeney (D-Lindenhurst).

Lawmakers also adopted a bill from Sen. Frank Padavan (R-Jamaica Estates) and Assemb. Mark Weprin (D-Hollis Hills) allowing homeowners to post signs stating they don't want advertising leaflets left on their property.

Violators would face fines of up to $5,000.

Albany Bureau Chief James T. Madore contributed to this story.

http://www.newsday.com/news/local/state/ny...enews-headlines

THE NEW YORK POST

"ELIOT A 'LOSER' SINCE 'DAY 1'"

June 25, 2007 -- FRESHMAN Gov. Spitzer was the big loser and veteran legislative leaders the big winners as the disastrously unproductive legislative session came to an end Friday, senior officials agree.

Spitzer, who pledged to "change everything on Day One," looked like the proverbial deer in the headlights after his two most important final initiatives - congestion pricing in New York City and campaign-finance reform - were summarily rejected by Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Majority Leader Joseph Bruno (R-Rensselaer), respectively.

Some insiders saw the loss to Silver on Mayor Bloomberg's congestion-pricing scheme as the more embarrassing, because Spitzer seemed to have turned his new administration into an extension of City Hall.

"Spitzer came away looking like the governor of New York City, carrying Bloomberg's water," said a source close to Silver.

"After all he promised to do for upstate New York and ending gridlock at the Capitol, he wound up sounding like Bloomberg North."

Spitzer vowed during his campaign last year to end Albany's notorious dysfunction - but it appeared at session's end to be as bad as ever.

"This is the most dysfunctional that I've ever seen it, and I've been here a lot of years," observed Capitol lobbyist Lester Shulklapper.

A senior Spitzer aide claimed Bruno initially agreed to back the governor's campaign-finance-reform plan after receiving assurances that billionaire Bloomberg would make up any lost campaign contributions the plan would impose on Senate Republicans.

If true, such an arrangement - which the aide claimed fell apart after other GOP senators rejected it - could violate several anti-bribery sections of the state Penal and Public Officers Laws prohibiting the offer of a financial reward in exchange for a vote, legal experts said.

fredric.dicker@nypost.com

http://www.nypost.com/seven/06252007/news/...c_u__dicker.htm

THE NEW YORK TIMES

"For Lobbyists, This Campaign Is Personal"

By RAY RIVERA

Published: June 25, 2007

These are hard times for lobbyists, at least when it comes to public perception.

The City Council is moving to limit their campaign contributions.

Some top aides to Gov. Eliot Spitzer are letting it be known that hiring a lobbyist might not help one’s case in Albany.

Even the movies portray them as soulless influence peddlers.

So these days, when some of the most powerful lobbyists in New York City get together in private, they talk about the insults they are hearing and attacks they are feeling from all sides.

Some have suggested banding together to change their image, to spread the word that they are not bad people.

Perhaps even ... hire a lobbyist.

“I think the problem is the public image,” said Sid Davidoff, one of the elders among the lobbying elite.

“If you don’t address it, then you’ll never change it.”

Mr. Davidoff said a small group of lobbyists had been meeting informally for years, usually over breakfast or lunch.

But as discussions between the Bloomberg administration and the City Council heated up over new campaign finance legislation — which, among other measures, would reduce contributions from lobbyists and others who do business with the city — the group began thinking seriously about creating a trade association to speak on its behalf.

The central message: Say what you want about lobbyists, but try running a government without them.

Mr. Davidoff, whose clients have included Donald Trump, McDonald’s and the city’s largest firefighters union, stopped short of saying that the association, if it is formed, would hire a lobbyist.

But for people who prefer to operate behind the scenes, it makes sense, he said, to have a “representative who can do a better job of educating the public, the press and even, when necessary, public officials.”

City Hall and Albany have put the squeeze on lobbyists in the last few years.

The gifts, dinners and endless bar tabs that made lobbyists popular with lawmakers have been curtailed, and Mr. Spitzer has created a panel to look at further changes.

As if their craft had not been tarnished enough by the likes of Jack Abramoff and movies like “Thank You for Smoking” and Michael Moore’s new “Sicko,” lobbyists say that now they have to contend with a City Council proposal that suggests the work they do is underhanded.

The Council will soon vote on legislation that would reduce the amount lobbyists can donate to political campaigns by 90 percent.

“It’s demeaning,” Martin J. McLaughlin, co-founder of Connelly & McLaughlin, one of the city’s top 10 firms by revenue, said of the proposal.

“We’re being singled out like we’re some kind of pariahs.”

Even as the city moved forward on its legislation, lobbyists were irked by a recent item in The Daily News reporting that some top aides in the Spitzer administration were less than enthusiastic about meeting with them.

Anthony E. Shorris, the executive director of the Port Authority of New York and New Jersey, will not meet with lobbyists at all, said his spokesman, Stephen Sigmund.

Such is life in an industry whose members have grown used to “political cheap shots,” as Norman Adler, president of Bolton-St. Johns, another top 10 firm, put it.

“Very few mothers want their 5-year-old daughters to grow up to be lobbyists, so it’s not like it’s a field that has ever got a lot of respect,” he said, adding, “On the other hand, when people get in trouble with government ....”

Mr. Davidoff said a formal association would make it easier for the industry to react to attacks.

It could also help shape reforms, he said.

Interest seems to be catching on.

About a dozen industry professionals attended a meeting six weeks ago at the Regency Hotel on Park Avenue when the topic was introduced, a meeting first reported by Crain’s Insider.

The number nearly doubled when the group met again three weeks ago at Mr. Davidoff’s offices.

He would not say who attended.

But a who’s who of the city’s most powerful lobbyists, including Suri Kasirer, Claudia Wagner and Mr. McLaughlin, turned out, according to others who attended.

Mr. Adler said he was not sure he would join the proposed lobbyist association.

“I have to take it up with my colleagues and see,” he said.

“But I mean, they’re right, there are things that are being done in legislation and in administrative decisions that are inimical in the lobbying field."

“And lobbyists have their hands tied because, you know, the people who are doing it are the people who we hope to get to listen to us, so you can’t be knocking somebody on Monday and then on Tuesday say, you know, we have a story to tell.”

His point was illustrated recently when the City Council held a hearing on the campaign finance bill.

Several lobbyists attended and others milled outside, but when it came time to tell their side, none testified.

For all of the bad press that lobbyists get, it does not seem to be hurting business.

The city’s lobbyists pulled in $44 million last year, an 18 percent increase over the year before.

Even government watchdog groups say lobbyists play an important role.

Many come into the business after years in government, using their experience and connections to help elected officials understand complex issues and to help private citizens, companies and nonprofit groups cut through red tape.

“If you had a tax issue with the I.R.S., would you go in without a tax specialist?” asked Mr. Davidoff.

“You wouldn’t."

"You’d be walking into a lion’s den."

"It’s the same thing with the city or state government; you reach out for experts.”

The problem comes when money paves the way to access.

Or appears to do so.

“Pay to play is somewhat atmospheric, in the sense that it has an appearance that the public assumes is corrupt,” said Richard D. Emery, a Manhattan election lawyer who sits on a panel advising Mr. Spitzer on government reforms.

“It’s also about the atmosphere of elected officials needing to be available to people who give them campaign contributions, because they’re dependent on those contributions for their political survival, and lobbyists who are dependent on the politician for their business."

"It has sort of a wink and a nod acceptance to the corruptness of it.”

The city’s campaign finance bill, advocates said, would help root out not only undue influence, but the appearance of it.

In that sense, the legislation has something in common with lobbyists: it is dealing with an image problem.

http://www.nytimes.com/2007/06/25/nyregion...amp;oref=slogin

THE NEW YORK SUN

"Spitzer Plans 'Shaming Tour' Against Bruno - Goal Is a Democratic Senate"

By JACOB GERSHMAN, Staff Reporter of the Sun

June 25, 2007

Governor Spitzer will use last week's meltdown of end-of-session negotiations as the basis for a new assault on the Republican majority in the state Senate and its leader, Joseph Bruno, advisers close to the governor are predicting.

These advisers close to Mr. Spitzer, who is a Democrat, say last week's recriminations between Messrs. Spitzer and Bruno concerning the collapse in talks may be the prelude to a more open and caustic political battle over the fate of the Senate, which has been under Republican control since 1965 and under the leadership of Mr. Bruno since 1994.

In a strategic move that could dominate the second half of his first year in office, Mr. Spitzer is likely to intensify his fund raising and candidate recruitment effort to advance his goal of turning the Senate over to Democrats in 2008, advisers said.

The administration hopes to use the added political pressure on Mr. Bruno and his conference as leverage to force him to cooperate with the administration's agenda, including enacting tighter campaign finance rules.

"The fourth man in the room is the fact that Bruno's majority is under siege," a top adviser to Mr. Spitzer said.

The Republicans now hold 33 seats in the Senate to the Democrats' 29.

The escalation could begin as early as this week.

Mr. Spitzer has plans to visit the local districts of a number of Senate Republicans and make speeches singling out the lawmakers for blame — a "shaming tour" similar to his trips around the state in February, during which he attacked Assembly Democrats for defying him by choosing one of their own members, Thomas DiNapoli, to fill a state comptroller vacancy.

Senate Republicans are hoping that last week's impasse, which sunk deals on a variety of major pieces of legislation, including a campaign finance overhaul, the approval of Mayor Bloomberg's congestion pricing plan, a discretionary capital budget totaling hundreds of millions of dollars, a new power plant siting law, and an overhaul of a costly public construction mandate, would serve as a bitter lesson to the governor about the penalties for threatening their majority.

After closing out the legislative session on Thursday, Mr. Bruno, in a conversation with a handful of reporters lashed out at Mr. Spitzer with some of his harshest language.

"He could have had one of the most productive years any governor ever had in this state in his first year," Mr. Bruno said.

"He elected to go political."

"That's what happened."

"He went totally political."

"Politicized everything."

"Stopped governing and got obsessed with the politics of, I don't know, taking over."

"It's sad."

The 78-year-old leader offered advice to his 48-year-old adversary: "If you're spoiling for a fight you'll get one."

"But as a chief executive, getting into a fight doesn't get you a result."

"That's a transition that this governor hasn't made yet, and I hope he does."

Mr. Spitzer's strategy poses significant risk for a governor who has come under criticism from lawmakers, including members of his own party, for intemperate dealings with the Legislature.

By making a case against the Republicans and for electing Democrats into the Senate, Mr. Spitzer runs the risk of making the bicameral Legislature into a unified force that could counterbalance his own power, even if the broader public interprets his argument as an admirable call for more responsive government.

Many Assembly Democrats say the governor's furious reaction to their selection of Mr. DiNapoli hurt Mr. Spitzer by alienating lawmakers who could have been strong allies pushing for his agenda.

Mr. Spitzer has since sought to repair his relationship by meeting with delegations of Assembly Democrats for a series of casual breakfasts in the governor's mansion.

The Democratic speaker of the Assembly, Sheldon Silver, a low-key politician who for the most part has stayed on the sidelines during the feud between the governor and Mr. Bruno, is urging the two leaders to get along.

"Everybody understands they are partners in government," he said on Thursday night.

"They can't accomplish things without each other, and that's the way it has to work."

For Mr. Spitzer, the advantage that could be gained through a Democratic takeover in the Senate is hard to resist.

The administration hopes that once in power, Senate Democrats, who have been the governor's most loyal base of support in the Legislature, would fast-track legislation that is now blocked by Republicans and give him an edge in negotiations with the Assembly.

Some political observers say, however, that an empowered Democratic conference enjoying the resources of majority status would no longer be as dependent on the governor for fund raising and organizational assistance and therefore would become less accommodating.

In interviews, top Spitzer administration officials said the governor's combative relationship with the Senate hasn't prevented him from chalking up successes in his first six months.

They cite as examples legislation overhauling the workers' compensation system that is expected to raise weekly benefits while saving businesses more than $1 billion in costs once the new rules are implemented; the enshrinement of a new school aid formula that directs more money to lower-income districts; an ethics package that prohibits gifts from lobbyists, and a restructuring of Medicaid so that state dollars flow more directly to patients instead of hospitals.

"It's not the job of the governor to be liked," said Martin Mack, a former mayor of Cortland who worked under Mr. Spitzer for eight years when the latter was attorney general and is now the governor's deputy secretary for intergovernmental affairs.

"He certainly doesn't spend his time deciding what he should or shouldn't do so they'll like him or not like him."

Mr. Mack said the governor was "bringing the same philosophy" to issues like campaign finance laws that he brought to his investigations of Merrill Lynch and other Wall Street firms.

He said the governor is emphasizing the "need to make these structural changes."

"Does it make people unhappy?"

"Yes, it does make people unhappy."

"Those people, more than anything, object to the fundamental structural change, whether it's health care, whether it's education… election reform, or ethics."

A senior Spitzer official on Friday said the implosion of negotiations last week demonstrated the difficulty of working with Mr. Bruno and Republicans, who were resistant to the governor's campaign finance proposal while trying to secure from the governor hundreds of millions of dollars in discretionary capital funds.

"We knew our own mind."

"We knew exactly how far we were willing to go and no further."

"We knew our opponent's mind."

"We knew what it would have taken to get a deal done."

"There's no sense this morning of buyer's remorse," the official said.

"They thought we would be willing to … give away the store when it came to spending."

"In return for that, we would get something that wouldn't be meaningful campaign finance reform."

Said the official: "They will come around on at least some of the issues."

"They won't like the perception that they have blocked progress."

"It requires at some level a willing partner."

http://www.nysun.com/article/57201?page_no=1

"Power Authority official admits theft"

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

Last updated: 12:01 p.m., Monday, June 25, 2007

ALBANY - The New York Power Authority's deputy counsel resigned today after admitting he stole more than $21,000 in benefits by claiming his ex-wife on his health insurance policy after their divorce.

Carmine J. Clemente, 64, of Albany, who had been at the authority for more than 10 years, pleaded guilty to a misdemeanor under a plea agreement that will spare him any time in prison.

He must pay more than $34,000 in fines and restitution and can never work for the state again under the agreement, according to state Attorney General Andrew Cuomo's office, which handled the case with state Inspector General's office.

From March 2000 to last December, Clemente had claimed he was married to Hermina H. Clemente, making her eligible for health insurance and other benefits from the Power Authority and Capital District Physicians Health Plan, but officials said Clemente and his wife divorced March 15, 2000, disqualifying her for the benefits.

The benefits are granted under a CDPHP program called "FlexAbility,'' in which employees get a yearly fixed credit amount depending on the size of their family.

The benefits which cover health, dental coverage and eye care are "substantially greater'' than a single person's provider would be, officials said.

By listing his ex-wife, officials say Clemente got more benefits than entitled.

Clemente declined to comment when swarmed by reporters outside City Court, where he pleaded guilty to second-degree scheming to defraud.

Had he gone to trial, he faced insurance fraud charges that could have carried up to four years in prison.

His attorney, James Long, said Clemente only realized the problem when he took his ex-wife to CDPHP to get benefits for a surgery for her and learned she was no longer on his policy.

"Nobody approached us and said, `You made a mistake,''' Long said, noting his client was never approached to resolve the matter civilly.

Long called it "getting out of control'' to consider the crime a public integrity issue.

"People make mistakes,'' Long said.

Clemente, who remarried in 2003, agreed to pay 13,046.83 to the state, $8,430 to CDPHP and a $13,000 fine, officials said.

"Region's home sales slowing - Closings dropped 16 percent in May as hot market cooled off"

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

First published: Tuesday, June 26, 2007

More evidence of a slackening real estate market came Monday, both locally and nationally.

The Greater Capital Association of Realtors Inc. said closings on single-family homes in the Capital Region dropped 16 percent in May when compared with the same month one year ago.

Meanwhile, the National Association of Realtors said sales of existing single-family homes and condominiums dropped in May by 0.3 percent to 5.99 million units, the slowest sales pace since June 2003.

Taken together, the numbers confirm what real estate agents and brokers have been saying for months: The red-hot real estate market of recent years is done and gone.

But in the Capital Region at least, the value of homes is not dropping.

Colonie-based GCAR said the median price for homes sold in May was $191,000, compared to $185,000 a year ago.

The association's numbers reflect sales in an 11-county region.

Yet the drop-off in closed sales was steep in all but one of the Capital Region's four core counties: Sales fell 19 percent in Rensselaer County, 17 percent in Saratoga County and 16 percent in Schenectady County.

Albany County, meanwhile, saw a 6 percent drop.

Realtors cautioned against overreaction.

James Ader, GCAR chief executive, said the May numbers were being judged against years of record sales.

And Kevin Clancy of Clancy Real Estate in Altamont described the Capital Region market as very active, adding that homes priced below $250,000 can still sell quickly.

"It's just back to a normal market," Clancy said.

"There are still a lot of buyers out there."

Overall this year, closed sales in the Capital Region are down 7 percent compared to 2006.

And the 3,394 sales that closed through the end of May represent the slowest pace since 2004, when 3,375 homes were sold in the five-month period.

The median sales price, meanwhile, is up 2 percent for the year, to $188,000.

That increase contrasts with the national picture.

The National Association of Realtors said the median sales price in May was $223,700, down 2.1 percent from a year ago.

It was the 10th month in a row that prices declined, said NAR, the longest such stretch on record.

"Rensselaer GOP sees continued strength"

Albany, New York Times Union

First published: Friday, June 22, 2007

Finding Republican redoubts after the Democrats tightened their grip on state government last year is becoming challenging.

The GOP remains a force in Rensselaer County preparing for local elections, worried what cash and influence might be coming out of Albany now that Gov. Eliot Spitzer is on the second floor at the Capitol.

On June 28, state Chairman Joseph Mondello will be in Troy to rally the troops at a $75-a-head fund-raiser at the Franklin Plaza.

Mondello hails from Nassau County, which is famous for its Republican machine, although it has not been enjoying a good run on Long Island.

Rensselaer County GOP Chairman Jack Casey is promising good things despite the "onslaught of Democratic liberalism" in both the upcoming 2007 local elections and the 2008 presidential year.

Casey wants everyone to know whose turf Rensselaer County is.

"Under the leadership of Senator Joseph L. Bruno, Rensselaer County remains a Republican stronghold," Casey said, "and we will turn out in force to welcome our state chair as he shares his vision for the future and recognizes the value of grass roots organization."

Committee Democrat upset

Over on the other side of the aisle, Tom Wade, who became the sole chairman of the Rensselaer County Democratic Committee last year, promised at the time to shake things up and make changes.

Archie Robinson, the former Democratic voting machine custodian, isn't happy with Wade.

Robinson supported former co-Chairman M. Lynne Mahoney's losing run at the chairmanship.

Robinson is upset by what he claims is Wade's attempt to force contributions from him and other Democrats in county patronage jobs.

The Democrats have just seven patronage positions in the Republican-dominated county government.

"I always give my share for everything."

"I don't like to be told to give," Robinson said.

Wade said he never told Robinson to donate.

"For generations, political patronage has been used to raise money."

"Democrats who hold patronage positions have always been expected to contribute," said Wade.

"The only letter I sent out was to our mailing list, a thousand people," he said.

Kenneth C. Crowe II and Leigh Hornbeck contributed to this week's column.

"Warren County prosecutor fired - Assistant DA is second in region this week to lose job after DWI charge"

By LEIGH HORNBECK, Staff writer, Albany, New York Times Union

First published: Wednesday, June 20, 2007

QUEENSBURY -- A Warren County prosecutor has been fired after being charged with drunken driving over the weekend.

Assistant District Attorney Jeffrey L. Ferguson, 53, allegedly had a blood alcohol level of 0.22 percent -- almost three times the legal limit of 0.08 -- when he was pulled over on Route 40 in Hartford, Washington County, by a state trooper.

"Mr. Ferguson and I have spoken, and we mutually agreed he can no longer work in this office," said Warren County District Attorney Kate Hogan, who dismissed Ferguson on Monday.

Ferguson is the second area prosecutor to be fired after being charged with driving while intoxicated over the weekend.

Albany County prosecutor Joseph Meany was arrested early Saturday after police say he crashed into two parked cars and registered a blood-alcohol level of 0.24 percent.

District Attorney David Soares fired him Monday.

Ferguson worked for Hogan for two years.

Because of his accrued leave time, his last day with Warren County technically won't be until mid-July, but he is no longer working as a prosecutor.

"He was a very good attorney, and I appreciate what he's done for this office," Hogan said.

According to State Police Sgt. Daniel Symer, a trooper stopped Ferguson because he was driving erratically just before 10 p.m.

In addition to being charged with DWI, Ferguson was also charged with failure to keep right and failure to have his car inspected.

Ferguson's lawyer, Peter Gerstenzang, declined comment.

"12 staffers laid off at the Daily Gazette - Newspaper cites difficult business conditions for need to eliminate jobs"

By DAVID FILKINS, Staff writer, Albany, New York Times Union

First published: Friday, June 22, 2007

SCHENECTADY -- Twelve employees were laid off by The Daily Gazette Thursday because of what General Manager Dan Beck called difficult business conditions.

The laid-off employees worked in various departments, including editorial, advertising, circulation and production.

Longtime newsroom employees let go included basketball writer Steve Amedio, Albany municipal reporter Mary Martialay and photographer Hans Pennink.

"It's a difficult time in the economy," Beck said.

"This is unfortunate and difficult."

"At the same time we're proud of our 100-year history in serving the public and will continue to do so."

The independently owned newspaper debuted in 1894 and covers Schenectady, Albany, Rensselaer, Saratoga, Fulton, Schoharie and Montgomery counties.

Like many newspapers throughout the country, the Gazette has seen its circulation drop over the last two decades.

An Audit Bureau of Circulations report released earlier this year listed daily circulation at 48,585 and Sunday circulation at 48,593, down more than 20 percent from 1991, when 20 employees were released because of what management called revenue problems.

Amedio, the Siena College basketball beat writer, said he wasn't too surprised at the announcement considering industry trends.

"I've seen the sports staff gutted since I came here in 1990," he said.

"We've lost six or seven full-time guys in that time ...."

"Sure, I'm upset I lost my job, but I've been treated well."

"I'm 54 years old and have some money socked away."

"I'll be fine."

Employees were given four weeks' severance pay.

Beck said vacated positions won't necessarily be filled and that a plan has been devised to either change how certain beats are covered or to spread work among remaining employees.

"Bank's deal with WGY raises concerns - Media experts claim studio sponsorship has potential to create a conflict of interest"

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

First published: Thursday, June 21, 2007

At WGY (810 AM), the declaration comes at the top of every hour: "Your news. Your talk. From the Capital Communications Federal Credit Union studios."

The announcements, which began earlier this month, result from an agreement between the credit union and the radio station.

For one year, Capital Communications owns the naming rights to the station's studios.

"We thought it was somewhat unique," said Judy Vopelak, marketing director at CapCom, as the Colonie-based credit union is known.

"And in marketing, you always have to find ways for your name to stand out and have it mentioned when people don't expect it."

But to some, the arrangement suggests a problematic blurring of the traditional divide between news and advertising.

Most news outlets depend on advertising for revenue.

And some media organizations have business arrangements with institutions they might report on.

The New York Times Co., for example, owns a share of the Boston Red Sox.

And the Times Union purchased naming rights for 10 years to Albany's downtown sports and entertainment arena.

But observers say it's rare for news organizations to have advertisers sponsor the physical space where news is produced.

"There's an immediate question of a conflict of interest," said William Rainbolt, director of the journalism program at the University at Albany.

"What is going to happen if WGY has to report a hard news story about CapCom?"

Vopelak, though, said the credit union is paying only for exposure.

"We're sponsoring the studio, not the newscast," she said.

"We have no intention of trying to influence what they do from a news standpoint."

WGY is owned by media giant Clear Channel Communications Inc. of San Antonio, the country's largest radio station owner.

Clear Channel stations throughout the nation often sell naming rights to their studios.

The practice earned the company a rebuke in 2005 from the Society of Professional Journalists, a trade group that urged Clear Channel to stop.

"The only thing a news organization has is its credibility," David Carlson, then the society's president, said in a written statement.

"Does it sound credible to introduce a news report with, 'Here's Jennifer Miller from the Battz Beer News Center?'"

Clear Channel's national headquarters did not return a request for comment.

Phone calls to Kristen Delaney, manager of Clear Channel stations in the Capital Region, also were not returned.

As newspapers and other news organizations search for additional revenue streams in the face of declines in advertising and classifieds, Clear Channel may be leading a trend.

The Philadelphia Inquirer, for example, said in April that Citizens Bank would sponsor one of its business columns.

The column runs beneath the bank's name and green logo and within a green box.

Bob Steele, a media ethics expert at the Poynter Institute in St. Petersburg, Fla., finds such practices troubling.

"When you have the intersection of journalistic values and business values, there's the potential that journalism can be pushed aside," he said.

"I imagine it could become dicey when journalists at that station (WGY) are reporting on issues related to the financial industry, particularly in a state capital, where there could be legislation that focuses on banking issues."

At WGY, the mention of CapCom typically is followed by national headlines supplied by Fox News Radio, then Capital Region news and weather.

WGY, offering news since 1922, is one of New York's oldest radio stations.

Vopelak said that legacy appealed to the credit union.

"It's a news-and-information station, and we felt comfortable being aligned with that," she said.

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

"AMD may use partner on fab - Citigroup says company might join with another firm to build or own Luther Forest plant"

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

First published: Wednesday, June 20, 2007

A new report by analysts at Citigroup says Advanced Micro Devices Inc. could be looking to partner with another company on its $3.2 billion computer chip factory planned for Saratoga County -- and AMD isn't ruling it out as a possibility.

New York state has extended $1.2 billion in grants and tax breaks to AMD in an effort to persuade the company to build the state-of-the-art plant at the Luther Forest Technology Campus in Malta.

But neither AMD nor the state has until now ever suggested the company would bring in a second firm to help build or own the facility, which would employ 1,200 people.

AMD, which is based in Sunnyvale, Calif., has until July 2009 to decide whether it wants to accept the state's offer and build the plant, also known as a chip fab.

"This is all very speculative," said A.J. Carter, a spokesman for Empire State Development Corp., the state's economic development arm, which negotiated the AMD deal.

"AMD has not talked to us about any possible change in their plan."

"While it is apparently not uncommon in the industry for companies such as AMD to seek partners, our response would depend on the particulars," he added.

"Right now, we have nothing to react to."

"We don't comment on speculation."

Under pressure from rival Intel Corp., AMD lost more than $600 million during the first quarter and has set out to cut costs through a new "asset-light" business model that will result in more outsourcing.

Although AMD hasn't revealed what this new model will entail, analysts have been speculating the company could move closer to a so-called fabless business model, in which manufacturing is outsourced to third parties called foundries.

On Monday, Citigroup analysts Glen Yeung and Craig Ellis wrote that they are anticipating a "transformational move" from AMD that could result in its selling one of its two fabs in Dresden, Germany, and seeking a partner to build what's being called Fab 4X at Luther Forest.

"We suspect a partnership arrangement may ultimately result for the as-yet-to-be-built New York facility," the two wrote.

"Our understanding is that there are no restrictions on ownership to maintain all grants and subsidies."

AMD spokesman Travis Bullard said Tuesday the Citigroup report is only speculation.

"It's an educated guess," he said.

"That's what they do."

"That's what they get paid for."

"Nothing's changed in terms of Fab 4X."

Bullard said the asset-light strategy is still being worked on, especially as the company continues to integrate ATI Technologies Inc., a Canadian graphics-chip company acquired for $5.4 billion in October.

ATI used a fabless model, while AMD has historically made all of its own chips -- although it has started to use foundries in some cases.

But Bullard said AMD is looking at the possibility of increasing the number of processors made by foundries and partnering with other companies on manufacturing.

That could even result in a partner being used at Luther Forest.

"It's certainly in the realm of possibilities," he said.

"I can't say that it's not an option."

AMD has a history of partnering with others.

It's doing research and development with IBM Corp., and just last month announced a manufacturing partnership with Taiwan Semiconductor Manufacturing Co., a foundry in Taiwan.

Ken Green, president of the Saratoga Economic Development Corp., the nonprofit that is developing the Luther Forest site, did not return a phone call and e-mail seeking comment.

A spokesman for state Senate Majority Leader Joseph L. Bruno, who helped draw AMD, said the company has not informed the senator of any changes.

"The plan continues to move forward," spokesman Kris Thompson said.

"We are in frequent communication with AMD, and there is absolutely nothing new to report."

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

THE NEW YORK SUN

"Legal Challenge Brews Against Law on Lobbyists"

By ELIOT BROWN

Special to the Sun

June 26, 2007

A major overhaul of the city's campaign finance system could face a legal roadblock, as a powerful local lobbyist said he is preparing a lawsuit challenging the legislation for violating the free speech rights of lobbyists and city contractors.

If successful, the suit could curtail or topple the changes championed by Mayor Bloomberg and the City Council speaker, Christine Quinn.

The bill would limit lobbyists and those who receive city contracts to campaign contributions of no more than $400, while other donors could give up to $4,950 and also have their contributions matched with up to $1,050 in taxpayer funds.

The legislation passed a council committee last week by a 6–1 vote, and it is expected to pass the full City Council tomorrow.

While the bill's supporters say it will decrease the influence of money in politics, the lobbyist spearheading the legal challenge, Sidney Davidoff, said the regulation would unfairly single out and impose rules on a large group of lobbyists and contractors.

"We have a tremendous group of people who can't participate like their neighbors can," Mr. Davidoff, who plans to file the suit after the bill is passed to become a law, said.

"That is a second class citizenship — it is an interference of their rights to participate in the electoral process."

Supporters of the bill are brushing off the possibility of the bill being struck down in court, arguing that the restrictions placed on lobbyists and contractors are within the boundaries of the law.

"If we had excluded them entirely from being able to contribute, that would have been a bigger issue, but we put a cap on it," the chairman of the City Council Governmental Operations Committee, Simcha Felder, said.

The Supreme Court last year struck down a Vermont law imposing a $400 limit on contributions to candidates for state office in the Green Mountain State.

The Bloomberg administration, which would be the target of any legal challenge, examined judicial precedent and is confident the bill is constitutional, an attorney with the city's law department, Jeffery Friedlander, said in a statement.

Support for the bill has been strong within the Council, and many top lobbyists who privately oppose the restrictions say they're keeping quiet for now, letting Mr. Davidoff take the lead in publicly challenging the elected officials with whom they so often work.

One of the few outspoken opponents of the legislation in City Hall, Council Member Vincent Ignizio, predicts the legal challenge will prevail, as the bill allows "for one person's voice to be louder than another."

"It limits that person's voice, and that, on its face, I don't believe is just, and I don't believe it's constitutional," Mr. Ignizio said.

Campaign finance authorities say the state of the law on the issue is blurry.

"The classic campaign finance jurisprudence may be a bit up the air," a campaign finance lawyer with Skadden, Arps, Slate, Meagher & Flom in Washington, D.C., Lawrence Noble, said.

Generally, donation bans on certain groups have been upheld in the past, Mr. Noble said, so long as the government that created the law can demonstrate a need, often by demonstrating a risk of corruption.

"The courts have said that you can have contributions prohibitions if you have a compelling governmental interest," he said.

In addition to restricting donations from lobbyists and city contractors, the proposed campaign finance overhaul changes the formula for matching public funds, putting a greater emphasis on smaller donations.

It also bans contributions from limited liability companies, but not from labor unions.

If passed by the City Council, the new rules created by the legislation would go into effect for the 2009 citywide elections, though a lawsuit could potentially put a hold on the start date.

Mr. Davidoff said he wasn't yet sure whether his suit would be filed in federal or state court.

http://www.nysun.com/article/57276?page_no=1

THE NEW YORK DAILY NEWS

"'It's a war' over election reform - Spitzer vows he'll get stalled bills past Bruno, other GOP lawmakers"

BY JOE MAHONEY and ADAM LISBERG, DAILY NEWS STAFF WRITERS

Tuesday, June 26th 2007, 4:00 AM

Gov. Spitzer bragged yesterday he's well on his way to fixing Albany and predicted he will win his battle to force Senate GOP boss Joe Bruno to pass stalled bills.

"I'm more than satisfied," Spitzer told the Daily News Editorial Board as he neared six months as governor.

"And it's a war."

"People know me."

"They will never see me leave the field of battle without a lot of scars on me and the other side."

Spitzer ripped Bruno (R-Rensselaer) for sending senators home for vacation last week instead of passing a bundle of important bills.

He said Bruno is blocking campaign finance reforms.

"He's worried that if we change the rules, he won't be able to hold onto his majority," Spitzer said.

"Joe Bruno's statement to me is, 'We need that money.'"

"That was when they walked out."

"That was a direct quote: 'We need that money.'"

But Bruno's camp said the governor is the one holding up legislation by insisting on his own version of campaign finance reform - making him to blame for Albany gridlock.

"He sacrificed this entire session to this one issue," said Bruno spokesman John McArdle.

"It's unfortunate that nothing else is going to get done as he pursues this one issue."

The freshman governor blew into Albany this year with a brash promise to change the way Albany does business, but quickly found himself butting heads with Bruno and Assembly Speaker Sheldon Silver (D-Manhattan).

Many bills on Spitzer's reform agenda are bottled up in the Senate, even though legislators have agreed on most of the underlying issues, he said.

That means public contract reforms, childhood obesity measures and vital health insurance changes are being held hostage to politics, he said, so he plans to denounce senators who won't move those bills to a vote.

"I'm going to go around the state saying to the members, to the public, 'Ask your senators to come back and vote,'" Spitzer said.

Still, Spitzer said he has already changed the tone of Albany, pushing the government and the Legislature toward greater openness.

And he took credit for laws like civil confinement for sex offenders and a much-needed revision of the workers' compensation system, as well as for settling a long-running education suit and clearing the way to rebuild Ground Zero.

Spitzer sounded like the tough-talking prosecutor he once was when he said there will be no deal on legislative pay raises unless his reform agenda is passed.

"Legislative pay - we'll get to if and when they show they've reformed Albany," he said.

"I'm confident that in the short, medium and long term, I will win those battles."

jmahoney@nydailynews.com

http://www.nydailynews.com/news/2007/06/26...ion_reform.html

THE NEW YORK DAILY NEWS

"Back on the warpath - Feisty Spitzer pins blame for Albany breakdown on Bruno - and that's exactly where it belongs"

Tuesday, June 26th 2007, 4:00 AM

Now that the dust has settled on Albany's end-of-session collapse, it's obvious who's to blame for blowing things up: Senate Majority Leader Joe Bruno.

He tries to point the finger at Gov. Spitzer, but Bruno's the one standing there like Wile E. Coyote, with half his fur singed off and a receipt from the Acme Explosives Co. in his back pocket.

Spitzer spent months pushing the Legislature to the brink of agreement on a bunch of worthwhile bills.

Among other things, he wanted to clean up pollution at abandoned buildings, speed construction of power plants, collect DNA from all convicted criminals and grant paid leave to workers spending time with newborns or sick family members.

And Bruno torpedoed it all.

Why?

Because he fears his dwindling GOP majority could not survive without unlimited special-interest cash and bottomless pork-barrel spending.

As Spitzer revealed to the Daily News Editorial Board yesterday, Bruno was blunt about why he wouldn't go along with closing a loophole that lets some companies make unlimited, untraceable donations to Albany power brokers and other much-needed campaign finance reforms.

"Joe Bruno's statement to me was, 'We need that money,'" Spitzer said.

"That was a direct quote."

Spitzer said last-minute talks with the Legislature broke down late last Thursday afternoon, after he had crafted what he hoped would be a grand compromise on campaign finance, congestion pricing and pay raises for lawmakers, judges and other state officials.

The governor said he reached a tentative agreement with Assembly Speaker Sheldon Silver, then pitched the deal to Bruno.

"I said, 'Here's where we are,'" Spitzer recalled.

"He said, 'Let me go off and talk to my conference.'"

"... The idea was that he would leave for five minutes, think about it, come back, negotiate these things and we'd get an enormous amount done."

Instead, Bruno called a press conference to accuse Spitzer of holding all issues hostage to campaign finance reform - and announce that the Senate was going home.

Although the big compromise had fallen apart, Spitzer said he still prodded Bruno to pass bills on other issues where the parties were near agreement - like family leave and DNA.

But Bruno wanted Spitzer to go along with hundreds of millions of dollars in so-called "capital spending," primarily pork-barrel money that senators could hand out for pet projects in their home districts.

When Spitzer balked, Bruno took his marbles and went home.

Faced with this stonewalling, Spitzer is doing the only thing he can: appealing to the people.

He's going to travel the state, cluing voters in on just how poorly some senators have been representing them in Albany.

Bruno's spokesman, John McArdle, heatedly disputes Spitzer's version of events - saying there could have been no mistake about Bruno's position on campaign finance.

Bruno "told him flatout, point-blank: 'I am not doing your plan period - nohow, no way,'" McArdle said.

Regardless of who said what to whom, here's the bottom line: Bruno and the Senate GOP are just two seats away from losing their majority.

They've managed to hang on this long only because they ruthlessly gerrymander districts, shower their voters with pork and go into every election with a massive money advantage over the Democrats.

So they view even modest campaign-finance reforms as a mortal threat.

Thankfully, Spitzer shows no sign of giving up.

"It's a war," he said yesterday.

"People know me."

"They will never see me leave the battlefield without a lot of scars on me and on the other side - and without having spent every ounce of energy."

"And that's what we're going to do."

whammond@nydailynews.com

http://www.nydailynews.com/opinions/2007/0...he_warpath.html

"Doyle planning return to state court bench - Judge had lost temporary assignment for being censured"

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

Last updated: 2:08 p.m., Tuesday, June 26, 2007

ALBANY -- Albany County Surrogate Cathryn M. Doyle is planning a return to state Supreme Court -- less than two months after she lost her temporary assignment on that bench for being censured.

"We all make mistakes," said Doyle, 54, of Slingerlands, after she announced her campaign outside the Albany County Courthouse Tuesday.

"I have a clear conscious with what I did."

Doyle was censured earlier this year after the state Commission on Judicial Conduct found she gave "evasive and deceptive" testimony during its investigation into a trust fund intended to help former state Supreme Court Thomas Spargo, who was ousted from the bench last year.

Jonathan Lippman, the state's chief administrative judge, signed an order on May 4 to end Doyle's temporary role as a full-time acting Supreme Court justice.

A 2005 rule, announced by Lippman, makes judges who have been publicly admonished or censured ineligible for temporary work on the Supreme Court bench for two years.

On Tuesday, Doyle noted that many judges have been censured and admonished and argued she did not intentionally mislead anyone.

"I got censured for not willingly throwing someone under the bus," she said, referring to Spargo.

The ex-judge was removed from duty after the commission ruled he had pressured lawyers who appeared before him to donate $10,000 each to help him pay legal costs incurred in fighting the commission charges.

Doyle was elected County Surrogate in November 2000 and had become an acting Supreme Court justice in 2003.

With three Supreme Court seats up for election this year in the 3rd Judicial District, Doyle said one should go to a woman.

And while not pointing a finger at anyone specifically, she said a Supreme Court judge "needs to respect people ... to respect the people who appear before the court."

Qualifications, not political connections, should dictate who sits on the bench, she said.

"I also believe that the time when the 'good old boys' decide in backrooms who gets to be a judge should finally come to an end, despite the efforts by a few to keep that practice alive," she told reporters.

If elected, Doyle, the president of the Albany County Bar Association, would sit on cases covering Albany, Rensselaer, Columbia, Schoharie, Ulster and Sullivan counties.

"Spitzer: Focus on NYC infrastructure despite 'vacationing' Senate"

By MICHAEL GORMLEY, Associated Press

Last updated: 2:53 p.m., Tuesday, June 26, 2007

BOLTON LANDING, N.Y. -- Gov. Eliot Spitzer said Tuesday he is turning more of his focus to improving air travel and the subways in New York City, which he promised will remain the world's financial capital despite challenges from London and elsewhere.

After admitting that some of his top legislative goals "fell apart" last week in a fight with the Senate's Republican majority, Spitzer said he'll spend the balance of his first year in office pursuing his vision for the city through the executive branch.

"We are excited beyond words to get back to work," Spitzer said shortly after a meeting with top staff.

"The role of being governor?"

"One small piece of it is dealing with the Legislature."

"The much larger, more important piece is to run the agencies."

"And that's what we're doing."

But the Democratic governor didn't miss the chance to tell the annual meeting of the New York State Broadcasters Association that the Republican-led Senate is to blame for the legislative stalemate.

The Senate adjourned the regular session as scheduled on Thursday with many major bills unfinished, but promised to return when compromises are reached with Spitzer and the Democrat-led Assembly.

"The Senate did have time to vote itself a pay raise ... then leave on June 21 without doing the people's business," Spitzer said.

He said he will go to Republican senators' districts and play "Where's Waldo?" by asking voters, "Where's your senator?'" and imploring them to tell their legislators to "bet back to work, earn your keep, earn your pay."

The issues include approval of a New York City traffic toll system to reduce pollution, campaign finance reform opposed by Senate Republicans, and a capital budget worth as much as $1 billion for construction projects statewide.

Spitzer said he doesn't want to appear punitive by calling the Legislature into session -- "results are what matter" -- but he wouldn't preclude calling the Legislature back weekly if necessary.

"The reality is that Gov. Spitzer has failed to deliver on his promises," said Senate Majority Leader Joseph Bruno in a prepared statement.

"While he's in Warren County, instead of delivering political attack speeches, he should be talking to North Country businesses about delivering the help they need to create more jobs."

"Instead of focusing on kids games and political attacks, he should be dealing with the real issues that matter to New Yorkers, property taxes, jobs and the economy and public safety," Bruno said.

"Where's Eliot?"

"Still on the political campaign trail."

While Spitzer concentrated during his first six months on reviving the "economic malaise" of the upstate economy, he said the next six months and the 2008 legislative session will include several New York City priorities.

Spitzer said there has been "a failure to invest in infrastructure" in New York City even as its standing as the center of the financial world is challenged.

He said the state needs to help create growth in the subway system to accommodate a rising population: "That's what will choke us."

For example, he said he recently attended a groundbreaking for expansion of the long delayed Second Avenue subway -- "It was a little embarrassing having our 10th groundbreaking, but we'll get it done."

He also focused on the planned expansion of Stewart International Airport in Newburgh to be a full partner in serving New York City while providing an economic boost upstate.

"As I said earlier, the infrastructure of our subway system -- that is one of the critical issues we are going to be talking about," Spitzer said.

"The infrastructure for transportation, energy, for (affordable) housing in the downstate sectors have been starved for capital recently so we have to confront that."

There was no immediate comment from Assembly Speaker Sheldon Silver.

"Senate, Spitzer feud widens - Governor and Bruno quarrel over unfinished business, and acrimony will likely grow as governor plans tour to criticize upstate, Long Island senators"

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

First published: Wednesday, June 27, 2007

BOLTON LANDING -- Gov. Eliot Spitzer widened his post-session public relations war Tuesday, asking a room full of television and radio executives at an Adirondacks resort: "Where's your senator?"

Spitzer also projected a color photo of Senate Majority Leader Joseph L. Bruno to illustrate his contention that Bruno's Republican members are anti-reform and unworthy of the summer vacation they started last week.

In a PowerPoint presentation called "Unfinished Business" at the annual conference of the New York State Broadcasters Association at the Sagamore, the first-term Democrat criticized Bruno for abruptly cutting off talks on a range of proposed laws and ending the legislative session June 21, the last day of the regular legislative calendar.

Spitzer said he will use his agencies instead of the Legislature to achieve some of his agenda, but did not specify how.

Bruno, in a later news conference, said Spitzer was responsible for all the unfinished business because he dug in on a campaign finance reform plan that Senate Republicans flatly reject.

He said Spitzer needs to deal with the Legislature.

"This governor doesn't get it," he said.

"He apparently doesn't understand the job of being governor."

The war of words between the governor and Senate is far from ebbing.

Verbal attacks between Spitzer and Bruno are likely to escalate in the coming days as Spitzer plans a tour of upstate cities and Nassau County, where he will call out Senate Republicans and blast them for what he calls a failure to deliver for New Yorkers.

"We're going to play (where's) Waldo and ask: Where's your senator?" Spitzer said.

He scanned a photo of an empty Senate chamber.

The caption read: "Not here."

Spitzer said he is simply competing fiercely, likening his fight to an athletic contest, to get resolutions on a host of measures he considers important, including requiring schools to offer nutritious food, banning violent video games, setting up regulations for new power plants and cleaning up urban pollution sites.

"The Senate majority leader -- good friend -- this is not a personal thing," Spitzer said.

"When you're on the playing field . . . you sweat . . . you use a few vulgarities."

Bruno said he's ready to talk, but "If people want a fight, we're up to it."

Spitzer continued to blast Bruno for his "status quo" position on such issues as the Wicks Law, which forces municipalities to break building projects into separate bids, raising their costs, and the campaign finance system, which critics say unduly favors incumbents.

Bruno maintains the Senate will pass a Wicks reform bill, and is willing to negotiate a campaign finance package that doesn't restrict contributions but increases accountability and transparency.

Contributing to politicians of one's choosing, Bruno said, is a free speech issue, and Spitzer's plan would benefit wealthy candidates like the governor.

"Where's Eliot?"

"Still on the political campaign trail," Bruno said in a lengthy release.

"The governor continues to be in self-denial."

"He still thinks that New Yorkers care more about his millionaire's re-election campaign finance plan and the appointment of his campaign contributors to political posts than they do about property tax relief, the upstate economy and the death penalty for violent criminals who kill police officers."

Bruno has said he will call the Senate back in July.

State GOP Chairman Joseph Mondello defended Bruno, saying Spitzer didn't get much done in Albany so he is "reverting back to his comfort zone as a partisan politician."

Spitzer said he is particularly upset that Bruno's conference is disregarding 53 nominees that need to be confirmed to lead various state offices and agencies.

At this point in former Gov. George Pataki's first term, Spitzer said, just three of the Republican's nominees had not yet been confirmed by Bruno's conference.

Spitzer also said he is discussing the sale of Aqueduct Race Track in Queens to "maximize racing."

He said he thinks the New York Racing Association management has improved and commended it for "professionalism."

He said internal discussions about the future of the tracks include how to "sort out the real estate, the gambling side and the racing side."

NYRA has run the Saratoga, Aqueduct and Belmont tracks exclusively since 1955.

Its current franchise expires at the end of the year.

The governor's remarks come as a racing industry source says Spitzer's special counsel has been floating an idea to allow a restructured NYRA to continue running the tracks for 20 years, sell Aqueduct to pay off NYRA's debts and winterize Belmont Park, and have another group -- presumably Excelsior Racing Associates -- run video lottery terminal casino operations.

Spitzer suggested the state is toying with many structures, including making NYRA a public benefit corporation.

Bruno said Spitzer's plan could complicate the ability to put some of the VLT money into racing purses, and flatly stated, "Aqueduct is not for sale."

"Aqueduct is a racetrack and it's going to have VLTs."

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

THE NEW YORK DAILY NEWS DAILY POLITICS BLOG:

In the article in the upstate TU this morning entitled "Senate, Spitzer feud widens - Governor and Bruno quarrel over unfinished business, and acrimony will likely grow as governor plans tour to criticize upstate, Long Island senators" by JAMES M. ODATO, Capitol bureau, Albany, first published Wednesday, June 27, 2007, Eliot "ALL MOUTH" Spitzer was quoted as follows:

Spitzer said he is simply competing fiercely, likening his fight to an athletic contest, to get resolutions on a host of measures he considers important, including requiring schools to offer nutritious food, banning violent video games, setting up regulations for new power plants and cleaning up urban pollution sites.

"The Senate majority leader -- good friend -- this is not a personal thing," Spitzer said.

"When you're on the playing field . . . you sweat . . . you use a few vulgarities."

end quotes

Perhaps a cooler, wiser head needs to take "GOVERNOR ALL-MOUTH" aside and explain to him that in the State of NY, according to OUR Constitution, OUR state government IS NOT an athletic contest and "GOVERNOR ALL-MOUTH" Spitzer is not an athlete who we state citizens expect to be out there on the floor of the NYS Senate spewing obscenities or vulgarities as if he were in actuality some foul drunken denizen of the bowels of the NYS subway system come out into the light to harass the morning commuters .....

To the contrary, he is a constitutional officer of OUR state government, and pursuant to the NYS Constitution which he took an oath to support, HIS job is fairly limited and it is very simple:

ART, IV, § 3. The governor shall communicate by message to the legislature at every session the condition of the state, and recommend such matters to it as he or she shall judge expedient.

The governor shall expedite all such measures as may be resolved upon by the legislature, and shall take care that the laws are faithfully executed.

end quotes

You would have thought that a real high-powered, hot-shot lawyer like "GOVERNOR ALL-MOUTH" Spitzer would know this cold, especially since he was the NYS AG with a duty to the NYS Constitution before getting his sorry *** elected governor ....

But "GOVERNOR ALL-MOUTH" Spitzer is in reality nothing more than a spoiled little rich kid just grown older, but not smarter nor wiser ....

And so ...

Posted by: John Galt | June 27, 2007 8:15 AM

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

THE NEW YORK POST

"SUE, SID, SUE"

June 27, 2007 -- Sid Davidoff didn't become one of New York City's most influential lobbyists by shrinking from controversy.

No surprise, then, that he's not backing away as Mayor Bloomberg and the City Council try to put him out of business.

Nor should he.

Lobbyists may not be the most sympathetic characters in New York's political pantheon, but the First Amendment applies to them, too - even if the notion seems to elude Mayor Mike and Speaker Christine Quinn.

Quinn's minions today are scheduled to take up a campaign-finance "reform" bill that's being billed as a landmark - but that falls down on at least three critical points:

* It jacks up (by 50 percent!) taxpayers' involuntary contributions to individual political candidates.

* It tightens the city's stranglehold over New Yorkers' political speech by severely limiting their ability to contribute to candidates of their choice.

* It wholly exempts labor unions from those limits, even though seven of the top 10 biggest givers to city pols in 2005 were - ta-da! - unions.

The fact that Bloomberg and Quinn don't have the heft - or guts - to slap the same restrictions on unions that they've reserved for less-influential entities and individuals certainly shames them.

And they know it's wrong: Both have said they hope to add unions to their hit list sometime in the sweet bye-and-bye.

But they're going ahead, anyway.

Davidoff promises to sue.

"We have a group of people who can't participate like their neighbors can," he told The New York Sun.

"This is a second-class citizenship - it is an interference [with] their rights to participate in the electoral process."

We wish him the best.

New Yorkers who care about their own ability to participate in the political process - either directly, or by contributing to the candidates of their choice - should root for Davidoff, too.

For nowhere in the First Amendment is there an asterisk indicating its protections apply only to those holding union cards, or who otherwise have undue influence in municipal affairs.

http://www.nypost.com/seven/06272007/posto...editorials_.htm

THE NEW YORK DAILY NEWS DAILY POLITICS BLOG:

Posted by Ravi Batra: Political parties are fiduciaries who hold democracy itself in escrow.

To support political parties is to be constructively engaged in the process so that the promise of the Constitution to make everyday New Yorker's live better may be best realized.

JOHN GALT FROM UPSTATE APPALACHIA REPLIES:

Mr. Ravi Batra, you sure are a pistol is all I can say ....

No wonder you drive poor Mark to a foam-at-the-mouth rage and frenzy in here when you make these kinds of posts that you do, where you are completely rewriting American history and changing it into something that it never was with your use of the Declaration of Independence, of all things, to justify the existence of political parties here in America, and in NYS, which just happens to be one of the "states" of the original 13 "states" to adopt the Declaration of Independence in 1776 ....

And if anyone should have an opinion from back then about political parties, in my estimation, it would be none other than Mr. George Washington ....

And in his Farewell address which ironically is on display in the state Capital right now through Independence Day, this is what George Washington had to say about political parties in America back then:

“The alternate domination of one faction over another, sharpened by the spirit of revenge, natural to party dissension, which in different ages and countries has perpetrated the most horrid enormities, is itself a frightful despotism."

"But this leads at length to a more formal and permanent despotism."

"The disorders and miseries which result gradually incline the minds of men to seek security and repose in the absolute power of an individual; and sooner or later the chief of some prevailing faction, more able or more fortunate than his competitors, turns this disposition to the purposes of his own elevation, on the ruins of public liberty."

“Without looking forward to an extremity of this kind (which nevertheless ought not to be entirely out of sight), the common and continual mischiefs of the spirit of party are sufficient to make it the interest and duty of a wise people to discourage and restrain it."

“It serves always to distract the public councils and enfeeble the public administration."

"It agitates the community with ill-founded jealousies and false alarms, kindles the animosity of one part against another, foments occasionally riot and insurrection."

"It opens the door to foreign influence and corruption, which finds a facilitated access to the government itself through the channels of party passions."

"Thus the policy and the will of one country are subjected to the policy and will of another.”

end quotes

George washington saw these times coming, Mr. Ravi Batra ....

He saw a DICTATOR like Governor Eliot "ALL-MOUTH MOVE-MONEY" Spitzer emerging ....

And he plainly foresaw someone like yourself encouraging the coming of this DICTATOR with your shameless revision of OUR history and your continued panegyrics and paeans to the greatness of these political parties as alleged "fiduciaries who hold democracy itself in escrow" .....

Which according to George Washington is the rankest BULL **** possible ....

And so ...

Posted by: John Galt | June 27, 2007 4:36 PM

http://www.nydailynews.com/blogs/dailypoli...lyn.html?page=2

THE NEW YORK POST

"BUFFALO BOOSTER BLUES"

June 27, 2007 -- Gov. Spitzer once likened stretches of upstate New York to notoriously destitute Appalachia - and some now fear he's aggressively looking to remove all doubt.

Who can blame them?

After all, even the gov's hand-picked upstate economic-development czar, Dan Gundersen, refuses to live in those areas - as he himself conceded during a state Senate confirmation hearing last week.

Spitzer named Gundersen to the key post after promising grandly to promote job growth and breathe new life into Upstate.

Spitzer even made Buffalo - a poster city for Upstate's economic anemia - the headquarters for the regional branch of the Empire State Development Corp. (his business-promotion arm).

But Gundersen last week told a Senate panel that he didn't live in Buffalo - and couldn't promise he'd ever live there.

Instead, he relocated from Pennsylvania and is renting a place in sassy Saratoga Springs - one of the few Upstate cities not on economic life-support.

And some 300 miles from Buffalo.

Gundersen said he hasn't yet sold his Pennsylvania home or decided where exactly he'll ultimately live.

(New Yorkers can only hope it'll be at least someplace in New York.)

Meanwhile, think about the kind of message this sends: As Donn Esmonde put it in the Buffalo News, it's like saying that "Buffalo is a great place to do business - but I wouldn't want to live there."

Of course, such cynical, elitist hypocrisy has typified Spitzer's first half-year in office.

(Recall his nothing-else-matters push to limit campaign contributions - even as he himself offers big-time fund-raisers access to his office in exchange for political donations.)

Gundersen, to be sure, may be a competent salesman for the region - and maybe even a nice guy.

But Spitzer needs to understand that if his development czar hopes to have any credibility at all when he pitches firms about Upstate, he ought to be ready to put his mortgage payments where his mouth is - and hang with the hoi polloi.

Even if that means living in Appalachia.

Er, Buffalo.

http://www.nypost.com/seven/06272007/posto...editorials_.htm

THE NEW YORK DAILY NEWS

"Spitz, Bruno continue to trade barbs"

BY JOE MAHONEY

DAILY NEWS ALBANY BUREAU CHIEF

Wednesday, June 27th 2007, 4:00 AM

BOLTON LANDING, N.Y. - Gov. Spitzer and Senate GOP leader Joe Bruno pumped new venom into their escalating feud with the sharpest attacks on each other yet.

Spitzer mocked Bruno in a speech to a conference of broadcasters here, accusing the Republican powerbroker of grubbing for a pay raise for lawmakers before going AWOL from Albany last week.

Using a photo of an empty Senate chamber, Spitzer said he was going to crisscross the state, playing his version of "Where's Waldo?" - with Bruno in the title role.

"We're going to play 'Waldo' and ask: Where's your senator?" Spitzer said.

Bruno slashed back at the Democratic governor in an interview with cable news station NY1 for acting like "a Third World dictator" and a "bully."

"Just as soon as you are telling him things that are disagreeable to him, well, then you can see the change take place in his face," Bruno said.

"He flared up with me a couple of times on the phone and in person, in a very unbecoming way."

"All I could think about was some little rich kid having a tantrum."

Spitzer voiced annoyance that Senate Republicans have not only blocked his campaign finance agenda, but have also stalled confirmations of 53 appointees to top state posts.

He noted at this point in his first term, his predecessor, Republican George Pataki was only waiting on three Senate confirmations.

Inaction could hamstring some agencies, he said.

"When you are negotiating with the CEO of a company and he's saying, 'Wait a minute. Have you been confirmed?'...it makes a difference," Spitzer told reporters.

jmahoney@nydailynews.com

http://www.nydailynews.com/news/2007/06/27...rade_barbs.html

THE NEW YORK DAILY NEWS

"Let's see action, Joe"

Wednesday, June 27th 2007, 4:00 AM

Editorial

What little doubt there was that Senate Majority Leader Joe Bruno bolted from the Capitol last week in a fit of petulance is gone.

The elder statesman of the Republican Party yesterday got revealingly personal with Gov. Spitzer, describing him as "a Third World dictator" and "a big overgrown rich kid."

Hearing Bruno knock Spitzer for being autocratic was hilarious considering nothing happens in the Senate without the blessing of Lord Bruno of the Banana Republic of Albany.

Unaccustomed to being asked to play by someone else's rules, he is responding with less aplomb than fellow Lord Sheldon Silver The Sly, Assembly Speaker.

But there may be good news.

Bruno pronounces that he is ready to return to Albany to, as they say, do the people's business.

"I'm not gallivanting around," he says.

Fine, your worship, get back to work, as the governor has challenged you to.

More than a dozen major pieces of legislation awaited action when Bruno called it quits over Spitzer's push for campaign finance reform and his refusal to dole out a half-billion dollars worth of capital spending as so much unaccountable pork.

The stalled measures range from mandating that convicted criminals give DNA samples to determining the rules for opening power plants to creating a program granting workers paid leave to spend time with newborns or sick relatives.

Not to mention congestion pricing, limiting the influence of money in New York politics and, yes, maybe, if everyone behaves, legislative pay raises.

Spitzer says he, Silver and Bruno were near agreement on many issues.

And he is calling on lawmakers to reconvene and decide the fate of each item on its own merits.

That's exactly what should happen - in the open, in negotiations among Spitzer, Silver, Bruno and the minority leaders of the Assembly and Senate, Jim Tedisco and Malcolm Smith.

The talks must be Webcast.

Let the people see who's doing their business.

http://www.nydailynews.com/opinions/2007/0...action_joe.html

THE NEW YORK TIMES

"Lawmakers Criticize Spitzer on Upstate Restoration Plan"

By DANNY HAKIM

Published: June 27, 2007

BOLTON LANDING, N.Y., June 26 — Gov. Eliot Spitzer, born and raised in New York City, made restoring upstate a central campaign theme last year.

Six months into his term, some leaders in the region say that they have seen no real change.

Moreover, the governor’s plan for the region has gotten tied up in his continued feuding with legislative leaders, stalling much of his agenda.

The state is mired by a high tax burden, which particularly affects distressed regions upstate, and while the governor’s team has announced a number of development deals to draw jobs upstate, critics say Mr. Spitzer has lacked a transformative vision to reinvigorate Buffalo and other battered areas upstate.

Now, the Republican-led Senate, which is dominated by upstate lawmakers, is holding up approval of the governor’s top economic development nominees amid a growing feud.

Among other things, they are upset that the governor’s new upstate economic policy director, Daniel Gundersen, has chosen to live in Saratoga Springs, one of the rare thriving locales upstate, instead of Buffalo or other points west.

Tensions flared anew on Tuesday as Mr. Spitzer, a Democrat, visited this resort town on Lake George to deliver a withering assessment, with a PowerPoint presentation, of the Senate’s recalcitrance.

In a speech to the New York State Broadcasters Association, he blamed the Republican senators for leaving Albany last week with a number of issues still on the negotiating table.

He blamed them for balking at his proposal to overhaul the state’s campaign finance laws.

And he chided them for passing a bill to set up a commission to approve raises for lawmakers.

“They’re getting paid, they’re on vacation, they gave themselves a pay raise, they haven’t done the people’s business,” the governor said.

The Senate majority leader, Joseph L. Bruno, was not pleased.

Mr. Bruno, an upstate Republican, has said that the governor is “obsessed” with campaign finance reform and that he made it a higher priority than upstate development.

In a statement issued shortly after the governor’s speech, he said, “There was a rare sighting of Governor Spitzer in upstate New York,” adding that Mr. Spitzer had “delivered more empty political rhetoric” instead of “hope that he might actually deliver on his campaign promises to create jobs upstate.”

In an interview shortly thereafter, Mr. Spitzer said the Senate’s “positions are posturing, politics and pablum.”

Mr. Bruno, in a transcript of an interview being broadcast Tuesday night on NY1 News, said the governor “ought to understand that we’re not in a third world country where he is a dictator” and asked him to “stop wandering around this state, having a tantrum like a big overgrown rich kid.”

The sniping, which has been nearly constant between the two men in recent months, has not helped get things done.

That said, no governor could be expected to make much headway right away on a region that has been struggling for decades.

Any number of statistics can be cited to show the exodus of jobs and decline in prosperity upstate.

In the last three decades, the upstate population drain has contributed to New York’s loss of Congressional seats, to 29 today from 42.

The population of 20- to 34-year-olds upstate decreased by 22 percent in the 1990s, according to state figures.

And Buffalo, with its finances in disarray, is now overseen by a state control board.

Both the governor and the Senate have their own competing, and sometimes overlapping, upstate economic development plans.

Both sides agreed in budget negotiations to cut the corporate tax rate to 7.1 percent from 7.5 percent, which they hoped would ease the burden on businesses in the region.

In addition, they agreed to $1.3 billion in property tax relief — a major concern for upstate voters — and agreed to overhaul the state’s workers’ compensation system, which was particularly burdensome for small businesses.

They also sent $200 million in new aid to distressed cities.

The governor wants to take further steps to reduce the cost of doing business upstate, including overhauling the Wicks Law, which requires multiple contractors for public construction projects, and approving Article X, which would allow the expedited siting of power plants; the high cost of energy is a major complaint of businesses in the region.

Both measures were held up in disputes with the Senate last week.

The Senate has proposed granting further business tax cuts, extending additional property tax relief to small businesses and even creating high-speed rail links between upstate cities.

It would also make it easier for small businesses to buy state-funded health insurance.

The Legislature is expected to return for a special session next month, but it is not clear whether action will be taken on any of those proposals.

Some hoped for a more cooperative approach.

“It isn’t rocket science, and the ideas aren’t protected by patents, so there’s a fair amount of overlap,” said Kenneth Adams, president of the Business Council of New York State.

Senator Thomas W. Libous, Republican of Binghamton, said: “The governor has been working case by case, the Senate is looking at an overall plan that affects the state."

"Somehow we need to blend those together."

"This should not be confrontational.”

But things had become so fractured that an announced agreement on an overhaul of the Wicks Law fell apart at the end of the session.

Critics say one of upstate’s biggest problems is a lack of fiscal discipline in Albany, which they say continues to drive up business costs in the area.

This year’s budget increased overall state spending by more than four times the inflation rate.

E. J. McMahon, director of the Empire Center for New York State Policy, a conservative group, said the Legislature also passed two dozen pension sweeteners, including measures making it easier for public employees to claim early disability retirement because of heart disease.

“I don’t think anyone is seriously talking about addressing the causes of high taxes,” he said.

http://www.nytimes.com/2007/06/27/nyregion...mp;ref=nyregion

NEWSDAY

State/Region

"Spitzer: I don't need the legislature"

BY JAMES T. MADORE
james.madore@newsday.com

June 27, 2007

ALBANY - Frustrated by a legislative session that left many key issues hanging, Gov. Eliot Spitzer said yesterday that he could govern without lawmakers.

Downplaying the importance of passing laws, the freshman governor said he favored regulatory changes and executive orders to run the state - neither of which require prior approval by the legislature.

The Democratic governor repeated his criticism of a decision by the Senate's Republican majority to go home June 21, the official end of the six-month session, though many bills remain to be considered.

Referring to the children's book series "Where's Waldo?" Spitzer said he would travel the state to ask voters to find their respective senators "and say go back to work."

Senate Majority Leader Joseph Bruno (R-Brunswick) replied, "Where's Eliot?"

"Still on the political campaign trail."

Bruno also repeated comments he made to NY1 News yesterday, describing Spitzer as "temperamental" and a rich brat.

"He ought to understand that we're not a third-world country where he is a dictator," according to a transcript of the television interview.

Spitzer was expected to continue to criticize the Senate GOP in speeches before business and civic groups in Syracuse and Rochester today, and on Long Island tomorrow.

He never mentioned state Sen. Betty Little (R-Queensbury) in yesterday's remarks, though he made them in her district at a state broadcasters' convention in Bolton Landing on the shores of Lake George.

In the hourlong speech, Spitzer announced that all state agencies and public authorities would broadcast their meetings via the Internet, beginning Sunday, and called on the Senate to confirm 53 appointees to lead various state agencies.

"We will use the capacity of the executive branch to govern the state, whether or not the legislature joins us in this pursuit," he said.

Later, Spitzer explained that "the role of governor, one small piece of it is to deal with the legislature."

"The much larger piece is to run the agencies."

He cited an administrative action that produced an additional $40 million for legal services for the poor.

In the Capitol, Bruno stressed Spitzer's inexperience.

"This governor doesn't get it ... I would think his top priority would be making laws, dealing with the legislature."

Bruno also voiced disagreement over the Aqueduct racetrack in Queens.

"Aqueduct is not for sale."

"Aqueduct is going to be a racetrack and it's destined to have VLTs [video lottery terminals] there," Bruno said.

Earlier, Spitzer raised the possibility of selling Aqueduct to developers because of declining attendance.

The state is facing a deadline of Dec. 31 to award a new racing franchise.

He said, "I think people have had meaningful conversations about whether having a track there is the best use ..."

"It's a conversation that we should have ... "

http://www.newsday.com/news/local/state/ny...enews-headlines

NEWSDAY

AP New York

"Bruno says he opposes selling Aqueduct, Spitzer racing plan"

By MICHAEL GORMLEY
Associated Press Writer

June 26, 2007, 6:21 PM EDT

ALBANY, N.Y. -- Republican Senate leader Joseph Bruno said Tuesday he is opposed to racing proposals Gov. Eliot Spitzer is considering, which would sell Aqueduct race track and split the operation of race tracks and video slot machines.

"I'll give you my own personal impression?"

"Aqueduct is not for sale," Bruno said.

"Aqueduct is going to be a race track and it is destined to have VLTs (video lottery terminals or video slot machines) there."

"And that's what the Assembly members want, and that's what my Senate members want ... I'm hearing that Aqueduct is critical to horse racing in this state."

He was reacting to a New York Daily News article Tuesday in which Spitzer was quoted as telling the newspaper's editorial board that the track could be closed and its development value could be $1 billion.

"Aqueduct?"

"I think people had meaningful conversations about whether having a track there is the best use," Spitzer said Tuesday in a press conference.

"I'm not saying publicly it should close or it will close."

"I'm saying it's a conversation we should have as we move forward trying to figure out how best to maximize the value of racing to New York."

Spitzer said "there are many moving pieces ..."

"We need to forge a legislative consensus."

"The franchise can't be extended without the Legislature being on board and so those conversations will move forward."

Bruno also criticized Spitzer's idea of awarding one contract to run racing at Aqueduct, Belmont and Saratoga, and another to run video slot machines at Aqueduct and, or, Belmont.

"I don't think that works," Bruno said.

"I don't think that's the way to go."

He said separating video slot machines _ approved by the Legislature to fund purses, race tracks and the racing industry _ from the tracks would create "serious conflicts" in where the revenue would go.

Bruno's criticism comes during a continuing legislative conflict with Spitzer in which Bruno has accused the freshman governor of acting like a dictator at times, including in the review of candidates for the racing franchise.

The groups vying for the 20-year franchise are: Excelsior Racing Associates, which includes Las Vegas casino developer Steve Wynn; Empire Racing, which has a partner in Churchill Downs and is based in Saratoga Springs; NYRA under recently changed management, and Capital Play, which helped revive Australian racing.

Their proposals include video slot machines and hotels and other attractions at Aqueduct and Belmont, but no significant changes in Saratoga Race Course, which remains a global draw.

http://www.newsday.com/news/local/wire/new...egion-apnewyork