News Reports Of NY Medicaid Excesses And Block Grants Will Sink Cuomo's Budget Into $32 Billion Dollar Default.
The media is finally reporting that the NY Medicaid cat jumped out of the bag. "New York spent $2,903 per person on Medicaid in 2010 — a third more than any other state. The U.S. average is $1,364. Nevada spent the least: $666 per person." That means that if Medicaid is block granted to the States at the National average, NY will receive less and must fund the excess out of its budget and tax revenue. New York's Medicaid is capped at $60.4 billion.
So 1,364 divided by 2,903 x $60.4 billion = $28.38 billion. or, New York must pay for an additional $32 billion ($60.4 billion - $28.4 billion)
link to Medicaid calculations
Meanwhile, the Financial Barbarians of the World are at the gates of US debt financing and the prior trickle down effect will become a tsunami effect on States like New York which has the highest state and local debt of of $31,536 compared to USA debt per person of $44,805. link
New Yorkers cannot afford to pay the average cost of all government benefits in New York at $9,442 per person and lenders will soon all figure it out.
Here are the reports on the Financial Barbarians landing on our shores.
End of America as we know it
New York is the Greece among the US States and bond interest will skyrocket
China will (is) selling its US debt and this will force rise in US interest rates
The handwriting on the wall is coming true.
Cuomo and NY Bondholders See The Writing On The Wall
Rating Agencies Need To Revalue New York Bonds To Avoid Liability
Gold hits $1,500. A Creditor: One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions. ~ from Ambrose Bierce's Dictionary
Letter by registered mail: CuomoTARP.blogspot.com
April 19, 2011
Re: protecting buyers of NY bonds and your potential liability.
Dear Sirs:
You have been sent a copy of Three Billion Dollar Medicaid Fraud By New York State dated April 13, 2011. The Financial Crisis Inquiry Commission established by Congress reported on page 25: "We conclude the failures of credit rating agencies were essential cogs in the wheel of financial destruction." You realize your potential liability, if this occurs with NY State Bonds.
Standard+Poor’s lowered its outlook for U.S. debt to “negative” from “stable,” and woke up Washington. NY debt must follow. Comptroller DiNapoli's cash report for end of March reported, "All Funds tax collections were $926.3 million below initial projections included in the SFY 2010-11 Enacted State Budget, but slightly above projections made March 3." This is double talk, which means he knew on March 3, 2011 that the revenue predicted in our budget wasn't coming, so we revised our figures lower, so he could report we received more than expected.
The rating agencies must properly rate NY bonds based on the above mentioned letter and
1. Cuomo's budget expects more money in cigarette taxes, but that is dashed by expected crime wave of smuggled cigarettes. link 1 link 2
2. The World new economic reality is reported in Andrew Cuomo; A State Bankruptcy And NY Bond Devaluation where factors outside of NY control the bond market for NY bonds.
3. New York Pension Books are Cooked
4. New York Bonds Are Down Rated Based On Cuomo's Budget because
a. The Cuomo 2011-2012 Budget proposes to "eliminate a $10 billion dollar deficit without raising taxes or borrowing" and then is borrowing $5.6 Billion dollars.
b. Cuomo has a "funds shift [that] would result in the use of state bond proceeds for payment of a portion of debt service on MTA revenue bonds."
c. Cuomo's budget used the "Madoff-like" assumption of a 7.5% safe return on pension investments. and continues to allow borrowing to fund contributions.
d. Cuomo failed to budget in the required repaying of the federal government for Medicaid frauds. This is minimally estimated at $6.4 billion.
e. Cuomo forgot what happens when New York's bond rate rises and NY's borrowing costs will move up from $5.6 Billion $18.8 Billion.
e. Cuomo forgot about repaying the Unemployment Insurance: State Trust Fund Loans of $3.1 billion. Cuomo must pass this on in higher unemployment contributions by New York Employers and watch the Cuomo Business Friendly New York fizzle.
f. Fitch Downgrade Added $2.99 Billion in Deficit To Andrew Cuomo's Budget Farce
g.New York has the highest State+local debt per person in USA at a total debt per person of $31,536 compared to USA debt per person of $44,805.
h. Andrew Cuomo's Hope For Increased Tax Revenues Was False because he hasn't budgeted the State's payment of the entire unemployment and extended unemployment benefits of laid off workers, such as the 500 court employees which are just a beginning of NY State layoffs. These unemployed will reduce Personal Income Tax receipts,User Taxes and Fees, and Business Taxes (larger unemployment reduces earnings from businesses)
i. New Yorkers paid $48 billion in property taxes in 2010 with the highest local property taxes in USA, 74% above national average.
Bob Brinker recommends seniors leave the high tax States. New York has the highest taxes. Andrew Cuomo's Business Friendly Puff Pieces will Fizzle As Reality And Medicaid Block Grants Close In.
Who'll be left to repay the bonds? Please do your duty and protect buyers of New York Bonds with up-to-date ratings.
Sincerely yours,
CuomoTARP.blogspot.com
Note: all links are available on the CuomoTARP.blogspot.com website where a copy of this letter is posted.
Attached: Three Billion Dollar Medicaid Fraud By New York State In Cuomo Budget Sent To Congress For Oversight dated April 13, 2011
Letter by registered mail: CuomoTARP.blogspot.com
April 19, 2011
To: Moody's Investors Service
175 Federal Street, Suite 501, Boston, MA 02110
Standard & Poors
55 Water Street New York, New York 10041
Fitch's
One State Street Plaza, New York, NY 10004
175 Federal Street, Suite 501, Boston, MA 02110
Standard & Poors
55 Water Street New York, New York 10041
Fitch's
One State Street Plaza, New York, NY 10004
Re: protecting buyers of NY bonds and your potential liability.
Dear Sirs:
You have been sent a copy of Three Billion Dollar Medicaid Fraud By New York State dated April 13, 2011. The Financial Crisis Inquiry Commission established by Congress reported on page 25: "We conclude the failures of credit rating agencies were essential cogs in the wheel of financial destruction." You realize your potential liability, if this occurs with NY State Bonds.
Standard+Poor’s lowered its outlook for U.S. debt to “negative” from “stable,” and woke up Washington. NY debt must follow. Comptroller DiNapoli's cash report for end of March reported, "All Funds tax collections were $926.3 million below initial projections included in the SFY 2010-11 Enacted State Budget, but slightly above projections made March 3." This is double talk, which means he knew on March 3, 2011 that the revenue predicted in our budget wasn't coming, so we revised our figures lower, so he could report we received more than expected.
The rating agencies must properly rate NY bonds based on the above mentioned letter and
1. Cuomo's budget expects more money in cigarette taxes, but that is dashed by expected crime wave of smuggled cigarettes. link 1 link 2
2. The World new economic reality is reported in Andrew Cuomo; A State Bankruptcy And NY Bond Devaluation where factors outside of NY control the bond market for NY bonds.
3. New York Pension Books are Cooked
4. New York Bonds Are Down Rated Based On Cuomo's Budget because
a. The Cuomo 2011-2012 Budget proposes to "eliminate a $10 billion dollar deficit without raising taxes or borrowing" and then is borrowing $5.6 Billion dollars.
b. Cuomo has a "funds shift [that] would result in the use of state bond proceeds for payment of a portion of debt service on MTA revenue bonds."
c. Cuomo's budget used the "Madoff-like" assumption of a 7.5% safe return on pension investments. and continues to allow borrowing to fund contributions.
d. Cuomo failed to budget in the required repaying of the federal government for Medicaid frauds. This is minimally estimated at $6.4 billion.
e. Cuomo forgot what happens when New York's bond rate rises and NY's borrowing costs will move up from $5.6 Billion $18.8 Billion.
e. Cuomo forgot about repaying the Unemployment Insurance: State Trust Fund Loans of $3.1 billion. Cuomo must pass this on in higher unemployment contributions by New York Employers and watch the Cuomo Business Friendly New York fizzle.
f. Fitch Downgrade Added $2.99 Billion in Deficit To Andrew Cuomo's Budget Farce
g.New York has the highest State+local debt per person in USA at a total debt per person of $31,536 compared to USA debt per person of $44,805.
h. Andrew Cuomo's Hope For Increased Tax Revenues Was False because he hasn't budgeted the State's payment of the entire unemployment and extended unemployment benefits of laid off workers, such as the 500 court employees which are just a beginning of NY State layoffs. These unemployed will reduce Personal Income Tax receipts,User Taxes and Fees, and Business Taxes (larger unemployment reduces earnings from businesses)
i. New Yorkers paid $48 billion in property taxes in 2010 with the highest local property taxes in USA, 74% above national average.
Bob Brinker recommends seniors leave the high tax States. New York has the highest taxes. Andrew Cuomo's Business Friendly Puff Pieces will Fizzle As Reality And Medicaid Block Grants Close In.
Who'll be left to repay the bonds? Please do your duty and protect buyers of New York Bonds with up-to-date ratings.
Sincerely yours,
CuomoTARP.blogspot.com
Note: all links are available on the CuomoTARP.blogspot.com website where a copy of this letter is posted.
Attached: Three Billion Dollar Medicaid Fraud By New York State In Cuomo Budget Sent To Congress For Oversight dated April 13, 2011
Three Billion Dollar Medicaid Fraud By New York State In Cuomo Budget Sent To Congress For Oversight And Demand That Eric Holder Be Replaced By Special Prosecutor
Copy of letter sent: CuomoTARP.blogspot.com April 13, 2011
To: Eric Holder, US Attorney General,
Darrell Issa, Chair House Oversight and Government Reform; Lamar Smith, Chair House Judiciary; Patrick J. Leahy, Chair Sen. Judiciary; Charles E. Grassley, Sen. Judiciary; Paul Ryan, Chair House Budget; Harold Rogers, Chair House Appropriations; Kent Conrad, Chair Sen. Budget; Jeff Sessions, Sen. Budget; Daniel K. Inouye,Chair Sen. Appropriations; Thad Cochran, Sen. Appropriations; Tom Harkin, Chair Sen. Health; Michael B. Enzi, Sen. Health.; and Andrew Cuomo, NY Governor.
Re: Multi-billion dollar fraud: Special Prosecutor required for the Major Criminal Fraud by NY State officials and others taking billions of dollars a year in federal Medicaid funds. Eric Holder and the NY Offices of the US Attorney have failed to prosecute and obtain refunds. Holder has an 18 year history of covering up for Andrew Cuomo when billions of dollars are missing. Congressional oversight of the Justice Department is needed. Congress must end misappropriations and deduct past fraudulently obtained funds from present appropriations. Block grants would shift policing to the State. Andrew Cuomo must adjust his 2011-2012 budget for that refund and remove such anticipated funds from 2011-2012 budget ($3 billion dollars added to budget deficit)
Dear Federal Officials and Governor Cuomo:
The following newspaper reports show massive, in excess of $1 billion dollars, fraudulent criminal taking of federal funds by NY State
1. "Daily rate for Medicaid patients tops $5,000 in nine institutions in NY and was described as a "cash cow for the State." "Introne, Gov. Andrew Cuomo’s liaison, said state officials were working with the U.S. Centers for Medicare and Medicaid Services “to analyze and resolve the matter."
http://www.poughkeepsiejournal.com/article/20110402/NEWS01/110402002/Daily-rate-for-Medicaid-patients-tops-5-000?odyssey=tab%7Cmostpopular%7Cimg%7CFRONTPAGE
2. It was reported in Wall Street Journal that, "The state spends $700 million a year to house about 1,400 disabled people in the facilities. But it bills Medicaid more than three times that amount. By taking advantage of federal matching funds, the state pockets approximately $1 billion extra every year—and uses it to subsidize other areas of the budget."
And 3. $22 billion dollar fraud as NYS Keeps Getting Caught For Committing Fraud, But There Never Seems to Be Any Consequences
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/
These are criminal fraud by NYS employees and others to obtain federal Medicaid funds. The federal criminal laws violated are copied below. These criminal frauds have been a continuing problem in NY State as this blog had earlier reported:
1. Was Cuomo MIA With A $1.2 Billion Per Year Fraud? http://cuomotarp.blogspot.com/2010/09/was-cuomo-mia-with-12-billion-per-year.html
2. An additional $400 million dollars in NY Medicaid fraud and Cuomo MIA http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-corruption-allowed-400.html
Eric Holder* has known since 1993 of New York State's complicity in defrauding the Federal government since Holder was a US attorney for D.C. and signatory to the "Denoncourt" consent order where New York State paid the U.S. $26.97 Million To Settle federal funding fraud.
http://www.justice.gov/opa/pr/Pre_96/December94/725.txt.html
Holder was covering up for Cuomo as Deputy Attorney General for the $17 billion and then $59 billion dollars missing at HUD under Cuomo and his refusal to prosecute despite the recommendation of the the Inspector General and also, the Farkas scandal and the GAO reported HUD mortgage flipping frauds .
http://thekomisarscoop.com/2006/08/fees-for-our-friends-the-scandal-that-taints-andrew-cuomo/
http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-predatory-heart-of.html
http://www.villagevoice.com/2006-08-29/news/andrew-cuomo-s-2-million-man/
Eric Holder must appoint a Special Prosecutor because of 1. his continuing conflicts; 2. his failure to act on this continuing crime for 18 years involving the highest levels of NY State government; and 3. his long history of failing to prosecute crimes involving Andrew Cuomo. The NY offices of the US Attorneys have local conflicts which require a Special Prosecutor without ties to local interests and political figures.
Darrell Issa, Lamar Smith, Paul Ryan, Harold Rogers and their committees in the House and the Senators above named and their committees are asked to look into these yearly thefts and frauds of more than a billion dollars a year. Medicaid block grants would shift this corruption directly to NY State and eliminate the over twenty years of fraud by NY State in the Medicaid program. Why was Eric Holder unable to prosecute and obtain refunds, even with a prior "Denoncourt consent decree" signed by Holder at Justice Department years ago?
Andrew Cuomo must make a budget deduction of $3 billion dollars for these frauds, as $3 billion dollars less Medicaid funds will be received by NY State and make contingencies for the larger potential $22 billion cost.
Sincerely yours,
CuomoTARP.blogspot.com
*In 1988, Ronald Reagan appointed Holder to serve as a judge of the Superior Court of the District of Columbia. Holder left the bench in 1993 to become US Attorney for the D.C. by Bill Clinton. The Denoncourt action was brought in D.C.. Holder was the US Attorney for D.C. and oversaw the case from 1993 through the settlement order in 1994. In 1997, Clinton nominated Holder to be the Deputy Attorney General.
cc: others, credit rating agencies
P.S. the above links can be accessed directly in the copy of this letter at CuomoTARP.blogspot.com
Federal Title 18 Crimes committed by NY State Employees and others:
§1035. False statements relating to health care matters
Whoever, in any matter involving a health care benefit program, knowingly and willfully— (1)falsifies, conceals, or covers up by any trick, scheme, or device a material fact; or makes any materially false, fictitious, or fraudulent statements or representations, or makes or uses any materially false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry, in connection with the delivery of or payment for health care benefits, items, or services, shall be fined under this title or imprisoned not more than 5 years, or both.
§1031. Major fraud against the United States
Whoever knowingly executes, or attempts to execute, any scheme or artifice with the intent— to defraud the United States; or to obtain money or property by means of false or fraudulent pretenses, representations, or promises, in any grant, contract, subcontract, subsidy, loan, guarantee, insurance, or other form of Federal assistance, ..., if the value of such grant, contract, subcontract,subsidy,loan, guarantee,insurance,or other form of Federal assistance, or any constituent part thereof, is $1,000,000 or more shall, subject to the applicability of subsection (c) of this section, be fined not more than $1,000,000, or imprisoned not more than 10 years, or both.
§286. Conspiracy to defraud the Government with respect to claims
Whoever enters into any agreement, combination, or conspiracy to defraud the United States, or any department or agency thereof, by obtaining or aiding to obtain the payment or allowance of any false, fictitious or fraudulent claim, shall be fined under this title or imprisoned not more than ten years, or both.
§287. False, fictitious or fraudulent claims
Whoever makes or presents to any person or officer in the civil, military, or naval service of the United States, or to any department or agency thereof, any claim upon or against the United States, or any department or agency thereof, knowing such claim to be false, fictitious, or fraudulent, shall be imprisoned not more than five years and shall be subject to a fine in the amount provided in this title.
§1621. Perjury generally
who having taken an oath before a competent tribunal, officer, or person, in any case in which a law of the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true, willfully and contrary to such oath states or subscribes any material matter which he does not believe to be true; or in any declaration, certificate, verification, or statement under penalty of perjury as permitted under section of title 28, United States Code, willfully subscribes as true any material matter which he does not believe to be true; is guilty of perjury and shall, except as otherwise expressly provided by law, be fined under this title or imprisoned not more than five years, or both.
§1622. Subornation of perjury
Whoever procures another to commit any perjury is guilty of subornation of perjury, and shall be fined under this title or imprisoned not more than five years, or both
To: Eric Holder, US Attorney General,
Darrell Issa, Chair House Oversight and Government Reform; Lamar Smith, Chair House Judiciary; Patrick J. Leahy, Chair Sen. Judiciary; Charles E. Grassley, Sen. Judiciary; Paul Ryan, Chair House Budget; Harold Rogers, Chair House Appropriations; Kent Conrad, Chair Sen. Budget; Jeff Sessions, Sen. Budget; Daniel K. Inouye,Chair Sen. Appropriations; Thad Cochran, Sen. Appropriations; Tom Harkin, Chair Sen. Health; Michael B. Enzi, Sen. Health.; and Andrew Cuomo, NY Governor.
Re: Multi-billion dollar fraud: Special Prosecutor required for the Major Criminal Fraud by NY State officials and others taking billions of dollars a year in federal Medicaid funds. Eric Holder and the NY Offices of the US Attorney have failed to prosecute and obtain refunds. Holder has an 18 year history of covering up for Andrew Cuomo when billions of dollars are missing. Congressional oversight of the Justice Department is needed. Congress must end misappropriations and deduct past fraudulently obtained funds from present appropriations. Block grants would shift policing to the State. Andrew Cuomo must adjust his 2011-2012 budget for that refund and remove such anticipated funds from 2011-2012 budget ($3 billion dollars added to budget deficit)
Dear Federal Officials and Governor Cuomo:
The following newspaper reports show massive, in excess of $1 billion dollars, fraudulent criminal taking of federal funds by NY State
1. "Daily rate for Medicaid patients tops $5,000 in nine institutions in NY and was described as a "cash cow for the State." "Introne, Gov. Andrew Cuomo’s liaison, said state officials were working with the U.S. Centers for Medicare and Medicaid Services “to analyze and resolve the matter."
http://www.poughkeepsiejournal.com/article/20110402/NEWS01/110402002/Daily-rate-for-Medicaid-patients-tops-5-000?odyssey=tab%7Cmostpopular%7Cimg%7CFRONTPAGE
2. It was reported in Wall Street Journal that, "The state spends $700 million a year to house about 1,400 disabled people in the facilities. But it bills Medicaid more than three times that amount. By taking advantage of federal matching funds, the state pockets approximately $1 billion extra every year—and uses it to subsidize other areas of the budget."
And 3. $22 billion dollar fraud as NYS Keeps Getting Caught For Committing Fraud, But There Never Seems to Be Any Consequences
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/
These are criminal fraud by NYS employees and others to obtain federal Medicaid funds. The federal criminal laws violated are copied below. These criminal frauds have been a continuing problem in NY State as this blog had earlier reported:
1. Was Cuomo MIA With A $1.2 Billion Per Year Fraud? http://cuomotarp.blogspot.com/2010/09/was-cuomo-mia-with-12-billion-per-year.html
2. An additional $400 million dollars in NY Medicaid fraud and Cuomo MIA http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-corruption-allowed-400.html
Eric Holder* has known since 1993 of New York State's complicity in defrauding the Federal government since Holder was a US attorney for D.C. and signatory to the "Denoncourt" consent order where New York State paid the U.S. $26.97 Million To Settle federal funding fraud.
http://www.justice.gov/opa/pr/Pre_96/December94/725.txt.html
Holder was covering up for Cuomo as Deputy Attorney General for the $17 billion and then $59 billion dollars missing at HUD under Cuomo and his refusal to prosecute despite the recommendation of the the Inspector General and also, the Farkas scandal and the GAO reported HUD mortgage flipping frauds .
http://thekomisarscoop.com/2006/08/fees-for-our-friends-the-scandal-that-taints-andrew-cuomo/
http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-predatory-heart-of.html
http://www.villagevoice.com/2006-08-29/news/andrew-cuomo-s-2-million-man/
Eric Holder must appoint a Special Prosecutor because of 1. his continuing conflicts; 2. his failure to act on this continuing crime for 18 years involving the highest levels of NY State government; and 3. his long history of failing to prosecute crimes involving Andrew Cuomo. The NY offices of the US Attorneys have local conflicts which require a Special Prosecutor without ties to local interests and political figures.
Darrell Issa, Lamar Smith, Paul Ryan, Harold Rogers and their committees in the House and the Senators above named and their committees are asked to look into these yearly thefts and frauds of more than a billion dollars a year. Medicaid block grants would shift this corruption directly to NY State and eliminate the over twenty years of fraud by NY State in the Medicaid program. Why was Eric Holder unable to prosecute and obtain refunds, even with a prior "Denoncourt consent decree" signed by Holder at Justice Department years ago?
Andrew Cuomo must make a budget deduction of $3 billion dollars for these frauds, as $3 billion dollars less Medicaid funds will be received by NY State and make contingencies for the larger potential $22 billion cost.
Sincerely yours,
CuomoTARP.blogspot.com
*In 1988, Ronald Reagan appointed Holder to serve as a judge of the Superior Court of the District of Columbia. Holder left the bench in 1993 to become US Attorney for the D.C. by Bill Clinton. The Denoncourt action was brought in D.C.. Holder was the US Attorney for D.C. and oversaw the case from 1993 through the settlement order in 1994. In 1997, Clinton nominated Holder to be the Deputy Attorney General.
cc: others, credit rating agencies
P.S. the above links can be accessed directly in the copy of this letter at CuomoTARP.blogspot.com
Federal Title 18 Crimes committed by NY State Employees and others:
§1035. False statements relating to health care matters
Whoever, in any matter involving a health care benefit program, knowingly and willfully— (1)falsifies, conceals, or covers up by any trick, scheme, or device a material fact; or makes any materially false, fictitious, or fraudulent statements or representations, or makes or uses any materially false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry, in connection with the delivery of or payment for health care benefits, items, or services, shall be fined under this title or imprisoned not more than 5 years, or both.
§1031. Major fraud against the United States
Whoever knowingly executes, or attempts to execute, any scheme or artifice with the intent— to defraud the United States; or to obtain money or property by means of false or fraudulent pretenses, representations, or promises, in any grant, contract, subcontract, subsidy, loan, guarantee, insurance, or other form of Federal assistance, ..., if the value of such grant, contract, subcontract,subsidy,loan, guarantee,insurance,or other form of Federal assistance, or any constituent part thereof, is $1,000,000 or more shall, subject to the applicability of subsection (c) of this section, be fined not more than $1,000,000, or imprisoned not more than 10 years, or both.
§286. Conspiracy to defraud the Government with respect to claims
Whoever enters into any agreement, combination, or conspiracy to defraud the United States, or any department or agency thereof, by obtaining or aiding to obtain the payment or allowance of any false, fictitious or fraudulent claim, shall be fined under this title or imprisoned not more than ten years, or both.
§287. False, fictitious or fraudulent claims
Whoever makes or presents to any person or officer in the civil, military, or naval service of the United States, or to any department or agency thereof, any claim upon or against the United States, or any department or agency thereof, knowing such claim to be false, fictitious, or fraudulent, shall be imprisoned not more than five years and shall be subject to a fine in the amount provided in this title.
§1621. Perjury generally
who having taken an oath before a competent tribunal, officer, or person, in any case in which a law of the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true, willfully and contrary to such oath states or subscribes any material matter which he does not believe to be true; or in any declaration, certificate, verification, or statement under penalty of perjury as permitted under section of title 28, United States Code, willfully subscribes as true any material matter which he does not believe to be true; is guilty of perjury and shall, except as otherwise expressly provided by law, be fined under this title or imprisoned not more than five years, or both.
§1622. Subornation of perjury
Whoever procures another to commit any perjury is guilty of subornation of perjury, and shall be fined under this title or imprisoned not more than five years, or both
Will Andrew Cuomo Charm The Bond Market For The State With The Highest Debt Per Person?
The economic grim reaper has his eyes on New York as the most indebted per person State.
Did you think the debt problem at the federal level was bad? New York has the highest debt per person of US States at a total debt per person of $31,536 compared to USA debt per person of $44,805. Meanwhile, the Chinese and foreign barbarians are closing in on US bonds and the underlying State bonds, because of federal and state budget excesses. Low bond interest rates or selling a bond will be fond memories, because of excessive debt per person.
These are the reports from outside:
Think US Debt is a problem; look at the States
How NY's Madoff like assumption of 7.5% safe return on investments will creates a giant deficit.
US follows the path of Greece and Portugal
US dollar becoming toxic
US debt increases despite budget agreement.
Inflation to return
Gas prices inflate
Will Cuomo's charm help? Buy this bond at the old interest rate and a framed iconic picture of Andrew Cuomo with an aura and the words "More Than Just Hope" will be provided for personal devotional use.
Pension Debts And Warren Buffet Sink New York's Budget Into Huge Debt
The chickens come home to roost
New York's "Madoff-like" promised 7.5% safe return on pension investments chickens are headed home to roost. Warren Buffet says 6.0% would be a better rate. It is reported as "The State Pension Time Bomb" where, "Poor accounting rules and flagrant irresponsibility have sped up the states’ day of reckoning." This blog previously in November 2010 reported: link
Madoff had promised safe returns of 10% before the economic recession began. The SEC warns in its Ponzi Schemes – Frequently Asked Questions that Ponzi schemes share common characteristics:
High investment returns with little or no risk
Overly consistent returns.
Comptroller Di Napoli has reduced his hope to earn 8% percent a year to 7.5%. Except for Madoff, who guarantees a 7.5 percent safe rate of return? Or 7 percent? Or 6 percent? No junk bonds allowed. NY's real rate of return was less than 4% for ten years.
Even worse, NY's return for past 5 years was 01.1%. Link.
A report in the August issue of Governing, called New York State, the nationwide pension leader with Pension liability: $141 billion. The NY Times, agrees and had "How to Cheat a Retirement Fund", an "approach that assumes, as economists generally do, that even corporate accounting standards in this area are too lenient, public pension underfunding is about $3.5 trillion, or one-quarter of gross domestic product."
"Private pension plans must discount their liabilities based on a market rate—typically, a corporate or U.S. government bond rate—which is often much lower than the plans’ projected returns."
*Return US Treasury: 10-MONTH NOTE 10-15-2010 2.475%
There appears to be a large difference between 2.475% and 7.5% and DiNapoli's assumed drop from 8% to 7.5%.
Bottom line: New York's balance sheet is tipped by an unfunded pension liability of up to $143 billion dollars. Already, the New York Debt per person including local debt is $24,195. (For a family of four that is about $97,000.)
Now add another $143 Billion divided by 19.4 million (NY Population) to add another $ 7,341 to that $24,195.
NY State and local debt per person $24,195
NY unfunded pension debt per person $7,341
NY total debt per person $31,536
USA debt per person $44,805 (Dec 2010) Who would lend money to such a debtor?
Cuomo And Chief Judge Lippman Dance Around Phony Budget Numbers On The Albany Titanic Barge
"The worst enemies of the republic are the demagogue and the corruptionist." ~ T. Roosevelt
The Albany Follies Show continues:
Cuomo struts out looking tough by forcing a 7.5% decrease on Courts' budget. Chief Judge Lippman appears and releases a video, where “The consequences will be felt heavily on the public as well as on every other part of our state that depends on and is affected by the courts,” Lippman said. The first scene's script had Lippmann wanting only a 3.7% decrease and Cuomo wanting a 10% decrease and 7.5% compromise resulted. (Applaud, please)
But, the final scene has the surprise ending when,
1. Lippman expects a Commission to give raises to the 1,300 Judges, with pay for Supreme Court Judges rising from $136,700 to more than $179,000 or 31% increase or $48 million dollars in judicial salaries to added to Lippman's budget.
. 2. The Judges are also suing for $780 million in back pay to be added to Lippman's budget.
So the revised real Court budget arithmetic is: $2.7 billion this year; minus -$170 million by Cuomo; plus +$48 million in judicial salary increases; plus +$780 billion in back pay; or court budget increases by +$658 million dollars or a 25% increase.
P.S. Why did Cuomo drop the ball on Lippman? Andrew Cuomo had promised to clean out corruption in Albany and that is impossible if the New York Courts are run by a Crook as Chief Judge. See Chief Judge Lippman must step aside pending FBI probe.
Will Cuomo drop corruption ball link
And all of this is will be overshadowed by the $46 Billion New York State budget deficit disaster looming from the 2011-2012 Federal budget, "One of the new health-care reforms proposed by the GOP budget is converting the federal share of Medicaid—the federal-state program that provides health insurance to low-income people—into block grants to state governments."
Latest: Debt on Track to Hit 800 Percent of GDP; 'CBO Can't Conceive of Anyway' Economy Can Continue
The Albany Follies Show continues:
Cuomo struts out looking tough by forcing a 7.5% decrease on Courts' budget. Chief Judge Lippman appears and releases a video, where “The consequences will be felt heavily on the public as well as on every other part of our state that depends on and is affected by the courts,” Lippman said. The first scene's script had Lippmann wanting only a 3.7% decrease and Cuomo wanting a 10% decrease and 7.5% compromise resulted. (Applaud, please)
But, the final scene has the surprise ending when,
1. Lippman expects a Commission to give raises to the 1,300 Judges, with pay for Supreme Court Judges rising from $136,700 to more than $179,000 or 31% increase or $48 million dollars in judicial salaries to added to Lippman's budget.
. 2. The Judges are also suing for $780 million in back pay to be added to Lippman's budget.
So the revised real Court budget arithmetic is: $2.7 billion this year; minus -$170 million by Cuomo; plus +$48 million in judicial salary increases; plus +$780 billion in back pay; or court budget increases by +$658 million dollars or a 25% increase.
Final scene's tally: Lippman wins with +25%
Taxpayers out an additional $658 million dollars
Cuomo's exit speech says "don't blame me."
P.S. Why did Cuomo drop the ball on Lippman? Andrew Cuomo had promised to clean out corruption in Albany and that is impossible if the New York Courts are run by a Crook as Chief Judge. See Chief Judge Lippman must step aside pending FBI probe.
Will Cuomo drop corruption ball link
And all of this is will be overshadowed by the $46 Billion New York State budget deficit disaster looming from the 2011-2012 Federal budget, "One of the new health-care reforms proposed by the GOP budget is converting the federal share of Medicaid—the federal-state program that provides health insurance to low-income people—into block grants to state governments."
Latest: Debt on Track to Hit 800 Percent of GDP; 'CBO Can't Conceive of Anyway' Economy Can Continue
Federal Medicaid Block Grants Will Destroy Cuomo's Budget By $47 Billion Dollars
The party's over.
At least $46.8 billion dollars will be added to New York's Medicaid expenditures, when Congress in the next budget year beginning in October changes to a block grant for Medicaid as proposed in the next federal budget, and California will support block grants for Medicaid.
Last year's New York State's share of Medicaid expenditures was $13.8 Billion and the cap on next year's expenditure will be $15.1 Billion (+9.4%), which is matched by an equal contribution of $15.1 billion by NY Counties.
Here are the Medicaid comparisons by State.
Medicaid Cost Per Person Served, 1998
(Red States less than half New York's cost)
New York ~ $8,961
California $2,386
Washington $2,563
Oregon $3,652
Virginia $3,740
Florida $3,607
Texas $4,419
Illinois $4,435
Delaware $4,440
Michigan $4,494
Ohio $5,346
Massachusetts $6,870
Wisconsin $5,457
Pennsylvania $5,808
New Jersey $6,856
Rhode Island $6,603
If the federal Medicaid block grant rate is at the Texas rate per recipient (Texas $4,419), New York's Medicaid total Federal Reimbursement (State +County) will be reduced ($4,419 divided by $9,861 x $30.2 billion) to $13.6 Billion. But, New York's total predicted Medicaid expenditure (Federal+State+County) cap was $60.4 billion, or New York needs to find an additional ($60.4-$13.6) $46.8 billion dollars. And New York will find no sympathy or support from California for replacement with Medicaid block grants, as California will gain tremendously due to California's $2,386 lower rate.
Now add that $46.8 billion to all the delusional revenue predictions in Cuomo's budget. Will that additional $2,412 per person ($46.8 billion divided by NY population of 19.4 million) or $9,648 for a family of four be funded with new taxes or added to the New York's Debt per person including local debt of $24,195? Where will the Counties get their increased share? And this will be repeatedly added in future years.
link to poem
At least $46.8 billion dollars will be added to New York's Medicaid expenditures, when Congress in the next budget year beginning in October changes to a block grant for Medicaid as proposed in the next federal budget, and California will support block grants for Medicaid.
Last year's New York State's share of Medicaid expenditures was $13.8 Billion and the cap on next year's expenditure will be $15.1 Billion (+9.4%), which is matched by an equal contribution of $15.1 billion by NY Counties.
Here are the Medicaid comparisons by State.
Medicaid Cost Per Person Served, 1998
(Red States less than half New York's cost)
New York ~ $8,961
California $2,386
Washington $2,563
Oregon $3,652
Virginia $3,740
Florida $3,607
Texas $4,419
Illinois $4,435
Delaware $4,440
Michigan $4,494
Ohio $5,346
Massachusetts $6,870
Wisconsin $5,457
Pennsylvania $5,808
New Jersey $6,856
Rhode Island $6,603
If the federal Medicaid block grant rate is at the Texas rate per recipient (Texas $4,419), New York's Medicaid total Federal Reimbursement (State +County) will be reduced ($4,419 divided by $9,861 x $30.2 billion) to $13.6 Billion. But, New York's total predicted Medicaid expenditure (Federal+State+County) cap was $60.4 billion, or New York needs to find an additional ($60.4-$13.6) $46.8 billion dollars. And New York will find no sympathy or support from California for replacement with Medicaid block grants, as California will gain tremendously due to California's $2,386 lower rate.
Oh, somewhere in our favored land the sun is shining bright;
The band is playing somewhere, and somewhere hearts are light,
And somewhere men are laughing, and somewhere children shout;
But there is default in Albany — mighty Cuomo has struck outlink to poem
Cuomo Celebrates Before His Budget Revenue Forecasts Become Fantasies
Strike up the Band, Cuomo is now Captain of the New York's Titanic.
There is joy in the Albany Swamp as Andrew Cuomo Kisses And Makes Up With The Albany Swamp's Legislature Vermin, lobbyists, large contributors and Reprobate Politicians, and passes his budget
TAXPAYERS WATCH OUT!
Which one of them checked the revenue predictions in the Cuomo budget? Inflation has appeared and expected employment increases are unlikely. Which politician thinks the voters will be fooled when local taxes rise and judges get a pay raise?
Cuomo Budget's Hope had expected increased revenue from real estate transfer tax but apartment prices are falling.
Has Cuomo heard of the Domino effect where problems in Greece had spread to many other EU Countries. If California, or Illinois goes under, will New York with the highest debt per person in the US follow?
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