Small Business Health Insurance Policies Disappear Under Cuomo

Whither Greece goes, so will Cuomo's New York

(Papandreou to resign in failure)

    Greece like New York with its "Son of Mario" legacy governor and Greece's son and grandson of the great socialist leader, Papandreou, head in the same direction, until they like Margaret Thatcher said, "run out of other people's money."  Andrew Cuomo's socialist health hacks are controlling medical insurance prices and coverage and small business health insurance policies are to disappear in 2012.  Is this Cuomo's business friendly and small business workers friendly health insurance policy?  Empire Blue Cross Blue Shield notified brokers that it is cutting the number of health insurance plans it offers to small groups as of April 1, 2012...    Empire will only offer expensive, noncompetitive products to New York City small businesses with between two and 50 workers. 'They will pull the majority of sellable products, and the four or five left are all ones people don't really care about,” 

       Small business workers will run out of their money getting health insurance.   Andrew Cuomo has added unaffordable health insurance costs on top of the highest debt per person of State and local debt, the second highest taxes per person for all States and the largest number of taxpayers leaving the State because of taxes.
Andrew Cuomo, your dream is dead and the people can't afford you.
Business Friendly, are you kidding Andrew?

Legacy government leaders?

Whither Greece?

And wait til New Yorkers have to pay for Cuomo with high interest rates like Italy and Greece.

Cuomo Quixote's Windmills Go Bust In Lake Erie

Don Andrew Cuomo's Glorious Quest to be "El Presidente" requires windmills to be conquered. The peasants and their businesses will thank him for making them pay the added costs for Wind Power.  Business friendly, peasant friendly, green friendly, a shining knight and Champion for all.

Don Quixote in Madrid

     Cuomo's Power Authority's fresh water watermills went bust when the New York Power Authority pulled the plug on the offshore wind farm project, NYPA officials said it wasn’t “fiscally prudent” because even a 150-megawatt project – on the small side of the agency’s guidelines–would require subsidies of $60 million to $100 million a year. That was two to four times the subsidy a similarly sized land-based wind farm would require to be economically feasible.  “A larger project would just yield a larger subsidy,”  But the subsidy wouldn’t have just lasted for a year or two. NYPA would have paid them for 20 years. So on even a small-scale project, it would have cost $1.2 billion to $2 billion in subsidies over 20 years just to make the project work financially.
     So the brilliant Power Authority trustees are launching a new push for a big wind farm off the Long Island shore, where the demand for electricity is greater.  Will the Don Cuomo tilt more money at these salt water windmills?  Don Cuomo is so greenly correct.  Could Don Cuomo deny the glorious future of wind energy?   Pick up the green lance and charge past the failure of salt water windmills in Spain.  Don Cuomo's Glorious Quest includes being a champion for the Lady Green.   Windmills will be conquered and made to serve for all.   Damn the cost to reap the glory. 

Wanna buy some NY Power Authority Bonds, cheap?

See: New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee?

New York Exodus As Tax Payers Flee At The Highest Rate In USA. 

  Small-business lobbyist Mike Durant noted, New York has "consistently ranked worst or in the top three worst in business climate. You can't suck every penny out of people and expect them to remain in New York."

New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee?

Who pays the bonds off, when the taxpayers flee.

     Did the media (including Fox News), the politicians of both parties and the media pundits lie to you that the US would/could default on its debt?   Alan Greenspan said on Sunday,""The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default."

  Are New York politicians or the sycophant New York media to be trusted?   Will New York debt be downgraded?  Unlike the federal government, New York can quickly default.

     Here's a buyer's guide to New York State bonds or more likely a seller's guide:
   
1.NY Businesses Howl At $21.25 Per Worker, While Cuomo's Budget Will Require An Additional $478 Per Worker In November.   

2.   New York State has the highest debt per person in the USA ($24,195) and the second highest taxes per person ($6,884).   Andrew Cuomo's Budget director says, he has no ability to finance spending commitments already.  This was recorded at a 7/20/2011 hearing of Cuomo's Commission on Judicial Compensation: "We don't even have the ability to finance the spending commitment that are already in place, said Robert L. Megna, who was speaking on behalf of Governor Andrew Cuomo, who appointed three of the commission's seven members."

3. Cuomo's New York Comes In Second To New Jersey For The Most Taxes Per Person.  New York's Taxes paid by residents as percentage of income are 12.1%   "The state [NY] has one of the highest state and local tax collections per capita, an average of $6,884.     According to the Census Bureau, the top ten counties in the U.S. with the highest property taxes as a percentage of home values are all in New York."

4. Rating Agencies Informed As Cuomo's Budget's Imagined $ 4.3 Billion In Revenue Increases Disappears

a. The Cuomo Business Friendly Bubble Burst, when NY was ranked 49th out of 50 States as Business Friendly.   While the Cuomo stooge at the NY Economic Development Agency described his own policy as "anyone proposing nano-scale technology in Syracuse should be taken out to the woodshed."

b. Cuomo's expected tax revenues took another dive into red ink with latest report.  "A gauge of manufacturing in New York State showed the sector unexpectedly contracted for the second month in a row as new orders worsened, while core inflation rose at its highest pace in three years."


c.  This business contraction affects the revenue increases which finance Cuomo's spending.  Cuomo had balanced his budget with imagined revenue increases and Cuomo used temporary sources for 14.7% of his budget revenue, such as, Federal stimulus money (threatened in present federal debt debate), "voluntary contributions" from NY Power Authority and other authorities (they'll charge you higher rates) and delaying paying NY State Income Tax refunds.

d. Cuomo's unrealized revenue fantasies reported by the Comptroller include:
    i. Personal Income tax receipts in 2011-2012 will increase $2.9 billion or 7.9% (but decreased employment reported)
    ii. User taxes and fees (sales and tobacco taxes)will increase $467 million or 3.3 % (but tobacco tax increase will fail link 1  link 2 and workers earning less or unemployed spend less)
   iii. Business taxes will increase $894 million or 12.3% (but business declines)
   iv. Payroll Tax will increase $63 million or 4.6%  (but, rising unemployment including State layoffs decrease payrolls)
  A budget shortfall of $4.3 billion dollars must be borrowed this year.


5.  New York Pension Books are Cooked

6. 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."

7. 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.

8. Cuomo failed to budget in the required repaying of the federal government for Medicaid frauds. This is minimally estimated at $6.4 billion.



Finally, 9. Who'll repay the bonds? New York Exodus As Tax Payers Flee At The Highest Rate In USA.    New York State businesses also will flee.   Small-business lobbyist Mike Durant noted, New York has "consistently ranked worst or in the top three worst in business climate. You can't suck every penny out of people and expect them to remain in New York."

cc: Moody's, Fitchs , Standard and Poors 

NY Businesses Howl At $21.25 Per Worker, While Cuomo's Budget Will Require An Additional $478 Per Worker In November

Andrew Cuomo promised Hope, Change and Business Friendly.

  New York businesses are howling because "The state is subsequently levying an "Interest Assessment Surcharge," which is based on a percentage of total taxable wages paid between October 2009 and September 2010.  The maximum of $21.25 per worker applies to any employee making more than $8,500 yearly. The levy applies to every employer, including non-profits and local governments."

  Wait till they get the bill for $478 per worker required in November because Cuomo did not fund repaying loans for unemployment insurance from the federal government in the NY state budget.

In the picture, note that the man in white is stealing from the man watching.  He is looking skyward to cause others to look up instead of at the deceivers. link

  What will the illusionist, Andrew Cuomo, do with the Unemployment debt of $3.3 Billion dollars borrowed from the federal government, which he must repay this year, which was forgotten in his budget?   As of January 21, 2011, New York State, one of 30 States, borrowed $3,343,758,375.70 from the federal government for paying Unemployment Insurance.  Six States, Maryland, New Hampshire, South Dakota, Tennessee and Texas, have repaid their loans in full.  Since Cuomo didn't budget for this in his budget, he must be planning to pass it through to NY businesses at an average $478 per worker due from employers.

http://cuomotarp.blogspot.com/2011/02/cuomos-smoke-and-mirrors-will-allow.html

Cuomo's New York Comes In Second To New Jersey For The Most Taxes Per Person

Wanna buy a New York bond? a bridge?

     First, New York State and Cuomo lost out to California for the most "business unfriendly State,"  as The Cuomo Business Friendly Bubble Bursts.   Then New York State and Cuomo lost out to New Jersey by a small margin as the State where residents pay the most in taxes. New York's Taxes paid by residents as percentage of income are 12.1%   "The state [NY] has one of the highest state and local tax collections per capita, an average of $6,884.     According to the Census Bureau, the top ten counties in the U.S. with the highest property taxes as a percentage of home values are all in New York."
 
  New York State and Cuomo come in first with New York Debt per person including local debt at $24,195. For a family of four about $97,000.  Which is the largest debt of any State in the USA.

     "S&P said then there was "at least" a one-in-two chance that it would cut its US rating within the next 90 days, an act that would almost certainly send Washington's cost of borrowing shooting up."  "A downgrade of the US sovereign rating, or a "selective default" rating on its bonds, could also force the downgrade of the ratings of individual states and local governments."

    New York State's budget has at least an unanticipated $2 billion dollar deficit according to State Budget Director.   Unlike Washington D.C. where money can be printed, New York State must borrow.

    How will NYS repay in November the Unemployment Insurance: State Trust Fund Loans of $3,176,873,427.71 ; that's $3.1 billion?

 What happens when New York's bond rate rises?   NY's borrowing costs go up from $5.6 Billion to $18.8 Billion? 

     Which State's bonds will be downgraded first? Bankruptcy will come to look attractive, but Congress must act first. 
                            

Rating Agencies Informed As Cuomo's Budget's Imagined $ 4.3 Billion In Revenue Increases Disappears

Charles Dickens advises Andrew Cuomo:  Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.


     Poor Andrew Cuomo praised Obama's economic policies this month, but Cuomo does not have Obama's ability to print money to accommodate revenue shortfalls.   When Cuomo's budget doesn't get enough revenue, he must borrow or increase taxes and those nasty bond purchasers will demand higher interest rates.

      First, The Cuomo Business Friendly Bubble Burst, when NY was ranked 49th out of 50 States as Business Friendly.   While the Cuomo stooge at the NY Economic Development Agency described his own policy as "anyone proposing nano-scale technology in Syracuse should be taken out to the woodshed."  Then, Cuomo's expected tax revenues took another dive into red ink with latest report.  "A gauge of manufacturing in New York State showed the sector unexpectedly contracted for the second month in a row as new orders worsened, while core inflation rose at its highest pace in three years."

       This business contraction affects the revenue increases which finance Cuomo's spending in his budget.  The Comptroller in his "Report on the State Fiscal Year 2011-2012" says a "structural imbalance" exists because general fund spending growth is still more than double projected revenue growth.  Cuomo had balanced his budget with imagined revenue increases and Cuomo used temporary sources for 14.7% of his budget revenue, such as, Federal stimulus money (threatened in present federal debt debate), "voluntary contributions" from NY Power Authority and other authorities (they'll charge you higher rates) and delaying paying NY State Income Tax refunds.  Cuomo's unrealized revenue fantasies reported by the Comptroller include:
1. Personal Income tax receipts in 2011-2012 will increase $2.9 billion or 7.9% (but, see decreased employment reported above)
2. User taxes and fees (sales and tobacco taxes)will increase $467 million or 3.3 % (but, see tobacco tax increase will fail link 1  link 2 and workers earning less or unemployed spend less)
3. Business taxes will increase $894 million or 12.3% (but, see above business results)
4. Payroll Tax will increase $63 million or 4.6%  (but, rising unemployment including State layoffs decrease payrolls)
The total fantasy budget's revenue increases of $4.3 billion dollars will not materialize.  A budget shortfall of $4.3 billion dollars must be borrowed this year.

     When Cuomo borrows this $4.3 billion, will the bond rating agencies downgrade NY debt and force up borrowing costs in the Cuomo budget, or will they understand that Cuomo meant well?  What will happen when those other things that Cuomo forgot to fund in his budget need borrowing to fund them, such as:
1.  New York Pension Books are Cooked
2  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.
3. 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."
4. 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.
5. Cuomo failed to budget in the required repaying of the federal government for Medicaid frauds. This is minimally estimated at $6.4 billion.
6. Cuomo forgot what happens when New York's bond rate rises and NY's borrowing costs  move up from $5.6 Billion $18.8 Billion. 

     All of the above ignores the Medicaid fraud by NY State, which Cuomo defended as NY Attorney General, and which, if Congress block grants Medicaid, Cuomo could immediately end.   See letters to Congress on this blog.  link 1     link 2

    The following letters were sent to the ratings agencies:
Letters by registered mail:  CuomoTARP.blogspot.com   July 18, 2011

To: Moody's Investors Service Inc.
101 Federal Street, Suite 1900
Boston, MA 02110

Standard And 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:
    Attached is a copy of the latest 7/18/2011 post on CuomoTarp.blogspot.com.    The Financial Crisis Inquiry Commission established  by Congress had 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.    There will be lots of angry NY State Bond Holders who will look for compensation for your scienter (knowing) neglect and/or malfeasance, if you fail to act appropriately.        
         NY Debt per person including local debt for a family of four is about $97,000 (the highest in the USA).    Bob Brinker already recommended seniors leave the high tax States.   You need to protect NY State Bondholders with truthful ratings

      Also consider the Letters to Congress on this blog dated July 12, 2011 and May 23, 2011 which show a proven moral hazard and criminality in NY State Government and the likelihood of financial fraud.

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: Blog post dated July 18, 2011

P.S. Tomorrow's 7/19 post will concern more lack of fiscal irresponsibility by NY Government and its committees and the costs thereof which must be borrowed in this fiscal year.

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

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

 
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

Andrew Cuomo's Business Friendly Puff Pieces Fizzle As Reality And Medicaid Block Grants Close In

The February 7, 2011 post is updated, condensed and Medicaid Block Grant Implications added:   Updates are in purple.

Andrew Cuomo's Business Friendly Puff Pieces Fizzle As Reality Closes In

 Oh what a tangled web we we weave, when first we practice to deceive ~ Shakespeare

    Andrew Cuomo's business friendly with no tax increases puffing is about to burst.   His lackeys got puff pieces in the Wall Street Journal describing Cuomo as a “national spokesman for fiscal sanity” and in the National Review entitled “Cuomo the Conservative”   Cato Institute was fooled with "Cuomo the Conservative." 
They forgot Ronald Reagan's, "Trust, but verify."


   As of January 21, 2011, New York State, one of 30 States, borrowed $3,343,758,375.70 from the federal government for paying Unemployment Insurance.  Six States, Maryland, New Hampshire, South Dakota, Tennessee and Texas, have repaid their loans in full.    And since Cuomo didn't budget for this in his budget, he must be planning to pass it through to NY businesses. From NY Dept. of Labor, "the numbern average $478 per worker is due from employers."  How much more is New York borrowing this year to add to this $478 per worker?   Is this NY as business friendly?

       Did Cuomo fool his conservative/tea party supporters by having only a property tax cap passed by his request in the NY Senate?    Not really, when a County's Medicaid share is to rise 9.4%.   Where's the money coming from?  "UNYTEA’s Board of Directors has voted unanimously to endorse Governor Cuomo’s proposal for a 2% cap on property taxes, but only if it is accompanied by mandate relief."    And there is a $100 million dollar surcharge tax on medical procedures. passed on through business health insurance premiums

 Now a wake up call concerning Medicaid block grants and the Government posts biggest monthly deficit ever.


     Cuomo's budget plan calls for $30.2 billion to be given to New York by federal government for Medicaid.  New York matches this with $15.1 billion contribution by the State and a $15.1 billion paid by NY Counties paid in property taxes.   New York's 2008 Medicaid per person is $8,961 and the average State per person is $4,307.   If the federal government were generous and gave Medicaid Block grants at the rate received by the average State, NY would receive 4,307 divided by 8,961 x $30.2 Billion = $14.5 Billion.   New York budgets $60.4 billion, so $60.4 minus $14. 5 billion = $44.9 billion additional to be spent out of State money.  And if the federal Government were very frugal and used California's per person rate of $2,386, the block grant would be $8.04 billion  and $50.36 billion additional would need be spent out of State money. 
Any wise businessman would run for the border.



        Ian Welsh describes Cuomo and his cronies as "the people who hollowed out the US economy and caused the financial crash don’t pay the price of their evil, but in fact stay in charge of society despite causing a Depression and being  bankrupt."   Welsh asks, "Andrew Cuomo: stupid or evil?"   It doesn't matter, because he won't continue to fool people for much longer. 


      Bob Brinker, this weekend, after hearing of all the great retirements for government employees, now recommends that people move out of the high tax States with cooked Pension books.     Who's going to be left to pay for Cuomo's plans?  Medicaid recipients, government workers?   So the advice for residents of  budget challenged States is dump their bonds and move out. 
     
   So the advice for residents is to move out and dump the bonds and Andrew Cuomo and his deceived media calls this "Business Friendly."