New York State Budget Director Reports A $ 2+ Billion Deficit That Must Be Considered Before Judges' Pay Raised 40% Or More

  "All animals are equal, but some animals are more equal than others," or judges deserve wage increases BUT you don't.

Or, New York's headed to default and the Judge's pay increase could be the final straw.

    New York State must learn that the bond market punishes prodigal State spending, whether it's a Country or New York State. "Early on Thursday morning, after seven hours of talks, Germany and France reached a common position on a second bailout of Greece but details of the accord were not revealed."

    While in Albany on 7/20/2011, New York State Budget Director, Robert Megna, told the Commission on Judicial Compensation that New York State has a 2+billion dollar deficit already and although the judges might demand, want or deserve more, New York State has run out of money.  The Commission heard lots of self-serving praise of NYS judges by lawyers and the judges themselves and how they needed or deserved a large raise.  And, the Commission heard of rampant corruption by NYS judges which was ignored both at the Appellate level and in the Court of Appeals and was covered up by the New York Commission Judicial Conduct headed by Robert Tembeckjian.  

     Near the end of Commission testimony, T. Finnan from CuomoTARP told the Commission that the NY State's deficit is more likely to be $5+ billion as a minimum.  With the judges expecting a raise to $194,000 to $220,000, Mr. Finnan pointed out the Governor claims only $170,050.   Mr. Finnan noted the Budget Director's earlier testimony about a $2+ billion deficit was just the beginning of the increasing deficit this year for NYS.  T. Finnan continued his testimony which paralleled his written submission copied below:

Some States have Surpluses While Cuomo Heads to Default With His Commission Considering 61% Raises For NY Judges on 7/20

Remember when, Gov. Cuomo, said he would cut his $179,000 salary by 5% to $170,050 and that he intended to reduce other salaries of the governor's staff, including the governor's secretary, counsel, director of state operations, counselor and chief of staff. Well things have changed and NY judges want $220,836 and Cuomo wants a commission of hacks to decide.
On Wednesday, July 20, 2011, the Commission to raise judges' pay will hold the only hearing.   Here's what they need to hear. Will judicial raises be the straw that breaks the camel's back? Cuomo has created another committee to do the dirty work of giving judicial raises of up to 61%, while Cuomo hides behind them grinning. While some States have budget surpluses, such as Indiana having $1.2 billion dollars, New York has smoke and mirrors hiding default or bankruptcy.  The Cuomo budget revenue predictions were all smoke without any fire and the $4.3 billion dollars expected in increased revenue has vanished with the smoke.
Earlier this year, the Cuomo Medicaid Redesign Team created smoke promising Medicaid savings, when all it did was to replace last year's NY State Medicaid expenditure of $13.8 billion with a cap on this year's expenditure at $15.1 billion, while forgetting that NY won't have the federal stimulus of $5.9 billion received last year.
Meanwhile Cuomo has used mirrors to divert attention from the recommendation of Chief Administrative Judge Ann Pfau to the 2011 Commission on Judicial Compensation to increase judicial pay up to 61%.    Cuomo needed the mirrors to not upset his negotiations with the peons, aka ordinary employees of NY State, to freeze wages for three years in a tentative, five-year contract agreement with Public Employees Federation.    In the Cuomo allegory of Animal Farm, Napolean, aka Andrew, will explain to the other lesser animals that "All animals are equal, but some animals are more equal than others," or judges deserve wage increases BUT you don't.
Judge Pfau goes on to spout about Fairness, Objectivity, Regularity and finally about Institutional Integrity.  But what Judge Pfau forgot was common sense.  New York State has run out of money, people are leaving the State because the taxes are too high and the employment possibilities shrinking.  While President Obama calls for shared sacrifice, NY Judges demand a 61% pay hike.

   The answers to the Judge Pfau's pleadings are:
1. Fairness must extend to all those lesser earning peons who don't want to pay Judges more and receive less for themselves.   Fairness to the People is restitution made to victims of judicial corruption.
2. Objectively, the peons don't trust the courts and its scandals and know why the reported 129,000+  complaints to ExposeCorruptCourts.blogspot.com were ignored.
3. The only Regularity in New York is more taxes, more corruption, more greed, more debt, and more people leaving the State.
4. The NY Court Institution is a joke.  The Chief Judge is charged with crimes.  The Center for Judicial Accountability documents the huge New York Judicial Corruption and says,“[no] mechanisms are in place and functioning to remove judges who deliberately pervert the rule of law and any semblance of justice and whose decisions are nothing short of ‘judicial perjuries’, being knowingly false and fabricated.  Such judges, willfully destroying the lives of countless New Yorkers, the wellbeing of our state, and our democracy as a whole, are unworthy of their current salaries and benefits – being paid by hardworking New Yorkers.”

   This Commission on Judicial Compensation is just another Cuomo "slight of hand" to divert blame from him and legislators.  What should the commission do about judicial raises in New York?   Don't give any raises.  New York Debt per person including local debt is $24,195. For a family of four that is about $97,000. link    The State will run out of money this year. Borrowing will become impossibly expensive.  Cuomo claims he should get only $170,050 to be Governor.

Greece is the harbinger of New York State to come.  The anger of the People will turn on the greedy Judges and their enablers, including this commission.   There is no money to pay these raises.  Only fools or scoundrels reward failure and wastefully spend other people's money.    For the sake and safety of the judges and yourselves, say, "judges, share the sacrifice; New York State is broke; the NY debt is already the largest in the USA; no raises, because the people and the ordinary NY State worker are not getting raises."
This Commission on Judicial Compensation is just another Cuomo "slight of hand" to divert blame from him and legislators.  What should the commission do about judicial raises in New York?   Don't give any raises. New York Debt per person including local debt is $24,195. For a family of four that is about $97,000. link    The State will run out of money this year.   Borrowing will become impossibly expensive.  Cuomo claims he should get only $170,050 to be Governor.

      Greece is the harbinger of New York State to come.  The anger of the People will turn on the greedy Judges and their enablers, including this commission.   There is no money to pay these raises.  Only fools or scoundrels reward failure and wastefully spend other people's money.    For the sake and safety of the judges and yourselves, say,"judges, share the sacrifice; New York State is broke; the NY debt is already the largest in the USA; no raises, because the people and the ordinary NY State worker are not getting raises."

Some States have Surpluses While Cuomo Heads to Default With His Commission Considering 61% Raises For NY Judges on 7/20

As I grow older I pay less attention to what men say.  I just watch what they do.  ~Andrew Carnegie
 A fool and his NY bond money will soon be parted by NY State.
     ~An angry mob won't hear your explanations.~

Remember when, Gov. Cuomo, said he would cut his $179,000 salary by 5% to $170,050 and that he intended to reduce other salaries of the governor's staff, including the governor's secretary, counsel, director of state operations, counselor and chief of staff.   Well things have changed and NY judges want $220,836 and Cuomo wants a commission of hacks to decide.

      On Wednesday, July 20, 2011, the Commission to raise judges' pay will hold its only hearing.   Here's what they need to hear. Will judicial raises be the straw that breaks the camel's back?  Cuomo has created another committee to do the dirty work of giving judicial raises of up to 61%, while Cuomo hides behind them grinning.  While some States have budget surpluses, such as Indiana having $1.2 billion dollars, New York has smoke and mirrors hiding default or bankruptcy.  The Cuomo budget revenue predictions were all smoke without any fire and the $4.3 billion dollars expected in increased revenue has vanished with the smoke.

     Earlier this year, the Cuomo Medicaid Redesign Team created smoke promising Medicaid savings, when all it did was to replace last year's NY State Medicaid expenditure of $13.8 billion with a cap on this year's expenditure at $15.1 billion, while forgetting that NY won't have the federal stimulus of $5.9 billion received last year.

     Meanwhile Cuomo has used mirrors to divert attention from the recommendation of Chief Administrative Judge Ann Pfau to the 2011 Commission on Judicial Compensation to increase judicial pay up to 61%.    Cuomo needed the mirrors to not upset his negotiations with the peons, aka ordinary employees of NY State, to freeze wages for three years in a tentative, five-year contract agreement with Public Employees Federation.    In the Cuomo allegory of Animal Farm, Napolean, aka Andrew, will explain to the other lesser animals that "All animals are equal, but some animals are more equal than others," or judges deserve wage increases BUT you don't.

     Judge Pfau goes on to spout about Fairness, Objectivity, Regularity and Institutional Integrity.  But what Judge Pfau forgot was common sense.  New York State has run out of money, people are leaving the State because the taxes are too high and the employment possibilities shrinking.  While President Obama calls for shared sacrifice, NY Judges demand a 61% pay hike.

     The answers to the Judge Pfau's pleadings are:
1. Fairness must extend to all those lesser earning peons who don't want to pay Judges more and receive less for themselves.   Fairness to the People is restitution made to victims of judicial corruption.
2. Objectively, the peons don't trust the courts and its scandals and know why the reported 129,000+  complaints to ExposeCorruptCourts.blogspot.com were ignored.
3. The only Regularity in New York is more taxes, more corruption, more greed, more debt, and more people leaving the State.
4. The NY Court Institution is a joke.  The Chief Judge is charged with crimes.  The Center for Judicial Accountability documents the huge New York Judicial Corruption and says,“[no] mechanisms are in place and functioning to remove judges who deliberately pervert the rule of law and any semblance of justice and whose decisions are nothing short of ‘judicial perjuries’, being knowingly false and fabricated.  Such judges, willfully destroying the lives of countless New Yorkers, the wellbeing of our state, and our democracy as a whole, are unworthy of their current salaries and benefits – being paid by hardworking New Yorkers.”

   This Commission on Judicial Compensation is just another Cuomo "slight of hand" to divert blame from him and legislators.  What should the commission do about judicial raises in New York?   Don't give any raises.  New York Debt per person including local debt is $24,195. For a family of four that is about $97,000. link    The State will run out of money this year.   Borrowing will become impossibly expensive.  Cuomo claims he should get only $170,050 to be Governor.

      Greece is the harbinger of New York State to come.  The anger of the People will turn on the greedy Judges and their enablers, including this commission.   There is no money to pay these raises.  Only fools or scoundrels reward failure and wastefully spend other people's money.    For the sake and safety of the judges and yourselves, say, "judges, share the sacrifice; New York State is broke; the NY debt is already the largest in the USA; no raises, because the people and the ordinary NY State worker are not getting raises."

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.

New York State Requires A $2,250 Per Year Household Tax Increase To Cover It's Pension Costs

              The Grim Economic Reaper's toll for public employee pension promises in New York and other states is available in 

The Revenue Demands of Public Employee Pension Promises

       by Robert Novy-Marx, University of Rochester/NBER

and Joshua D. Rauh, Kellogg School of Management/ NBER
         dated June 2011

The following tables are excerpted: (GSP = Gross State Product)


 Contributions, Payroll, and Revenues for State and Local Systems
Government Contributions Incl Social Security  
                    Total Payroll    Revenues % of GSP   per household

New York        $65.8  Billions        1.2%                  $1,738.8
Rhode Island      $2.4                  1.3%                    $1,557.3
Hawaii               $3.7                  1.1%                    $1,436.4
Virginia             $17.5                 1.0%                    $1,374.0
California        $108.1                 1.0%                    $1,368.8
Alaska                $2.3                 0.7%                    $1,234.7
Illinois              $29.3                 1.0%                    $1,215.3
New Mexico      $4.7                  1.2%                    $1,180.6
Nevada             $5.2                  0.9%                    $1,147.2
New Jersey     $26.9                  0.7%                    $1,078.0

Required Increases for Full Funding by State, No Policy Change
                      Gvt Contributions           Required Contribution Increase
             Current($B)  Total Required   Revenue % of GSP   per household
New Jersey $3.6           $11.9                           1.7%         $2,475
New York  $13.1          $30.0                           1.5%         $2,250
Oregon       $1.3           $4.4                            1.9%         $2,140
Wyoming    $0.2           $0.6                            1.2%         $2,080
Ohio           $3.1          $12.2                           1.9%         $2,051
California   $19.5         $47.8                            1.5%        $1,994
Minnesota   $1.7          $5.6                             1.5%        $1,928
Illinois        $6.0         $15.5                             1.5%        $1,907


        New York State is the overall winner, when you add the numbers from each table to get the total spending required. And things are worse than they appear because many of the households in New York don't pay taxes, so the $2,250 additional tax required per taxpaying household per year increases.  NY Comptroller reports 4.52 million residents out of the total 19.4 million NYS  population are Medicaid eligible and thus unable to contribute

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 here in New York, the taxpayers will strike out

The Cuomo Business Friendly Bubble Bursts

         New York beats out California
An asylum for the sane would be empty in NY State Government~Paraphrased from George Bernard Shaw

          Cuomo had promised to make New York State business friendly.   And Cuomo succeeded in beating California for next to last place in the rankings for States for doing business.    The ranking included the comment, "California is not unique in pursuing policies that prompt wealth and job creators to expand elsewhere, (New York being a good example)"    Andrew Cuomo's success was due to the following:

1. Cuomo's Pension Reform Is Too Little, Too Late And Fails To Solve New York's Huge Pension Debt Problem

or 2. NY Like NJ Forgot To Fund Retiree Health Benefits And NY Adds $56.3 Billion To Its Unfunded Liabilities

or 3. Will Andrew Cuomo Charm The Bond Market For The State With The Highest Debt Per Person?

or 4. Andrew Cuomo's Hope For Increased Tax Revenues Was False And He'll Run Out Of Cash

or 5. Cuomo's Budget Becomes A Joke As At Least $3.6 Billion Dollars Is Deducted From Illusional Tax Revenues As New York Unemployment Climbs In Every New York Metro District

or 6. Was it Bob Brinker's advice in Andrew Cuomo's Business Friendly Puff Pieces Fizzle As Reality And Medicaid Block Grants Close In?

    But do not fear, Cuomo has proclaimed he supports the Hope and Change policies at the Federal level that brought 9.2% unemployment. 
     "Gov. Cuomo today had kind words for President Obama’s economic policies despite news that unemployment is again on the rise... He will now turn his focus on the issue of “jobs, jobs, jobs” for New York....operational initiatives around economic development issues, and creating 'New York Open for Business' campaign."

    Meanwhile the Cuomo stooge at the NY Economic Development Agency became that same person who he had earlier described as "anyone proposing nano-scale technology in Syracuse should be taken out to the woodshed."

An asylum for the sane would be empty in NY State Government ~ Paraphrased from George Bernard Shaw 

Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries

Copy of letter faxed today.
CuomoTARP.blogspot.com                                                      July 12, 2011

To: Michele Bachmann, Ron Paul, Allen West, Thaddeus McCotter, US Representatives;  Rand Paul, David Vitter, Jim DeMint, Senators;
and Harry Reid, Majority Leader; Mitch McConnell, Minority Leader; John A. Boehner, Speaker; Eric Cantor, Majority Leader; 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; Chris Van Hollen, House Budget; Spencer Bachus,House Financial Services; Barney Frank, House Financial Services; Max Baucus, Sen. Finance; Chuck Grassley, Sen. Finance

Re: Save $200 billion dollars a year in Federal expenditures right now and reduce the need to borrow this money, right now.

Honorable Harry Reid, John A. Boehner and others in Congress:
                   Neither Republicans, nor Democrats need or want to fund Medicaid fraud.    It's time to stop these grandstanding predictions of spending cuts in the future, instead cut $200 billion a year, beginning right now.  All the data has been collected.   The witnesses and/or Cuomo or Eric Holder are knowledgeable for immediate action this week or next.  Eric Holder "maybe" prosecuting, but Andrew Cuomo, as former NY Attorney General defended the crooked NY State employees and knows where and who was taking the fraudulent money.

    Here's one example how $1 billion disappeared in one part of NY Medicaid fraud as 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."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories 
 
           Medicaid block grants would save $200 billion a year, while letting Cuomo deal with the NY State crooked employees already known to him.  NY State's corrupt stealing of Medicaid funds has gone on for years, since before 1994.   As described in prior faxes:   "In the case of NY, the Feds keep auditing NYS for fraud.  The frauds keep getting bigger and bigger and more and more secretive.  While NYS gets fined time and time again, the people running the fraud from the safety of their administrative offices  and under the protection of the NYS Attorney General who uses taxpayer money to defend these white collar government criminals who were ripping off the [Federal government]." 
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/

       "The scandal reaches into the upper levels of management for the SUNY Research Foundation and the state Health Department, according to sources briefed on the case. At stake is more than $22 billion in annual matching federal funds for Medicaid. "
http://www.timesunion.com/local/article/Feds-probing-Medicaid-fraud-at-SUNY-firm-557890.php

      
      Instead of waiting for Eric Holder, aka Gidot, to act, block grants would shift criminal prosecution responsibility to NY State, where Andrew Cuomo and the new AG, Scheiderman, can act as prosecutors, instead of defending the criminal conduct.   A quick action by Congress on a Medicaid funding change would save federal taxpayers $200 billion a year without affecting services to present beneficiaries and would eliminate massive fraudulent billing of Medicaid. In addition, it would save NY local taxpayers $32 billion dollars spent matching fraudulent NY State Medicaid claims.
http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html

         Follow the links in the June 27, 2011 letter attached below and use contact info for arranging testimony below.

      Sincerely yours,

CuomoTarp.blogspot.com

cc: others interested in congressional immediate action

attached:  June 27, 2011 letter to Congress as seen in blog post.

 

Save $2 Trillion Dollars In Federal Budget Right Now And Let Eric Holder Fumble Later With NY State Medicaid Fraud

Copy of letter faxed today.
CuomoTARP.blogspot.com     July 5, 2011

To: Michele Bachmann, Ron Paul, Allen West, Thaddeus McCotter, US Representatives;  Rand Paul, David Vitter, Jim DeMint, Senators;
and Harry Reid, Majority Leader; Mitch McConnell, Minority Leader; John A. Boehner, Speaker; Eric Cantor, Majority Leader; 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; Chris Van Hollen, House Budget; Spencer Bachus,House Financial Services; Barney Frank, House Financial Services; Max Baucus, Sen. Finance; Chuck Grassley, Sen. Finance

Re: Save $2 trillion dollars in Federal Budget right now and let Eric Holder fumble later with NY State Medicaid Fraud.   Follow up with links to the criminal investigation for recovering NY State's Institutionalized Medicaid fraud.  

Dear Congress:
                    NY State's corrupt stealing of Medicaid funds has gone on for years, since before 1994.     "In the case of NY, the Feds keep auditing NYS for fraud.  The frauds keep getting bigger and bigger and more and more secretive.  While NYS gets fined time and time again, the people running the fraud from the safety of their administrative offices  and under the protection of the NYS Attorney General who uses taxpayer money to defend these white collar government criminals who were ripping off the [Federal government]." 
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/

       "The scandal reaches into the upper levels of management for the SUNY Research Foundation and the state Health Department, according to sources briefed on the case. At stake is more than $22 billion in annual matching federal funds for Medicaid. "
http://www.timesunion.com/local/article/Feds-probing-Medicaid-fraud-at-SUNY-firm-557890.php

      Instead of waiting for Eric Holder, aka Gidot, to act, block grants would shift criminal prosecution responsibility to NY State, where Andrew Cuomo and the new AG, Scheiderman, can act as prosecutors, instead of defending the criminal conduct.   A quick action by Congress on a Medicaid funding change would save federal taxpayers $200 billion a year without affecting services to present beneficiaries and would eliminate massive fraudulent billing of Medicaid. In addition, it would save NY local taxpayers $32 billion dollars spent matching fraudulent NY State Medicaid claims.
http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html

         Follow the links in the June 27, 2011 letter attached below and use contact info for arranging testimony below.

      Sincerely yours,

CuomoTarp.blogspot.com

cc: others interested in congressional immediate action

attached:  June 27, 2011 letter to Congress as seen in blog post below.

Wake Up Time For Time For Congress To Save $200 Billion And End Known NY Fraud

   As a follow up to the post below and because the Senate will be in session next week as per Harry Reid, the following fax is being sent to others in Congress and outside in addition to those named in the prior fax. 

Copy of Letter faxed:
CuomoTARP.blogspot.com     July 1, 2011

To: Michele Bachmann, Ron Paul, Allen West, Thaddeus McCotter, US Representatives;  Rand Paul, David Vitter, Jim DeMint, Senators;
and Harry Reid, Majority Leader; Mitch McConnell, Minority Leader; John A. Boehner, Speaker; Eric Cantor, Majority Leader; 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; Chris Van Hollen, House Budget; Spencer Bachus,House Financial Services; Barney Frank, House Financial Services; Max Baucus,Sen. Finance;Chuck Grassley, Sen. Finance

Re: Saving $200 billion a year and $2 trillion dollars over ten years, without harming poor beneficiaries and eliminating fraud.   Witnesses, documentation and court filings available for quick action next week.

Dear Congress:
                    Harry Reid has brought the Senate back next week and the budget deficit must be the target for action.  A quick action on a Medicaid funding change would save federal taxpayers $200 billion a year without affecting services to present beneficiaries and would eliminate massive fraudulent billing of Medicaid. In addition, it would save NY local taxpayers $32 billion dollars spent matching fraudulent NY State Medicaid claims.

         Follow the links in the June 27, 2011 letter attached below and use contact info for arranging testimony below.

      Sincerely yours,

CuomoTarp.blogspot.com

cc: others interested in congressional immediate action

attached:  June 27, 2011 letter to Congress as seen in blog post below.

Congress Informed Of $2 Trillion Dollars Budget Savings Without Harming Medicaid Needy While Ending State Fraud

Copy of Letter faxed:
CuomoTARP.blogspot.com    June 27, 2011

To: Harry Reid, Majority Leader; Mitch McConnell, Minority Leader; John A. Boehner, Speaker; Eric Cantor, Majority Leader; 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; Chris Van Hollen, House Budget; Spencer Bachus,House Financial Services; Barney Frank, House Financial Services; Max Baucus,Sen. Finance;Chuck Grassley, Sen. Finance

Re: Saving $2 trillion dollars over ten years or $200 billion a year, without harming poor beneficiaries and eliminating fraud.   Witnesses and documentation available for quick action.

Dear Congress:
                    A chance to save $2 trillion dollars over ten years without harming any needy beneficiaries of Medicaid.  A quick action on a Medicaid funding change would save federal taxpayers $200 billion a year without affecting services to present beneficiaries and would eliminate massive fraudulent billing of Medicaid. In addition, it would save NY local taxpayers $32 billion dollars spent matching fraudulent NY State Medicaid claims.

        Medicaid Block Grants can be enacted with payments at the same average present rate for all States. In NY State, the major beneficiary of Medicaid fraud is NY State itself. Andrew Cuomo, who was NY Attorney General litigating these frauds, is aware of the fraud perpetrators in NY State.

        Eric Holder, 18 years ago as DOJ Attorney for the District of Columbia in 1994, obtained a refund of $26.97 million dollars from NY State.    But, Holder has been unable to make any progress for the last two years on the massive NY Medicaid fraud. NY State's twenty year spree of stealing from the Medicaid trough can be ended with block grants which will save $200 billion a year in federal expenditures or $2 trillion dollars over ten years. And, a side effect would save DOJ expenditures litigating against NY State. A prodigal NY State could then straighten out its own corruption.    Other States with honest dealings, such as California, will receive increases.

   Witnesses and documentation are available for immediate hearings and action.  Below are links to my blog CuomoTarp.blogspot.com where additional information is available, specifically involving NY Medicaid fraud and its costs.

Sincerely yours,

CuomoTarp.blogspot.com

Links to further data:

1. Congress Is Informed Of NY Medicaid Corruption Results in Death And Beatings

Copy of letter sent:
CuomoTARP.blogspot.com                June 10, 2011

http://cuomotarp.blogspot.com/2011/06/congress-is-informed-of-ny-medicaid.html

2.   Congress Asked To Seek Special Prosecutor For Multi-Billion Dollar NY Medicaid Fraud By State Employees

Copy of letter sent:
CuomoTARP.blogspot.com                May 23, 2011

http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html

  

3.  Medicaid Block Grants Would Save NY Taxpayers $32 Billion Dollars Without Affecting Services To Present Beneficiaries

Letter to Congress:
   CuomoTARP.blogspot.com         BY FAX                         5/12/2011

http://cuomotarp.blogspot.com/2011/05/medicaid-block-grants-would-save-ny.html

4.   News Reports Of NY Medicaid Excesses And Block Grants Will Sink Cuomo's Budget Into $32 Billion Dollar Default.

      "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."

http://cuomotarp.blogspot.com/2011/04/news-reports-of-ny-medicaid-excesses.html

5.  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


   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. 

 http://cuomotarp.blogspot.com/2011/04/three-billion-dollar-medicaid-fraud-by.html

New York Heads for Default/Bankruptcy Following Greece's and Italy's Path

     Answer the simple questions and see if NY Debt Default or bankruptcy is inevitable.
First facts: QE 2, the buying of federal debt ends this month and the US Treasury Bond market will lose its largest purchaser and the Chinese are not going to step in.    Link 1
 Question 1. When bond buyers disappear, must bond rates be raised?
 Question 2.  When US bonds rates go up, what happens to NY State Bond rates?
 Question 3.  Will Congress save $200 billion a year with no effect on beneficiaries by going to Medicaid block grants in September?     link 2

Fact: Neither Greece nor Italy can print money, because they have the euro and NY is not allowed to print money.  Question 4. What's the difference between Greece or Italy and NY State when both spend more than they can pay back?   link 3  link 4

 Fact: Angela Merkel, German Chancellor, said Germans don't want to pay for Greeks to retire at 51.  

Question 6.Will other States want to fund NY's Medicaid excesses used for non-Medicaid purposes.

Fact: NY has the highest of any US State total of $27,097 State and local debt per person or $108,388 for a family of four.

Question 7. Will higher Debt drive out more tax paying NY residents and retirees as recommended by Bob Brinker? 
Question 8. What interest rate will be charged NY State with the highest debt per person?
Question 9. Where will Cuomo get the $47 billion dollars to cover NY Medicaid excesses?   link 5

The Laws of Gravity or The Laws of Economics in the end are always obeyed.  You reap what you sow and the Piper must in the end be paid.   
Who'll lend this money, which we can't pay back, Andrew? 

Congress Is Informed Of NY Medicaid Corruption Results in Death And Beatings

Copy of letter sent:
CuomoTARP.blogspot.com                June 10, 2011

To: 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.;  Chris Van Hollen, House Budget;  Spencer Bachus, House Financial Services; Barney Frank, House Financial Services; Max Baucus, Sen. Finance; Chuck Grassley Sen. Finance

Re: Follow up and confirmation by NY Times of death, beatings and billing excesses funded with Medicaid which Congress must end with block grants which would shift policing to the State.


Dear Congressmen:
      The NY Times has confirmed that New York State has
1. "tolerated physical and psychological abuse, knowingly hired unqualified workers, ignored complaints by whistle-blowers and failed to credibly investigate cases of abuse and neglect, according to a review by The New York." Times of thousands of state records and court documents, along with interviews of current and former employees."
2. "These [NY] institutions spend two and a half times as much money, per resident, as the thousands of smaller group homes that care for far more of the 135,000 developmentally disabled New Yorkers receiving services."
http://www.nytimes.com/2011/06/06/nyregion/boys-death-highlights-crisis-in-homes-for-disabled.html?_r=1

      Most of these abuses were known to then Attorney General Andrew Cuomo and were defended by NY State in court actions. Presently there is federal court action in northern district of NY involving false claims for Medicaid submitted by NY State.using its SUNY Division.

1.SUNY RESEARCH FRAUD http://www.timesunion.com/default/article/Public-school-private-dealings-1403960.php

2. SUNY RESEARCH - also cited for covering up $22 billion medicaid fraud
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/

3. This was not SUNY RESEARCH'S First Go-around with Fraud.
http://oig.hhs.gov/oas/reports/region2/29302006.pdf

     While NY State and its present Governor and former Attorney General were well aware of these frauds, he did not end them, nor prosecute. As reported to you earlier and published on this blog, Medicaid block grants would let NY deal with its corruption, rather than profit from the criminal false filings by NY state officials.
http://cuomotarp.blogspot.com/2011/05/medicaid-block-grants-would-save-ny.html

      Medicaid Block Grants would save NY taxpayers $32 billion dollars and federal taxpayers $200 billion without affecting services to present beneficiaries and eliminate massive fraudulent billing of Medicaid. Are Governor Cuomo's rewards to his faithful contributors to be funded with fraudulent Medicaid funds obtained by NY State?
http://www.nydailynews.com/news/politics/2011/06 /05/2011-06-05_andy_giveth_show_govs_top_donors_cash_in_with_plum_appointments.html

     Let Andrew Cuomo clean his own house with his own money and let the federal government save $200 billion in its budget.

                        Sincerely yours,

                   CuomoTarp.blogspot.com

Congress Asked To Seek Special Prosecutor For Multi-Billion Dollar NY Medicaid Fraud By State Employees

Copy of letter sent:
CuomoTARP.blogspot.com                May 23, 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.;  Chris Van Hollen, House Budget;  Spencer Bachus, House Financial Services; Barney Frank, House Financial Services; Max Baucus, Sen. Finance; Chuck Grassley Sen. Finance

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.

Re: Congress must end misappropriations and deduct past fraudulently obtained funds from present appropriations. Block grants would shift policing to the State.

Dear Congress and Eric Holder:

There is a severe problem in NY State, which has four Federal Court districts, and a conflict of interest by lawyers working for the US Justice Department who may wish to move into the NY private sector at more pay.   The Medicaid fraud is reported as a scheme to extract federal Medicaid funds for non Medicaid uses by the State of New York. Such a fraud would involve the highest levels of NYS Government and with the knowledge of the NYS Attorney General, who was Andrew Cuomo. The loss of these fraudulently obtained funds would have a severe effect on NYS finances and could lead to default. Eric Holder's Justice Department has not obtained any cash refunds to the federal government for the frauds reported below.

1. The Times Union reported, "A federal grand jury is continuing to examine allegations that state Health Department managers may have conspired with the Research Foundation for the state University of New York to manipulate audits of New York's $22 billion a year Medicaid program. .... The investigation is centered on a federally mandated program that requires states to randomly audit their Medicaid programs to determine the rate of ineligible recipients of Medicaid benefits. ... Several people who formerly worked for the Research Foundation have alleged that their audits were deliberately sanitized so that New York state would not be penalized for excessive error rates that could have led to New York being penalized or not receiving all or part of approximately $22 billion in federal matching funds.
http://www.timesunion.com/local/article/Were-state-audits-faked-598325.php#ixzz1MeoogW5n

2. "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

3. 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."

http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories

4. $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/ 

5. 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

6. An additional $400 million dollars in NY Medicaid fraud and Cuomo MIA  http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-corruption-allowed-400.html 

7. 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 

8. 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 and the conflicts of Justice department attorneys ; 2. his failure to act on this continuing crime for 18 years by NYS 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.

Solutions: 1. Use Medicaid block grants to shift this corruption directly to NY State and eliminate the over twenty years of fraud by NY State in the Medicaid program.

2. Have Eric Holder explain why he has failed to prosecute and obtain refunds, even with a prior   "Denoncourt consent decree" signed by Holder at Justice Department years ago.

3. I and others are ready to help Congress with testimony and data to end this massive fraud within NYS Medicaid and assist in making sure that the proper refunds are made.

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.



P.S. 1. the above links can be accessed directly in the copy of this letter at CuomoTARP.blogspot.com
2. Others have reported these frauds in letters to Congress.
3. The need for Block Grants and a bankruptcy for States proposed law were in earlier letters to Congress and available at these links:
http://cuomotarp.blogspot.com/2011/04/three-billion-dollar-medicaid-fraud-by.html
http://cuomotarp.blogspot.com/2011/05/medicaid-block-grants-would-save-ny.html
http://cuomotarp.blogspot.com/2011/01/bankruptcy-cat-is-out-of-bag-and-some.html

Federal Title 18 Crimes committed by NY State Employees and others:

§1035. False statements relating to health care matters
§1031. Major fraud against the United States
§286. Conspiracy to defraud the Government with respect to claims
§287. False, fictitious or fraudulent claims
§1621. Perjury generally
§1622. Subornation of perjury

Cuomo's Pension Reform Is Too Little, Too Late And Fails To Solve New York's Huge Pension Debt Problem

Cuomo's acting is full of sound and fury and accomplishes nothing to solve already existing Pension Debts.   Can you do that song and dance routine again, Andy?  Or is the stale Albany dog and pony act next?

      Andrew Cuomo prances in the limelight futility attempting to close the Pension Barn Door after the pension dollars were already legally given away.    Cuomo failed to propose and begin in the NY Legislature the passage of a repeal of NY Constitutional Amendment §7.    Fixing the future is good, but ignoring the existing pension debt burden is a disaster.

     Cuomo's latest pension proposals to "increase the retirement age to 65 ...end early retirement, force employees to pay twice as much toward their pension, and end the “padding” of pensions through overtime pay, sick time and other means" will do nothing for any of the budget catastrophes described in this blog already.  All the debts, unfunded liabilities, and other improperly accounted budget items continue to insure default or bankruptcy.
Specifically,
1. NY forgot to fund $53 Billion in retiree health benefits. link 1
2. Block grants for Medicaid will cost NY $32 Billion dollars a year. link 2
3. $3 Billion in NY State Medicaid fraud must be refunded to the Federal government link 3
4. New York has the highest debt per person of US States at a total debt per person of $31,536, which must be added to USA debt per person of $44,805.  Now, multiple this total by four for a family of two adults and two children.   link 4
5. New York's unfunded pension liability of $143 billion dollars is combined with a Madoff-style assumption that 7.5% will be safely earned on pension investments when the latest return is 1.1%. link 5
6. Cuomo's budget had a fantasy forecast for increased tax revenues. link 6
7. Cuomo forgot he has to pay the federal government back $3.6 billion which was borrowed last year to fund unemployment benefits and is due by November of this year.  link 7
8. Cuomo's plan to attract business fizzles because of more taxes due next year for business. link 8
9. The young workers that Cuomo hopes to keep are planning to flee NY's taxes and dying business opportunities. link 9

      Bankruptcy is the only way out for New York, because of its Constitutional protection for pensions in NY Constitution § 7. ...membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired.

Proposed federal bankruptcy laws are described in this blog at link 9, link 10, link 11

Your act is over, Andrew, and the handwriting was on the wall in November.  link 12

Medicaid Block Grants Would Save NY Taxpayers $32 Billion Dollars Without Affecting Services To Present Beneficiaries

Letter to Congress:

   CuomoTARP.blogspot.com         BY FAX                         5/12/2011
               To:  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;  Daniel K. Inouye  Chair Sen. Appropriations

Re: Save $200 billion at federal level by block granting Medicaid money to NY and not harm nor eliminate services for poor NY Medicaid recipients, while ending massive over-billing fraud by NY State.

Re: Block granting will save local NY property taxpayers $8 billion, because NY splits its Medicaid expenses 50/50 with the Counties.

Dear Sirs:
      This blog has reported:   "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 its Medicaid corruption out of its budget and tax revenue. New York's Medicaid is capped at $60.4 billion. So calculating, we have $28.38 billion (1,364 divided by 2,903 x $60.4 billion) as block grant eligible total Medicaid expense.  Thus, New York would reduce its total Medicaid expenditure by $32 billion ($60.4 billion - $28.4 billion) of fraud and/or false or excessive billing.


       New Yorkers cannot afford to pay its average cost of all government benefits in New York at $9,442 per person.  New York has the highest state and local debt of $31,536 which must be added to USA debt per person of $44,805.   For New Yorkers, it's a combined local, State and Federal debt of $76,341 per person.  link 1

 
    The following newspaper reports show many billions of dollars of 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://lonelyconservative.com/2011/04/new-yorks-per-diem-medicaid-rate-four-times-higher-than-other-states/  link 0 
    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."

http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories   link 1

   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/   link 2

     Using #2 above as an example, we determine that NY spends per these Medicaid recipients: $500,000 ($700 million divided by 1,400 people).  If instead, these recipients were in a NY nursing home, where the daily rates range from a high of $376 to a low of $253 (link 3),  and a full time aide was assigned for two eight hour periods at $30 per hour total cost for $480 a day.  The combined cost per recipient would be a maximum of $856 per day or $312,440  a year.   But most recipients would not need so much attention and the Medicaid federal reimbursement rates for NY nursing homes are much lower than the average nursing home rates used.

      Summary for this example:  NY bills Medicaid for $1.5 million per these Medicaid recipients for services which could be better supplied at a maximum $312,440 per recipient or at one fifth the cost.

      Worse still for NY residents, NY State uses this excess Medicaid billing to bill its Counties and ultimately their property taxpayers for these fraudulent and excessively expensive services, which do nothing for the Medicaid recipient, but do enrich the State's bloated government.

   Conclusion: Block granting Medicaid to the States would be a giant benefit for NY taxpayers, have no effect on services provided to Medicaid beneficiaries and would substantially reduce Federal expenditures by $16 billion dollars a year for just NY State.  A rough estimate could be made by using one half ($8 billion) of the NY share of excess of $16 billion federally paid expenditure and multiplying it by half the number of states (25 states would be over the median Medicaid reimbursement rate).   The federal government would save a minimum $200 billion per year or about a minimum 14% of this year's projected deficit ($1.4 trillion) without harming Medicaid recipients.

    And collaterally, you would save the NY property taxpayers $8 billion dollars a year, which is approximately 45 percent of property tax levy  (link 4)     While at the same time, benefiting 25 States, including California, which would be rewarded for their honest services

                                     Sincerely yours,

                                    CuomoTARP.blogspot.com

CC: others

link 0
http://lonelyconservative.com/2011/04/new-yorks-per-diem-medicaid-rate-four-times-higher-than-other-states/
link 1
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
link 2
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/%20
link 3
http://www.health.state.ny.us/facilities/nursing/estimated_average_rates.htm
link 4
http://uticadailynews.com/election_releases/17474-Hawkins-Outlines-Plan-Reduce-Local-Property-Taxes-for-State-Takeover-Medicaid-More-State-Funding-for-Schools-Opposes-Property-Tax-Cap.html

NY Like NJ Forgot To Fund Retiree Health Benefits And NY Adds $56.3 Billion To Its Unfunded Liabilities

   The Ithaca Journal falsely reports,"New York's [pension]plans aren't underfunded."   They must be comparing with the pending NJ disaster of a $120 billion dollar pension shortfall.  But NY pensions assume a 7.5% return on pension assets when they only earned 1.1%.  NY's unfunded pension debt is estimated at $143 billion dollars.   When NJ defaults, NY would soon follow.

     But what about funding retiree health benefits liability.  Pew reports, "States had only about $31 billion, or 5 percent, saved toward their obligations for retiree health care benefits."    NY had $56.3 billion dollars in retiree health benefits unfunded and according to Pew had 0.0% in its retiree health benefits funding account.   While NJ had $66.7 billion in retiree health benefits, also funded at 0.0%.

     New Yorkers now have another $56.3 billion dollars divided by 19.4 million NY population = $2,902 debt per person to add to the already calculated $24,195 State and local debt per person (link). We have a new higher total of $27,097 State and local debt per person or $108,388 for a family of four.

      Is the NY pot blacker than the NJ kettle?   Will investors want NY bonds or NJ bonds?  Neither NJ or NY can't withdraw from the USA like Greece and issue their own worthless currency to pay off its bondholders. 
  
      But in Albany, the thinking is, "What debt crisis?  Our pensions are 100% funded, aren't they?  We can fund retiree health benefits next year, right?  Andrew Cuomo has brought Hope and Change and balanced the budget, right?" Although, Andrew Cuomo had promised to throttle lobbyists in NY, "Spending on lobbying in New York tops $200 million in 2010."   And lobbyists are controlling his committees. 

  Meanwhile out in the cruel dark financial world outside Albany, China is reducing its holding of US debt.  link to China and NY debt      link to NY bondholders lose big in NY bankruptcy/default

And now the Chinese Debt Master holds the ball, and now he lets it go,

And now the air is shattered by the force of Cuomo's blow.

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,  the mighty Cuomo has struck out.


link to poem

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

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