Thank God, Prince Cuomo is the government dream that New Yorkers want and they deserve to get it good and hard ~ H. L. Mencken adopted
A New York Fiscal Conservative
versus Vermont Liberals
Here are the words about Fiscal Conservative Cuomo on the reopening Rt. 73 in the Adirondacks:
(Although, New York State and local government will pay 25% or more)
"he does not foresee the state having to borrow any money to pay for the cleanup and recovery."
"Cuomo's office inventoried what it took to get both lanes open by Monday: approximately 150,000 tons of stone; a total of 2,700 man-hours of labor; as well as a squadron of trucks, excavators, rollers and tree-removal machinery."
“government actually worked”
(Cuomo shows his toughness and leadership qualities.)
"people jump when the governor says jump."
"either wheels are going to roll or heads are going to roll."
He gave out T-shirts with 'Governor Andrew Cuomo's Labor for your Neighbor Hurricane Clean-Up Team'
(Cuomo overrules the civil engineers.)
"initial analysis projected the repairs taking two months"
"7 days after the Governor promised the highway would be open in 10 days, Rt. 73 reopened".
Here are the Liberals speaking in Vermont:
"I think the worst thing that we could do for policy-wise or as a state government is to go in and throw money after something where we really haven't made a full assessment in doing that. I think that's where you end up throwing good money after bad," said Sen. John Campbell, D-Vt. President Pro Tem
Governor Shumlin says sorting out the costs and who ends up paying for what could take months. "We're in a long marathon here, not a sprint,"
After the voters pay the bills, will they want more of Shumlin and Campbell's liberal frugality or Cuomo's conservative prodigal style?
Perhaps, Cuomo should have heeded that note from his remedial arithmetic tutor.
Dear Andrew,
1. Bye, bye, balanced New York State budget.
New York economy takes MULTI-BILLION hit from Irene on vital weekend... as experts warn U.S. clean-up cost will outstrip Katrina
2. In construction, the rule is measure twice and cut once.
3. In finance, it's figure the cost first, find the cash second and then spend third.
4. Where are you or the counties or the towns going to get the money? The tooth fairy doesn't have that 25% share.
5. Did you ask why civil engineers would allow time for compaction of fill material?
6. Overtime and double overtime is expensive and a wise man does his arithmetic.
7.Are these roads just going to be rebuilt in the Spring, because of haste now?
Finally, 1+1=2 applies to thousands and millions and billions of dollars.
Check out: New York Taxpayers Find The Local Tax Cap And Balanced Budget Were Only To Fool The Suckers
Congressional Super Debt Committee Receives Plan to Reduce Medicaid by $2 Trillion Dollars Without Harming Beneficiaries
A Fax sent to the Joint Select Committee on Deficit Reduction on Sunday evening September 11, 2011
To: Sen. Patty Murray, Co-Chairwoman Joint Select Committee on Deficit Reduction; Sen. Max Baucus of Montana; Sen. John Kerry; Sen. Jon Kyl of Arizona; Sen. Pat Toomey; Sen.Rob Portman and
Rep. Jeb Hensarling, Co-Chairman Joint Select Committee on Deficit Reduction; Rep.Fred Upton; Rep. Jim Clyburn; Rep. Dave Camp; Rep.Xavier Becerra; Rep. Chris Van Hollen.
Re: Proposed law for Easy Debt Reduction with Medicaid beneficiaries unharmed. Save $200 billion dollars a year, right now, and reduce the need to borrow and save $2 Trillion in ten years.
The winners: USA taxpayers, California and 24 other States, NY State's local taxpayers
The losers: crooked state employees, other Medicaid fraudsters/profiteers.
Score unchanged: Medicaid recipients
Honorable Senators and Representatives on the Joint Select Committee on Deficit Reduction and others in Congress:
Senator Kerry asked for suggestions to reduce debt. Obama wants you to reduce debt by an additional $450 billion dollars and wasn't specific, leaving the details to your committee. But this proposal is specific. Here is a plan to reduce debt right now, with $200 billion this year and $2 trillion in ten years. Since neither Republicans, nor Democrats need or want to fund Medicaid fraud, this Committee can cut $200 billion a year without harming the needy on Medicaid. Medicaid block grants will shift responsibility for fraud control to the States. Andrew Cuomo and Eric Holder are knowledgeable of the billions of dollars frauds reported below. And you would reward California, as well as saving municipal and local/county New York State taxpayers the cost of matching the fraudulent money taken.
The Wall Street Journal reported how $1 billion disappeared in one part of NY Medicaid fraud; "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 on just this one item—and uses it to subsidize other areas of the budget."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
Proposed law: Each state shall receive a block grant for all said state's Medicaid costs determined by multiplying the number of Medicaid recipients in the year 2010 in said State by the average of the rates paid in 2010 year to the 25th and 26th ranked states when all the states are ranked in order by their average Medicaid per recipient of federally received Medicaid money.
Such Medicaid block grants at the median rate of the present Medicaid grants would save $200 billion a year ($2 trillion dollars in ten years) and shift responsibility for overcharges, frauds and other misuse of Medicaid funds to the individual States. In example: in New York State, let Andrew 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 are 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
Block grants at the present median rate 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 of State employees in federal court. A State like California and 24 others would benefit from this change.
http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html
With block grants, beneficiaries would be unharmed as money received is comparable and greater than in 25 states, such as California. Medicaid benefits per individual would remain above the amount paid in California, which State we know is not stingy with helping the needy, The spendthrift States could then police their own Medicaid expenditures, while federal dollars for federal investigations and funding for the Justice Department investigations would be reduced.
This letter is a condensed recap of an earlier post on CuomoTARP.blogspot.com entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries which is included with this fax and has links for confirming data. Another post, dated July 5, 2011, was sent to Congress and dealt with the need for Federal prosecution to get back the money already stolen: Save $2 Trillion Dollars In Federal Budget Right Now And Let Eric Holder Fumble Later With NY State Medicaid Fraud
Witnesses available.
Sincerely yours,
CuomoTarp.blogspot.com,
[please access web site for working links]
cc: 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; Chuck Grassley, Sen. Finance
To: Sen. Patty Murray, Co-Chairwoman Joint Select Committee on Deficit Reduction; Sen. Max Baucus of Montana; Sen. John Kerry; Sen. Jon Kyl of Arizona; Sen. Pat Toomey; Sen.Rob Portman and
Rep. Jeb Hensarling, Co-Chairman Joint Select Committee on Deficit Reduction; Rep.Fred Upton; Rep. Jim Clyburn; Rep. Dave Camp; Rep.Xavier Becerra; Rep. Chris Van Hollen.
Re: Proposed law for Easy Debt Reduction with Medicaid beneficiaries unharmed. Save $200 billion dollars a year, right now, and reduce the need to borrow and save $2 Trillion in ten years.
The winners: USA taxpayers, California and 24 other States, NY State's local taxpayers
The losers: crooked state employees, other Medicaid fraudsters/profiteers.
Score unchanged: Medicaid recipients
Honorable Senators and Representatives on the Joint Select Committee on Deficit Reduction and others in Congress:
Senator Kerry asked for suggestions to reduce debt. Obama wants you to reduce debt by an additional $450 billion dollars and wasn't specific, leaving the details to your committee. But this proposal is specific. Here is a plan to reduce debt right now, with $200 billion this year and $2 trillion in ten years. Since neither Republicans, nor Democrats need or want to fund Medicaid fraud, this Committee can cut $200 billion a year without harming the needy on Medicaid. Medicaid block grants will shift responsibility for fraud control to the States. Andrew Cuomo and Eric Holder are knowledgeable of the billions of dollars frauds reported below. And you would reward California, as well as saving municipal and local/county New York State taxpayers the cost of matching the fraudulent money taken.
The Wall Street Journal reported how $1 billion disappeared in one part of NY Medicaid fraud; "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 on just this one item—and uses it to subsidize other areas of the budget."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
Proposed law: Each state shall receive a block grant for all said state's Medicaid costs determined by multiplying the number of Medicaid recipients in the year 2010 in said State by the average of the rates paid in 2010 year to the 25th and 26th ranked states when all the states are ranked in order by their average Medicaid per recipient of federally received Medicaid money.
Such Medicaid block grants at the median rate of the present Medicaid grants would save $200 billion a year ($2 trillion dollars in ten years) and shift responsibility for overcharges, frauds and other misuse of Medicaid funds to the individual States. In example: in New York State, let Andrew 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 are 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
Block grants at the present median rate 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 of State employees in federal court. A State like California and 24 others would benefit from this change.
http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html
With block grants, beneficiaries would be unharmed as money received is comparable and greater than in 25 states, such as California. Medicaid benefits per individual would remain above the amount paid in California, which State we know is not stingy with helping the needy, The spendthrift States could then police their own Medicaid expenditures, while federal dollars for federal investigations and funding for the Justice Department investigations would be reduced.
This letter is a condensed recap of an earlier post on CuomoTARP.blogspot.com entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries which is included with this fax and has links for confirming data. Another post, dated July 5, 2011, was sent to Congress and dealt with the need for Federal prosecution to get back the money already stolen: Save $2 Trillion Dollars In Federal Budget Right Now And Let Eric Holder Fumble Later With NY State Medicaid Fraud
Witnesses available.
Sincerely yours,
CuomoTarp.blogspot.com,
[please access web site for working links]
cc: 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; Chuck Grassley, Sen. Finance
The Conservative Darling, Andrew Cuomo, Praises Government And Is Unharmed In Weekend Shootings
Thank God, Prince Cuomo is the government dream that New Yorkers want and they deserve to get it good and hard ~ H. L. Mencken adopted
Listen to 57 seconds of our Prince Andrew, the fiscal Conservative, the Progressive, the lover of government, the lover of immigrants and Dauphin in waiting to be our King and President.
I am government and government is good
And to highlight the success of NY government's Prince Cuomo in protecting us: In spite of 48 people being shot and "a shooting a few blocks off the route of the annual West Indian Day Parade... [which] left two police officers wounded and three people dead Monday," our great Prince was protected his armed Police and left safely.
Then, that same little boy who embarrassed the Emperor asked:
How come you and Bloomberg have guns protecting you?
Who'll keep us safe from your abuses?
Discrimination against immigrants; how about discrimination against taxpayers?
Who in government should we thank for our failing schools?
Who's climbing the government rungs of opportunity in your Hoods?
Isn't the enemy of President Obama, the truth?
Why do taxpayers pay more than a tithe at 12.1% to New York? link
Why do I have the highest State debt per person in the USA? link
Why do taxpayers flee your government paradise? link
Why do businesses think you're unfriendly? link
What happened to that $76 billion dollars you misplaced? link
Who made you Prince? Your daddy?
A Cuomo Hack Involved When $17 Billion Was Missing, Followed The Next Year By A Missing $59 Billion At HUD Is Running Hurricane Irene Recovery
Those who cannot remember the past are condemned to repeat it. ~ George Santayana
Did Cuomo and his lawyer, Glaser, reach their level of incompetence at HUD with $76 Billion in missing money? ~ Peter Principle
Andrew Cuomo gave his old HUD hack, Howard Glaser, aka State Directer of Operations, control of the Irene repair effort. "Glaser, who served as Cuomo's Deputy Counsel during his tenure as President Bill Clinton’s HUD secretary, said the governor’s experience on the federal level was and will be brought to bear throughout the storm and recovery."
This is how Cuomo handled public money:
"In fiscal year 1998, HUD had “undocumentable adjustments” of $17 billion: that is, $17 billion could not be accounted for. In fiscal 1999, HUD announced that it required $59 billion of “undocumentable adjustments” to balance the books and that it would not provide audited financial statements as required by law."
The "compassionate" Cuomo did not want those taking any of the $59 billion to suffer a government witch hunt and so, "Cuomo did not order the HUD Inspector General to investigate the reason for the missing billions or to try to get the money back."
Who's watching Howard Glaser and our money this time?
Did Cuomo and his lawyer, Glaser, reach their level of incompetence at HUD with $76 Billion in missing money? ~ Peter Principle
 |
| Where the $76 billion dollars went |
The people should know that Cuomo's experience on the federal level was a fiscal disaster. "When Cuomo became HUD Secretary in 1997, he axed a federal program that had saved the U.S. $2.2 billion between 1994 and 1997 and reinstituted a system that lost the government money while earning billions for favored friends. That wasn’t the only big money lost. When Cuomo was secretary, HUD reported that $59 billion was missing! It couldn’t say where they money went, because it failed to produce audited financial statements. The Department of Housing and Urban Development is renowned for corruption. Historically, fraud has been so pervasive and blatant that the Sopranos episode on it was disturbingly realistic."
"In fiscal year 1998, HUD had “undocumentable adjustments” of $17 billion: that is, $17 billion could not be accounted for. In fiscal 1999, HUD announced that it required $59 billion of “undocumentable adjustments” to balance the books and that it would not provide audited financial statements as required by law."
The "compassionate" Cuomo did not want those taking any of the $59 billion to suffer a government witch hunt and so, "Cuomo did not order the HUD Inspector General to investigate the reason for the missing billions or to try to get the money back."
Who's watching Howard Glaser and our money this time?
Prodigal Andrew Cuomo Is Spending And Spending
The Albany Follies Show's expenses continue their steep climb. Where will Cuomo get the money, when Cuomo and Silver hacks give 27% raise to judges over three years. That was slightly less than the 31% expected by Chief Judge Lippman as reported here in Cuomo And Chief Judge Lippman Dance Around Phony Budget Numbers On The Albany Titanic Barge which described The earlier Albany Follies Show as:
New York Taxpayers Find The Local Tax Cap And Balanced Budget Were Only To Fool The Suckers
Didn't Cuomo promise local taxes would be capped at 2%?
Did Cuomo insert a weasel clause in his tax cap?
What balanced budget? Will more taxpayers flee?
Weasel ~ n. 2. a treacherous or sneaky person. Did Cuomo insert a weasel clause in his tax cap?
What balanced budget? Will more taxpayers flee?
Weasel out ~v. to back out of a situation in a sneaky or cowardly manner
The pension funding tax increases faced by schools due to Comptroller DiNapoli's decrees that were reported previously on this blog in Smoke And Mirrors As DiNapoli And Cuomo Hide Pension Costs While Schools Will Need Contribute 54% Of Salary To Pension Funds, are now being reported for municipalities. New York State Comptroller Thomas DiNapoli decrees state and local governments will cough up more money for their workers' pensions. The average contribution rate to the state pension fund for public workers will rise from 16.3 percent of salaries to 18.9 percent. The average for the police and fire retirement system will rise from 21.6 percent to 25.8 percent. The Comptroller admitted that "the Common Retirement Fund has had two consecutive years of strong investment returns. However, we are still incorporating the market loss of 2008-09 into our employer contribution rates." The Comptroller continued with, "It's true the contribution rates are going up and that's a consequence of the severe market decline in 2008 and 2009, but the good news is that we're on the road to recovery, and if you look at the long history of the fund, we've always weathered difficult economic times — we'll get through this tough time as well,"
Local taxpayers discover Cuomo inserted weasel clauses in his local property cap so that schools and "municipalities could pass some of the higher pension costs on to property taxpayers because the state's new property tax cap has an exclusion for part of the pension hikes." And so Cuomo has an excuse which he forgot to mention when he was prancing about congratulating himself on not raising taxes. "The Cuomo administration argued the exemption balances out the damage done by the 2008 financial crisis, which made less pension fund money available. With less money from the fund, localities are forced to fill the gap."
Now, hold your wallet really tightly
Cuomo forgot to include in his NY State budget increasing state worker pension contributions by 3.6%. Now, add this to the judges' raises Cuomo's committee will add today at their final meeting.
[Link to judges' salary and Cuomo.]
When will Comptroller DiNapoli and Cuomo tell us that NY State, its schools and local governments need to fund their retiree health benefits of $56.3 Billion In Presently Unfunded Liabilities. Bye, bye, Cuomo's balanced New York State budget.
If you think this local tax increase is bad, wait till you discover that these increases are based upon Comptroller DiNapoli's lowering the promised safe rate of return on pension investments from 8.0% to 7.5%. Luckily, DiNapoli and Cuomo are running public pension plans where the federal law allows an assumption of an 8.0% or 7.5% return on investments without criminal penalties and joining Madoff in prison does not result. A real safe yield rate for private pensions would be the US Treasury 10 year rate of 1.99% to 2.16%. Such a safe rate would mean the increases in pension contributions required could be calculated from DiNapoli's present increase based upon a rate reduction from 8.0%-7.5%=0.5% to a true safe rate reduction of 8.0% -2.0% = 6.0%. Since 6.0% is 12 times 0.5%, the required pension contributions should be 12 times DiNapoli's present increases. Or, 59.5% of salary for public workers and 72.0% of salary for police and fire.
The taxpayer wagon trains will be forming in your community soon. Texas, Florida or Wisconsin or bust.
See New York Exodus As Tax Payers Flee At The Highest Rate In USA
New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee?
Where's The Independent Audit Of NY Pensions?
The independent audit overview of New York Pension funds is here at this blog for now. So as the relentless hounds of economic reality circle in on Cuomo and New York State Pension Finances, here are some of the latest reports:
1. E.J. McMahon, a senior fellow at the conservative Manhattan Institute for Policy Research, said the asset levels of virtually all public pension funds are below 2007 levels despite the recovery of the market in 2009 and 2010. "Pension funds promise returns on investments -- 7 percent to 8 percent or more a year ...They still think there is a 'long-term norm,he said of fund managers. The events of the last two months are a reminder of how wrong that might be."
2. "Because so many government pension systems are underfunded, their managers have been chasing high returns by betting heavily on volatile investments ...Even with the run-up in the market earlier this year, New York’s pension assets were still some $9 billion lower than their peak in 2007 — before the financial crisis."
3. Teacher pension fund joins California auditor's high risk list
While California has an independent auditor making a report, in New York we have the Pension Fund Manager, DiNapoli, making his own audit. The New York Controller claims he can make safe investments with a 7.5% return and his own audit confirms it? Can the Comptroller walk on water, too?
See in regard teacher's pensions: Smoke And Mirrors As DiNapoli And Cuomo Hide Pension Costs While Schools Will Need Contribute 54% Of Salary To Pension Funds
See in regard NYS pension costs: New York State Will Likely Default And Rating Agencies Will Be Liable If They Fail To Properly Rate NYS Bonds
1. E.J. McMahon, a senior fellow at the conservative Manhattan Institute for Policy Research, said the asset levels of virtually all public pension funds are below 2007 levels despite the recovery of the market in 2009 and 2010. "Pension funds promise returns on investments -- 7 percent to 8 percent or more a year ...They still think there is a 'long-term norm,he said of fund managers. The events of the last two months are a reminder of how wrong that might be."
2. "Because so many government pension systems are underfunded, their managers have been chasing high returns by betting heavily on volatile investments ...Even with the run-up in the market earlier this year, New York’s pension assets were still some $9 billion lower than their peak in 2007 — before the financial crisis."
3. Teacher pension fund joins California auditor's high risk list
While California has an independent auditor making a report, in New York we have the Pension Fund Manager, DiNapoli, making his own audit. The New York Controller claims he can make safe investments with a 7.5% return and his own audit confirms it? Can the Comptroller walk on water, too?
See in regard teacher's pensions: Smoke And Mirrors As DiNapoli And Cuomo Hide Pension Costs While Schools Will Need Contribute 54% Of Salary To Pension Funds
See in regard NYS pension costs: New York State Will Likely Default And Rating Agencies Will Be Liable If They Fail To Properly Rate NYS Bonds
And NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible
Cuomo's Dog And Pony Show Is Run Over By A Herd Of Elephants
"Knowing how to count is important for a Prince."
Governors Cuomo and Christie ran their Port Authority Sideshow Act where a $4 toll increase is announced and the two governors come to the rescue and lower it to a $1.50 increase. Yeah for our heros, Cuomo and Christie, and their script writers. The play acting continues in New York as the heroic Cuomo struts triumphant after "members of New York’s largest union of state employees, in a begrudging acknowledgment of the increasingly hostile mood toward public workers, have agreed to accept major wage and benefits concessions sought by Gov. Andrew M. Cuomo."
"Savings from the five-year contract are expected to total $73 million this fiscal year, part of the $450 million in cuts that Mr. Cuomo’s budget counted on extracting from the state work force." But, "A day after his members ratified a new five-year contract, Civil Service Employees Association President Danny Donohue said his crew has sacrificed enough - and opposes Gov. Cuomo's drive to reduce long-term pension costs."
So Cuomo has a $450 million dollar saving, while NY State has not funded its retiree health benefits of $56.3 Billion In Unfunded Liabilities and NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible with losses of up to $7.3 trillion dollars. Poor Andrew may have had difficulty with arthimetic in school and not learned that there are a thousand millions in one billion and a million millions in a trillion.
$450 million is 0.8% of $56.3 billion. $450 million is 0.006% of $7.3 trillion.
Governors Cuomo and Christie ran their Port Authority Sideshow Act where a $4 toll increase is announced and the two governors come to the rescue and lower it to a $1.50 increase. Yeah for our heros, Cuomo and Christie, and their script writers. The play acting continues in New York as the heroic Cuomo struts triumphant after "members of New York’s largest union of state employees, in a begrudging acknowledgment of the increasingly hostile mood toward public workers, have agreed to accept major wage and benefits concessions sought by Gov. Andrew M. Cuomo."
"Savings from the five-year contract are expected to total $73 million this fiscal year, part of the $450 million in cuts that Mr. Cuomo’s budget counted on extracting from the state work force." But, "A day after his members ratified a new five-year contract, Civil Service Employees Association President Danny Donohue said his crew has sacrificed enough - and opposes Gov. Cuomo's drive to reduce long-term pension costs."
So Cuomo has a $450 million dollar saving, while NY State has not funded its retiree health benefits of $56.3 Billion In Unfunded Liabilities and NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible with losses of up to $7.3 trillion dollars. Poor Andrew may have had difficulty with arthimetic in school and not learned that there are a thousand millions in one billion and a million millions in a trillion.
$450 million is 0.8% of $56.3 billion. $450 million is 0.006% of $7.3 trillion.
Smoke And Mirrors As DiNapoli And Cuomo Hide Pension Costs While Schools Will Need Contribute 54% Of Salary To Pension Funds
"The sky is falling and the taxpayers fleeing" ~ Economic Grim Reaper on impending fiscal collapse.
Could Andrew Cuomo be arithmetically challenged in regard the NY Pension underfunding and other impending disasters with his budget? Yes. Could Andrew be a silver spoon fed son of Mario whose head is swelled with dreams of his coming Presidency? Yes Could Cuomo believe he lives under different rules of ethics because his father Mario anointed him, Governor and President? Yes, because that explains how Cuomo took a $45,000 campaign check from a law firm while Cuomo's deputies were probing one of its attorneys for his role in the pay-to-play pension scandal.
Meanwhile, Comptroller DiNapoli still touts his achievement that "in September 2010, the Fund [teacher's] lowered its assumed investment rate of return to 7.5 percent." No honest retirement fund can safely earn 7.5% in today's market, except if you are Bernie Madoff. A private pension manger would be spending time in jail for such lying fraud. But Dinapoli wasn't done with misleading and fraudulent claims of solvency for pension funds he managed. He was touting the great returns his funds earned in a one year period such as "Domestic public equities returned 17.6 percent, while international public equities returned 14.3 percent. Real estate investments yielded a 26.7 percent return, while private equity investments generated an 18.9 percent return. The Fund’s emerging markets equities returned 16.1 percent, while Treasury Inflation-Protected Securities yielded 9.7 percent and core fixed-income investments returned 8 percent." But DiNapoli forgot to mention that those returns were from huge earlier losses in 2009 recession. "John Cardillo, a spokesman for the teachers' retirement fund, said the fund is still trying to make up for a steep decline two years ago."
Even worse for those teacher funds, the schools now are paying based on DiNapoli's phoney improved safe rate of return which he lowered from 8% to 7.5%. The schools complain that "in 2010, the pension rate was 6.2 percent of payroll and forced schools to collect about $926 million. Now at 11 percent, schools will have to pay nearly $1.7 billion, according to preliminary estimates." Wait till the schools and ultimately the taxpayers discover that an honest safe rate of return for pension funds would be slightly above the 10 year treasury bond rate or very generously 3%. Doing the arithmetic: going from 8% -3% =5% is ten times greater than going from 8%-7.5% = 0.5%. So a 3% safe rate of return would require the schools pay ten times the present increase of (11%-6.2% =) 4.8% to an increase of 48%, which must be added to the prior 6.2% for 54.2% of salary to be contributed to the pension funds. And wait, Cuomo and DiNapoli forgot to tell schools they have to fund retiree health benefits.
How will schools do it with Cuomo's budget cap law? Will more taxpayers flee? Wanna buy some NYS bonds?
New York State Will Likely Default And Rating Agencies Will Be Liable If They Fail To Properly Rate NYS Bonds
Copy of letter sent August 16, 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
Dagong Global Credit Rating Co.,Ltd
29/F, Unit A, Eagle Run Plaza, No.26 Xiaoyun Road,Chaoyang District,Beijing, P.R.China 100125
Re: US Rating agencies will face a large liability for improper ratings for NY State Bonds. Default/bankruptcy coming shortly. Catastrophe in waiting: Average NYS non-financial sector income of $50,400 a yr. results in less net income than average NYS dole benefit of $42,000 a yr.
Dear Rating Agencies:
How long do the rating agencies think this can continue in NY State? While NY State pays the average public assistance person $42,000 a year in benefits according to Lou Dobbs's radio show on 8/15/2011, the average non-financial sector NY State income was $50,400.* And NY State relies more heavily on personal income tax for its revenue than other States.* When will the federal government cut off NY State's Medicaid program which is run as a fraud, where NY State mischarges the federal government $22 billion dollars to fund its non-medicaid State budget? Andrew Cuomo's business friendly NY has fizzled. Meanwhile, Andrew Cuomo failed to begin to change the NY Constitution to end unaffordable pension costs.
"A word to the wise is sufficient." The US based rating agencies will have a large liability, if NY State bonds are improperly rated. The future possibility of repaying NY State bonds not backed by a dedicated revenue source is non-existent. NY State bonds finance State agencies as well as State government. Some bondholders, such as Thruway bonds or Dormitory bonds, receive first dibs on revenues, if the State doesn't pay on time. Other bonds are backed by the full faith and credit of NY State without a dedicated revenue source. But if the State doesn't have enough cash in revenue, how can it pay?
These are the details:
First, this is the text from NY State Constitution: §7. After July first, nineteen hundred forty, 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. (Adopted by Constitutional Convention of 1938 and approved by vote of the people November 8, 1938.)
Then, in regard retiree costs:
1. Although, Chris Christie reformed pension and benefit costs in New Jersey, Andrew Cuomo failed to ask this session of the Legislature for a Constitutional Amendment to change the above clause which prohibits NYS from changing any retirement contractually promised benefits, such as Health Insurance and Pensions. Such an amendment must first be passed by this and then the next legislative session and then finally approved by the voters.
http://cuomotarp.blogspot.com/2011/08/rating-agencies-informed-as-new-york.html
2. NY State has not funded its retiree health benefits which were part of State workers' contracts with NYS and are constitutionally protected. NewYork Adds $56.3 Billion To Its Unfunded Liabilities
3. NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible. All the undeposited funds needed to properly fund the pension funds and the losses of up to $7.3 trillion dollars are liabilities of NYS. Any higher taxes to fund this shortfall would create a stampede of taxpayers getting out of NY State..
Then in regard taxpayers
4. Taxpayers are fleeing NYS at the largest rate in the USA. Who'll repay the bonds?
5. NY State has the highest local and State debt per person and the second highest taxes paid per person of any State but New Jersey. New York Debt per person including local debt is at $24,195. For a family of four about $97,000. Will NYS raise taxes even higher and borrow more?
6. Andrew Cuomo will not attract business or its potential taxes to NYS because NYS has the next to lowest business friendly rating of all the States. When NY businesses repay the $ 3.6 billion dollar Unemployment Insurance loan to the Federal government this November 2011, NYS will become a business pariah.
7. What happens when the millions of NYS taxpaying residents earning the average non-financial $50,400 or less discover their net income is less than the average dole recipient's $42,000 a year? Do they leave the State or go on the dole?
Then, in regard State revenues:
8. The NY Comptroller predicts rising numbers of non-taxpayers in the NY State Medicaid system*.
9. NY State funded 14% of its budget this year with one time funds that will not be available in future years.
10. 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."
The Bottom Line:
Sincerely yours,
CuomoTARP.blogspot.com
*See Financial Condition Report for Fiscal Year 3/31/2010
P.S. Please access website for working links to all data.
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
Dagong Global Credit Rating Co.,Ltd
29/F, Unit A, Eagle Run Plaza, No.26 Xiaoyun Road,Chaoyang District,Beijing, P.R.China 100125
Re: US Rating agencies will face a large liability for improper ratings for NY State Bonds. Default/bankruptcy coming shortly. Catastrophe in waiting: Average NYS non-financial sector income of $50,400 a yr. results in less net income than average NYS dole benefit of $42,000 a yr.
Dear Rating Agencies:
How long do the rating agencies think this can continue in NY State? While NY State pays the average public assistance person $42,000 a year in benefits according to Lou Dobbs's radio show on 8/15/2011, the average non-financial sector NY State income was $50,400.* And NY State relies more heavily on personal income tax for its revenue than other States.* When will the federal government cut off NY State's Medicaid program which is run as a fraud, where NY State mischarges the federal government $22 billion dollars to fund its non-medicaid State budget? Andrew Cuomo's business friendly NY has fizzled. Meanwhile, Andrew Cuomo failed to begin to change the NY Constitution to end unaffordable pension costs.
"A word to the wise is sufficient." The US based rating agencies will have a large liability, if NY State bonds are improperly rated. The future possibility of repaying NY State bonds not backed by a dedicated revenue source is non-existent. NY State bonds finance State agencies as well as State government. Some bondholders, such as Thruway bonds or Dormitory bonds, receive first dibs on revenues, if the State doesn't pay on time. Other bonds are backed by the full faith and credit of NY State without a dedicated revenue source. But if the State doesn't have enough cash in revenue, how can it pay?
These are the details:
First, this is the text from NY State Constitution: §7. After July first, nineteen hundred forty, 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. (Adopted by Constitutional Convention of 1938 and approved by vote of the people November 8, 1938.)
Then, in regard retiree costs:
1. Although, Chris Christie reformed pension and benefit costs in New Jersey, Andrew Cuomo failed to ask this session of the Legislature for a Constitutional Amendment to change the above clause which prohibits NYS from changing any retirement contractually promised benefits, such as Health Insurance and Pensions. Such an amendment must first be passed by this and then the next legislative session and then finally approved by the voters.
http://cuomotarp.blogspot.com/2011/08/rating-agencies-informed-as-new-york.html
2. NY State has not funded its retiree health benefits which were part of State workers' contracts with NYS and are constitutionally protected. NewYork Adds $56.3 Billion To Its Unfunded Liabilities
3. NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible. All the undeposited funds needed to properly fund the pension funds and the losses of up to $7.3 trillion dollars are liabilities of NYS. Any higher taxes to fund this shortfall would create a stampede of taxpayers getting out of NY State..
Then in regard taxpayers
4. Taxpayers are fleeing NYS at the largest rate in the USA. Who'll repay the bonds?
5. NY State has the highest local and State debt per person and the second highest taxes paid per person of any State but New Jersey. New York Debt per person including local debt is at $24,195. For a family of four about $97,000. Will NYS raise taxes even higher and borrow more?
6. Andrew Cuomo will not attract business or its potential taxes to NYS because NYS has the next to lowest business friendly rating of all the States. When NY businesses repay the $ 3.6 billion dollar Unemployment Insurance loan to the Federal government this November 2011, NYS will become a business pariah.
7. What happens when the millions of NYS taxpaying residents earning the average non-financial $50,400 or less discover their net income is less than the average dole recipient's $42,000 a year? Do they leave the State or go on the dole?
Then, in regard State revenues:
8. The NY Comptroller predicts rising numbers of non-taxpayers in the NY State Medicaid system*.
9. NY State funded 14% of its budget this year with one time funds that will not be available in future years.
10. 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."
The Bottom Line:
- a rapidly rising NYS expenditure for retiree and others' benefits
- a reduced number of businesses in NYS paying taxes and paying workers
- more NYS Medicaid non-taxpayers
- taxpayers fleeing the State
- NY State will run out of cash from its diminishing revenue sources
- NY State either defaults or goes bankrupt if Congress enables State Bankruptcy by a new law
- a tax revolt when those millions earning the average non-financial income of $50,400 or less realize that the average NYS dole recipient receives $42,000 yr. in benefits
And the US rating agencies would be sued by all the suckers still holding devalued and defaulted NYS bonds. And Dagong may have protected foreign investors and exposed the hopeless finances in New York State.
Sincerely yours,
CuomoTARP.blogspot.com
*See Financial Condition Report for Fiscal Year 3/31/2010
P.S. Please access website for working links to all data.
Rating Agencies Informed As New York State Pension Funds Have Estimated Losses of $7.3 Trillion Dollars
Letter: August 11, 2011
Dear Sirs: You are promising to report on States. New York State is liable for its Pension funds' losses and underfunding. This is to inform you that NY State Pension Funds have estimated losses of approximately $7.3 trillion dollars and NYS's assumption of a safe return of 7% can only be characterized as a fraud. It is not possible for NYS to fund its Pension obligations and/or losses through taxes or by changes in employee contributions which are contractually determined, because of the NY State Constitutional Provision copied here:
#7. After July first, nineteen hundred forty, 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. (New. Adopted by Constitutional Convention of 1938 and approved by vote of the people November 8, 1938.) Note that Andrew Cuomo is making no efforts to amend the NY Constitution in regard pensions.
In regard to New Jersey, it was reported that, "to justify an 8.25% interest assumption assets were in investments that could possibly generate that return so, as of May 31, 2011, the plan’s $74.7 billion was allocated 27% in domestic equity, 30% in bonds, 20% in international equity, and 17% in alternative investments. With only about $300 million in employee contributions coming in over the last two months, while $1.3 billion in payouts left on top of this 10%+ investment drop the plan likely has about $65 billion this morning." In New York State things are worse, because of NYS Constitutional restrictions on Pension Changes and the trillions of dollar size.
The NYS Comptroller reports:
The following table summarizes the market values for March 31, 2010 and 2009 (In Thousands):
Asset Type 3/31/2010 Market Value %of total
Domestic Equity $ 51,495,373 38.9%
International Equity 21,178,608 16.0
Private Equity 12,799,735 9.7
Absolute Return Strategy 3,817,538 2.9
Real Estate 5,551,078 4.2
Core Fixed Income 33,726,066 25.4
Mortgage Loans 845,721 0.6
Short-term Investments 3,086,085 2.3
Total Investments $ 132,500,204 100.0%
Market losses have exceeded 10% in both domestic and international equities with estimated losses of $7.3 trillion dollars for NYS's portfolio. Real Estate is substantially decreasing in value in NYS. Get a good laugh at the 119 page long list of funds held by NY State and ponder how the NY State Comptroller can keep tabs on such a large number of funds.
Based on Market Values as of March 31, 2010.
Annualized Rate of Return
1 Year 3 Years 5 Years 10 Years
Total Fund 25.87% -1.68% 4.16% 3.75%
Domestic Equity 51.70 -4.10 2.20 0.52
International Equity 56.77 -5.00 5.52 2.72
Private Equity 11.61 2.40 12.82 8.56
Absolute Return
Strategy 14.95 -0.44 3.29 —
Equity Real Estate -27.77 -17.65 -0.11 9.56
Core Fixed Income 7.92 7.00 6.06 7.57
Treasury Inflation
Indexed Securities 5.01 5.75 4.34 —
The Core Fixed Income and Treasury Inflation Indexed investments cannot expect to earn anywhere near the 7% assumption. In its latest action, the Federal Reserve has frozen interest rates for the next two years and 10 yr Federal returns would be for the next two years at 2.14%, not 7.0%.
Bottom line is New York State has an estimated $7.3 trillion dollars in Pension losses and no possible way to fund them, nor to earn 7.0% safe return with 10 yr. Treasuries at 2.14%. Please read my prior post New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee? concluding with, Who'll repay the bonds?
As you, the rating agencies, may note in the new law suit against Bank of America, there will be consequences for those not reporting truthfully. Please also be aware of Federal Law Title 18 as to who may be charged in a federal criminal action.
TITLE 18 PART I CHAPTER 1 #2. Principals
Whoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal.
Whoever willfully causes an act to be done which if directly performed by him or another would be an offense against the United States, is punishable as a principal.
Sincerely yours,
CuomoTARP.blogspot.com
P.S. Please access website for working links to all data.
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: Trillions in losses and fraudulent pension asset assumptions in New York State, also, New Jersey. Potential civil and federal criminal liability101 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
Dear Sirs: You are promising to report on States. New York State is liable for its Pension funds' losses and underfunding. This is to inform you that NY State Pension Funds have estimated losses of approximately $7.3 trillion dollars and NYS's assumption of a safe return of 7% can only be characterized as a fraud. It is not possible for NYS to fund its Pension obligations and/or losses through taxes or by changes in employee contributions which are contractually determined, because of the NY State Constitutional Provision copied here:
#7. After July first, nineteen hundred forty, 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. (New. Adopted by Constitutional Convention of 1938 and approved by vote of the people November 8, 1938.) Note that Andrew Cuomo is making no efforts to amend the NY Constitution in regard pensions.
In regard to New Jersey, it was reported that, "to justify an 8.25% interest assumption assets were in investments that could possibly generate that return so, as of May 31, 2011, the plan’s $74.7 billion was allocated 27% in domestic equity, 30% in bonds, 20% in international equity, and 17% in alternative investments. With only about $300 million in employee contributions coming in over the last two months, while $1.3 billion in payouts left on top of this 10%+ investment drop the plan likely has about $65 billion this morning." In New York State things are worse, because of NYS Constitutional restrictions on Pension Changes and the trillions of dollar size.
The NYS Comptroller reports:
The following table summarizes the market values for March 31, 2010 and 2009 (In Thousands):
Asset Type 3/31/2010 Market Value %of total
Domestic Equity $ 51,495,373 38.9%
International Equity 21,178,608 16.0
Private Equity 12,799,735 9.7
Absolute Return Strategy 3,817,538 2.9
Real Estate 5,551,078 4.2
Core Fixed Income 33,726,066 25.4
Mortgage Loans 845,721 0.6
Short-term Investments 3,086,085 2.3
Total Investments $ 132,500,204 100.0%
Market losses have exceeded 10% in both domestic and international equities with estimated losses of $7.3 trillion dollars for NYS's portfolio. Real Estate is substantially decreasing in value in NYS. Get a good laugh at the 119 page long list of funds held by NY State and ponder how the NY State Comptroller can keep tabs on such a large number of funds.
Based on Market Values as of March 31, 2010.
Annualized Rate of Return
1 Year 3 Years 5 Years 10 Years
Total Fund 25.87% -1.68% 4.16% 3.75%
Domestic Equity 51.70 -4.10 2.20 0.52
International Equity 56.77 -5.00 5.52 2.72
Private Equity 11.61 2.40 12.82 8.56
Absolute Return
Strategy 14.95 -0.44 3.29 —
Equity Real Estate -27.77 -17.65 -0.11 9.56
Core Fixed Income 7.92 7.00 6.06 7.57
Treasury Inflation
Indexed Securities 5.01 5.75 4.34 —
The Core Fixed Income and Treasury Inflation Indexed investments cannot expect to earn anywhere near the 7% assumption. In its latest action, the Federal Reserve has frozen interest rates for the next two years and 10 yr Federal returns would be for the next two years at 2.14%, not 7.0%.
Bottom line is New York State has an estimated $7.3 trillion dollars in Pension losses and no possible way to fund them, nor to earn 7.0% safe return with 10 yr. Treasuries at 2.14%. Please read my prior post New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee? concluding with, Who'll repay the bonds?
As you, the rating agencies, may note in the new law suit against Bank of America, there will be consequences for those not reporting truthfully. Please also be aware of Federal Law Title 18 as to who may be charged in a federal criminal action.
TITLE 18 PART I CHAPTER 1 #2. Principals
Whoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal.
Whoever willfully causes an act to be done which if directly performed by him or another would be an offense against the United States, is punishable as a principal.
Sincerely yours,
CuomoTARP.blogspot.com
P.S. Please access website for working links to all data.
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
New York Exodus As Tax Payers Flee At The Highest Rate In USA
Wanna locate a business in New York? Pharaoh Andrew beckons.
Wanna not be taxed for the Cuomo fantasy? Join the largest Exodus in the USA. The Promised Land ain't New York.
New York State attains another new high with "the greatest loss nationally of residents to other states for the second decade in a row." Small-business lobbyist Mike Durant noted, New York has also "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." This is added to New York's other trophies such as Cuomo's New York Comes In Second To New Jersey For The Most Taxes Per Person where Cuomo lost out by a small margin.
And while New York's Taxes paid by residents as percentage of income are 12.1%, " [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 have the largest debt of any State in the USA with New York Debt per person including local debt at $24,195. For a family of four about $97,000. How many more business will leave NY when they discover that NYS must repay in November the Unemployment Insurance: State Trust Fund Loans of $3,176,873,427.71 ; that's $3.1 billion? Business which leave quickly could avoid a $478 per worker assessment.
To Businesses, taxpayers, government leeches. Cuomo promises something for all of you.
Wanna pay the highest taxes?
Wanna get the highest benefits for not working?
Wanna get a framed portrait of Pharaoh Andrew for veneration within your home?
Wanna buy a bridge?
Or join the taxpayer's Exodus.
Wanna not be taxed for the Cuomo fantasy? Join the largest Exodus in the USA. The Promised Land ain't New York.
New York State attains another new high with "the greatest loss nationally of residents to other states for the second decade in a row." Small-business lobbyist Mike Durant noted, New York has also "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." This is added to New York's other trophies such as Cuomo's New York Comes In Second To New Jersey For The Most Taxes Per Person where Cuomo lost out by a small margin.
And while New York's Taxes paid by residents as percentage of income are 12.1%, " [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 have the largest debt of any State in the USA with New York Debt per person including local debt at $24,195. For a family of four about $97,000. How many more business will leave NY when they discover that NYS must repay in November the Unemployment Insurance: State Trust Fund Loans of $3,176,873,427.71 ; that's $3.1 billion? Business which leave quickly could avoid a $478 per worker assessment.
To Businesses, taxpayers, government leeches. Cuomo promises something for all of you.
Wanna pay the highest taxes?
Wanna get the highest benefits for not working?
Wanna get a framed portrait of Pharaoh Andrew for veneration within your home?
Wanna buy a bridge?
Or join the taxpayer's Exodus.
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
The Ready To Go Democrat And Republican Debt Reduction Which Cuts $200 Billion This Year
Fax to Congress; evening of 7/28/2011
Re: Debt reduction. Save $200 billion dollars a year right now and reduce the need to borrow this money, right now, and save $2 Trillion in ten years. The USA gains; California gains; New York crooks lose.
Honorable Harry Reid, John A. Boehner and others* in Congress:
Debt reduction right now, $200 billion this year and $2 trillion in ten years. 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. Cuomo and Eric Holder are knowledgeable of this. And this would benefit California.
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 on just this one item—and uses it to subsidize other areas of the budget."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
Medicaid block grants at the median rate of the present Medicaid 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 are 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
Block grants at the present median rate 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 State like California would benefit from this change.
http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html
This is a condensed recap of an earlier post on cuomoTARP.blogspot.com entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries
Sincerely yours,
CuomoTarp.blogspot.com, Terence Finnan, PO Box 354, Keene NY 12942; 518-576-9734
[please access web site for working links]
* To: Michele Bachmann, Ron Pau 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: Debt reduction. Save $200 billion dollars a year right now and reduce the need to borrow this money, right now, and save $2 Trillion in ten years. The USA gains; California gains; New York crooks lose.
Honorable Harry Reid, John A. Boehner and others* in Congress:
Debt reduction right now, $200 billion this year and $2 trillion in ten years. 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. Cuomo and Eric Holder are knowledgeable of this. And this would benefit California.
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 on just this one item—and uses it to subsidize other areas of the budget."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
Medicaid block grants at the median rate of the present Medicaid 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 are 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
Block grants at the present median rate 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 State like California would benefit from this change.
http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html
This is a condensed recap of an earlier post on cuomoTARP.blogspot.com entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries
Sincerely yours,
CuomoTarp.blogspot.com, Terence Finnan, PO Box 354, Keene NY 12942; 518-576-9734
[please access web site for working links]
* To: Michele Bachmann, Ron Pau 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
Real Debt Cuts Ready To Go Today; $200 Billion This Year; $2 Trillion In Ten Years; Both Democrats And Republicans Can Support.
This is a ready to go debt reduction that both Democrats and Republicans can support. This is a recap of an earlier fax to Congress entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries
Copy of letter faxed early this morning.
CuomoTARP.blogspot.com July 27, 2011
To: Michele Bachmann, Ron Pau 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: Debt reduction. Save $200 billion dollars a year right now and reduce the need to borrow this money, right now, and save $2 Trillion in ten years. The USA gains; California gains; New York crooks lose.
Honorable Harry Reid, John A. Boehner and others in Congress:
Right now, $200 billion this year and $2 trillion in ten years. 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. Cuomo and Eric Holder are knowledgeable of this. And this would benefit California.
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 on just this one item—and uses it to subsidize other areas of the budget."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
Medicaid block grants at the median rate of the present Medicaid 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 are 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 at the present median rate 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 State like California would benefit from this change. 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
This is a recap of an earlier post on cuomoTARP.blogspot.com entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries
Sincerely yours,
CuomoTarp.blogspot.com
Copy of letter faxed early this morning.
CuomoTARP.blogspot.com July 27, 2011
To: Michele Bachmann, Ron Pau 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: Debt reduction. Save $200 billion dollars a year right now and reduce the need to borrow this money, right now, and save $2 Trillion in ten years. The USA gains; California gains; New York crooks lose.
Honorable Harry Reid, John A. Boehner and others in Congress:
Right now, $200 billion this year and $2 trillion in ten years. 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. Cuomo and Eric Holder are knowledgeable of this. And this would benefit California.
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 on just this one item—and uses it to subsidize other areas of the budget."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories
Medicaid block grants at the median rate of the present Medicaid 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 are 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 at the present median rate 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 State like California would benefit from this change. 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
This is a recap of an earlier post on cuomoTARP.blogspot.com entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries
Sincerely yours,
CuomoTarp.blogspot.com
NY Will Follow Greece; NY Budget Director Reveals NY Can't Finance Budget; Congress Asked for State Bankruptcy Law
A follow-up letter to Bond Rating Agencies and Congress was faxed/or mailed.
Dated 7/26/2011
To: Michele Bachmann, Ron Paul, Allen West, Thaddeus McCotter, US Representatives; Rand Paul, David Vitter, Jim DeMint, Senators; Moody's, Fitch and Standard+Poors;
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: Greece in the USA; NY Budget Director can't finance NY budget; bankruptcy law needed
Dear Congressman and Rating Agencies:
Moody's reports default on Greek debt almost certain. New York State has the highest debt per person in the USA ($24,195) and the second highest taxes per person ($6,884). This is a Heads-up call to Rating Agencies and Congress that New York State has run out of money and a Greek-like bail-out request is coming. 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." You can hear his testimony from 00:32:34 to 00:56:17 at
http://pointers.audiovideoweb.com/stcasx/va91win1520/Judiciary07202011edit.wmv/play.asx
Andrew Cuomo claims to balance the State Budget and then approves a Commission to raise judges' pay by 61%, when he can't even pay for the items already in his budget. Sorry, Andrew, if you can't finance your spending commitments, you're broke and will run out of money like Greece. New York State needs the option to go bankrupt and I've copied a condensed version of my earlier faxed 1/26/2011 letter to Congress, with the simple changes necessary to create a Chapter 10 Bankruptcy for States. link to 1/26 fax post
[condensed] FAX sent dated: 1/26/2011
Someone needs to get the bankruptcy ball rolling; so here goes. A Primer for a State's Bankruptcy:
Why? New York will go bankrupt because Cuomo is not acting to easily correct $28 Billion dollars Medicaid excesses in NY compared with others States (California). His proposals to dismiss 12,000 State employees might account for $1.2 billion dollars saved. That's $1.2 billion out of the $10 billion he claims is the budget deficit. So, Cuomo runs out of cash. But, he's not alone, several governors will join him. They need a cover, who'll stiff the State bondholders and redo employee contractual benefits and pay. It's not me (your beloved Elected Governor), it's the bankruptcy judge.
Is it Constitutional? Yes, because the law proposed below was only modified by replacing the words referring to a State's municipality, with the word(s) referring only to a State. "The first municipal bankruptcy legislation was enacted in 1934. ..., the Supreme Court held the 1934 Act unconstitutional as an improper interference with the sovereignty of the states. Ashton v.Cameron County Water Improvement District No. 1, [Then] Congress enacted a revised Municipal Bankruptcy Act in 1937, ... which was upheld by the Supreme Court. United States v. Bekins."
[note:Chapter 9 is the existing law for municipal bankruptcy]
How? The proposed Chapter 10 for States has identically to the existing constitutional Chapter 9, no provision for the sale of assets, nor for such to be given to creditors. Just as in Chapter 9, the bankruptcy court cannot actively mange the State's affairs, and can only approve a reorganization plan submitted by the State. And as in Chapter 9,; the State can use the bankruptcy court to enforce court orders and preclude any connected litigation elsewhere and change contractual agreements.
Details In the proposed Chapter 10:
1. The bankruptcy judge is assigned by the Chief Federal Judge of the State;
2. A list of all creditors can be filed after filing bankruptcy petition;
3. Automatic stays of all collections against the State can be stayed; the court can fix time and manner of the filing of all claims against the State;
4. Only the State and not creditors, nor someone appointed by the bankruptcy court can propose a settlement;
5. The State retains its powers to use its property, raise taxes, and make expenditures and change non-debt contractual relationships;
6. The State can reject collective bargaining agreements and retiree benefit plans;
7. Interested parties may be heard, but no one but the State can file a PLAN for resolution of the debts and obligations.
Proposed Chapter 10:
I've copied sections of the Federal Bankruptcy law for Chapter 9 and would remove text in blue and insert the red text. Other parts of this Chapter 9 would remain unchanged and be renumbered from §§901-946 to §§1001 to 1046
TITLE 11 CHAPTER 9 10
CHAPTER 9 10—ADJUSTMENT OF DEBTS OF A MUNICIPALITY STATE
SUBCHAPTER I—GENERAL PROVISIONS (§§901-904 1001-1004)
SUBCHAPTER II—ADMINISTRATION (§§921—930 1021-1030)
SUBCHAPTER III—THE PLAN (§§941—946 1041-1046)
903.1003. Reservation of State power to control municipalities Sovereign power
This chapter does not limit or impair the power of a State to control, by legislation or otherwise,a municipality of or in such State in the exercise of the political or governmental powers of such municipality, including expenditures for such exercise, but— such State, a State law prescribing a method of composition of indebtedness of such municipality of such State may not bind any creditor that does not consent to such composition; and (2)a judgment entered under such a law may not bind a creditor that does not consent to such composition.
904. 1004. Limitation on jurisdiction and powers of court
Notwithstanding any power of the court, unless the debtor consents or the plan so provides, the court may not, by any stay, order, or decree, in the case or otherwise, interfere with—any of the political or governmental powers of the debtor State; the debtor’s use or enjoyment of any income-producing property; the sovereign immunity of such debtor State.
921. 1021. Petition and proceedings relating to petition 109(d) and 301 of this title, a case under this chapter concerning an unincorporated tax or special assessment district that does not have such district’s own officials is commenced by the filing under section of this title of a petition under this chapter by such district’s governing authority or the board or body having authority to levy taxes or assessments to meet the obligations of such district. State.
(b)The chief judge of the court of appeals for the circuit embracing thedistrict State in which the case is commenced shall designate the bankruptcy judge to conduct the case. After any objection to the petition, the court, after notice and a hearing, may dismiss the petition if the debtor did not file the petition in good faith or if the petition does not meet the requirements of this title.
If the petition is not dismissed under subsection (c) of this section, the court shall order relief under this chapter notwithstanding section (b)The court may not, on account of an appeal from an order for relief, delay any proceeding under this chapter in the case in which the appeal is being taken; nor shall any court order a stay of such proceeding pending such appeal. The reversal on appeal of a finding of jurisdiction does not affect the validity of any debt incurred that is authorized by the court under section (c)or (d)
927. 1027. Limitation on recourse
The holder of a claim payable solely from special revenues of thedebtor State under applicable non bankruptcy law shall not be treated as having recourse against the debtor on account of such claim pursuant to section (b) of this title.
[January 2011]By Fax to Chairman and ranking Minority Member of Senate and House Judiciary Committees and the Senate Subcommittee on Administrative Oversight and the Courts and the House Subcommittee on Courts, Commercial and Administrative Law
Patrick Leahy (D-VT); Jeff Sessions (R-AL)
Lamar Smith (R-TX); John Conyers, Jr. (D-MI)
Sheldon Whitehouse (D-RI); Howard Coble (R-NC)
[end of 1/26/2011 condensed fax]
Here are Constitutional Considerations from blog post dated 1/27/2011 In regard the proposed Chapter 10 Bankruptcy for States:
Why must Bankruptcy for States be different from ordinary bankruptcy? While, Congress has the power to make laws for bankruptcy under Article 1-Section 8 of the US Constitution, the States cannot make their own bankruptcy laws because of Article 1-Section 8 of US Constitution. Without bankruptcy, States could not void or alter contracts with State employees or bondholders or other contract holders under Article 1-Section 10 of the US Constitution. States also must honor the judicial acts of other States involving contracts with NY State under Article 4-Section 1 of US Constitution. And States retain all sovereign powers except those removed by the Constitution based upon Amendment 10.
The text of relevant sections of US Constitution:
Article 1
Section 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow Money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
Section 10. No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
Article IV
Section 1. Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State. And the Congress may by general Laws prescribe the Manner in which such Acts, Records, and Proceedings shall be proved, and the Effect thereof.
Amendment X
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
In conclusion, it would be easy to create a Chapter 10 bankruptcy for States. Bankruptcy would allow New York State to alter its present contracts, change its employment contracts and make changes in NY's bondholder's rights, while still allowing NY State to keep its sovereignty as per US Constitution. Also, the federal government would not need to bail-out New York State. The bond rating agencies can update their ratings on New York debt.
Sincerely yours,
CuomoTARP.blogspot.com. [please access web site post dated 7/26/2011 for working links]
Dated 7/26/2011
To: Michele Bachmann, Ron Paul, Allen West, Thaddeus McCotter, US Representatives; Rand Paul, David Vitter, Jim DeMint, Senators; Moody's, Fitch and Standard+Poors;
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: Greece in the USA; NY Budget Director can't finance NY budget; bankruptcy law needed
Dear Congressman and Rating Agencies:
Moody's reports default on Greek debt almost certain. New York State has the highest debt per person in the USA ($24,195) and the second highest taxes per person ($6,884). This is a Heads-up call to Rating Agencies and Congress that New York State has run out of money and a Greek-like bail-out request is coming. 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." You can hear his testimony from 00:32:34 to 00:56:17 at
http://pointers.audiovideoweb.com/stcasx/va91win1520/Judiciary07202011edit.wmv/play.asx
Andrew Cuomo claims to balance the State Budget and then approves a Commission to raise judges' pay by 61%, when he can't even pay for the items already in his budget. Sorry, Andrew, if you can't finance your spending commitments, you're broke and will run out of money like Greece. New York State needs the option to go bankrupt and I've copied a condensed version of my earlier faxed 1/26/2011 letter to Congress, with the simple changes necessary to create a Chapter 10 Bankruptcy for States. link to 1/26 fax post
[condensed] FAX sent dated: 1/26/2011
Someone needs to get the bankruptcy ball rolling; so here goes. A Primer for a State's Bankruptcy:
Why? New York will go bankrupt because Cuomo is not acting to easily correct $28 Billion dollars Medicaid excesses in NY compared with others States (California). His proposals to dismiss 12,000 State employees might account for $1.2 billion dollars saved. That's $1.2 billion out of the $10 billion he claims is the budget deficit. So, Cuomo runs out of cash. But, he's not alone, several governors will join him. They need a cover, who'll stiff the State bondholders and redo employee contractual benefits and pay. It's not me (your beloved Elected Governor), it's the bankruptcy judge.
Is it Constitutional? Yes, because the law proposed below was only modified by replacing the words referring to a
[note:Chapter 9 is the existing law for municipal bankruptcy]
How? The proposed Chapter 10 for States has identically to the existing constitutional Chapter 9, no provision for the sale of assets, nor for such to be given to creditors. Just as in Chapter 9, the bankruptcy court cannot actively mange the State's affairs, and can only approve a reorganization plan submitted by the State. And as in Chapter 9,; the State can use the bankruptcy court to enforce court orders and preclude any connected litigation elsewhere and change contractual agreements.
Details In the proposed Chapter 10:
1. The bankruptcy judge is assigned by the Chief Federal Judge of the State;
2. A list of all creditors can be filed after filing bankruptcy petition;
3. Automatic stays of all collections against the State can be stayed; the court can fix time and manner of the filing of all claims against the State;
4. Only the State and not creditors, nor someone appointed by the bankruptcy court can propose a settlement;
5. The State retains its powers to use its property, raise taxes, and make expenditures and change non-debt contractual relationships;
6. The State can reject collective bargaining agreements and retiree benefit plans;
7. Interested parties may be heard, but no one but the State can file a PLAN for resolution of the debts and obligations.
Proposed Chapter 10:
I've copied sections of the Federal Bankruptcy law for Chapter 9 and would remove text in blue and insert the red text. Other parts of this Chapter 9 would remain unchanged and be renumbered from §§
TITLE 11 CHAPTER
CHAPTER
SUBCHAPTER I—GENERAL PROVISIONS (§§
SUBCHAPTER II—ADMINISTRATION (§§
SUBCHAPTER III—THE PLAN (§§
This chapter does not limit or impair the power of a State to control, by legislation or otherwise,
Notwithstanding any power of the court, unless the debtor consents or the plan so provides, the court may not, by any stay, order, or decree, in the case or otherwise, interfere with—any of the political or governmental powers of the debtor State; the debtor’s use or enjoyment of any income-producing property; the sovereign immunity of such debtor State.
(b)The chief judge of the court of appeals for the circuit embracing the
If the petition is not dismissed under subsection (c) of this section, the court shall order relief under this chapter notwithstanding section (b)The court may not, on account of an appeal from an order for relief, delay any proceeding under this chapter in the case in which the appeal is being taken; nor shall any court order a stay of such proceeding pending such appeal. The reversal on appeal of a finding of jurisdiction does not affect the validity of any debt incurred that is authorized by the court under section (c)or (d)
The holder of a claim payable solely from special revenues of the
[January 2011]By Fax to Chairman and ranking Minority Member of Senate and House Judiciary Committees and the Senate Subcommittee on Administrative Oversight and the Courts and the House Subcommittee on Courts, Commercial and Administrative Law
Patrick Leahy (D-VT); Jeff Sessions (R-AL)
Lamar Smith (R-TX); John Conyers, Jr. (D-MI)
Sheldon Whitehouse (D-RI); Howard Coble (R-NC)
[end of 1/26/2011 condensed fax]
Here are Constitutional Considerations from blog post dated 1/27/2011 In regard the proposed Chapter 10 Bankruptcy for States:
Why must Bankruptcy for States be different from ordinary bankruptcy? While, Congress has the power to make laws for bankruptcy under Article 1-Section 8 of the US Constitution, the States cannot make their own bankruptcy laws because of Article 1-Section 8 of US Constitution. Without bankruptcy, States could not void or alter contracts with State employees or bondholders or other contract holders under Article 1-Section 10 of the US Constitution. States also must honor the judicial acts of other States involving contracts with NY State under Article 4-Section 1 of US Constitution. And States retain all sovereign powers except those removed by the Constitution based upon Amendment 10.
The text of relevant sections of US Constitution:
Article 1
Section 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow Money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
Section 10. No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
Article IV
Section 1. Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State. And the Congress may by general Laws prescribe the Manner in which such Acts, Records, and Proceedings shall be proved, and the Effect thereof.
Amendment X
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
In conclusion, it would be easy to create a Chapter 10 bankruptcy for States. Bankruptcy would allow New York State to alter its present contracts, change its employment contracts and make changes in NY's bondholder's rights, while still allowing NY State to keep its sovereignty as per US Constitution. Also, the federal government would not need to bail-out New York State. The bond rating agencies can update their ratings on New York debt.
Sincerely yours,
CuomoTARP.blogspot.com. [please access web site post dated 7/26/2011 for working links]
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