New York's Non-Profit Fat Cats Fatten On Medicaid And Contribute To Cuomo

"The noble NY Non-Profit Fat Cat takes his fair share first, then shares the rest with the needy politicians and the deserving poor." 

Non-Profit Fat Cat

    Not only NY State itself, but also, NY "non-profits" benefit from NY State's corruption in Medicaid as was reported to the US Congress from this site.   Cuomo followed the money and moved his "pay for protection and/or favorable treatment plan" from his attorney general's office to his governorship.  Attorney General Cuomo decried "pay to play cash"  in the Comptroller's office, while simultaneously Cuomo pocketed the "cleanly laundered" cash from the lawyers of litigants with pending court actions against the State of New York.

   The New York Times ran a series of articles on abuses at non-profits and handsome executive compensation.   Governor Cuomo responded with his latest "pay for protection" initiative when, "Cuomo recently created a task force of high-level aides to investigate high salaries at nonprofits that receive state funding."  Supposedly, these highly paid Cuomo hacks will operate independently of Cuomo fund raising.   But the initiative has a stench to it, said Susan Lerner, executive director of Common Cause/New York. "This is just another way in which having to raise large amounts of money privately can make things uncomfortable after the election is actually won."    While non-profits don't make any profits distributed to owners as dividends, they do make profitable income sources for their executives.   Within NY State's Medicaid system, the lax enforcement for criminal frauds committed by NY State employees and Non-profit executives encourages corruption.   This led to a call for a special prosecutor at the federal level for fraud which has been rampant since 1996 in NY State Medicaid.

    The Daily News connected the dots of "giving to Cuomo," Medicaid and getting large compensation with these reports,
"1. George McDonald and two family members, who gave Cuomo a combined $39,500... McDonald is president of The Doe Fund,...The Doe Fund... has won nearly $4 million in state grants on top of another $790,000 from 26 legislative grants....The Doe Fund's latest IRS 990 form states 20 individuals each make more than $100,000 in total compensation, with the top 14 employees paid a combined $2.8 million in 2009....McDonald as president had a total compensation package of $507,156... His wife, Harriet Karr-McDonald ... received $226,503...his son, John McDonald ... was paid $215,542...[also], George McDonald leases office space to the Doe Fund.
2.- Dr. Steven Safyeer, president and CEO of Montefiore Medical Center. Safyeer earned $1.97 million in compensation. He donated $16,000 to Cuomo.
3. Robert Conaty, executive vice president for operations at Montefiore Medical Center. His compensation totaled $1.45 million. He donated $20,000 to Cuomo.
4. Dr. Herbert Pardes, CEO of New York-Presbyterian Hospital. Pardes' compensation was $2.8 million. He donated $12,000 to Cuomo.
5. David Rich, executive vice president for the Greater New York Hospital Association. Rich earned $1.1 million in total compensation He has donated $67,000 to Cuomo."

Should a Special Federal Prosecutor examine the acts of Cuomo's Medicaid Redesign Team in allocating Medicaid funds?

       Non-profit feeding at the government trough has been a profitable family business for the Cuomos.   "The ...boss of a nonprofit group founded by Gov. Cuomo, ...Help USA's President and CEO Laurence Belinsky recently gave up his $500,000 annual salary to pursue private housing development...Cuomo founded the outfit in 1986. It provides services to the homeless and receives city, state and federal funding [keeping the business within the Cuomo public/private family].   Cuomo reportedly pocketed $60,000 a year when he was at the helm...Cuomo's sister, Maria Cuomo Cole, is the chairwoman of Help USA.  Belinsky, is said to be married to one of Cuomo's cousins."

   Will the Cuomo family non-profit(s) be examined for excess compensation, nepotism and Medicaid fraud, too?

CC: Congress

New York's Budget Is Now Cuomo's Budget And Default His Responsibility

     Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos laugh and smile as they pass Cuomo's budget.   Now, Andrew Cuomo owns the New York State budget.  He can't blame the legislators for passing his budget.  So, who will Cuomo blame when the revenue fails to come in and the massive borrowing begins?

     Now, there is Joy in Albany as Andrew Cuomo passes his budget and Cuomo comes to bat.  But, all the flaws reported in this blog in Cuomo's Executive budget are still there.  Most importantly, New York will run out of cash because of
1.  fantasy revenue predictions. 
2.  $3.6 billion in required spending is missing from the budget . 
3.  Cuomo's hidden taxes on business will discourage new business in New York. 
4.  Cuomo has ignored the pending suit to increase judges pay and its additonal cost to the State.  
5.  Counties and Cities will have to raise taxes to pay their 9.4% increase in Medicaid costs which is the largest expense in their budgets?

But, Hope as Cuomo comes to bat:

Then from 5 million throats and more there rose a lusty yell;

It rumbled through the Hudson valley, it rattled in the Albany dell;

It knocked upon the Adirondack mountains and recoiled throughout the State,

For Cuomo, mighty Cuomo, was advancing with his budget's plate.

There was ease in Cuomo's manner as he pranced into his place;

There was pride in Cuomo's bearing and a smile on Cuomo's face.

And when, responding to the cheers, he lightly doffed his hat,

No stranger in the crowd could doubt 'twas Cuomo at the bat.

Ten million eyes were on him as he rubbed his hands in Albany's dirt;

Five million tongues applauded when he wiped them on his shirt.

Then while the writhing tort lawyer ground the ball into his hip,

Defiance gleamed in Cuomo's eye, a sneer curled Cuomo's lip.

And now the cap on medical malpractice sphere came hurtling through the air,

And Cuomo stood a-watching it in haughty grandeur there.

Close by the sturdy batsman the malpractice cap unheeded sped-

"That ain't my style," said Cuomo. "Strike one," the doctors said.

From the crowds, black with people, there went up a muffled roar,

Like the beating of the storm-waves upon Long Island's shore.

"Kill them! Kill the lawyers!" shouted someone in the band;

And it's likely they'd a-killed them had not Cuomo raised his hand.

With a smile of Christian charity great Cuomo's visage shone;

He stilled the rising tumult; he bade the budget farce go on;

He signaled to the mandate relief pitcher, and the mandate relief spheroid flew;

But Cuomo still ignored it, and  Steve Levy said, "Strike two."

"Fraud!" cried the maddened millions, and the echos answered fraud;

But one scornful look from Cuomo and the People were awed.

They saw his face grow stern and cold, they saw his muscles strain,

And they hoped that Cuomo wouldn't let a ball go by again.

The sneer is gone from Cuomo's lip, his teeth are clenched in hate;

He pounds with cruel violence his silver spoon upon his plate.

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

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

Oh, somewhere in our favored land the sun is shining bright;

The band is playing somewhere, and somewhere hearts are light,

And somewhere men are laughing, and somewhere children shout;

But there is default in Albany — mighty Cuomo has struck out.

Would you buy NY Bonds knowing?

New York State Debt per person including local debt is $24,195.  For a family of four that is about $97,000. That is the highest in the USA.  And surprise, Cuomo's budget revenue predictions were a farce.

Andrew Cuomo's Latest Radio Ad Covers Up His Hidden Taxes And His Flubbed Corruption Cleanup

"The New York State Democratic Committee today [3/8/2011] released a new 60 second radio spot in support of Governor Andrew M. Cuomo's budget and ethics initiatives. "

 Here are the words of Hope and Change by Governor Andrew Cuomo in that radio spot:
  Hello – this is Governor Andrew Cuomo; you elected me to clean up Albany and to get the state’s economy running once again and that’s just what we are going to do.

We need a sweeping new ethics plan that will give us a government that we can be proud of; a government that works for the people and not for the special interest.

I proposed a new budget that closes a 10 billion dollar deficit with no new taxes; that’s right with no new taxes and it forces government to cut the waste and inefficiency.
Now, we need the state legislature to act and I need your help. Albany politicians need to hear your voice, democracy works when the people act.
Please join our team to build a new New York, go to www.cleanupalbanynow.com
Let’s get New York back to work. Thank you.

     Andrew Cuomo must have made this ad before he accepted his Medicaid Redesign Team's recommendations to
1.  "taxing radiology visits and physician-based surgeries...business groups across the state are hammering Cuomo on what they see as an about-face. His panel wants to expand the 9.63 percent surcharge on the other medical services to raise $100 million more a year. But that would add up to 2 percentage points more to health insurance premiums."
"The revenue-raising surcharge on medical services "is really a tax increase that will force employers and workers to pay more for health insurance," said Heather Briccetti, acting president The Business Council of New York State. ...  The Employer Alliance for Affordable Health Care called the measures "are nothing more than a hidden tax on New York's small business community."

2. For the Counties, which pay an equal share to NY State's expenditure, this year's Medicaid expenditure were $13.8 Billion and the cap on next year's expenditure will be $15.1 Billion(+9.4%)?
 Does increasing property taxes by $1.3 Billion not count as a tax increase?

 3. Is SEIU a special interest?   The New York Times reports, "New York’s influential health care workers’ union [SEIU 1199] appears on the verge of wringing significant victories out of Gov. Andrew M. Cuomo’s austerity budget, even as he nears potentially historic cuts in spending."

And what about Senator Kruger's corruption by taking over $1 million in bribes, where the NY Post's Fred Dicker reports: "Andy flubs big chance at cleaning up Capitol cesspool"

Tax increases, while promising none and flubbing cleaning up corruption?   When will Andrew Cuomo make a revised Radio Ad?

The Albany Budget Insiders Have A Large Lead, But Hope Remains As The Mighty Andrew Cuomo Comes To Bat

It's how the game is played.

The Albany Budget Preliminary Score Card:
  People of New York = P  versus Albany Insiders = A
first ten rounds
P-0; A-1   1. Medicaid Redesign Team was cutting the budget, but the Medicaid budget is up 9.4%
P-0; A-2   2. A cap was to be placed on local taxes, but Medicaid which is the largest budget item for Counties is up 9.4%
P-0; A-3   3. No new taxes promised, but a surcharge on medical procedures tax will raise $100 million dollars
P-0; A-4   4. The court budget was to be reduced by 10%, but a 27% increase in courts budget is likely.
P-0; A-5   5.  Lobbyists were to be removed, but Jeffrey Sachs, Cuomo confidant and lobbyist, leads Medicaid Redesign Team's recommendations and then is absent on the day the previously written report is presented.
P-0; A-6   6.  Cuomo promises to clean out Albany swamp and then is MIA when the Chief Judge Lippman is accused of $40 million dollar crime.
P-0; A-7   7. Proposed cap on Medical malpractice is promised, but will likely be blocked by Sheldon Silver in NY Assembly. (This is the old Albany Follies sideshow, where one part proposes and other part rejects and nothing happenings.)
P-0; A-8   8. "In the past week, health-care advocates brought in to advise Mr. Cuomo on Medicaid said he blind-sided them with back-room deals with the hospital industry and union workers."
P-0; A-9   9. "Mayor Bloomberg slammed Gov. Cuomo yesterday for unveiling a stricter teacher-evaluation plan that keeps intact the "last in, first out" law requiring that layoffs be based on seniority rather than merit.... But, if it doesn't repeal LIFO as the law of the land, it simply kicks the can down the road."
P-0; A-10  10. "Localities were quick to knock the first report ... from Mandate Relief Redesign Team, saying it falls short of the reforms needed.  ...Gov. Andrew Cuomo ... is seeking to cap the growth in property taxes to 2 percent a year. Governments and schools said they would be hard-pressed to abide by the cap without having some state requirements removed."   "What irked some on the 23-member panel was that while they had discussions with Cuomo's staff about the final version of the report, they only saw it minutes before it was released publicly."

Score for first ten rounds:
People of NY = 0

Albany Insiders = 10

But Hope is here:

Then from 5,000 throats and more there rose a lusty yell;

It rumbled through the valley, it rattled in the dell;

It knocked upon the mountain and recoiled upon the flat,

For Cuomo, mighty Cuomo, was advancing to the bat.

There was ease in Cuomo's manner as he stepped into his place;

There was pride in Cuomo's bearing and a smile on Cuomo's face.

And when, responding to the cheers, he lightly doffed his hat,

No stranger in the crowd could doubt 'twas Cuomo at the bat.

Cuomo Has New Taxes Hidden As Medicaid Reform And Counties Medicaid Share Up 9.4%

The Devil is in the details ~ unknown

  Did you hear about New York's new business friendly atmosphere with Cuomo saying, "No new taxes, period," or that your property taxes will be contained.  Well, the devil is in the budget details.

1.  "[Cuomo's] redesign team ...calls for taxing radiology visits and physician-based surgeries...business groups across the state are hammering Cuomo on what they see as an about-face. His panel wants to expand the 9.63 percent surcharge on the other medical services to raise $100 million more a year. But that would add up to 2 percentage points more to health insurance premiums."
"The revenue-raising surcharge on medical services "is really a tax increase that will force employers and workers to pay more for health insurance," said Heather Briccetti, acting president The Business Council of New York State. ...  The Employer Alliance for Affordable Health Care called the measures "are nothing more than a hidden tax on New York's small business community."

2. Did the brilliant intellects at the Medicaid Redesign Team consider that the tax on medical services will also have to be paid by the New York State Medicaid plan?     Duh.

3. As reported on this blog yesterday: for the Counties, this year's Medicaid expenditure were $13.8 Billion and the cap on next year's expenditure will be $15.1 Billion(+9.4%)?
 Does increasing property taxes by $1.3 Billion not count as a tax increase?

    Someone is happy reports the New York Times, "New York’s influential health care workers’ union [SEIU 1199] appears on the verge of wringing significant victories out of Gov. Andrew M. Cuomo’s austerity budget, even as he nears potentially historic cuts in spending."

Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages. ~H. L. Mencken

New York's Budgeted Medicaid Expenses To Rise to $15.1 Billion, While Cuomo And Medicaid Redesign Team Claim Cuts.

  Did the illusion of budget cutting by the NY State Medicaid Redesign Team work?   (The budget numbers reported below are just what NY pays out of its own pocket, other budget numbers report what New York State pays out in total and include New York's share and the federal funds passed through New York State for Medicaid expenses. See below*)


     "Governor Andrew M. Cuomo today accepted a report from the Medicaid Redesign Team which meets the Governor’s Medicaid spending target contained in his 2011-2012 budget by introducing a global cap on State Medicaid expenditures of $15.109 billion."


        $13.851 billion dollars was New York State Medicaid expenditures for the present year's budget (ends June 2011) as reported in New York Division of Budget Mid-year(December) report in Table 1,
but this was reduced by Federal Stimulus money received for this year's budget, which was
Approximately $5.9 billion of New York’s ARRA funding is projected to be used for General Fund budget balance in SFY 2010-11, with an additional $4.6 billion being passed through to local governments.


     Were you deceived by the illusion of Medicaid budget cuts?

1. This year, the NY State Medicaid expenditure was $13.8 billion and the cap on next year's expenditure will be $15.1 Billion?

2. Where is the missing federal stimulus $5.9 billion going to be conjured up from?

3. Is illusionary money able to balance a budget? 

4. What are the Counties going to do about their missing Federal $4.6 billion dollars and their increased $15.1 billion share that Cuomo's budget sends them?

*Notes on Medicaid Funding method in New York:
1. Medicaid is a joint federal-state program that provides health care to the poor. The feds split the Medicaid bill with the states, paying 50 percent of the program’s cost in richer states like New York and a larger fraction in poorer ones. Spending is open-ended: the more money states spend on Medicaid, the more money Washington sends them as its match. Crucially, though federal regulators set minimum requirements for who’s eligible and what services they receive, states can offer a range of additional services (prescription drugs, say), for which the feds nevertheless have to chip in. These federal dollars are a huge incentive for states to expand their health-care initiatives
2. For Medicaid, the Federal government pays 50%, New York State pays 25% and the counties, with no input pay, 25%
3. Some New York Medicaid facts:
    With 6.4 percent of the nation's population and 8.7 percent of all Medicaid enrollment, New York accounted for 14 percent of all Medicaid spending.
    New York's Medicaid program, including the local government share, was larger than the total budgets of 42 states.
    New York spent 25 percent more than California, whose Medicaid program covered twice as many people.
    New York's federal, state and local Medicaid spending exceeded the Medicaid budgets of Florida, Texas and North Carolina combined.

New York Medicaid Redesign Team Leader Absent When Report Is Released

You can fool some of the people all of the time and all of the people some of the time, but you can not fool all the people all of the time

     Albany magic solves Jeffrey Sachs problem from this blog's yesterday post and New York Times article, "Sachs should register as a Lobbyist."

   Cuomo, the illusionist, hopes the quick sleight of hand has you believe the "Medicaid Redesign Team handed off a package of 79 recommendations designed to save $2.3 billion from the health care program in the 2011-2012 fiscal year." without the input of their leader, Jeffrey Sachs.  
"Conspicuous in his absence from the Thursday meeting was Jeffrey Sachs, a Cuomo friend and Redesign Team member whose private consulting work for several New York hospitals has drawn concern from ethics watchdogs. A spokesman said Sachs had a scheduling conflict."

     Supposedly, they would save $2.3 billion out of almost $53 billion, but of course, this Albany budgeting and this savings is not on this year's budgeted amount, but on a projected larger amount for next year. "The meeting began with good news from state Budget Director Robert Megna, who reported that due to slower-than-expected growth in the state's Medicaid caseload, some $375 million of the cost savings from the group's original target of $2.85 billion wouldn't need to be accounted for in their recommendations."

     Now was the illusionist successful? Do you believe Cuomo's Lobbyist friend, head of Medicaid Redesign Team, had no input into recommendations issued the day he didn't show up, or that the savings were on this year's expenditures and not only on projected increases? 

The results are in:   Cuomo and his Medicaid Redesign Team fail

People of New York   lose

Lobbyists and Medicaid-trough-feeders win

Here's the blog's January 17, 2011 letter to Cuomo:
Dear Governor Cuomo:
      Send your Medicaid Redesign Team (committee) packing and preparing for their new diet.  It's reported, "Every year it's the 800-pound gorilla of the state budget, soaking up money that could be used for tax cuts to make our economy competitive, or for expanding health-care coverage, or for improving education—or for all that, and more. Medicaid is also the major component in county property taxes—and New York's excess property tax burden, now about 62 percent above the national average per capita."
        I've copied a comparison of various State's Medicaid Expenditures per person served for 2008.  The present numbers are much higher, but the comparison remains.  Note that very progressive States with large urban centers have much lower per person expenses.  Read the data and then the solution which follows.

Medicaid Cost Per Person Served, 1998
(Red States less than half New York's cost)
New York ~  $8,961

California $2,386,
Washington $2,563
Oregon $3,652
Virginia $3,740
Florida $3,607
Texas $4,419
Illinois $4,435
Delaware $4,440
Michigan $4,494
Ohio $5,346
Massachusetts $6,870
Wisconsin $5,457
Pennsylvania $5,808
New Jersey $6,856
Rhode Island $6,603

Is there less compassion for the poor in California, Illinois, Michigan, Oregon, Wisconsin, Pennsylvania, or Washington?  No need to reinvent the wheel or waste time drafting new laws and regulations, just copy them from California or Illinois or Michigan or Oregon or Virginia or even, Texas.   Watch the Medicaid costs be cut in half, local property taxes fall and state budget be easier to balance.
 

An Albany Lobbyist's Ethics Problem Are Solved As He Is Transformed To Consultant For Andrew Cuomo

When deeds speak, words are nothing.  ~African Proverb

   Here's the deeds from Cuomo's Medicaid Redesign Team: "The consumer advocacy group the Center for Justice and Democracy is calling on Medicaid Redesign Team member and Cuomo confidante Jeffrey Sachs to release “a sworn affidavit that you have not discussed the Medicaid Redesign Team or any issue covered by the Medicaid Redesign Team with any of your clients and to explain exactly what services you are being paid for by these clients and how much.”  and "You have 'quickly emerged as a leader on the governor’s 27-person Medicaid redesign team' while “working as a paid consultant to some of the biggest players in the New York health care industry, including Mount Sinai Medical Center, NYU Langone Medical Center and the state’s largest association of nursing homes, all of which have financial interests at stake in the coming Medicaid changes.”

 Here's Cuomo's words  in his Inaugural Speech:   (Note all the trust, believe, and restore words.)

1. "That’s what this administration is going to be all about — restoring the pride, making the government work, my friends. So people once again trust the government and trust the institution. So that people once again believe in government, in themselves and in this state.  And that’s what this is all going to be about. Rebuild the government, restore confidence, restore trust, get the people of this state believing once again. Believe in government, believe in themselves, believe in each other, believe in our future. Believe in our potential, believe that we can fulfill this dream of New York and we’re going to make this state the Empire State, greater than it’s ever been before."

2. "The special interests who have ruled our government for years must give way to the people’s agenda."

3. "Number 2 is going to be cleaning up Albany and restoring trust because Bob [Duffy] is right, you have nothing without trust."

4."Too often government responds to the whispers of the lobbyists before the cries of the people."
 
5. "The words “government in Albany” have become a national punch line. And the joke is on us. Too often government responds to the whispers of the lobbyists before the cries of the people. Our people feel abandoned by government, betrayed and isolated, and they are right."

  Here's how the Illusionist has resolved the disparity by "the public relations firm of Ken Sunshine and Shawn Sachs[nephew of Jeffery Sachs], Gov. Andrew Cuomo’s good pal Jeffrey Sachs won’t go to bat for his clients in Albany for as long as Cuomo has a government to run. Declaring that Jeffrey Sachs is not a lobbyist, but a consultant, the spokesman, Jesse Derris, said Jeffrey Sachs has changed his way of operating as a consultant for a host of health care institutions. This comes as Cuomo is trying to get lawmakers to adopt a sweeping ethics reform plan."

 Here's what you now see: Shawn Sachs now deals with the clients for fees, while Jeffery Sachs deals with the government.

Here's today's latest that Sachs should register as a Lobbyist in NY Times.

Now you see it. now you don't.  An illusionist at work

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

As I grow older I pay less attention to what men say.  I just watch what they do.  ~Andrew Carnegie

Cuomo's Crusade Falters As Moody's, Bankruptcy And Default Circle

The demagogue is one who preaches doctrines he knows to be untrue to men he knows to be idiots. ~ H. L. Mencken

A modern Tenth Crusade has been declared by 'The Son of Mario" Cuomo.  Here's a five-minute video version hoping to enlist people to support him in his battle against the “special interests and lobbyists”


"Cuomo again blamed state spending on 'permanent law'”  Permanent law is a fake malady made up to sell "Cuomo's Snake Oil Cure For Spending"  As New York's top court, the Court of Appeals, noted a half-century ago, it is fundamental to our democratic system that "one Legislature cannot be limited or bound by the actions of a previous one."

Cuomo hopes "to enlist people to support him in his battle against the “special interests and lobbyists” and promised his proposed-budget would “shake up the Albany establishment.”  Crusader Cuomo has already isolated those special interests and lobbyists to his committees, such as the Medicaid Redesign Team;  even Al Sharpton had input in Cuomo committees.

Cuomo blusters, “The real power of the governor comes when the people of the state stand with him. I need you to make your voice heard now.  We can right the wrongs of the past.”

Rise up; join "The Son of Mario" in his Crusade Against Special Interests and Lobbyists and buy into "Cuomo's Snake Oil Cure For Spending."
 
     Meanwhile, Moody’s joins the pension skeptics, with "Moody’s new approach is expected to be adopted by other credit-rating agencies ... to find borrowing for projects more costly and their bond offerings less attractive to investors.  ... It also reflects skepticism going forward about the expected rate of return on investment used by most pensions funds, such as the 7.75 percent figure used by the California Public Employees’ Retirement System."  Andrew is  delusional, if believes the 7.50% rate he uses is an improvement.

Reality, the Chinese, Bankruptcy, default, $3 Cuomos, and the Hand Writing on the Wall are closing in on "The Son of Mario," and his Crusade.

"The worst enemies of the republic are the demagogue and the corruptionist." ~ T. Roosevelt

A Bankruptcy Chill Hits Cuomo Adding To Albany's Below Zero Freeze With NY Medicaid Excesses Unaddressed And 12,000 Jobs Lost

You know you're directly over the enemy, when the flack gets heavy.

   Bankruptcy has sent a chill up the spine of the true believers and media hacks for Andrew Cuomo and other Governors facing fiscal disaster.   The Business Insider's hacks have reported, "The Cheerleading For State Bankruptcies And Municipal Defaults Is Downright Ghoulish," and Business Insider offers the following 12 reasons why State finances won't go broke: (Reasons blue, comments red)

1. Outstanding muni debt remains within historical parameters.  What was the historical parameters before the mortgage collapse, or NYC before fiscal collapse, or stock market historical values before a crash or major devaluation?

2. Interest payments absorb less than 5 percent of current expenditures.   Not after interest rates triple or more and more borrowing is needed for pension contributions.   See example of Greece or Ireland.  Link

 3. Municipal bond default is extremely rare -- less than one-third of 1 percent.  European Counties were defaulting rarely, but now cash infusions and/or  the EU insuring their bonds is not extremely rare.   Link

4. There wasn't a bubble in muni bonds, nor any exotic derivatives.   There is insurance (a derivative) on some bonds.   Will a massive default also result in an insurance default?  Isn't the actuarial basis of the insurance based on very limited expected default?  Yes.   And, lots of litigation claiming deliberate unnecessary default as a reason not to pay said insurance will result and/or bankruptcy filing by such insurers.

5. Pensions were fully funded until they had to weather back-to-back recessions.   A big lie, check out California or NY. Link CA-1/2 trillion dollars pension shortfall    NY Link     Central NY Muni.

6. Anyone claiming there are $3 trillion in unfunded pension liabilities is ignore investment earnings -- which are the majority of returns.   Hey, dopey, check out NY's Madoff style promise of 7.5% Safe Return.    Link.http://cuomotarp.blogspot.com/2010/11/from-ponzi-to-madoff-to-hevesi-to.html   or this link to California's 1/2 trillion dollar unfunded liabilities

7. Pension funds average over 8 percent returns through a diversified portfolio. Why would they invest only in fixed income?  Get real, see NY's return for past 5 years was 01.1%.   Link.

8.  Municipalities devote only 3.8 percent of their budget to pension funding: A modest increase could solve most problems.  Is that due to the phony assumption of a 7.5% Safe Return on pension investments or the borrowing by workers to fund their pensions, so they don't realize the true amount they are contributing to their pensions? Link.

9. Pension plans are legally protected. Health benefits generally are not. 

 

Bye, bye, granny, it's for the good of the State.

10. In fact, most states WILL have to scale back health benefits -- but won't default on pensions or bonds.  But NY and Cuomo, if judged by his record of failures to prosecute Medicaid frauds as AG,  will make sure the massive overspending by NY on Medicare remains. Link 1 Link 2 Link 3.

What about that  $28 billion overspending on NY medicaid?  Link.

11. Municipalities have the next 30 years to remedy any pension shortfalls.  No, the money is missing now and present contributions must be many multiples of prior budgeted amounts.   Link
See #5, 6, 7 and 8 above.

12. Mass default doesn't seem likely, but austerity does.   This opinion uses word "mass" so as to leave some smaller number of States such 6 out of 50 states.   Link to Finance Bazaar.

     Andrew Cuomo must be waiting for a bankruptcy bailout because he isn't  cutting Medicaid to California levels and saving at least $28 Billion a year?  Oh, I forgot Cuomo recovered 0.6% of Medicaid fraud.

     Although the latest fraud is, "New York's seemingly endless cavalcade of corruption continues, with the Young Adult Institute National Institute for People with Disabilities Network and five of its current and former officers ordered to pay $18 million in civil damages under the False Claims Act," as usual the defendants aren't going to jail.   "The defendants will pay $7.2 million to the United States and the rest to New York - though YAI does not admit that it did anything wrong."
   Is this to be Cuomo's new ethical standard: Cheat, steal and if you get caught, you'll have to pay some of it back. Will this be equally applied to the ordinary criminal, not in a suit and without a fancy campaign contributing  lawyer?

    .Cuomo to cut 12,000 jobs.  Link 1 Link 2   But why must New York fund this Medicaid corruption with $28 Billion dollars and then face bankruptcy and 12,000 lost jobs?

Will Andrew Cuomo Use Proven Medicaid Savings Plans Or Will Lobbyists Win

"Meetings are a symptom of bad organization. The fewer meetings the better." ~Peter F. Drucker

Dear Governor Cuomo:
      Send your Medicaid Redesign Team (committee) packing and preparing for their new diet.  It's reported, "Every year it's the 800-pound gorilla of the state budget, soaking up money that could be used for tax cuts to make our economy competitive, or for expanding health-care coverage, or for improving education—or for all that, and more. Medicaid is also the major component in county property taxes—and New York's excess property tax burden, now about 62 percent above the national average per capita."
        I've copied a comparison of various State's Medicaid Expenditures per person served for 2008.  The present numbers are much higher, but the comparison remains.  Note that very progressive States with large urban centers have much lower per person expenses.  Read the data and then the solution which follows.

Medicaid Cost Per Person Served, 1998
(Red States less than half New York's cost)
New York ~  $8,961

California $2,386,
Washington $2,563
Oregon $3,652
Virginia $3,740
Florida $3,607
Texas $4,419
Illinois $4,435
Delaware $4,440
Michigan $4,494
Ohio $5,346
Massachusetts $6,870
Wisconsin $5,457
Pennsylvania $5,808
New Jersey $6,856
Rhode Island $6,603


      Is there less compassion for the poor in California, Illinois, Michigan, Oregon, Wisconsin, Pennsylvania, or Washington?  No need to reinvent the wheel or waste time drafting new laws and regulations, just copy them from California or Illinois or Michigan or Oregon or Virginia or even, Texas.   Watch the Medicaid costs be cut in half, local property taxes fall and state budget be easier to balance.

Cuomo's choice: "Do or not do There is no try" ~ Yoda
or "Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel." ~John Quinton

"Governor Renault" Cuomo Is Having A Blast Repeating The Same Line From Casablanca

News Flash: Cuomo had promised to improve the business climate with no new taxes and was shocked to learn, "NY owes the Federal Government "$115 million in interest on $3.2 billion [the loan's debt is not in NY budget], the cost will be passed on to employers in the form of a tax surcharge. The chickens are coming home to roost.

Now on to Theatrical diversion, as Andrew Cuomo and The Albany Follies are remaking "Casablanca" and will highlight Andrew Cuomo's starring role as the modern Captain Renault

                 The Original Casablanca script:

Rick:   How can you close me up? On what grounds?
Captain Renault:  I'm shocked, shocked to find that gambling is going on in here!
a croupier hands Renault a pile of money
Croupier: Your winnings, sir.
Captain Renault: Oh, thank you very much.

       "Governor Renault" Cuomo was earlier "Attorney-General Renault" Cuomo investigating Medicaid corruption and some how he missed:  Evil Republicans (Congresspersons) in US House report released a "congressional report ... During a two-year investigation, 65,000 instances of prescription fraud cost U.S. taxpayers about $65 million in the top five states alone. An additional $2.3 million went to practitioners and pharmacies banned from federal health care programs, nearly 2,000 prescriptions were written for dead patients and 1,200 prescriptions were written by dead doctors."

    And in non-Medicaid fraud, "Attorney-General Renault" was shocked that in the district of Peter Rivera, a Bronx Democrat Assemblyman, "investigators were eyeing more than $200,000 in interest-free loans made from 'a state-funded community organization with strong ties to a veteran assemblyman."

    "Governor Renault"is still shocked how could they could smear him with his pure heart and label his  "New York as one of five states with the highest rate of Medicaid fraud."     Of course, all this thieving and corruption will be eliminated when ethics education is mandated. "Governor Renault" knows those poor educational-deprived victims facing criminal charges hadn't the benefit of the ethics classes, he is proposing.

     Meanwhile, "Governor Renault" will continued to be shocked when his Medicaid Redesign Team can't succeed in its goal to reduce Medicaid costs down (50%?) while maintaining and improving quality.   "Governor Renault has heard that:  1."Meetings are indispensable when you don't want to do anything." ~John Kenneth Galbraith

2. “If you want to kill any idea in the world today, get a committee working on it.” ~Charles Franklin Kettering.

3. Committees are “A cul-de-sac to which ideas are lured and then quietly strangled.”`~John A. Lincoln.

4. "Meetings are a symptom of bad organization. The fewer meetings the better."(Peter F. Drucker)

But "Governor Renault" will change that by expanding his committees and holding more meetings.

  Cuomo's Medicaid Redesign Team is flourishing and  expanding to "seeking everyone’s help in finding solutions."    The Team "is charged with recommending ways of cutting costs and improving quality and efficiency in the state’s nearly $54 billion [up from the paltry $38 Billion from Comptroller's report] health-care program for the poor. In addition to attending one of the hearings, members of the public can submit any ideas online. The panel will submit its initial report to the governor March 1, in time for recommendations to be used in crafting the 2011-12 state budget." 
      “At its current rate of growth, New York’s Medicaid program is unsustainable,” said Redesign Team Co-chairman Michael Dowling, president and CEO of the North Shore Long Island Jewish Health system."   "Governor Renault" will be shocked when the Co-chairman has not recommended a 50% reduction in his Medicaid funding and didn't they hear that cutting the growth of spending is not cutting spending? "Governor Renault" has just thanked an aide for giving him a summary of how much was contributed to his campaign by members of his Medicaid Redesign Team.

Isn't Andrew handsome in his Renault uniform; doesn't he say his lines believably; hasn't he's tried harder than anyone else?
[Now, applaud] [please, applaud]

 Do, or do not. There is no 'try.' ~ Jedi Master Yoda

P.S. Andrew hasn't been sleeping well.  He's keeps dreaming of the "Ghost of  NY yet to come."

Cuomo Fiddles While His Committees Dither And Tax Increases Loom

"Meetings are indispensable when you don't want to do anything." ~John Kenneth Galbraith

     Cuomo has appointed a Medicaid Redesign Team filled with Medicaid trough feeders and four legislators.
"In a majority of the State’s counties, Medicaid costs alone account for more than half of the entire county tax levy. New York spends more than twice the national average on Medicaid on a per capita basis, and spending per enrollee is the second highest in the nation. At the same time, New York ranks 21st out of all states for overall health system quality and ranks last among all states for avoidable hospital use and costs."  Cuomo must have not heard that appointing a Fox in charge of the chickens doesn't work for the chickens.

“If you want to kill any idea in the world today, get a committee working on it.” ~Charles Franklin Kettering

    And Cuomo wasn't done, he appointed a Mandate Relief Squad filled with four legislators and the remainder are 9 who pay for mandates and 10 who benefit from mandates.  While, "New York has the highest local taxes in America as a percentage of personal income – 79 percent above the national average;" this committee is stacked against the taxpayers.

Committees are “A cul-de-sac to which ideas are lured and then quietly strangled.”`~John A. Lincoln

   Questions of the day:  1. Since, "Meetings are a symptom of bad organization. The fewer meetings the better."(Peter F. Drucker),   why is Cuomo ignorant of the folly of Committees?

2.  Does he think he'll fool the voters by shifting blame and say the committees failed, not me?

3. How much taxpayer money is wasted on these large committees and their expenses?   Are the members serving without compensation and expenses?

     Andrew's solution:  Andrew Cuomo has begun lessons on his "Nero's Fiddle," so he can play the fiddle while giving his April speech telling the voters he tried, but the ablest and best on his committees couldn't find enough or anything to cut and so it not his fault that we follow Illinois where, Illinois Lawmakers Propose 75 Percent Income Tax Hike.