Prodigal Conservative Cuomo Splurges On Irene, While Liberal Vermonters Proceed Frugally

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

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. 
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?

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.

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

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


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

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

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

     When Cuomo borrows this $4.3 billion, will the bond rating agencies downgrade NY debt and force up borrowing costs in the Cuomo budget, or will they understand that Cuomo meant well?  What will happen when those other things that Cuomo forgot to fund in his budget need borrowing to fund them, such as:
1.  New York Pension Books are Cooked
2  The Cuomo 2011-2012 Budget proposes to "eliminate a $10 billion dollar deficit without raising taxes or borrowing" and then is borrowing $5.6 Billion dollars.
3. Cuomo has a "funds shift [that] would result in the use of state bond proceeds for payment of a portion of debt service on MTA revenue bonds."
4. Cuomo's budget used the "Madoff-like" assumption of a 7.5% safe return on pension investments. and continues to allow borrowing to fund contributions.
5. Cuomo failed to budget in the required repaying of the federal government for Medicaid frauds. This is minimally estimated at $6.4 billion.
6. Cuomo forgot what happens when New York's bond rate rises and NY's borrowing costs  move up from $5.6 Billion $18.8 Billion. 

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

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

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

Standard And Poors
55 Water Street
New York, New York 10041

Fitch's
One State Street Plaza
New York, NY 10004

Re: protecting buyers of NY bonds and your potential liability.

Dear Sirs:
    Attached is a copy of the latest 7/18/2011 post on CuomoTarp.blogspot.com.    The Financial Crisis Inquiry Commission established  by Congress had reported on page 25: "We conclude the failures of credit rating agencies were essential cogs in the wheel of financial destruction." You realize your potential liability, if this occurs with NY State Bonds.    There will be lots of angry NY State Bond Holders who will look for compensation for your scienter (knowing) neglect and/or malfeasance, if you fail to act appropriately.        
         NY Debt per person including local debt for a family of four is about $97,000 (the highest in the USA).    Bob Brinker already recommended seniors leave the high tax States.   You need to protect NY State Bondholders with truthful ratings

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

Sincerely yours,
CuomoTARP.blogspot.com

Note: all links are available on the CuomoTARP.blogspot.com website where a copy of this letter is posted.
Attached: Blog post dated July 18, 2011

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

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

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

The Revenue Demands of Public Employee Pension Promises

       by Robert Novy-Marx, University of Rochester/NBER

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

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


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

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

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


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

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

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

And somewhere men are laughing, and somewhere children shout;

But here in New York, the taxpayers will strike out

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

  
       The media is finally reporting that the NY Medicaid cat jumped out of the bag.  "New York spent $2,903 per person on Medicaid in 2010 — a third more than any other state. The U.S. average is $1,364. Nevada spent the least: $666 per person."    That means that if Medicaid is block granted to the States at the National average, NY will receive less and must fund the excess out of its budget and tax revenue. New York's Medicaid is capped at $60.4 billion.
So 1,364 divided by 2,903 x $60.4 billion = $28.38 billion.  or, New York must pay for an additional $32 billion ($60.4 billion - $28.4 billion)

link to Medicaid calculations

       Meanwhile, the Financial Barbarians of the World are at the gates of US debt financing and the prior trickle down effect will become a tsunami effect on States like New York which has the highest state and local debt of of $31,536 compared to USA debt per person of $44,805.    link
       New Yorkers cannot afford to pay the average cost of all government benefits in New York at $9,442 per person and lenders will soon all figure it out.

Here are the reports on the Financial Barbarians landing on our shores.
End of America as we know it
New York is the Greece among the US States and bond interest will skyrocket 
China will (is) selling its US debt and this will force rise in US interest rates 

The handwriting on the wall is coming true.
  Cuomo and NY Bondholders See The Writing On The Wall

Rating Agencies Need To Revalue New York Bonds To Avoid Liability

Gold hits $1,500.   A Creditor: One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions. ~ from Ambrose Bierce's Dictionary


Letter by registered mail:  CuomoTARP.blogspot.com
April 19, 2011

To: Moody's Investors Service
175 Federal Street, Suite 501, Boston, MA 02110
Standard & Poors
55 Water Street New York, New York 10041
Fitch's
One State Street Plaza,  New York, NY 10004

 
Re: protecting buyers of NY bonds and your potential liability.

Dear Sirs:
         You have been sent a copy of Three Billion Dollar Medicaid Fraud By New York State dated April 13, 2011.    The Financial Crisis Inquiry Commission established  by Congress reported on page 25: "We conclude the failures of credit rating agencies were essential cogs in the wheel of financial destruction."   You realize your potential liability, if this occurs with NY State Bonds.            

     Standard+Poor’s lowered its outlook for U.S. debt to “negative” from “stable,” and woke up Washington.  NY debt must follow.  Comptroller DiNapoli's cash report for end of March reported, "All Funds tax collections were $926.3 million below initial projections included in the SFY 2010-11 Enacted State Budget, but slightly above projections made March 3."    This is double talk, which means he knew on March 3, 2011 that the revenue predicted in our budget wasn't coming, so we revised our figures lower, so he could report we received more than expected.

   The rating agencies must properly rate NY bonds based on the above mentioned letter and
   1. Cuomo's budget expects more money in cigarette taxes, but that is dashed by expected crime wave of smuggled cigarettes. link 1  link 2
   2. The World new economic reality is reported in  Andrew Cuomo; A State Bankruptcy And NY Bond Devaluation  where factors outside of NY control the bond market for NY bonds. 
   3.  New York Pension Books are Cooked
   4. New York Bonds Are Down Rated Based On Cuomo's Budget because
a.  The Cuomo 2011-2012 Budget proposes to "eliminate a $10 billion dollar deficit without raising taxes or borrowing" and then is borrowing $5.6 Billion dollars.
b. Cuomo has a "funds shift [that] would result in the use of state bond proceeds for payment of a portion of debt service on MTA revenue bonds."
c. Cuomo's budget used the "Madoff-like" assumption of a 7.5% safe return on pension investments. and continues to allow borrowing to fund contributions.
d. Cuomo failed to budget in the required repaying of the federal government for Medicaid frauds. This is minimally estimated at $6.4 billion.
e. Cuomo forgot what happens when New York's bond rate rises and NY's borrowing costs will move up from $5.6 Billion $18.8 Billion.  
e. Cuomo forgot about repaying the Unemployment Insurance: State Trust Fund Loans of  $3.1 billion.   Cuomo must pass this on in higher unemployment contributions by New York Employers and watch the Cuomo Business Friendly New York fizzle. 
f.  Fitch Downgrade Added $2.99 Billion in Deficit To Andrew Cuomo's Budget Farce
g.New York has the highest State+local debt per person in USA at a total debt per person of $31,536 compared to USA debt per person of $44,805.
h. Andrew Cuomo's Hope For Increased Tax Revenues Was False  because he hasn't budgeted the State's payment of the entire unemployment and extended unemployment benefits of laid off workers, such as the 500 court employees which are just a beginning of NY State layoffs.  These unemployed will reduce Personal Income Tax receipts,User Taxes and Fees, and Business Taxes (larger unemployment reduces earnings from businesses)
i. New Yorkers paid $48 billion in property taxes in 2010 with the highest local property taxes in USA, 74% above national average.

       Bob Brinker recommends seniors leave the high tax States.   New York has the highest taxes.  Andrew Cuomo's Business Friendly Puff Pieces will Fizzle As Reality And Medicaid Block Grants Close In.
Who'll be left to repay the bonds? Please do your duty and protect buyers of New York Bonds with up-to-date ratings.

                                              Sincerely yours, 

                                              CuomoTARP.blogspot.com

Note: all links are available on the CuomoTARP.blogspot.com website where a copy of this letter is posted.
Attached:  Three Billion Dollar Medicaid Fraud By New York State In Cuomo Budget Sent To Congress For Oversight  dated April 13, 2011

Three Billion Dollar Medicaid Fraud By New York State In Cuomo Budget Sent To Congress For Oversight And Demand That Eric Holder Be Replaced By Special Prosecutor

Copy of letter sent:  CuomoTARP.blogspot.com           April 13, 2011

      To: Eric Holder, US Attorney General,
 Darrell Issa, Chair House Oversight and Government Reform; Lamar Smith, Chair House Judiciary; Patrick J. Leahy, Chair Sen. Judiciary; Charles E. Grassley, Sen. Judiciary; Paul Ryan, Chair House Budget; Harold Rogers, Chair House Appropriations; Kent Conrad, Chair Sen. Budget; Jeff Sessions, Sen. Budget; Daniel K. Inouye,Chair Sen. Appropriations;  Thad Cochran, Sen. Appropriations; Tom Harkin, Chair Sen. Health; Michael B. Enzi, Sen. Health.;    and Andrew Cuomo, NY Governor.

  Re: Multi-billion dollar fraud: Special Prosecutor required for the Major Criminal Fraud by NY State officials and others taking billions of dollars a year in federal Medicaid funds.   Eric Holder and the NY Offices of the US Attorney have failed to prosecute and obtain refunds.   Holder has an 18 year history of covering up for Andrew Cuomo when billions of dollars are missing.    Congressional oversight of the Justice Department is needed.  Congress must end misappropriations and deduct past fraudulently obtained funds from present appropriations. Block grants would shift policing to the State.   Andrew Cuomo must adjust his 2011-2012 budget for that refund and remove such anticipated funds from 2011-2012 budget ($3 billion dollars added to budget deficit)

Dear Federal Officials and Governor Cuomo:

    The following newspaper reports show massive, in excess of $1 billion dollars, fraudulent criminal taking of federal funds by NY State

    1. "Daily rate for Medicaid patients tops $5,000 in nine institutions in NY and was described as a "cash cow for the State."   "Introne, Gov. Andrew Cuomo’s liaison, said state officials were working with the U.S. Centers for Medicare and Medicaid Services “to analyze and resolve the matter."
http://www.poughkeepsiejournal.com/article/20110402/NEWS01/110402002/Daily-rate-for-Medicaid-patients-tops-5-000?odyssey=tab%7Cmostpopular%7Cimg%7CFRONTPAGE

    2. It was reported in Wall Street Journal that, "The state spends $700 million a year to house about 1,400 disabled people in the facilities. But it bills Medicaid more than three times that amount. By taking advantage of federal matching funds, the state pockets approximately $1 billion extra every year—and uses it to subsidize other areas of the budget."

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

   And 3.  $22 billion dollar fraud as NYS Keeps Getting Caught For Committing Fraud, But There Never Seems to Be Any Consequences
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/ 


     These are criminal fraud by NYS employees and others to obtain federal Medicaid funds.  The federal criminal laws violated are copied below.  These criminal frauds have been a continuing problem in NY State as this blog had earlier reported:
1. Was Cuomo MIA With A $1.2 Billion Per Year Fraud?     http://cuomotarp.blogspot.com/2010/09/was-cuomo-mia-with-12-billion-per-year.html

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


     Eric Holder* has known since 1993 of New York State's complicity in defrauding the Federal government since Holder was a US attorney for D.C. and signatory to the "Denoncourt" consent order where New York State paid the U.S. $26.97 Million To Settle federal funding fraud.
http://www.justice.gov/opa/pr/Pre_96/December94/725.txt.html 

    Holder was covering up for Cuomo as Deputy Attorney General for the $17 billion and then $59 billion dollars missing at HUD under Cuomo and his refusal to prosecute despite the recommendation of the the Inspector General and also, the Farkas scandal and the GAO reported HUD mortgage flipping frauds .
http://thekomisarscoop.com/2006/08/fees-for-our-friends-the-scandal-that-taints-andrew-cuomo/
 http://cuomotarp.blogspot.com/2010/10/andrew-cuomos-predatory-heart-of.html
http://www.villagevoice.com/2006-08-29/news/andrew-cuomo-s-2-million-man/

    Eric Holder must appoint a Special Prosecutor because of 1. his continuing conflicts; 2. his failure to act on this continuing crime for 18 years involving the highest levels of NY State government; and 3. his long history of failing to prosecute crimes involving Andrew Cuomo.  The NY offices of the US Attorneys have local conflicts which require a Special Prosecutor without ties to local interests and political figures.

       Darrell Issa, Lamar Smith, Paul Ryan, Harold Rogers and their committees in the House and the Senators above named and their committees are asked to look into these yearly thefts and frauds of more than a billion dollars a  year.  Medicaid block grants would shift this corruption directly to NY State and eliminate the over twenty years of fraud by NY State in the Medicaid program. Why was Eric Holder unable to prosecute and obtain refunds, even with a prior "Denoncourt consent decree" signed by Holder at Justice Department years ago?

       Andrew Cuomo must make a budget deduction of $3 billion dollars for these frauds, as $3 billion dollars less Medicaid funds will be received by NY State and make contingencies for the larger potential $22 billion cost.

                       Sincerely yours,


            CuomoTARP.blogspot.com

*In 1988, Ronald Reagan appointed Holder to serve as a judge of the Superior Court of the District of Columbia. Holder left the bench in 1993 to become US Attorney for the D.C. by Bill Clinton. The Denoncourt action was brought in D.C..  Holder was the US Attorney for D.C. and oversaw the case from 1993 through the settlement order in 1994.  In 1997, Clinton nominated Holder to be the Deputy Attorney General.
cc: others, credit rating agencies
P.S. the above links can be accessed directly in the copy of this letter at CuomoTARP.blogspot.com


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

§1035. False statements relating to health care matters
Whoever, in any matter involving a health care benefit program, knowingly and willfully— (1)falsifies, conceals, or covers up by any trick, scheme, or device a material fact; or makes any materially false, fictitious, or fraudulent statements or representations, or makes or uses any materially false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry, in connection with the delivery of or payment for health care benefits, items, or services, shall be fined under this title or imprisoned not more than 5 years, or both.

§1031. Major fraud against the United States
Whoever knowingly executes, or attempts to execute, any scheme or artifice with the intent— to defraud the United States; or to obtain money or property by means of false or fraudulent pretenses, representations, or promises, in any grant, contract, subcontract, subsidy, loan, guarantee, insurance, or other form of Federal assistance, ..., if the value of such grant, contract, subcontract,subsidy,loan, guarantee,insurance,or other form of Federal assistance, or any constituent part thereof, is $1,000,000 or more shall, subject to the applicability of subsection (c) of this section, be fined not more than $1,000,000, or imprisoned not more than 10 years, or both.

§286. Conspiracy to defraud the Government with respect to claims

Whoever enters into any agreement, combination, or conspiracy to defraud the United States, or any department or agency thereof, by obtaining or aiding to obtain the payment or allowance of any false, fictitious or fraudulent claim, shall be fined under this title or imprisoned not more than ten years, or both.

§287. False, fictitious or fraudulent claims
Whoever makes or presents to any person or officer in the civil, military, or naval service of the United States, or to any department or agency thereof, any claim upon or against the United States, or any department or agency thereof, knowing such claim to be false, fictitious, or fraudulent, shall be imprisoned not more than five years and shall be subject to a fine in the amount provided in this title.

§1621. Perjury generally
who having taken an oath before a competent tribunal, officer, or person, in any case in which a law of the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true, willfully and contrary to such oath states or subscribes any material matter which he does not believe to be true; or in any declaration, certificate, verification, or statement under penalty of perjury as permitted under section of title 28, United States Code, willfully subscribes as true any material matter which he does not believe to be true; is guilty of perjury and shall, except as otherwise expressly provided by law, be fined under this title or imprisoned not more than five years, or both.

§1622. Subornation of perjury
Whoever procures another to commit any perjury is guilty of subornation of perjury, and shall be fined under this title or imprisoned not more than five years, or both

Pension Debts And Warren Buffet Sink New York's Budget Into Huge Debt

The chickens come home to roost

    New York's "Madoff-like" promised 7.5% safe return on pension investments chickens are headed home to roost.   Warren Buffet says 6.0% would be a better rate.    It is reported as  "The State Pension Time Bomb" where,  "Poor accounting rules and flagrant irresponsibility have sped up the states’ day of reckoning."  This blog previously in November 2010 reported:   link

      Madoff had promised safe returns of 10% before the economic recession began.  The SEC warns in its Ponzi Schemes – Frequently Asked Questions that Ponzi schemes share common characteristics:
          High investment returns with little or no risk
          Overly consistent returns.
  Comptroller Di Napoli has reduced his hope to earn 8% percent a year to 7.5%.  Except for Madoff, who guarantees a 7.5 percent safe rate of return?  Or 7 percent?  Or 6 percent?  No junk bonds allowed.   NY's real rate of return was less than 4% for ten years.
Even worse, NY's return for past 5 years was 01.1%.   Link.

A report in the August issue of Governing, called New York State, the nationwide pension leader with Pension liability: $141 billion.    The NY Times, agrees and had  "How to Cheat a Retirement Fund", an "approach that assumes, as economists generally do, that even corporate accounting standards in this area are too lenient, public pension underfunding is about $3.5 trillion, or one-quarter of gross domestic product."

  "Private pension plans must discount their liabilities based on a market rate—typically, a corporate or U.S. government bond rate—which is often much lower than the plans’ projected returns." 
*Return US Treasury: 10-MONTH NOTE 10-15-2010 2.475%
  There appears to be a large difference between 2.475% and 7.5% and DiNapoli's assumed drop from 8% to 7.5%.

Bottom line: New York's balance sheet is tipped by an unfunded pension liability of up to $143 billion dollars.  Already, the New York Debt per person including local debt is $24,195. (For a family of four that is about $97,000.)
Now add another $143 Billion divided by 19.4 million (NY Population) to add another $ 7,341 to that $24,195.

NY State and local debt per person $24,195
NY unfunded pension debt per person $7,341

NY total debt per person $31,536 

USA debt per person $44,805 (Dec 2010)    
Who would lend money to such a debtor?

Cuomo And Chief Judge Lippman Dance Around Phony Budget Numbers On The Albany Titanic Barge

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

          The Albany Follies Show continues:
     Cuomo struts out looking tough by forcing a 7.5% decrease on Courts' budget.   Chief Judge Lippman appears and releases a video, where “The consequences will be felt heavily on the public as well as on every other part of our state that depends on and is affected by the courts,” Lippman said.     The first scene's script had Lippmann wanting only a 3.7% decrease and Cuomo wanting a 10% decrease and 7.5% compromise resulted. (Applaud, please)

     But, the final scene has the surprise ending when,
     1. Lippman expects a Commission to give raises to the 1,300 Judges, with pay for Supreme Court Judges rising from $136,700 to more than $179,000 or 31% increase or $48 million dollars in judicial salaries to added to Lippman's budget.
.   2. The Judges are also suing for $780 million in back pay to be added to Lippman's budget.

   So the revised real Court budget arithmetic is: $2.7 billion this year; minus -$170 million by Cuomo; plus +$48 million in judicial salary increases; plus +$780 billion in back pay; or court budget increases by +$658 million dollars or a 25% increase.

Final scene's tally:   Lippman wins with +25%

Taxpayers out an additional $658 million dollars

Cuomo's exit speech says "don't blame me."

P.S. Why did Cuomo drop the ball on Lippman?  Andrew Cuomo had promised to clean out corruption in Albany and that is impossible if the New York Courts are run by a Crook as Chief Judge.  See Chief Judge Lippman must step aside pending FBI probe.
Will Cuomo drop corruption ball link


And all of this is will be overshadowed by the $46 Billion New York State budget deficit disaster looming from the 2011-2012 Federal budget, "One of the new health-care reforms proposed by the GOP budget is converting the federal share of Medicaid—the federal-state program that provides health insurance to low-income people—into block grants to state governments."

Latest:  Debt on Track to Hit 800 Percent of GDP; 'CBO Can't Conceive of Anyway' Economy Can Continue

Federal Medicaid Block Grants Will Destroy Cuomo's Budget By $47 Billion Dollars

         The party's over.

    At least $46.8 billion dollars will be added to New York's Medicaid expenditures, when Congress in the next budget year beginning in October changes to a block grant for Medicaid as proposed in the next federal budget, and California will support block grants for Medicaid.

      Last year's New York State's share of Medicaid expenditures was $13.8 Billion and the cap on next year's expenditure will be $15.1 Billion (+9.4%), which is matched by an equal contribution of $15.1 billion by NY Counties.

Here are the Medicaid comparisons by State.
Medicaid Cost Per Person Served, 1998
(Red States less than half New York's cost)
New York ~  $8,961
California $2,386
Washington $2,563
Oregon $3,652
Virginia $3,740
Florida $3,607
Texas $4,419
Illinois $4,435
Delaware $4,440
Michigan $4,494
Ohio $5,346
Massachusetts $6,870
Wisconsin $5,457
Pennsylvania $5,808
New Jersey $6,856
Rhode Island $6,603

       If the federal Medicaid block grant rate is at the Texas rate per recipient (Texas $4,419), New York's Medicaid total Federal Reimbursement (State +County) will be reduced ($4,419 divided by $9,861 x $30.2 billion) to $13.6 Billion.  But, New York's total predicted Medicaid expenditure (Federal+State+County) cap was $60.4 billion, or New York needs to find an additional  ($60.4-$13.6)  $46.8 billion dollars.  And New York will find no sympathy or support from California for replacement with Medicaid block grants, as California will gain tremendously due to California's $2,386 lower rate.

      Now add that $46.8 billion to all the delusional revenue predictions in Cuomo's budget.    Will that  additional $2,412 per person ($46.8 billion divided by NY population of 19.4 million) or $9,648 for a family of four be funded with new taxes or added to the New York's Debt per person including local debt of $24,195?    Where will the Counties get their increased share? And this will be repeatedly added in future years.

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
link to poem

Sheldon Silver OutFoxes Cuomo And Sticks Cuomo With The Future Blame For Revenue Shortfalls And Default/Bankruptcy

  
New York's budget is a fool's delight.

   The Cuomo Budget process and its Committees and teams were all a big farce, because Cuomo operatives prepared the outcomes and the committees were left with a rubber stamp. "Add Common Cause to the list of organizations unhappy with the about-to-be-completed 2011-12 budget. Rather than the cuts, they are upset about the level of secrecy involved in crafting the spending plan, which appears to be a replay of the time-tested “three men in a (closed door) room” method.
      "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."  Suffolk County's Steve Levy said Cuomo's team report was 78 pages of nothing.

        This was a temporary victory for Cuomo, but disaster is ahead, because the revenue side of the budget is a farce.   "The new governor holds the commanding heights,” said Robert B. Ward, deputy director of the Rockefeller Institute, a research center. “The role for the Legislature often is to wait out a governor — and certainly the speaker has proven he’s a master of that."    Was Assembly Speaker Sheldon a sly fox who knew Cuomo now had responsibility for the budget and the phony revenue predictions?   "Mr. Silver [had]explained, it would be the widely reviled Legislature — not the popular governor — that would be blamed [if a budget wasn't passed]."   Didn't Silver responsibly want more taxes?

     Local schools are announcing layoffs in response to budget cuts.  A sample of schools follow.
Beekmantown School layoffs
Saranac Central School District has no reserves and layoffs needed
Ausable Central School district has low reserves and layoffs will be needed
Cohoes City school district proposes layoffs
       And these unemployed workers won't pay State income taxes (reduces Income Tax revenues) and also drains State coffers (unbudgeted expenditures for benefits), because NY State can't borrow its share of unemployment expenses from the federal government as it did in 2010. Worse still many local districts have to layoff more workers because they don't save the entire cost of wages paid, because many must still pay the full cost of unemployment benefits, because they use the benefit reimbursement plan instead of making regular unemployment contributions (in other words, they paid nothing until a worker is laid off and then they pay the full benefits)
"The Benefit Reimbursement program lets employers reimburse the Unemployment Insurance Fund for benefits paid to their former employees in place of paying on a tax rated basis.  The following groups that are tax exempt under Section 501 (c) (3) of the Internal Revenue Code qualify for this option:    Nonprofit organizations organized and run only for:  religious, charitable, scientific,  literary or educational purposes and Government entities."
This same unemployment benefit (unbudgeted expenditure) payment will affect any New York State layoffs Cuomo plans, because the promised savings will have to be reduced by the full cost of all unemployment benefits paid.

   And NY Counties will follow with more layoffs because of Cuomo's pass down of a 9.4% increase in Medicaid County expense which is the largest expenditure for Counties and the failure of his Mandate Relief Team.   Things get worse because a Pension Tsunami is going to hit California and New York.  New York State has an absurd assumption that it earns 7.5% on its pension funds when the real rate was 1.1% for the past five years.     This will effect New York's credit rating and lending rates.

Meanwhile, as inflation threatens and gas and fuel prices rise 100%,  will Cuomo get more money by borrowing when New York is all ready the most indebted per person with $97,000 for a family of four?

The US Treasury can run out of cash, as can a State.

The Clever Fox Award goes to Sheldon Silver and the booby prize to?

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.

Cuomo's Support Ads Will Backfire When Public Holds Him Responsible His Budget's Gigantic Deficit

      Andrew Cuomo has promised Hope and Change with his budget proposal promising not to raise taxes.   Meanwhile the Cost of Living hits a record and "[other] states will be cutting back services drastically this year at the very same time they are raising taxes in order to close enormous budget deficits and avoid a muni-bond defaults crisis."   
     And so, Andrew Cuomo is going to own his budget as his supporters outspend the opposition.   Cuomo's media shill, Fred Dicker, expects that Cuomo will win with short extender budgets while blaming a government shutdown on Sheldon Silver and the Legislature.  But Cuomo's and Dicker's $10 billion dollar projected deficit is just a gross underestimation.   More and more NY layoffs will continue to increase NY unemployment from the 9% reported in blog post below and Cuomo's fantasy revenue predictions will not materialize.
  

Recent News Reports are a sample of New York layoffs:
GM has more layoffs in NY.
Saranac Central School District has no reserves and layoffs needed
Ausable Central School district has low reserves and layoffs will be needed
Cohoes City school district proposes layoffs
Does Cuomo really believe voters who now have the highest Cost of Living ever are in the mode to locally vote to increase taxes to prevent school layoffs or that School Districts are awash in cash?

      Cuomo's problem, which Fred Dicker may not comprehend, is that tax revenues are going down and the $1 billion in the red already reported by Comptroller DiNapoli from this year has to be borrowed and all new layoffs further decrease his income tax revenues.  Also, tax revenues decrease on businesses producing less with less workers.  And Cuomo's fantasy prediction of the budget growth in tax revenues of $2.6 Billion dollars will disappear and have to be funded by more borrowing.   New York will just run out of cash to pay bills and allocate funds.  
See California I.O.U. link  and  a California I.O.U. below

See Cuomo's Credit Card Taken Away.

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

    Bureau of Labor Statistics show unemployment rising in every New York Metro district.    Cuomo's budget, the Senate's budget and the Assembly budget will all require extensive deficit borrowing, because they used fantasy employment numbers to estimate revenue from business activity and employees of such businesses.  These higher unemployment numbers will be increased even above these levels in 2011 by more layoffs at local government/school levels to accommodate increased local costs and, also, layoffs by NY State of State employees, yet to be announced.

     How much more will NY need to borrow to pay (deficit spending) for Unemployment Insurance Payments for these newly unemployed workers?  What businesses will be attracted with these added costs to fund New York's unemployment insurance costs?

      Large unplanned deficits were already expected by the NY Comptroller even before these latest unemployment numbers were released.   DiNapoli "warned that estimates about the amount of personal income tax that will flow into state coffers may not be reliable. He noted that the current fiscal year's budget was overly optimistic about job growth and ended up over $1 billion short in anticipated tax revenue".   Or over $1 billion dollars is carried over to Cuomo's new budget as an expense.

   Here's what Comproller DiNapoli says in his report on expected personal income tax revenues for Cuomo's budget:
"Personal Income Tax
 For SFY 2011-12, All Funds PIT  receipts are forecast to increase by $2.6 billion, or 7.4 percent, over the prior year.  The increase is attributable to the improving economy, higher refunds in SFY 2010-11, and the voluntary compliance initiative in the Executive Budget.  Base tax receipts, which net out the $500 million in additional refunds in SFY 2010-11 and the elimination of the high income  tax provisions in the fourth quarter of SFY 2011-12, are projected to grow by 11.4 percent.for these proposed budgets."

    The FACTS:
1. With higher unemployment, personal income tax receipts would not increase by $2.6 Billion as Cuomo promised, but rather decrease in Cuomo's new budget and $1 billion is carried over from prior year.
2. These unemployment revenue losses are accumulating now and will further increase the missing money, even before the budget year begins.
3. New York unemployment will further increase with school, local government and State employee layoffs resulting from budget cuts at all levels.
4.  Or Cuomo needs to borrow way in excess of another $3.6 billion dollars (2.6+1.0=3.6) just to replace delusional tax revenue increases in the budget.


  Default, bankruptcy are more likely.  But luckily for NY's Cuomo, California's Brown may be first to go down as Brown caves to Union demands.


   More Facts:
  Here are the latest metropolitan unemployment rates just released last week that show that in every NY metro area unemployment increased.  The data below is from the Press Release of Bureau of Labor Statistics

     Location                                                                %Dec2010    %Jan2011

New York as Whole Total................ 8.0      9.0  
  Albany-Schenectady-Troy.............. 7.1      8.2  
  Binghamton........................... 8.5      9.6  
  Buffalo-Niagara Falls................ 8.1      9.1  
  Elmira............................... 8.0      8.8  
  Glens Falls.......................... 8.5      9.9  
  Ithaca............................... 5.6      6.6  
  Kingston............................. 8.0      9.2  
  NY-Northern New Jersey-Long Island... 8.1      9.0  
     New York City..................... 8.6      9.4  
  Poughkeepsie-Newburgh-Middletown..... 7.6      8.6  
  Rochester............................ 7.8      8.7  
  Syracuse............................. 8.3      9.3  
  Utica-Rome........................... 8.1      9.3

The talk was cheap  

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

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

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

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

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


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

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

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


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



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


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