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

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

To: Darrell Issa, Chair House Oversight and Government Reform; Lamar Smith, Chair House Judiciary; Patrick J. Leahy, Chair Sen. Judiciary; Charles E. Grassley, Sen. Judiciary; Paul Ryan, Chair House Budget; Harold Rogers, Chair House Appropriations; Kent Conrad, Chair Sen. Budget; Jeff Sessions, Sen. Budget; Daniel K. Inouye,Chair Sen. Appropriations;  Thad Cochran, Sen. Appropriations; Tom Harkin, Chair Sen. Health; Michael B. Enzi, Sen. Health.;  Chris Van Hollen, House Budget;  Spencer Bachus, House Financial Services; Barney Frank, House Financial Services; Max Baucus, Sen. Finance; Chuck Grassley Sen. Finance

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


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

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

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

2. SUNY RESEARCH - also cited for covering up $22 billion medicaid fraud
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/

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

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

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

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

                        Sincerely yours,

                   CuomoTarp.blogspot.com

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

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?

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

     Student's letter to Mommy and Daddy: I was very careful with my budgeted money for the year and only bought things which my friends approved and now I'm broke.  Please send more.

       Cuomo's Executive Budget's great hope is that fantasy tax revenue predictions will come true.  We look at Cuomo's budget as analyzed by Comptroller Dinapoli  below. 

The Fantasy numbers are in blue and [Reality is in red]
Report on the State Fiscal Year 2011-12 Executive Budget by Comptroller DiNapoli is the text that follows:
    The Executive Budget estimates that total All Funds receipts will decline in SFY 2011-12 by $1.7 billion, or 1.3 percent, over SFY 2010-11 to $132.9 billion.  The decline can be attributed to the loss of federal stimulus funds receipts, which are expected to fall $5.8 billion, or 11.6 percent.  This loss will be partially offset by growth in All Funds tax receipts, which are estimated to increase $4 billion, or 6.6 percent, to $64.8 billion.  This increase is attributable to the economic recovery, the revenue actions passed last year and those proposed with the SFY 2011-12 Budget.  Finally, All Funds miscellaneous receipts basically remain unchanged, growing by $80 million, or 0.3 percent.

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.  [More unemployed people mean less personal income taxes paid.  Cuomo needs to borrow way in excess of another $3.6 billion dollars  just to replace delusional tax revenue increases in the budget.]

User Taxes and Fees
For SFY 2011-12, All Funds consumption tax receipts are forecast to increase by $627 million, or 4.4 percent, over the prior year.  The increase is mainly due to growth in the sales tax as well as cigarette and tobacco taxes.  The sales tax is expected to increase by $437 million, or 3.8 percent, as the economy continues to improve, offset by the partial return of the clothing exemption.  Cigarette taxes are forecast to increase by $165 million, or 10.2 percent, as the Executive expects to collect cigarette taxes sold on Indian reservations to non-Native Americans ($130 million). [Unemployed and under-employed have less money to spend and sales tax revenues may not rise.   Black-Market Cigarettes - with higher cigarette taxes mean smuggling expected to increase and tax revenues actually go down.  And Indians may win in their law suit for sovereign status.]
 
Business Taxes
For SFY 2011-12, All Funds business tax receipts are forecast to increase by $705 million, or 9.2 percent.  The increase is attributable to the improving economy and an expected increase in corporate profits of 6.2 percent.  All of the business taxes are forecast to increase in SFY 2011-12.  [Larger unemployment reduces workers and earnings from businesses - see  Personal Income Taxes above.]

Other Taxes
All Funds other tax receipts  in SFY 2010-11, including the payroll tax, are forecast to increase $432 million, or 16.6 percent, over the prior year.  This increase is attributable to growth in receipts from the estate tax ($216 million, or 25 percent), the payroll tax ($144.3 million, or 11.8 percent) and the real estate transfer tax ($73 million, or 14.8 percent).  [Employment declines noted above will reduce payroll tax. Property sales prices are falling and this reduces real estate transfer tax.   Estate tax revenues will decrease because investment portfolios values are decreasing and the values of real estate transferred by estates will also decline.] 

   When will Andrew Cuomo wake up and see his predicted budget revenues are daydreams?

       P.S. Alert on a developing problem: Medicaid disaster looms as Obamacare will increase number of New York Medicaid recipients by 1,750,000 according to Comptroller DiNapoli in his above report.

Four States, Maine, New Jersey, Tennessee and Ohio have obtained Medicaid waivers.
Representative Anthony Weiner who wants to run for Mayor saw the light and maybe asking for a Obamacare waiver.

When will Andrew Cuomo wake up and see that same light on Obamacare?

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."

Andrew Cuomo's Ad Promises Hope In Albany Budgeting, But Taxpayers' Hope Dims As Lobbyist Spending Reaches New High

  
Hope is for sale: make your best offer.

     According to lobbying data obtained from the Commission on Public Integrity, a record-shattering $210,664,067 was spent lobbying in New York State in 2010. ..an increase of 6.5%, ...Political parties and the governor received the most money in campaign donations from the top 25 interests.

  The Committee to Save New York, the monied, pro-Cuomo coalition is coming to Andrew Cuomo's rescue and in support of his budget plan with ads, which include his continued opposition to renewing an income tax surcharge on New Yorkers earning more than $200,000 and no new taxes.  The Committee to Save New York says, “but there’s hope, Governor Cuomo’s plan closes the budget gap without raising taxes.”


     The previous blog post here reported that in Cuomo's budget plan the Albany Lobbyist/insiders won all the first ten rounds of Budget battles, such as:
1. A cap was to be placed on local taxes, but Medicaid which is the largest budget item for Counties is up 9.4%
2. No new taxes were promised, but a surcharge on medical procedures tax will raise $100 million dollars.  The Employer Alliance for Affordable Health Care called the measures "nothing more than a hidden tax on New York's small business community."
3. "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."
4. "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." 
 
The Committee to Save New York's ad below has Andrew Cuomo offering Hope.  No price was mentioned, so contact the lobbyist nearest you.




Balance the budget when,  New York's Budgeted Medicaid Expenses To Rise to $15.1 Billion from this year's $13.851 billion?
Will Cuomo's new hidden taxes drive more people, business and jobs away? 


P.S.  Looking past the smoke, mirrors and illusions about the budget, the real world, past and present, is closing in. (the latest news)
1. Cuomo was tough on crime?  Still no Jail sentence for Hevesi, as the Judge in Alan Hevesi pension fund pay-to-play case is changed.   See Andrew Cuomo hopes to fool NY Sheeple

2.  The Chinese and other foreigners are closing in on US and State's debts, as the crisis in the Middle East has worsened, the latest exchange data show that traders are selling “short” the currency.   See Fiscal Disaster As Andrew Cuomo And His M.O. Are Slapped Down By Chinese Economic Reality Checks

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's Court Budget Heads For 27 % Increase Added To Medicaid Budget's 9.4% Increase

The talk was cheap, but the bill steep.

    So far, Cuomo's budget is increasing Medicaid expenditures by 9.4%.    Now, the focus moves to the Court Budget, where Chief Judge Lippman wanted a $50 million dollar increase over this year's $2.7 billion dollar budget.    But Lippman relented and has proposed a $100 million dollar decrease.

    That sounded good, but it is only a 3.7% decrease and Cuomo wanted 10% decrease.
But wait, 1. Lippman expects a Commission to give raises to the 1,300 Judges, with raises 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 suing for $780 million in back pay to be added to Lippman's budget.

So the revised real budget arithmetic is:   $2.7 billion this year; minus -$100 million proposed by Lippman; plus +$48 million in judicial salary increases; plus +$780 billion in back pay; or court budget increases by +$728 million dollars or  a 27% increase.

   Cuomo's To-do or not do List includes criminal charges against Chief Judge Lippman

    Question? When will Cuomo chuck his no tax increase pledge (not with just some hidden taxes in his Medicaid  reform)  and add some real tax increases as Governor Brown is asking the voters to do in California for a $25.4  billion dollar gap?

It was do or not do and Andrew Cuomo tried ~ Yoda (revised NY version)

New York Bonds Are Down Rated Based On Cuomo's Executive Budget

Rating the Cuomo Executive Budget for Bond Purchasers

  The Cuomo 2011-2012 Executive Budget is like fancy curtains placed in the window hiding a burnt out interior in the house.   First,  there is the new folly presented by Cuomo:
1. Cuomo expects government bureaucrats and committees could design programs to save money. (SAGE Spending and Government Efficiency, Medicaid Redesign Team, 10 regional Economic Development Councils, Right-sized Youth Detention into community-based programs, Mandate Relief Resign Team) Link to Committees.  Grade D

2. Cuomo in his first sentence proposes to "eliminate a $10 billion dollar deficit without raising taxes or borrowing" and then he is borrowing $5.6 Billion dollars.    Grade F

3. Cuomo says, "New York is number one in education spending and number 34 in results and number one in healthcare spending and number 21 in results."  Cuomo expects the same State workers running these programs will change their stripes, now that Cuomo is Governor?    Grade -Delusional/Incomplete

4. Cuomo has a creative "funds shift [that] would result in the use of state bond proceeds for payment of a portion of debt service on MTA revenue bonds."   Grade F

Then there is the Cuomo folly reported yesterday on this blog:

 5. Cuomo's budget will fail to deal with the elephant in the room and will not follow eight other State's models for laws and regulations which could produce at least  $29 billion in savings per year.  And Cuomo and his Medicaid Redesign Team  is filled with trough feeders.  Grade-Delusional/Incomplete

6. Cuomo's budget  used the "Madoff-like" pension assumptions of 7.5% safe return on pension investments. and continue to allow borrowing to fund contributions.     Grade F
 
7. Cuomo will fail to budget in the required repaying of the federal government for Medicaid frauds tolerated by New York.  This is minimally estimated at $6.4 billion needed to added to deficit or be funded.    Grade F

8. Cuomo reducing Medicaid waste and fraud is a joke, since Cuomo recovered only 0.6% of medicaid fraud while he was Attorney General.    Grade -Delusional/Incomplete

9. Cuomo forgot what happens when New York's bond rate rises?  and NY's borrowing costs will move up from $5.6 Billion to $18.8 Billion.       Grade D

10. 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.     Grade F

11. Cuomo claims a $10 billion dollar deficit, when if he could add correctly he'd get $22.1 billion deficit,  without even counting the pension shortfall from the phony 7.5% safe return and the "Build America" funding losses.     Grade F


New York State Bonds will be rated overall Grade D- and the multiple delusional/incompletes show an impossibility of improvement.

     The good News is Moody's acts slowly on bonds.  Their downgrade of Egyptian Bonds reported on Monday, many days after any sane person would have.

      In further regard of Bond Rating Firms:  The Financial Crisis Inquiry Commission established  by Congress and signed by the President Obama in May 2009 reported on page 25: "We conclude the failures of credit rating agencies were essential cogs in the wheel of financial destruction. The three credit rating agencies were key enablers of the financial meltdown. The mortgage-related securities at the heart of the crisis could not have been marketed and sold without their seal of approval. Investors relied on them, often blindly. In some cases, they were obligated to use them, or regulatory capital standards were hinged on them. This crisis could not have happened without the rating agencies." [link to full report 600+ pages]
You still have time to sell your New York Bonds before they are devalued.  Or, you can hold on to your bonds and then later join the class action suit against rating agencies to recover losses. 

Default Ahead As Cuomo Executive Budget And Its Media Puff Are Exposed As Shams

     After the committees designed the horse, the committees created the perfect leader, Andrew Cuomo, as the Very Progressive, Very Fiscally Conservative, Mario's Dauphin, and President-to-be, and as the perfect compliment to the committee's horse.
 We must not promise what we ought not, lest we be called on to perform what we cannot. ~Abraham Lincoln

    Cuomo's Executive Budget will be released on Tuesday and instead of sandwich board men, the Cuomo advance lackeys arranged the following:
1. Some sheeple were greeted by door knob hangers,with a postcard where you declare “I support Governor Cuomo’s plan to help New York families and fix a broken Albany.”  The door hangers were placed by "the Committee to Save New York to which [Cuomo] has many ties, ... the Committee ... plans to spend $10 million in its efforts."   How many sucker sheeple approved a budget which hasn't been released? 

2. Andrew "Captain Renault" Cuomo has denied any coordination with the committee whose, "first advertisement speaks generally of the need to “repair Albany’s broken finances, create jobs and grow our economy.” It features footage of Cuomo at the State of the State and lauds “a new governor who’s ready to fix Albany.”   Thank God, Andrew had promised to end the influences of special interests and lobbyists and that he placed them on his reform committees.

3. Meanwhile, the Cuomo media and polling stooges arranged for several ridiculous polls, which "found Cuomo’s favorability rating at 71 percent. Forty-eight percent of voters surveyed say Cuomo is doing a good job, and 61 percent say Cuomo represents all regions of the state."   [perhaps, only pizzeria owners were polled]
 
4. Attorney General Scheiderman is promising to really go after Medicaid fraud and, maybe, double or triple prosecutions of Medicaid fraud. Whoopy, he'll raise Cuomo's dismal 0.6% recovery of Medicaid excess to 1.2% or even 1.8%, or $0.5 billion dollars out of $29 billion dollar excess, and only if you believe a lawyer's promises.

5. Comptroller DiNapoli claiming it's worse in New Jersey, while promising a "safe" return on pension investments of 7.5%.

6. An unsourced media puff piece claimed that New York gained +37,000 jobs and New Jersey lost -30,00 jobs.  But this was at odds with Bloomberg's, "Payrolls decreased in 35 U.S. states in December, ...New York led the nation with 22,800 job cuts last month."   Did Andrew Cuomo's hack pay good money for such a embarrassing bogus puff piece?

7. To counter expected bankruptcy/default or huge increases in bond rates, the Cuomo media hacks got "financial analyst Hugh Johnson offered something ...called a reality check based on past history."   This is the theory that since they didn't default in the past, they won't default now.  Used before by Barney Frank and Chris Dodd telling us everything was alright with Fannie and Freddie, and by Madoff  whose "safe"investments returned value for decades.


Cuomo's Executive Budget failure deconstructed:
Cuomo's budget will fail to deal with the elephant in the room and will not follow eight other State's models for laws and regulations which could produce at least  $29 billion in savings per year, or even better the California model which could produce $42 billion in medicaid savings.  And Cuomo and his Medicaid Redesign Team which is filled with trough feeders will fail here.

Cuomo's budget will use the "Madoff-like" pension assumptions of 7.5% safe return on pension investments. and continue to allow borrowing to fund contributions.  This is like paying your credit card bill by charging the payment to the same card.

Cuomo will fail to budget in the required repaying of the federal government for Medicaid frauds tolerated by New York.  This is minimally estimated at $1.6 billion a year for four years or $6.4 billion needed to added to deficit or be funded.

Cuomo's leaked plan to cut 12,000 state workers will fail because it saves only $1.8 billion, if Cuomo dismisses only those with $150,000 average income+benefits.   Cuomo will more likely dismiss those with lower pay and have even lower savings.    Most likely, Albany will become many Chiefs and few Indians.

Cuomo reducing Medicaid waste and fraud by ? will be a joke, since Cuomo recovered only 0.6% of medicaid fraud while he was Attorney General.

Cuomo will fail to address What happens when New York's bond rate rises?  
NY's borrowing costs will move up from $5.6 Billion to $18.8 Billion.

How about repaying the Unemployment Insurance: State Trust Fund Loans of $3,176,873,427.71 since January, 2009; that's $3.1 billion?   Will Cuomo pass this on in higher unemployment contributions by New York Employers and watch the Cuomo Business Friendly New York fizzle?

Andrew Cuomo claims a $10 billion dollar deficit, when if he could add correctly he'd get $22.1 billion deficit,  without even counting the pension shortfall from the phony 7.5% safe return and the "Build America" funding losses.


Here's the latest Media Hack Puff piece on Monday:  
   "Captain Renault" Cuomo says, "I was shocked to learn that the state's budget process is a sham ...He said the large, automatic increases in funding are contained in arcane regulations and something he was told is called 'permanent law'."  Shut the play down, "Captain Renault" Cuomo, your Casablanca rerun with, "you're shocked to find corruption" has grown stale.    Your Budget is the sham.

   Andrew Cuomo hopes to fool you sucker sheeple, when Cuomo points his finger at the legislature and they point the finger at each other and the Governor.   See Albany Follies for earlier version of the same play/acting.
Andrew, when you run out of cash like California, will you issue $3 Cuomos?

  The pipers who must be obeyed aren't the taxpayer pipers, it's  future bond purchasers and those wanting to be paid when you run out of cash.  These pipers will say your budget is a joke:
NY+USA Debt per person from No Whining, No Federal Bailout; You Made Your Bed Of Debt, Lie In It, New York
For the USA:
1. Total public debt outstanding Dec. 20 $13,868,461,000,000
2. nation's population on April 1 was 308,745,538 
3. USA debt per person $44,805
  The federal Government can't bailout New York; it's sinking itself. 
4. New York debt per person: State-funded debt was $3,105 per person and in 2009, NY was the second most indebted State behind California.
5. This New York debt doesn't include the Pension liabilities from the present phony estimated safe return on pension investments of  7.5%, when the New York fund earned 1.1% over five years and New York State’s $132.6 billion pension fund is the nation’s third-largest.
   If we correct the pension liabilities optimistically with a 3.1% return, we get another $9,664 additional debt per person.   Making $12,769 debt per person as a better debt estimate in New York.   But now look at the 4.52 million people on Medicaid in NY (who don't pay taxes) out of a NY population of 19,541,453  which raises the New York debt per taxpaying person and each of their dependents to $16,600.

So, the party's over; the hand writing is on the wall; some of the pipers must be paid now or no more piping, nor spending cash. link to the Finance Bazaar and a proper accounting.

Link to Banquet with the hand writing on the wall.
The words, Mene, Mene, Tekel, u-Pharsin, written by a God of Justice Disrupt the Albany Victory Celebration and King Cuomo

 

"Paying the Piper"

      Message to Andrew Cuomo, no more waiting to fix Medicaid:  The bond market is closing in.
1.  Municipal bond sell-off reported on Fox.
2.  What is Plan B with China dumping debt? 
3.  States' Pension disaster ahead.
4. DiNapoli's 7.5% safe return makes Pension disaster likely.
5. Structural debt will sink States after Federal debt collapse.
6. US credit collapse will trickle down to State's debt.
7.  Bankruptcy in future 

Andrew, has the recurring dream affected your health?

Did you believe you'd escape the message of the  Handwriting on the Wall?

 

The party's over, the pigs must sent home and the piper must be paid

Cuomo Can Solve New York Budget Woes Without Dismissing Any State Workers With Just Medicaid Reform Using California Model

If you do what you've always done, you'll get what you've always gotten. ~ Russian proverb

    Cuomo and DiNapoli claim a budget deficit of $10 Billion dollars and New York's Medicaid costs are purportedly $58 Billion dollars.   This blog pointed out how Cuomo could reduce Medicaid in half buy adopting California's Medicaid laws and regulations.   That's $29 Billion dollars saved and would protect the Counties, who must match that amount, and their employees from cost cutting dismissals and, also NY State workers facing layoffs.
   This blog has reported the absurd amount of money, $4,556 per day spent on care for the mentally retarded in Poughkeepsie area.   Think how much it would cost to have aides at $10 an hour for 24 hours a day and a rented room with meals delivered  for $200 a day and then ask where the other $4,116 per day went.  The Federal Government saw improper billing and is demanding NY reimburse Medicaid $1.2 Billion dollars for just one year of this fraud/scam and that's just for 2006, and NY will owe the same for all the years till 2011 and this is for Poughkeepsie area only.

       This money is not going to the poor indigent needy nor the workers at the bottom doing the routine care, it's going into the mouths of the Swine, who fed at the New York Medicaid trough in their suits and pants-suits with lipstick.

Here she is.  Primed and ready to begin to run a New York Medicaid program and begin to feed at the New York Medicaid trough.    And, if things go wrong this pig can be wrapped in a CuomoTARP blanket and avoid jail, just like those in the $1.2 Billion  per year scam reported above.

It's time for Andrew Cuomo to do or not do.
 and use the rest of the Medicaid savings to deal with Pension shortfall as reported and DiNapoli's  absurd Madoff-like  assumption of a safe 7.5% return on investments.
 Failure is not falling down, but refusing to get up ~  Chinese proverb
More in earlier posts below