Prodigal Andrew Cuomo Is Spending And Spending

   The Albany Follies Show's expenses continue their steep climb.  Where will Cuomo get the money, when Cuomo and Silver hacks give 27% raise to judges over three years.  That was slightly less than the 31% expected by Chief Judge Lippman as reported here in Cuomo And Chief Judge Lippman Dance Around Phony Budget Numbers On The Albany Titanic Barge which described The earlier Albany Follies Show as:

     Cuomo struts out looking tough by forcing a 7.5% decrease on Courts' budget.  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, 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.

     So now, 1. Judge Lippman gets more cash and Cuomo now needs $14 million dollars to pay judges 9% more this year.

2. Cuomo's forgot contingency funding this year for the Judges who are suing for $780 million in back pay which will be added to the years budget deficit.

3. Cuomo forgot to include in his NY State budget increased spending for all state workers' pension contributions by 3.6% as reported on this blog earlier. 

4.  New York economy takes MULTI-BILLION hit from Irene on vital weekend... as experts warn U.S. clean-up cost will outstrip Katrina

Bye, bye, Cuomo's balanced New York State budget.

Hello, more unexpected taxes and bond sales?

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

Fiscal Conservative Andrew Cuomo's Shell Game Is Borrowing From The Pension Fund To Contribute To Pension Fund

 "I am not a crook!" ~ Richard Nixon

Shell game scam alert: Will there be something left for the bond holders, or the pensioners, or any taxpayers capable of paying for it?  Or nothing left anywhere?

     What's Andrew Cuomo or Comptroller DiNapoli doing about borrowing from the pension fund to pay contributions to the pension fund in 2011?  Nothing, it's not so described in his budget or in his announced agenda. 


      Amortized means payments are extended over future years.

  From Empire Center for New York Policy, "Starting in fiscal 2011-12, the contribution rates used to calculate the state’s pension bill will be allowed to increase by only one percentage point a year, starting at this year’s capped level. Billed contributions above that amount in any given year can be spread, or amortized, over 10 years, payable to the pension fund at a rate pegged to interest on taxable bonds, generally in the neighborhood of 5 percent. As part of the deal, the minimum contribution level is permanently fixed at 4 percent. Local governments have been given the option of joining this “rate mitigation program,” and many are already choosing to do so."

This is the applicable law: NY State Law RSS - Retirement and Social Security
Title 2 - ESTABLISHMENT, MANAGEMENT, SUPERVISION AND FINANCING
19-A - Employer contributions for the two thousand ten - two thousand eleven fiscal year and subsequent fiscal years. (allowing amortization or paying in this year's contribution over many years)

     Pension Plan or Ponzi Scheme?  "Now there is a new claimant to the title of Ponzi Perfection — The State of New York.…Another oddity of the plan is that the pension fund, which assumes its assets will earn [7.5%] percent a year, would accept interest payments from the state that would probably be 4.5 percent to 5.5 percent."   "'Mr. DiNapoli, the comptroller, said: “We would view it more as an extended-payment plan.” 

       This NY State Shell Game also allows Municipalities to Borrow from Pension Fund to make Required Pension Fund Contributions

      Is this Fiscal Insanity by the Fiscally Conservative Andrew Cuomo, or a scam?   This is another reason why New York will default or go bankrupt.   If this was a private company, they'd all be headed to jail, or, for the insane, to the asylum.

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

 

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