Advice to Sell State Bonds And Pending States' Bankruptcies Already Predicted On CuomoTARP Blog

 The Words of the Prophet to bondholders:  Sell now and not cry later ~ CuomoTARP Prophet

    Whereas, the NY Times reveals secret examination of States' bankruptcy, this blog had already published the simple changes necessary to create a Chapter 10 Bankruptcy for States on December 13, 2010.  see #4 below for text of law.

   Whereas, the NY Times revealed State and municipal bonds positions needed to be reduced or liquidated, this was reported earlier here on this blog multiple times.
Blog Posts:
   1. November 29, 2010,  Andrew Cuomo; A Drag Queen; And Dragging New York State Bankruptcy And NY Bond Devaluation Out Of The Closet

  Knowing what the US Supreme Court did with GM bondholders, do you believe the Supreme Court will force NY to honor NY bonds at their full value or force NY State to honor pledges to pay certain bondholders before using the money for other purposes, or just offer pennies on the dollar value of existing NY bonds? 

   

    2. Nov. 29, 2010, 

At Thanksgiving Fest, NY Bondholders And Cuomo See The Hand Writing On The NY Capital Walls

 The words, Mene, Mene, Tekel, u-Pharsin, written by a God of Justice Disrupt the Albany Victory Celebration.      CuomoTARP has obtained two translations for the handwriting "Mene, Mene, Tekel, u-Pharsin" on the walls of the NY Capital Buildings. It was the same Aramaic words the Babylonian King Belshazzar saw on the wall in Babylon around 539 B.C., 
  Now, the translation #2 for NY Bond Holders:
  Mene:  Count your bond values now
  Mene:  Count your bond values after the credit rate rises, inflation increases and bond desirability decreases  *See notes 3 and 4 below
  Tekel: Same as shekel or watch your money
  U-Pharsin;  Your bond values will be cut in half
The Words of the Prophet to bondholders:  Sell now and not cry later

      3.  Dec. 14, 2010 .  NY Bankruptcy, NY Bonds, NY Constitution, NY Pensions; The Resolution

    We look to the NY Constitution to see why New York must chose bankruptcy if it's available under Federal Law.   Would the federal government refuse to loan or give NY Money, because "Federal loans to States would so increase federal debt so as to lower the federal bond ratings?"   Yes, because there'll be no love lost in the new Congress for bailing out New York's or other States' proliferate spending when the Congress has its own problems.   New York's deficit is pegged at $15.8 Billion , but if NY gets money, California, Illinois and Michigan will also want bailout money.
Simple question: Will Congress bailout States or create a new Bankruptcy Chapter?


        When New York State runs out of money, (technically bankrupt or bankrupt if the new Chapter 10 is adopted), the NY Constitution requires the Comptroller "shall set apart from the first revenues thereafter received ...a sum sufficient to pay such interest, installments of principal. ... at the suit of any holder of such bonds."   so apply the moneys thus set apart. The comptroller may be required to set aside and apply such revenues as aforesaid, at the suit of any holder of such bonds.
    Supposedly NY Pension Benefits are protected in this article of NY Constitution § 7. ...membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired.


       No way out except for New York to limit its payments to NY bondholders in federal bankruptcy action.

      4. The text of a new Chapter 10 Bankruptcy for States in,  A Moody's Downgrade Means Inevitable State Bankruptcies Need A New Bankruptcy Chapter 10 For States

          Federal debt for States' bailout will dry up after, "Moody's warned Monday that it could move a step closer to cutting the U.S. Aaa rating if President Obama's tax and unemployment benefit package becomes law."     There is no hope for NY or California or Illinois or Michigan except for a Federal Bailout or bankruptcy. But there's no Federal bankruptcy law applicable to the States. (See this link for more details)
      Since Congress will be reluctant to bailout States (where would it end?), we need a new Bankruptcy Chapter for State Bankruptcy to be called Chapter 10. Since States are sovereign entities and as such retain sovereign powers, Congress can simply make modifications to the present Chapter 9 for municipalities to create a United States Code Title 11 Bankruptcy Chapter 10 for States.

I've copied sections of the Federal Bankruptcy law for Chapter 9 and would remove text in blue and insert the red text.  Other parts of this Chapter 9 would remain unchanged and be renumbered from  §§ 901-906  to §§1001 to 1046

TITLE 11 CHAPTER 9 10
  CHAPTER 9  10—ADJUSTMENT OF DEBTS OF A MUNICIPALITY  STATE
SUBCHAPTER I—GENERAL PROVISIONS (§§901-904 1001-1004)
SUBCHAPTER II—ADMINISTRATION (§§921—930  1021-1030)
SUBCHAPTER III—THE PLAN (§§941—946  1041-1046)

903. 1003. Reservation of State power to control municipalities Sovereign power

This chapter does not limit or impair the power of a State to control, by legislation or otherwise, a municipality of or in such State in the exercise of the political or governmental powers of such municipality, including expenditures for such exercise, but— such State, a State law prescribing a method of composition of indebtedness of such municipality of such State may not bind any creditor that does not consent to such composition; and (2)a judgment entered under such a law may not bind a creditor that does not consent to such composition.

904. 1004. Limitation on jurisdiction and powers of court
Notwithstanding any power of the court, unless the debtor consents or the plan so provides, the court may not, by any stay, order, or decree, in the case or otherwise, interfere with—any of the political or governmental powers of the debtor State; the debtor’s use or enjoyment of any income-producing property; the sovereign immunity of such debtor State.

921. 1021. Petition and proceedings relating to petition 109(d) and 301 of this title, a case under this chapter concerning an unincorporated tax or special assessment district that does not have such district’s own officials is commenced by the filing under section of this title of a petition under this chapter by such district’s governing authority or the board or body having authority to levy taxes or assessments to meet the obligations of such district.  State.
(b)The chief judge of the court of appeals for the circuit embracing the district State in which the case is commenced shall designate the bankruptcy judge to conduct the case. After any objection to the petition, the court, after notice and a hearing, may dismiss the petition if the debtor did not file the petition in good faith or if the petition does not meet the requirements of this title.
If the petition is not dismissed under subsection (c) of this section, the court shall order relief under this chapter notwithstanding section (b)The court may not, on account of an appeal from an order for relief, delay any proceeding under this chapter in the case in which the appeal is being taken; nor shall any court order a stay of such proceeding pending such appeal. The reversal on appeal of a finding of jurisdiction does not affect the validity of any debt incurred that is authorized by the court under section (c)or (d)

927. 1027. Limitation on recourse
The holder of a claim payable solely from special revenues of the debtor State under applicable nonbankruptcy law shall not be treated as having recourse against the debtor on account of such claim pursuant to section (b) of this title.

"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

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

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

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

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

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


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

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

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

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

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

                 The Original Casablanca script:

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

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

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

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

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

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

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

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

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

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

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

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

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

Cuomo Follies Seeks A Stooge For Economic Development Agency While Other Stooges Rumble

Stooge –n. 1. an entertainer who feeds lines to the main comedian and usually serves as the butt of his or her jokes.

2. any underling, assistant, or accomplice. 

Inside the Albany Follies Tent: 

    Andrew Cuomo has made creating jobs, a top priority, "but he's raising eyebrows over one he hasn't filled: boss of the state's economic development agency...'No one has turned us down,' Cuomo spokesman Josh Vlasto insisted."   Cuomo needs a stooge who'll lend his name and reputation to a agency supposedly luring businesses to, as described by Cuomo, the "most unfriendly to business State."    The joke will be on the stooge when Cuomo fires him and appoints a new stooge.

    Meanwhile, more trough feeders have been invited as stooges onto Cuomo's Medicaid Redesign Team.
Imagine the discussion, where each of the trough feeders is asked to cut his gluttony in half to counter NY's twice as high rate of Medicaid expenditures compared to other States.   Things degenerated, after a question proposed at the Medicaid Redesign Team was "Which one of you will be the first to agree to a 50% reduction to your consumption or even better end your consumption?"  

Hilarious Pandemonium ensued with random comments:

 I need every drop.

Them, over there are the real pigs.

You're fatter than me.

It's bloated pigs like you that harm us innocents.

Then, laughter and squealing oinks, as two got stuck trying to get out of the door at the same time.

    Meanwhile, the judges demand more money, not cuts. 

Where's Cuomo?

"Governor Renault" Cuomo Shocked To Learn Of Pay Increases and Missing Budgets From State Authorities

   Andrew Cuomo and The Albany Follies are remaking "Casablanca" and will highlight Andrew Cuomo's starring role as the modern Captain Renault.

          The Original Casablanca script:

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

       The Andrew Cuomo Albany Follies includes several remakes of that same scene in Casablanca, starring the handsome Andrew Cuomo in uniform as a modern Captain Renault,  "Gov. Andrew Cuomo said he heard of raises to some State Police top brass, first reported by WNYT last night and the New York Post this morning, with “surprise and shock.”    And there was more shock, "The recently created Authorities Budget Office has released its tally of the state and local authorities that have not filed a budget, annual and/or audit report for the most recent reporting period, as required by Public Authorities Law."   And more shock, after Cuomo announced 5% reductions, ""Richard Bamberger, who has served as director of communications for Andrew Cuomo. ..was paid $140,000 in the office of attorney general, and is now up to $169,100."  And more shock, "Paterson announced a hard line hiring freeze in July, only to find out in October that 31,684 new employees had been added to the state payroll."


        The Original Casablanca Script:
Captain Renault: Oh no, Emil, please. A bottle of your best champagne, and put it on my bill.
Emil: Very well, sir.
Victor Laszlo: Captain, please...
Captain Renault: Oh, please, monsieur. It is a little game we play. They put it on the bill, I tear up the bill. It is very convenient. 

     And the Albany Follies knows how the game is played and "Governor Renault" Cuomo knows who pays the bills as, "Nearly half of the people on Cuomo's transition team and economic advisory council either are registered lobbyists themselves or work for organizations that lobby New York's state government."
 Yawn, where's the vaudeville hook?

Andrew Cuomo Recovered 0.6% Of Medicaid Budget

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

       Luckily for federal taxpayers, the federal government will be prosecuting NY Medicaid fraud, because Andrew Cuomo dropped the ball on such prosecutions while he was Attorney General.  And, although NYC is named in this federal complaint, NY State had to pay it's larger share of this fraud. U.S. Attorney Preet Bharara said in a statement, "The City's alleged conduct has resulted in patients receiving more services through the program than necessary or warranted by their condition, resulting in substantial additional costs to taxpayers," 

How much of this Medicaid Fraud will NY State have to refund to the US Government?

    Cuomo was aware of many other Medicaid frauds while Attorney General as reported on this blog and NY State will have to pay the piper (US government) with refunds (at least $1.6 billion are reported on this blog) which Cuomo has ignored in his budgeting.

     Cuomo had lots of publicity for his efforts, "Cuomo, Investigating Medicaid Fraud, Issues Subpoenas to 59 Home Care Agencies," but Cuomo reported, "Cuomo Recovers Over $660 Million in Taxpayer Funds in First Three Years as Attorney General." 


     Now, do the arithmetic, NY's $38 Billion dollar budget is "more than twice the national average on Medicaid on a per capita basis," and Cuomo has recovered $660 million in three years or $220 million per year. Or if you take 1/2 of $38 billion or $19 billion dollars as excessive Medicaid in NY, Cuomo has recovered $220 million dollars out of $19 billion dollars or 1.2% of excessive Medicaid in NY or a measly 0.6% of the total NY Medicaid budget. 
  

        "Illinois lawmakers approved a 66 percent increase to the personal income tax overnight, and soon, your paycheck will be shrinking."    Illinois "tried" and didn't find enough budget cuts.   Andrew Cuomo and his committees headed nowhere "tried."

       Remember the promised 5% cuts for Cuomo's staff.   That didn't apply for, "Richard Bamberger, who has served as director of communications for Andrew Cuomo. According to state payroll records, Bamberger was paid $140,000 in the office of attorney general, and is now up to $169,100 working for the governor’s office."
     It's coming: "I'll explain everything; it's isn't my fault; I tried; more taxes is the responsible thing."

What are the odds, now, for a unpromised tax increase?
       

Jerry Brown Acts While Cuomo Fiddles With Committees And Is Slapped By Legislature.

You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time. ~Abraham Lincoln 
 
"California Governor Jerry Brown unveiled a budget on Monday that included "painful" cuts to state worker pay and social services and a plan to extend tax increases ... to close a $25.4 billion deficit."  and "Alarmed at discovering that the state pays for 96,000 cellphones, Gov. Jerry Brown issued an executive order ...Requiring 48,000 cellphones to be turned in ...will save the state about $20 million a year."
 
      While on Monday, it was bye , bye, to some Cuomo's promises, "As the first week of New York’s legislative session began, the good will of lawmakers rallying around Gov. Andrew Cuomo’s top priorities gave way ...Opposing lines between the majorities of the Senate and Assembly were being drawn Monday over Cuomo’s proposal to cap the growth in property taxes at no more than 2 percent a year. Opposition also surfaced about whether to end, as scheduled, a temporary income tax hike on New Yorkers making more than $200,000 a year.... Assembly Speaker Sheldon Silver said Monday that his Democratic majority is discussing whether Cuomo’s proposed property tax cap limit of 2 percent or a lesser inflation rate is too low. Democrats also are discussing whether there should be more instances in which the cap could be suspended, such as an unexpected expense like a health care spike or big court judgment."  

    And it was bye, bye, to Cuomo's rent control and property tax cap as, "The Senate’s Republican majority strongly supports the property tax cap, ... But on Monday the Republicans refused to trade the cap for one of Silver’s top priorities. ... rent regulation in New York City on 1 million apartments, critical to the majority’s New York City base."  

       So, Cuomo will continue the Albany Follies Sideshow replacing Governor Paterson with himself and Andrew Cuomo will add his Fiddling to the performance. 
 
       Sadly, the Finger-Pointing Albany Follies' acts have grown stale.  There's no more money to spend.   The piper wants his fee. 

     Please Andrew, please don't cry; the People will understand; you tried; the committees couldn't find enough cuts; the legislature dropped the ball; it's not Andrew's fault: it's their fault. 

 

Do or not do.  There is no try. ~Yoda

Cuomo Fiddles While His Committees Dither And Tax Increases Loom

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

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

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

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

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

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

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

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

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

California's Governor Brown Cuts Staff And Spending While Cuomo Fiddles

 California's Governor Brown is happy as the replica of Nero's Fiddle is awarded to Andrew Cuomo.

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

    Cuomo's State of the State Speech was filled with promises of more government committees: Regional Economic Councils, Spending and Government Efficiency Commission, Local Government Efficiency Grants, Medicare Redesign Team, Mandate Relief Redesign Team, School Performance Fund, School Administrative Fund, Independent (full of hacks) Ethics Boards, Expand Women and Minority Owned Businesses, Share NY Food, etc.
      Cuomo will expand NY government and fill these committees/bureaucracies with a different kind of hack, an enlightened progressive fiscally conservative hack. 

     Cuomo also says, "NY's already hostile business climate -ranked 50th in the nation must change." and "ever growing budget deficit of nearly $10 billion."

    But Cuomo's going to cure that with his committees/bureaucracies filled with a different kind of hack, an enlightened progressive fiscally conservative hack.   Cuomo's hacks could return $5 for every $1 spent on them.

    Cuomo will explain this all in his Emergency Financial Plan to be released.
  Meanwhile, his nanny has sent the plan to the Tooth Fairy. 

Andrew Cuomo's Token Gesture Fails To Follow California Governor Brown's Example

Prelude to Cuomo's "State of the State Speech"

"Some lead by example, others fail with gestures."

"Setting an example is not the main means of influencing another, it is the only means." ~Albert Einstein

 As reported here: Andrew Cuomo Needs To Lead By Example And Cut His Office's Budget By 25% As California's Brown Has

    Andrew Cuomo has tried to follow California's Governor Brown's example with "Gov. Andrew M. Cuomo and his top staff will take 5 percent pay cuts as a way to "lead by example" as he asks for salary freezes for state workers and budget cuts to an array of interests." and "he will reduce the overall expenses for the executive chamber by 5 percent, saving about $775,000 by the end of the fiscal year March 31."

Do the arithmetic,  5% of executive expenses is $775,000 or 100% is $15,500,000 for 3 months to March 31;  or $62 million for the year for executive chamber expenses, or you should have cut $15.5 million from your budget.

 While Governor Brown is serious about leading by example, Governor Cuomo hopes his gestures will show he tried.

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

P.S. Brown has proposed his own budget, not proposed committees to make cuts 

Cuomo Hires Dolts Who Need Ethical Training Every Two Years

Andrew Cuomo hopes, "Nobody ever went broke underestimating the intelligence of the American public." ~H. L. Mencken

                    Albany Monkey Business Alert: More Theater with smiling cheeks Accomplishing Nothing
  

AP News reported, "Cuomo also issued an executive order requiring top executive branch officials to undergo ethics training that must begin by Jan. 31 and to be re-certified every two years to work in what has been a scandal-plagued state government." 
  
Is this an excuse used to protect Cuomo and his lackeys from criminal prosecutions?
     Or is Cuomo hiring moral dolts who don't know ethical conduct without taking a refresher course every two years?
     And will members of the NY legislature and our NY Judiciary, who may be also moral dolts, be without ethics because they haven't taken such an ethics course?

      Perhaps, is this a Cuomo job creation plan for Moral Dolts without innate (genetic) ethical sensibilities to make them employable. (some morality is genetic and exists in monkeys and other primates)
    
     Or worse, is this the follow-up to  Cuomo suspending criminal prosecutions by the Attorney General, when Cuomo becomes governor?

     The only moral or ethical code that works for government employees is laws with criminal penalties and prosecution certainty for those crimes.   Andrew Cuomo failed miserably as Attorney General and as HUD Secretary.  (see links in Index above).
This is Cuomo repeating his M.O., Modus operandi, "Lots of bluster about crime, ethics, cleaning the Swamp and then nothing as the crooks get away or get a slap on the wrist and they promise not to do it again."

    How stupid does Cuomo think the People are?  Only a dolt or moron would believe an ethics course every two years will stop a crooked state employee.

    If you want ethics and better government, change the laws as in: Better Laws #1: Brave New NY Politician's World: Official Misconduct is a Felony  

Change the old version of NY Penal Law: § 195.00 Official misconduct. A public servant is guilty of official misconduct when, with intent to obtain a benefit or deprive another person of a benefit: 1. He commits an act relating to his office but constituting an unauthorized exercise of his official functions, knowing that such act is unauthorized; or
2. He knowingly refrains from performing a duty which is imposed upon him by law or is clearly inherent in the nature of his office. Official misconduct is a class A misdemeanor.

To a "Better" Penal Law (changes in red): § 195.00 Official misconduct.
A public servant is guilty of official misconduct when, with intent to obtain a benefit or deprive another person of a benefit:
1. He commits an act relating to his office but constituting an unauthorized exercise of his official functions, knowing that such act is unauthorized; or
2. He knowingly refrains from performing a duty which is imposed upon him by law or is clearly inherent in the nature of his office.

3. Judges, judicial employees, employees of all NY State entities under judicial supervision and the Commission on Judicial Conduct are included as public servants under this law.

Official misconduct is a class C felony.


     Get real Andrew Cuomo, even Shakespeare knew learned morality is no hindrance to crime: "The devil can site scripture for his own purpose! An evil soul producing holy witness is like a villain with a smiling cheek." ~Merchant Of Venice. 
     Government employees with smiling cheeks learn ethics by watching the criminal prosecutions of caught government employees and the longer the sentence the deeper the learning goes. 
Has Cuomo taken this ethics class?


News Flash: Last night, Cuomo awoke startled after again dreaming of the "Ghost of NY Yet To Come." He was sure, this time, he saw the pitchforks.

Andrew Cuomo Needs To Lead By Example And Cut His Office's Budget By 25% As California's Brown Has

"Setting an example is not the main means of influencing another, it is the only means." ~Albert Einstein

    Andrew Cuomo, lead by example!  Cut your office budget in your State of the State Speech coming up.
    1. Will Cuomo create an example and cut his staff budget by 25%, as this has been done by California's Governor Brown?

2. Will Cuomo follow California's Governor Brown and
a. to take aim at several tax breaks and subsidies that have been fiercely guarded by the business lobby;
b. paring back the state's welfare program;
c.reducing what doctors and healthcare providers are paid to care for the poor;
d. trimming funding for the State University of NY;
e.warn school officials: "Fasten your seat belt; it's going to be a rough ride;
and f. target state business tax formulas?
But, so far, what's Cuomo doing at the state level, he's "seeking a quick deal to cap the growth of local property taxes,"  while not addressing local costs imposed by the state as reported in Senate Majority Leader Skelos' concern that, "said schools and local governments need relief from costly state mandates on construction and in programs to make a tax cap work."
   Wake up call to Cuomo: capping the growth of local spending is not reducing your State spending nor reducing State mandates requiring certain local spending.   The state needs cuts in spending, not caps or cuts in increases on  future spending.
  Time to bury the big old lie: Cutting the growth of spending is not cutting spending.

   It's put up or shut up at the State level, Andrew!  If you can't cut your office's budget by 25% and go after medicaid frauds and excesses, welfare excesses, education,  business subsidies, and cut legislative salaries by 25%, why should anyone follow your non-example?
Continue reading the post just below:  Trust In Andrew Cuomo's Inaugural Speech Was Not Verified to follow up.

Trust In Andrew Cuomo's Inaugural Speech Was Not Verified

Trust, but verify~  Ronald Reagan.  (he almost always presented it as a translation of the Russian proverb, "doveryai, no proveryai")

 Let's apply this to Cuomo's Inaugural Speech.    Look at all the trust, believe, and restore Cuomo asks you to do.
Cuomo says in Inaugural speech,"That’s what this administration is going to be all about — restoring the pride, making the government work, my friends. So people once again trust the government and trust the institution. So that people once again believe in government, in themselves and in this state.  And that’s what this is all going to be about. Rebuild the government, restore confidence, restore trust, get the people of this state believing once again. Believe in government, believe in themselves, believe in each other, believe in our future. Believe in our potential, believe that we can fulfill this dream of New York and we’re going to make this state the Empire State, greater than it’s ever been before."
Now look at his failed record as Attorney General: Cuomo in the Albany Swamp   and  Cuomo's M.O.

Here's what Cuomo says in Inaugural speech, about immediate action:
"There is no more time to waste. It is a time for deeds, not words, and results, not rhetoric. It is time for a bold agenda and immediate action. There is no more waiting for tomorrow and there are no more baby steps, my friends."
But, he still hasn't  followed up on most of California's Brown's proposals reported here, beginning with
1. Brown has already pledged to cut his own office budget by 25%.

Cuomo says in Inaugural speech, "The special interests who have ruled our government for years must give way to the people’s agenda." and "Number 2 is going to be cleaning up Albany and restoring trust because Bob [Duffy] is right, you have nothing without trust." and "Too often government responds to the whispers of the lobbyists before the cries of the people." 
But, "Nearly half of the people on Cuomo's transition team and economic advisory council either are registered lobbyists themselves or work for organizations that lobby New York's state government ?

Cuomo says in Inaugural speech, "They can’t afford the never-ending tax increases in the State of New York and this state has no future if it is going to be the tax capital of the nation. We have to send that signal this session by passing a property-tax cap."

But,  3. [Governor] Brown to take aim at several tax breaks and subsidies that have been fiercely guarded by the business lobby; and 7. [Governor]Brown targeted a recent change to state business tax formulas that has saved corporate California roughly $1 billion.

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

But what's Cuomo doing about,  

"An eight-month probe by state Inspector General Joseph Fisch of one of the largest-ever state contracts — a 30-year franchise to run a downstate casino worth potentially billions of dollars — reveals an almost breathtaking array of abuses by top Democratic officials controlling the legislative and executive branches." 
or what's Cuomo doing about Cuomo suspending criminal prosecutions by the Attorney General, when Cuomo becomes governor?
or what about NY corruption in Federal Court and Cuomo


Fool me once, shame on you.  Fool me twice shame on me.

In God's schekels we trust, all others' schekels we weigh. ~ From a sign in an ancient Babylon Bazaar

California's Brown Plays His Cards While NY's Cuomo Stages More Theater

"a poor player, that struts and frets his hour upon the stage, And then is heard no more: it is a tale told by an idiot, full of sound and fury, signifying nothing." ~ Shakespeare

   Will Cuomo or Brown be first to bankruptcy?      "California faces a $28-billion budget shortfall equivalent to nearly a third of the general fund, which pays for most state programs, including schools, prisons, and health and social services."  The downhill race was stopped and a temporary table was placed between Brown and Cuomo and the game began.

And Brown placed eight of his cards on the table first.
1. Brown has already pledged to cut his own office budget by 25%.
2. Brown pledged not to raise taxes without voters' signoff.
3. Brown to take aim at several tax breaks and subsidies that have been fiercely guarded by the business lobby.
4. Brown will propose paring back the state's welfare program, reducing what doctors and healthcare providers are paid to care for the poor.
5. Brown is trimming funding for the University of California and California State University systems.
6. Brown warned school officials: "Fasten your seatbelt; it's going to be a rough ride.
7. Brown targeted a recent change to state business tax formulas that has saved corporate California roughly $1 billion.
8.  Brown wants to "Extend temporary taxes [to] erase up to $9.4 billion of that deficit."

   Meanwhile, Cuomo moves to more Albany Follies sideshow theatrics with, "New venue for Cuomo's State of State speech.",  where 2,500 seats are available to hear his oration.   Peter Abbate, a veteran Democratic assemblyman from Brooklyn said, "He can invite more of his friends and get a bigger applause. He'll stack the room."   "The new location gives Mr. Cuomo much greater control over the logistics and visuals—such as invitation lists, rehearsal access and camera locations—than he would have in the Assembly chamber."     Hopefully, he'll do better than his previous recorded message shown at a NY Albany Swampfest.

    The Albany children will recite a revised ditty to fit the revised Albany farce.

Oh, The grand Cuomo of New York,
He had ten 2.5 thousand committee men;
He marched them up to the top of the Capital hill Convention Center,
And he marched them down again.

And when they were up, they were up,
And when they were down, they were down,
And when they were only half-way up,
They were neither up nor down.

     Cuomo's only bluffed against Brown's cards #2 and #8 by promising not to raise taxes.  Cuomo has six other Brown cards to counter.   Raise your ante against Brown's, or fold up your Albany Sideshow and go bankrupt.

How States And Municipalities Could File For Bankruptcy

Debts are nowadays like children begot with pleasure, but brought forth in pain. ~Moliere

 Clearing up the State and Municipality Bankruptcy Reports:
          Latest News flash: "For state governments, though, there are no printing presses and no lines of credit. States can actually run out of money"  "In the previous two budget years, the federal government ended up bailing out struggling states. In fiscal years 2010 and 2011, states received a combined $127 billion in federal bailouts ... to cover more than a third of the total shortfall."  "Washington is in a tizzy over the ever-expanding federal debt."
       Earlier in the News: it's reported that a Michigan Town Is Left Pleading for Bankruptcy, but the State of Michigan isn't giving permission, because the state fears opening a floodgate for other municipalities.  That's not the case in New York where NY law allows bankruptcy filing by any municipality with State permission already granted under NY Local Finance Law §85.80 Authority for municipality or emergency financial control board to file petition under federal statute. A municipality or its emergency financial control board in addition to, or in lieu of, filing a petition under this title, or the city of New York or the New York state financial control board, may file any petition with any United States district court or court of bankruptcy under any provision of the laws of the United States, now or hereafter in effect, for the composition or adjustment of municipal indebtedness.

         Earlier News:  The fear of state insolvencies has spooked various bond fund managers, who fear management fee decreases, after a report that, "The U.S. government will face pressure to bail out struggling states in the next 12 months, said Meredith Whitney."    Meridith Whitney also said, "U.S. states won’t default,  Instead, they will cut aid to local governments, putting them at greater risk."  The new Congress is now under even greater restraints on borrowing.  And Cuomo has promised to cap local taxes and Cuomo can't now shift State expenses to local governments without them going bankrupt.

          Some people have faith in the claim some bondholders have over pledged revenue, but that is exactly the pledge that could be removed by a bankruptcy court.   The Conservative Heritage Foundation has, "Congress should consider a way for states to file for bankruptcy or its fiscal equivalent. While such a law would raise some serious federalism issues, as long as states are allowed to enter into bankruptcy voluntary, it could be constitutionally acceptable."

        Simple questions: 1. Will Congress borrow more money and increase the deficit to bailout States?

2. Will bond holders with pledged revenue still get paid first or even in total?  (See Finance Bazaar)

3. Will Congress pass a State Bankruptcy Chapter 10?

4. Will New York Bondholders get hurt?

Answers;  1,2 NO      3,4  YES

The Hand Writing Is On The Wall for New York State

Cuomo, Medicaid, And New York Budget Headed Nowhere

   Jesus knew their thoughts and said to them: "Any kingdom divided against itself will be ruined, and a house divided against itself will fall." ~ Luke 11:17

      How will Cuomo deal with, "Nearly half of the people on Cuomo's transition team and economic advisory council either are registered lobbyists themselves or work for organizations that lobby New York's state government ?   Particularly, the lobbyists for Medicaid providers?  

    "The flood of [NY] taxpayers' money that Medicaid has poured into the hands of providers has spawned a militant, aggressive health-care lobby that threatens and targets individual legislators, and that spends millions on advertising apparently designed to convince the public that any Medicaid cuts would result in patients dying in the hallways of hospitals."
      This [$38.7 billion] program costs the taxpayers over $1,300 a year for every man, woman and child in the state. Directly (through their own taxes) and indirectly (through taxes paid by businesses from which they buy goods and services), the average family of four in New York is paying over $5,000 a year to support the [NY] Medicaid program.

    Looking at NY spending, we have this budget item list which omits only the spending budgeted for the sacred cow of education.  Where do we make the cuts?  All data here is  from "Comptroller 2010 Report on Financial Condition of NY State." prepared in March 2009.
From the $38.7 billion  for Medicaid
   or the $4.2 billion spent for public welfare
   or the $4.8 billion spent for public safety
   or the $5 billion spent for transportation
   or the $0.8 billion spent for Environment and Recreation
   or the $0.2 billion spent for business regulation
   or the $6.4 billion spent for General government
   Or a total $60.1 billion

  As of 3/31/2010, 16% or $9.8 billion of NY's debt was issued as budget relief.  This number was corrected by DiNapoli in an Albany Follies Sideshow by adding another billion dollars to this budget relief in Dec. 2010, thus $10.8 billion is claimed as required.  Now from which of the above categories in the State Budget is Cuomo going to take this $10.8 billion from?   But, the fiscal reality is that the Albany Clowns are using a grossly low number when next year's budget needs to cut $22.1 billion.  

Read from the Public Policy Institute of New York State: Medicaid: Wreaking Havoc in Health Care and discover:
1. Our costs for Medicaid are well over twice the national average.
2. The two larger states, California and Texas, have almost three times our population—but combined, they spend only a bit more than New York on Medicaid.
3. New York's costs are so far out of line that the state sticks local governments with a substantial share—and that, in turn, is a major reason our property taxes are so high.   (And Cuomo promises to cap property taxes?)
4. New York's Medicaid  is "the mother of all mandates," in which Albany by fiat orders local governments to pay almost $3.7 billion a year of the cost.  This mandate hits taxpayers directly in their property taxes (except in New York City, which collects much of the cost through its own personal income tax)

    Then, what about the $1.2 billion needed to be refunded to the Federal Government?

      What will Cuomo do when "Nearly half of the people on Cuomo's transition team and economic advisory council either are registered lobbyists themselves or work for organizations that lobby New York's state government?   The Grand Army of the State of New York Transition and Economic Advisers will have one part working against the other.

 Expect lots of sound and fury signifying nothing, while Albany children recite new words to an old ditty:

Oh, The grand Cuomo of New York,
He had ten thousand committee men;
He marched them up to the top of the Capital hill,
And he marched them down again.

And when they were up, they were up,
And when they were down, they were down,
And when they were only half-way up,
They were neither up nor down.

 

Then, bankruptcy and sticking it to the "rich" bondholders

link ~ bankruptcy law

link ~ budget impossibility 

link ~ Hand writing on the wall for NY bondholders
link ~ Why bondholders will be greatest losers (NY Finance Bazaar) 

A Ron Paul Or A Cuomo And Fixing Your New York Tax Withholding Rates

 "A fool and his money are soon parted."

        Will New York follow California and give I.O.U.'s for tax refunds?   Should this cause you to correct your New York Income Tax Withholding rates?


   Here's a California I.O.U. called a"registered warrant"

But the big California banks didn't want to honor these California warrants. and they were illiquid for using directly for purchases, but the Cuomos would be traditional script which could be used for purchases and bill payments, if someone will take them.
                      A proposed "Cuomo"

$3                               NEW YORK TREASURY I.O.U.                               $3

Tender for all non- public debts if someone will take it

New York Comptroller, Thomas DiNapoli   In Cuomo and in New York State we trust

Backed by the Full Faith And Credit of New York State

$3                                 Three Dollars                                  $3

Nicknamed "the Cuomo"  NY State can print plenty of these to give to you.   Why a $3 dollar value?

       An alternate currency is in use in Mid-Michigan, such as a Ron Paul half troy ounce of silver or a gold Ron Paul

       Of course, the NY script (I.O.U. or the Cuomo) would be backed by the full faith and credit of Andrew Cuomo and NY State, but it could only be used if it was willingly taken, because of
Article I Section 10 of the Constitution: Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility, 


         Which would you take a Ron Paul half troy ounce of silver  or some Cuomos or some California "warrants"?

        While pondering, sell your New York bonds, change your NY Income Tax withholding so you don't get a refund.