Pay For Andrew Cuomo At Either The State or Local Level In Franklin County

Prince Andrew promises a glorious future, if only we could afford him. 

   How will Andrew Cuomo's economic plans be financed at the local level?  In northern New York, Franklin County aims to override 2% property tax cap. "The slow recovery of the national, state and local economies from the most recent recession and the continued financial obligations imposed on the county by the state in the form of mandated-government activities not fully funded by the state are conditions beyond the control of the county government,"   Franklin County school Sales Taxes taxes had already gone up 1%.  Wait till Franklin County residents discover the implications on school and local taxes from Comptroller Dinapoli's changes to pension contributions at schools and municipalities which can be passed on without regard to the 2% tax cap.

Taxes rising. taxpayers fleeing NY State at highest rate in nation, windmills chased,  the most Medicaid fat cats and we have our leader Andrew Cuomo ready to spend and spend, while promising to not increase NY taxes at the State level.

You always pay in one way or the other for Cuomo's spending.

Congress Asked For Special Prosecutor To Replace Eric Holder Prosecuting NY Medicaid Fraud

Fax sent to Congress today: October 5, 2011

 To: Michele Bachmann, Ron Paul, Allen West, US Representatives; Rand Paul, David Vitter, Jim DeMint, Senators; and Harry Reid, Majority Leader; Mitch McConnell, Minority Leader; John A. Boehner, Speaker; Eric Cantor, Majority Leader; Darrell Issa,Chair House Oversight and Government Reform; Lamar Smith, Chair House Judiciary; Patrick J. Leahy, Chair Sen. Judiciary; Charles E. Grassley, Sen. Judiciary; the Senate Judiciary Committee; and the House Judiciary Committee

Re: The People of the USA want their stolen billions back from NY State.
A Special Prosecutor for the for NY State officials and others defrauding Medicaid. Eric Holder has an 18 year history of covering up for Andrew Cuomo when billions of dollars are missing. Congressional oversight is required.

Dear Senate and House Judiciary Committees and others in Congress:
            In his Fast and Furious testimony, Eric Holder is shown a perjurer at the least. But if Holder authorized or allowed the sale of these guns to cause the deaths of Mexicans or Americans he becomes a Principle in the more serious crime of murder. Eric Holder cannot be trusted in anything.

     Eric Holder has failed (deliberately?) to recover the billions of federal dollars funding New York State's Medicaid fraud and feeding the non-profit Fat Cats in New York.   Even Governor Andrew Cuomo has founded his own non-profit which is paying a half million dollars in executive fees to one of his relatives and where his sister is employed.
link to http://cuomotarp.blogspot.com/2011/09/new-yorks-non-profit-fat-cats-fatten-on.html
Governor Cuomo should taken responsibility to rein in the fraud and excess non-profit compensation in NY State. 
http://cuomotarp.blogspot.com/2011/09/congressional-super-debt-committee.html

      NY State has four Federal Court districts and conflicts of interest by lawyers working for the US Justice Department who often move into the NY private sector at more pay.   This Medicaid fraud extracts federal Medicaid funds for non Medicaid uses by the State of New York. The fraud involves the highest levels of NYS Government and is with the knowledge of the NYS Attorney General.   Eric Holder's Justice Department has not obtained sufficient cash refunds to the federal government for the frauds reported below.

1. The Times Union reported, "A federal grand jury is continuing to examine allegations that state Health Department managers may have conspired with the Research Foundation for the state University of New York to manipulate audits of New York's $22 billion a year Medicaid program. .... The investigation is centered on a federally mandated program that requires states to randomly audit their Medicaid programs to determine the rate of ineligible recipients of Medicaid benefits. ... Several people who formerly worked for the Research Foundation have alleged that their audits were deliberately sanitized so that New York State would not be penalized for excessive error rates that could have led to New York being penalized or not receiving all or part of approximately $22 billion in federal matching funds.
http://www.timesunion.com/local/article/Were-state-audits-faked-598325.php#ixzz1MeoogW5n

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

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

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

4. $22 billion dollar fraud as NYS Keeps Getting Caught For Committing Fraud, But There Never Seems to Be Any Consequences
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/ 

5. Was Cuomo MIA With A $1.2 Billion Per Year Fraud? 
  http://cuomotarp.blogspot.com/2010/09/was-cuomo-mia-with-12-billion-per-year.html

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

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

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

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

     Have Eric Holder explain to your committees why he has failed to prosecute and obtain refunds, even with a prior "Denoncourt consent decree" signed by Holder at Justice Department years ago. Then ask for a Special Prosecutor.    The People of the USA want their stolen billions back from NY State.

Sincerely yours,

CuomoTARP.blogspot.com

*In 1988, Ronald Reagan appointed Holder to serve as a judge of the Superior Court of the District of Columbia. Holder left the bench in 1993 to become US Attorney for the D.C. by Bill Clinton. The Denoncourt action was brought in D.C..  Holder was the US Attorney for D.C. and oversaw the case from 1993 through the settlement order in 1994. In 1997, Clinton nominated Holder to be the Deputy Attorney General.

See blog post; NY's Fat Cats Fatten On Medicaid and Contribute To Cuomo

P.S. 1. the above links can be accessed directly in the copy of this letter at CuomoTARP.blogspot.com
2. Others have reported these frauds in letters to Congress.
3. witnesses available.

Federal Title 18 Crimes committed by NY State Employees and others:
§1035. False statements relating to health care matters
§1031. Major fraud against the United States
§286. Conspiracy to defraud the Government with respect to claims
§287. False, fictitious or fraudulent claims
§1621. Perjury generally
§1622. Subornation of perjury

Cuomo Quixote's Windmills Go Bust In Lake Erie

Don Andrew Cuomo's Glorious Quest to be "El Presidente" requires windmills to be conquered. The peasants and their businesses will thank him for making them pay the added costs for Wind Power.  Business friendly, peasant friendly, green friendly, a shining knight and Champion for all.

Don Quixote in Madrid

     Cuomo's Power Authority's fresh water watermills went bust when the New York Power Authority pulled the plug on the offshore wind farm project, NYPA officials said it wasn’t “fiscally prudent” because even a 150-megawatt project – on the small side of the agency’s guidelines–would require subsidies of $60 million to $100 million a year. That was two to four times the subsidy a similarly sized land-based wind farm would require to be economically feasible.  “A larger project would just yield a larger subsidy,”  But the subsidy wouldn’t have just lasted for a year or two. NYPA would have paid them for 20 years. So on even a small-scale project, it would have cost $1.2 billion to $2 billion in subsidies over 20 years just to make the project work financially.
     So the brilliant Power Authority trustees are launching a new push for a big wind farm off the Long Island shore, where the demand for electricity is greater.  Will the Don Cuomo tilt more money at these salt water windmills?  Don Cuomo is so greenly correct.  Could Don Cuomo deny the glorious future of wind energy?   Pick up the green lance and charge past the failure of salt water windmills in Spain.  Don Cuomo's Glorious Quest includes being a champion for the Lady Green.   Windmills will be conquered and made to serve for all.   Damn the cost to reap the glory. 

Wanna buy some NY Power Authority Bonds, cheap?

See: New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee?

New York Exodus As Tax Payers Flee At The Highest Rate In USA. 

  Small-business lobbyist Mike Durant noted, New York has "consistently ranked worst or in the top three worst in business climate. You can't suck every penny out of people and expect them to remain in New York."

The Prodigal Cuomo Is Broke And Temporarily Survives By Not Paying Bills

The poor is hated even by his own neighbor, but the rich hath many friends.~ Proverbs 14:20.

       The Prodigal Cuomo's spending has the State finances on a razor edge according to Comptroller DiNapoli.  But the reality for Cuomo and DiNapoli is the State is already in the red.  The gimmicks, fantasy revenue expectations and unpaid delayed bills do not balance a budget.  Specifically,
1. There are $500 million in delayed personal income tax refunds.
2. Franklin County County Manager and Budget Officer Thomas Leitz said the state owes the county reimbursements for services it has already provided through its Department of Social Services, its Nursing Home and the Public Nursing Services... as of last Thursday, it is owed $3.8 million from Albany.
3. Clinton County is owed about $6.1 million, according to the County Treasurer's Office.
4. There are 40+ other counties owed money by NY State.
5. The State budget expected a growth in income tax revenues to follow from National growth and that fantasy is now devastated as Billionaire investor George Soros said he believed the United States was already experiencing the pain of a double dip recession.
6.  NYS Income tax revenues from NYC financial businesses are a major source of NYS revenues, but how do they earn money if investors are dumping everything.
7. Expected increases in Sales tax revenue is another budget pipe dream as "Consumers earned less and spent less ... The government data shows how Americans are struggling after the worst recession since the Great Depression.The Labor Department says in its annual survey of consumer behavior that spending fell 2 percent last year."

    Comptroller Dinapoli had said, "Still, the Blue Chip consensus economic forecasts for growth continue to be revised downward, raising concerns for the remainder of the fiscal year.”
     Will Comptroller DiNapoli have this honest talk with the Prodigal Cuomo?

"The State's in the red.  We're not paying our bills.  Our hoped for income tax revenue increases have become decreases.     And sales taxes going up?"

Then when Prodigal Cuomo finishes crying, DiNapoli must continue with,  "You felt great as the Big Man who spent lots of money after Hurricane Irene. Now it has to be paid for and FEMA local and state grants require a 25% contribution.   The Big Man has to come up with the money, too"

Will the People still love you, Andrew, when they have to pay the bills? 

P.S.  We can't borrow more.  New York Debt per person including local debt is $24,195. For a family of four that is about $97,000. (New York leads California in official debt per person by 29% and the debt is greater than the average for all States by 73%.)

 

Andrew Cuomo's Business Friendly New York Clashes With Pepper Sprayed Crying Girls

Is Prince Cuomo heeding Machiavelli with the pepper sprayed crying girls?
Better to be feared than loved ~ Machiavelli

Lorenzo di Piero de' Medici

to whom the final version of

the Prince was dedicated.

      Does Andrew Cuomo look like a modern day Lorenzo de' Medici?  Will Cuomo act like a modern day Lorenzo?  New York State's Comptroller DiNapoli has said New York State finances are on a razor edge.     Then, the USA days of Rage hit Wall Street.   Wall St. protests ended in mayhem. and  Wall Street protesters, many of whom are young girls, are cuffed, pepper-sprayed during 'inequality' march.  Will Cuomo ignore those pain-filled girls who are crying?

   An organizer's website, #OccupyWallStreet, says it's more than a Hashtag - It's Revolution in Formation.  Their Revolution is aimed at the people who pay the taxes  Prince Cuomo needs to run NY State government.     Will Prince Cuomo let these revolutionaries, drive the biggest New York State Taxpayers out, or diminish their earnings?   Without their NY State Income Tax payments, Prince Cuomo's State would be pushed off the Comptroller's described razor's edge.
   
       Meanwhile, the greedy billionaire Mayor Bloomberg has said he wants to keep his billions and will not fairly share them with the needy.   Is the Progressive Prince Cuomo's heart ready to increase taxes on the poor to satisfy billionaire Bloomberg's idea of fairness?  Will Prince Cuomo's heart or his head rule?

    This could be Prince Cuomo's defining moment.   He's loved by 77%.    But, Machiavelli in "The Prince" said, "it would be best to be both loved and feared. But since the two rarely come together, anyone compelled to choose will find greater security in being feared than in being loved."

Prince Andrew (de' Medici?)

    So, Will Prince Cuomo let the girls cry, save the bankers and their revenues and continue his rule securely in  New York? 
Or are the crying girls calling attention to the hand writing on the walls of Cuomo's Wall Street?
"Mene, Mene, Tekel, u-Pharsin" which was translated for the final Babylonian King Belshazzar as, "God has numbered your remaining days in power; your number is up; you've been weighed and found deficient; and your State will be divided up financially and given to its creditors."

Andrew Cuomo needs lots of "Ron Pauls"

Humpty Dumpty sat on the wall

Humpty Dumpty took a great fall

  Up to the mythical bar in the Sky strutted Andrew Cuomo, the big man in New York.  He tamed the State's budget crisis.  He appointed committees to fix everything.   He rebuilt the infrastructure damaged by Irene and prepared for his ascension to president.    But like all prodigal sons, the end was unexpected.  Will his friends who he bought drinks for at the bar love him when he asks them for money?
     Back on Earth, Comptroller DiNapoli at Cuomo's "Ministry of Finance and Hope" has shown his "prodigal prudence" by lowering his estimate of safe Pension fund returns from 8% to 7.5%.   Will DiNapoli be able to get Madoff freed from jail to help obtain this 7.5% safe return.    There are lies, damn lies and finance weasel's doublespeak.  The following words of DiNapoli were issued from the "Ministry of Finance and Hope:" 
   "DiNapoli: State’s finances on a ‘razor-thin’ margin"
1. “Revenue collections, as anticipated, have grown from last year,” 
2. “Still, the Blue Chip consensus economic forecasts for growth continue to be revised downward, raising concerns for the remainder of the fiscal year. We should be prepared for the possibility that revenue growth may falter, requiring downward adjustments to the Financial Plan.”
3. The General Fund ended August with a balance of $1.6 billion, $0.7 million lower than projected in the Financial Plan updated August 2.  Receipts, including transfers, grew $3.1 billion over last year primarily because of higher personal income tax (PIT) collections in April and $500 million in delayed refunds that lowered last year’s revenue. PIT collections ended the month $45.2 million lower than the latest projections. Spending, including transfers, increased $1.2 billion (5.5 percent) from the same period last year and was $77.4 million below projections, primarily because of local assistance and transfers to other funds.
   Or translating from Weasel, the budget isn't getting the expected revenues; we booked $500 million in delayed tax refunds as revenue when it is an unpaid expense (luckily no jail, like in private business); and we didn't transfer money we were supposed to to other accounts.

     Meanwhile back at the mythical bar, Cuomo and DiNapoli ordered two stiff drinks and discussed the news on Earth:
1. In Rhode Island, General Treasurer Gina Raimondo is calling the state's underfunded pension system a "death spiral"   and the State of RI went to court and lost when, "A Rhode Island judge has ruled in favor of state employee labor unions in the first round of a major legal challenge to state pension reform."

DiNapoli: "They used 8% and I'm using 7.5%. Hick"

Cuomo: "In NY, unions needn't go to court because pensions are protected in our NY Constitution.  What's a death spiral?"

2.  "The president urged Congress to pony up roughly $200 billion in taxpayer money to "provide more jobs for teachers [and] more jobs for construction workers" and more money to carry out other state and local activities. 
These vast contributions to the coffers of state and local governments, though pitched as a jobs bill, are in reality the latest in a series of bailouts for debt-ridden state and local governments. They are of special benefit to states in the blue regions of the country where the president's most fervent supporters reside."
DiNapoli: We need that money or we're broke. Give me another shot.
Cuomo: [animated] They'll never cut me off I'm Andrew, Son of Mario, future President, New World Order Leader.

3. "Stock futures are plummeting after the Federal Reserve indicated the U.S. economic slump could last for years.

The Fed took steps to stimulate the economy Wednesday that had largely been expected. But investors were troubled because the central bank's statement showed it expected a deep and persistent downturn."

Dinpoli: We needed a recovery; we needed growth; we needed their money.  [Orders a double}
Cuomo: {gulping down his drink] The world will change.  My daddy told me I'll rule.  Let them work harder.  The world and I need their money. 

4. "Call it the recession's lost generation.  In record-setting numbers, young adults struggling to find work are shunning long-distance moves to live with Mom and Dad, delaying marriage and buying fewer homes, ... They suffer from the highest unemployment since World War II and risk living in poverty more than others - nearly 1 in 5.   ...  recent college grads now getting by with waitressing, bartending and odd jobs, they will have to compete with new graduates for entry-level career positions when the job market eventually does improve."

DiNapoli: I want to cry at home.  The retirees are fleeing NY.  The young have no hope. Who's going to pay our bills?  

Cuomo; They're not a lost generation; they have me!

Bartender hands check to the Big Man

Cuomo; Don't give me the bill; give it to him.
DiNapoli: What do you mean, no IOU's and you'll only take a Ron Paul? link

Super Debt Committee Sent A Fat Cat Medicaid Diet Program And Special Prosecutor Called For

Fax sent to Congress today:                                      September 20, 2011
 To: Sen. Patty Murray, Co-Chairwoman Joint Select Committee on Deficit Reduction; Sen. Max Baucus of Montana; Sen. John Kerry; Sen. Jon Kyl of Arizona; Sen. Pat Toomey; Sen.Rob Portman and
Rep. Jeb Hensarling, Co-Chairman Joint Select Committee on Deficit Reduction; Rep.Fred Upton; Rep. Jim Clyburn; Rep. Dave Camp; Rep.Xavier Becerra; Rep. Chris Van Hollen.

Re: Multi-billion dollar fraud:
1. Medicaid must help the medically needy and not the needy NY State non-profit executives.
2.  Stop federal funds from feeding Fat Cats hidden in non-profits and reduce the DEBT
3. In NY State a Special Prosecutor is required for the Major Criminal Fraud by NY State officials and others taking billions of dollars a year in federal Medicaid funds. Eric Holder and the NY Offices of the US Attorney have failed to prosecute and obtain refunds. Holder has an 18 year history of covering up for Andrew Cuomo when billions of dollars are missing. Congressional oversight of the Justice Department is needed.

Dear Congressional Super Debt, Oversight and Judicial Committees:

    Why should billions of federal dollars fund New York State's failures to remove its Fat Cats feeding on federal funds.  Governor Andrew Cuomo has founded his own non-profit which is paying a half million dollars in executive fees to one of his relatives and where his sister is employed.
  link to http://cuomotarp.blogspot.com/2011/09/new-yorks-non-profit-fat-cats-fatten-on.html  
Medicaid block grants as per my prior fax to Congress would let Governor Cuomo take responsibility to rein in fraud and excess non-profit compensation in NY State. 
http://cuomotarp.blogspot.com/2011/09/congressional-super-debt-committee.html
     In addition, the Super Committee can require all fraudulent prior Medicaid payments to a State to be first deducted from present payments.  As I've previously written to Congress, there is a severe problem in NY State, which has four Federal Court districts, and a conflict of interest by lawyers working for the US Justice Department who may wish to move into the NY private sector at more pay.   The Medicaid fraud extracts federal Medicaid funds for non Medicaid uses by the State of New York. Such a fraud would involve the highest levels of NYS Government and with the knowledge of the NYS Attorney General.  Eric Holder's Justice Department has not obtained cash refunds to the federal government for the frauds reported below.

1. The Times Union reported, "A federal grand jury is continuing to examine allegations that state Health Department managers may have conspired with the Research Foundation for the state University of New York to manipulate audits of New York's $22 billion a year Medicaid program. .... The investigation is centered on a federally mandated program that requires states to randomly audit their Medicaid programs to determine the rate of ineligible recipients of Medicaid benefits. ... Several people who formerly worked for the Research Foundation have alleged that their audits were deliberately sanitized so that New York state would not be penalized for excessive error rates that could have led to New York being penalized or not receiving all or part of approximately $22 billion in federal matching funds.
http://www.timesunion.com/local/article/Were-state-audits-faked-598325.php#ixzz1MeoogW5n

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

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

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

4. $22 billion dollar fraud as NYS Keeps Getting Caught For Committing Fraud, But There Never Seems to Be Any Consequences
http://governmentrico.wordpress.com/2010/09/20/nys-22-billion-dollar-medicaid-fraud-nys-health-department-and-research-foundation-for-state-university-of-new-york-suny/ 

5. Was Cuomo MIA With A $1.2 Billion Per Year Fraud?  http://cuomotarp.blogspot.com/2010/09/was-cuomo-mia-with-12-billion-per-year.html

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

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

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

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

Solutions: 1. Use Medicaid block grants to shift the costs of this corruption directly to NY State and eliminate the over twenty years of fraud by NY State in the Medicaid program.

2. Have Eric Holder explain why he has failed to prosecute and obtain refunds, even with a prior   "Denoncourt consent decree" signed by Holder at Justice Department years ago. Then ask for a Special Prosecutor.

3. Testimony and data to end this massive fraud within NYS Medicaid and assist in making sure that the proper refunds is public knowledge.


4. Let the states like NY rein in their own Fat Cats, nepotism, and the one half million dollars and higher paid executives feeding on public funds covered up with a non-profit label.


     You can call the Bill, "The Fat Cat Medicaid Diet Program."

Sincerely yours,

CuomoTARP.blogspot.com

*In 1988, Ronald Reagan appointed Holder to serve as a judge of the Superior Court of the District of Columbia. Holder left the bench in 1993 to become US Attorney for the D.C. by Bill Clinton. The Denoncourt action was brought in D.C..  Holder was the US Attorney for D.C. and oversaw the case from 1993 through the settlement order in 1994.  In 1997, Clinton nominated Holder to be the Deputy Attorney General.

attached: blog post; NY's Fat Cats Fatten On Medicaid and Contribute To Cuomo

P.S. 1. the above links can be accessed directly in the copy of this letter at CuomoTARP.blogspot.com
2. Others have reported these frauds in letters to Congress.
3. The need for Block Grants and a bankruptcy for States proposed law were in earlier letters to Congress and available at these links:
http://cuomotarp.blogspot.com/2011/04/three-billion-dollar-medicaid-fraud-by.html
http://cuomotarp.blogspot.com/2011/05/medicaid-block-grants-would-save-ny.html
http://cuomotarp.blogspot.com/2011/01/bankruptcy-cat-is-out-of-bag-and-some.html

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

§1035. False statements relating to health care matters
§1031. Major fraud against the United States
§286. Conspiracy to defraud the Government with respect to claims
§287. False, fictitious or fraudulent claims
§1621. Perjury generally
§1622. Subornation of perjury 

cc:  Michele Bachmann, Ron Paul, Allen West, Thaddeus McCotter, US Representatives; Rand Paul, David Vitter, Jim DeMint, Senators;
and Harry Reid, Majority Leader; Mitch McConnell, Minority Leader; John A. Boehner, Speaker; Eric Cantor, Majority Leader; 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;  Chuck Grassley, Sen. Finance  

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

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

Non-Profit Fat Cat

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

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

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

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

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

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

CC: Congress

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

Thank God, Prince Cuomo is the government dream that New Yorkers want and they deserve to get it good and hard  ~ H. L. Mencken adopted


  A New York Fiscal Conservative
versus Vermont Liberals

Here are the words about Fiscal Conservative Cuomo on the reopening Rt. 73 in the Adirondacks:

 (Although, New York State and local government will pay 25% or more)
"he does not foresee the state having to borrow any money to pay for the cleanup and recovery."
"Cuomo's office inventoried what it took to get both lanes open by Monday: approximately 150,000 tons of stone; a total of 2,700 man-hours of labor; as well as a squadron of trucks, excavators, rollers and tree-removal machinery."
“government actually worked”

(Cuomo shows his toughness and leadership qualities.)
"people jump when the governor says jump."
"either wheels are going to roll or heads are going to roll."
He gave out T-shirts with 'Governor Andrew Cuomo's Labor for your Neighbor Hurricane Clean-Up Team'

(Cuomo overrules the civil engineers.)
"initial analysis projected the repairs taking two months"
"7 days after the Governor promised the highway would be open in 10 days, Rt. 73 reopened".

  Here are the Liberals speaking in Vermont:

"I think the worst thing that we could do for policy-wise or as a state government is to go in and throw money after something where we really haven't made a full assessment in doing that. I think that's where you end up throwing good money after bad,"  said Sen. John Campbell, D-Vt. President Pro Tem

Governor Shumlin says sorting out the costs and who ends up paying for what could take months.  "We're in a long marathon here, not a sprint,"

  After the voters pay the bills, will they want more of  Shumlin and Campbell's liberal frugality or Cuomo's conservative prodigal style?

Perhaps, Cuomo should have heeded that note from his remedial arithmetic tutor.

Dear Andrew,
1. Bye, bye, balanced New York State budget.
  New York economy takes MULTI-BILLION hit from Irene on vital weekend... as experts warn U.S. clean-up cost will outstrip Katrina
2. In construction, the rule is measure twice and cut once.
3. In finance, it's figure the cost first, find the cash second and then spend third.
4. Where are you or the counties or the towns going to get the money?    The tooth fairy doesn't have that 25% share.
5. Did you ask why civil engineers would allow time for compaction of fill material?
6. Overtime and double overtime is expensive and a wise man does his arithmetic.
7.Are these roads just going to be rebuilt in the Spring, because of haste now?
Finally, 1+1=2 applies to thousands and millions and billions of dollars.

Check out: New York Taxpayers Find The Local Tax Cap And Balanced Budget Were Only To Fool The Suckers

Congressional Super Debt Committee Receives Plan to Reduce Medicaid by $2 Trillion Dollars Without Harming Beneficiaries

A Fax sent to the Joint Select Committee on Deficit Reduction on Sunday evening                  September 11, 2011

To: Sen. Patty Murray, Co-Chairwoman Joint Select Committee on Deficit Reduction; Sen. Max Baucus of Montana; Sen. John Kerry; Sen. Jon Kyl of Arizona; Sen. Pat Toomey; Sen.Rob Portman and
Rep. Jeb Hensarling, Co-Chairman Joint Select Committee on Deficit Reduction; Rep.Fred Upton; Rep. Jim Clyburn; Rep. Dave Camp; Rep.Xavier Becerra; Rep. Chris Van Hollen.

Re: Proposed law for Easy Debt Reduction with Medicaid beneficiaries unharmed.  Save $200 billion dollars a year, right now, and reduce the need to borrow and save $2 Trillion in ten years. 
The winners: USA taxpayers, California and 24 other States, NY State's local taxpayers
The losers: crooked state employees, other Medicaid fraudsters/profiteers.
Score unchanged: Medicaid recipients

Honorable Senators and Representatives on the Joint Select Committee on Deficit Reduction and others in Congress:

        Senator Kerry asked for suggestions to reduce debt. Obama wants you to reduce debt by an additional $450 billion dollars and wasn't specific, leaving the details to your committee.    But this proposal is specific.  Here is a plan to reduce debt right now, with $200 billion this year and $2 trillion in ten years.  Since neither Republicans, nor Democrats need or want to fund Medicaid fraud, this Committee can cut $200 billion a year without harming the needy on Medicaid.  Medicaid block grants will shift responsibility for fraud control to the States.    Andrew Cuomo and Eric Holder are knowledgeable of the billions of dollars frauds reported below.  And you would reward California, as well as saving municipal and local/county New York State taxpayers the cost of matching the fraudulent money taken.

     The Wall Street Journal reported how $1 billion disappeared in one part of NY Medicaid fraud; "The state spends $700 million a year to house about 1,400 disabled people in the facilities. But it bills Medicaid more than three times that amount. By taking advantage of federal matching funds, the state pockets approximately $1 billion extra every year on just this one item—and uses it to subsidize other areas of the budget."
http://online.wsj.com/article/SB10001424052748704013604576247300936116610.html?mod=WSJ_NY_LEFTTopStories

Proposed law: Each state shall receive a block grant for all said state's Medicaid costs determined by multiplying the number of Medicaid recipients in the year 2010 in said State by the average of the rates paid in 2010 year to the 25th and 26th ranked states when all the states are ranked in order by their average Medicaid per recipient of federally received Medicaid money.

     Such Medicaid block grants at the median rate of the present Medicaid grants would save $200 billion a year ($2 trillion dollars in ten years) and shift responsibility for overcharges, frauds and other misuse of Medicaid funds to the individual States.    In example: in New York State, let Andrew Cuomo deal with the NY State crooked employees already known to him. NY State's corrupt stealing of Medicaid funds has gone on for years, since before 1994.   As described in prior faxes: "In the case of NY, the Feds keep auditing NYS for fraud. The frauds keep getting bigger and bigger and more and more secretive. While NYS gets fined time and time again, the people running the fraud from the safety of their administrative offices and are under the protection of the NYS Attorney General who uses taxpayer money to defend these white collar government criminals who were ripping off the [Federal government]."
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/

"The scandal reaches into the upper levels of management for the SUNY Research Foundation and the state Health Department, according to sources briefed on the case.   At stake is more than $22 billion in annual matching federal funds for Medicaid."
http://www.timesunion.com/local/article/Feds-probing-Medicaid-fraud-at-SUNY-firm-557890.php

      Block grants at the present median rate would shift criminal prosecution responsibility to NY State, where Andrew Cuomo and the new AG, Scheiderman, can act as prosecutors, instead of defending the criminal conduct of State employees in federal court. A State like California and 24 others would benefit from this change.  
http://cuomotarp.blogspot.com/2011/05/congress-asked-to-seek-special.html

    With block grants, beneficiaries would be unharmed as money received is comparable and greater than in 25 states, such as California.   Medicaid benefits per individual would remain above the amount paid in California, which State we know is not stingy with helping the needy,   The spendthrift States could then police their own Medicaid expenditures, while federal dollars for federal investigations and funding for the Justice Department investigations would be reduced.

     This letter is a condensed recap of an earlier post on CuomoTARP.blogspot.com entitled, Deal With Debt Limit With $200 Billion A Year In Real Cuts In Medicaid Which Don't Hurt Beneficiaries  which is included with this fax and has links for confirming data.  Another post, dated July 5, 2011, was sent to Congress and dealt with the need for Federal prosecution to get back the money already stolen:  Save $2 Trillion Dollars In Federal Budget Right Now And Let Eric Holder Fumble Later With NY State Medicaid Fraud

Witnesses available.

                                         Sincerely yours,

                               CuomoTarp.blogspot.com,

[please access web site for working links]

cc:  Michele Bachmann, Ron Paul, Allen West, Thaddeus McCotter, US Representatives; Rand Paul, David Vitter, Jim DeMint, Senators;
and Harry Reid, Majority Leader; Mitch McConnell, Minority Leader; John A. Boehner, Speaker; Eric Cantor, Majority Leader; 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;  Chuck Grassley, Sen. Finance

The Conservative Darling, Andrew Cuomo, Praises Government And Is Unharmed In Weekend Shootings

Thank God, Prince Cuomo is the government dream that New Yorkers want and they deserve to get it good and hard  ~ H. L. Mencken adopted

Listen to 57 seconds of our Prince Andrew, the fiscal Conservative, the Progressive, the lover of government, the lover of immigrants and Dauphin in waiting to be our King and President.


   I am government and government is good

And to highlight the success of NY government's Prince Cuomo in protecting us:  In spite of 48 people being shot and "a shooting a few blocks off the route of the annual West Indian Day Parade... [which] left two police officers wounded and three people dead Monday," our great Prince was protected his armed Police and left safely.

Then, that same little boy who embarrassed the Emperor asked:
How come you and Bloomberg have guns protecting you?
Who'll keep us safe from your abuses?
Discrimination against immigrants; how about discrimination against taxpayers?
Who in government should we thank for our failing schools?
Who's climbing the government rungs of opportunity in your Hoods?
Isn't the enemy of President Obama, the truth?
Why do taxpayers pay more than a tithe at 12.1% to New York? link
Why do I have the highest State debt per person in the USA? link
Why do taxpayers flee your government paradise? link
Why do businesses think you're unfriendly?  link
What happened to that $76 billion dollars you misplaced? link
Who made you Prince?  Your daddy?

A Cuomo Hack Involved When $17 Billion Was Missing, Followed The Next Year By A Missing $59 Billion At HUD Is Running Hurricane Irene Recovery

Those who cannot remember the past are condemned to repeat it. ~  George Santayana

 Did Cuomo and his lawyer, Glaser, reach their level of incompetence at HUD with $76 Billion in missing money?  ~ Peter Principle

Where  the $76 billion dollars went

         Andrew Cuomo gave his old HUD hack, Howard Glaser, aka State Directer of Operations, control of the Irene repair effort. "Glaser, who served as Cuomo's Deputy Counsel during his tenure as President Bill Clinton’s HUD secretary, said the governor’s experience on the federal level was and will be brought to bear throughout the storm and recovery."  

    The people should know that Cuomo's experience on the federal level was a fiscal disaster.  "When Cuomo became HUD Secretary in 1997, he axed a federal program that had saved the U.S. $2.2 billion between 1994 and 1997 and reinstituted a system that lost the government money while earning billions for favored friends.  That wasn’t the only big money lost. When Cuomo was secretary, HUD reported that $59 billion was missing! It couldn’t say where they money went, because it failed to produce audited financial statements.   The Department of Housing and Urban Development is renowned for corruption. Historically, fraud has been so pervasive and blatant that the Sopranos episode on it was disturbingly realistic."

  This is how Cuomo handled public money:
"In fiscal year 1998, HUD had “undocumentable adjustments” of $17 billion: that is, $17 billion could not be accounted for. In fiscal 1999, HUD announced that it required $59 billion of “undocumentable adjustments” to balance the books and that it would not provide audited financial statements as required by law."

    The "compassionate" Cuomo did not want those taking any of the $59 billion to suffer a government witch hunt and so, "Cuomo did not order the HUD Inspector General to investigate the reason for the missing billions or to try to get the money back."   

 Who's watching Howard Glaser and our money this time?

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

New York Taxpayers Find The Local Tax Cap And Balanced Budget Were Only To Fool The Suckers

Didn't Cuomo promise local taxes would be capped at 2%?
Did Cuomo insert a weasel clause in his tax cap?
What balanced budget?  Will more taxpayers flee? 

Weasel ~ n. 2. a treacherous or sneaky person. 
Weasel out ~v. to back out of a situation in a sneaky or cowardly manner

       The pension funding tax increases faced by schools due to Comptroller DiNapoli's decrees that were reported previously on this blog in Smoke And Mirrors As DiNapoli And Cuomo Hide Pension Costs While Schools Will Need Contribute 54% Of Salary To Pension Funds, are now being reported for municipalities.   New York State Comptroller Thomas DiNapoli decrees state and local governments will cough up more money for their workers' pensions.  The average contribution rate to the state pension fund for public workers will rise from 16.3 percent of salaries to 18.9 percent. The average for the police and fire retirement system will rise from 21.6 percent to 25.8 percent.  The Comptroller admitted that "the Common Retirement Fund has had two consecutive years of strong investment returns.  However, we are still incorporating the market loss of 2008-09 into our employer contribution rates."    The Comptroller continued with, "It's true the contribution rates are going up and that's a consequence of the severe market decline in 2008 and 2009, but the good news is that we're on the road to recovery, and if you look at the long history of the fund, we've always weathered difficult economic times — we'll get through this tough time as well,"

      Local taxpayers discover Cuomo inserted weasel clauses in his local property cap so that schools and "municipalities could pass some of the higher pension costs on to property taxpayers because the state's new property tax cap has an exclusion for part of the pension hikes."  And so Cuomo has an excuse which he forgot to mention when he was prancing about congratulating himself on not raising taxes.   "The Cuomo administration argued the exemption balances out the damage done by the 2008 financial crisis, which made less pension fund money available. With less money from the fund, localities are forced to fill the gap."

     Now, hold your wallet really tightly
   Cuomo forgot to include in his NY State budget increasing state worker pension contributions by 3.6%.  Now, add this to the judges' raises Cuomo's committee will add today at their final meeting.
[Link to judges' salary and Cuomo.]

       When will Comptroller DiNapoli and Cuomo tell us that NY State, its schools and local governments need to fund their retiree health benefits of $56.3 Billion In Presently Unfunded Liabilities.   Bye, bye, Cuomo's balanced New York State budget.
 
       If you think this local tax increase is bad, wait till you discover that these increases are based upon Comptroller DiNapoli's lowering the promised safe rate of return on pension investments from 8.0% to 7.5%.    Luckily, DiNapoli and Cuomo are running public pension plans where the federal law allows an assumption of an 8.0% or 7.5% return on investments without criminal penalties and joining Madoff in prison does not result.   A real safe yield rate for private pensions would be the US Treasury 10 year rate of 1.99% to 2.16%.  Such a safe rate would mean the increases in pension contributions required could be calculated from DiNapoli's present increase based upon a rate reduction from 8.0%-7.5%=0.5% to a true safe rate reduction of 8.0% -2.0% = 6.0%.     Since 6.0% is 12 times 0.5%, the required pension contributions should be 12 times DiNapoli's present increases.  Or, 59.5% of salary for public workers and 72.0% of salary for police and fire.

   The taxpayer wagon trains will be forming in your community soon.  Texas, Florida or Wisconsin or bust.   


See New York Exodus As Tax Payers Flee At The Highest Rate In USA

New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee?

Where's The Independent Audit Of NY Pensions?

   The independent audit overview of New York Pension funds is here at this blog for now.  So as the relentless hounds of economic reality circle in on Cuomo and New York State Pension Finances, here are some of the latest reports:
1.  E.J. McMahon, a senior fellow at the conservative Manhattan Institute for Policy Research, said the asset levels of virtually all public pension funds are below 2007 levels despite the recovery of the market in 2009 and 2010.  "Pension funds promise returns on investments -- 7 percent to 8 percent or more a year ...They still think there is a 'long-term norm,he said of fund managers. The events of the last two months are a reminder of how wrong that might be."

2. "Because so many government pension systems are underfunded, their managers have been chasing high returns by betting heavily on volatile investments ...Even with the run-up in the market earlier this year, New York’s pension assets were still some $9 billion lower than their peak in 2007 — before the financial crisis."

3. Teacher pension fund joins California auditor's high risk list

      While California has an independent auditor making a report, in New York we have the Pension Fund Manager, DiNapoli, making his own audit.   The New York Controller claims he can make safe investments with a 7.5% return and his own audit confirms it?   Can the Comptroller walk on water, too?

See in regard teacher's pensions:  Smoke And Mirrors As DiNapoli And Cuomo Hide Pension Costs While Schools Will Need Contribute 54% Of Salary To Pension Funds

See in regard NYS pension costs: New York State Will Likely Default And Rating Agencies Will Be Liable If They Fail To Properly Rate NYS Bonds

And NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible

Cuomo's Dog And Pony Show Is Run Over By A Herd Of Elephants

  "Knowing how to count is important for a Prince."  

      Governors Cuomo and Christie ran their Port Authority Sideshow Act where a $4 toll increase is announced and the two governors come to the rescue and lower it to a $1.50 increase.   Yeah for our heros, Cuomo and Christie, and their script writers.  The play acting continues in New York as the heroic Cuomo struts triumphant after "members of New York’s largest union of state employees, in a begrudging acknowledgment of the increasingly hostile mood toward public workers, have agreed to accept major wage and benefits concessions sought by Gov. Andrew M. Cuomo."

      "Savings from the five-year contract are expected to total $73 million this fiscal year, part of the $450 million in cuts that Mr. Cuomo’s budget counted on extracting from the state work force."   But, "A day after his members ratified a new five-year contract, Civil Service Employees Association President Danny Donohue said his crew has sacrificed enough - and opposes Gov. Cuomo's drive to reduce long-term pension costs."

      So Cuomo has a $450 million dollar saving, while NY State has not funded its retiree health benefits of $56.3 Billion In Unfunded Liabilities   and NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible with losses of up to $7.3 trillion dollars.   Poor Andrew may have had difficulty with arthimetic in school and not learned that there are a thousand millions in one billion and a million millions in a trillion.

$450 million is 0.8% of $56.3 billion.     $450 million is 0.006% of $7.3 trillion.

Smoke And Mirrors As DiNapoli And Cuomo Hide Pension Costs While Schools Will Need Contribute 54% Of Salary To Pension Funds

 "The sky is falling and the taxpayers fleeing"  ~ Economic Grim Reaper on impending fiscal collapse.

   Could Andrew Cuomo be arithmetically challenged in regard the NY Pension underfunding and other impending disasters with his budget?   Yes.  Could Andrew be a silver spoon fed son of Mario whose head is swelled with dreams of his coming Presidency? Yes  Could Cuomo believe he lives under different rules of ethics because his father Mario anointed him, Governor and President?  Yes, because that explains how Cuomo took a $45,000 campaign check from a law firm while Cuomo's deputies were probing one of its attorneys for his role in the pay-to-play pension scandal.

       Meanwhile, Comptroller DiNapoli still touts his achievement that "in September 2010, the Fund [teacher's] lowered its assumed investment rate of return to 7.5 percent." No honest retirement fund can safely earn 7.5% in today's market, except if you are Bernie Madoff.   A private pension manger would be spending time in jail for such lying fraud.   But Dinapoli wasn't done with misleading and fraudulent claims of solvency for pension funds he managed.  He was touting the great returns his funds earned in a one year period such as "Domestic public equities returned 17.6 percent, while international public equities returned 14.3 percent. Real estate investments yielded a 26.7 percent return, while private equity investments generated an 18.9 percent return. The Fund’s emerging markets equities returned 16.1 percent, while Treasury Inflation-Protected Securities yielded 9.7 percent and core fixed-income investments returned 8 percent."   But DiNapoli forgot to mention that those returns were from huge earlier losses in 2009 recession.  "John Cardillo, a spokesman for the teachers' retirement fund, said the fund is still trying to make up for a steep decline two years ago." 

       Even worse for those teacher funds, the schools now are paying based on DiNapoli's phoney improved safe rate of return which he lowered from 8% to 7.5%.     The schools complain that "in 2010, the pension rate was 6.2 percent of payroll and forced schools to collect about $926 million. Now at 11 percent, schools will have to pay nearly $1.7 billion, according to preliminary estimates."   Wait till the schools and ultimately the taxpayers discover that an honest safe rate of return for pension funds would be slightly above the 10 year treasury bond rate or very generously 3%.   Doing the arithmetic: going from 8% -3% =5%  is ten times greater than going from 8%-7.5% = 0.5%.     So a 3% safe rate of return would require the schools pay ten times the present increase of  (11%-6.2% =) 4.8% to an increase of 48%, which must be added to the prior 6.2% for 54.2% of salary to be contributed to the pension funds.    And wait, Cuomo and DiNapoli forgot to tell schools they have to fund retiree health benefits.

     How will schools do it with Cuomo's budget cap law?  Will more taxpayers flee?   Wanna buy some NYS bonds?

New York State Will Likely Default And Rating Agencies Will Be Liable If They Fail To Properly Rate NYS Bonds

Copy of letter sent August 16, 2011

To: Moody's Investors Service, Inc.,101 Federal Street, Suite 1900, Boston, MA 02110
Standard and Poors, 55 Water Street New York, New York 10041
Fitch's, One State Street Plaza,  New York, NY 10004
Dagong Global Credit Rating Co.,Ltd
29/F, Unit A, Eagle Run Plaza, No.26 Xiaoyun Road,Chaoyang District,Beijing, P.R.China 100125

Re: US Rating agencies will face a large liability for improper ratings for NY State Bonds. Default/bankruptcy coming shortly. Catastrophe in waiting: Average NYS non-financial sector income of $50,400 a yr. results in less net income than average NYS dole benefit of $42,000 a yr.


Dear Rating Agencies:
       How long do the rating agencies think this can continue in NY State?  While NY State pays the average public assistance person $42,000 a year in benefits according to Lou Dobbs's radio show on 8/15/2011, the average non-financial sector NY State income was $50,400.*  And NY State relies more heavily on personal income tax for its revenue than other States.*  When will the federal government cut off NY State's Medicaid program which is run as a fraud, where NY State mischarges the federal government $22 billion dollars to fund its non-medicaid State budget?  Andrew Cuomo's business friendly NY has fizzled.  Meanwhile, Andrew Cuomo failed to begin to change the NY Constitution to end unaffordable pension costs.

      "A word to the wise is sufficient."  The US based rating agencies will have a large liability, if NY State bonds are improperly rated.  The future possibility of repaying NY State bonds not backed by a dedicated revenue source is non-existent.  NY State bonds finance State agencies as well as State government.  Some bondholders, such as Thruway bonds or Dormitory bonds, receive first dibs on revenues, if the State doesn't pay on time.  Other bonds are backed by the full faith and credit of NY State without a dedicated revenue source.  But if the State doesn't have enough cash in revenue, how can it pay?

These are the details:
First, this is the text from NY State Constitution: §7. After July first, nineteen hundred forty, 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. (Adopted by Constitutional Convention of 1938 and approved by vote of the people November 8, 1938.)

  Then, in regard retiree costs:
  1. Although, Chris Christie reformed pension and benefit costs in New Jersey, Andrew Cuomo failed to ask this session of the Legislature for a Constitutional Amendment to change the above clause which prohibits NYS from changing any retirement contractually promised benefits, such as Health Insurance and Pensions.  Such an amendment must first be passed by this and then the next legislative session and then finally approved by the voters. 
http://cuomotarp.blogspot.com/2011/08/rating-agencies-informed-as-new-york.html

    2. NY State has not funded its retiree health benefits which were part of State workers' contracts with NYS and are constitutionally protected.  NewYork Adds $56.3 Billion To Its Unfunded Liabilities

    3. NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible.  All the undeposited funds needed to properly fund the pension funds and the losses of up to $7.3 trillion dollars are liabilities of NYS.  Any higher taxes to fund this shortfall would create a stampede of taxpayers getting out of NY State..

Then in regard taxpayers

    4. Taxpayers are fleeing NYS at the largest rate in the USA.   Who'll repay the bonds?

    5. NY State has the highest local and State debt per person and the second highest taxes paid per person of any State but New Jersey.    New York Debt per person including local debt is at $24,195. For a family of four about $97,000.   Will NYS raise taxes even higher and borrow more?

    6. Andrew Cuomo will not attract business or its potential taxes to NYS because NYS has the next to lowest business friendly rating of all the States.   When NY businesses repay the $ 3.6 billion dollar Unemployment Insurance loan to the Federal government this November 2011, NYS will become a business pariah.

    7. What happens when the millions of NYS taxpaying residents earning the average non-financial $50,400 or less discover their net income is less than the average dole recipient's $42,000 a year?   Do they leave the State or go on the dole?

  Then, in regard State revenues:   
   8. The NY Comptroller predicts rising numbers of non-taxpayers in the NY State Medicaid system*.


   9. NY State funded 14% of its budget this year with one time funds that will not be available in future years.

   10. Andrew Cuomo's Budget director says, he has no ability to finance spending commitments already.  This was recorded at a 7/20/2011 hearing of Cuomo's Commission on Judicial Compensation: "We don't even have the ability to finance the spending commitment that are already in place, said Robert L. Megna."


    The Bottom Line:

• a rapidly rising NYS expenditure for retiree and others' benefits
• a reduced number of businesses in NYS paying taxes and paying workers
• more NYS Medicaid non-taxpayers
• taxpayers fleeing the State
• NY State will run out of cash from its diminishing revenue sources
• NY State either defaults or goes bankrupt if Congress enables State Bankruptcy by a new law
• a tax revolt when those millions earning the average non-financial income of $50,400 or less realize that the average NYS dole recipient receives $42,000 yr. in benefits

 And the US rating agencies would be sued by all the suckers still holding devalued and defaulted NYS bonds.   And Dagong may have protected foreign investors and exposed the hopeless finances in New York State.

Sincerely yours,

CuomoTARP.blogspot.com

*See Financial Condition Report for Fiscal Year 3/31/2010

P.S. Please access website for working links to all data.