Politics on the Hudson

Gov. David Paterson this morning shot down what he said were “rumors” that some state lawmakers are talking about another tax on the wealthy to help the state’s finances.

“I heard a rumor yesterday that some of my colleagues are talking about another millionaire’s tax and that would demonstrate, I would say, a completely addictive personality,” Paterson said this morning on 710-AM (WOR) in Manhattan.

Lawmakers and Paterson in April agreed to raise income taxes on individuals making more than $200,000 a year. But because of the poor economy and some of the wealthy packing up and changing their residencies (see Rochester billionaire Tom Golisano), Paterson said it has produced about 10 percent less than the $4 billion the state anticipated in new revenue.

“The rumor isn’t traceable to anybody, but somebody just mentioned that to me yesterday and I thought, I can’t believe at this point that we never get it,” he said.

Lawmakers and Paterson—who initially rejected higher income taxes on the wealthy—agreed to raise more than $7 billion in new taxes and fees in the current year’s budget to close a roughly $18 billion budget gap. The state faces about a $9 billion gap in the 2010-11 fiscal year, which starts April 1.

Senate Democratic Leader John Sampson, D-Brooklyn, told reporters this week that he would not support any new taxes or fees in the next fiscal year.

New York state government ended the calendar year with about a $600 million shortfall in its main operating fund for the first time in recent history, requiring the state to use most of its reserves to pay December’s bills.

The deficit in the general fund illustrates the difficult financial situation New York continues to face, Gov. David Paterson said Thursday.

While he stressed the state can meet its obligations, Paterson said, “Our state is spending beyond its means. Our state is running out of money.”

Paterson indicated that revenues are expected to pick up in January, allowing him to restore $750 million in aid to schools and local governments that he withheld in December due to the cash crunch.

School groups have sued Paterson over the delayed payments, but have postponed the court proceedings in hopes that Paterson will restore the money.

Comptroller Thomas DiNapoli said the state ended the year with about $883 million cash on hand, a little more than half of one percent of the total $132 billion state budget.

But Paterson said most of that will have cover the $600 million general-fund deficit, leaving a paltry $283 million left in the state’s coffers. Budget officials, however, said it’s unclear just how much money the state will have in the bank after all the bills are paid.

Paterson said that if revenues pick up, the state could face a $7 billion to $8 billion budget deficit when the 2010-11 fiscal year starts April 1. Paterson had been predicting a $9 billion gap.

DiNapoli warned that the state must cut back on spending, knocking the current budget adopted last April as fiscally unsound. He said the state is starting the new year in a “tenuous financial position.”

“New York dropped the ball,” DiNapoli said. “The state’s New Year’s resolution must be to make better budget decisions.”

Mayor Clinton Young has tapped his 28-year-old deputy chief of staff and spokesman to be the city’s next water commissioner. Brian Bochow, Jr., will take over the job from David Ford, who is retiring after 32 years and seven mayoral administrations leading the Board of Water Supply. Ford also has been a powerful political leader, having chaired the Mount Vernon Democratic Party for 27 years through 1996. He is credited with building up the party committee from obscurity into a powerful organization in county politics.

Bochow has worked in Clinton’s administration since January 2008. He starts his new job as water commissioner Jan. 4 at a salary of $73,456. At the age of 28, he is one of the youngest commissioners in the history of the city, according a press release sent by Bochow himself.

The city’s Board of Water Supply is responsible for ensuring an adequate supply of safe water for home, business and fire-fighting purposes.

County Executive elect Rob Astorino today named four top commissioners in his administration. He’s also retaining 10 others and promoting four deputies to acting commissioner posts.

Commissioners that Astorino is retaining include:
• Mae Carpenter, senior services commissioner
• Grant Mitchell, community mental health commissioner
• Millard Hyland, medical examiner and labs & research commissioner
• Marguerite Beirne, chief information officer
• Joseph Stout, parks and recreation commissioner
• Rocco Pozzi, probation commissioner
• Anthony Sutton, emergency services commissioner
• Thomas Lauro, environmental facilities commissioner
• Kevin Mahon, social services commissioner
• Larry Salley, transportation ommissioner

Deputy commissioners that will be elevated to acting commissioner for their respective departments include:
• John Hsu, acting public works commissioner
• Kevin Cheverko, acting corrections commissioner
• Ed Buroughs, acting planning commissioner
• Patsy Yang, acting health commissioner

The rush of teachers seeking to get into the current retirement system before it expires tomorrow has grown to a whooping 4,873 applications this month—nearly five times the amount in December 2008, when 1,043 teachers applied.

State lawmakers this month passed Gov. David Paterson’s proposal to start a new Tier V pension system, which provides less generous retirement benefits aimed at lowering the soaring pension costs for state and local governments.

The changes include requiring new employees, including teachers, to pay 3.5 percent of their income toward retirement for their entire career, compared to the current 3 percent for 10 years.

The new law prompted a rush of teachers signing up to secure their place in the old system, according to the New York State Teachers’ Retirement System.

And the numbers have grown significantly even since last week. The Associated Press reported last week that 3,198 workers entered the more generous pension tier this month. But the applications are up more than 50 percent in just a week.

The New York State United Teachers encouraged its members to join the system before it changed.

Morgan Hook, a spokesman for Gov. Paterson, said the new pension tier will save billions of dollars but “still, it is extremely unfortunate that any group or individual would seek to game the system and violate the spirit of the law.”

George Longworth, an attorney who led the Dobbs Ferry Police Department and was believed to be the youngest chief in the county when he took on that position, was named today as Westchester County’s public safety commissioner.

County Executive elect Rob Astorino announced Longworth’s appointment at a 12:30 p.m. press conference in White Plains. The new county executive named several other key posts in his administration.

They include:

•Ann Marie Berg, commissioner of finance.

• Lawrence Soule, budget director.

• Kerry Oristano, human resources commissioner.

Astorino last week informed seven high-level commissioners that they wouldn’t be joining his team. Among those managers were Public Safety Commissioner Thomas Belfiore, Correction Commissioner Joseph Spano, Budget Director Anne Reasoner, Health Commissioner Joshua Lipsman, Ralph Butler, commissioner of public works, Paula Redd Zeman, personnel commissioner and Kathy Thorsberg, commissioner of finance.

Astorino last week also named George Oros as his chief of staff.

Read more about this story tomorrow in The Journal News and www.lohud.com.

Assembly Speaker Sheldon Silver, D-Manhattan, said he expects Attorney General Andrew Cuomo to run for governor next year, making Silver the highest ranking Democratic official to indicate unequivocally that Cuomo is plotting a gubernatorial run.

Cuomo has been coy about his plans as he stockpiles campaign cash and quietly lays the foundation for a likely run for governor, a seat held for three terms by his father from 1983 through 1994.

“I do,” Silver answered when asked by Fred Dicker this morning on Dicker’s radio show whether he expects Cuomo to run. “I think he’s clearly showed he’s popular and has always wanted to be governor, and I think he thinks it’s his opportunity.”

Cuomo has only said he’s focused on running for re-election for attorney general next year, but most Democrats across the state expect him to run for governor and polls show him with a wide lead over Democratic Gov. David Paterson in a potential primary and any Republican planning a run.

Paterson said he plans to run for election, likely setting up a contentious primary with Cuomo.

For his part, Silver said he has no plans to endorse a candidate until June. Senate Democratic Leader John Sampson said earlier this week that he’s not prepared to back Paterson’s election bid, saying “My concern is about our conference, the 32 members of our conference.

When it comes to who he would endorse, Silver said “I want to do what’s best for the Democratic Party.”

Gov. David Paterson’s office said today that the New York State United Teachers and other school groups are seeking a delay in their lawsuit that claims Paterson is illegally withholding school aid because he said the state is running out of money.

It prompted this statement from Paterson’s spokesman Morgan Hook:

“When NYSUT’s lawyer went before a New York State Supreme Court judge on December 16, he argued for this case to be heard on December 23, because he said the impact of the Governor’s actions was ‘immediate and severe’ and that ‘layoff notices are going out.’ His request was denied. Now, less than two weeks later, this same legal team wants to delay the case even longer,” Hook said.

“Clearly, dire warnings of ‘immediate and severe’ consequences were nothing more than scare tactics.”

NYSUT vice president Alan Lubin told the Daily News that they simply want more time to discuss the case and that there are no plans to drop the lawsuit unless Paterson agrees to pay back the money.

The lawsuit was filed earlier this month after Paterson, in an unprecedented move, withheld $750 million in payments to local schools and governments, saying the state is running out of money, which Comptroller Thomas DiNapoli today indicated is happening.

The school groups sued, saying the money was adopted as part of the 2009-10 budget and can’t be illegally withheld, something Senate Democrats also agree with but didn’t join the lawsuit.

Paterson said the money would be paid back if the state has the money to do so.

“Governor Paterson took bold action to ensure the state did not run out of cash and to protect New Yorkers from special interests who are looking to maintain the status quo for their own benefit and to the detriment of the people of New York,” Hook said. Governor Paterson will not allow the state to run out of money on his watch.”

Updated: Here’s NYSUT’s statement.

“The issue of whether the state must meet its obligation to students and school districts is a serious one that goes beyond posturing and politics.

“Since NYSUT and a coalition of education groups filed suit on December 16, the Governor, in his public statements and legal papers, has stated that school aid payments would likely be made in mid-January, protecting student services from harm; employees from layoff notices and New Yorkers from higher property taxes—all of which would have resulted if school aid payments had been withheld indefinitely.

Our main concern has been, and always will be, ensuring that school districts receive the state aid lawfully approved by the Legislature . A brief postponement in the legal proceedings should not be read as anything more than time needed to respond to the state’s gratifying change in its position.”

Republican Legislator James Maisano of New Rochelle (right in photo) will become minority leader on the Westchester County Board of Legislators. His colleague, Gordon Burrows of Yonkers (left) will be minority whip. The caucus announced the positions today.

Minority Leader George Oros, R-Cortlandt, (center) did not seek reelection. He recently was named as County Executive elect Rob Astorino’s chief of staff.

“The Republican caucus is committed to reforming county government by promoting initiatives to reduce spending, lower taxes and consolidate operations, “ Maisano said. “We look forward to working in a bipartisan way to improve the quality of life in Westchester.”

Maisano represents part of New Rochelle and all of Pelham and will begin his seventh two year term on January 1, 2010. Burrows has served his district since winning a special election in 2005 in a district that includes part of Yonkers and all of Bronxville.

“I look forward to working with the new majority legislative leadership and with newly elected County Executive Rob Astorino to consolidate government expenditures and reduce taxes,” Burrows said.

Democrats outnumber Republicans 13-4 on the county board. County Legislators Bernice Spreckman of Yonkers and newly elected  Legislator John Testa, R-Peekskill, are the other two Republican members of the board.

Sen. Charles Schumer is in Schenectady County today to complete his 11th year in a row of visiting all 62 counties in New York since he took office in 1999.

He’ll visit Proctors Theatre in downtown Schenectady.

The Democratic senator has recently faced criticism back home for his support of the health-care bill that Gov. David Paterson and Mayor Michael Bloomberg have said will add more than $1 billion in costs to New York’s Medicaid tab. And then there’s Schumer’s words with a flight attendant.

Schumer is seeking a third term next year and so far no Republicans have even hinted at running against him. The one who ran against him in 2004, the Hudson Valley’s Howard Mills, lost in record fashion, with Schumer picking up 71 percent of the vote. Democrat Randy Credico is planning a primary against Schumer.

A Marist College poll last month found that 54 percent of registered voters statewide think Schumer is doing either an excellent or good job in office while 29 percent rate him as fair, and 13 percent say he is performing poorly.

In a news release, Schumer cites his accomplishments this year as including: putting in a provision in the stimulus package that sent money to county governments to prevent layoffs and property-tax increases;  getting a  $2,500 college tuition tax credit for families; saving jobs upstate by helping to convince General Motors to repurchase two Delphi Automotive parts plants; securing about $300 million in aid for the nation’s dairy farmers and helping to keeping Hickey Freeman, the upscale suit manufacturer in Rochester, to stay open.

His office said this year’s tour included 13 trips to Albany; 16 to Erie; 17 to Monroe; 14 to Onondaga; and 22 to Westchester and Rockland counties. He made 11 trips to the North Country, 12 trips to the Southern Tier, 25 trips to the Capital Region, 25 trips to Western New York, 47 trips to the Hudson Valley, 26 trips to Central New York, and 25 trips to the Rochester-Finger Lakes.