A week after it was revealed that Comptroller Thomas DiNapoli quietly restored pensions to the private attorneys he spent a year investigating, Attorney General Andrew Cuomo announced today that one of the top targets of their investigations has settled and will no longer receive state pension benefits.

Cuomo said Long Island attorney Lawrence Reich, who had been getting a pension of $61,596 a year, will have it stripped. Reich will have to pay back “more than $240,000 for his nearly 30 years of abusing the state’s public pension system.”

In September, DiNapoli had to restore about $500,000 in pensions to dozens of attorneys he stripped of their pension because two court rulings found that he didn’t give the lawyers due process.

One of those was Reich, who DiNapoli had to pay $92,394 in back pension benefits and proceed with providing him $5,133 a month until DiNapoli could hold a hearing to determine whether Reich and others should continue to get the pensions.

But Cuomo ended all that with Reich as part of the settlement.

Reich will pay the state $240,565.74 to end Cuomo’s investigation, forfeit his pension credits and withdraw his demand for a hearing with DiNapoli.

Reich was one of the original targets of the state investigation into private attorneys working as independent contractors for local school districts. In Reich’s case, he received nearly 30 years of “improper employment arrangements with six Long Island school districts,” Cuomo said.

“This lawyer epitomized the systemic waste and abuse in a state public pension system that routinely paid out millions in public funds to private-sector professionals who weren’t entitled to them,” Cuomo said in a statement.

Senate Democrats are not expected to attend Gov. David Paterson’s planned speech to a joint session of the state Legislature on Monday, saying they will return to Albany when they reach a budget deal.

“The Senate will return to Albany once they have an agreement,” said Selvena Brooks, spokeswoman for Senate Democratic Leader John Sampson, D-Brooklyn.

The Assembly and the Senate Republican minority are expected to attend the speech, but Senate Democrats said they are focused on trying to find agreement on closing the state’s mid-year $3.2 billion budget gap.

Paterson is expected to call a special session Tuesday on the budget after he addresses the Legislature in the Assembly chambers at 3 p.m. Monday.

While lawmakers are required by law to attend a special session if Paterson issues a proclamation, he can’t demand that they attend the speech.

Gov. David Paterson appear to be getting little support from Senate Democrats in his call to address a joint session of the state Legislature on Monday.

While Assembly Democrats plan to attend have issued a proclamation to do so, Senate Democrats haven’t, and it’s unclear whether they will.

Even Paterson admitted as much this morning on the John Gambling radio show.

“Up in Albany, I want to address the joint session of the Legislature to try to explain to my colleagues what this problem is on Monday, and I’m getting some pushback about even being allowed to speak before my colleagues,” he said.

“Now if this was Bosnia or in the middle of Tehran, maybe I would understand why this is happening,” he said. “But this is New York state and the United States of America, and what I want to do is to look all of my colleagues in the eye at the same time, Democrat and Republican, upstate and downstate, and of all different ethnicities, and tell them we’ve got to pull together, put aside all these other issues and be strong enough and be resolute enough to make the tough decisions.”

Senate Deputy Majority Leader Jeff Klein, D-Bronx, said this morning that Senate Democrats recognize the need to close the deficit and want to start that Tuesday. As for Monday’s speech, that’s another story.

“All of us understand the serious nature of our economy and the need to balance last year’s budget. I think we’re all on the same page that we have to go back and find $3 billion in last year’s budget and we plan to do that on Tuesday,” he said.

“If we were going to start the DRP (deficit reduction plan) process on Monday, I’m there,” Klein continued. “But I don’t see the reason why we have to come back and listen to a speech. The time for speeches are over. We need action.”

The state’s Democratic and Republican chairman offered, as expected, different takes on Tuesday’s election results.

State Democratic Chairman Jay Jacobs said: “If you’re a Republican this morning, you’re feeling emboldened. If you’re a Democrat this morning, you’re a bit more cautious.”

But Jacobs warned that despite the party’s losses in the suburbs and upstate, Democrats have a year to regroup and refocus their message, particularly on curbing the state’s high property taxes.

“The lesson in all of of this is that where we have Democratic majorities, where we have the ability to deliver for voters, we have to redouble our efforts to focus on the issues, like property taxes in the suburbs,” said Jacobs, who in his home county of Nassau saw Republicans win the Legislature for the first time in a decade and County Executive Thomas Suozzi hanging on to a narrow lead.

Asked he still expects Gov. David Paterson to run for election next year, Jacobs said he does.

“I believe Governor Paterson is going to run and I believe that the Democrats can make the argument that we deserve to win, but that’s what we have to work hard at this year,” he said. “We are in a tough position and the governor has the responsibility to balance the budget and pay the bills in New York state. He doesn’t have the luxury of just complaining about cuts and other things, he actually has to do them.”

As for Republicans, state GOP chairman Ed Cox said that he thinks the races were a turning point in revitalizing the GOP in New York.

These are the kind of “wins, with encouragement from the local party and the state party, you could see people come forward and say I’m ready to run,” Cox said.

Asked if that means Rudy Giuliani and George Pataki, Cox said, “I think it would encourage not only them but other very good candidates to come out for other statewide or local races.”

Cox was also encouraged that Republicans can regroup after losing the 23rd Congressional District race and win next year.

“We will win it with a candidate who has good fiscally conservative views,” Cox said.

With Republicans’ wins in the New York suburbs in local elections yesterday, some Republicans say it could help encourage former New York City Mayor Rudy Giuliani and former Gov. George Pataki to run for statewide office next year.

Despite the widespread belief before Election Day that neither would run next year, both have not said what they will do—either Giuliani running for governor or U.S. Senate against Democratic Sen. Kirsten Gillibrand, or Pataki against Gillibrand.

Sen. George Maziarz, R-Newfane, Niagara County, said both of them would have consider their options after Republicans picked up seats on the local level Tuesday across New York.

“Pataki running for U.S. Senate, Rudy for governor? I think it’s an unbeatable team,” Maziariz said, adding after Tuesday’s elections “”I think it certainly makes the landscape look a whole lot greener and their chances of winning better. I think you have to take a second look at it.”

Former Rep. Guy Molinari, R-Staten Island, spent Saturday campaigning with Giuliani in Staten Island and New Jersey, but he said he doesn’t believe Giuliani has made a decision.

“He runs hot and cold on whether he wants to run again or not,” Molinari said. “I’m trying to convince him that he should run again, that the people really need somebody like him.”

Molinari said he doesn’t believe Tuesday’s results would have much of an impact on Giuliani’s decision.

“Rudy is Rudy,” he said. “Rudy is either going to run or not based on how he feels. He’s not a guy who looks at statistics and worries about the fact that maybe it doesn’t look, maybe he could win, maybe he can’t win.”

   Two Democratic senators plan to announce legislation tomorrow that would make it illegal for insurance companies to deny coverage to someone by dropping entire lines of insurance.

   The lawmakers cite the case of Ian Pearl, a 37-year-old with muscular dystrophy, whose around-the-clock nursing care costs more than $1 million a year. Rather than drop the family’s policy, which would be illegal under state law because Pearl needed care, the insurance company canceled the entire class of insurance policies in the state, according to the senators.

   Their bill, named Ian’s Law, would require insurance companies to get permission from the state Insurance Department before canceling a class of insurance policies. It is being sponsored by Sens. Neil Breslin, D-Albany, and Eric Schneiderman, D-Manhattan.

Democrats suffered some major losses in county races yesterday, with Republicans winning the county executive seat in Westchester, the county Legislature in Dutchess County and Ulster County and hanging onto the majority in the Legislature in Monroe County.

The victories, some groups said, was indicative of a tax revolt in the suburbs.

“The ground shifted in New York State last night,” said Larchmont mayor and New Yorkers for Growth spokeswoman Liz Feld, speaking about the results in Westchester. “Democrats, Republicans, and independents in the highest taxed county in America came together to say ‘enough is enough’.   Every tax-and-spend incumbent in New York State is now on notice.”

Westchester County Executive Andy Spano was crushed by Republican candidate Robert Astorino, 58 percent to 42 percent, despite Democrats holding 2-1 margin over Republicans.

In Nassau County, Democratic Executive Thomas Suozzi it appears was barely able to win re-election, holding just a 237-vote lead, but Republicans won back control of the Legislature for the first time in a decade.

In Dutchess County, Republicans won surprise victories in  six districts, giving them a veto-proof majority.

Republican gubernatorial candidate Rick Lazio put out a message to Republican leaders across the state this morning that the victories bode well for the GOP heading into next year.

“Last night, the people said loudly and clearly with their ballots that enough is enough,” he said.

“I will advance this new movement in New York as we fight for a return to responsible Government. Stand proud today knowing that the people have returned to our side tonight. They are fed up with what the governments in Albany and Washington are doing.”

Here’s some reactions to Democrat Bill Owens, left, surprising victory in the 23rd congressional district, in which he beat the Conservative candidate Doug Hoffman 49 percent to 46 percent.”

“The Democratic Party will not establish a litmus test for our candidates, like the one the Republicans imposed on their candidates in the 23rd,” said state Democratic committee chairman Jay Jacobs. “I’m proud to be a part of a Democratic Party that represents all of the working people of New York.”

From National Republican Campaign Committee chairman Pete Sessions: “The election in New York may provide a momentary victory for Democrats, but the results in two gubernatorial contests (In New Jersey and Virginia) tell us more about what 2010 holds in store for the party in power.

“Despite the unusual circumstances in this race, if we have learned anything from these across-the-board results it is that independent voters are dissatisfied with the direction that Democrats are taking this country and moving away from them at a rapid pace.”

From Chris Van Hollen, Democratic Congressional Campaign Committee chairman:

“This election represents a double-blow for National Republicans and their hopes of translating this summer’s ‘tea party’ energy into victories at the ballot box. Not only did eight extreme right-wing groups spend more than $1 million to drive the moderate Republican – and the NRCC’s chosen candidate – out of the race. Now, after losing a seat that was held by Republican for nearly 120 years, they have to deal with an emboldened and well-funded far right-wing that refuses to tolerate moderate Republicans with differing opinions.”

Southeast voters who head to the polls at 50 Main Street in Brewster today are receiving a letter signed by Putnam County’s elections commissioners as they exit the polling place.

The letter is an apology from Putnam County Elections Commissioners Robert Bennett (Democrat)  and Anthony Scannapieco (Republican) to the voters for the cramped conditions at the polling place. The four-story building houses Brewster Village Hall and senior citizen apartments and is owned by state Sen. Vincent Leibell’s nonprofit housing agency, the Putnam Community Foundation.

In the letter, the commissioners state that under a verbal agreement between the Board of Elections and Leibell, a Patterson Republican, two rooms were to be available for polling places: one in the village offices  and one in the senior-citizen community room.

But, the commissioners said this week they were told the community room couldn’t be used.

“This was directly opposite to what was agreed to and understood by both Commissioners. Calls were made to Senator Leibell who stated that we could not use the community room, no chance. It is unfortunate that Senator Leibell has chosen to make this decision,” they wrote.

Gov. David Paterson addressed the issue of his free Yankees tickets this morning after he voted in New York City, saying he wants a ruling from the state Commission on Public Integrity.

“I want to ask the state ethics commissioner what the proper ruling is in this area,” Paterson said, according to a transcript provided by his office. “And we’ll abide by it.”

While Paterson said he wants to ask for a ruling, his aides later clarified that the commission did in fact reach out to this office last week to inquire about the free tickets.

The commission is investigating five free tickets that the governor received to attend Game 1 of the World Series. The New York Post reported Monday that Paterson solicited the tickets, and a spokesman gave several versions on how the tickets were obtained.

Paterson said today that the four other tickets—for two staff members, his son and a son’s friend—have been paid for, and that the only issue is whether his ticket should be free. Each ticket cost $425.

The governor’s counsel, Peter Kiernan, sent a letter to the Yankees the day of the game saying Paterson would be attending on official business.

“Everybody is not on official business, only the governor is and that’s why we only sent a letter about the governor,” Paterson said. “The issue is only about me.”

Asked whether he agreed to pay for tickets only after it was reported in the Post, Paterson said “We planned to pay for the tickets all along. We only asked the question about me. Everything else had to be paid for.”