Three Men In A Room Reach Budget Deal

by: robert.harding

Sun Mar 29, 2009 at 20:38:40 PM EDT

Governor David Paterson announced tonight that a deal has been reached with Senate Majority Leader Malcolm Smith and Assembly Speaker Sheldon Silver. The deal includes several spending cuts, a tax hike on the wealthiest New Yorkers and reforms to Medicaid that are being touted as necessary changes to the system.

"Over the last year, New York faced a historic fiscal crisis that tested our resolve. But by working together cooperatively with our partners in the Legislature, we made the tough choices necessary to address that challenge through shared sacrifice and responsible budgeting," said Governor Paterson. "The agreement we are announcing today closes the largest deficit in State history, stabilizes our finances, and institutes critical reforms that will help eliminate waste and inefficiency in our government. We have produced a budget that provides a solid foundation to move forward and address the challenges ahead. We have accomplished this with a budget that holds government accountable to the people of New York, and protects those who can not protect themselves."

There are several items in the budget that were cut, but then restored thanks to funding from the federal stimulus package. Some of these items include funding for public schools, which would have been slashed $1.1 billion under the Deficit Reduction Plan. But in the budget, there will actually be a $405 million increase in aid - a modest increase, but better than the original cut that was proposed.

There will be $2.3 billion in cuts to health care in New York, which is a lower figure than the proposed $3.5 billion in cuts that Governor Paterson was aiming for in his Executive Budget. Among items in the health care portion of the budget are reforms to the Medicaid hospital reimbursement system.

Here are some of the other highlights (you can also read the full list below the fold):

- The budget will expand the bottle bill, albeit slightly. So far, all that is being expanded is bottled water. Based on the summary given, that doesn't seem to include drinks like Gatorade, which do not have deposits on them. Even with the inclusion of bottled water, the state is expected to gain $115 million with that move.

In addition, the state will retain 80 percent of unclaimed deposits. In the past, bottlers kept 100 percent of unclaimed deposits.

- One of the more talked about changes this year is the STAR rebate program. The budget will eliminate the STAR rebate program along with the enhanced New York City STAR tax credit, which is a $1.5 billion savings to the state.

However, the STAR exemption program and the New York City STAR credit will remain in tact and still provide $3.3 billion in property tax assistance to New York's taxpayers.

- It's not Fair Share Tax Reform, but it's a lot better than nothing. Overall, the budget will produce $5.3 billion in revenues from taxes and fees. Among those taxes and fees are two new tax levels that will produce $4 billion in revenue. This is how it breaks down:

- From 2009 to 2011, married couples filing jointly will pay the following rates:
      - Income over $300,000: 7.85 percent
      - Income over $500,000: 8.97 percent

Again, you can read the full summary below the fold.

The budget is far from perfect. A lot of what was cut in Governor Paterson's proposal was still slashed, but it was also saved by the economic stimulus package funding the state received. Still, there are plenty of individuals and groups in this state that will be in quite a bind, including schools. So while having an on-time budget is a feel-good story, the impact of this budget still will leave plenty of New Yorkers hurting.

Deal To Allow Delaware North To Run Casino At Aqueduct Falls Through

by: robert.harding

Sat Oct 11, 2008 at 11:37:45 AM EDT

Both Governor David Paterson and Assembly Speaker Sheldon Silver backed a deal Friday that would allow Delaware North Companies, a Buffalo-based company, the rights to build and operate a casino at Aqueduct in Queens. However, Senate Majority Leader Dean Skelos did not get behind the deal.

Delaware North deal for casino collapses

Gov. David A. Paterson and Assembly Speaker Sheldon Silver signaled Friday that they favor Delaware North's getting the lucrative and long-delayed contract to build and operate a casino at Aqueduct racetrack in Queens.

But Senate Republican leaders late Friday afternoon put the brakes on a final deal, saying more needs to be done by the company before it signs off on an agreement. The move led to a pointed counter-charge by Paterson that the Senate leader is delaying an economic development project that also will help the state's finances.

The on-again, off-again maneuvering is just the latest in a long line of political, legal and financial delays that have blocked an operator from taking over the proposed sprawling casino that was first approved weeks after the 2001 terrorist attacks as a way to raise revenues for the state.

For Delaware North, it would mean hundreds of new jobs, including about 50 at its Buffalo headquarters, and a major addition to its growing gambling venture.

Paterson has been joined in his support for Delaware North by Assembly Speaker Sheldon Silver, a Manhattan Democrat, Assembly officials said. The casino calls for 4,500 slot-like machines, known as video lottery terminals, and would give Delaware North its fourth casino operation in the state.

Governor Paterson's Communications Director Risa Heller issued a statement last night calling Skelos' decision to stall this proposal "shocking."

After several months of three-way discussions, today Governor Paterson and Speaker Silver recommended that Buffalo-based Delaware North operate the VLTs at Aqueduct. The three bids were carefully examined by all three parties and underwent significant due diligence, including another review over the past few weeks to ensure financial viability in light of the turmoil in the markets.

Of the bids put forth, Delaware North presents the strongest financial proposal with an up front payment of $370 million. Combined with their successful track record as a partner of Saratoga Gaming, Finger Lakes Gaming and Fairgrounds Gaming, and with vast experience operating VLTs, Delaware North will build and operate a successful facility for the State of New York which will provide additional vital resources for the local Queens community, the Upstate economy, and education needs throughout the State. The Governor is also pleased that Delaware North is committed to a process to specifically address the Queens community's development needs and will effectively build on that effort in future development phases. This is the best deal for all New Yorkers.

This would be a deal that creates jobs, not only in Queens, but in Buffalo as well. I went to the Buffalo Sabres game last night and Delaware North runs the concessions there. They have quite an operation and they certainly could handle this. They also put the most money up front, which should matter in a deal of this magnitude.  

Cuomo Won't Defend State Versus Judges' Pay Lawsuit

by: robert.harding

Thu May 01, 2008 at 11:25:39 AM EDT

Cuomo Balks in Case on Judges' Pay

Mr. Cuomo's office, which defends the state and its officials against lawsuits, has declined to represent the governor, the Assembly speaker, and the Senate majority leader against Chief Judge Judith Kaye's allegation that legislators are violating the state constitution by refusing, year after year, to raise the basic salary for state judges above its current level, $136,700.

Mr. Cuomo could be avoiding the dispute because he is seeking to be insulated from the ill will that some state judges are directing toward the legislators who are keeping their pay down, observers said.

The defendants in the case thus have had to turn to private lawyers in Manhattan, who will be paid for by the state, to defend against the suit. Majority Leader Joseph Bruno's attorney, David Lewis of the firm Lewis & Fiore, said he would bill less than his usual $400 an hour, but said the rate hasn't yet been decided. The attorney who is representing Governor Paterson and Speaker Sheldon Silver in the dispute, Richard Dolan of Schlam Stone & Dolan LLP, will bill $350 an hour, a spokesman for Mr. Paterson, Errol Cockfield, wrote in an e-mail message.

A spokesman for Mr. Cuomo said the decision to force Messrs. Paterson, Bruno, and Silver to find their own attorneys was based on conflicts of interest that taking the case might have presented to the attorney general's office, which regularly represents each of the parties in the suit, including the state judiciary, in other litigation.

It would put Cuomo and his office in a tough spot. As that last paragraph states, usually the Attorney General's office defends both sides in suits involving separate parties. So when the judiciary brings a lawsuit against the other two branches of government, it would be tough for Cuomo to defend the state against another state entity.