Coup, fiscal crisis top Albany’s year of turmoil

Joseph Spector of the Gannett New Services takes a look back on the turmoil and excitement of 2009.

“In a state where the words “Legislature” and “dysfunctional” are often used synonymously, this year’s events made the troubles in New York’s government even more apparent.

The year started with Senate Democrats struggling to manage a slim 32-30 seat majority they won last year. Problems climaxed in the summer with a month-long leadership coup that paralyzed the chamber and ended this month with the corruption conviction of former Senate Republican Leader Joseph Bruno.
All the while, Gov. David Paterson sought to keep the state from insolvency — and fought to establish his own political viability — amid the worst economic downturn in decades.

The year, perhaps like few others, provided a “window into the shadowy business dealings of our state Legislature,” said Barbara Bartoletti, legislative director for the state League of Women Voters.”

To read the rest of Joe’s story click here.

The New York Times is reporting this morning - “New York is about to achieve a dubious milestone: For the first time in history, the state’s main bank account is poised to end the year in the red.

After months of plunging revenues and weeks of budget battles, New York had a negative balance of $174 million in its general fund on Wednesday, with nearly $1 billion in bills owed by day’s end. Every sign pointed to the account’s still being in the hole when 2010 begins. To fill the gap, New York will be forced to rely on its own version of overdraft protection by raiding its short-term investment pool — a kind of statewide checking account. But that account itself is dangerously low, with only about $800 million on hand, compared with a balance in more flush years of as much as $16 billion.

And the lower the short-term balance falls, the harder it is for the state to cover its day-to-day bills and the closer New York moves toward a previously unimaginable eventuality: A government check that bounces.”

To read the rest of the story click here.

The following is part of an article in today’s Ablany Business Review - “The Business Council of New York State Inc. is changing the format for its annual legislative reception, to be held next month.

The Albany-based lobby is holding what it’s calling a “issues expo” at the Crowne Plaza Hotel in downtown Albany. The free event will be held from 6-7:30 p.m. on Jan. 19. Registration is due by Jan. 12.

The redesigned event has been changed to comply with state lobbying laws regarding gifts and receptions where state officials are present. The event replaces the lobby’s annual reception.

The event will be held the same day Gov. David Paterson releases his proposed budget for the state’s 2010-11 fiscal year.

About 800 people attended a similar event in January 2009. The Business Council expects even more attendees this year because it is opening the event to nonmembers, said spokesman Rob Lillpopp.”

To read the rest of the story click here.

To find out more about the event or to register for the event click here.

Brad Gill, Executive Director of the Independent Oil and Gas Association of New York, wrote an opinion piece in the Buffalo News last week in response to an op-ed full of false statements and depicting development of natural gas as dangerous. Read Brad’s piece at http://www.buffalonews.com/149/story/900990.html

Most of the press surrounding development of the Marcellus Shale consists of hysterical attacks on the industry despite a strong industry safety record with over one million horizontal, hydraulically fracked wells drilled. Back to back front page pieces by Propublica, (which claims to be an independent, investigative news organization but continuously fails to cover any positive aspects in the drilling industry), carried by the Albany Times Union, manipulate the facts in an attempt to yet again scare the public about drilling. On Dec. 28, Propublica claimed that as much as 85% of fracking fluid is left underground. Propublica’s Dec. 29th piece claims that each well will produce 1.2 million gallons of wastewater which will require treatment. Which is it? Is the wastewater left underground or will it require treatment after being withdrawn from wells. Propublica appears to be using “facts” to support whatever happens to be its claim of the day. Its “throw the mud up on the wall and see what sticks” tactics are doing a disservice to New York by scaring its citizens. The industry is not afraid of a responsible debate and the news media should report all sides of the issue.

The truth is that there is risk associated with drilling for natural gas and no one in the industry will tell you otherwise. The risk is very small compared to the benefits associated with development. It would be refreshing to read a balanced article in the mainstream media that discusses BOTH the costs and the benefits of development.

The Business Council of New York State, Inc., The Independent Oil and Gas Association of New York and fifteen other businesses groups from a cross New York sent a letter to Governor Patterson urging him to remain committed to natural gas development in New York State.

“A coalition of business and economic development groups, led by the Business Council, the Independent Oil & Gas Association of New York, today urged Governor Paterson to remain committed to his draft State Energy Plan, in which he supports the expansion of natural gas exploration in New York.”

“Sixteen groups, including chambers of commerce and other pro-business and pro-taxpayer groups, reminded the governor of his stated position that expanded natural gas exploration “would generate economic benefits, including increasing the stable supplies of indigenous fuel, lowering gas transportation costs for consumers, generating new State and local tax revenues, and increased revenues for landowners from land use agreements with natural gas companies.”

Read the full press release here.

Read the letter in support here.

Send a message to the Governor in support of Marcellus Shale here.

The Daily Freeman reports -”The Metropolitan Transportation Authority payroll tax issue isn’t fading away anytime soon.

There is still much opposition to the tax imposed by the state on all businesses in the counties within the MTA region, including Dutchess, Orange, Putnam, Rockland and Westchester.

State Assemblyman Joel Miller, R-Poughkeepsie, has his own idea on how to deal with the tax.”

Read the rest of the story click here.

John Faso the former New York State Assembly Minority Leader has been taking a hard look at the health care debate in congress and has written about it a number of times on his Times Union blog.  He is a small piece of his latest posting.

“Two thousand pages.  One thing is for certain:  few, if any Members of Congress have actually read it.

But you don’t have to read the actual bills to know one thing for certain:  costs of health care will go up and not be reduced by passage of these bills. 

Congress can do many things but it cannot defy the laws of gravity or the law of supply and demand.  Think of it this way:  some 30 millions will gain coverage after 2013 or 2014 according to Senator Reid, Speaker Pelosi and President Obama.  Yet, nothing contained in these plans will increase the supply of doctors, nurses and other medical practitioners.

So, we have a new demand for medical services represented by 30 million newly insured people, but no increase in the supply of doctors, nurses and others to meet that demand.  You don’t have to be Milton Friedman to understand that when that amount of new demand is placed on the same supply of services, the price of that service will go up.  And, I believe the price will go up substantially. 

The argument that the legislation is “paid for” is also fiction.  Much of the new revenue comes from cuts in Medicare Advantage programs which serve the health needs of about 25% of seniors.  (What happened, by the way, to the promise that “you can keep the health care you have”? Never mind.)”

To read the rest of the blog posting or to visit John’s blog click here.

Health care reform and how to pay for it seems to be the topic of the day for a number of writers on the New York Times staff. We thought we would share a few small segment of what they are presenting with you.

New York Times op-ed Columnist Bob Herbert writes -”There is a middle-class tax time bomb ticking in the Senate’s version of President Obama’s effort to reform health care.

The bill that passed the Senate with such fanfare on Christmas Eve would impose a confiscatory 40 percent excise tax on so-called Cadillac health plans, which are popularly viewed as over-the-top plans held only by the very wealthy. In fact, it’s a tax that in a few years will hammer millions of middle-class policyholders, forcing them to scale back their access to medical care.

Which is exactly what the tax is designed to do.”   To read more click here.

Expanding Health Coverage and Shoring Up Medicare: Is It Double-Counting?

Also in the New York Times, Robert Pear writes about the CBO effort to cut through the fuzzy math.

“At the heart of the fight over health care legislation is a paradox that befuddles lawmakers of both parties.

Separate bills passed by the Senate and the House would squeeze nearly a half-trillion dollars from projected spending on Medicare over the next 10 years. These savings would help offset the cost of providing coverage to people who are uninsured.

At the same time, federal accountants say the money would shore up the Medicare trust fund, so the program could continue paying hospitals to treat older Americans in the future.

In other words, Medicare savings mean both more money available to spend now and the appearance of more money to spend later on Medicare.

How is this possible?”   To read more click here.

An Underground Campaign

Elizabeth Olson writes on tort reform and the influence that is being use to keep things the way they are and how doing so will not reduce the cost of health care.

“Lawmakers debating health care reform in recent weeks haven’t been reticent about blaming trial lawyers for driving up the nation’s medical costs by pursuing large malpractice awards.

Trying to fend off any limits to patient lawsuits, the lawyers decided to press their arguments in a new location — the subway system here. Lawmakers and their aides arriving on Capitol Hill by Metro, as the subway is known, pass through a blizzard of brightly colored ads on the platform and the walls and hanging from the ceiling.

They bear the lawyers’ message that nearly 100,000 people die each year from medical errors, and that tort reform won’t fix the health care system.”   To read the rest of the story click here.

Tom Wilber gives a good overview of events that occurred in 2009 in the debate over drilling for natural gas in the Marcellus Shale in New York State. Deals were made, coalitions were formed and both sides of the debate galvanized and made themselves heard at rallies and meetings across the state. Even the world’s largest energy company, Exxon Mobil, is now a player.

It has been a frustrating year for those of us advocating for development of the Marcellus Shale. Misinformation is everywhere and seems to take on a life of its own if it is repeated often enough. I remain optimistic that we will turn the corner in 2010 and safe, clean and responsible development of the Marcellus Shale will begin and bring jobs back to Central New York and the Southern Tier. As a coalition leader stated in the article, “we all know the good times will come if we stick together”.

To read the entire article go to: http://www.stargazette.com/article/20091228/NEWS01/912280335/2009-a-pivotal-year-for-Marcellus-drilling-but-to-which-way

Lisa Lerler write on Polictico.com -”Bruised by the health care debate and worried about what 2010 will bring, moderate Senate Democrats are urging the White House to give up now on any effort to pass a cap-and-trade bill next year.

“I am communicating that in every way I know how,” says Sen. Mary Landrieu (D-La.), one of at least half a dozen Democrats who’ve told the White House or their own leaders that it’s time to jettison the centerpiece of their party’s plan to curb global warming.

The creation of an economy-wide market for greenhouse gas emissions is as the heart of the climate bill that cleared the House earlier this year. But with the health care fight still raging and the economy still hurting, moderate Democrats have little appetite for another sweeping initiative — especially another one likely to pass with little or no Republican support.

“We need to deal with the phenomena of global warming, but I think it’s very difficult in the kind of economic circumstances we have right now,” said Indiana Democratic Sen. Evan Bayh, who called passage of any economy-wide cap and trade “unlikely.”

To read the rest of the story click here.