....April 13, 12:54 PM
 
 
   
The New York City Mayor And His New Card

Mayor Mike Bloomberg unveied The New York City card last week.

By MICHAEL SCHENKLER

Talk about imbalance. Mayor Mike Bloomberg did just that last week, citing the lopsided flow of dollars between the City and the Nation and State.

New York City sends to Washington, D.C. in taxes, the Mayor noted, $13 billion more than it receives in spending. The inequity in the cash flow from Albany is more than $11 billion.

At a luncheon last week at the Four Seasons, the Mayor announced a new initiative – a shrewd and unique attack on the political establishment’s continued disregard of the needs of NYC.

Bloomberg intends to hold political candidates accountable for supporting the city’s priorities. He launched the campaign before a group of prominent and wealthy political donors and activists by presenting each with “The New York City Card.” The Card will be updated each year and contain a list of the top State and Federal issues facing New York City each year.

Although the room was filled with donors of every political persuasion, the commonality, Bloomberg said, was their passion for New York City.

“New York City needs all the help it can get in its fight for its fair share from Washington and Albany,” he told the luncheon. “When National and State politicians and candidates call New Yorkers for campaign cash, we need to make sure they support our City’s interest. It’s simple, if you want to tap into New York’s vast reservoir of resources, you need to support the policies and legislation that New York City needs to prosper and grow.”

The five priorities listed on the first New York City Card are:

• The approval of the trade-in of $2 billion in Federal tax credits in exchange for $2 billion in upfront Federal funds for the long-needed rail link from Lower Manhattan to Long Island.

• The allocation of Federal Homeland Security should be distributed to the nation’s states and cities based on threat, not pork barrel politics.

• The opposition to Federal eminent domain legislation that would cripple responsible re-development and revitalization.

• The increase in the State cap on charter schools to 250 to provide working families greater educational choice for their children.

•The support of legislation to provide financial incentives to produce affordable housing for New Yorkers
The New York metro area leads the nation in campaign donations. The Mayor’s own Upper East Side zip code topped the list of political money-giving. The mayor has called for an end of the free ride.

“Anybody that comes to this city and asks for money, you should ask them, ‘What are you going to do for us?”’ Bloomberg said.

This writer has been a fan of Mayor Mike because of his creative and businesslike approaches to city problems. He is uniquely positioned to twist the arms of the big monied New Yorkers who support the political parties and candidates.

Bravo Mike.

Where do we get a card?

BYE BYE

It’s time!

Queens State Senator Ada Smith has to go.

She has become an embarrassment to our borough, her district, the State Senate and the New York State Legislature -- and that is quite a difficult task.

But Ada Smith has done it. She has done it with such gross and bizarre behavior that it is pretty clear that the Senator who was redistricted from Brooklyn into Queens in 1992 seems to be in serious need of psychological help.

Her history of explosions have targeted staff members and authority figures and should not have been accepted, overlooked or covered up years ago; but the political structure tends to circle the wagons to protect its own.

Smith appeared last week in Albany City Court to answer charges that she threw hot coffee into the face of a staffer. She pled not guilty to a misdemeanor charge of third-degree assault where an order of protection was issued preventing her from contacting the staffer who said she is afraid.

Punishment was meted out by Senate Minority Leader David Paterson who stripped her of a $9,500 annual stipend and State car, and other perks and privileges.

If Smith chooses to run again, Smith will also have to answer to an informed electorate in the Democratic Primary in September. And you can bet that this time around she will have real opposition.

Before the latest Smith blow-up, Liz Goldsmith, community activist and founder of “Mothers Against Guns,” had indicated her intentions of entering the race.

Let the fireworks begin.

Michael Schenkler can be reached via this contact form.

 
 
Backdoor Borrowing Balances Big Budget


By HENRY J. STERN

Corporate America lives by the quarterly report, and reputations have been made and lost by gyrations in the figures, and the legerdemain that goes into their preparation.

In government, there are no rigid time frames for reporting results, whether they are achievements or disappointments. There are timelines governing the process of the executive submitting a proposed budget and the legislature modifying and then adopting it. This happened in Albany on Friday, March 31. It is the second consecutive on-time budget after two decades of missing the April l deadline, sometimes by months.

All Fools Day is an appropriate moment to adopt a budget which is at best an outline of spending and borrowing plans for the year. It is too early in the legislative session for the full consideration any budget deserves. There is, however, one conclusion that leaps to mind from the document and the commentaries provided by the press, upstate and downstate.

The budget is the highest in state history. The percentage increase is twice the rate of inflation. It is funded by borrowing

$11 billion or more. The public debt in New York State is higher than that of any other state but California, where Governor Schwarzenegger recently borrowed $27 billion. The per capita debt of New York State is higher than that of any other state except Alaska, which had approximately 663,661 people in 2005, about three and a half percent of New York’s population. BTW, Alaska receives 55 percent of its revenues from an oil severance tax.

New York State’s adopted budget is either $112.4 or $113.25 billion, depending on whether you take the Senate or Assembly figures. The governor said the true cost is $115.5 billion. The truth lies somewhere in between.

The budget now goes to Pataki to sign or veto. His decision will test his fiscal responsibility. He may also think about how his action will play in Iowa in 2008. He will have to consider whether the likelihood of having his vetoes overridden again is more damaging than his signing off on a bloated budget which he had little influence in shaping.

The greatest hazard in politics today is being labeled as a flip-flopper, that is, one who changes his position on an issue. Senator Kerry’s problems in this area, amplified by Republican spin-masters, helped transform a change of heart into a failure of character. Since people do, and should, sometimes change their minds because of additional evidence, new developments, or fresh thinking, the label, although widely applied, can be unfair.

Since “flip flopper” is such a pejorative characterization and the governor prefers to be seen as a fiscal conservative, it seems likely that he will veto the mega budget, unless he is able to negotiate some reductions with the Senate, in which case he would have a fig leaf for signing it. If there is a veto the next move would be up to Senator Bruno. Unlike the governor, who dreams of the White House, Bruno, who is 76, wants very much to stay in his current job, majority leader. His decision on how to deal with the budget will be informed by that desire.

We ask: Is there a shred of principle among these players?
We answer: Yes, there are many shreds. Principle, to the extent that it can be found in Albany, has been thoroughly shredded. Pragmatism triumphed long ago, even if the results are impractical and unsustainable over the long term.

We ask: What does the future hold?

We answer: Probably more of the same. Both Bruno and Silver were first elected to the legislature in 1976, 30 years ago. They are unlikely to learn new tricks or change their spots. With the aid of Ponce de Leon and pliant voters they could remain in office till the cows come home (if you can manage a third mammalian metaphor).

We ask: Is the situation hopeless?

We answer: No. All we are asking is for the adoption of a budget balanced according to generally accepted accounting principles (GAAP) and an end to the use of off-budget agencies to borrow money for recurring expenditures.

The New York State constitution places limits on state debt and public referendum on issuing bonds. These rules have been circumvented by the employment of what we call Enronian entities or off-budget instrumentalities. These satellite agencies do what their corporate parents are forbidden to do, much as banks in the Cayman Islands may engage in undisclosed transactions prohibited in the United States.

Truth and disclosure in budgeting are prerequisite to substantive discussion of the state’s priorities. That should not be too much to ask.

Starquest@NYCivic.org

Not4Publication.com by Dom Nunziato
Michael Schenkler can be reached via this contact form.