Category: News and Opinion

What would the change in fiscal structures and priorities I have outlined thus far mean for the economy of the one part of the state whose economy people talk about:  Upstate New York?   It would mean the ability to have a much lower cost structure, provided Upstate was willing to live with lower public expenditures, by localizing decisions about revenues and expenditures on the margin.  Upstate could choose to go on spending more if it wanted, but without draining Downstate to pay for it.

Consider the school aid formula I suggested.  It would allow Upstate New York – everyone in every part of it – to have a national average level of public school expenditures per student with little or no local tax burden.  Zip.  Nothing.  And, since incomes and spending are higher Downstate (whether that buys a higher quality of life is an open question), a substantial share of the state income and sales taxes used to fund that education Upstate would be collected outside the region, in Downstate New York.  Meaning an average level of spending would cost Upstate a below-average level of state and local taxes.  Even if spending were increased to 25% more than the national average, state taxes would still cover 80% the total, keeping local property taxes low.

Gatemouth did an excellent job analyzing and commenting on the Primary election results. However, he was limited by having only Assembly District returns. I have now obtained the results by E.D. so can try to look a little more deeply into some of the results.

10^th CD & 11^th CD

In the 10^th CD, Congressman Ed Towns won a narrower than expected victory. Towns received 19,469 votes (47%) to Councilman Charles Barron’s 15,345 (37%) and Assemblyman Roger Green’s 6,237 (16%).

The race to replace Congressman Major Owens in the 11^th was won by Councilwoman Yvette Clarke – 15,711 votes 31% to Councilman David Yassky’s 13,928 (27%) – State Senator Carl Andrews – 11,685 (23%) and Chris Owens – 9,971 (19%).

The September Current Employment Survey data from the New York State Department of Labor is out, and with the kids back in school and the schools staffed up we can now look back on the Pataki era in public employment in full.  And here is something you won’t read in the New York Post or the New York Sun, that won’t be analyzed by the Manhattan Institute, and that won’t be brought up by Republican candidate for Governor John Faso.  Nor will it be mentioned by the New York Times, analyzed by the Fiscal Policy Institute, or pointed to by Democratic candidate for Governor Eliot Spitzer.  From September 1994 to September 2006, local government employment in the portion of New York State outside New York City rose by 93,600.  This in the face of a much-discussed stagnation in population and private employment there.  This includes a below-average gain of 2,300 from September 2005 to September 2006.

No folks, I am not gone (at least not yet/ if I ever do go/lol); my time hasn’t been good for blogging lately, but I thought I would slip in a grapevine column during downtime this weekend, since stuff is always going on in Brooklyn’s politics. Especially on the other side of the tracks where I peregrinate. So here goes.

There is serious in-fighting going on behind the scenes, to find the replacement for Yvette Clarke in the City Council. This will be after she goes to Congress; since we all know that the only way she loses in November, is if she is caught having sex with a dead boy or girl. Yes, in politics, necrophilia is more fatal than resume-padding. Anyway since that is not going to happen, I will give you a list of ALL the names (replacements) that have been floated since her primary win last month. Before I do this however, let me just say for Yvette’s supporters –who have been verbally beating up on me- that I have said on this site: the people have spoken. I do wish Yvette well in her new endeavour. Her supporters need to let it go. I called the race the way I saw it. As an educator I couldn’t endorse her, not after her faux-pas. As I always say: I tell the truth the way I see it, then I duck. She has won; now move on. I have.

Is it irresponsible to speculate about who might replace Alan Hevesi if he is forced to resign after being re-elected?

Sure, but let’s do it anyway.

Based on the last time a Comptroller quit, the next one will be picked by 2 men – the Governor & Assembly Speaker.

Who they pick will serve in the job for the rest of Hevesi’s term until the end of 2010.

Assuming the next Governor is Eliot Spitzer and Shelly Silver is still the Speaker and assuming they will pick someone with some qualifications for the job, would be a good candidate to run for re-election and is someone they both get along with, here are some potential candidates I came up. I also assumed that ethnic, gender & geographic considerations would be considered. I’ve added some comments where I think it’s appropriate.

Years ago when Time Magazine was the major source of serious news for millions, somebody said “Time seems to informative until they write about something you know something about”.

I thought of that while reading today’s column by right-wing pundit Robert Novak.

Novak’s column is about an outstanding candidate who could have been a real contender except for the failure of others to support him.

That candidate – John Spencer!

Joe Torre & Karl Rove

posted by Jerry Skurnik
Thu, 10/12/2006 – 10:08am

His campaign was run by Karl Rove who is so smart that one book about him is titled Bush’s Brain and another Boy Genius. Rove is so brilliant that political reporters are probably trying to find out if he is behind the North Korean nuclear tests.

FW: YONKERS MAYOR PHIL AMICONE TO ENDORSE JEANINE PIRRO – ok to send

That’s what it has come to; a Republican mayor from Jeanine Pirro’s home county has something nice to say about her, and it is actually a newsworthy story.

Economically efficient taxation includes a low tax rate spread over a wide tax base. In New York State, on the other hand, politically efficient taxation includes high tax rates spread over a tax base narrowed by exemptions, privileges, deductions, and tolerated tax evasion. Preferential treatment, tax and otherwise, was clearly on the minds of New York State leaders at a more enlightened point in our state’s history. Consider Article 3, Section 17 of the New York State Constitution, which prohibits "granting to any person, association, firm or corporation an exemption of real or personal property." It also forbids "granting any person, association or individual any exclusive privilege, immunity, or franchise whatever." Then there is Article 16, Section 4 which states "there shall be no discrimination in the rates and method of taxation between such corporations and other corporations exercising substantially similar functions and engaged in substantially similar businesses within the state." But it doesn’t matter. Whenever the economy is good, more special tax deals are enacted as added revenues come in.  And whenever the economy is bad, rates are raised.  Sometimes they are rolled back, and sometimes not.

If you have been paying attention, you have read that I recommend changes to New York State’s Medicaid program to create incentives to reduce spending.  I propose similar changes in incentives to reduce spending in the state’s public schools outside New York City, partially balanced by increased spending in districts where spending is low, particularly New York City – but a smaller increase than proposed by the plaintiffs in the Campaign for Fiscal Equity case.   The tax surcharge-based disclosure of the cost of retiree health benefits, pensions, and debts I have suggested are intended to limit, in the long term, the hidden growth of employee compensation and the interest burden of excess debt.  One might conclude that my proposals would lead to lower taxes.  And in the long run, when state and local taxes are combined, that could be the case.  But not in the short run for state taxes alone.