State Senate President Malcolm Smith continues to stir up Albany's bubbling, troubling cauldron of corruption today—now he's being accused of steering a $150,000 grant to a well-connected, politically-active business group.
State Senate Prez Accused of "Steering" Grant Money
State Senate Prez Didn't Disclose Half Million in Property Sales
State Senate President Malcolm Smith, who was recently called out for his extravagant pork-barrel spending, may be in trouble again, after failing to record two lucrative property sales on mandatory financial disclosure forms. In 1995 Smith bought two adjoining plots at 230th Street in Queens through his company Smith M. Realty. Since then, he's sold both to a developer netting $500,000, but that profit went undisclosed in 2002 paperwork for the legislature, and was only nominally explained thereafter. Coinciding with an investigation, which also involves his recently terminated campaign treasurer Joan Flowers, the Democrat has hired a lawyer who told the Post his client is "honest," "decent" and "law-abiding." "They can subpoena all the documents in the world. They're not going to find any evidence of wrongdoing by Malcolm Smith," he said.
Hurricane Katrina Charity Money Nowhere To Be Found
It would be charitable to call this one a mess: Two prominent Queens politicians are under scrutiny because the nonprofit they set-up to aid Katrina victims delivered barely 1/30th of their funds to evacuees. According to the ethics watchdog group National Legal and Policy Center, tax records show that only $1,392 of at least $31,000 raised to help Katrina families was paid to victims.
State Pols Using Campaign Funds for Almost Anything They Want
How much do our elected officials in Albany get by on their salaries as legislators and how much of their regular expenditures come from campaign money raised for nonexistent election battles? The Daily News has an extensive piece today investigating just what state senators and assemblymen are using their campaign funds for—all within the scope of the law.
Paterson Pushing Gay Marriage Into Senate Lion's Den
Governor Paterson may have spent his summer struggling through a legislative mess brought on by the Senate coup and continually sagging poll numbers that threaten the possibility of his 2010 bid, but he wants to make it clear that he hasn't forgotten his pledge to bring gay marriage to New York. Paterson told that he intends to put his same sex marriage bill on the floor when senators convene for a special session he expects to call later this month. Lawmakers are not required to vote on legislation brought up by the governor, but there may be more of a chance for that now that John Sampson is Democratic Conference Leader. Former Majority Leader Malcolm Smith had a deal with the Three Amigos not to bring same sex legislation to the floor. But the most vocal opponent of gay marriage, Senator Ruben Diaz Jr., told the News, "I tell you - as a man, before God - if that issue comes to the floor, there's going to be chaos in the Democratic conference. You can take that to the bank." However Diaz also said, "(But) I'm not going to join the Republicans. Never. Never."
Wait, The State Senate Hired A Hipster For $100K/Year?!
Now that Pedro G. Espada has resigned from his $120,000/year specially-created job (don't worry—he won't be paid for his few days of "work"), the spotlight has turned on some other expensive hires. The Post goes critical, reporting that "Amid the most severe fiscal crisis in recent memory and a state hiring freeze...Scratch-master Christopher Sealey was given a $120,000 salary by Senate President Malcolm Smith (D-Queens) in February to head up a five-member team dedicated to 'rebranding' the newly Democratic-controlled Senate." (The Daily News puts Sealey's salary at $100,760/year.)
Video: Governor Paterson's Star-Studded Birthday Wishes
PolitickerNY posted this video that Governor Paterson's reelection campaign has packaged from video taken during the governor's 55th birthday in May. PolitickerNY notes, "It's pretty remarkable: full of celebrities sending the governor their regards in a tone that's less Happy Birthday than Get Well Soon." You can see State Senate President Malcolm Smith proclaiming, "I love you. And just know that every decision that you've made thus far has put New York right back where it needs to be as the Empire State," while LL Cool J says, "I think he'll be fine. I think it'll work out. When you're laying on the weight bench and you inherit 2,000 pounds, it takes a bit to move it off your chest." There are also statements from MC Hammer, Carmelo Anthony and Allan Houston!!
Today In Pedro Espada Jr. News: Grand Jury, Westchester Home, Slamming Smith
While State Senator Pedro Espada Jr. and Republican senators are researching whether Espada really can seize two votes as Senate president pro tempore, let's look at what else is going on with Espada, shall we? First up: The Bronx DA's office has convened a grand jury to investigate him!
Judge Won't Rule On Senate Coup, Tells Senate To "Resolve" It
A State Supreme Court judge refused to rule on the State Senate's state of ridiculousness and instead urged (again!) the Senators to work out the matter. State Supreme Court Justice Thomas McNamara dismissed Smith vs. Espada (read the decision) and wrote, "A judicially imposed resolution would be an improvident intrusion into the inner workings of a coequal branch of government. The practical effect of having a court decide this issue would be that its decision, if only by perception, would have an influence on the internal workings of the Senate.
To have a court do so would be improper... The failure of the Senate to resolve this issue in an appropriate manner will make them answerable to the electorate."
Senate Democrats Talk About "Sharing Power" With GOP
After being told by a judge to work out their own mess, Senate Democrats claimed to be working on a power-sharing deal with Republicans (here's a letter they sent to the GOP). The Republicans were, after last Monday's coup, in power, but then dissident Democrat Hiram Monserrate decided to side back with the Democrats, splitting the Senate into a 31-31 tie, with no majority.
Hiram Monserrate Tells Daily News He's Back With Democrats
State Senator Hiram makes it two days in the row on the cover of the Daily News: After his Mets-Yankees game appearance with fellow dissident Democrat Senator Pedro Espada Jr., now Monserrate is making waves by telling the News he's going to vote with the Democrats, just one week after he and Espada helped Republicans take control of the Senate. The lawmaker from Queens broke the news to Daily News columnist Juan Gonzalez, saying, "I'm coming home."
Senate Democrats Tell Malcolm Smith To Move It
To bookend a week that began with a coup in Albany which stripped the Senate Democrats of their majority, Senate Dems met to discuss their leadership and future. And while former Senate majority leader Malcolm Smith (D-Queens) refused to answer reporters' questions about whether he still headed the Democratic conference, the Democrats apparently told Smith that he's out and that Senator John Sampson (D-Brooklyn) will be the "conference's de facto boss."
Smith Gets Restraining Order Stopping Espada (For Now)
The craziness in Albany continues, even after hours! According to the Times Union, "Senate Democratic Majority Leader Malcolm Smith obtaining a temporary restraining order stopping breakaway Democrat Pedro Espada from utilizing any of the powers of the chamber's President Pro Tem -- a title that Espada claimed Monday after the tumultuous coup that returned Republicans to power. Smith's legal relief, however, may be short-lived: A state Supreme Court judge will hear arguments from both sides in the four-day-old battle for the Senate on Friday morning." You can read the ruling here; the Daily Politics hears the GOP spin, "The Senate Republicans are playing this down, saying all it means Espada can't be acting governor if something happens to Paterson or he leaves the state between now and 9 a.m. tomorrow, when there is hearing in the Supreme Court of Albany County on Smith's request for a declaratory order and injunctive relief, which would basically be a legal ruling proclaiming him - not Skelos - the majority leader."
Coup In Albany: Golisano Helps GOP Takes Back Senate
It's Albany as usual—and by usual, we mean totally full-tilt boogie dysfunctional. Yesterday, two State Senate Democrats decided to join the Republican minority, which then threw the GOP back in power, with a 32 member majority (30 Republicans, the 2 defected Democrats). The Times Union reports, "The whole posse was backed by billionaire Thomas Golisano, who has been conspiring with a small cadre of lawmakers to accomplish the overthrow." Wow, Golisano was really pissed about paying more in taxes! The Daily News sums it up in an editorial (on the cover, no less): "Yesterday's coup d'etat revealed Albany for the madhouse it has become, with the lunatics firmly in charge of the asylum."
Democrats Lose Control of State Senate After Two Members Defect
In a stunning turn of events, the Republicans appear to have taken back control of the State Senate after two Democratic senators defected and voted to place new leaders in control of the legislative body. Senators Hiram Monserrate and Pedro Espada, Jr., of Queens and the Bronx respectively, joined GOP senators in a 32-30 vote to make Espada temporary president of the Senate and Republican Dean Skelos the new Majority Leader.
Different Ideas On Ethics Reform In Albany
Governor Paterson proposed a reform of the state's ethics commission. While State Senate Majority Leader Malcolm Smith, not to mention a number of watchdog groups, backs Paterson's plan for a single commission, combining the executive branch's and legislative branch's commissions, the third man in the room, Assembly Speaker Sheldon Silver, "expressed unease" about Paterson's plan in an interview with the NY Times, which points out, "Mr. Silver, speaker for the last 15 years, is seen by many as a guardian of the state’s traditionally insular approach to government." The Daily News describes Silver's own ethics plan proposal as one that "keeps lawmakers in charge of enforcing their own conduct" with "several committees doing the policing." Related: Smith also said that lawmakers should disclose their income, adding, "I think leadership should not have a second income. I think anybody in leadership, I would rather see just devote their full time to the job," which might be a poke at Silver, who has never disclosed what he makes at law firm Weitz & Luxenberg.
Happy Birthday to Our State Piñata!
David Paterson turns 55 years young today. PolitickerNY gives a rundown of the festivities up in Albany, which including Senate Majority Leader Malcolm Smith surprising the governor with an exquisite-looking birthday cake. When asked why there were no candles, a Paterson staff member said, "We didn't want to burn down the Red Room."
Luv Gov "Honored" With Preakness Horse As Troopergate Returns
If you hear that the "Luv Gov" is chasing after Black-eyed Susans this weekend, it's probably not what you think. One of the thirteen horses entered into the Preakness Stakes this weekend in Baltimore, Luv Gov (pictured) has been given the same nickname slapped on former Governor Eliot Spitzer. The thoroughbred's owner is Marylou Whitney, an upstate Republican with another horse named "Ninth Client."
Bronx DA and Andrew Cuomo Investigating State Senator Espada
Democratic State Senator Pedro Espada Jr.—who was just caught illegally residing outside his Bronx district in tony Mamaroneck—is in the hot seat again for what one Bronx political veteran describes as doing "a cha-cha around the campaign finance law—spirit and letter." After the Daily News's scathing report on Espada's conduct, Senate majority leader Malcolm A. Smith called him into a closed-door meeting, giving Espada one week to rectify illegalities with his campaign committee. But Smith is also downplaying the severity of the brewing scandal, telling the Times, "I don't think it's raining problems, the fact that a member has a challenge with his campaign finances, which he's had for awhile. So basically, he's got to correct it. He has until this time next week to correct it, or else I will take some action." Woah—a promise of action in Albany!
Will State Senate Dems Start Looking for a New Ruling Recipe?
With the ink finally beginning to dry on the MTA bailout deal, some questions are being raised on how the Democrats in the State Senate will be able to get legislation passed from this point on without the painful process that went along with the transit bill negotiations. The bailout saw factions within Democratic senators effectively kill East River tolls (the appropriately titled "Three Amigos") and receive kickbacks for the payroll tax (the desperately needing a publicist "Long Island Two"). The Times points out that the Senate has had to force legislation like overturning the Rockefeller drug laws into the state budget rather than get picked apart as a stand-alone bill. Could it be time for Smith to start sitting down with and courting votes from Republicans rather than relying on these party-line affairs? One senator told the paper, “We can either do 32 out of 32, and always fight for the last two or three votes. Or we can do 32 out of 62, and get a lot more done.” It's also worth noting that two of the Dems' 32 are currently facing felony charges.
State Sen. Kevin Parker Grasping at Straws After a Rough 24
When you're an elected official facing felony charges for assaulting a photographer, breaking his camera and bashing his car in, the best way to proclaim your innocence and garner sympathy from the public might not be to have your lawyer compare your case to another tabloid headline assault of the moment involving a TV star. State Senator Kevin Parker's attorney felt otherwise.
Malcolm Smith Takes His Turn Playing MTA Bailout Magician
Word from Albany is that Senate Majority Leader Malcolm Smith expects a vote on the MTA bailout proposal to happen tomorrow. Today he is meeting with the two Democratic senators from Nassau and Suffolk Counties respectively who appear to be the last holdouts in getting a plan passed. Doesn't it give you a fuzzy feeling knowing that the possibility of paying $100 for a monthly Metrocard to ride a bus line that no longer exists now rests in the hands of Long Island legislators? Smith didn't really provide a boost of confidence today when he said, "The governor offered a suggestion that we think was a very interesting idea, one that has merit. And we're hopeful that today, once we complete all our negotiations, we'll be putting a final bill on the floor. Or we may have to ask for a message of necessity, which the governor would have to do." Paterson's latest "secret plan" to reimburse local school districts for the payroll tax needed for a bailout won over two Westchester senators—no word on what might be used to entice their Long Island colleagues.
No More Puerto Rico Trip For Malcolm Smith
Last week, State Senate Majority Leader Malcolm Smith was all ready to head to Puerto Rico for a junket with other lawmakers—even though a reporter questioned his travels with critical issues still left unresolved. Smith replied, "What critical issues?" and the Daily News' Liz Benjamin said, "Well, the MTA, for example, mayoral control of schools, gay marriage is still hanging out there." But now Smith is all about staying home, and he's blaming the swine flu! Per PolitickerNY, Smith said, "I myself, unfortunately, have a daughter who was at [St. Francis Prep] who is under the weather. My wife is still under the weather, and I would tell you that my first responsibility is as a husband and a father. And I believe at this point it's probably better for me to stay closer to home than to be on a trip. I still think it's a good trip...but I think I should be closer to my daughter and my wife. God forbid if something were to happen to them and their condition gets worse while I'm away, I would never forgive myself."
Desperate Albany Senate Says Any MTA Bailout Bill Will Do
Yesterday the MTA revealed that its finances are in even worse shape than originally believed, with declining property tax revenue resulting in an additional $621 million budget gap—even after planned fare and toll increases of up to 30% and service cuts go into effect. With those dreaded changes just weeks away, the authority is still hoping the state will pass some sort of bailout package to help avoid the worst of the cuts. Sadly, the MTA's hopes rest on the Albany legislature, where hopes go to die.
Paterson Proposes Gay Marriage Bill: "Rights Should Not Be Stifled by Fear"
Governor Paterson held a press conference today introducing legislation to legalize gay marriage in New York. The governor was not the least bit tepid in his strong support of the issue, saying he has been on record as an advocate for same-sex marriage since 1994. The state's first black governor drew a strong connection between the fight for marital rights and the abolition movement, citing the names of Harriet Beecher Stowe and Frederick Douglass. Paterson said:
Legislature Works On Passing Massive State Budget
Now that Governor David Paterson, Senate Majority Leader Malcolm Smith and Assembly Sheldon Speaker emerged from their super-secret talks with a $132 billion budget, it's time to get the damn thing passed! Here's how the Times Union explains it: "With Gov. David Paterson's endorsement, the Legislature today intends to begin passing budget bills that will increase taxes by $5.2 billion, rely heavily on short-term and one-time revenues and require potentially deep cuts or more taxes if the economy continues its downward spin, as the governor projects."
Legislators Sound Hopeful on Eleventh Hour MTA Bailout
After a week in which any bailout plans out of Albany flopped and the MTA finally made official its proposal for a fare hike and service cuts, legislators are finally sounding like they are close to a deal that will alleviate the strain put on straphangers. The long-discussed raising of driver registration fees and MTA payroll tax are likely to be central to any plan to avoid the proposed $103 monthly Metrocard. Senate Leader Malcolm Smith says that "all options are on the table."
GOP May Bail Out MTA Bailout with Smith Now as Piñata
After Malcolm Smith came forward yesterday with his highly anticipated version of a rescue plan, the Senate Leader turned around today and found just about no one standing behind him—not Governor Paterson, not Assembly Leader Silver and certainly not anyone from the New York newspapers.
State Senate Dems Still Like Raising Taxes For Wealthy
According to the NY Times, the NY State Senate Democratic leaders "will seek income tax increases on at least some affluent New Yorkers and a sales tax increase of a quarter of 1 percent to help balance the state budget." An anonymous Senate official said, "The hole is too deep to dig ourselves out by cuts alone. The debate now is over where to start." The Times previously reported some of their proposed tax hikes, which would create three new tax brackets: $250,000-499,999; $500,000-999,999; and $1 million and over; there is also a separate proposal to raise taxes for households making $500,000 and more. Assembly Speaker Sheldon Silver supports taxing upper income levels. Senate Majority Leader Malcolm Smith, Silver and Governor Paterson will supposedly meet in private to hash out the new state budget.
MTA and Albany Point Fingers with Fare Hike Clock Ticking
With layoffs coming and the possible draconian fare increase looming, the war of words between MTA officials and state legislature is heating up. At their emergency board meeting yesterday, MTA Chairman Dale Hemmerdinger said, "This is big stuff. And I think [state lawmakers] don't really understand what's at stake...Trains that will not be there...People who won't be able to get to the doctors, won't be able to get to school, won't be able to get to work." Whether or not Albany is able to help alleviate the fare hike and transit cuts, the "doomsday budget" will include cutting about 200 token booth positions and all 600 station customer assistants with pink slips going out in May. An MTA bailout based around the Ravitch plan has been stalled due to the possibility of East River tolls and other issues. Senate Majority Leader Malcolm Smith said, "I just don't think it's appropriate for the MTA to sort of hold the public hostage and say, 'Well if we don't get to the deadline we're going to charge you more. I mean the public didn't cause their failures in terms of how they manage their budget."

