Paterson met privately with key Democratic leaders about his re-election plans as questions swirl around the state capitol about a variety of unproven accusations involving the Democratic governor’s personal conduct.

Paterson campaign spokesman Richard Fife said the weekend calls had nothing to do with the accusations but were “routine re-election campaign calls.”

“The governor started making calls two weeks ago to step up his campaign effort and get ready to officially announce his re-election campaign,” Fife said. “The calls were — and are — going well … And then look what happens — a coordinated effort to stop him and spread rumors.”

A Democrat close to the situation, though, said the meetings included discussions about whether Paterson would resign or announce he will not run. The Democrat spoke on condition of anonymity because of the sensitivity of the issue.

One recent New York Post article about the accusations drew a denial by Paterson’s spokeswoman and a strong rebuke by the superintendent of state police.

“Perpetrating lies about the governor, his family and troopers who diligently perform their duties is a disservice to the citizens of New York,” said state police Superintendent Harry J. Corbitt, a career trooper appointed to the top post by Paterson.

A spokesman for the governor sharply criticized the crescendo of questions, rumors and accusations.

“This is a new low even by the standards of Planet Albany,” said Paterson spokesman Peter Kauffmann late Sunday. “The circus of the past week entirely fabricated out of thin air and innuendo is an embarrassment for all who have played a role in fueling it.”

“I’ve never seen the rumor of a story becoming the story as this one has,” said Doug Muzzio, politics professor at New York City’s Baruch College.

Paterson became governor 23 months ago when Eliot Spitzer resigned amid a prostitution scandal. Paterson had been forced to confront allegations of sexual affairs and drug use since the day he rose to office on March 17, 2008. He held an extraordinary news conference detailing past affairs that he and his wife were involved in during an 18-month period when it appeared their marriage would end. He also recounted drug use from his youth.

He said he made the admissions so he couldn’t be compromised as governor and to avoid further fracturing a government rocked by Spitzer’s resignation.

Paterson already had plenty of conflict among his fellow Democrats. A week ago he vetoed an ethics bill adopted by the Democrat-controlled Legislature that was widely seen as essential this election year. Paterson says he wants a tougher bill.

He also has refused to abandon his campaign for a full term, even as the far more popular and better-funded Andrew Cuomo, the attorney general, waits in the wings.

To illustrate how bad the national economy is, New York’s cash reserve is dwindling quickly, and the state faces a crisis if it doesn’t address its budget woes soon.

If the government can’t reach a budget agreement by Dec. 31, the state’s cash reserve will total only $36 million, and that’s only if the state dips to the bottom of its emergency reserve; New York’s budget deficit totals $3.2 billion.

Democratic Gov. David Paterson has urged the legislature to deal with the gap. But with public support for him virtually non-existent, his words carry little, if any weight.

On the bright side, New York’s legislature is famous for waiting until the last minute to address budget problems. So many legislators and outside experts predict the government will act before it’s too late. In addition, Wall Street bonuses are paid in January, and the state will receive withholding tax revenue from those payments.

But given the lack of progress in negotiations so far, state officials are readying for a cash crisis. Some government services may have to shut down if no action is taken.

“Unless we act, New York will run out of money, even after we delay payments to schools and local governments,” Patterson said in a web cast Tuesday. “This is an unprecedented fiscal emergency.”

Credit rating agency Moody’s Investors Service wrote in a report last week, “The next three months will be critical to the state’s credit rating.” Moody’s analyst Emily Raimes told The New York Times:

 “If they solve them [the budget deficits] with one-time measures, that’s going to increase the gaps in future years, and at some point they get so large it becomes difficult to solve them.”

California is in even worse shape than New York. The Golden State’s budget deficit will soar to $20.7 billion over the next 18 months, according to a new report from the nonpartisan Legislative Analyst’s Office.

That’s nearly triple the estimate of just four months ago, and the office says $20 billion deficits will likely be the norm for years.

Folks, if you live in the state of New York and have cell phone service, please read your bill.  Unbeknownst to a lot of you, the state is taxing you like crazy, depending on the phone plan that you currently have.

A typical New Yorker’s cell phone bill has eleven – yes, eleven!! – surcharges which can add up to 33% to the total amount of the bill monthly.  A good example is that if you pay $49.99 for your cell plan, after $10.59 in levies assessed, your total bill comes to $60.58.  If you have a T-Mobile Basic plan with300 minutes – which is typically $29.99/month- the state tacks on an additional $6.95 in taxes, for a total of $36.94/month.

If you’re one of those who have a family plan, you get hit even harder.  Here’s yet another example.  If you have 2 lines through Sprint at $69.95/month, expect an additional $15.73 to be added to your bill, for a grand total of $85.68 – a rate of 24.25%. 

Unfortunately, a lot of people do not read their bills – they just pay them up and move on.  And that’s exactly what elected officials want you to do.  That gives you a reason to contact your GOP lawmaker in the part of New York state that you reside in and voice your complaints. 

This is also something that you can voice your opinion about on the 15th – the day of the national tea parties.  Take some time during your day on the 15th and attend a tea party at a location near you.  If you haven’t figured it out already, this money/power grab is the handiwork of the Paterson administration up in Albany.  There’s also elections up there in 2010, including the governor’s seat, along with House and Senate seats.

Become proactive and get involved, whether it is through the tea parties or possibly volunteering for a GOP House/Senate/Governor campaign.  Doesn’t matter which of them you choose to participate in – just get involved!!  And most importantly – vote.  If you choose to simply sit on your ass and do nothing, you’ll get much of the same, much like you are right now.  Your and your family’s future depends on your participation.

Image: N.Y. Post

It is common knowledge that Congress is sneaky, especially in financial matters.  But it appears that the state of New York wants to be like them as Governor David Paterson and Democrats in the state legislature have – behind closed doors – agreed on a two-year, $8 billion tax hike on all New York state residents making more than $500,000 a year; the proposed “tax hike” is scheduled to happen right around 2010 – the year that Paterson is up for re-election.

Also in the mix up in Albany is a proposal in which lawmakers want to increase the state’s sales tax from 4 to 4.5 per cent – which could jump to 10% in certain parts of New York in cities that have local sales taxes.  This sales-tax hike would take effect either in 2010 or early 2011.  Folks, Paterson is flip-flopping as he had previously claimed that he didn’t want to impose a “millionaire’s tax”; now it appears he is endorsing both.

This will without a doubt get the state GOP’s attention; now if they can just become proactive on the matter.

Funny thing about political shenanigans; it not only transcends political stripe, but it is on a state-wide level, as well.  And specifically in this case, it involves operatives in New York state government.

A Democratic political consultant and a top lieutenant to former state Comptroller Alan Hervesi were indicted yesterday in a scheme to trade lucrative investments in the state pension fund for more than – get this – over $30 million in kickbacks, gifts and campaign contributions.  All of this stemming from a 2-year probe by New York State Attorney General Andrew Cuomo.

The two individuals involved in this scheme, Democratic political consultant Hank Morris and former state pension-fund manager David Loglisci, were indicted on 123 counts; the indictment states that Morris used his access to the Comptroller’s office to direct more than $4 billion – billion with a B, folks -  from the fund to private equity firms, venture capital funds and businesses in exchange for “bogus placement fees” and other payoffs.

This scheme started back when Hevesi assumed the state comptroller’s office in 2003 and ended around late 2006 when he resigned.  One of the payoffs involving Loglisci state that he received $290,000 to – and I am not making this up, folks – help his brother fund and distribute a poorly received comedy titled, “Chooch” – a film about two Italian-Americans.

Assuming that both are convicted on all counts, Morris faces a maximum of 340 years in prison while Loglisci looks at 193 years himself.  Perhaps this goes further and deeper as Cuomo is investigating whether financial firms continue to use politically connected consultants to gain access to state pension funds.

As far as I can tell for this juncture of the calendar year, this episode is by far – at least on a state level – the biggest financial crime to date.  Apparently, the vetting process within the state of New York are shoddy at best, or at worst non-existent.  And it is in my opinion that current Governor David Paterson had to know at least a little something about all of this as Cuomo has to report to Paterson on a daily basis.

It must suck to be the governor of New York right now.  After all, when you’re getting slammed by negative press – wow, I didn’t see that one coming – and having your poll numbers drop like a lead balloon, maybe you do what David Paterson – the state’s governor – did on Friday: you fire your communications director. 

Specifically, Governor Paterson let go of Risa Heller; while the governor claimed that she left on her own, sources within the state Democratic Party claim otherwise, saying that Paterson was looking to shake up his PR operation and demanded her resignation.  According to the New York Post, Paterson told close associates of his that he had no confidence in Heller. 

Without a doubt, this resignation – or whatever you want to call it – had a lot to do with the Caroline Kennedy fiasco; for those of you who arent’ aware, Kennedy threw her hat in the ring for the New York Senate seat vacated by current Secretary of State Hillary Clinton.  And not surprisingly, Paterson issued the usual positive spin on Heller’s resignation, stating,

“I want to thank Risa for the experience, judgment and counsel she brought to my administration. She is an exceptional professional who has been an invaluable adviser to me. I wish her the best in her future endeavors.”

But in a statement that smacks of contradiction, Paterson also said a little later that he was trying to find the “right chemistry”.  And without a doubt, Paterson’s camp is suffering; to date, Heller is gone from Albany, and his fund-raising efforts have taken a big hit as  his chief fund-raiser, Cindy Darrison, had announced a few days ago that she would leave in what is being described as “the growing friction” between Paterson and his senior staff.  Looks like the “snowball” effect to me.

With the 2010 election around the corner, no Senator in place and Paterson up for election, this can be nothing but good news for the GOP as they now have fresh ammunition at their disposal for the NY gubernatorial race.  Things have officially gotten interesting in Albany.

There’s a senatorial seat available up in New York, assuming Hillary Clinton passes muster through the confirmation process.  And as one would expect, there’s quite a bit of interest in the vacancy, including one Caroline Kennedy.  However, there’s a problem – and for the sake of repeating myself here – with getting appointed: she has competition.

Obviously, New York Governor David Paterson has to consider another name in Andrew Cuomo, Attorney General for the State of New York, so it is not cut and dried just yet.  Before Paterson just names someone to the seat, I hope he considers the following:

• Experience.  To that end, advantage goes to Cuomo.  He has been in the political arena for some time as his current post as state Attorney General will indicate.
• Name factor.  While both are relatively known both within the state of New York and elsewhere, I personally do not feel that it should be a factor in the appointment.  Besides, just because your surname is Kennedy does not give you any form of entitlement.

Also bear in mind that Ms. Kennedy lives in Manhattan, which may give the indication that she may have New York City interests in mind should she be appointed; on the other  hand, Cuomo has worked at the state-wide level, so geographical favoritism does not apply here.  So again, I truly hope that Paterson thinks long and hard before he makes the appointment.