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.

More often than not, independents tend to make or break an election for either the Democrats or Republicans – more often than not the Democrats. Monday night found that the independent vote loomed big in Virginia and New Jersey as both states had gubernatorial seats up for grabs.

In Virginia, it was Creigh Deeds against Bob McDonnell while in New Jersey, incumbent governor Jon Corzine was up agaisnt Chris Christie; on a smaller scale but no less important was a Congressional seat in the 23rd District of New York state, which had Bill Owens going against the Conservative Party candidate Bill Hoffman.

The end results of the elections? Let’s just say that the GOP made some progress with the 2010 elections right around the corner. As was probably expected, McDonnell won big over Deeds in the Virginia race while Christie edged Corzine in the New Jersey gubernatoirial race. Meanwhile, Bill Owens – a Democrat – defeated Hoffman; and rest assured, the independent vote played no small part in the aforementioned candidates’ victories.

The Virginia and New Jersey election results will no doubtfeed into discussion about the electorate, the status of of the diverse grouping that sent Barack Obama to the White House and the limits – or lack thereof – of the influence that Obama has, especially on the Democratic Party’s base of support and on moderate current lawmakers that he needs to advance his legislative agenda.

Seems to me that Obama’s sphere of influence has been weakened as he personally campaigned for both Deeds and Corzine, yet that didn’t seal the deal as voters rejected them. Now on the election front, the losses by Deeds and Corzine magnify problems Obama faces as he looks to achieve his policy goals, attempt to protect Democratic majorities in Congress and expand his party’s grip on governorships in next year’s elections.

Interestingly enough, an Associated Press poll indicated that nearly one-third of voters in Virginia described themselves as independents while New Jersey nearly matched that percentage; these voters preferred McDonnell over Deeds by a 2-to-1 margin while Christie was preferred over Corzine by a smaller margin.

Voters, while most concerned about local andstate issues, kept in mind the national issues, such as the economy. Attitudes were shaped with to some degree by how people feel about the current state of the nation. And these voters’ attitudes will loom large.

One must remember that the stakes went up markedly as moderate districts and swing states such as Ohio, Colorado and Nevada will loom large during the 2010 mid-term elections. In 2010, most governors, a third of the U.S. Senate and all members of the House of Representatives will be on the ballots.

If anything came out of this, it would be that Obama’s influence is waning and that the independent vote will be of key importance when the 2010 election cycle arrives. And any future actions by Obama will greatly influence the election results come November of 2010.

This is only the beginning folks. Regardless of what the Democratic talking heads and pundits spin on the talk shows and news programs, it is safe to say that the GOP is on the comeback trail, and Virginia and New Jersey were just the beginning.

Photo: AP

The gift that keeps on giving, aka Barack Obama, has given the Republican Party some ammunition to use as the 2010 mid-term elections draw near. There is a governor’s race in Virginia, one in New Jersey and on a lesser scale – although no less important – is a Congressional seat up for grabs in the 23rd District of New York state.

In Virginia, Bob McDonnell is up against Democrat Creigh Deeds while Chris Christie is battling  incumbent governor Jon Corzine in a tight New Jersey race. Meanwhile, it’s two people – Democrat Bill Owens and Conservative Party (presumably third-party) candidate Bill Hoffman.

Currently, it appears thast McDonnell has breathing room against Deeds, Christie and Corzine are neck-and-neck while the Owens-Hoffman contest is too close to call. At first glance, it appears that this would be good news for the GOP, right? Not so fast.

While chances are good that McDonnell will unseat Deeds at election time, thing sare tenuous both in New Jersey and in New York’s 23rd District. And by tenuous, I mean in terms of support on the GOP side.

The Christie-Corzine battle is predicated on appearances by President Obama on Corzine’s behalf while Christie continues his statewide tour; on the other hand, the Hoffman-Owens battle bears watching only because of their support base. Notsomuch Owens but Hoffman as he is getting support from a pair of Republican heavyweights – Minnesota governor Tim Pawlenty and former Alaska governor Sarah Palin.

Because Hoffman is an independent and is getting support by the two aforementioned people, that has the makings of possibly making the GOP reevaluate their priorities as they look to reclaim seats within the House and hopefully retake the White House in 2012. Hoffman is a true conservative, whose values obviously resonate with both Pawlenty and Palin. I would suspect that is causing some hand-wringing within the GOP camp.

The fact that both support Hoffman lends credence to the argument that the GOP needs to have a common message for the Party to accomplish anything both in 2010 and 2012; I think we all that the Republicans are about family values, fiscal responsibility and some other virtues. Hoffman, while he espouses what the GOP believes in, also is a constitutionalist, meaning he adheres to what the Constitution states in all of the amendments that are on the document.

That’s where the GOP can gain ground by simply adopting tenets that are within the U.S. Constitution, along with their core values. And this isn’t rocket science, folks. any of you who have looked at or listened to anything that Palin has said know exactly what I am talking about. There’s a reason why she is so popular with the American public. Her ideals tend to resonate with the Amercian public, hence her popularity. And Governor Pawlenty isn’t much different than Palin.

One thing is for certain. The GOP needs to get rid of their splinter groups (moderate Republicans aka RINOs), otherwise, it is a given that Obama will get reelected as will a bunch of incumbent Democrats who are up for reelction in 2010. It is a fact that moderate Republicans more likely than not will “reach across the aisle” when legislation is up for debate and/or a vote within Congress.

And that has gotten us where? Absolutely nowhere, as John McCain is probably a prime example of what happens when you try to “make nice” with the Democrats. Come to think of it, you can probably throw Olympia Snowe and Susan Collins (both from Maine) into the mix, as well.

People, the bottom line is this: the Republican Party from the beginning, had a core value base predicated on the U.S. Constitution; over time, they for whatever lost their way. Small wonder as they drank a good deal of the Democratic koolaid; of course, we all know what happens when you drink that bitter liquid: your ideals get compromised, as a result.

The GOP simply needs to reprioritize, have a common message and theme while at the same time remain inclusive – to a degree. The party should adopt what Hoffman has been doing all along. It will benefit them both short- and long-term. And for the better. The meter is running, so they need to take action ASAP.

Jim sent this in:

As the price of cigarettes rises — in the New York City metropolitan area they now cost nearly $10.00 per pack or close to $100.00 for a carton of ten packs — and there are more and more government programs aimed at controlling sale and use, the U.S. and state governments are unintentionally creating a new organized crime enterprise. 

For example, the Bureau of Alcohol, Tobacco, Firearms and Explosives New York office last month arrested  two suspects who purchased untaxed cigarettes from undercover ATF agents while also selling the agents counterfeit New York State/City Tax Stamps.

Guang Ming Wang, age 58 and his son, Feishan Wang, age 30, both residents of Queens, NY, were arrested by ATF Agents without incident, meaning these were not criminals given to violence — at least not yet, according to NYPD officer Edna Aguayo.

Guang Ming Wang arrived at a prearranged “meet” location with $312,000 in cash and over 200,000 counterfeit tax stamps. As the cash and stamps were exchanged for a shipment of 12,000 cigarettes, he was immediately taken into custody. Feishan Wang was arrested at the same time in front of 144-05 29th Road in Queens. Both Wang’s have been involved in this particular illicit operation since June 2008, which included 12 undercover deals involving the purchase of untaxed cigarettes and counterfeit tax stamps.

During the nine month investigation, Guang Ming Wang purchased a total of 31,980 cartons of untaxed cigarettes for $846,000 and also sold ATF 103,950 counterfeit NY State/City tax stamps for $4,000. After the undercover sales of cigarettes, both Wang’s were observed by agents unloading the contraband at two locations in the borough of Queens. Federal search warrants were executed at both locations after the arrests.

The cartons sold to Wang contained a total of 319,800 individual cigarette packs, which at a price of $10 per pack had a retail street value of more than $3.1 million dollars in New York City. The counterfeit New York tax stamps are worth $4.25 each, bringing their street value to over $440,000. It is estimated that the defendants conspired to deprive New York State and City of at least $1.8 million dollars in tax revenue through their actions.

Ironically, while the ATF were arresting the Wangs, the U.S. House of Representatives overwhelmingly voted in favor – with a strong bipartisan majority for the second time since last July – of passing the Family Smoking Prevention and Tobacco Control Act (HR 1256).  

Many lawmakers and groups have long been working together to urge the passage of this bill that would provide the US Food and Drug Administration (FDA) regulatory control over tobacco products.

“So now we have two federal agencies involved in cigarette control. What’s next? SWAT teams tasked with going after ’smuggled’ cartons of cigarettes? The criminal code being revised to include citizens who buy cheap cigarettes from pushers?” quips a New York City detective.

“All we are doing is collecting more tax revenue and creating a new class of criminal activity,” he added.

“What we are witnessing is a slippery slope. What’s next? Replicating [New York City's] Mayor Bloomberg’s attack on trans-fats? Children denied cookies during cookie time in kindergarten? Slowly, the government is sticking their noses in citizens’ business, They’re trying to micro-manage our lives,” notes Mike Baker, a conservative political strategist.

“The Washington elite just love telling Americans they don’t want the government in their bedrooms, but apparently every other room in the house is up for grabs,” Baker quipped.

I think that a lot of New Yorkers would agree with me when I say that the state needs a true conservative running for the U.S. Senate. They just may get their wish as former New York governor George Pataki says that he is seriously considering a run for a Senate seat.

Pataki said on Monday that it isn’t like New Yorkers don’t already know who he is – that’s the name factor codespeak, folks – so he has had ample time to make a decision. Speaking of NY Senate seats, Charles Schumer and Kirsten Gillibrand’s seats are up for grabs in 2010, with Gillibrand’s considered the more vulnerable of the two.

According to Pataki – and he’s stating the obvious yet it is so true – the nation is headed in the wrong direction and needs to focus on creating more private-sector jobs. He also hinted that former New York City mayor Rudy Giuliani is weighing a run for NY governor.

We can only hope that both run – Giuliani for obvious reasons and Pataki just because he did a great job while governor of New York. Not to mention that Gillibrand isn’t exactly the cat’s meow in Democratic circles.

Jim sent this in:

Two terrorist suspects in Colorado and one suspect in New York were arrested on charges of making false statements to federal agents in an ongoing terrorism investigation, according to information provided to the National Association of Chiefs of Police’s (NACOP) Terrorism Committee. FBI agents in Colorado arrested Najibullah Zazi, 24, a resident of Aurora, Colorado who is a legal permanent resident from Afghanistan, and his father Mohammed Wali Zazi, 53, a resident also of Aurora and a naturalized U.S. citizen from Afghanistan.

In addition, FBI agents in New York arrested Ahmad Wais Afzali, 37, a resident of Queens, a borough of New York City. Afzali is also a legal permanent resident from Afghanistan.

Each of the defendants has been charged by criminal complaint with knowingly and willfully making false statements to the FBI in a matter involving international and domestic terrorism. Najibullah Zazi and Mohammed Zazi are scheduled to make their initial appearances on Monday in federal court in the District of Colorado. Ahmad Afzali is scheduled to make his initial appearance on Monday in federal court in the Eastern District of New York City. If convicted, each faces a potential eight years imprisonment.

“The arrests carried out are part of an ongoing and fast-paced investigation. It is important to note that we have no specific information regarding the timing, location or target of any planned attack. As always, however, the American people should remain vigilant and report any suspicious activities to their local authorities,” said David Kris, Assistant Attorney General for National Security.

According to affidavits filed in support of the three criminal complaints, the FBI is investigating several individuals in the United States, Pakistan and elsewhere, relating to a plot to detonate improvised explosive devices within the United States.

Records from U.S. Customs and Border Protection reveal that, on August 28, 2008, Najibullah Zazi flew to Peshawar, Pakistan from Newark International Airport in New Jersey via Geneva, Switzerland and Doha, Qatar. CBP records further reflect that Najibullah Zazi traveled from Peshawar to John F. Kennedy International Airport, in New York City, on or about January 15, 2009.

According to the affidavits, on or about September 9, 2009, FBI agents observed Najibullah Zazi depart his residence in Colorado in a rented car. He drove to New York City, arriving the following day, and spent the night at a residence in Flushing, Queens (“the Queens Residence.”)

On September 10, 2009, New York City Police Department detectives met with defendant Afzali, whom the NYPD had utilized as a source in the past. According to the affidavits, the detectives questioned Afzali about Najibullah Zazi and others and showed him photographs of Najibullah Zazi and others. Afzali allegedly told the detectives he recognized Najibullah Zazi and several of the men in the photographs.

According to affidavits, on September 11, 2009, defendant Mohammed Zazi placed a call to Afzali which lasted approximately 20 minutes. That same day, the FBI intercepted a phone conversation between Mohammed Zazi and his son, Najibullah Zazi. An affidavit alleges that, during the conversation, Mohammed Zazi told his son that he had spoken to Afzali who had informed him about being visited by law enforcement and shown photographs. Mohammed Zazi told his son that Afzali would call him and he advised his son to speak with Afzali “before anything else,” according to the affidavits.

In the midst of this phone call, Najibullah Zazi allegedly received a call from Afzali, who discussed his meeting with law enforcement the day before. According to a draft summary of the transcription, Afzali allegedly stated: “I was exposed to something yesterday from law enforcement. And they came to ask me about your characters.” Afzali also allegedly asked Najibullah Zazi about his last trip to Pakistan and added, “Listen, our phone call is being monitored.”

According to the affidavits, in another intercepted phone conversation on Sept. 11, 2009, Najibullah Zazi told Afzali that his car had been stolen and that he feared he was being “watched.” Afzali allegedly asked if there was any “evidence in his car,” and Najibullah Zazi said no.

That same day, FBI agents conducted a legally authorized search of Najibullah Zazi’s rental car, which was parked near the Queens residence. During the search, agents found a laptop computer containing  images of nine-pages of handwritten notes. According to the affidavits, the notes contain formulations and instructions regarding the manufacture and handling of initiating explosives, main explosives charges, explosives detonators and components of a fusing system. On September 12, 2009, Najibullah Zazi flew from La Guardia Airport in New York to Denver.

On September 16, 2009, FBI agents interviewed Najibullah Zazi in Denver. According to an affidavit, when he was asked about and shown handwritten notes regarding explosives found on his laptop computer, Najibullah Zazi falsely asserted that he had never seen the document before and stated he had not written the notes.

On September 17 and 18, Najibullah Zazi was further interviewed by the FBI in Denver. According to affidavits, Najibullah Zazi admitted in the interviews that during his 2008 trip to Pakistan, he attended courses and received instruction on weapons and explosives at an al-Qaeda training facility in the Federally Administered Tribal Areas, or FATA, of Pakistan.

The affidavits allege that, on September 17, Afzali was interviewed by authorities in New York where he falsely asserted in a written statement that he did not tell Najibullah Zazi or Mohammed Zazi that authorities had approached him seeking information about Najibullah Zazi. According to the affidavits, Afzali also falsely asserted that he never told Najibullah Zazi that they were being monitored on the phone and that he never asked Najibullah Zazi about evidence in his car.

The affidavits further allege that, on September 16, Mohammed Zazi was interviewed by FBI agents in Denver where he was asked whether anyone had called him and told him about his son’s activities and any trouble regarding his son. According to the affidavits, Mohammed Zazi falsely stated that he had never called anyone in New York other than his son and he had never received a call from anyone in New York. He allegedly revised his statement to say he had received one call from an individual who informed him that his son had missed his flight. According to the affidavits, Mohammed Zazi was later asked if he knew anyone by the name of Afzali and he said he did not.

These prosecutions are being handled by the U.S. Attorney’s Offices for the Eastern District of New York and the District of Colorado, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.

The investigation is being conducted by the New York and Denver FBI Joint Terrorism Task Forces, which combined have investigators from more than fifty federal, state and local law enforcement agencies .