State Budget Authority Office issues Critical Review of WP Urban Renewal Agency

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WPCNR CITY HALL CIRCUIT. October 20, 2009: The New York State Authority Budget Office (ABO) has issued a report of its review of the White Plains Urban RenewalAgency (URA) dated September 21, 2009. It found that the URA has not been in compliance with filing and other (state) requirements. According to the report, the URA has agreed to complywith the ABO’s requirements and to review its staffing arrangement to assess “its appropriateness.”


Here is the text of that report, obtained from the ABO website:



The Authority Budget Office (ABO) is authorized by Section 27 of Chapter 766 of the Laws of 2005 (The Public Authorities Accountability Act) to review and analyze the operations, practices and reports of public authorities, and to assess compliance with various provisions of Public Authorities Law and other relevant State statutes. This includes rendering conclusions and opinions regarding the performance of public authorities and to assist these authorities improve management practices and the procedures by which their activities and financial practices are disclosed to the public.


The Authority Budget Office (ABO) is conducting a series of compliance reviews of public authorities that have not filed required reports with the State for 2007 and 2008. The White Plains Urban Renewal Agency (URA) was chosen for this review because it has not filed its Budget, Annual, Audit, Procurement, or Investment Reports.


The purpose of this review was to determine why the URA is delinquent with its reports. We also reviewed its structure and operations to determine whether the URA acts in other ways to promote accountability and transparency in the absence of filing its reports.


Background of Agency


The URA was authorized by Title 14, Article 15-B of General Municipal Law. The URA is comprised of a five member board including the Mayor and four other members appointed by the Mayor. As a public benefit corporation, the URA is a governmental agency separate and distinct from the City. We found, however, that the URA operates as an extension of City government and is treated as a component unit of the City. The City’s Commissioner and Deputy Commissioner of Planning, Commissioner of Finance and the Corporation Counsel manage and administer the URA’s programs. The City provides office space and supplies to the URA, and deposits URA funds in the City’s accounts, since the URA does not have a separate bank account. As of June 30, 2009 the URA had over $195,000 in available funds, and had received approximately $86,000 in revenue for the year. The URA has an annual operating budget of approximately $70,000 which is used to reimburse the City for staff salaries and other costs, and to pay County refuse and sewer district fees on all of the properties it owns. 2


The URA is an active participant in the City’s redevelopment projects. It has prepared six urban renewal plans encompassing various projects throughout the City that are aligned with the goals of the City’s Comprehensive Plan. The URA received federal and State grants to fund major downtown revitalization projects as part of the plans, and these grant funds are earmarked for projects as approved by the URA Board. The URA uses these funds to acquire property associated with these projects, with the expectation of recovering its costs when the property is sold. The URA currently owns ten properties, three of which are parking lots that generate revenue. The URA issued $4 million in bonds to acquire four of its other properties. This debt is backed by the City. The URA intends to retire the debt by the end of 2009 using proceeds from the sale of the properties.


Failure to Submit Reports


We met with the City’s Commissioner of Planning, who also serves as the Executive Director of the URA. Although the ABO had previously notified the Executive Director that the URA was subject to the Public Authorities Accountability Act, continued to provide regular notice that the URA was required to file statutorily required reports, and notified the URA that its reports were delinquent, the Executive Director claimed that she was unaware of the reporting requirements of the Act, and believed that the URA had satisfied its reporting obligations to the State by including the URA’s financial information in the City’s annual report to the Office of the State Comptroller. The Commissioner indicated that the URA’s reports will be submitted in the Public Authorities Reporting Information System (PARIS), beginning with the June 30, 2009 reporting year. We note that the URA enrolled in PARIS subsequent to our review and is in the process of entering data in PARIS as of the date of this report.


Accountability and Transparency Actions


We found that the URA appears to have appropriate procedures in place for the administration of its urban renewal plans. The URA has adopted by-laws and the meetings of the URA Board are open to the public, with meeting notices published and minutes recorded. Further, the URA engages in a public comment period for each of its urban renewal plans, and utilizes the public input to develop, adjust and carry out these plans. The Board adopts annual budgets for each of its projects as well as for URA operations, and reviews quarterly financial reports regarding the progress of ongoing urban renewal projects.


However, we found that the URA needs to improve the accountability and transparency of its operations as a public authority. The URA would be more accountable and transparent if it used its public web site to make information on its operations and finances readily available to the public. Since our review the URA has taken steps towards increasing transparency by posting detailed 3


information about its ongoing urban renewal plans, operating budget and most recent Board meeting agendas and minutes on its public web site.


The URA holds title to three parking lots which are maintained and operated by the City. The URA receives approximately $38,000 in annual revenue from these lots. We found however, that the URA has written agreements documenting this financial arrangement for only two of the three lots, and both of these are outdated. The agreements were established over 15 years ago and were with the White Plains Parking Authority, which has been dissolved since 2004. As a result of our review, the URA indicated that it will prepare new lease agreements for all three parking lots.


The URA also owns the land beneath the White Plains City Center municipal parking garage. The URA does not earn any revenues from the operations of the garage but is required to pay the County refuse and sewer district fees for this property. We believe that the URA should enter a formal agreement with the parking garage tenants to at least recover these fees.


Of more significance, at the time of our review the URA had 12 employees on its payroll, none of whom are assigned to work for the URA. Staff positions are approved by the URA Board which allows the City to avoid civil service hiring policies and procedures. These employees all work for the City’s Planning Department, administering the City’s Community Development Block Grants and low-income housing assistance (Section 8) funds. The City transfers a portion of the grant funds to the URA payroll account which is administered by the City.


We are concerned that this staffing arrangement is inconsistent with a legal opinion issued in 1978 by the Office of the State Comptroller (78-294-A). This opinion held that employees of an urban renewal agency may not be utilized to perform work for municipal departments, even if those services are reimbursed by the municipality. Based on the ABO’s understanding, this opinion would prohibit URA staff from performing work related to the City’s community development and Section 8 programs. The URA indicated that this matter has been referred to the City’s Corporation Counsel to assess the appropriateness of this arrangement, in light of the State Comptroller’s opinion

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Father Dunne Pleads Guilty to Stealing $432,000, In Return for Reduced Sentence.

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WPCNR WHITE PLAINS LAW JOURNAL. By John F. Bailey. October 20, 2009: At  9:58 A.M. Tuesday morning,  Father Patrick Dunne, the  former priest of Our Lady of Sorrows since 1991, before he was removed by the Archdiocese of New York in December,2007 when an Archdiocese investigation discovered that over $400,000 (said to actually total over $2,000,000 according to Archdiocese sources),  was missing from the OLS parish,  strode into court to stand beside his attorney, Richard Ferrante.


 


Within twenty minutes, Dunne had left the court,  having plead guilty to Grand Larceny in the 2nd Degree, admitting he stole $432,000 from the church.


 



Father Patrick Dunne.


Photo, The District Attorney’s Office.


 


He will be sentenced January 12,2009. Judge Jeffrey A. Cohen said that incarceration for six months, plus 5 months probation, plus community service time on condition of continued treatment for the priest’s gambling addiction was under consideration.


 


The case was originally brought in June, 2009, when the District Attorney’s Office charged him with 2nd Degree Grand Larceny, (a felony with a maximum sentence of 5 to 15 years), stealing over $432,000 from parish accounts.


 


The District Attorney said that the priest diverted monies donated by parishioners for collection campaigns including the church building fund, a collection for Hurricane Katrina victims, and the weekly offertory.


 


The D.A.’s office said the priest accomplished this through writing and endorsing checks to himself and to “cash,” failed to provide an accurate accounting to church officials and “deliberately concealed the books and records relating to the parish development account.”



 Ferrante, Dunne’s attorney, after Judge Jeffrey A. Cohen of New York State Supreme Court opened the hearing, said, “Your Honor, we have a disposition in this case.”


 


Ferrante and Assistant District Attorney Nicole Gamble of the Economic Crimes Bureau approached the bench, while Dunne stood, clad in blue sport jacket,olive pants, blue-checked shirt and loafers. He stood with hands folded starting up in space, while the two attorneys conferred.


 


Last Thursday in a “lengthy” conference to determine readiness for trial, Judge Jeffrey A.Cohen had explored with the attorneys what Dunne faced if he proceeded to a full trial. Ferrante told WPCNR last week that Dunne would decide over the weekend what options he had. This morning, he took the Guilty plea as originally charged. 


                                      


After Judge Cohen and the attorneys were finished in front of the bench, the Judge stated that at the conference the judge had held last week with the attorneys, he had indicated to that he would sentence Dunne to “incarceration,” saying this morning to the court, the “incident”  involved $432,000, “a substantial amount of money,” “due to a gambling addiction.” Cohen said the sentence may be six months jailtime,  plus 5 months probation, plus community service,  under the condition he would continue treatment for the gambling addiction (which Father Dunne is undergoing now).


 


Cohen told the court that the church (Our Lady of Sorrows in White Plains), has been “made whole.”  The press officer for the Office of the District Attorney told WPCNR after the proceeding that the judge had indicated the Archdiocese of the City of New York had reimbursed the church for the amount Father Dunne had stolen.  As part of the guilty plea today, a judgment has been issued against Dunne in the amount of $432,000. Judge Cohen said Father Dunne “had the support of many people.”


 


Cohen has Dunne if he was pleading guilty to Grand Larceny in the 2nd Degree. Dunne grimaced and said, “Yes, Your Honor.”


 


Next the Assistant District Attorney read a series of questions which are a formality when a defendant pleads guilty. Dunne methodically answered, occasionally rocking on his heels.


 


Judge Cohen set sentencing for January 12, 2010, until which time, Dunne is free in his own recognizance. WPCNR advises that Judge Cohen has not passed sentence on Father Dunne officially, that will not take place until January 12.


 


Usually, when defendents on felonies plead guilty, waiving a trial and right to appeal, they are immediately remanded to jail in handcuffs. Father Dunne is free until sentencing January 12.

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Governor’s School Aid Cut Takes Away $1.3 Million from White Plains School Distr

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WPCNR SCHOOL DAYS. By John F. Bailey. October 16,2009: Governor  David Paterson’s extensive budget reduction plans announced yesterday, if enacted  as planned will cost the city school district $1,392,027, a 9% reduction in state school aid for 2009-10, not 4.5% as stated in the Governor’s news release, according to Fred Seiler, Assistant Superintendent for Business.


Seiler said that the school aid cuts are on a sliding scale with wealthier school districts paying 9%, and they include Harrison, Mamaroneck, Eastchester and Rye, according to a printout Seiler received Friday morning from the state. He said for example that while White Plains may lose 9% of its $13,736,444 the state said the district would receive this fiscal year, while Mount Vernon School District would lose only 3.5% and Yonkers 2.88%.


WPCNR estimated the district would lose 4.5% or about $500,000 based on the Governor’s news release, but this is not the case. Seiler said the district first found out about the proposed cut Friday morning. He said the district would do a few “what if” scenarios and “monitor” the situation. He said the bulk of the state aid is not paid until the spring, and that it is usually used to pay the school district share of the Teachers Retirement Fund payment in late fall, which this year is $7,030,535.

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Priest Accused of Looting OLS of $432,000 Considers Taking Plea: Attorney

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WPCNR WHITE PLAINS LAW JOURNAL. By John F. Bailey. October 16, 2009 UPDATED (In italics) 3:45 P.M. E.D.T.: The Law Clerk for Judge Jeffrey A. Cohen of New York Supreme Court reported to WPCNR Friday morning that Father Patrick Dunne, formerly pastor of Our Lady of Sorrows parish in White Plains, charged with one count of 2nd Degree Grand Larceny, will return to Judge Cohen Tuesday, October 20 at which time the matter will “go to a hearing” or Father Dunne “will take a plea.”


Powell said the conference with Judge Cohen with Dunne’s attorney was lengthy and took place privately Thursday.


WPCNR has contacted the District Attorney’s office and asked whether Dunne has been offered a lesser charge in return for pleading guilty.


Richard Ferrante, the attorney representing Father Dunne, confirmed to WPCNR that the District Attorney has offered a plea bargain. He told WPCNR today that on Tuesday his client would either accept the offer or go to trial, with jury selection beginning Wednesday. He said he was not at liberty to discuss the terms of the plea bargain, and that Tuesday, “all would become clear.”


Father Dunne is accused of stealing over $432,000 from Our Lady of Sorrows over six years from January 1,2002 to December 30th, 2007. Dunne is accused of “diverting monies donated by parishioners for several collection campaigns including: the church building fund, a collection for Hurricane Katrina victims, and the weekly offertory received by the church for general church operations, and used the money for his personal expenses and recreation (Editor’s note: allegedly gambling) without the permission or authority to do so.” The Second Degree Grand Larceny charge carries a maximum of five to fifteen years in state prison.

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Governor Proposes Chilling Current Year Budget Cuts –Affecting City and School

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WPCNR ALBANY ROUNDS. From the Governor’s  Press Office (EDITED) October 16,2009 UPDATED 8:02 A.M. (UPdates in Italics) UPdated 5 P.M. E.D.T. (in Red Italics): Governor David A. Paterson today outlined a two-year, $5.0 billion Deficit Reduction Plan that would eliminate the State’s current-year budget gap without raising taxes, as well as institute major structural reforms — such as Tier V pension reform and a State spending cap — in order to improve New York’s long-term fiscal health.


Of interest to the city is the Governor’s proposed slashing of $67 Million  in the Aid & Incentives to Muncipalities program. The city is  scheduled to receive $5.9 Million in AIM cash in its 2009-10 fiscal year. A portion of that appears to be in jeopardy. The Gannett Albany News Bureau reporter , Joseph Spector reports this morning the AIM cut is expected to cost White Plains $471,890. As of 5 P.M. Friday, the Mayor’s Office has not confirmed this.


The White Plains City School District  stands to lose $1,392,027 in promised state aid, not $500,000 as first estimated based on a 4.5% cut as first reported in the Governor’s news release WPCNR has learned.  According to the Assistant Superintendent for Business for the City School District, Fred Seiler, the governor’s proposal plans to cut 9% of state aid not already paid, requiring larger cuts in aid to wealthy districts than the cuts less-wealthy districts will have to face. The White Plains City School District is scheduled to receive $13,736, 444 in state aid in its present-running fiscal year. A 9% cut will cost, if enacted, $1,392,027 in aid, Seiler said late Friday afternoon.



“The $500 million in agency spending reductions I announced earlier this month represented an important first step, but I cannot eliminate this substantial deficit without the cooperation of my colleagues in the Legislature,” Governor Paterson said. “During a time of uncommon difficulty, we need to work together for the common good and enact a consensus plan that helps us avoid the severe consequences faced by other states that failed to swiftly address their budget problems. This will mean hard and painful choices, but that is exactly the type of leadership New Yorkers deserve from their public officials.”




Governor Paterson’s two-year $5.0 billion Deficit Reduction Plan (DRP) would have a current-year impact of $3.0 billion in 2009-10 and a recurring impact of $2.0 billion in 2010-11. Over the State’s five-year financial plan period, it would produce cumulative savings of $9.3 billion to help continue addressing the State’s long-term structural deficit.

Major components of the plan include the following:

Across-the-board Spending Reductions (2009-10 Savings: $1.8 billion; 2010-11 Savings: $2.0 billion)

The largest component of the proposed DRP is $1.8 billion in current-year, across-the-board spending reductions. These include the $500 million in across-the-board administrative agency spending reductions Governor Paterson announced on October 6, as well as $1.3 billion in additional across-the-board current fiscal year reductions to local assistance spending.

The local assistance reduction of $1.3 billion would represent a 10 percent cut to all remaining, undisbursed local assistance spending in the current fiscal year — with three main exceptions. First, reflecting the fact that education is a priority for the governor, the reduction to School Aid would be limited to 4.5 percent of remaining, undisbursed payments for the current fiscal year (an annualized impact of 3 percent based on projected Enacted Budget 2009-10 full school year spending). Second, reductions to the STAR property tax relief program would be excluded. Third, cuts that represent direct mandated cost shifts to local governments would also be excluded.

Specific 2009-10 programmatic impacts as part of this $1.3 billion across-the-board local assistance reduction include the following: a $480 million State fiscal year cut to school districts ($686 million on a 2009-10 school-year basis); a $287 million cut to Medicaid; a $184 million cut to other health and mental hygiene programs; a $28 million cut to social service programs; a $67 million cut to Aid and Incentives to Municipalities; a $125 million cut to transportation programs; a $62 million cut to higher education programs; as well as other reductions.

The School Aid reduction would be structured progressively based on local fiscal capacity, student need, and residential tax effort. Prior to proposed mid-year actions, enacted 2009-10 school year School Aid was projected to total $21.9 billion, an increase of $415 million or 1.9 percent from 2008-09. After enactment of the DRP, overall 2009-10 school year School Aid would total $21.2 billion, a decrease of $271 million or 1.3 percent from 2008-09. When federal stimulus aid through the Title I and IDEA programs is included, however, support for school districts in the 2009-10 school year would total approximately $22 billion, a $546 million or 2.5 percent increase compared to the prior year.

In recent years, School Aid has increased dramatically. Even after implementation of the DRP, 2009-10 school year School Aid spending of $21.2 billion would still represent a $6.8 billion or 47 percent increase compared to 2003-04. Moreover, based on census data, New York spends more total per pupil than any other state and 63 percent above the national average.

Tax Penalty Forgiveness Program (2009-10 Savings: $250 million; 2010-11 Savings: $100 million)

The Tax Department would partially forgive accrued penalty and interest on long-outstanding State tax liabilities in order to encourage individuals to resolve unpaid claims. For assessments between 3 years and 6 years overdue, penalties would be reduced by 50 percent. For assessments overdue more than 6 years, penalties would be reduced by 80 percent. This initiative would provide much-needed revenue to the State, while helping taxpayers repair their credit histories and avoid costly legal action. It is expected that the limited forgiveness period would take place from January 15 to March 15, 2010. Local governments would receive a fiscal benefit of approximately $84 million from their share of these previously uncollected taxes. Recurring savings would accrue due to expanded voluntary compliance efforts in the out-years.

Additional Administrative Savings (2009-10 Savings: $295 million; 2010-11 Savings: $0 million)

The plan includes $295 million in further administrative actions, such as more aggressive Medicaid Fraud targets ($150 million), further debt management to lower State interest costs ($100 million), and an upward reestimate of the amount of revenue that will be collected from the increased 18-A utility assessment enacted in the 2009-10 budget ($45 million).

Battery Park City Authority/Dormitory Authority Transfers (2009-10 Savings: $326 million; 2010-11 Savings: $0 million)

Under this proposal, the State would receive $300 million in excess revenues from the Battery Park City Authority (BPCA) and $26 million from the Dormitory Authority from a transfer to the General Fund.

Regional Greenhouse Gas Initiative (RGGI)/EPF Transfers (2009-10 Savings: $100 million; 2010-11 Savings: $0 million)

This proposal would transfer $90 million in RGGI proceeds and $10 million from the Environmental Protection Fund (EPF) to the General Fund. It is currently expected that RGGI proceeds through the end of 2009-10 will total $220 million, allowing the state to meet its $112 million commitment to the recently passed Green Jobs legislation, as well as this $90 million General Fund transfer. Additionally, it is fully expected that after implementation of the DRP, the State would still be able to meet its original 2009-10 EPF cash spending plan of $180 million, which is equal to record 2008-09 levels.

VLT Franchise Payment (2009-10 Savings: $200 million; 2010-11 Impact: -$145 million)

The DRP assumes that the winning Aqueduct Video Lottery Terminal bidder will make a franchise payment of at least $200 million in the 2009-10 fiscal year. The previous financial plan assumed that this payment will be made in 2010-11.

Long-term Structural Reforms

In addition to the savings actions necessary to address the immediate issue of closing the State’s mid-year deficit, the DRP would also include several long-term structural reforms to help lower taxpayer costs

Tier V pension reform, which would produce savings of nearly $50 billion over the next thirty years for State and local governments, is a key component of Governor Paterson’s agreements with CSEA and PEF to avoid State employee layoffs. As such, pension reform will be a key component of the DRP.

Additionally, the DRP includes Governor Paterson’s proposed cap on State spending to help address New York‘s long-term structural deficit. This initiative would limit State operating funds spending increases to the average inflation rate over the previous three years.





 

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Comptroller Expresses Alarm at Plunging State Revenues

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WPCNR ALBANY ROUNDS. From the Office of the New York State Comptroller. October 16, 2009 (EDITED): New York State Comptroller Thomas P. DiNapoli said the state faces a growing cash deficit in its current budget as monthly revenue collections for the State of New York last month again fell short of projections, according to the September Cash Report . DiNapoli said the current deficit could reach $4.1 billion if present trends continue without action. DiNapoli warned that the State may need to borrow from the Short Term Investment Pool (STIP) sooner than expected to meet its General Fund cash flow needs.


DiNapoli’s September Cash Report indicates total General Fund tax revenue was $18.1 billion, $634.5 million below projections for the first half of the year and $3.6 billion less than the same period last year, primarily due to weak Personal Income Tax collections. While the General Fund ended the first half of the year $710 million over Financial Plan projections, that difference is primarily attributable to the timing of certain payments.


DiNapoli said that in the absence of a solution to this year’s deficit, the State may face a deficit of nearly $9 billion in 2010-11 fiscal year. Additionally, the State cannot rely on new federal revenues or increased taxes as an easy solution to the State’s long-term budget imbalance.


 


“I said in April that this was a ‘buy time’ budget, and now time is up,” DiNapoli said. “This budget simply has not held together. Most New Yorkers understand they cannot spend more than they make. The state needs to adopt that kind of common sense. If we stay on the current path, New York will run out of cash. This situation must be addressed.


“New York is still feeling the effects of the recession and while there are some encouraging signs in the economy and the stock market appears to be recovering faster than expected, we can’t count on the windfall profits the state has relied upon in the past. The state’s revenue base has changed, employment is down, and we just can’t depend on Wall Street to generate the revenue needed to paper over the state’s structural budget gaps as it had before this downturn.


“The Division of Budget projects a $3 billion deficit in the current budget. But based on current trends, the end-of-year gap could be more than $4 billion if no action is taken. The spending promises made in the spring are not sustainable in the face of falling revenue. The tough decisions that should have been made in April will be much harder now that half the fiscal year has passed, and we can’t just push the problem off until next year.”



The DiNapoli report made specific findings, including:



  • Through September 30, General Fund receipts, including transfers from other funds, of $25.2 billion were $621.8 million below Financial Plan projections and nearly $4.2 billion lower than last year for the same period.
  • Total tax collections through September 30 were $18.1 billion, down $3.6 billion, or 16.7 percent, from last year and $634.5 million below projections for the first half of the fiscal year. Year to date General Fund Personal Income Tax collections were $11.1 billion, roughly $605.7 million below projections updated in July.
  • Year-to-date consumption tax collections were $4.1 billion, nearly $298 million below collections from the same period last year and $33.6 million below projections. Within this tax category, sales tax collections within the General Fund are $321.2 million or 7.9 percent lower than last year.
  • Year-to-date business tax collections were $2.4 billion, $3.1 million lower than collections for the same period last year, and $40.8 million below Plan through the first six months. Offsetting these shortfalls, miscellaneous receipts were $1.7 billion, $667 million above collections from last year, and $202.3 million higher than projected. This includes $602 million collected from utilities from the temporary utility surcharge enacted in the 2009-10 budget. Other factors in the positive variance include $43 million in higher than anticipated abandoned property receipts and $33.5 million from settlements for auction rate security cases and insurance companies.
  • General Fund spending, including transfers to other funds, was $24.7 billion, $1.8 billion, or 6.7 percent, less than last year through September 30. The decline in spending was mostly due to costs for general state charges (down $602.1 million primarily due to the timing of payments) and Medicaid (down $1.1 billion – reflecting federal stimulus Medicaid payments made from other funds). These declines were offset by increases in education spending (up $703.2 million) and other health and environment spending (up $212.5 million). Including transfers, General Fund spending was more than $1.3 billion below projections.
  • All Governmental Funds receipts through September 30 of $58.7 billion were $2.4 billion below projections and $660.1 million higher than last year for the same period, primarily due to federal receipts. Total tax collections were nearly $27.3 billion, down $5.1 billion, or 15.9 percent, from last year and $738.7 million below projections. Federal receipts increased by nearly $3.6 billion from last year, but were nearly $1.9 billion lower than projected. Miscellaneous receipts through September 30 were $10.7 billion, $2.2 billion higher than collections for the same period last year, primarily due to the receipt of public authorities’ bond proceeds to reimburse the state for capital spending that has already occurred and $602 million in new utility assessment revenue. Miscellaneous receipts were $183.4 million higher than projected.
  • All Governmental Funds spending through September 30 was $59.6 billion, $2.7 billion, or 4.8 percent, more than last year for the same period, primarily due to increases in Medicaid spending ($3.5 billion or 21.8 percent), and education ($930 million or 7.3 percent). These increases were offset by lower spending for general state charges ($908.3 million), transportation grants ($542.2 million), non-personal service spending ($387.2 million) and other social services spending (down $332.1 million). All Funds spending was $2.6 billion below projections.

The state’s finances are generally broken down by two main categories: General Fund and All Governmental Funds. The General Fund is the major operating fund of the state and accounts for all receipts that are not required by law to be deposited into another fund. All Governmental Funds includes general, special revenue, debt service and capital projects funds, as well as funds from the federal government. DiNapoli’s monthly cash report compares state finances against the same time period last year and the state’s current year Financial Plan.


To view the report, visit: http://www.osc.state.ny.us/finance/finreports/cash/monthly/september09.pdf.

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White Plain Unemployment 7%. County, 7.4%. Hudson Valley Jobs Dwindle

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WPCNR MAIN STREET JOURNAL. From Johny Nelson, New York State Department of Labor, White Plains. (Edited) September 15, 2009:  There were 2,200 persons officially unemployed in White Plains of the 31,400 White Plains workforce,  at the end of September giving the city a 7% unemployment rate among residents. That is up from the city rate of 6.8% in August. The city has see sawed from 6.1% unemployed in January to 7% in September approaching its highest level of the year of 7.1%(in June). To see the trends for the city, go to http://www.labor.state.ny.us/workforceindustrydata/laus.asp


Westchester County, according to the New York State Department of Labor showed 36,500 residents unemployed out of a work forceof 492,500, an employment rate of 7.4%, also approach the June highpoint of unemployed 7.5%. To see the County trend go to http://www.labor.state.ny.us/workforceindustrydata/laus.asp


The Regional economy continues to weaken as evidenced by the ongoing deterioration in the job market. Private sector employment declined by 2.1 percent as the area shed close to 16,000 jobs. The region’s private sector employment continued its downward spiral, but this month’s job numbers showed slight improvement. Albeit small,  it is still welcoming news, considering how bleak the job market has been in recents months.


Private sector employment in the Hudson Valley decreased by 15,500, or 2.1 percent, to 740,400 for the 12-month period ending September 2009. 

 

Employment gains were limited to educational and health services (+4,500). 

 

The greatest job losses in the region were recorded in trade, transportation and utilities (-5,300), manufacturing (-3,800), professional and business services (-3,700), leisure and hospitality (-2,800), natural resources, mining and construction (-2,000), information (-1,400), and financial activities (-900).  The Government sector shed 1,600 jobs over the year.

 


 

 

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State: City Sales Tax Revs Plummet 26% in September– Down 18% Y to Y

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WPCNR QUILL & EYESHADE. By John F. Bailey. October 15,2009 UPDATED 5:07 P.M. E.D.T.: The New York State Department of Finance reported to WPCNR today the City of White Plains sales tax revenues, a staple of the city budget, are down 18 % from the first quarter of 2008.


Sales Tax receipts for White Plains declined 26% in September completing the first quarter.


The city tax coffers received $10,084,637 through the first three months of the 2009-10 fiscal year (July, August, September)  the month of September compared with $12,337, 393 in the July, August and September of 2008.


In the last fiscal year, ending June 30, 2009 the city collected $46.3 Million in sales tax in 2008-2009. If the present trend continues to hold at 18% off in sales revenues, with the city collecting the same sales taxes in the next three quarters as they did last year, the city will collect $38 Million in sales tax — creating a budget deficit WPCNR projects at $8.3 Million in sales tax revenues alone.


If the city is to equal the sales tax projected for this fiscal year, $47,350,000, the city needs to generate $12.4 Million in sales tax each quarter ($37.2 Million). In the last six years, the city has only earned $12.4 Million in a quarter once and that was in the first quarter of 2008, when the  sales tax was increased1/4%.


Gina Cuneo-Harwood, City Commissioner of Finance told WPCNR she did not anticipate an $8.3 Million fall in the sales tax, and stayed with her forecast of a $2.3 Million  decline in the sales tax she gave the Common Council in her last meeting on the budget.


Tom Bergin of the New York State Department of Taxation and Finance, noted the 26% drop, and checked i8nto it for WPCNR. Mr. Bergin told WPCNR: “It looks like that negative 26% number for White Plains (in September) is related to sagging economy in the retail and technology sectors.

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Appellate Court to Hear County Challenge to Hockley’s Placement on Ballot Oct.20

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WPCNR CAMPAIGN 2009.  October 13, 2009: WPCNR has learned from informed sources that oral arguments will be heard at the New York State Appellate Court, Second Department in Brooklyn on the Board of Elections-Glen Hockley case in which the Westchester County Board of Elections contended that Mr. Hockley should be removed from the Mayoral ballot in White Plains November 3 due to his failure to file a Certificate of Acceptance as required by the Board of Elections law.



Glen Hockley in closing statement at the Council of Neighborhood Associations Mayoral Debate Tuesday evening. The debates this week may be rendered irrelevant, mute or moot after the Appellate Court hears the Board of Election challenge to his right to be on the ballot due to failure to file a Certificate of Acceptance of his own candidacy. The decision may not come until one week before the election (October 27), given that the Appellate court would have to rule shortly after the October 20 hearing.


Previously, New York State Supreme Court Judge Francis Nicolai ruled the Board of Elections should reinstate Hockley on the ballot because, in Judge Nicolai’s opinion, Hockley by acquired some half the signatures on his positions himself, he had showed he wanted to run for the Mayoral position. Judge Nicolai also observed in his decision that the text of the Certificate of Acceptance postcard sent candidates only asks the candidates to advise of they are declining the nomination to run. The Board of Elections is contesting that ruling by appealing the Nicolai decision to the Appellate Court.


 

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Dunne Hearing on Trial Readiness Will take Place Thursday 11 A.M.

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WPCNR WHITE PLAINS LAW JOURNAL. By John F. Bailey. October 13, 2009 UPDATED  Octoer 15, 20009: The hearing on readiness to stand trial for Father Patrick Dunne, former parish priest of Our Lady of Sorrows in White Plains, is scheduled for Thursday morning in Judge Jeffrey Cohen’s chambers at 11 A.M. The hearing originally scheduled for Tuesday was postponed at the request of the court for scheduling reasons, according to the judge’s law clerk and will take place today in New York Supreme Court in White Plains.


At this time, the law clerk said the expectation is for the matter to proceed to trial.


Dunne is facing a charge of  one count of Grand Larceny in the Second Degree, a Class “C” Felony.


The District Attorney’s office alleges that over six years from January 1st, 2002 to December 30th, 2007, Father Dunne as parish prisetof OLS, stole over $432,000 from various parish accounts. He is allegedto have diverted money donated by parishioners for several collection campaigns including: the church building fund, a collection for Hurricane Katrina victims and the weekly offertory, using, according to the District Attorney, the funds for personal expenses and recreation without church permission to do so.


 

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