1Q Sales Tax Steady.Mayor Examines Cuts w/o Council Input.Council Indifferent?

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WPCNR CITY HALL CIRCUIT. By John F. Bailey. September 30, 2008 UPDATED 12 Noon EDT, October 1, 2008. UPDATED 1:10 PM:  The city issued a news release  Tuesday declaring the sales tax collections by the city have started well and are meeting the expectations for July, August and September (WPCNR-estimated as $12.4M)  as of last week. The news release states that  Mayor Joseph Delfino is conducting meetings with city department heads to look at “creative ways to save expenses and maintain the level of service White Plains residents are accustomed”


 


WPCNR asked the senior Councilpersons Rita Malmud and Council President Benjamin Boykin last week if they felt the city should be looking at budget cuts for the present year in light of dire revenue shortfalls in the state. Neither responded.  WPCNR  repeated the questions after receiving today’s release as to whether they or any other councilpersons wanted  to be in on the meetings, had positions on spending cuts. Ms. Malmud finally responded Tuesday evening and WPCNR awaits Councilman Boykin’s response. As of noon, Councilman Boyking has not responded.


 


In today’s New York Times, a front-page article notes that muncipalities across the country are having difficulties finding financing for key projects, requiring many to cut back projects, and in New York City having to offer a higher rate of return on bonds costing the municpality more in interest payments. This raises the spectre that White Plains and the White Plains City School District will be facing higher debt service on any new issues in the future. You may read the Times report at http://www.nytimes.com/2008/10/01/business/01muni.html?_r=1&adxnnl=1&oref=slogin&ref=todayspaper&adxnnlx=1222876866-4HQ0uOmCqBKyIxM0R/80uQ


 


In the absence of city response to questions on how city obligations to the state pension fund might be affected by the market downtown, WPCNR spoke with Robert When of the State Comptroller’s Press who told WPCNR moments ago that there will not be an increase in state pension contributions for municipalities in 2009-10, however the market downturn in 2008, may be reflected in city pension fund obligations in the 2011-12 budget year — two years down the road. The lagtime, he said is that the Comptroller’s office has smoothed out contributions, establishing a floor contribution for all municipalities (4.5% of salaries) since 2003.





Ms. Malmud responded this evening  to that question by saying that the Budget and Management Committee will be meeting shortly.


 


Mr. Boykin the Chair of the Budget and Management Committee asked last week if he was going to convene his committee soon in light of the state revenue shortfalls widely lamented by Governor David Patterson, has not responded yet. We await Mr. Boykin, the Council President’s thoughts on city financial policy.


 


Malmud in a statement wrote “Budget issues will be first examined by the Budget and Management Committee.  I expect them to meet shortly. The Mayor has not sent me the press release you mentioned nor informed me of any planned review of department budget cuts.”


 


This would indicate that the Mayor had not invited key councilpersons to give input in a bipartisan fashion, or conversely, Ms. Malmud at least, nor any other councilperson had expressed concern about city spending to the Mayor.


 


WPCNR asked Ms. Malmud if she had any policy suggestions on how the city should approach the police, fire, teamster and Civil Service Employees Union contracts that expire this June.  


 


Malmud  wrote, “According to NYS law, only the Mayor can negotiate such settlements.  The Mayor has not chosen to consult with us on this matter.”


 


WPCNR asked Ms. Malmud about the possibility of the city financing the stalled LCOR affordable housing project at 55 Bank Street or borrowing for city municipal improvements now as possibly being attractive to the market, Malmud  issued this comment:


 


 “The whole national economy and lending framework is in a major state of flux now.  Although White Plains has an excellent credit history, we will be impacted by national economic and lending issues. In another week or two, we should have a better idea of what direction those national issues are heading and the likely impact on us.”


 


Project Money Issues


 


Ms. Malmud asked about  the Horton’s Mill request for the city to cover their cost overruns since the county has refused to do so said  did not indicate how the council feeling on the Horton’s Mill request, though at the time, the council acted reluctant to pay the $581,140 dollars.


 


Regarding the stymied LCOR project, Malmud rejected the notion that LCOR was going to ask the Urban Renewal Agency to finance the project, a $320 Million project, which the council approved being built in stages last month


 


She explained, “LCOR – To my knowledge, LCOR has not asked the City to finance their project and have stated that they already have financing in place for 55 Bank Street.”


 


On several sensitive budget projects, Ms. Malmud wrote these comments:


 


“ Mortgage tax revenue – has already been estimated for this current fiscal year ($4.1M).  We have many months to go before we can determine whether that is an accurate estimate.”


 


“Pension fund contributions “demanded by the state” – is entirely up to the state and White Plains will respond as is “demanded.”


 


WPCNR since speaking with Ms. Malmud, has learned from the State Comptroller’s Office that the city pension fund contributon for 2009-2010 is actually down, a bit of good news, and will not be affected or reflect stock market declines of 2008 until the city’s 2011-2012 Budget year.


 


Asked to clarify whether she wanted the city to cut, had suggestions as to how to cut, or  was leaving all spending adjustments to the Mayor, and any thoughts on what  general objectives (length, benefit adjustments, increase targets)  the union contracts ($100 Million of the $161.5 City budget this year) might achieve, Ms. Malmud declined to comment.


 


WPCNR is waiting for the city to comment on the mortgage tax trend, the effects of the current credit markets on city municipal offerings,  and of course, WPCNR awaits Councilman Boykin’s take on what matters he sees the Budget and Management Committee taking up in regards to current budget cuts,  when his committee is going to meet, and of course the looming 2009-2010 Budget.


In today’s New York Times, a front-page article notes that muncipalities across the country are having difficulties finding financing for key projects, requiring many to cut back projects, and in New York City having to offer a higher rate of return on bonds costing the municpality more in interest payments. This raises the spectre that White Plains and the White Plains City School District will be facing higher debt service on any new issues in the future. You may read the Times report at http://www.nytimes.com/2008/10/01/business/01muni.html?_r=1&adxnnl=1&oref=slogin&ref=todayspaper&adxnnlx=1222876866-4HQ0uOmCqBKyIxM0R/80uQ


Decade of Growth


It pointed out that the property tax base has grown with 7,000 new residents, most of whom are condominium owners. City Hall notes the residential tax base has been increased and the commercial tax base has increased more. The office vacancy rate has declined from 34% to the point where Robert Weisz of the RGW Group is planning to build the first new office building in the city in 20 years (at 1133 Westchester Avenue.)


The release reports real value property in the city, residential and commercial has grown from an estimated $4 Billion in 1999 to $11 Billion as of July 1. The city blames “the bizarre formula” of the New York Equalization Rate for the city being “inundated” with commercial tax reductions.


Retail Growth the news release reports, brought about by the Mayor’s Economic Development Plans has created a “boom in the retail base, making it much more diverse.” The report says “vacant stores are filled with a thriving business that continues to do well. As late as last week we are being told that our sales tax numbers are still holding steady.”


Sales Tax Solid


WPCNR notes that with the ¼% increase in the sales tax enacted, that would mean the first quarter is projected to be about $13 Million, when the current 5.3% inflation rate is applied and the extra ¼% sales tax increae is figured in. (Last year the city received $10,917,000 in the first quarter with a 2 cent sales tax which was increased to 2-1/4 cents.)


 Now if the city is equaling that $10.9 Million pace of last year,  then the economy may be hurting the city sales tax handle. The rationale for this being the city should get a 5% lift from inflation, plus a 12% lift from the extra ¼% sales tax  as well as the sales tax, if sales are steady.


The city commented on the failure to get more in sales tax than Albany than it did, writing “in order to relieve property tax payers of any additional burdens the Mayor proposed a half percent sales tax increase. This was cut to a quarter percent by Assemblyman Adam Bradley and the Democratic Common Council,” the release said.


The release also noted, that the Mayor “voted against this year’s budget because of the Council’s cuts to the reserve for financing. This is the very fund the city relies on during turbulent times.”

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Sen Clinton: Senate to Pass Bailout First. Promises Hearings on Wall St Role.

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WPCNR QUILL & EYESHADE.  By John F. Bailey. September 30, 2008 UPDATED WITH TRANSCRIPT OF OPENING REMARKS, 3:10 P.M. EDT: In a 30-minute conference call with reporters from across the state today, Senatory Hillary Clinton  said Senator Harry Reid is prepared to lead the U.S. Senate in passing yet a third version of the Billion Dollar Bailout bill, the process to begin when congress returns to work tomorrow. She said, “It is a necessity to stabilize our economy.”


She  said the public had to get past the need to punish those whose business practices lead to current world financial crisis, and she promised both houses of congress would hold hearings bringing principle players  involved in the recent waive of failed institutions to explain themselves and determine their roles, an the practices alleged to have  created the “Great Crash of 08.”


“If nothing is done (the bailout not being passed) small businesses may not be able to keep drawing loans to meet payroll and inventory. They are being stretched to the breaking point. Students are having trouble getting family college loans. The credit crisis cannot on its own, correct. Commerce could grind to a halt. ” She told reporters.


Clinton said if nothing was done, more people would take money out of banks which, she said, “compounds the credit problem.” She said she understood “the deep skepticisms.”


“I was against the original plan, but we have negotiated a better bill.” She said the bill makes the bailout not unlimited, taxpayer is protected, there are now checks and balances and regulatory oversight mechanisms,  and accountability included in the bill.


“There’s not one person in congress who believes this bill is perfect…There is no choice.”


Senator Clinton said a provision might be added to the bill to free more actual mortgage money to restore mortgages, as a way to save the bill.  She also called for a stimulus to housing sales as was done in the Great Depression of the 1930s, which she said she would introduce in the Senate in a separate bill but did not say when. She emphasized the tax credit concept should not be included in the “Bail Out Bill.”


 







Senator Clinton: “Good morning everybody.  Thanks for joining this call today. Obviously there’s a tremendous amount of concern and even anxiety in the country about what we need to be doing and whether we will be able to reach an agreement about the action we should take. 


 I think it’s very important to stress, first of all, that if nothing is done, we will see small businesses that cannot continue to keep their doors open because they cannot get the loans that they need for inventory and other important business expenses.  Even larger businesses I’m hearing from are stretched to near the breaking point.  A lot of our businesses depend on credit every single day, and they’re finding that credit very difficult if not impossible to find and afford.



But on the personal level, students are going to have increasing trouble finding college loans.  Families are having difficulty with the daily expenses and certainly with their housing costs as home values drop. And we know that this credit crisis that we are in the midst of cannot on its own correct.   


It sounds dire, but there is a risk that commerce could grind to a halt. Banks are already unwilling or unable to lend to each other. We’ve got investors parking money into Treasury bills that are yielding next to nothing because they think it’s the only safe investment right now. 



With the domino effect of banks failing, people are taking money out of their banks, looking for a safe place, like Treasuries, or frankly, you know, under their mattress, which then compounds the problem.   


I understand the deep skepticism surrounding the proposal, and clearly I was against the original plan sent over from the Treasury because it was a blank check giving Treasury virtually unlimited powers to do whatever they saw fit.



But we have negotiated through the Congress on a bipartisan basis a better alternative that installed taxpayer protections, asserted oversight and accountability, and came up with the checks and balances we should have had rather than the blank check. 


This bill that was voted on yesterday is a compromise among the Bush Administration, the Democratic and Republican leadership.  You’re not going to find anyone who believes that this bill is perfect.  Many of us regret deeply and very much resist having to bail out those who we believe contributed mightily to the problems we’re in.  But there is no choice.



I believe that the companies benefiting from the taxpayer dollars should be asked to repay their debts to the Treasury or give taxpayers more of a share of any future profits.  I continue to advocate for a plan to rewrite unworkable mortgages to stop the inevitable cascading of defaults and foreclosures that will come as interest rates reset.  For two years I’ve proposed steps to freeze adjustable mortgage rates and temporarily halt foreclosures and reset mortgages at risk of default and foreclosure. That’s why I continue to propose a mechanism to do that, and it is modeled on the one we used during the Great Depression.   


Obviously people are deeply concerned about how we’re going to take action that will be effective.  I think it’s important that we go at the root of the problem, which is the continuing loss of home values and mortgages that are unaffordable for homeowners. Now there are other steps we should take.  The housing market is caught in a vicious cycle of too much supply, too little demand, sinking housing prices, rising defaults and foreclosures.  There are other steps we can and should take to try to get demand up again in an affordable way.



But the American people need to understand the benefits of this unprecedented market intervention versus the cost of inaction. There are ways we can continue to try to improve the tools available to the government so that Americans are reassured that this is not either a blank check to the Bush Administration or a blank check to Wall Street, but in fact it is not only necessary for us to do but that the economy will benefit and taxpayers will be protected. 


But we cannot let the perfect be the enemy of the good, or in this case the enemy of what’s necessary.  We certainly won’t be able to spur the housing market if our financial institutions are unwilling to lend to homeowners, and if banks stop lending to businesses, and banks refuse to lend even to each other, which we are seeing. 



So we have to go back and in a bipartisan fashion, face up to the difficult decisions ahead of us.



We have to take action and I know that New York is particularly affected by our failure to act, which is why I told the Long Island association yesterday morning that although I despise the position that we find ourselves in as a country, I would have voted for the package.



We have tens of thousands of people in New York dependent on the financial services industry.  We have thousands of people I’m hearing from around our state who cannot get the credit they need to stay in business. We’ve got tens of thousands more who are in businesses that are dependent directly and indirectly on financial services.  Our city and state revenues will be adversely affected, which will have a ripple effect in terms of the services that people need.  We’ll see the unemployment rate go up and I am deeply concerned that this package be passed this week in order to put the brakes on what is not just a market and a credit crisis, but a mounting economic crisis. 



I believe, too, that the Senate would be ready to act.  I know Senator Reid has said on numerous occasions that he believes the Senate has the votes to pass the bill and is prepared for the Senate to go first, and I certainly am prepared to stand up and be counted if we do.  But I hope that everyone will take a deep breath.  The Congress is not in session because of the Jewish New Year, so everyone has a chance to think hard and maybe cool off a little from the emotion and the pressure of the last two weeks.  And we get back to Washington starting tomorrow and do what we have to do to try to stabilize not only our nation, but the entire world for the benefit of everyone.”


 

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City Investments Holding Steady as Forecast in Face of Long Market Decline:City

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WPCNR CITY HALL CIRCUIT. By John F. Bailey. September 28, 2008 UPDATED  11:59 A.M.: On a day when the Dow Jones Industrial Average declined 777 points, the  largest decline in the market since 1987, and when inflation is taken into account, almost equaling the dollar value lost  in one day  that was lost by investors in the five days of the 1929 Stock Market Crash, (October 24 through October 29),  the City of White Plains which has budgeted about $1.5 Million in interest income into the 2008-2009 budget of $161 Million, said the city funds investments appear in good shape at this time.


 


Monday,  White Plains Chief Financial Officer, Gina Cuneo-Harwood issued this statement: “There has been no changes in the Federal Fund Rates since May and the money is coming in as expected.  It is too early to tell what might happen.”


 


“Bailout Monday,” the day when congress was supposed to “bail out” the financial crisis of the last two months,  but did not,  is being called the largest one session decline in the history of the Index,  but it is equal only in decline when dollar value is considered. 


 


WPCNR notes that Monday’s  stock market decline  almost equals the 1929 Black Tuesday crash when inflation is taken into context.  The stock market lost $1.1 Trillion in stock value on Bailout Monday, roughly the outer limits of what the bailout was predicted to require.


 


The $1.1 Trillion loss in vallue is 10 times the  5-day beating  started by the  October 24 through October 29, 1929  Black Tuesday, 79 years ago,  when the stock market, declined  69 points  from 299.6 to 230.7. That precipitated a decline in value by November of 1929 of $100 Billion 1929 Dollars.


 


Today, that $100 Billion in losses experienced in five days 79 years ago is equivalent when 79 years of inflation is taken into account  to $1.2 Trillion in 2008 dollars. That is just just 100 Million more than the trillion-one lost yesterday in the stock market.


 



WPCNR has also posed the same question through Westchester County Department of Communication to County Executive Andrew Spano, as to whether the Westchester County projection of $7.5 Million in investment income in their revenue budget was holding up, up, or down and by how much.


 


Mortgage tax, the county has previously disclosed and reported by WPCNR first two months ago, is down 30%.  The County budgeted $28 Million in mortgage tax in 2008. The City of White Plains budgeted  approximately $4 Million in mortgage tax.


 


Decline in projected figures affect the city in this way, according to the city’s previous Executive Officer, George Gretsas: for every million dollars of revenue decrease, the property tax would have to be increased 3% to make up the difference.


 


Sales tax figures for the first quarter are not in yet and are expected within the first 10 days of October. The City has budgeted $45 Million in sales tax, and expects to easily clear that in 2008-2009 due to the 1/4% increase in the city sales tax to 8-1/8 per cent, expected to add $5.6 Million to the city sales tax revenues. However, most of that $5.6 million surplus from the 1/4%  would be spent in the expected settlements to police, fire, teamsters and Civil Service Employees, if as expected wage increases of  4-1/2 to 5% are demanded and granted by the city.


 


The City, anticipating possible sales tax shortfalls due to a sluggish economy last fall had pushed the Democrat-controlled council and Assemblyman Adam Bradley for a 1/2% increase in the sales tax giving the city a base. That was denied by the Democratic Council, and Mr. Bradley was sent to Albany to request only a 1/4% increase.


 


The two senior members of the Common Council, Rita Malmud and Council President Benjamin Boykin have so far not replied to WPCNR’s question of whether the Common Council will convene and call for a look at current expenses with the Mayor to save more money out of the current 2008-2009 budget over the next three quarters of this fiscal year.


 


The School District is closed Tuesday, and WPCNR will be asking them Wednesday if they are contemplating going out early for municipal bond offerings, now gaining in attraction. (The School District needs to bond $16 Million to complete its construction projects and approximately  $10 Million for possible certioraris.) The question has already been posed to the city.


 

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Here Come the STAR Rebate Checks!

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WPCNR QUILL & EYESHADE. From Don Hughes. September 28, 2008: New York State Department of Taxation and Finance Commissioner Robert Megna announced today that the Department will begin to mail Middle Class STAR rebate checks the week of October 20th  to New York homeowners in White Plains who qualify for the 2008 Middle Class STAR Rebate Program, and you don’t have to apply for the checks this year if you received them last year.

 



Unlike 2007, most homeowners will not have to apply for this year’s rebate. If a household’s 2008 property information remains unchanged from 2007, no reapplication is necessary. These homeowners will get their checks automatically.

Property owners who did not apply in 2007, and homeowners whose property information changed during the past year, will have to apply. Applications to these households will also be mailed automatically beginning September 29.

Residents can access the Tax Department’s website at www.nystax.gov to find out when their checks will be mailed and the amount of the rebate they will receive. Information for senior citizens getting the Enhanced STAR rebate, and information for homeowners who need to apply for the 2008 program, can also be found on the website.

The maximum benefit for those receiving the Basic STAR rebate goes to upstate homeowners earning $90,000 or less, and New York City metropolitan region homeowners earning $120,000 or less. The benefit diminishes until a homeowner’s income reaches $250,000. Taxpayers earning over $250,000
are not eligible for the rebate, but continue to receive the STAR exemption on their school tax bills.

This year, rebates for Basic STAR recipients are subject to offset for debts owed to New York State agencies, the Internal Revenue Services, and certain other states.


Mailing date the week of: October 20

Combined incomes and cooresponding rebate amounts:
 
Up to $120,000 ==  $1,035.76 
Over $120,000  – $175,000 == $776.82
Over $175,000  – $250,000 == $517.88
Over $250,000 == $0
Enhanced == $1,180.43

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Pop Anthem for Presidential News Conference on Economy

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WPCNR Tin Cup Alley. (Satire) September 27, 2008: It’s too bad one of our famous crooners was not exumed in time  to sing this song penned by a former investment banker now turned composer as the opening act for  Monday morning’s Presidential address on the reaching of an agreement on the Bail-out now termed the “Buy-In.” President Bush could have used some backup, as he appeared alone this morning to read a statement.


 


 “It’s Congresscraft”


Words by Halsey Stewart Paine III


(With apologies to the original composer of WITCHCRAFT,Cy Coleman)


 


Those crisp new printed dollars in my wallet, honey…


Lovely windfall capital in hand 


That starts, hedge funds , banks IPAs, stocks  making mints of money


Building new houses, high rises, inventories grand


It’s  Congresscraft!


 


I’ve got a great use for it,


The markets so in need of it


Homebuyers craving it


What good would not distributing it do?


Cause it’s Congresscraft, lucrative Congresscraft


And although, I know it’s strictly taboo


 


When you arouse the greed in me


When you preserve my salary, bonuses, profits too


Wipe out those toxic debts, too


My heart says you bet your bottom dollar baby


Proceed with what I need you to do


 


It’s such a grand plan


One that gets America moving again


Cause there’s no nicer Congress than you


(Frank Style Shout Out:) 


Look Out Old America’s Back Everybody!


(Song continues! click READ MORE) 



Those silver tongues in my ear
Seductive promises to save my egg
Relieves me of my fear I’ll have to beg
Its ConcressCraft

I’ve got no defense for the logic of it
The losses are too deep for it,
Why save the  foreclosed with cash common sense


When the rich can’t hang on to their cents?

Cause it’s Congresscraft, clever Congresscraft
Although, I know, it’s strictly daft

When they stir up the worry in me
My insecurity and trust pour out and
I want Ben and Henry’s Buyout

It’s such an tried-and-true pitch
But one we can’t switch
Cause there’s no smarter congress than you.


 (Shout-out–Frank Style:)


Ring a Ding Ding that Opening Bell, Baby.  Let’s Buy! Let’s BUYYYYYYY!


 


Those promises of prosperity
To bring things back the way they used to be
Unzipping credit like a cocktail dress
It’s Congresscraft! To get us out of this money mess

And I’ve got no defense for it!


Those shapely downturn curves too steep not to do it

What would common sense do?


Telling banks and lenders to lend again


What would Vladimir Putin do?

Cause it’s CongressCraft,  sly CongressCraft
Although, I know, it’s strictly temporary


A Hail Mary pass for the economy…

When I see my banks change names every day or two


My portfolio, Keough and IRA too,


 Says yes , oh baby, yes indeed in me
Proceed with what you’re leading me to

It’s such a series of sucker plays
To bring back glory days
Cause Congress knows better than you


(Shout-Out,Frank style:) 


Look Out Old America’s Back in Town!


 


Those persuasive prognoses of doom
Those earnest sincere stares of gloom


That strip away my skeptic’s rationale
It’s Congresscraft!

And Ive got no choice but to believe it
The bleat is too blatent for it
What good would deliberate thinking about it do?

Cause it’s Congresscraft, clever Congresscraft
And although, I know, it’s just a bail-out


And a new massive bureaucracy

When congress says we have to save the rich’s money
Before they save mine, my heart says yes  but
Don’t forget about me with what you’re intending to do

It’s such a Wall Street pitch
Like old Bait and Switch
Cause there’s no smoother congress than you


 (Frank style shout out:)


America’s Skies are like Betty Davis Eyes Again, baby!


 


It’s not a buy-out, it’s a buy-in
As America comes back again
It’s such a sexy scene, buying living high again!
( Frank “aside”)


Look at me baby, I’m spending, I’m spending again already!)


It’s  Congresscraft

And Ive got to go through with it
The smell of money’s too close not to do it
What good would letting conmen go broke do?

Because it’s Congresscraft, forgiving Congresscraft
And although, I know, it’s strictly ballyhoo

When Barney, Nancy, Chris and Chuck arouse the patriot in me
My American heart and my IRA and Keough


Says save my dough please
Proceed with the credit ease

It’s such an old razzle-dazzle
Full of pizzazz and palaver
Cause there’s no greater razzler-dazzler than you.


(Shout Out: Frank Style)


How’s your Bonuses this morning Wall Street? Save a Golden Parachute for me will ya?


 


Those fingers on my house.
The refusals to renegotiate
I forget all about
It’s Congresscraft!

And I’ve got no problem with it
The guilt is too intense for it


It’s all my fault for not paying my debt,


You wanted me to take,making me bereft,
What good would jailing the Wall Street crowd do?

It’s Congresscraft, forgiving Congresscraft
Although, I know, it’s strictly unpatriotic

When you arouse the anger in me
My heart says you’re peddling a false dream
Stop the Congresscraft before it’s too late

It’s time to recognize this sanctimonious cope


One that depends on a false hope
Cause there’s no less informed congress than you.


 (Final Shout out:)


Is America back yet?

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New Tap Zee Bridge W/ Bus Rapid Transit First, Commuter Rail Next Proposed

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WPCNR THE TRAVELING NEWS. By John F. Bailey. September 26: The New York State Department of Transportation recommended today  New York replace the aging Tappan Zee Bridge,  with a new  bridge that could support a commuter rail line and bus line  to span the Hudson River at a cost in 2012 dollars of $16 Billion for bridge, bus/commuter equipment and infrastructure, and rail. 



The Envelope, Please, Astrid! And the Winner of the 8-Years in the Making DOT Tappan Zee Study Is  Alternative 4-C — $16 Billion New Bridge, supporting commuter cars, Bus Rapid Transit and eventually Commuter Rail from Suffern to Tarrytown and Manhattan!


 



 Astrid Glynn, Chair of the New York State Department of Transportation flanked by Westchester and Rockland County Executives, Andrew Spano and Scott Vanderhoef, announced the decision five years in development, saying that the next step would  be a series of meetings across both counties to explain the new bridge concept and how it would work.



The Transmilenio (Bus Rapid Transit system) in Bogota, Columbia. The system which moves 75% of the city’s commuters with frequent buses running in two directions with stations inbetween the lanes, uses about three lanes of convention automobile lanes. This shows how a successful Bus Rapid Transit System works in a multi-lane highway right of way. How such Bus Rapid Transit would work in the I-287 right of way has never been shown by the DOT to date. It will be designed according to the news conference.


She said design of the system and its effect on the Cross Westchester Expressway (new construction, station stops, place of the bus lanes, presumably),  corridor would be  discussed as part of that process. No meaty details were provided.  No proposals viewed by the public to date have not indicated specific locations for Rapid Bus Transit along I-287, nor how approaches to the bridge on both sides of the Hudson would effect the towns of Nyack, Tarrytown and Irvington.  Dates for the community meetings were not announced.


The DOT’s Ms. Glynn and Rockland County Executive Scott Vanderhoef made clear, would not start the bridge for four years (2012) and would go forward  next with developing a Draft Environmental Impact Statement by 2010, at which time when the EIS is approved, design of the new structure would begin, with construction expected to start by 2012.


No time was given when the bridge would be completed. The prospect of how the bridge would be paid for would be studied with the DOT’s financial advisor, which at the present time is Merrill-Lynch, but Glynn indicated that relationship would be watched as would the Wall Street situation.


Scott VanderHoef, the Rockland County Executive said a public private relationship with financial support from Washington was hoped for as a financial feasibility and funding search would be conducted by the DOT next.


 The cost of the project was set by Ms. Glynn as being $6.4 Billion for the new bridge, (indicated inclusive), $2.9 Billion for equipment, construction of Cross counties Bus Rapid Transit System and $6.7 Billion for the Commuter Rail from Suffern  across the new Tappan Zee Bridge to Tarrytown to connect with the Metro North Hudson Line. Total: $16 Billion.

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The new WPA : Wealth Preservation Administration. Not a Buy Out — It’s a BUY IN

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WPCNR NEWS COMMENT. By John F. Bailey. September 25, 2008  UPDATED 11:45 P.M. UPDATED September 27, 2008 9 P.M: Behold, Americans,  through the witchcraft of negotiation by our master congress, the great statemans, George W. Bush , and the  cooperation of greatest  deliberative legislative body and congressional leaders, Barney Frank, Nancy Pelosi, and our own Chuck Schumer — known to the  free world, America is again on its way to recovery Sunday evening.  Our government watchdogs have brought America back on the road to prosperity in 7 days after just two hours of negotiation Friday,  (one day less than when God created the world),  a lot of handwringing and postering by Republicans  in the House of Representatives scared for their seats, and now on Sunday evening they have brought us prosperity in our time.


The Bail-Out — as Senator Pelosi called it “A Buy-In” is a done deal. Now there is a little nervousness about congress passing it. President Bush will even address the nation before the markets open on Monday morning.


Look out, world, that nasty old recession, the economic wreck is over! They’re just wranglin on who gets the credit.


 Remember, in a joint agreement announced at 3 PM by the Associated Press, after two hours of negotiation Friday, our congress, as predicted by WPCNR this morning has reached an agreement on how the troubled security firms, banks, investment firms of all kinds will have their toxic assets made “whole” viable and good again through cash from congress. Whole lot of that lean, mean green is on the way!


And then…and then….and THEN —  at  11:30 P.M. Friday, that deal appeared to be on the rocks with Republicans balking. But this is simply more ploy, more theatre.  Do you think John McCain just might receive credit for bringing the Republican side around to “save” the deal, and appear to be “the leader” who brought the sides together — do you think?  With the failure of Washington Mutual conveniently happening the same time the Republicans were balking, and the 11% drop in housing starts being announced too, the pressure is really on. After all how can the Republicans really take credit for creating economic Armageddon? Now it looks as if Big Mac just isn’t going to get any credit at all. But anyway…did we really think this was going to be voted down? Really?


 


 


WPCNR predicts this  “BUY-IN” — (what a spin by Senator Pelosi!) will be known as the new WPA,  reviving the initials for the largest relief program created by the Franklin Delano Roosevelt administration in the 30s  that spent millions to employ millions out of work Americans in public work creation to get America working again.


The new WPA will be  the Wealth Preservation Administration.  The new “WPA” will be spending millions to preserve the wealth of  several hundred firms maybe (we do not know how many) of private companies and their shareholders, stakeholders and customers and wipe out the bad debts incurred by those toxic assets they bundled and sold to other parties. The program will be paid for by 300 million Americans to preserve the wealth of comparatively few hundreds.


The congress trusts American business to go straight from now on out and get credit moving again with this leap of faith in the American entrepreneurial spirit. We just know they will do that. It is a wonderful thing.


But, in our congress’s wisdom, in saving the assets of the few they are, in their infinite wisdom, saving the assets of the many – preserving our retirement programs for the widow getting by on stock dividends, for the retiree relying on their money market funds, for the Wall Street trader getting by with just three houses in just three states, and guaranteeing supposedly an end to our depressed stock prices, and the dawn of the greatest Bull market of all time.


In the words of our peerless leader and the economic saviors of our time, Henry Paulson and the Depression Buster, Ben Bernanke – it is the best solution for all Americans to build confidence in the markets again and make the marketers  of money feel confident enough to lend again.


In the agreement announced by the Associated Press, the conservative Republicans are even presenting an alternative program, with apparently enough votes corralled by the house leadership  already to allow them to go back to their howling districts and say, “we didn’t vote for it, see!”


Something for everyone. It is the best of all worlds for all Americans.  The wealth of congresspersons’ rich contributors is preserved. The big and little firms holding those toxic assets now know that they will have the nasty red ink mopped up  off the books literally, knowing that the government will cover them to some extent that is not made clear, and they can tell capital injectors that they now don’t have to worry about all that nasty bad debt. “Oh those trillions – don’t worry about that – it’s in the past.”


If Frank Sinatra were alive he might be singing  Witchcraft! And isn’t it great to know that perhaps Sara Palin had a hand in this. What a political bipartisan triumph for the American Way! It’s just a tribute to the way Amercans, especially rich ones  when their wealth is threatened, can come together and solve the country’s problems miraculously.  It’s marvelous! ‘s Wonderful! It’s American.


But, perhaps we owe the most to our wonderful Presidential candidates who by putting politics aside worked together too for the good of the country. The Big O and the Big Mac should be holding their hands together overhead with President Bush – the architect of the new prosperity – chanting “USA USA!” Mi$$ion Accomplished again.


Already we see a new dawn in America coming Monday morning! The new Bull Market has begun.


The wheelbarrow run at Home Depot has stopped, as people are no longer wheeling their wheelbarrows to pick up their money from their banks.


The stock market is already soaring. Loan officers nationwide are popping Prozac pills now to loosen their loan requirements. Banks are ordering up Hi-DEF Tvs  from Circuit City and Wal mart to give away with each new mortgage. Interns are getting calls again on Wall Street. Surgeons are breathing sighs of relief.


Out of work stock traders from Lehman are being speed-dialed to come on back.


Bank telemarketers are calling up foreclosees and saying, “Hey we’ve been taking a look at your mortgage and I think we can work something out. Come on in, let’s talk!”


Did Sara Palin’s pastor perform an exorcism on the economy and congress, and her church a mass prayer for the economy? God is blessing America again. Is this a message?


 Or did she use her good witch powers to cast a spell on congress. Perhaps she is sticking pins in dollars now to attract investors to buy these assets, bringing in her pastor to cleanse the bad debt God has punished Wall Street with. And most of all bless us with the confidence to lend, spend, invest and get America moving again.


It is a wonderful thing Congress has done.


It is amazing how a complete bill can be hammered out in 6 days. And they did not know anything about this seven days ago. It is government efficiency at its finest! Thank the lord for those Halliburton word processors!


Perhaps Mayor Joseph Delfino and Louis Cappelli were brought in the secret negotiations today. It has the touch of the masters this deal.


Once again, a muscling up Wall Street will spread in just three short days a rippling prosperity across the troubled land with the brawny, “can-do” confidence of an invigorated, debt free Wall Street, the Armani boys are back, once again prolifically endowed  with instant capital again  swearing to abide by the ethic of transparency, truth, exorcised balance sheets and can’t miss opportunities for you – just waiting for your money. Warren Buffet’s in for $5 Billion. “Buy, Wilbur, Buy!”


Come on in and make some money.


As the investment advisory letters of the past used to advertise: Dow $20,000?


But, perhaps I am waxing too optimistic. It must be my confidence. Perhaps my rosy scenario needs to be tamped down a bit.


We cannot expect economic upturn in 72 hours after all. (Sorry if we are stepping on some lines already being set for press conferences tomorrow.)


After all the $750 Billion Enchilada will take its way to work through the nation’s food chain before it works its magic beefing up the waist lines and the wallets and credit lines  of the rest of us.


After all the Wizards of Wall Street, Hank and Ben said it will take many months for the big dollars, that have to be “raised” to cover those assets.


But the confidence, the swagger, the moxie is back, the confidence is back.


You feel America’s wallet filling again. Hear the new money rustle. It’s the Wall Street Hustle.


Perhaps we will see a Concert for America to raise the dollars  for the bailout with the Beach Boys singing “Spend, Spend Spend America” to “Barbara Ann.”


Those earnest vanguards of the American financial machine the “Green Hornets”  have had the toxic fuels removed from their engines and will be ready to lend, unfreeze the markets and let the good times roll again in mere days, right?


Next week the book agents and  book deals will be sought: “Ben and Hank Save the Economy,” “Congress to the Rescue,” “Miracle on the Hill,” “America Comes Back,” “Big Mac’s Big Rescue.” “President Bush’s Greatest Mission,”  “Mi$$ion Accomplished,” and the negative ones: “Bailout or
Sellout?” “How to Steal $750 Billion,” and the movies —  “Midnight on Wall Street,” Starring Jack Nicholson as Ben Bernanke, and Harrison Ford (with shaved head) as Henry Paulson,  there will be the talk shows – all of them.  Already  I see new money out there.  Lots of it. It’s materializing as I write.


If Frank were still alive, I can hear him singing  at the Concert for American Wealth, “Witchcraft” this way:


 


Those crisp new dollars in my wallet, honey…


That lovely windfall capital share in hand 


That starts IPAs and stocks  making lots of money


Building new houses, high rises, inventories grand


It’s  Witchcraft!


 


And I’ve got a great use for it


The markets so in need of it


Homebuyers craving it


What good would not distributing it do?


Cause it’s witchcraft, lucrative witchcraft


And although, I know it’s strictly taboo


 


When you arouse the greed in me


When you preserve my salary, bonuses, and profits too


Wipe out those toxic debts, too


My heart says you bet your bottom dollar baby


Proceed with what I need you to do


 


It’s such a grand plan


One that gets America moving again


Cause there’s no nicer Congress than you


Look Out Old America’s Back Everybody!

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County, Councilmembers mum on budget cutting.

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WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. September 25, 2008: In light of the situation that the Common Council tonight may be considering whether the city should pay cost overruns and deficits run up on the Horton’s Mill “workforce housing” project opened last spring to the developer, and statements by the Westchester County Association that governments, county and local hold budgets at 2008 levels and cut costs by 5%, WPCNR asked the two senior members of the Common Council, Benjamin Boykin and Rita Malmud if they were going to discuss the current budget trends in the city with Mayor Joseph Delfino tonight.


asked both if they would call for cuts in spending the next three quarters. Mr. Boykin was asked if he would be convening the budget management committee which he chairs to take an early look at the city budget, in light of previous WPCNR-reported downtrends in mortgage taxes and sales taxes. City Sales tax figures will be available within the next 15 days.


Neither Ms. Malmud nor Mr. Boykin has responded that they would or would not ask the Mayor  for a “budget report” tonight.


Westchester County has also not responded with a statement commenting on the Westchester County Association call for keeping the county and local budgets at 2008 levels and cutting spending 5% among other suggestions.

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County Assoc Sees Worst Finances Since 30s. Tells Lawmakers to Cut & Cut

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WPCNR QUILL & EYESHADE. From Westchester County Association. September 25, 2008 (Edited): Citing the current financial crisis as the worst since the Great Depression, The Westchester County Association (WCA)—the area’s preeminent business membership organization—today presented a Five-Point Plan.  The Plan is directed at controlling spending and avoiding potentially major property tax increases and an exodus of businesses from our area.


In a news release the WCA called for legislators throughout the county to budget no tax increases in their 2009 budgets, a 5% reduction in all expenses, demand state mandate reforms to reduce the county tax “burden,” centralize government spending, and force government employees to adopt public sector health benefit employee pay ratios.



Bill Mooney, WCA President.


 WCA President William M. Mooney, Jr. (shown addressing the state Thomas Suozi Commission on Tax Relief in March 2008) said: “Given the meltdown on Wall Street and its potentially negative impact on the finances of the state, it’s time for our state lawmakers to hold a special session to deal with this financial crisis. We also look to our county officials to take a leadership role in articulating specific action steps. The residents of Westchester County, who once again have the dubious distinction of paying the highest property taxes in the nation, deserve no less than the full attention of its elected representatives.” 


 


Al DelBello, Chairman of the Westchester County Association, added: “We are facing an unprecedented economic emergency that requires both bold leadership and a willingness to make tough choices. The so-called tipping point has not only been reached but passed.”

 Mooney described the five recommendations as “reality based.” He pointed to the City of New York where Mayor Bloomberg immediately called on all departments including the police to cut their budgets by 5%. “Throughout the United States, all levels of government, businesses and households are cutting expenses to survive this financial crisis, yet our lawmakers have remained mute.” The Five Point Plan calls for:


 1)      No tax increases at any government level, beginning immediately with the 2009 budgets that are typically prepared at the end of the year


2)      5% across the board reduction in expenses at all government levels including an immediate hiring freeze.


3)      Seek state mandate reforms to help reduce fiscal burden that the state passes on to county governments and local municipalities


4)      Centralize government operations and purchasing (i.,e., information technology, accounting, legal, fuel oil and supplies)


5)      Require public sector employees (government workers, teachers, police, firefighters, etc.) to adopt private sector model of contributing to their health care and pension benefits.


 Richard E. French, Jr., President of Regional News Network (RNN) and Chair of the WCA Advocacy Committee, also called upon county, municipal and public school districts to adopt the Five Point Plan recommendations in their own operations. “The ripple effect across all government and public sector entities, combined with the state initiatives, will add up to significant savings. We are all in the same boat. At this point, it’s unreasonable for any one sector to be considered exempt.”


 “We call upon the members of Westchester’s delegation in Albany as well as our local officials to pledge their support for the 5 Point Plan and to return to the legislature and sponsor measures immediately to help bring financial relief,” French declared.


 Mooney stated that the WCA will undertake an in-depth evaluation and review of the county’s proposed 2009 budget that is to be released in November. He said the WCA will draw on its members who have financial expertise “to help us in examining the budget and making comments and recommendations for the county to reduce expenses.”


 


 


 


 


 

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The Smartest Congressman on Capitol Hill is From Queens. Asks $750B Question.

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WPCNR NEWS COMMENT. By John F. Bailey. September 25, 2008: In Congress’s 7 Day Drill, reminiscent of an Eli Manning Super Bowl Drive,  the “Hurry-Up-and-Save-Our-Fortunes-Stop-the-Bleeding-Save the Economy-Stop-the-Madness”  hearings on the Wall Street bailout Wednesday, after some 10 or more hours of hearings in two days, of all the Senators and Congresspersons wringing hands, taunting  the money white knights, Ben Bernanke, the Federal Reserve Chairman  and Henry Paulson, the Treasury “Czar,”  one congressman showed he is by far the smartest man in Congress.



Congressman Gregory Meeks, Democrat from the 6th District in Good Old  Jamaica, Queens, was the last questioner and the man who asked the last question in the Financial Services Committee Hearing Wednesday. Mr. Meeks had the business smarts to ask Ben and Hank what assurance  there is that the $700 Billion would actually be used by the financial institutions to give out loans instead of using the money to reward stockholders, keeping the bailout money on their balance sheets to attract investment and raise their stock price.


 




Mr. Bernanke dodged “The  $750 Billion Question,”  saying,  and,  Mr. Money said, (I’m paraphrasing) well that’s what these institutions do make loans  extend credit  – but  he did not guarantee in any way,  the money received for toxic assets would be  spent with asset holders with the explicit imperative it would be earmarked for credit liquidity. Mr. Bernanke did not say it would or give any assurances. He and Hank expect, hope  the robber barons will get religion and start making loans with it.


This was the most important question and most intelligent question asked in two days and Mr. Meeks is to be commended for asking it. He has brains. He’s from Queens not from the Upper East Side. And, I don’t think he owns a house on the New York Riviera in the Hamps, or the Dominican Republic yet.


Considering that Barney Frank who runs the House Committee announced early in the Wednesday afternoon hearing the house had already worked up a 42-page bill to send the Senate, it became increasingly clear this is a dog and pony show with the bailout a certainty with no certitudes.


Mr. Meeks question landed at the end of the hearing like a large elephant feces in the middle of Mamaroneck Avenue in the  Columbus Day Parade.  It stunk up the house chamber with its aroma of truth, as Frank gaveled the hearing to a close.


Mr. Meeks’ intelligence grenade highlighted that this money is being given without restrictions, without purpose, other than to restore “confidence.”


People on Wall Street say we need to restore confidence in the markets. Who can have confidence in this stock market that makes money on failure, insider trades, and misrepresents value?


Poppycock.


It is being given to save our fortunes – maybe. We are to believe that all these firms – and how about a list of all the firms that are going to get this money? Hundeds? No one has asked that.


Magically, it is supposed to unjam the credit system with Ben and Hank’s faithful promise that they think this is the best way to do it.


It’s good for the companies getting the money, I assure you. That’s where these guys are coming from.


Congress getting hung up on restricting the salaries of these people at companies getting the money is not productive.


Could we please follow the money through the system, as Mr. Meeks so intelligently, bluntly pointed out?


Could we please say in the bill – money received for assets will be used for new loans only or at least a goodly percentage of it?


Frankly, I have no confidence these companies will be altruistic. Once they get their manicured fingertips on the money, they will consider it their money.  Hire more interns.


No Wall Street firm is altruistic. Haven’t we learned that through scam after scam: The Keating Savings and Loan Debacle, (John McCain must remember that one) (going way back) Teapot Dome, the Transcontinental  Railroad scam,  the Dot Com Runup, the Oil Price runup, the subprime scam. They’re con men and women.  


Congress is giving this money away for them to build up confidence? Why should we have confidence in them? We have confidenced ourselves into a depression believing in them.


Of course, Hank says you cannot put restrictions on the money or limit how it is used because that would restrict the market and the ability to evaluate the assets. But, supposedly these places need the money.


I say Congressman Meeks is one smart man. How did he ever get  nominated to run?  Must have slipped through the  6Th District Nomination Committee undected.  He better watch it asking intelligent questions. The Queens County Democratic Committee may have to recall him.


Thank you Mr. Meeks for asking the $750 Billion Dollar Question: how will we be sure the money will result in more credit being opened up? And Ben and Hank would not answer it or assure it.


The Setup


With the Senate Leader Nancy Pelosi, Chuck Schumer of the Senate Joint Economic Committee and the House leader Mr. Benoit saying they’ve agreed in Principle on the bailout means this was in the works all along. After all, all those well-heeled contributors to congresspersons, the contributors who stand to lose a lot of money in their personal fortunes have to be saved.


It is a setup for another government agency that does not work: Department of Homeland Security, FEMA, TSA. 


Not to mention the reams of hearings  next year on regulating Wall Street to come,  with a “saved” and prosperous economy bringing America back to Number 1, and our fortunes saved


Then —


One more huge patronage bureaucracy coming up. Bring on the interns. Hire press offices. Hire more hacks. Bring on the clowns. Bring on your favorite Wall Street lobbyists and give them jobs.


Remember it’s all for the American family, to save our fortunes.


We are truly grateful, congress for your oversight, piercing questions, and canny financial acumen in vetting this $750 Billion measure in a week.


I want more Gregory Meeks-es in Congress. Or at least one Gregory Meeks on the White Plains Common Council and School Board.


Thank you Mr. Meeks, keep asking that question.


We who are about to pay, salute you.


Could we please get in free to your next fundraisers, Senators and Congresspersons in the Hamptons? Or Lincoln Center.


 


 

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