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

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

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

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

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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