Governor Paterson: NY Faces a Winter of Reckoning

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WPCNR ALBANY ROUNDS. By Governor David Paterson. From Governor David Paterson’s Press Office. January 26,2010: 


This is our winter of reckoning.

The mistakes of the past — squandering surpluses, papering over deficits, relying on irresponsible fiscal gimmicks to finance unsustainable spending increases — have led us to a financial breaking point. We have to accept that the old way of doing budgets is unsustainable… and I need your help getting Albany to understand that.








 







New York Times

Gov. David Paterson of New York presented a lean budget on Tuesday that is a necessarily austere response to the state’s financial crisis… Mr. Paterson’s budget makes sense and, for the most part, asks for shared sacrifice. That is a reasonable approach even though this is an election year, when reason does not routinely prevail. The governor has set himself a difficult but necessary task. Read more…

— Editorial, 1/6/2010

Last week, I submitted my Executive Budget that continues the difficult process of confronting New York’s new fiscal reality. While all states have been hit hard by this Great Recession, New York once again finds itself at the epicenter of a monumental national challenge being the home to our country’s financial community. As a result, my budget makes painful, but responsible, spending reductions in order to eliminate a $7.4 billion deficit.

Just as New York families have had to make tough spending choices to make ends meet, so must state government. Passing along these problems to future administrations is not an option for me. As I told legislators during my
State of the State address, I will no longer allow New York to be run like a payday loan operation, and I refuse to write bad checks or mortgage our children’s future instead of responsibly confronting our challenges.

Our budget not only limits spending to far below the rate of inflation, but is also anchored to the most significant public higher education reforms in a generation, provides fiscal relief to local governments through an aggressive mandate reform agenda, and includes a number of critical long-term reforms that lay the groundwork for changing the way our State government does business.

Nobody wants to make these cuts. They are painful, they are difficult, and they will have a real impact on people’s lives. But delaying action will not only make the problem worse, it will make it harder to solve in the future.









The Buffalo News

It was an appropriately hard-nosed budget speech that Gov. David A. Paterson delivered to lawmakers and others on Tuesday. Time and again, Paterson put his finger on the financial problems that New York’s routine recklessness has caused the state. Now comes the reckoning. Read more…

— Editorial, 1/19/2010

That’s why I need you to join me in this fight to change the way Albany does business. We need to make sure your voice is heard so that we can level the playing field and end the dominance of the special interests. Please add your name now by clicking here to let me know that you want to put government back on the side of hardworking New Yorkers.

I know New Yorkers are tired of leaders who pass the buck, force others to make the tough choices to keep their poll numbers artificially high so that they might stay in office, or who unethically game the system for personal political ambition. The budget I submitted is a blueprint for a stronger, healthier, more fiscally and ethically responsible New York. The only way we can emerge from this crisis is through shared sacrifice and changing the way Albany does business, and doing so with honesty, forthrightness, and candor. That is exactly what New Yorkers expect and deserve from their leaders.

Sincerely,
David A. Paterson
Governor of New York

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County Executive Astorino Says Paterson Spending Cuts Shift Burden to Westcheste

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WPCNR COUNTY CLARION-LEDGER. From Ed McCormick, Westchester County Department of Communications. January 20, 2010 (Edited): County Executive Robert P. Astorino today criticized the state budget proposed by Gov. Paterson, saying it would shift costs to local taxpayers instead of cutting state spending.


“The fiscal picture that the Governor portrays is not dissimilar to what we see on the county and municipal level: looming deficits and shrinking revenues,” said Astorino. “Unfortunately, Gov. Paterson’s plan is off target. More taxes are not the answer. He should be attacking spending, not shifting costs to counties, local governments and school districts. Our taxpayers can not bear this extra burden.”


 



 



Astorino added: “Costs for health care and retirement benefits –  for all levels of government – continue to soar. And while the state has made an effort to address the pension issue for new employees, the only way to impact the bottom line of the budget is to cut costs, not pass on costs to our taxpayers.”


The county executive also expressed his strong opposition to the governor’s proposal to add a tax on soda with sugar, saying this would hurt both Purchase-based PepsiCo and Somers-based Pepsi Bottling Group, two of the region’s largest employers.


 “The focus needs to be on economic growth and job creation,” he said. “Increasing taxes will have just the opposite effect.”


 The county’s budget department is currently undertaking an in-depth analysis of the proposed state budget.


What follows are some issues already apparent:


·        The county anticipates a $3.6 million reduction in State Transportation Operating Assistance (STOA), which offsets the Bee-Line operating expenses; and $240,000 less for the cost of the county’s parkway patrols.


·        Preliminary analysis also shows a proposed reduction of $800,000 in state aid for the Health Department’s Children with Special Needs program and $1.5 million in other possible health department cuts.  (In the case of the Children with Special Needs program, there would be some new revenue by charging fees to parents.)


·        The budget cuts aid to local government and school districts, thereby placing additional pressure on the local tax levy for the residents of Westchester County.


 


Astorino applauded some of Gov. Paterson’s initiatives and encouraged lawmakers in Albany to support their final adoption. They included:


·        The proposal to repeal Wicks Law, which will help in containing the cost of capital projects for school districts


·        The proposal to enable local governments to hold reverse auctions, in which vendors bid against each other for lower prices


·        The proposal to limit county expenses for preschool education


·        The proposal to provide rate relief to the New York State Health Insurance program by limiting premiums paid by local governments


·        The proposal to allow judges to replace personal appearances by defendants by using video conferences when the circumstances are appropriate


·        The proposals to allow shared justice court facilities, and directors of weights and measures.


 

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Governor David Paterson’s 2010-11 Budget Savings Proposals

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WPCNR ALBANY ROUNDS. From Governor David Paterson’s Press Office. January 21, 2010:


Governor David A. Paterson Tuesday proposed a 2010-11 Executive Budget that makes significant spending reductions in order to eliminate a $7.4 billion deficit and institutes key reforms to put New York on the road to economic and fiscal recovery. The Executive Budget proposal includes spending reductions across every area of the budget; limits State spending to far below both the Governor’s proposed spending cap and the rate of inflation; implements the most significant public higher education reforms in a generation; and provides fiscal relief to local governments through an aggressive mandate reform agenda.


“Since the day I became governor, I have warned that New York is facing an inevitable fiscal reckoning,” Governor Paterson said. “There are no more easy answers. We cannot keep spending money that we do not have. Significant spending reductions are necessary if we want to emerge from this crisis and build a strong fiscal and economic recovery. Together, through shared sacrifice, we will move forward toward a more hopeful and optimistic future for New York.”


 






Governor David A. Paterson today proposed a 2010-11 Executive Budget that makes significant spending reductions in order to eliminate a $7.4 billion deficit and institutes key reforms to put New York on the road to economic and fiscal recovery. The Executive Budget proposal includes spending reductions across every area of the budget; limits State spending to far below both the Governor’s proposed spending cap and the rate of inflation; implements the most significant public higher education reforms in a generation; and provides fiscal relief to local governments through an aggressive mandate reform agenda.


“Since the day I became governor, I have warned that New York is facing an inevitable fiscal reckoning,” Governor Paterson said. “There are no more easy answers. We cannot keep spending money that we do not have. Significant spending reductions are necessary if we want to emerge from this crisis and build a strong fiscal and economic recovery. Together, through shared sacrifice, we will move forward toward a more hopeful and optimistic future for New York.”


Eliminating the Deficit


Governor Paterson’s 2010-11 Executive Budget closes a $7.4 billion deficit through $5.5 billion in recurring spending reductions (74 percent of the overall plan), $1.0 billion in actions that increase taxes or fees (less than 14 percent of the overall plan), $430 million in revenue actions that do not increase taxes or fees, and $565 million in non-recurring actions. Overall, 92 percent of Governor Paterson’s gap-closing plan represents recurring actions that will help the State continue to address its future projected budget deficits.


Major spending reduction recommendations include:


School Aid. A $1.1 billion or five percent year-to-year reduction in School Aid, targeted progressively based on local school district wealth and student need. Even after this reduction, overall recommended 2010-11 School Aid spending of $20.5 billion would still represent a $6.1 billion or 42 percent increase compared to 2003-04 – twice the rate of inflation (19 percent). Additionally, this $1.1 billion reduction represents only 2.1 percent of overall school district budgets, which total more than $52 billion, including State and local contributions. School districts also have reported undesignated reserves of more than $1.5 billion statewide.


Health Care. $1.0 billion in Medicaid and health care savings, including reductions to providers and various programs, enhanced Medicaid fraud recovery efforts, and other measures.


Agency Spending. More than $1.0 billion in reductions to State agency operations spending, including $500 million in additional across-the-board agency cuts, $250 million in negotiated workforce savings (including $28 million from administratively rescinding, for the second consecutive year, the scheduled general salary increase – four percent – for non-union management/confidential employees), prison closures, youth facility right-sizing, agency mergers, shared service initiatives through Governor Paterson’s Office of Taxpayer Accountability, and other actions.


• Hundreds of other individual reductions detailed below and on the Division of the Budget’s website (www.budget.state.ny.us)


The gap-closing plan includes $1.0 billion in tax and fee increases, 93 percent ($923 million) of which are dedicated to offsetting what would have been deeper cuts to health care services. They include a $1 per pack increase in the cigarette tax ($218 million) and a new excise tax of approximately one penny per ounce on sugared beverages linked to obesity ($465 million), which will help discourage consumption of those unhealthy products and improve long-term health outcomes. Each year, obesity causes the death of 112,000 Americans and costs New York’s health care system $7.6 billion. Annually, smoking causes the deaths of over 400,000 Americans (including 25,000 New Yorkers) and costs New York’s health care system more than $8.2 billion.


Additionally, while Governor Paterson maintains his strong commitment to tribal sovereignty, he will direct the Department of Taxation and Finance to withdraw its Advisory Opinion regarding the Department’s policy of forbearance of sales by agents of unstamped product to Indian retailers. The Department will also promulgate regulations for public comment, a process that will take six months. The purpose is to stop a handful of wholesalers from selling unstamped cigarettes. No revenue is currently assumed in the State’s financial plan from tax collections related to these unstamped products, as the regulatory process is not yet complete. Further health care revenue actions include $240 million in health care assessments and surcharges, which have an impact on providers similar to direct funding cuts, but without an associated loss of federal matching funds.


Spending Growth


The Executive Budget recommends 2010-11 All Funds spending of $134.0 billion, an increase of $787 million or 0.6 percent from the prior year. State Operating Funds spending (excludes federal funds and long-term capital) would total $79.9 billion in 2010-11, an increase of $745 million or 0.9 percent.


Spending recommended in the 2010-11 Executive Budget is well below the projected rate of inflation (2 percent) and the requirements of Governor Paterson’s proposed spending cap. If enacted, this spending cap initiative would generate an over $1 billion surplus in the following 2011-12 fiscal year, which would be returned directly to more than one million property taxpayers in the form of a progressive circuit-breaker tax credit that averages over $1,000 per recipient.


Growth in 2010-11 State Operating Funds ($745 million or 0.9 percent) spending is composed entirely of fixed costs related to prior commitments over which the State has limited control. In 2010-11, the State is projecting substantial growth in debt service ($844 million or 17.1 percent) and fringe benefits ($437 million or 9.9 percent) related to prior commitments. Debt service represents payments to bondholders (including interest) on past capital projects for which a liability has already been incurred. Changes to pensions and certain employee health care benefits are restricted by constitutional and contractual obligations. All other 2010-11 State Operating Funds spending outside debt service and fringe benefits is projected to decline by $536 million or 0.8 percent from prior year levels.


Key Reforms


The Executive Budget proposes the most significant reforms to the State’s system of public higher education in a generation. The Public Higher Education Empowerment and Innovation Act will provide the State University of New York (SUNY) and the City University of New York (CUNY) with the flexibility they need to thrive academically and become centers of job creation. Governor Paterson’s proposal would take tuition setting outside the politics of the state budget process, allowing SUNY and CUNY to institute a rational tuition policy, tied to the higher education price index, which makes the cost of public higher education more equitable and predictable for students. The reforms would also provide SUNY and CUNY with greater operational independence so that they can adapt and thrive in an ever-changing innovation economy, eliminating numerous burdensome State regulations on contracting, procurement, land use, and other areas, while still maintaining appropriate accountabilit! y and oversight.


Governor Paterson’s budget proposal also puts forward an aggressive mandate reform agenda that includes repealing the Wicks Law for all school districts (lifting contracting restrictions that increase costs for property taxpayers) and a four-year moratorium on unfunded mandates. In total, the Governor’s mandate reform agenda includes more than 100 mandate reform initiatives that will provide savings to local governments of nearly $1 billion over the next three years.


School Aid


The Executive Budget recommends $20.5 billion for 2010-11 School Aid, a $1.1 billion or 5 percent reduction from the prior year. This reduction is structured progressively so that lower-wealth districts would experience smaller percentage cuts than higher-wealth districts.


There are several factors that indicate that the vast majority of school districts should be able to manage these reductions without adversely impacting property taxpayers or educational quality.


• This $1.1 billion year-to-year reduction represents only 2.1 percent of overall school district budgets, which total more than $52 billion, including State and local contributions.


• Even after this proposed reduction, the $20.5 billion in 2010-11 School Aid recommended in the Executive Budget would still represent a $6.1 billion or 42 percent increase compared to 2003-04 – twice the rate of inflation (19 percent) during that period.


• New York public schools spend more per pupil overall ($15,546) than nearly any other state and 61 percent above the national average. New York ranks first in per pupil spending for school district employee salaries ($7,328, or 71 percent above the national average) and benefits ($2,901, which is 109 percent above the national average). A strong funding commitment will remain even after this proposed reduction.


• School districts have reported undesignated reserves of $1.5 billion statewide, according to State Education Department data.


The 2010-11 Executive Budget also extends the existing two-year statutory freeze on Foundation Aid (2009-10 and 2010-11) by one year through 2011-12. Additionally, the full phase-in of Foundation Aid would now take place over a ten-year period (complete in 2016-17) rather than the seven-year period assumed in current-law. This measure would allow the State to meet its commitment to fully funding the Foundation Aid formula, while also addressing its substantial structural, out-year budget deficits.


Health Care


The Executive Budget recommends a health care gap-closing package of $1.9 billion. It includes reductions to providers and various programs, and other savings measures, totaling $1.0 billion. Additionally, approximately $923 million in taxes and assessments dedicated to health care purposes would be instituted. The largest of these taxes and assessments are an increase in the cigarette tax and a new tax on sugared beverages, which will help discourage unhealthy consumption habits that put New Yorkers at risk for obesity, diabetes, cancer, heart failure, strokes, and other diseases, as well as offset what would have been deeper cuts to health care services.


Specific 2010-11 gap-closing impacts across selected sectors include the following: hospitals ($244.6 million), nursing homes ($140.2 million), home and personal care ($73.9 million), pharmacies ($12.2 million), insurance ($222 million); public health and aging ($104.2 million). Additionally, the State will increase its Medicaid Fraud recovery target by $300 million to $1.17 billion, instituting new civil penalties and other measures to ensure the integrity of the Medicaid program.


As part of the nearly $1.0 billion in reductions and other savings measures included in this plan, the Executive Budget would establish more rational and cost-effective reimbursement methods to produce better care at lower costs; modify reimbursement across sectors; control public health insurance program costs; and reduce spending for less essential public health programs. After the actions proposed in the Executive Budget, Medicaid spending would total $51.5 billion in 2010-11, an increase of 1.8 percent compared to 2009-10. Prior to budget actions, it was projected to grow by 5.0 percent.


Other Major Budget Areas


Environment and Energy – Funding for the Environmental Protection Fund would be reduced by $79 million from 2009-10 Enacted Budget levels, including a moratorium on forest preserve and open space land acquisition. Additionally, a new training class of Parks Police Officers would be delayed until after 2010-11, saving an estimated $3.5 million.


Higher Education – Aid to SUNY senior colleges ($95 million savings) and CUNY ($47.7 million savings) would be reduced by $143 million on a State fiscal year basis. Additionally, changes to the Tuition Assistance Program (TAP) will generate $49.7 million in savings (including a $75 reduction to all awards) and community college base aid would be reduced by $285 per full-time equivalent student ($56.7 million savings).


Local Government – Aid and Incentives for Municipalities (AIM) funding for New York City ($301.7 million savings) would be eliminated. New York City has a broad range of revenue sources – AIM accounts for less than 0.5 percent of overall NYC revenues. AIM funding for other municipalities would be reduced by either two or five percent ($15 million savings), depending on their overall reliance on that revenue source.


Public Safety – State Police training classes will be delayed until after the 2010-11 Fiscal Year ($17 million savings). Additionally, as a result of continued declines in the prison population, the Department of Correctional Services would continue to consolidate facilities and eliminate excess capacity. Two prisons would close in January 2011: Lyon Mountain minimum security (Clinton County) and Butler minimum security (Wayne County). Another two prisons would close in April 2011: the Moriah shock facility (Essex County) and Ogdensburg medium security (St. Lawrence County).


STAR – The Executive Budget would restructure the New York City Personal Income Tax STAR benefit by limiting eligibility to the first $250,000 of taxable income ($143 million savings). Currently, taxpayers who earn in excess of $250,000 receive more than 50 percent of the overall benefit from the NYC STAR personal income tax rate reduction, but represent only 2.9 percent of the total number of recipients – a poorly targeted allocation of the State’s limited resources, especially during a fiscal crisis. The Executive Budget would also eliminate the STAR exemption for homes valued at $1.5 million or more ($30 million savings) and would increase the maximum annual reduction in STAR benefits that can occur as a result of changes in assessed value or market value from 11 percent to 18 percent ($40 million savings).


Transportation – The Executive Budget proposes a two-year, $7 billion, Department of Transportation capital plan that increases the General Fund subsidy for the Dedicated Highway and Bridge Trust Fund, supports rail capital investments, and preserves aid to local governments for highway and bridge projects. It also eliminates a mandated license plate reissuance previously scheduled for April 2010.


Economic Development – The 2010-11 Executive Budget recommends a number of initiatives to keep New York competitive, create new economy jobs, and attract capital. The budget proposes merging the Department of Economic Development and the Empire State Development Corporation into a new Job Development Corporation to streamline economic development activities and save $4.7 million in 2010-11. It would also create the Excelsior Jobs Program and includes funding for Innovation Economy Matching Grants ($100 million over a five-year period), a New Technology Seed Fund ($25 million), a Small Business Revolving Loan Fund ($25 million), and over $45 million to support other economic development initiatives.


Human Services – The Executive Budget proposes delaying the full implementation of a scheduled public assistance grant increase begun last year, reducing from ten percent to five percent the statutory July 2010 increase and delaying full implementation of the full 30 percent increase until July 2013 ($14 million savings). The budget would also rightsize the residential juvenile justice system by consolidating and reducing capacity in line with population trends. The Annsville and Taberg residential facilities located in Taberg, Oneida County would be consolidated into the Taberg facility. Additionally, two other facilities would be downsized to reduce excess capacity, including the Tryon Boys facility in Johnstown, Fulton County (eliminating the limited-secure program for boys) and the non-secure residential center for girls in Lansing, Tompkins County. The Executive Budget also includes $18.2 million to increase staff-to-youth ratios and to pr! ovide improved medical and mental health services for youth in State-operated juvenile justice facilities in order to improve conditions in the facilities and outcomes when youth return to their home communities. This action would result in an increase of 169 staff in the youth facility program. This investment would begin to address conditions identified by Governor Paterson’s Task Force on Transforming Juvenile Justice.


Workforce


The overall size of the State workforce is expected to total 195,700 at the close of the 2010-11 fiscal year, a decrease of 675 from 2009-10. The portion of the workforce subject to gubernatorial control is projected to total 131,900 at the close of 2010-11, a net decline of 625 from the prior year and 5,775 from the time Governor Paterson took office in March 2008. When completed, the annual General Fund savings associated with this 5,775 position decline is estimated to total $457 million, including fringe benefits.


The Governor will seek to partner with public employee unions to implement a number of targeted workforce actions that reduce State employee salary costs. These actions are expected to save $250 million in 2010-11. As part of these $250 million in workforce savings, Governor Paterson will administratively eliminate, for the second consecutive year, a scheduled April 1, 2010 general salary increase (four percent) for non-union management/confidential employees ($28 million).


Tax and Fee Increases


The 2010-11 Executive Budget includes $1.0 billion in actions that increase tax or fee liability. In addition to $923.2 million in taxes and assessments that offset what would have been deeper cuts to health care services and account for 93 percent of the total, other proposed tax and fee actions include establishing a parental fee on a sliding scale for Early Intervention services similar to the policy of numerous other states ($1.0 million), increasing certain court filing fees to finance civil legal services and other criminal justice priorities ($41 million), closing tax loopholes to ensure that all taxpayers pay their fair share ($30 million), and imposing a three percent tax on severing natural gas from a gas pool in the Marcellus or Utica Shale formation using a horizontal well.


Additionally, the Department of Taxation and Finance will withdraw its Advisory Opinion regarding the Department’s policy of forbearance of sales by agents of unstamped product to Indian retailers. The Department will promulgate regulations for public comment, a process that will take six months. This action will permit the State to seek the lifting of the injunction preventing the State’s statute prohibiting the sales of unstamped cigarettes to Indian retailers from going into effect. The purpose is to stop a handful of wholesalers from selling unstamped cigarettes. No revenue is currently assumed in the State’s financial plan from tax collections related to these products, as the regulatory process is not yet complete. Governor Paterson maintains his commitment to tribal sovereignty and will work with the State’s Native American tribes to implement these measures in a peaceful and efficient manner.


Non-Tax and Fee Revenue Actions


The Executive Budget recommends several revenue actions that do not increase taxes or fees. These include permitting the sale of wine in grocery stores ($93 million), legalizing Mixed Martial Arts in New York ($2.1 million), eliminating certain Quick Draw restrictions ($33 million), extending Video Lottery Terminal (VLT) hours of operation ($45 million), deploying speed enforcement cameras ($32.9 million) and improving tax audit and compliance ($221 million).


Deficit Projections


The Deficit Reduction Plan that the Legislature enacted on December 2, 2009 achieved $2.7 billion in 2009-10 savings, which was not sufficient to close the State’s $3.2 billion current-year deficit. Rather than proposing additional gap-closing measures in the current fiscal year, when the range of options for achieving recurring savings is increasingly limited, the State expects to carry this remaining $500 million deficit forward into 2010-11, where it is addressed in the 2010-11 Executive Budget as part of a responsible multi-year plan that emphasizes recurring savings. As such, the combined 2009-10 ($500 million) and 2010-11 ($6.9 billion) deficit that is addressed in the 2010-11 Executive Budget totals $7.4 billion.


Prior to Executive Budget actions, the State faced a cumulative deficit of $60.8 billion ($7.4 billion in 2010-11, $14.3 billion in 2011-12, $18.3 billion in 2012-13, and $20.7 billion in 2013-14). Prior to Executive Budget actions, spending was projected to increase during that five-year period by an average annual rate of 7.5 percent, while revenues were projected to increase at an average annual rate of 3.1 percent. The Executive Budget cuts the State’s long-term structural deficit in half to $29.0 billion ($6.3 billion in 2011-12, $10.5 billion in 2012-13, and $12.2 billion).


Reserves and Financial Plan Assumptions


The Executive Budget does not assume the use of any of the State’s Rainy Day Reserves for gap-closing purposes, which are projected to total $1.2 billion at the close of 2010-11, unchanged from 2009-10. However, as was the case in 2009-10, the Rainy Day Fund and Short Term Investment Pool will be used for temporary cash-flow purposes at times during 2010-11, including the close of May 2010 and June 2010, when the General Fund is projected to have a negative balance. Additionally, the Executive Budget does not assume an extension of federal stimulus funding.

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Jobs in Hud Valley Down 2.3%. Leisure/Hospitality Lose Most. Ed/Health Gain.

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WPCNR ECONOMIA. From Johny Nelson, The NYS Department of Labor Statistics. January 21, 2010 UPDATED 10:30 P.M. E.S.T. (EDITED):  The unemployment rate in White Plains held steady at 6.3% of the labor force in December, with 29,100 persons employed and  2,000 unemployed in a labor force of 31,100 persons. Westchester County unemployment moved up from 6.8% to 6.9%, with 454,000 persons employed in a workforce of 487,500, leaving 33,600 unemployed, according to New York State Department of Labor statistics. White Plains and Westchester fared better in employment stability than did the Hudson Valley as a whole. 

 

Private sector employment in the Hudson Valley decreased 17,700 or 2.3 percent, to 741,500 for the 12-month period ending December 2009.  Employment gains were limited to educational and health services (+4,900). 

 

Job losses were centered in trade, transportation and utilities (-5,200), leisure and hospitality (-4,500), manufacturing (-4,000), professional and business services (-3,600), natural resources, mining and construction (-3,100), information (-1,200), and financial activities (-900).  The government sector shed 1,500 jobs over the year.

 

Analyst’s observation:

The regional job market continues to suffer from poor economic conditions as private sector jobs declined by 2.3 percent for the 12-month period ending in December 2009.  The effects of the downturn are most apparent this month in the region’s leisure and hospitality sector, which recorded its steepest over-the-year job loss (-4,500) since July 1991.

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Feiner Expresses Alarm Over 18% STAR EXEMPTION PLANNED CUT

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WPCNR THE FEINER REPORT. By Town of Greenburgh Supervisior Paul Feiner. January 21, 2010:  Governor Paterson has responded to the NYS budget crisis with some major cutbacks. Among the cuts that will impact your school tax bill is the continuing erosion/gradual elimination of STAR. Homeowners could be experiencing a decrease in STAR assistance from the state by 18% if the budget is approved, as presented. Even if school taxes do not increase (which is unlikely because schools may receive less financial assistance from the state) – property owners will see a bigger school tax bill because they will not be receiving STAR benefits. (Editor’s Note: This was first reported by WPCNR yesterday, outlining the tax impact on the median-priced home in White Plains.)

The Governor’s proposal must be approved by both the NYS Senate and State Assembly.  NYS is experiencing significant budget problems. If STAR is restored – other cuts will have to be made to offset the STAR cutbacks. If you have any comments about the Governor’s proposed budget you should reach out to your State Legislators.


 THIS IS A CAPTION FROM THE GOVERNOR’S PROPOSED BUDGET BILL


STAR Exemption Changes


Eliminates the Star exemption for homes valued at $1.5 million or more.  Market value determined by dividing the total assessed value of the parcel by the residential assessment ration (impacts both the Basic and Enhanced STAR exemptions).


The STAR floor is changed from 89 percent to 82 percent.  The maximum amount that a STaR exemption for a municipality can drop from one year to the next will now be 18 percent.

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Schools Stage 2nd Budget Forum 2Nite at Slater Center.$18 MILLION HIKE?

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WPCNR SCHOOL DAYS. News & Comment By John F. Bailey.January 20,2010: Tonight at the Slater Center, the White Plains Board of Education will stage its second Budget Planning Process forum at the Slater Center, 2 Fisher Court, 7:30 P.M. Last week the first session was held at White Plains High School drawing about 75 persons, including teachers and school district personnel.


 


In looking at the state budget proposed by Governor David Paterson yesterday, and judging the information provided by the school district last week, property taxpayers in White Plains can be assured that because the school district did not cut more expenses last year when they had the opportunity, district taxpayers will be paying whopper tax increases this year in the White Plains School District.


 


A preliminary runthrough by WPCNR shows the district is looking at a $50 increase in the tax rate – unless a miracle occurs. The district is looking at a $201 Million budget based on preliminary figures.


 



 


At last week’s meeting at  the high school, no preliminary budget was passed out, and citizens were asked to comment on areas and issues concerning the budget. One of the most telling comments came toward the end of the meeting, when one spectator asked how the audience could make serious suggestions where to cut the budget when the district had not presented a preliminary budget to them. The Superintendent of Schools (Dr. Christopher Clouet) promised that a preliminary budget would be ready in February.


 


 





Here’s why the largest combined tax increases in memory are going to hit us, unless the school district goes to work and cuts expenses deep:


 


* The Governor went on record yesterday saying he was going to make the whopping cut in the STAR Exemption of 18% he wanted to enact last year, but compromised to an 11% cut instead.  However, the 18% cut is back in his budget this year.


 


By the way, WPCNR was the only media that chose to report this last year. The STAR EXEMPTION cut  was deftly and deliberately hidden by the Governor and the legislature last year, and it was quietly used to “fund-through-the-taxpayer”  the “restoration” of school aid much lauded last spring by the legislators themselves. Local legislators denied knowledge of this legislative sleight of hand, blaming it on the Office of Real Property Services.


 


 But the Governor is very upfront about it in yesterday’s presentation to the legislature. The effect is to tax you upfront with an increase in tax even before the school budgets are passed. The problem is declining home and business property values are going to reduce assessments anyway delivering what WPCNR predicts will be the largest school tax increase we have seen in years unless sanity returns to the school district in some way.


 



 


White Plains Assistant Superintendent for Business Fred Seiler outlined the following cost increasers he expects will affect the budget. His numbers indicated expected increases as follows to be added to this year’s $185,778,149 school budget:


 


* $3.225 Million in Salary Increases for Teachers, Administrators and CSEA members.


 


* $2.8 Million Teacher Retirement Fund Increase


 


* $700,000 in Employee Retirement Increase


 


* $3.3 Million in health Insurance Increases (expected 10%)


 


Total New Budget adding these increases: $196 Million.


 


However, what Seiler did not allude to was the effect of a possible drop of $3 Million in the Assessment Roll causing a $1.5 Million drop in revenue.


 


Say the assessment roll goes down a mere $3 Million to $283.8 Million, this will roll up the budget impact another $1.5M, plus a $3.5 Million in School Aid Loss for White Plains, according to recent governor estimates, bringing a possible total budget of  $201 Million.


 


$1,000 school tax increase for the median home?


 


Such an increase, $185.8 Million to $201 Million unless the district cuts expenses ruthlessly, would result in a tax rate of approximately $567/ $1,000 of assessed valuation. A median home owner  under 65 of a house assessed at $18,475 would pay an increased school property tax of $9,095 up from about $8,000 in 09-10—about a $1,000 increase. Those whose homes are over the median would of course pay more.


 


 Refresher in the STAR EXEMPTION


 


Here’s how the STAR EXEMPTION will work if the legisalature retains the 18% STAR CUT.


 


If you’re under 65 and own a median-priced home in White Plains, ($650,000) your STAR EXEMPTION for an $18,500 accessed home  currently at $2,960 this year declines another $532.80 to $2,427, increasing your assessed value to $16,048. At this year’s school tax rate this means an automatic tax increase of $275 PLUS whatever money the school district needs to make up, jacking the average median property homeowner’s tax before the school district even begins to add on its increased expenses.


 


The person over 65 owning a median priced home currently with a $5,790 STAR EXEMPTION, gets creamed with the 18%, losing $1,042 reducing the amount of their STAR EXEMPTION to $4,748—that jumps the over-65er homeowner property tax $537 up from the $6,534 they are paying this year.


 


On top of that, do you own a home valued at over $1.4 Million? Well you lose your STAR EXEMPTION completely. The governor’s budget eliminates the STAR Exemption for homes valued over $1.4 Million. That’s a lot more taxes for you millionaire home owners out there.


 


 


Concepts to ponder:


 


At a recent seminar held January 11 at the American Enterprise Institute in Washington, D.C., blueprints for the school district of the future were discussed  by Steven Wilson of Ascend Learning and John Chubb of the Edison Learning Institute before a group of assembled educators. The two presented papers that challenged the shibboleths of education today, including the belief that  small class size increases achievement(not demonstrated by research), and challenged districts to use more technology to instruct students in new media, stratify classes according to achievement, among other practices that have been successful in the most successful school systems around the world including charter schools.


 


The eye-opening conference may  be viewed on C-Span at 


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MR. WHITE PLAINS Remembered During Saturday Memorial.

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WPCNR MILESTONES. By Peter Katz. January 18, 2010: Family, friends, associates and acquaintances filled North Broadway’s White Plains Presbyterian Church on Saturday to remember and celebrate the life of Robert F. Ruger, who was fondly known as “Mr. White Plains.” He died January 7th at age 97.


 



Mayor Adam Bradley designated January 16 as Robert F. Ruger Day in White Plains, and presented a proclamation to the Ruger family, shown being accepted by Bob Ruger’s grand niece Kasey Glass. Photos, Courtesy, Peter Katz


 


As people entered the church, in addition to receiving a printed program, they were given and invited to wear a yellow wrist band bearing the phrase, “Where Virtue Goes, Fortune Follows.” That is the translation of a Latin phrase which was inscribed on a gold ring given to Mr. Ruger by his mother when he was 21-years-old. Mr. Ruger continuously wore the ring, and often expressed his belief in the truth of that phrase, noting that his fortune has not been monetary, but rather in family and friends.


 


 






Officiating at the event was The Reverend C. Carter Via of the Presbyterian Church, who praised Mr. Ruger as having been “…the most considerate person in the world. Bobby was a man who was intrinsically ethical,” he said.


 


 Reverend Via urged those attending the memorial,  “Don’t just say that Bobby was a great guy – honor him with the way you live your life.” Michael Doehring, a church elder, noted that not only had Mr. Ruger lived his entire life as a White Plains resident, but also had been a member of the White Plains Presbyterian Church for almost a full century, one-third of its 300 years in existence.


 


Mr. Ruger’s grand niece, 22-year-old Kasey Glass, told the assemblage that she first met “Uncle Bobby” when she was adopted and brought to the U.S. from her native Peru. She was only a few weeks old at the time, but he ultimately became and will always remain her “best pal.”


 



 


White Plains’ Mayor Adam Bradley detailed Mr. Ruger’s contributions to city government through his service on the Common Council and on a variety of boards and commissions.


 


“In every government position he held, he used his analytical skills,“ Mayor Bradley said, while noting that even more significant was the manner in which Mr. Ruger applied compassion to his dealings with people. Mayor Bradley announced that he had issued a proclamation naming Saturday January 16, 2010, as Robert F. Ruger Day in White Plains. However, he also expressed the belief that Mr. Ruger’s legacy of contributions will last far beyond a single Saturday and have forever made White Plains a better place.


 



 


Susan Katz, Executive Director of the White Plains-based theater company Westco Productions, told about Mr. Ruger’s love for the theater, his performances in summer stock in Vermont and Maine, and his being president of Westco’s Board of Directors from 1992 to 2005.


 


On a personal note, she reminisced about how Mr. Ruger loved giving people hugs, and was so well known and respected. She told about taking Mr. Ruger to see his favorite musical, Rodgers & Hammerstein’s “Carousel,” a few years ago at the Candlewood Playhouse in Connecticut. “We had dinner first at a little restaurant near the theater and, don’t you know, Bob ran into someone from White Plains who knew him.”


 



 


Brian Wallach, a White Plains resident and friend of Mr. Ruger for more than 50 years, recalled his work with the White Plains Beautification Foundation and his constant efforts to make the city visually appealing.


 



 


Andrew Morzello, a close friend and past president of the White Plains Rotary Club and past District Governor of the Greater New York District of Rotary, recalled that Rotary was but one of the many civic organizations in which Mr. Ruger was active.


 


In addition to being a founder of The Thomas H. Slater Center in White Plains, Morzello noted that Mr. Ruger was instrumental in raising funds to start the Slater Center’s drum corps. He spoke of Mr. Ruger’s involvement in The Salvation Army, and the awarding to Mr. Ruger of The Salvation Army’s Glass Shield Award.  Morzello told of how, at age 88, after the events of September 11, 2001, Mr. Ruger manned a Salvation Army truck providing food and beverages to rescue and recovery crews at “ground zero.”


 



The Reverend Dr. Lester Cousin of the Calvary Baptist Church in Which Plains provided an emotional rendition of the inspirational song, “If I Can Help Somebody,” which he said reflected Mr. Ruger’s approach to life and his dealings with people.


 


 



The church choir with soloist Phyllis Worthington are pictured performing “Amazing Grace.” Other selections were “Joy to the World” and “Ave Maria.”


 


A luncheon/reception followed where friends and family mingled and shared their favorite “Bob Ruger” stories.


 


 



 


Bob Ruger


1912 -2010


 

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Dr. Martin Luther King: An American Value

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WPCNR THE BIG EXTRA. News & Comment by John F. Bailey. January 18, 2010:  I wrote this column in 2004. It still stands relevant today, Monday morning at the Crowne Plaza Hotel in White Plains, the man, Dr. Martin Luther King, Jr. will be remembered. His birthday was last week.  I am not that familiar with Dr. King’s life, but I do know that he, like other great men of America who have their days, Dr. King’s name stands for a value that America holds dear.



 George Washington stands for honesty.  


Abraham Lincoln for freedom


 


Columbus for discovery,


 


Dr. King’s name stands for Opportunity.


 

 When I think of Dr. King, I think of the Selma marches, I think of Birmingham, I think of Little Rock, Arkansas, where he lead the African-American community in demonstrations asking for the right of equal opportunity in America: a seat on a bus wherever they chose; a restaurant or hotel of their choice; the right to apply for a job without being turned down because you were black. Blatant in-your-face-discrimination was publicized by Dr. King and America was shown it was not right.

 


It took fearlessness to do that. Who today has that fearlessness that Dr. King and his followers showed all of America?


 


Today, subtle discrimination denying equal opportunity, denying education, exploiting the poor and guaranteeing less opportunity are the evils that Dr. King, had he lived,  would be attacking today. 


 


When I write those sentences I just wrote, it seems incomprehensible to me that someone would deny another person that. When you think about it, it is an awful situation to think about. In the 42 years since Dr. King was murdered, the nation has come a long way in breaking down the visible barriers of racism based on creed and the color of one’s skin — and now, today, the language one speaks and where they are from. The education establishment continues to favor the English-speaking, the wealthied, and the well-situated.


 


Today the barriers to Equal Opportunity are more subtle and just as effective.


 


Barriers still exist: in the classroom. There is reluctance to deliver quality education to the black and Hispanic populations in America today.


 


The only reason there is a concentrated effort to do so are the state achievement tests which showed the shame of our education programs for minorities.


 


 On the other hand, there is the perception elsewhere that because your name and skin color are different, you automatically need help and are slow-tracked into remedial classes; the inclusion of the slower (read minority) children in one corner of a classroom so you can deal with the “problem children” all at once; the notion that it is all right to use millions of dollars meant for rebuilding poor performing schools with better buildings, better teachers, but is used to create educational  bureaucracies for the politically connected instead.


 


In the last ten years the products of this subtle unequal educational opportunity have been well documented and given a name: The Achievement Gap. The educational establishment invests millions in studies to find solutions to it and they have learned a lot about it. It takes more School District heads to stand up and say like Dr. King, “we simply are not going to educate half the population any more.”  


 


The lagging of minority youth is blamed on the home and family breakdown. Well then you have to bring more attention to the family unit and those youngsters’ home environment, putting the education in there. It’s expensive but if you want to solve the Achievement Gap you have to do that.  


 


The argument that you have to speak English in the schools and learn through English is  racial superiority. Of course you have to learn to speak English, but really, Bilingual education is how we English-speakers learn another language. Port Chester has achieved this — and WPCNR pointed this out to the White Plains School Board years ago. Why is this new?


 


Every new teacher being hired in the White Plains School District should be bilingual. And how about a new position in the Superintendent’s cabinet: an educator in charge of bilingual education and academic performance, just for starters.


 


Why not have teachers educate children in their own language with English simultaneously? It is proven to work in Port Chester and New Rochelle. It is time to stop the subtle prejudice that we do not want non-English speaking children in our towns and schools because they are too hard to educate and will cost us money to do that. They are children, you simply cannot throw them away because they do not speak English.


 


This discrimination Dr. Martin Luther King would find hard to take.


 


He would bristle at lowering standards for minorities, because he would see right through that argument, saying:  when are you going to raise the standards for my people because you don’t have to work any harder at educating them, if you do not raise your expectations for them.


 


I think Dr. King would look around today and appreciate how Blacks and Whites, Hispanics and Jews, Catholics and Protestants, Muslims and  other races mingle together in today’s America.


 


I think he’d observe we are all becoming more appreciative and respectful of each other. But, I do not think he would like today’s buzz word :”diversity” and our smugness about our diversity.


 


He would say that’s nice, but let’s keep our eye on the prize, to borrow the wonderful motto of the White Plains Department of Public Safety, let us treat all with integrity, professionalism, respect, and to that add opportunity.


 



Now, let’s think how Dr. Martin Luther King, Jr. would handle the present illegal housing situation in White Plains.


 


I believe Dr. Martin Luther King would take organizations in this town that circulate lists of rooming houses (without inspecting them for overcrowding), and call them out, if he were in White Plains today. He’d stand up there tomorrow morning and read list of homes and distribute it personally to the Mayor and say — clean up this disgrace. 


 


Dr. King was not  only politically incorrect, but  politically uncooperative.


 


He’d  bring the unsafely housed with him to breakfast tomorrow morning and introduce them all around to the rich and the powerful and the well-connected and show them the people whom they are treating like cruel political pawns by our leaders on the county and the city level – all over this county — just so political contributers are protected.


 


He’d ask each  to tell their stories at his breakfast. He’d prey for compassion from us the wealthy, the powerful and the decent, and the respectable to have compassion for the weak, the misdirected, the addicted and disturbed, and the mortgage-ravaged.


 


He’d bring the foreclosees and those forced out of their homes and ask those on the dais and the tables — how could you not help them out?


 


He’d ask White Plains leaders to accept the responsibility of leadership and by reaching out personally to the homeless to provide them meals and, perhaps jobs during the day, to welcome them in to White Plains somehow. To help them make a new start in White Plains in a firehouse, a church, or a vacant hospital. To challenge businesses to weave these persons into the fabric of the downtown, instead of telling them they are not welcome.


 


He’d challenge us  to step up our humanity,  as Dr. Martin Luther King, Jr. did when no one else would 39 years ago.


 


He’d shame  the two governments, county and city, for not treating the immigrants, the foreclosees, the homeless with simple human respect and adhering to the constitution, which prohibits you from being jailed for no reason – a policy incredulously being pushed by politicians who should read the constitution just once to reset their minds.


 



He’d ask White Plains to rise up and forgive the persons with the prison records who have done their time, and find jobs for them and through forgiveness, and respect for them,  melt away the homeless persons’ suspicions and resentments,  alleged by our “leaders.” 

 


And about our gangs: Dr. Martin Luther King would go out to the streets of Yonkers, Mount Vernon, Port Chester, New Rochelle, Peekskill – the cities where gang activity has been reported – and  speak to them about where they are going. It is difficult to say Dr. King would say to the gang members of our area.


 


But, I assure you he’d be in their midst confronting this problem and admitting it exists.


 


As we honor Dr. Martin Luther King Monday. Ask ourselves what Dr. Martin Luther King, Jr. would think of the way we have treated the less fortunate?  What he would think about how we have “reached out?” Would he approve of the way we are working with our youth, our Hispanic population, about how dollars are being used to make unsafe housing safe and why it cannot be policed better, about how dollars are being spent in school districts whether on educating people or creating buildings or stadiums; how dollars are being spent by organizations supposedly helping the afflicted, and how they are really doing, and what are they doing with the dollars.


 


He’d excoriate the variable and below prime mortages now being foreclosed as a new form of financial redlining invented by the financial establishment to exploit. He’d ridicule the efforts of the government to “save” billion dollar financial institutions while allowing homeowners to lose their houses.


 


Would Dr. Martin Luther King, Jr. approve?


  


He’d remind us that Jesus Christ chose to minister to the “hardcore” of his time. He went into their midst. He  healed them and made them fishers of men.


 


The way to honor Dr. King tomorrow  and at the “celebrated” holiday  next week is to honor the afflicted, help the troubled with dignity, not humiliate them, not shun them, not “throw them out.”


 


The way Dr. King would view our world today?


He’d observe that “we need work.”


That the lynchings and the shutting of school doors are gone, but the attitudes remain.


And he’d point that out with that his long finger pointing right at us.


He’d say, “I still have a dream.”


And he’d be pointing his finger at the double-standard of justice for the minority youth and the well-to-do wealthy person that will exist today.


He’d be calling upon all to keep our eyes on the prize and not on the power, the prestige, and the people who would steer us away from what needs to be done.

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Glen Hockley Sues BOE, Dennis Power in Federal Court over Civil Rights Violation

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WPCNR WHITE PLAINS LAW JOURNAL. By Peter Katz. January 16, 2010: WPCNR learned at the Federal Courthouse in White Plains this week that it will likely be another couple of weeks before a federal judge (Kathy Seibel) decides whether to allow a lawsuit growing out of Councilman Glen Hockley’s campaign for mayor to proceed to trial.



Former Councilman Glen Hockley, October, 2009. WPCNR News Archive


 The lawsuit originally was filed without an attorney by Hockley, White Plains resident Martin B. London, and the group Citizens for Glen Hockley. Former Mayor Delfino’s Executive Officer, the late Paul Wood, had planned to testify for Citizens for Glen Hockley, according to court documents.


The suit names Westchester Board of Elections Commissioners Reginald LaFayette and Carolee Sunderland, two of the Board’s employees, Jeannie L. Palazola and Douglas Colety, and White Plains Councilman Dennis Power.


 


The Judge gave the plaintiffs (Mr. Hockley and Mr. London) an opportunity to amend their original complaint to focus more on issues of interest to the federal court. The amended complaint alleges conspiracy with malicious intent to keep Hockley off the ballot for mayor, to suppress the vote during election day and to try to manipulate the results after election day. It alleges interference with constitutional rights and voting rights.

The lawsuit alleges that New York State election law was used to violate Hockley’s right under the first and fourteenth amendments of the constitution to run as a candidate for election, his right to associate for the advancement of his political beliefs, and his right of political expression as a candidate for Mayor of White Plains.


The lawsuit alleges that the right of voters in White Plains such as plantiff Martin B. London were violated because they lost their right to cast their votes effectively, their right to associate for the advancement of their political beliefs, and their right to political expression.

As you may recall, Hockley’s name was removed from the ballot, and he conducted a write-in campaign. Among other things, the lawsuit alleges that county election officials failed to stock machines with pencils for write-ins, as required by law…..and that poll workers were not properly trained in doing write-in votes and did not help voters with write-ins.


It alleges vote tampering, voting machine tampering, and irregularities and violations of election laws when the votes were counted. There were 45 pages of exhibits, designed to support the allegations.

The lawsuit asks for a jury trial; a finding that the Plantiff’s constitutional rights were violated; a new election; undefined compensatory and punitive damages; and, legal fees and costs.

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It’s Castelli vs. Harckham. Katonah CL Defeats WP’s Greene for 89th Seat Nod

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WPCNR BACKROOM BULLETIN. Special to The CitizeNetReporter. January 14, 2010 UPDATED 11:15 P.M. E.S.T.: Peter Harckham, the County Legislator from Katonah, defeated White Plains Alison Greene by a 13,000 to 7,000 “weighted” vote on the second ballot tonight at the County Democratic Convention at the Crowne Plaza Hotel for the nomination to run for White Plains Mayor Adam Bradley’s 89th District New York state Assembly Seat, which Mr. Bradley vacated when he became Mayor.


At the County Republican Convention, Rob Castelli was nominated for the 89th Seat. Mr. Castelli, speaking to WPCNR this evening, said he is hoping to obtain the Conservative and Independence Party lines as well. He said Harckham is vulnerable having supported Andy Spano on many issues as County Legislator, the recent affordable housing settlement in particular.


Harckham and Castelli have 4 weeks before the Special Election coming up February 9.


Mr. Harckham, quoted in a news release, gave this statement:


“I am extremely humbled and gratified to have earned the trust and support of my fellow Democrats.  With just a few short weeks to go before the election, I will strive to be worthy of that trust, and to present the voters of the 89th Assembly District with a strong voice to restore confidence and accountability in Albany.  I promise to run a strong, clean, competitive campaign that brings our message of new hope and confidence to the people of our district.”


Dr. Clifford Gevirtz, our correspondent reports, withdrew before the first ballot. Charlotte Watson did not withdraw, and after she finished third in the first vote, Harckham and Greene contended. 


Harckham will face a Republican candidate, reported to be Rob Castelli whom Adam Bradley defeated in 2004 in his bid for reelection for the 89th Assembly District seat,25,571 votes to 17,457.


Our correspondent said that Ms. Greene made a gracious speech in support of Mr. Harckham, and he, in turn, made an equally gracious acceptance speech.

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