NYC Comptroller John C. Liu on the Mayor’s Fiscal Year 2012 Executive Budget

New York City Comptroller John C. Liu today presented testimony before the New York City Council Finance Committee regarding Mayor Bloomberg’s Fiscal Year 2012 Executive Budget.

Comptroller Liu’s testimony as prepared for delivery is below:

Good afternoon Chairman Recchia and members of the Finance Committee, and thank you for allowing me the opportunity to present testimony on the Mayor’s Fiscal Year 2012 Executive Budget.

The Mayor’s FY 2012 Executive Budget totals $65.7 billion after various prepayments. The FY 2012 budget is the product of a series of actions which closed a $3.26 billion gap in the July 2010 Financial Plan stemming from a structural imbalance where expenditures exceeded revenues. The gap was further exacerbated by State actions that took place during the year.

While it is estimated that FY 2011 will end with a $3.217 billion surplus, when compared with the $3.646 billion surplus similarly transferred from FY 2010 to FY 2011, it becomes clear that in the current year, the City is drawing on more resources than it is generating. However, if past history is any indication we can anticipate that the year may end with a budgetary surplus.

Overall spending in the FY 2012 budget has decreased by 0.4 percent when compared to the FY 2011 budget. But these numbers mask the fact that while overall expenditures have been held flat, the City-funded portion of the budget has increased from 67.1 percent of the FY 2011 budget to 70.7 percent of the FY 2012 budget. The City-funded portion of the budget is $2.2 billion greater than the FY 2011 budget and $2.1 billion more than was planned a year ago. The Financial Plan assumes that by FY 2015 the City-funded portion of the budget will exceed 74.5 percent. This trend is a direct result of a reduction in State and Federal aid to New York City.

As we hear talk of layoffs and cutbacks it is critically important for the City to identify as many areas of savings as possible.

You are well aware of the outcome of my office’s work on the CityTime issue. As a result of our steadfast oversight, the project is now nearing completion without any additional cost to the taxpayers. While that may be good news, it does not make up for the fact that the costs ballooned from $68 million to more than $700 million. My office will continue to work closely with the investigative authorities on this issue in hopes of possibly recouping some of the money that has been allegedly funneled to subcontractors on the project.

In addition, it was a welcome sign that the Department of Education has decided to cancel a $43 million contract with another high priced consultant, Future Technology Associates, who have been suspected of utilizing subcontractors to overbill the City. My office has been conducting an audit into the vendor for quite some time and will continue to do so in order fully disclose what really went on.

While we are discussing the DOE, I would like to point out that a review of OMB documents within the past week has found that after years of looking the other direction, the Department of Education has decided to finally seek additional Medicaid reimbursement funding from the State for occupational and physical therapy and speech and language services. The Executive Budget assumes an additional $100 million in revenue as a result of increased Medicaid reimbursements on top of the previous estimate of $17 million presented in the Preliminary Budget.

My office has been working with the City’s Office of Management and Budget and the UFT to identify the actual value of funds eligible for the City. While the current estimate of $117 million is enough to significantly impact the cuts proposed to the classroom, we believe this to be a cautious estimate. The City may be eligible for greater reimbursements, which would free up funds for use elsewhere.

The $100 million in additional reserves have been allocated to cover various other expenses in the DOE budget, such as $48 million for general education non-personal service and $26 million for charter schools. These dollars and any additional Medicaid funds realized during Fiscal Year 2012 should be used to help offset the proposed teacher layoffs, which have a more direct negative effect on classroom services.

In the Executive Budget, the Mayor has allocated nearly $1 billion towards funding anticipated changes in the actuarial assumptions and methods used in computing pension contributions. The City actuary is currently reviewing an independent audit of the rate change and will offer his recommendations to the pension boards. While it is expected that the actuary will recommend a change in the assumed rate of return of the City’s pension funds, there is more uncertainty about what other modifications would be proposed. As such, the eventual cost of the any recommendations is unknown at this point. It is also uncertain as to when the recommendations and the eventual changes would take effect.

Another potential area of savings is through the City’s settlement of claims. My office is responsible for authorizing monetary amounts of settlement where we feel the City may have been at fault for personal injury or property damage. The City has indicated that they expect a rise in the cost of settlements to occur. However, my office anticipates that based upon historical data, the City is overestimating this total by at least $50 million.

As always, my office will seek the most fair and equitable results in our claims settlement process and continue to act in the best interest of the taxpayer when doing so.

We have also identified some risks to the Mayor’s plan. Most significant is the assumption that contract discussions with the UFT and CSA will not result in any additional cost to the City. These are placed as risk because the Mayor has not budgeted for raises consistent with those of other municipal unions, and has instead relied on a labor strategy that uses productivity initiatives to offset cost.

Another risk to the Mayor’s plan is his underestimation of overtime. In fact, my office has estimated that the overtime costs will be upwards of $195 million more than the Mayor anticipates.

As we gradually move out of this recession, it is important to note that the City is continuing on a steady but slow path to recovery. Despite mostly positive indicators for the City’s short-term economic condition there exist the possibility of negative externalities that could hinder the current expansion. Factors outside of the City’s control such as rising energy prices, the continued depression of the construction industry specifically within the residential construction sector, and the potential European debt crisis can be expected to produce additional drag on the US and local economies.

One area that has shown strength is our City’s pension systems. After posting returns of 14 percent last Fiscal Year, the most recent data show that the funds are up more than 20 percent in the current year. These gains will help offset future payment towards the pension systems.

My office released a study last week, the first of its kind, which revealed the past decade of fluctuation in the markets will cause pension costs to rise in the short term. However, due largely to already enacted benefit reforms that took place between 1995 and 2009 the long term costs to the City will steadily decline. These projections are sound and have been verified by independent professional actuaries.

The study shows that over the next 30 years City pension costs as a percentage of the City's budget will decline from 11.4 percent in FY 2016 to 5.1 percent FY 2040.

I hope I was able to be helpful today in presenting an accurate look at the City budget, as well as provide some areas worth exploring during phase of the budget process. As always my office is available to assist you in any way necessary.

Rep. Anthony Weiner (D-NY) Strikes The Last Word

Today, House Republicans brought another bill (HR 1216) to the House floor that does not address jobs and wastes time in a futile attempt to repeal part of the Affordable Care Act. House Democrats are staging a "mini-filibuster" by "striking the last word" allowing them five minutes of time to discuss their strong opposition to the Republican-passed budget which ends Medicare as we know it and forces seniors to pay over $6,000 more a year.

Weiner: I move to strike the last word Mr. Chairman. Mr. Chairman, you may recall I was standing here approximately two hours ago waiting to speak with several other members on the efforts of my Republican friends to eliminate Medicare as we know it and for reasons that are known only to the Chair, I was denied the ability to do that. Well, I’m back. And just to review the bidding, here’s where it was before that order was made. We had the Chairman of the Republican Congressional Campaign Committee, a good man, a guy I like, stand down in the well and say, ‘Oh, no’ (and this by the way is someone who is elected by the Republican members to represent them in races all around the country) saying that the Ryan plan wasn’t a plan it was and I’m quoting here, “a construct to develop a plan” and he said the proposal is not a voucher program and then he said it was a one size fits all, that Medicare was draining our economy is what he said.

Well, ladies and gentlemen, that might be the rationale for our Republican friends wanting to eliminate Medicare, but none of those things are true. It is not a ‘construct to develop a plan’ it is the proposal of the Republican party of the United States of America to eliminate Medicare as a guaranteed entitlement. If you don’t believe me, go get the book that they wrote, go get the budget that they wrote, go get the bill that they wrote.

Sen Addabbo: I Support Amending Public Health Law to Establish Medicaid Identification & Anti-Fraud Biometric Technology Program

Scanners to Be Used by Hospitals, Clinics, Pharmacies for Patient ID, Greatly Reducing Costs of Fraud

NYS Senator Joseph P. Addabbo, Jr. (D-Queens), a member of the Senate’s Committee on the Aging, supports a measure pending in the Legislature, A.6555/S.4384, which would amend the public health law to allow New York to rapidly roll out a fraud prevention technology program many legislators say is well overdue.

The proposal would implement a technology-based fraud prevention mechanism in hospitals, clinics and pharmacies all across New York by relying on biometric technology. Biometrics is the science and technology of measuring and analyzing biological data. In information technology, biometrics refers to technologies that measure and analyze human body characteristics, such as DNA, fingerprints, eye retina and irises, voice patterns, facial patterns and hand measurements, for authentication purposes.

The legislation will do away with the current and faulty practice of allowing each county to issue its own Medicaid card and strengthens weak identification requirements to access Medicaid services. The implementation of biometric technology in the Medicaid program will bring mass fraud to a halt due to the strong verification and authentication measures of the system. It will stop Medicaid payments for fraudulent services at the point of service rather than the “pay and chase” behavior New York has become too comfortable using.

The legislation would require the implementation of biometric palm readers and software in all hospitals, health clinics, and pharmacies. The technology would catch duplicate prescription requests and medical services. In addition to security, the driving force behind biometric verification has been convenience. Biometric devices, such as finger scanners, consist of: a reader or scanning device; software that converts the scanned information into digital form and compares matches; a smart card that stores the biometric data authentication, identification and payment authorization. The law would also require the NYS Department of Health to provide a report to the legislature on the cost and implementation of the Medicaid identification and anti-fraud biometric technology program within six months of enactment.

Explains Senator Addabbo, “Billions of dollars in Medicaid fraud are being wasted annually in New York State, and with anticipated further major cuts in Medicaid funding on the horizon, I am hopeful that this legislation could result in saving the state needed funds and protect health care for many individuals.” According to the Senator, the state will spend over $54 billion dollars this fiscal year (2011-2012) on Medicaid. Experts predict that 10%, or over $5 billion, comprises fraudulent charges to the state’s health insurance for the poor, disabled and elderly. It is Addabbo’s contention to cut out the fraud on such a tremendous scale first, before the state cuts billions of dollars in vital services for our children and the elderly infirm. “I believe that Medicaid’s skyrocketing expenditures are mostly caused by rampant fraud. It’s time our state legislature addresses this issue for our people and looks to prevent the annual theft of over $5 billion of taxpayer funds. Fraud prevention technology is the only practical mechanism to stop Medicaid fraud, abuse and overuse of services,” Addabbo concluded.

The $20 million one-time investment in the technology needed for this anti-fraud measure can be raised by implementing a one-penny-per-prescription charge for a six-month period on each of the $4 billion Medicaid-paid prescriptions written each year (on average, each Medicaid recipient fills 100 prescriptions per year and there are over four million Medicaid recipients in New York).

The legislation is now being reviewed by the state Senate’s Committee on Health before passage and being sent to the governor for his signature. If passed, the law will take effect immediately.

Highest NY Medicaid Billing in Middle Class Queens Nabe by Chris Glorioso - NBC New York

Watch original...

Small Middle Class Enclave Generates Many Medicaid Bills

View more videos at: http://nbcnewyork.com.

Medicaid is a health care program reserved, primarily, for the poor.

Benefits are based on federal poverty guidelines. To be eligible in New York state, a single person must earn less than $17,000 a year.

With that in mind, you might expect the most impoverished neighborhoods would be the ones that generate the most Medicaid bills.

That's not true.

It turns out the state’s highest Medicaid billing total can be found within a relatively affluent community: Rego Park, Queen

The analysis found Rego Park -- a neighborhood with a median income above $50,000 -- generated more than $1.5 billion in Medicaid reimbursements in 2010. Because the health care program is aimed at helping poor people, the findings had regulators scratching their heads.With the help of the New York Office of the Medicaid Inspector General, NBC New York examined Medicaid data from all of the state’s nearly 15,000 zip codes.

“Why is Rego Park the highest? It’s something we have to look at,” said Deputy Medicaid Inspector General Michael Little.

Rego Park occupies a triangular plot of central Queens, roughly bordered by Woodhaven, Yellowstone and Queens Boulevards. The enclave is dotted by dozens of pharmacies, dentists, and medical device makers, but the neighborhood has no major hospital.

With 7 percent of the state’s $20 billion Medicaid budget passing through the 1.9-square-mile neighborhood, some observers believe Rego Park is the kind of community that deserves more regulatory scrutiny.

“These are places where the Medicaid Inspector General’s Office need to look at more closely to make sure that there is real honest alignment between the services that are provided and the needs of the patient,” said Paul Howard, a senior health policy analyst at the conservative think-tank Manhattan Institute.

Investigators who police New York’s Medicaid program use software designed by Salient Management Company, an upstate developer of data management tools. The data-mining computer program helps find suspicious patterns and unusual trends in health care billing. The office of the Medicaid Inspector General has about 50 investigators to battle fraud all over the state.

“Fifty investigators for billions and billions of dollars in claims. That means they have to be able to sift through data very quickly to get to the most likely targets for recovery,” said John Amisano, Salient senior health care adviser.

After learning the state’s single highest Medicaid billing total is within Rego Park, Michael Little’s office began to use the software to look deeper into the numbers.

“Why are they the biggest? Is it normal? Is it expected,” Little said.

By running data queries, Little discovered one of the state’s largest Medicaid managed care contractors uses a Rego Park address to process bills -- a clear reason for the high billing volume.

That doesn’t mean investigators won’t continue to have their eyes on the Queens neighborhood.

In his data query, Little also discovered pharmacy reimbursements make up the second largest share of Medicaid bills in Rego Park. That is significant because Rego Park pharmacists have been snared for fraud in the past. Most recently, federal prosecutors busted Rego Park’s ASA Pharmacy for taking part in a $2.5 million kickback scheme.

There are 13 Rego Park medical service providers who have been banned from participating in Medicaid.

“Our job is to prevent fraud, waste and abuse in the Medicaid program and New York State Legislature, when they established our office, did not want us to wait around for it to bite us,” Little said.

Readers who have information about Medicaid fraud in New York, New Jersey, or Connecticut, can report tips by clicking on the links.

The First Guess: Lotto Nation by Keith Olbermann - FOK News Channel

Watch original...

Keith Olbermann's latest at The FOK News Channel -- The First Guess: Lotto Nation:

Three-time Murrow-Award Winner Keith Olbermann is the "K" in "Friends Of Keith" and "Friends Of Keith" is the FOK in the not-for-profit FOKNewsChannel.

News and Notes from Rep Anthony D. Weiner - NY 9th Congressional District

GOP Budget Would Cut Queens to Its Core

Weiner Study Highlights Impact of More Than $25 Billion

in Funding Cuts To Borough Over 10 Years

Today, Rep. Anthony Weiner (D – Queens and Brooklyn) released a study highlighting how the GOP budget plan to be considered this week would cut funding to Queens by more than $25 billion over 10 years, slashing money for cops, transportation, seniors and education.

Under the Republican budget plan, more than $25 billion in federal aid to Queens would be cut over 10 years. During a time when the City is facing a massive budget deficit, this proposal would force major cuts in programs like Medicare and Medicaid, hurting countless seniors and low-income residents in the borough. Title I education funding would be cut by over $205 million, and federal grants to the NYPD would be cut by $111 million. This could mean that more than 425 cops would be taken off the streets of Queens.

Additionally, if the GOP budget passes, over the next decade the MTA would lose over $667 million that is used to fund vital rail and bus infrastructure and security projects throughout Queens, and the more than 300,000 seniors in the borough would lose their guaranteed Medicare benefits and be forced to pay additional premium costs.

"The GOP budget is not about debt reduction, it’s about increasing the dangerous inequities in our economy and society. It is an assault on the middle class and those struggling to make it.”

Weiner’s study found the following:

CUTS TO QUEENS OVER 10 YEARS: MORE THAN $25 BILLION

Medicare

· The over 300,000 seniors in Queens would lose their guaranteed Medicare benefits and be forced to pay premium costs that the new proposed subsidy doesn’t cover. (Centers for Medicare and Medicaid Services, and U.S. Census)

Medicaid

• Medicaid costs would be shifted to Queens residents as state and local taxes revenue would need to cover the over $20 billion in Medicaid cuts over 10 years contained within this budget proposal. (NYC OMB and Center for Budget and Policy Priorities)

SNAP Program

• The SNAP Program will now be tied to a block grant program with benefits contingent upon on work or job training. Over 96,000 Queens residents would lose their SNAP benefits and Queens would see $1.7 billion cut in funding over 10 years. (U.S. Department of Agriculture and U.S. Census)

Education

• Title I funding, which provides funding for primary and secondary schools, would be cut by over $205 million over 10 years.(NYC Independent Budget Office (IBO)
• Pell Grants which provide grants for lower income college students would be cut by $1 billion over 10 years and the maximum Pell Grant award would be cut by $819 per student. (NYC Office of Management and Budget (OMB) and U.S. Census)

Law Enforcement

• Federal grants to the New York Police Department for Queens would be cut by $111 million over 10 years. This could mean that 425 cops are taken off the streets of Queens. (NYC IBO)

Housing

• The Low Income Heating and Energy Assistance Program (LIHEAP) which helps the lowest-income New Yorkers stay warm would be cut by over $68 million over 10 years. (NYC OMB)
• Section 8 vouchers which provide vouchers for low-income families to locate decent, safe, and affordable housing would be cut by over $83 million to NYC over 10 years. (NYC IBO)
• The Public Housing Operating Fund, which provides subsidies to public housing agencies, would be cut by nearly $310 million over 10 years. (NYC IBO)
• The Community Development Block Grant (CDBG) program, which funds local Queens community development activities such as affordable housing, anti-poverty programs, and infrastructure development, would experience over $53 million in cuts over 10 years. (NYC IBO)
• The HOME investment partnerships program, which works with nonprofit groups to build, buy, and rehabilitate affordable housing would be cut by $4 million over 10 years. (NYC IBO)
• The Public Housing Capital Fund, which provides funding for the development and modernization of public housing, would be cut by $22 million over 10 years. (NYC IBO)

Transportation

• MTA would lose over $667 million over 10 years that is used to fund vital rail and bus infrastructure and security projects throughout Queens. (Metropolitan Transportation Authority (MTA))

Human Services

• The Child Care and Development Fund which provides subsidies for child care for low-income families so that parents can work would be cut by nearly $20 million over 10 years. (NYC IBO)
• Community Services Block Grants which provides funding to assist with employment, education, nutrition and emergency services for the homeless, migrants and the elderly would be cut nearly $10 million over 10 years. (NYC IBO)

Infrastructure

• The Drinking Water Revolving Fund which works to ensure that local residents receive clean and safe drinking water would be cut by $150 million for Queens. (NYC OMB)
• The Clean Water Revolving Fund which works to ensures that local communities can provide clean and sanitary wastewater treatment services for their residents would be cut by $778 million over 10 years for Queens. (NYC OMB)

Job Training

• Queens job training and workforce investment which provides adult workforce training, job-related activities for young adults, and dislocated workers programs would be cut by over $94 million over 10 years. (NYC IBO)

Weiner on President’s Budget Speech: “Today, We Go on Offense”

With President Obama set to give a major speech today outlining his plan for the budget, Rep. Anthony Weiner (D – Queens and Brooklyn) released the following statement:

"Now it's our turn. For months, we have heard the one-note attacks by the GOP on the middle class and those struggling to make it. Medicare, student loans and women's health have all been under attack.”

“Today, we go on offense.”

Weiner Announces $281 Million in Pell Grants for Local Students

More Than 67,000 Will Receive Vital Education Aid in Queens Alone

Today, Rep. Anthony Weiner (D – Queens and Brooklyn) announced that more than 67,000 Queens students will receive $281 million in Pell Grants this year to help cover the rising costs of a college education.

Federal Pell Grants provide need-based assistance to low-income students to help promote access to college and postsecondary education. This year, students across the nation are eligible to receive up to $5,550 each in Pell Grants, which are not required to be repaid.

In Queens alone, over 67,000 students will receive more than $281 million in aid – with an average grant of $4,136 per student. The announcement, however, comes in the midst of attempts by Congressional Republicans to cut the important grant by $1 billion over the next ten years in Queens.

Republicans in Congress, led by Rep. Paul Ryan, are proposing to reduce the maximum Pell Grant award by $819 per student beginning next year. If successful, the maximum Pell Grant will be slashed to $4,731 – a reduction of more than 14 percent. With the cost of higher education rising every year, the GOP proposal would devastate a vital lifeline for students in the borough.

"During a time when colleges are raising tuition, Pell Grants are an important tool in helping students get the education they deserve and the education they need to succeed in the 21^st century workplace,” Weiner said. “$281 million in Pell Grants for Queens is great news, but it’s also a reminder of what’s at stake next year if the draconian budget being pushed by Republicans actually passes.”

New York State Comptroller Tom DiNapoli Releases Audits

New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued:

New York City Department of Education, Non-Competitively Awarded Contracts (Follow-Up) (2010-F-26)
The New York City Department of Education must comply with applicable procurement requirements when awarding non-competitively bid contracts. In audit report 2008-N-1, DiNapoli’s auditors examined whether the department complied with requirements and found that it didn’t. When auditors followed up, they found that department officials had made significant progress in correcting the problems identified in the initial report.

Department of Health, Inappropriate Medicaid Payments for Dental Services Provided to Patients With Dentures (Follow-Up) (2010-F-33)
The Department of Health administers the Medicaid program. In audit 2008-S-125, DiNapoli’s auditors reviewed claims for a five-year period and found that dentists may have been overpaid as much as $2.9 million for services provided to patients with dentures. Auditors determined that the Medicaid claims processing system, eMedNY, lacked the controls necessary to detect and prevent such overpayments. Auditors recommended that appropriate controls be developed and implemented. When they followed up, auditors determined that department officials made some progress in correcting the problems they identified but improvements were still needed.

City University of New York, Kingsborough Community College: Selected Financial Management Practices (Follow-Up) (2010-F-39)
The City University of New York consists of eleven senior colleges, six community colleges, and several other specialized and professional schools. In audit report 2008-N-9, DiNapoli’s auditors examined whether one of the community colleges (Kingsborough) complied with requirements relating to payroll, procurement and waiving of tuition, and found certain instances of non-compliance in all three areas. When auditors followed-up, they found that officials had made progress in correcting the problems they identified.

State Education Department, St. Francis de Sales School for the Deaf: Selected Financial Management Practices (Follow-Up) (2010-F-40)
St. Francis de Sales School for the Deaf is one of 11 private schools that receive operating aid directly from the state to provide educational services to disabled students. In audit report 2008-S-160, auditors identified a number of internal control weaknesses in the areas of procurement, cash disbursements and payroll. Auditors also found that the school’s board of trustees was not providing effective oversight of financial operations. When auditors followed up, they found that officials had made significant progress in correcting the problems identified, but improvements were still needed.

Office of Parks, Recreation and Historic Preservation, Natural Heritage Trust, Sources of Trust Revenues (2009-S-11)
The Natural Heritage Trust maintains over 200 custodial accounts for account holders, including the Office of Parks, Recreation and Historic Preservation. DiNapoli’s auditors examined whether Office of Parks revenue was incorrectly deposited into the custodial accounts of the trust. They found that more than $3.5 million in revenue was deposited into trust accounts incorrectly. Auditors recommended the Office of Parks recover the funds and improve controls over revenue.

Metropolitan Transportation Authority, Minority and Women’s Business Enterprise Reporting (2010-S-9)
State agencies and public authorities are required to promote the participation of minority-owned business enterprises (MBEs) and women-owned business enterprises (WBEs) in state contracts and procurement opportunities. Specifically, agencies must establish annual goals for such participation and make a “good faith” effort to achieve these goals. DiNapoli’s auditors examined the Metropolitan Transportation Authority’s performance and found that it was establishing annual goals and making a good faith effort to reach them. However, the MTA’s goals were unreasonable, and as a result, they have consistently fallen short of their goals. Auditors also found that the MTA was not accurately reporting results of its efforts and was overstating its procurements. Auditors recommended improvements to comply with contract requirements.

SENATOR ADDABBO: LET'S GET TO WORK FOR 2011

With the holiday season over, NYS Senator Joseph Addabbo, Jr. (D-Queens) says it’s time to focus on restoring faith back to the residents that their state government will be responsive to their concerns: “Elected officials have a lot of work to do in making people know that their state legislature can operate in a professional and responsible manner.” The Senator understands that this will not be an easy task, given the general frustration among the public and the previous dysfunction in Albany.

What does Addabbo hope to accomplish in 2011? Well, according to the Senator, among the most common requests from his constituents is to lower property and other taxes, along with a cap in state spending. Addabbo stated that he is hopeful that lower property taxes, a restoration of the STAR rebate, and a reduction in other taxes and fees can be obtained with additional spending cuts and an improved economy. He also intends to continue the legislature’s efforts in attacking Medicaid and insurance fraud, which could result in a savings of approximately $9 billion to the state. Addabbo said he also heard many people request a restoration in library and senior center funding.

Other issues Addabbo wants to address in 2011 are ethics and legislative reform. Addabbo is seeking to introduce a law that would expel a state elected official from office if convicted of a felony or certain misdemeanors. He also wants to start the discussion and process of creating term limits for state elected officials, just as it was overwhelmingly approved by voters for New York City electeds. Addabbo said there should be an independent, nonpartisan redistricting process, so that districts will not be redrawn in a way that is unfair to the residents of any district. He wants to work on creating more transparent election campaigns that see a reduction in large corporate donations that have influenced candidates in the past. Addabbo believes that there must be a change in the way Albany conducts its business on behalf of the people of the state, but that the change will not come easy. “There has to be a different way of thinking and ideology in Albany. I am hopeful other state representatives see it that way, too,” Addabbo stated.

To grow jobs in these tough economic times, Addabbo said he will continue working with small businesses around his district to obtain energy savings through audits of their premises by National Grid and Con Ed, and offering tax credits to small businesses that hire disabled individuals, seniors and unemployed veterans. In addition to the approximately 1,000 construction jobs that the new Resorts World New York will bring to Aqueduct Racetrack, the Senator is working with Genting to ensure that future job opportunities at the site are made available to qualified residents.

“We must have a government people can finally believe will work for them and for their interests. When I go back into legislative session this month, the people I serve can believe that I’ll do just that for them,” Addabbo concluded.

Weiner Urges Paterson to Increase City Medicaid Funding

Says State Plan Shorts City Up to $900 Million in Stimulus - Letter to Governor Says It Is ‘Simply Unsatisfactory’

Representative Anthony Weiner (D – Brooklyn and Queens), the New York City Democratic Whip, today sent the following letter to Governor Paterson:

March 5, 2009

The Honorable David A. Paterson

Governor of the State of New York

State Capitol

Albany, NY 12224

Dear Governor Paterson:

As a member of Congress who helped write the American Recovery and Reinvestment Act, and, most importantly, as a member of the New York City delegation, I write to express my concern that the state’s plan to allocate Medicaid savings shorts New York City.

In New York State, the federal government covers 50 percent of the Federal Medicaid Assistance Percentage (FMAP) program costs, while the state and counties cover the other 50 percent. The State then pays roughly 66 percent of the non-federal portion of FMAP, with the localities paying the other 34 percent. Yesterday, when you announced the local shares under the FMAP program for New York City and all the counties, there is a clear discrepancy in funding allocations. The State is not keeping 66 percent, the percentage it pays into the program, of the FMAP funds, but instead is keeping between 76 and 80 percent.

The FMAP program provisions of Public Law 111-5, the American Recovery and Reinvestment Act are clear in providing that localities that bear the burden of Medicaid costs see their share of fiscal relief. If properly allocated, the City of New York should receive up to $2.8 billion. Under the announcement by your staff, the City would be shorted up to $900 million. This is simply unsatisfactory.

I look forward to your prompt compliance with the intent of Public Law 111-5.

Sincerely,

ANTHONY D. WEINER

Member of Congress