Join the GOOGLE +Rubber Room Community

Saturday, February 14, 2009

Acountability Data - Unknown, To Be Announced

In New York City and New York State, there seems to be no limit to the amount of money (in millions, folks!) that can fix the basic data-gathering problems that exist. It seems to me that perhaps the Klein/Bloomberg Corporation is benefitting from this mess, as "they" are the spokespersons of success. What if the public had accurate information that "they" were NOT successful, then what? Are we, the public, to believe that we cannot get an accurate interactive telecommunications system in place in 2009?

I dont believe it.



SCHOOL DATA AN ED. TECH WRECK
By YOAV GONEN Education Reporter, NY POST
LINK

February 11, 2009 --
Less than three years after unveiling what they called a "groundbreaking" $30 million education data system, state officials are embarking on a costly effort to fix the problem-plagued platform.

The move by the state Education Department stems from complaints that the massive system is slow, laborious and error-filled.

It contains academic data on every New York public-school student in kindergarten through 12th grade, and is used to determine whether schools have met performance targets.

"You can wait 15 minutes while you watch this cube turning, trying to log on to the system," griped one middle-school principal.

Similar complaints have been lobbed by principals against the city's $80 million school data system.

Members of the Board of Regents said yesterday they're seeking nearly $8 million from the federal government to help with improvements to the state system. The fixes will include a redesign of the data infrastructure and the appointment of a new team to oversee the work.

As Schools Face Cuts, Delays on Data System Bring More Frustration
By ELISSA GOOTMAN, NY TIMES, October 24, 2008

An elaborate $80 million data and information system that was supposed to be ready in September to allow New York City public school parents to see things like which courses their children need to graduate, or how their test scores compare with citywide averages, has been unavailable even to school principals so far this fall. In its absence, 21 principals have used up to $13,000 in school funds for a more bare-bones data-management program that was developed by staff members at a Brooklyn high school eager to track their own data in an age of accountability.

The status of the information system — known as ARIS, for Achievement Reporting and Innovation System, developed by I.B.M. and a group of subcontractors — is touching a raw nerve as schools throughout the city brace for $185 million in budget cuts.

Ernest A. Logan, (pictured below with Mayor Bloomberg, Joel Klein and Deputy Chancellor Dennis Walcott) president of the Council of School Supervisors and Administrators, the union that represents the city’s principals and assistant principals, said that he had had “major concerns” about the progress and cost of ARIS, and that this had been the topic of “ongoing conversations” with Schools Chancellor Joel I. Klein.

“For something that would supposedly be a resource for schools and school leaders, it really has not come through as it should have,” Mr. Logan said. “I can understand the desire to have something that is supposedly helping, but I’m now looking at the amount of money that we put into this thing, especially when we’re thinking about cutting back.”

One Brooklyn elementary school principal — who, like a half dozen other principals interviewed, spoke on the condition of anonymity for fear of retribution from the Education Department, said in frustration:

“Principals are held accountable for everything, as you well know, but I.B.M. isn’t held accountable for $80 million that they’ve been paid for a system that they haven’t been able to get working?” A March 2007 news release announcing the I.B.M. contract described ARIS as a “first-of-its-kind data management system” that would “make innovations at one school available” to others, and projected that data would be available to teachers and administrators that September and to parents a year later.

James S. Liebman, (pictured above) the Education Department’s chief accountability officer, said on Thursday that the project was “proceeding in an appropriate manner” and “in the way we anticipated.” He said that parents would begin gaining access to the system in December, and noted that Mayor Michael R. Bloomberg, in his State of the City speech in January, said that ARIS would be online by the fall, not September specifically.

Mr. Liebman said that 7,500 to 9,000 school employees, including principals, certain teachers and central Education Department staff, had access last year to ARIS, which at that point included basic demographic information, as well as data used to compile the city’s A through F report cards, like credit accumulation, attendance and scores on Regents exams and other state tests.

He said that the system was shut down in July for an upgrade and that it would be back online for principals by the first week of November with more detailed student information as well as interactive functions like blogs that would allow educators to share information about reading curriculums or innovative ways to teach first-graders addition.

He said teachers would gain access to the system in November as well, with enhanced capabilities allowing them to compare data for all their students.

“We want to get it to them as fast as possible,” Mr. Liebman said. “Our educators have needed this for years, they’ve needed it for decades, and unfortunately for all the reasons that you’d expect, the technology didn’t exist and once it did exist, the resources and the will to build it didn’t exist.” Mr. Liebman said that so far, roughly $48.5 million had been paid to I.B.M. and its subcontractors, and that most of the money was earmarked for technology, so “if we didn’t spend it on ARIS we couldn’t buy more chalk for schools or hire three more teachers or whatever else.”

He described the development process as “quick and aggressive,” but added: “If we could have done it faster, we surely should have, and I can assure you we wanted to and would have.”

But Patrick J. Sullivan, the Manhattan borough president’s representative to the city’s Panel for Educational Policy, said the fact that parents have not gotten access to ARIS “is further proof of the disdain D.O.E. holds for us.”

“Parents need to understand what their children are learning and how they are progressing,” he said.

Frank A. Cimino, principal at Public School 193 in Brooklyn, said that he was managing well without ARIS and was “very concerned with the obsession with data that is not allowing principals to spend time in classrooms and have a human touch.” Philip Weinberg, principal of the High School of Telecommunication Arts and Technology, the Brooklyn school that developed the alternative data system, said he could not comment on ARIS. His system, called DataCation, is not as elaborate as ARIS, but also allows users to track things like the progress students are making toward graduation, as well as their schedules and grades.

According to an e-mail message sent to principals to advertise DataCation, they are charged $5,000 to track compliance with the federal No Child Left Behind law, $10,000 to monitor graduation requirements or $13,000 for both. Any profit beyond the costs of running the system go into Mr. Weinberg’s school budget, but he said it was not a big moneymaker.

“I think that our folks have developed a really interesting data system that’s helpful to schools,” he said. “Even before the advent of the progress report, schools always have been interested in ways they can better define how kids are progressing, or succeeding and not succeeding.”

Mr. Liebman said he was unfamiliar with DataCation, but that he applauded schools’ efforts to design and spend their own discretionary money on data systems that might complement ARIS.

“We certainly are not saying to schools and wouldn’t say to schools, ‘Don’t do your own system,’ ” Mr. Liebman said. “What we’re saying is, ‘Here are some tools, they’re very powerful.’ ”

Last year, principals who tried to use ARIS said they often experienced glitches like the program freezing.

Mr. Liebman said that it had been difficult to meld various information systems that were developed decades ago to track things like attendance and credit accumulation. Another challenge, he said, was ensuring that only authorized people would have access to confidential student information.

Parents, for example, will be able to see their own children’s scores and information, and to compare them against school and citywide aggregates, but they will not be able to see the scores of their children’s individual classmates.

A spokesman for I.B.M., Clint Roswell, described ARIS as an “ambitious, pioneering data reporting and knowledge management system for New York City educators and families.”

Jennifer Medina contributed reporting.

This article has been revised to reflect the following correction:

Correction: November 3, 2008
An article in some editions on Oct. 24 about delays in an $80 million data system for New York City’s public schools that was supposed to be ready for parents in September misstated part of the name of a city education board, one of whose members criticized the delay as “further proof of the disdain” that the Department of Education holds for parents. The board, the successor to the Board of Education, is the Panel for Educational Policy — not Priorities.

From Editor Betsy Combier: New York State Comptroller Tom Napoli does do certain audits, but what about those cities - like New York City - that are uncontrolled messes? What do the terms "$30 million; $650 million", mean?

From Napoli's Office, the December 2008 Financial Plan for NYC:

B. Department of Education
The November Plan allocates $21 billion to the Department of Education (DOE) for
use in FY 2009, including $3.4 billion for pensions and debt service. Of this amount,
the City is contributing $10.5 billion, or 50 percent; the State’s contribution totals $8.7 billion, or 41.4 percent; and the federal government will contribute $1 billion,or 8.4 percent. The remainder comes from fees, grants, settlements, and restricted 18 The commission’s report does not indicate whether any of these resources would supplant State or City subsidies sources. Between fiscal years 2003 and 2008, City funding for education increased at an annual rate of 9.9 percent; State funding increased by 7.2 percent annually.
The allocation to the DOE in FY 2009 is $860 million more than last year. City
funding will increase by $547 million, or 5.5 percent, while the State contribution will increase by $403 million, or 4.9 percent, partly offset by a reduction in federal aid.
Although the November Plan assumes large increases in State education aid, these
increases may not materialize in the amounts anticipated given the impact of the
economic slowdown on the State’s finances. The Governor’s executive budget, for
example, would reduce education aid to New York City. While the State Legislature
may restore some of the proposed cut, the amount of education aid in the enacted
State budget will still likely be less than assumed in the November Plan, which could
require the City to increase its funding or to cut services.
The City has already cut back on planned increases in education aid to its public
schools. The June Plan incorporated a $303 million reduction in funding for FY 2009
and an average of $247 million in subsequent years. The November Plan calls for
further reductions in planned funding for education: $181 million in FY 2009 and
$385 million in subsequent years. The Chancellor has instructed the schools to
minimize the impact on educational programs and to concentrate on reducing material
and supplies, extracurricular programs, school-based contractual services, and
professional development programs. Other cuts include reducing maintenance and
repair work.
In addition, the City may have to increase funding or the DOE may have to reallocate
resources to fund unplanned costs associated with special education students who are
placed in private schools. The DOE spent $89 million on these services in FY 2008,
but the November Plan allocates only $35 million for this purpose in FY 2009 and in
subsequent years. Given current spending trends, these costs are likely to exceed
planned levels by at least $60 million annually beginning in the current fiscal year.
The legislation that granted the Mayor greater control over the DOE will terminate on
June 30, 2009, unless it is reauthorized by the State Legislature. The Mayor and the
Chancellor advocate reauthorization, as they believe the law has improved
accountability and performance. Others believe mayoral control has diminished
transparency and the role of parents, and has resulted in an increase in no-bid
contracts.

Cost of Tracking Schools Is Said to Be $130 Million
By JENNIFER MEDINA, NY TIMES, Nov. 14, 2008

The Education Department is spending roughly $130 million this year to track the performance of schools in New York City, according to a report published on Thursday by the city’s Independent Budget Office.


Efforts to establish accountability, like performance bonuses for principals and teachers, sophisticated student data systems and report cards that assign letter grades for schools, have been a cornerstone of the Bloomberg administration’s efforts to overhaul the school system.

While the budget office said that the figures in the current fiscal year included some spending that the Education Department does not explicitly count as projects aimed at keeping schools accountable, the report estimates that the city will spend $105 million on similar initiatives next year.

The report found that while private money initially paid for many of the accountability efforts, the same kinds of measures were increasingly being financed with city dollars. Many of the figures cited in the report had already been released, but this was the first attempt to detail the overall costs of Chancellor Joel I. Klein’s accountability efforts.

Betsy Gotbaum, the city’s public advocate, had asked the budget office to review the Education Department’s spending on accountability measures amid complaints from some parents, educators and public officials that the chancellor and his team were overly focused on standardized tests.

Mayor Michael R. Bloomberg has asked the department to make cuts in its $20 billion budget of $181 million from the school system this year and another $385 million next year. Ms. Gotbaum, who has been an outspoken critic of Mr. Klein, said that education budget cuts should be made to the accountability office rather than directly to the classroom.

Ms. Gotbaum said during a news conference at her downtown office that because of the current state and city budget cuts, the Education Department should “re-evaluate the accountability system from top to bottom” to ensure that it is “cost effective and producing real results in the classroom.”

“There are hundreds of millions of dollars that are being spent without real assurance that our schools are getting any better,” she said.

She took particular issue with a student data program called the Achievement Reporting and Innovation System, developed by I.B.M. and a group of subcontractors. The $80 million system has not functioned for much of the school year, even for principals, and is still unavailable to parents.

The report also found that the department spent $2 million on municipal report cards evaluating individual schools. The report card grades were released in September for elementary and middle schools, and this week for high schools. The city has also spent $6 million over three years on parent, teacher and student evaluations of individual schools, according to the report.

Mr. Klein said in a statement: “I believe the dollars we’ve invested in this work are some of the smartest dollars we’ve spent. Leading experts in education in America and around the globe agree and are working to create accountability measures in their schools and districts like the ones we’ve created.”

He added, “The report released Thursday misunderstands the purpose and importance of accountability.”

Thursday’s report also provoked a fresh round of criticism over how the Education Department reports information on its spending to the public. Unlike other city agencies, the department does not make a line-by-line accounting of its expenses available to outside groups like the budget office. Ms. Gotbaum and others have called for tightening the guidelines next year when the State Legislature considers renewing the mayor’s control over the schools, which he won in 2002.

The Independent Budget Office said that its findings on how much the city spends on accountability measures were somewhat subjective, in part because of having to rely on information the Education Department provided. The department repeatedly argued that the accountability efforts were narrower, and said it would spend $37.1 million on the initiatives this fiscal year and $48.5 million in 2009-10.

“It’s been a very difficult process,” said Doug Turetsky,(pictured at right) the communications director for the Independent Budget Office. “We’ve had a lot of back and forth over some things that seemed straightforward.”

One of the most contentious points was whether to include as spending on accountability the money that is used to pay for “periodic assessments” four times a year.

The tests are given at all schools across the city, but the results have no effect on a student’s or a school’s evaluation; they simply provide teachers with an idea of how well students are performing. The budget office found that the spending for such tests was $4.3 million in the 2008 fiscal year, which ended June 30, and that, under a new contract, it ballooned to $26 million in the current fiscal year.

The department was protesting some of the numbers in the report as late as Thursday morning. After the report was released, David Cantor, an Education Department spokesman, said it was unfair to include a $30 million grant program as an expense, because it used money that the city received from the federal government. The grants are awarded to schools that are struggling under state and city standards.

Among several initiatives that were initially paid for with private dollars but that are now publicly financed is a school review program, which sent consultants from Cambridge Education, a London-based company, to visit and evaluate schools. The $19.1 million contract is set to expire next August, after which officials from within the Education Department will conduct the site visits.

September 24, 2005
Progress and Concerns Noted in Special Education System
By DAVID M. HERSZENHORN, NY TIMES

A study of New York City's special education system by a team of independent experts has found that the Bloomberg administration "is moving special education in positive directions."

But the report also identified a litany of concerns including mismanagement and confusion about staff responsibilities, insufficient collection of data, inadequate evaluation and referral practices, over-reliance on segregated classes and generally poor handling of hearings where parents are allowed to present complaints.

The report was conducted at the request of the city's Education Department and the plaintiffs in a long-running collection of lawsuits known as the Jose P. litigation that have produced court orders that now govern the city's special education system.

The team of researchers was led by Thomas Hehir, a lecturer at the Harvard Graduate School of Education, and included education professors who are experts in various aspects of services for children with disabilities as well as experts on the federal law governing education for the disabled.

The purpose of the report was to assess the Bloomberg administration's efforts to overhaul the special education evaluation and placement processes.

In response to the report yesterday, city officials, who first received report on Tuesday, announced that they would spend $38 million over the next two years to put some of the panel's recommendations into place.

Of that money, $30 million will be spent on a new data system to allow much of the current paperwork to be done electronically, including students' Individual Education Programs. The remaining $8 million will be spent on teacher training and support programs. Elisa Hyman, the deputy director of Advocates for Children, a nonprofit group that works to protect the legal rights of special education students, said the city should adopt all of the report's recommendations, but she said better handling of data and staff training should be priorities.

"Upgrading data systems and improving professional development are both very critical steps," she said. If the information is incorrect, it is nearly impossible to provide students the correct services, Ms. Hyman said. Carmen Fariña, the deputy schools chancellor for teaching and learning, who has made improving special education a personal priority, said she was pleased that the report recognized the substantial efforts by the administration to enhance services.

She said the Education Department had made strides making more services available to special education students in their neighborhood schools, reducing travel times.

Ms. Fariña said the department hoped to rise above the legal mandates to provide better services for children, including options previously found mostly in private schools.

"This is a real shift from just reacting to legal imperatives," she said.

June 23, 2005
U.S. AUDIT FAULTS SPEECH THERAPY IN CITY SCHOOLS
By CLIFFORD J. LEVY, NY TIMES

The New York City schools misspent $870 million in Medicaid payments by channeling tens of thousands of poor special-education students into speech therapy performed by unqualified practitioners, often without proper referrals, according to a scathing federal audit released yesterday.

The school system's record-keeping was so chaotic and the speech services so badly documented that school officials often could not prove that students needed the speech therapy, or ever received it at all, said the audit, which covered the period between 1993 and 2001.

The city schools, chronically in need of money, are portrayed in the audit as having vigorously tapped into an antipoverty program, while doing a haphazard job at best of adhering to federal regulations.

Medicaid typically pays for health care for the poor, but since the late 1980's, it has also paid school systems nationwide for speech, hearing and other health-care services for poor children. Schools in New York State, especially the city's, have taken advantage of the program far more than those in other states, according to federal statistics.

The audit represents a new stain for the city's special education system, which has long been troubled and has been roiled in the last two years by Mayor Michael R. Bloomberg's effort to overhaul the schools.

In fact, even as the audit identified improper spending, many parents have often complained that there have been lengthy delays in obtaining special education services. In this case, because of what the auditors contended was a routine lack of proper documentation for speech services, it is impossible to say whether the therapy, if it was received at all, took the place of other special-education needs.

The auditors did say that while the violations might seem technical, they ''could have a direct impact on the quality of services rendered.'' They also said school officials disregarded the state's advice that speech referrals should come from a physician or a licensed practitioner.

State and city officials vehemently disputed the audit, which took three years to complete and was issued by the inspector general in the federal Department of Health and Human Services. The officials insisted that the findings be withdrawn.

Washington and the states share the cost of Medicaid. The auditors recommended that New York State be forced to return $435 million to the federal government, which is the federal portion of the questionable payments. The city school system itself is not being held financially liable, but if the state has to return the money, it could in turn punish the district.

The Centers for Medicare and Medicaid Services, which is part of the Department of Health and Human Services, would not discuss whether it plans to penalize the state.

If it does, the amounts at stake are so high that the issue is likely to be catapulted into Congress. Senator Charles E. Schumer, the New York Democrat, has in recent years lobbied the Bush administration to rein in federal regulators and investigators over the issue of Medicaid speech services.

The findings in the audit were among the most critical appraisals of a state Medicaid program anywhere in the nation in recent years. The auditors estimated that 86 percent of 2.5 million Medicaid claims for speech services by the New York City schools from 1993 to 2001, totaling $870 million, violated federal regulations. The services were for 110,000 students.

After scrutinizing a sample of 100 claims, the auditors found that in 42 cases, they were unable to verify that the services had been provided, based on documentation offered by the school system. Most of the 100 claims either lacked correct referrals from a medical professional, or were not provided by or overseen by a properly certified speech therapist.

The audit represents an escalation of federal scrutiny into New York's overall Medicaid program, which at $45 billion is far larger than that of any other state. A 2004 audit by the inspector general found similar deficiencies in $340 million in Medicaid spending on speech services in schools in New York outside New York City.

The New York State Health Department, which oversees Medicaid, accused the inspector general of essentially picking on the state, saying that it had applied far stricter standards in this audit than it had in audits of speech services in other states.

The department said the federal government had over the years issued conflicting and confusing rules for Medicaid speech services, and as a result, it was unfair for the state to be penalized for not following them. It also said the auditors were applying rules intended for a medical setting to an educational one.

''There is no question that the New York City Department of Education billed for services it felt were provided to poor children with disabilities,'' Kathryn Kuhmerker, a deputy state health commissioner, wrote in response to the audit.

Margie Feinberg, a spokeswoman for the New York City Department of Education, noted in a statement that Mayor Bloomberg took office and gained control of the school system after the period covered by the audit. She questioned why the inspector general waited until 2002 to begin looking at claims going as far back as 1993.

''We disagree with this audit and will work with the state to have the recommendations reversed or changed,'' she said.

Jill Chaifetz, executive director of Advocates for Children, a nonprofit group that monitors special-education programs in the schools, said she was not surprised by the audit. "There has been a longstanding problem of lack of accountability in the system," she said.

Wednesday, February 4, 2009

Chuck the Groundhog Bites Mayor Bloomberg





February 3, 2009
Reclusive Staten Island Groundhog Bites Mayor
By FERNANDA SANTOS, NY TIMES



There are creatures — hibernating bears come to mind, or emergency-room doctors after an overnight shift — who don’t appreciate being roused from their slumber. Perhaps that’s what irked Chuck the Groundhog on Monday morning on Staten Island when Mayor Michael R. Bloomberg tried to lure him out of his wooden shelter.

Chuck wasn’t up for whatever it was that Mr. Bloomberg had planned for him — or for predicting how much longer winter was going to last, for that matter. And he got so annoyed at the mayor that he bit the mayor’s left hand, his sharp teeth piercing Mr. Bloomberg’s black leather gloves.

One can argue that Mr. Bloomberg sort of asked for it. As cameras rolled and the crowd took in the event — a local imitation of the Punxsutawney Phil (see picture below) tradition — Chuck at first refused to come out. Children chanted his name to no avail. Mr. Bloomberg seemed to realize that the reclusive rodent was spoiling the show.

He tried to lure Chuck out of his cottage with an ear of corn, but Chuck shrewdly grabbed the corn and dragged it inside to enjoy. The mayor tried again, twice, but then, seemingly out of patience, he grabbed Chuck by the belly with both hands before he could hide again and held him up in the air for everyone to see.

By then, the mayor had already been bitten.

Mr. Bloomberg did not seem upset. During an unrelated announcement later in the day — with a bandage on his left index finger — he provided only scant details about the incident involving the 3-year-old, 10-pound groundhog, formally known as Charles G. Hogg.

“Given the heightened response against terrorism, and clearly in this case a terrorist rodent who could very well have been trained by Al Qaeda in Afghanistan, I’m not at liberty to say any more than that,” the mayor said.



It happened around 7:30 a.m. during the annual Groundhog Day ceremony at the Staten Island Zoo, in front of several dignitaries, including the City Council speaker, Christine C. Quinn, and Senator Charles E. Schumer. No other injuries were reported.

“I made it out alive: no bites, no scratches,” Ms. Quinn said. “But I kept a little bit more of a distance from the groundhog. I knew him not to be the jolliest fellow. But I didn’t know he was nasty.”

Mary Lee Montalvo, a spokeswoman for the Staten Island Zoo, said that Chuck didn’t have a history of violent behavior and probably did what he did because he was nervous.

“He was basically concentrating on his food,” Ms. Montalvo said. “The mayor’s fingers may have just been there. He wasn’t necessarily going for the mayor.”

The groundhog had no comment.

New Yorkers — and animal lovers of the world — have no reason to worry, though. Chuck is a healthy rodent, and nothing will happen to him as a result of the attack. And according to a mayoral spokesman, Mr. Bloomberg is up to date on his tetanus shot.

Sewell Chan contributed reporting.



February 4, 2009
An Encore for Chuck the Groundhog, a Day After the Chomp
By JAMES BARRON
Is there redemption after public disgrace? Say you didn’t pay your taxes. Or you were too tight with the lobbyists. Or maybe you bit the mayor.

Redemption? Not for Charles G. Hogg, a k a Chuck, the mayor-biting groundhog at the Staten Island Zoo.

First — on Groundhog Day, no less — Chuck botched the biggest photo opportunity of his not-quite-3-year-old life. He chomped on Mayor Michael R. Bloomberg’s index finger.

That raised a question for follow-up: Would Tuesday’s Chuck be any kinder or gentler?

So the zookeepers trotted him out for another photo op. Only one camera and two reporters showed up this time.

That word “trotted” is a problem. It suggests politeness. It suggests civility. It suggests everything that Chuck was not as he went rampaging across the stage in the zoo’s auditorium, knocking over a prop-size statue of a giraffe.

Then one of the photographers put a photograph of Mr. Bloomberg where Chuck could not miss it. Chuck rubbed his lips on the corner of the picture frame. He was not making nice — it looked as if he had bared his teeth. But the mayor should not take this personally. Chuck did the same to everything he rubbed up against before he jumped off the stage and waddled around the auditorium for a victory lap, Chuck style.

“He’s usually well behaved,” insisted Doug Schwartz, a zookeeper. A lot of parents use that excuse for a child who is going through the terrible 2s. Chuck will turn 3 next month. Mr. Schwartz said he felt “the way any parent would feel if their kid acted up.” And there was no denying that Chuck had acted up. The mayor was the first human Chuck had ever bitten, Mr. Schwartz said.

Still, Mr. Schwartz had an explanation for what happened. Chuck felt cornered, and he snapped because he thought the mayor was stealing his food when he reached in, trying to draw Chuck out when Chuck was feeling reclusive.

Mr. Schwartz deduced this because he spends a lot of time in Chuck’s company. During the week, Chuck lives in a holding area in the basement of the zoo near Mr. Schwartz’s desk. On weekends, Mr. Schwartz takes him home.

This qualifies Mr. Schwartz to say things like “he’s very playful” and “he’s got a real personality.”

Which, some may argue, was the problem on Monday.

By Tuesday, Mr. Schwartz’s boss, John J. Caltabiano, the executive director of the zoo, had the one-liners ready. One, inevitably, was about biting the hand that feeds you. The city provides as much as half of the zoo’s budget, Mr. Caltabiano said, and the city is cutting its share by 17 percent in the coming fiscal year.

Mr. Caltabiano is well aware that the mayor has survived past Groundhog Days without injury. In his office is a framed photograph of the mayor holding a groundhog in February 2006.

But the groundhog in the picture was Chuck’s father. Eight groundhogs have played the role of Chuck in the last 27 years. Monday was the first time that Mr. Bloomberg had handled the current Chuck, who is apparently feistier than his father was.

It might have been the last time, too. Mr. Caltabiano said that he was working on breeding Chuck VIII and would retire him if there was a Chuck IX by next Groundhog Day.

And no, Mr. Caltabiano said, retirement “didn’t have anything to do with him biting the mayor.” The “usual cycle” for Chucks, he said, is three to five years. It’s time.

Nate Schweber contributed reporting.

Sunday, February 1, 2009

FBI Agent Pikus Says There is Too Much Secrecy in New York's Capital, and No Accountability



Updated: 02/01/09 10:19 AM
Albany is New York's capital of dysfunction

A look at how the secretive, closed ways of state leadership make accountability elusive

By Tom Precious, Buffalo News
NEWS ALBANY BUREAU
LINK

ALBANY — In his 18 years with the FBI, John Pikus (pictured at right) has investigated terrorists, drug dealers, bank robbers, gangs, white-collar criminals and murderers.

Then he ran into the New York State Legislature.

Despite overseeing an office with 80 agents armed with subpoenas and a battery of sophisticated investigatory tools, Pikus sounds almost humbled by the experience he had trying to crack the secrecy that defines the state Capitol.

“The legislative process was almost Byzantine in how it operates,” said Pikus, whose investigators spent three years working on the case that led to last week’s indictments against former Senate Majority Leader Joseph Bruno. “We have very expert investigators working on this. Some have come in from other districts and were quite surprised at how difficult it was to discern what was going on in the legislative process.”


Former New York Senate majority leader Joseph L. Bruno, indicted on corruption charges, enters the federal courthouse in Albany.

[Pikus],The FBI veteran, who cut his teeth doing intelligence work for the U. S. Navy, talked of “significant difficulties” his investigators had “overcoming the lack of transparency in New York State government.”

You might call his experience Exhibit No. 1 against Albany, and to hear senior federal prosecutors openly lament the Kremlin-like atmosphere here was almost heartening to some longtime Albany watchers.

Yet beyond salacious headlines about scandals at the Capitol, there are consequences to the closed ways of Albany that make accountability difficult. For instance:

• Soaring taxes that make New York the nation’s leader in combined state and local tax burden.

• Annual state spending two and three times the rate of inflation that has helped put New York in the fiscal crisis it finds itself in today.

• Rising state debt levels — up more than 30 percent in a recent five-year period — with the debt now equal to each New Yorker owing more than $2,500, double the national rate.

• Businesses, employers and manufacturers fleeing the state long before the recent economic collapse.

• And declining upstate population, led by the 4 percent drop in population in Erie County over the past decade.

In chasing after Bruno, the feds ran into an old Albany problem: Connecting the dots here is no easy task.

“If you read the congressional record, you see virtually everything a legislator says on the floor of Congress is recorded in some fashion,” said acting U. S. Attorney Andrew Baxter (pictured at right). “Our experience with the New York State Legislature is that bills are passed, member items are granted, and it is very difficult to reconstruct which individual senator or Assembly people were actively involved in promoting or casting the legislation or granting those member items.”

Some reform groups welcomed the federal prosecutor to the club of the disenchanted.

“It underscores how New Yorkers feel,” said Blair Horner of the New York Public Interest Research Group. “New Yorkers don’t understand what goes on in Albany either. They just assume the worst, and often their worst fears turn out to be optimistic.

“That’s why the lobbyists love the place so much, because nobody understands it,” Horner said. “It’s like imperial China or the Eastern Roman Empire in Constantinople where the term Byzantine comes from.”

“There’s nothing that scares the political process more than not being in control of information. Secrecy is the mother’s milk of Albany,” added David Grandeau, who chased after wrongdoing for 12 years as the former head of the New York State Lobby Commission.

Secrecy runs the gamut, from how Paterson recently selected a new U. S. senator — he even refused to release blank candidate questionnaires — to what labor or business interests get to meet with legislative leaders.

With so many state officials getting in trouble with the law in recent years, watchdogs see an opportunity to exact meaningful change. Public pressure is one thing. Indictments, lawmakers going to jail, staffers getting fired — they can bring reform, the logic goes. Few are holding their breath.

Behind closed doors

Albany is a town where no deals are made in public.(Below: NYS Assembly)

Even the few open meetings among the governor and legislative leaders are prescripted and occur only after they first meet in secret.

It’s a place where a health union boss sits at the table with leaders to craft bailouts of his industry, where a former staffer of a Rochester lawmaker can kill a bill permitting Buffalo to install cameras at intersections because his lobbying client wants an alternative bill and where modest changes to bolster teen driving safety laws are killed by senators who don’t want to buckle up in the back seat as they are driven home from Albany.

Huge sums of campaign cash flow here as freely as the mini hot dogs at the nightly fundraisers — sometimes as many as a dozen in an evening — that are cloistered in bars, private clubs and hotels within walking distance of the Capitol.

Even some lobbyists, whose top ranks are a powerful collection of former politicians and government officials, concede — though only privately — that the state would be better off if the Legislature returned to the part-time days of citizen legislators. The “permanentization” of the Legislature, as one lobbyist put it, creates its own system, its own industry that costs taxpayers $228 million a year and gets gassed up by special-interest campaign donations.

Most lawmakers have other jobs, including some with companies that directly benefit from the actions they take in Albany. They come to town each January for a session even though most of the major bills that become law don’t even get introduced until June.

Albany’s biggest growth industry is lobbying. There are 5,500 of them representing clients who spend nearly $200 million influencing Albany — not including campaign donations. These lobbyists not only push bills but actually write them for lawmakers.


Matthew Goldstein, chancellor of City University, left, with City Councilman Alan J. Gerson, Mayor Michael R. Bloomberg; Assembly Speaker Sheldon Silver, and the Manhattan borough president, Scott M. Stringer

It’s where all but a handful of lawmakers find themselves pushed to the side on major policies, ceding power to top legislative leaders and Albany’s entrenched “central staff.”

How strong is the staff? In the three weeks since the State Senate has been in session, not a single bill has been approved, in part, because the takeover by Democrats gutted the power of veteran GOP staffers who know how to run the place. A year ago during the same period, the Senate had passed 42 bills.

The inaction, though, hasn’t saved any money; lawmakers and their staffs still come to Albany and collect per diems and travel costs.

And what happened to those top GOP staffers? Many left, making sure to do so before Dec. 31 to take advantage of a loophole — written by staff members — that allowed them to begin lobbying jobs on Jan. 1. (Leaving any later would have kicked in a two-year waiting period.)

Hiding in plain sight

In Albany, rule No. 1 is to control the flow of information. Lawmakers and the governor spend millions each year on publicity efforts — whether it’s a personal photographer for Paterson or state-of-the-art TV broadcast facilities where legislative staff members ask puffy questions of lawmakers to beam back to local stations.

But want to get things unfiltered, say transcripts of legislative floor debates? You can look at the Senate Web site but only if you work for the Senate. On its public Web site, no such transcripts exist.

The state’s exalted Freedom of Information law? In practice, it’s often a tool to deny or delay access to information. Or, increasingly, it’s just ignored. The Buffalo News, for instance, in September filed a FOIL seeking documents on government hiring during a period when a hiring freeze was supposed to be in place. The governor’s office still has not complied.

The real secrecy is in plain sight. Public hearings on major bills are seldom held. A controversial bill, like the budget, is rushed through passage — once the three state leaders agree during their secret meetings — without the legally required three days of waiting so the public and lawmakers can review it. Unlike Congress, there are no public sessions where bills are negotiated and amended.

Want to know what a bill will cost taxpayers? Go to the “fiscal impact section” on a bill memo, where “Unable to Determine at this Time” is often the answer.

Then there was the case of the private actuary used, until last year, by the Assembly; he low-balled cost estimates on bills benefiting union government workers. It turns out the labor unions were footing his tab.

Where to begin to change Albany?

Moving toward change

It must start, reformers say, with redistricting, the mother of all incumbency protection machines. It’s the once-a-decade process that occurs after the census, when legislators redraw state legislative and congressional district lines to take into account population shifts. But the legislators protect the incumbents with party-friendly voters, or at least the favored incumbents.

The next round is just a couple of years away, and critics are calling for an independent body to craft the lines to put an end to districts such as the “earmuff district” for Rep. Louise M. Slaughter that curls from Buffalo to Rochester in search of Democratic voters or a downstate legislative district kept contiguous, as required, by connecting across a sand bar at high tide.

Next, move on to campaign finance and New York’s high donation “limits.” Consider: When new U. S. Sen. Kirsten Gillibrand runs next year, the most an individual is allowed to give her is $4,800 for a primary and general campaign. That’s a federal law.

But, thanks to state law, when Paterson runs, he will be able to take about $55,600 from an individual and a member of the Assembly can accept $7,600. (That doesn’t include party accounts where loopholes sent the limits soaring higher, or other provisions that permit companies to create subsidiaries to skirt limits.)

Watchdogs say Albany needs independent oversight to give a nonpartisan review to everything from the state’s budget numbers to ethics monitoring. Right now, there are two ethics bodies: one oversees the executive branch and the other the Legislature. The governor, though, controls the panel overseeing his executive branch and legislative leaders run the legislative ethics group.

Some, though, think reform isn’t necessary.

Assembly Speaker Sheldon Silver dismissed the broad-brush criticism of the Legislature by the FBI and U. S. attorney.

“I think the two houses are a lot different,” he said.

How? “I think a lot of our materials are much more open,” he said, citing things like sessions now shown on the Internet.

Recent transparency efforts have been modest, at best, critics say. In Albany, “reform” means it’s now public which lawmakers are requesting which pork spending. And lawmakers can no longer be in a bar down the street or driving home while being recorded as in the chamber voting.

But still very much alive is Albany’s systemized unfairness.

Do you live, for instance, in Newfane?

You’ll do well in the pork allotment because you are represented by an Assembly Democrat.

Live across the line in Somerset? Good luck, because your Republican lawmaker will get table scraps.

“The minority members get screwed. Therefore, their constituents get screwed,” Horner said.

In Washington on his second day in office, President Obama ordered his agencies to release more freely information requested under the Freedom of Information law.

“In the face of doubt, openness prevails,” he said.

Paterson, in office nearly a year, has issued no such proclamations.

Grandeau, the former head of the state lobbying commission, offers a gloomy assessment of Albany.

“We have a system now that I think is rife with corruption. But you can’t be sure about it because you can’t get access to the information. But every time you do get a little peek, it’s an ugly picture there,” he said.

Did the FBI uncover any other abuses while chasing Bruno? They won’t say. But a warning did come.

“Notwithstanding the significant difficulties and overcoming the lack of transparency in New York State government, let it be known that the FBI will continue to root out corruption with New York State government to ensure the integrity of the legislative process,” Pikus said.

tprecious@buffnews.com

John Pikus

John Francis Pikus was born in Burlington, New Jersey on June 17, 1955. He is a graduate of Drexel University in Philadelphia, Pennsylvania, where he earned a Bachelor of Science Degree in Political Science in June 1978. He went on to earn his Master of Arts Degree in International Relations/Russian Studies from Syracuse University in May 1980.

Mr. Pikus was commissioned as a U.S. Naval Officer following completion of the Navy's Aviation Officer Candidate's School in February 1981. He served almost ten years on active duty as an Naval Intelligence Officer, during which time he completed two overseas deployments, served as an instructor in electronic warfare, and was assigned as the Command Intelligence Briefer for the Commander-in-Chief, Pacific Fleet. Mr. Pikus ultimately achieved the rank of Lieutenant Commander prior to his discharge from active and reserve duty in January 1990. Mr. Pikus was sworn in as a Special Agent of the FBI in February 1990.

Mr. Pikus began his FBI career in the Honolulu Division where he was assigned white collar, foreign counterintelligence, gang and violent crime investigations. Mr. Pikus was a member of both the SWAT and Evidence Response Teams, and served as the Division's media representative. In October 1996, he was promoted to supervisor of the Division's gang and violent crime squad where he served in this capacity until his transfer to FBI Headquarters in May 1999.

Mr. Pikus was assigned to the FBI Headquarter's Drug Section from May 1999 to June 2000. He was subsequently reassigned to the FBI's Inspection Division as an Assistant Inspector and Unit Chief until December 2001. In January 2002, Mr. Pikus reported to the FBI's Sacramento Division, having been promoted to the position of Assistant Special Agent in Charge. During his tenure in Sacramento, Mr. Pikus coordinated investigations in all areas of the FBI's jurisdictional responsibilities, to include terrorism, foreign counterintelligence, cybercrime, and white collar crime matters.

In February 2004, Mr. Pikus was promoted to Section Chief of the Executive Development and Selection Program, where he had responsibility for the FBI's Agent and Support Career Development Program. In January 2005, Mr. Pikus was promoted to Inspector in the Inspection Division where he served until his promotion to the position of SAC, Albany in July 2006. On July 17, 2006, Mr. Pikus assumed the duties of the SAC of the Albany Division.

Mr. Pikus has been married for sixteen years. He and his wife, Frances, have three children.

Department of Justice Press Release on Bruno Investigation:
FORMER NEW YORK STATE SENATE MAJORITY LEADER INDICTED FOR SCHEME TO DEFRAUD CITIZENS OF HIS HONEST SERVICES
LINK

Andrew Baxter, Acting U.S. Attorney, is seen during a news conference, Friday, Jan. 23, 2009 at the Federal Courthouse in Albany, New York. Joseph Bruno, the former majority leader of the New York Senate and for a time the most powerful Republican in state politics, was indicted Friday on federal corruption charges

ALBANY, N.Y. — A federal grand jury in Albany returned an indictment today against Joseph L. Bruno, the former majority leader of the New York State Senate, Acting U. S. Attorney Andrew T. Baxter and Special Agent in Charge John F. Pikus of the Albany Division of the FBI announced. Bruno is charged with carrying out a scheme to defraud the State of New York and its citizens of the right to his honest services by soliciting private business from, and entering into direct and indirect financial relationships with, persons or entities who were pursuing interests before the New York State legislature or other state agencies.

The indictment alleges further that Bruno concealed and failed to disclose the existence and nature of such financial relationships, and resulting conflicts of interest, while taking discretionary official actions benefitting parties with whom he had those relationships.

The charges arise from Bruno’s alleged receipt of almost $3.2 million from five groups of individuals and related entities, either directly or through so-called consulting companies, between 1993 and 2006. While New York state legislators are part-time officials permitted to pursue other employment or business activities, the indictment alleges that Bruno improperly exploited his official position and concealed conflicts of interest, contrary to state ethics and reporting laws, with respect to his private “consulting” business.

According to the indictment, Bruno received approximately $2 million from two financial services firms. These payments were essentially fees relating to labor union benefit funds that invested or conducted brokerage transactions with the firms, ostensibly as a result of referrals by Bruno. The unions, whose benefit funds were solicited by Bruno, had frequent business before the New York State legislature and other state agencies, and Bruno took discretionary official actions benefitting the unions. The union officials solicited by Bruno were responsive to his “business” proposals because of his official position and his perceived ability to influence legislative or other state actions on behalf of their unions. In required financial disclosure statements, and in other contexts, Bruno concealed the fact that he enriched himself by exploiting relationships with unions that benefitted from his official actions. For example, rather than reporting that he was paid for soliciting union benefit funds, Bruno misleadingly reported most of his income as fees for “consulting.”

Bruno was also paid approximately $1.2 million in “consulting” fees by three individuals and a myriad of related entities. Some of those entities had interests before the New York State legislature and other state agencies, and several benefitted from official acts of Bruno. According to the indictment, Bruno did not perform legitimate work commensurate with these substantial “consulting fees”, which were, in essence, gifts from these individuals or related entities. Bruno failed to report these payments as gifts, as required under state ethics and reporting laws. Bruno also misrepresented to two of these “consulting” clients that he had received clearance from the Legislative Ethics Committee to receive payments from them when, in fact, Bruno had never sought ethics opinions relating to these particular outside activities.

An indictment is merely an accusation and defendant Joseph. L. Bruno is presumed innocent unless and until proven guilty. None of the other persons or entities identified in the indictment have been accused of federal criminal violations. If convicted, Bruno faces a maximum sentence of up to 20 years in prison and fines of up to $250,000 on each of the indictment’s eight counts under the federal wire and mail fraud statutes. Bruno was arraigned earlier this afternoon before U.S. Magistrate Judge David R. Homer in Albany.

Acting U. S. Attorney Baxter stated: “As the Senate Majority Leader, Joseph L. Bruno had a fiduciary relationship with the State of New York and its citizens requiring disinterested decision-making and candid disclosure of the potential motivation behind his official acts. Mr. Bruno exploited his office by concealing the nature and source of substantial payments that he received from parties that benefitted from his official actions and the resulting conflicts of interest. This investigation and prosecution demonstrates the commitment of federal law enforcement in the Northern District of New York to strive to ensure that public officials who breach their public trust will be held accountable.”

Special Agent in Charge Pikus stated: “This complicated investigation has been conducted in a professional and thorough fashion, notwithstanding the significant difficulties in overcoming the lack of transparency in New York State government. The FBI will continue to root out public corruption within New York State government to ensure the integrity of the legislative process.”

Daniel R. Petrole, Deputy Inspector General, U.S. Department of Labor, stated: “Former State Sen. Joseph L. Bruno allegedly used his powerful position improperly to induce union officials to invest their organizations’ pension plan funds through several investment companies in return for just under $2 million. I’d like to thank our law enforcement partners at the FBI and the U.S. Attorney's Office for working with us to ensure that corruption at all levels will be thoroughly investigated and aggressively prosecuted.”

The investigation that led to this indictment was conducted by the Albany Division of the FBI, with the assistance of the Inspector General of the U.S. Department of Labor, and the Criminal Investigation Division of the Internal Revenue Service. The United States is represented in this prosecution by Assistant U. S. Attorneys Elizabeth C. Coombe and William C. Pericak.

Former N.Y. Senate Majority Leader Indicted
By Michael Hill, Associated Press
Saturday, January 24, 2009; A02
LINK

ALBANY, N.Y. -- Joseph L. Bruno, the former majority leader of the New York Senate and for a time the most powerful Republican in state politics, was indicted Friday on federal corruption charges.

Bruno, who retired from the legislature in July after more than a dozen years leading the Senate, is accused of using his position to steer contracts and grants to businesses that paid him a total of $3.2 million in consulting fees or other compensation from 1993 through 2006.

Bruno exploited "his official position for personal compensation and enrichment" in dealing with companies and 16 unions with business before the state, according to the eight-count indictment brought by the U.S. attorney for the Northern District of New York.

None of the companies or unions mentioned in the indictment are accused of wrongdoing.

Bruno also is accused of lying on financial disclosure forms and of using state employees to do administrative and other work related to his outside financial activities.

Bruno, 79, pleaded not guilty during a brief court appearance Friday. He later denounced the investigation at a news conference, calling it a politically motivated "fishing expedition."

"After being hounded for three years, I am being indicted on a prosecutorial sleight of hand because, after years of effort, they cannot find one example of criminal activity or illegal intent," Bruno said.

He promised to "fight this, and I'm going to win."

Bruno, who represented his Troy, N.Y., district for 32 years, seized power in the state Senate in 1994 with the consent of former GOP governor George E. Pataki, who had just been elected. Bruno became the most powerful Republican in state government when former governor Eliot L. Spitzer (D) succeeded Pataki.

After his retirement, Bruno became chief executive of CMA Consulting Services, an information technology consulting business based in the Albany County suburb of Latham.

Saturday, January 31, 2009

20 New York State Leaders Get Away With Not Paying Taxes



20 state leaders pay up tax bills
State legislators paid $52,000 as tax warrant targets

By RICK KARLIN, Capitol bureau, Timesunion.com, January 30, 2009
LINK

Former gubernatorial aide Charles O'Byrne (pictured at right) isn't the only prominent New Yorker with a history of tax troubles.

Twenty members of the current state Legislature have over the years been hit with state tax warrants, similar to liens, for more than $52,000 in unpaid taxes, interest and penalties, according to state records covering the past two decades obtained under the Freedom of Information law.

Additionally, former lawmakers have owed more than $62,000.

In October, O'Byrne admitted to paying more than $293,000 in state and federal back taxes and interest. He quit his post as Gov. David Paterson's top adviser after his debts came to light.

While all the sitting legislators' tax bills have been settled, payments didn't come before the politicians were listed in state documents as facing tax warrants.

Many lawmakers who received warrants pointed to confusion and mix-ups, often regarding their own employment outside of the state. (Lawmakers in both the state Senate and Assembly earn $79,500 plus extra stipends for special duties such as heading committees; taxes are automatically withheld from those paychecks.)

All of the lawmakers who have received warrants are Democrats, and all but one is from New York City. The lone exception: Sen. Andrea Stewart-Cousins of Yonkers (pictured at right).

"There was a question of what my firm paid me," said Bronx Assemblyman Peter Rivera, who between 1992 and 2007 had to pay back some $20,000.

Rivera,(at left) who operates a private law firm in addition to this work as an assemblyman, said he had also disputed some of what the state claimed he owed, but decided to pay anyway.

"Even though I didn't think I owed some of the money, I paid it," he said.

"What kills you is when you add the interest and penalties," added Marty Connor, (pictured at left) a former Brooklyn senator and former minority leader who was ousted last November in a primary. Connor, who had warrants for more than $19,000 in 2004 and 2005, said he inadvertently underpaid taxes from his legal work over the years - an error that wasn't caught until he hired an accountant.

Also owing money in the past but no longer in office, former Bronx Sen. Efrain Gonzalez (at right) in 1985 owed $43,462. Gonzalez is under federal investigation for allegedly taking money from non-profit agencies; his lawyer refused to comment.

Gonzalez was defeated in a primary last fall by Pedro Espada,(at left) who along with fellow senators Carl Kruger of Brooklyn, Hiram Montserrate of Queens, and Ruben Diaz Jr of the Bronx comprised a group of dissident Democrats who threatened to withhold their support for Democratic Leader Malcolm Smith (pictured below).

Diaz and Espada have also had warrants, with Diaz owing more than $2,000 in 1994. He said he didn't remember the incident, but noted that he wasn't a legislator at the time, working instead as a minister and as a commissioner of New York City's Civilian Complaint Review Board, which investigated police brutality allegations. Espada said his warrant, for $949, was related to a real estate deal.

These warrants are the first step in the state's civil enforcement of tax debts, according to the state Department of Taxation and Finance. They allow the state to attach a lien on someone's property, including automobiles, real estate and other valuables.

"We can go after assets," said Taxation and Finance spokesman Tom Bergin. Additionally, the state can attach wages to get unpaid taxes but the agency doesn't reveal who is being garnisheed.

Having a listed tax warrant "is serious," said Sherry Kraus, a Rochester tax lawyer who serves on the state bar association's tax section.

Kraus, who was speaking as a tax attorney and not on behalf of the bar association, said warrants can be issued for a variety of unpaid taxes ranging from income tax to withholding tax that an employer is supposed to pay on behalf of workers.

At least one observer said the warrants should have a special sting for New Yorkers, who pay some of the nation's highest taxes.

"It doesn't send a good signal to the rest of the state if the people who are actually in charge of enacting tax laws don't follow them to the extent that the state tax agency has to go after them," remarked Steve Ellis, a vice president at Taxpayers for Common Sense, a Washington D.C.-based organization that monitors tax policy. "It certainly makes your average taxpayer ... feel like a chump."

About 9.4 million tax returns are filed each year in New York. An average of 261,543 warrants were issued per year over the past three fiscal years, with an average of 173,543 cases closed.

An average of 2,871 were vacated, or dismissed, Bergin said.

Timothy Geithner, President Barack Obama's nominee for Treasury secretary, was approved Monday by the Senate despite revelations that he had failed to pay more than $34,000 in federal taxes. Geithner eventually paid up - with one payment coming just before Obama tapped him.

Rick Karlin can be reached at 454-5758 or by e-mail at rkarlin@timesunion.com.

The taxman cometh

These current legislators have in the past 20 years received state tax warrants. All of the cases have been resolved.

Name Date Amount

Sen. Ruben Diaz 1994 $2,328.73

Sen. Martin Malave Dilan 2004 $467.91

1993 $831.41

Sen. Shirley Huntley 1998 $758

1994 $2516.42

Sen. Velmanette Montgomery 1999 $1779.17

1996 $705.72

1994 $1394.76

Sen. John Sampson 2003 $1734.03

Sen. Andrea Stewart-Cousins 1997 $854.34

Sen. Pedro Espada 2006 $949.51

Assemblyman Michael Benjamin 1995 $572.46

1994 $2061.72

Assemblyman Karim Camara 2008 $570.54

2004 $588.24

Assemblywoman Crystal Peoples 1990 $418.06

1988 $481.65

Assemblyman Adam Clayton Powell IV 1998 $886.06

1996 $988.77

Assemblyman Gary Pretlow 1988 $749.03

Assemblyman Philip Ramos 1999 $1185.17

Assemblyman Jose Rivera 1997 $481.32

Assemblywoman Naomi Rivera 2007 $1588.85

Assemblyman Peter Rivera 2007 $1523.66

2007 $8756.69

1993 $6666.26

1992 $3381.94

Assemblywoman Annette Robinson 1992 $2593.18

1997 $5407.83

Assemblyman William Scarborough 2000 $427.83

Assemblyman Keith Wright 1993 $1837.31

Assemblywoman Inez Barron 2006 $615.13

Total $52,473.65

Source: NYS Dept of Taxation and Finance and Secretary of State

Top Paterson aide Charles O'Byrne did not pay taxes due to 'non-filer syndrome', his lawyers say
BY KENNETH LOVETT and GLENN BLAIN
DAILY NEWS ALBANY BUREAU, October 22nd 2008, 10:39 PM
LINK

ALBANY - Lawyers for top Paterson administration aide Charles O'Byrne claimed Wednesday he failed to pay taxes for five years because he has "non-filer syndrome."

"These are very high-functioning people who otherwise can complete all of the ordinary tasks in their lives," O'Byrne lawyer Richard Kestenbaum insisted.

"But there is something that they can't do, and many times that causes them not to be able to file their tax returns."

Not even Paterson, who has staunchly defended O'Byrne, was buying it.

Asked later in Brooklyn if he believes in "non-filer syndrome," Paterson responded, "No."

"He showed poor judgment," the governor said of his $178,000-a-year secretary.

Still, Paterson said O'Byrne "merits forgiveness" since he doesn't have a history of not filing taxes and was suffering from a "major depressive disorder."

While some news stories in recent years have been written on "late-filing syndrome," many tax experts say they never heard of it.

"Wow," IRS spokesman Kevin McKeon said before offering no comment.

Alex Raskolnikov, a Columbia Law School professor who specializes in tax law, said that while the IRS can take mental illness into account when assessing penalties, he's never heard of "non-filer syndrome."

Rhondalee Dean-Royce, a spokeswoman for the American Psychiatric Association, said no such disorder or syndrome is listed in the Diagnostic and Statistical Manual of Mental Disorders, a standard reference.

Kestenbaum and another O'Byrne lawyer, Henry Berger, released documents Wednesday that said O'Byrne did not file returns for tax years 2001 through 2005.

O'Byrne's federal and state tax liability, including late fees and interest, was about $300,000 - about $100,000 more than previously revealed.

Paterson and his aides have claimed for days that O'Byrne, a former Jesuit priest, had paid off the entire debt, but the records showed O'Byrne cut one last check to the state on Tuesday for $3,641.85.

O'Byrne's lawyers said the check was written because a previous one in the same amount never cleared. They provided no proof.

The Daily News has reported that O'Byrne was able to pay off his debts with help from the Kennedy family, a law school buddy and his two sisters.

O'Byrne's two sisters each gave him between $5,000 and $20,000. Jean Kennedy Smith and Brian Krisberg each loaned him between $60,000 and $100,000.

His lawyers said O'Byrne agreed to repay the loans with interest, though they couldn't say the percentage. They also said there is no payback schedule.

O'Byrne, they said, first alerted Paterson of his fight with depression and his tax problems in 2004 when he was hired for a job in the state Senate. At the time Paterson was minority leader.

Still, he didn't notify the IRS or the state Tax Department until 2006. He filed the bulk of his returns just days before Paterson became lieutenant governor.

Berger said O'Byrne waited until all the needed documents were assembled, which "is quite complicated."

Despite first telling Paterson in 2004 of his tax problems, O'Byrne went another two years without filing.

gblain@nydailynews.com
With Andrew Garib

Gov. Paterson advisor Charles O'Byrne ran up $1,400 in suspect charges
BY KENNETH LOVETT, DAILY NEWS ALBANY BUREAU CHIEF
Wednesday, October 22nd 2008, 12:15 AM
LINK

ALBANY - Gov. Paterson's embattled top aide racked up $1,400 in questionable state credit card charges in the last two years, mostly for meals at restaurants, records show.

Charles O'Byrne, the powerful $178,500-a-year secretary to the governor, used his state card 11 times at New York City restaurants since early last year, records provided by the state controller's office show.

State employees can't use charge cards, which are for travel, in the city listed as their work station, controller's office spokesman Dennis Tompkins said.

New York City is the official work station for O'Byrne, who last week acknowledged having owed more than $200,000 after not paying his state and federal income taxes between 2001 and 2005.

His New York City meals came out to $935.19, including $180.10 at the Commerce restaurant in the West Village on July 15; $167 at Cookshop on 10th Ave. on July 7; and $133.24 at L'Entrecote on May 4, 2007.

It's unclear if O'Byrne treated any guests. That would be a no-no, even for business purposes.

"It's supposed to be just for yourself," Tompkins said.

O'Byrne used his card for meals in Albany six times, which is allowed, but each time went over his set per diem of $10 for breakfast and $39 for dinner.

In March 2007 he spent $136.48 on an Albany meal. The next month he spent $83.66.

The questionable charges began after Paterson became lieutenant governor in 2007 and O'Byrne was his chief of staff. It continued after he became secretary to the governor when Paterson replaced Eliot Spitzer in March.

Paterson spokeswoman Risa Heller said the expenses have been reimbursed through deductions from other per diems to which O'Byrne was entitled.

She could not provide documentation last night or say when he began repaying the expenses.

Regardless, O'Byrne may have misused the card based on regulations posted on the state controller's Web site, which specify that "only appropriate travel expenses may be charged to the card."

O'Byrne's questionable use of the card stopped on March 16, the day before Paterson was sworn in - a time when Paterson and his inner circle were under media scrutiny.

His New York City charges resumed in July, when he once exceeded his Albany per diem.

O'Byrne is expected to release documents on his tax problems today, which he blamed on depression. He is not expected to release his tax returns.

He claims to have paid off the entire $200,000 he owed in back taxes, penalties and fines through the sale of stocks and loans from family and friends like Jean Kennedy Smith.

Paterson said O'Byrne got no special treatment from the state tax department. He also said his administration will cooperate with a Republican-led probe.

klovett@nydailynews.com
With Glenn Blain

PATERSON'S CHIEF OF STAFF O'BYRNE RESIGNS UNDER PRESSURE
By BRENDAN SCOTT and FREDRIC U. DICKER, NY POST

October 24, 2008 --

ALBANY – Gov. Paterson's chief of staff Charles O'Byrne resigned under pressure this afternoon, The Post has learned.

O'Byrne decided to resign a week after The Post first reported that he failed to pay his taxes for five years – a period in which he claimed to have suffered from clinical depression.

O'Byrne's hopes for political survival deteriorated two days ago, when his lawyers revealed his tax debt had actually reached nearly $300,000 – $100,000 more than he originally disclosed – and that he had only paid it off this week.

A suggestion by O'Byrne's attorney that his client suffered from "non-filer syndrome" also brought widespread ridicule and calls for O'Byrne's resignation.

O'Byrne's ouster amounts to the first major shake-up within the Paterson administration, barely seven months after the former lieutenant governor took over in the wake of Eliot Spitzer's resignation.

A former Jesuit priest with close ties to the Kennedy family, O'Byrne, 49, was Paterson's most trusted advisor and confident inside the administration.

He has worked for Paterson for several years in various capacities and the two men were extremely close.

His departure leaves the legally-blind governor with a huge management vacuum as he grapples with a financial crisis that blasted a $1.2 billion hole in the state's budget.

Read How The Post Broke the Story