East Hampster

Gryle Trunk Show @ LABL

2008-12-06T19:00:01-06:00

PATERSON ANNOUNCES THAT NEW YORK FACES A RECORD $47 BILLION BUDGET DEFICIT-LARGEST IN STATE HISTORY

2008-10-29T15:34:01-06:00

Wall Street Woes Create Unprecedented Fiscal Challenges, Require Bold Action at Special Legislative Session

$1.5 billion Current-Year Shortfall, $12.5 billion Deficit in 2009-10 Are the Result of Plummeting Tax Revenues, Unsustainable Spending Growth

Governor David A. Paterson today announced that, as a result of unprecedented turmoil on Wall Street, the State now faces a current-year budget shortfall of $1.5 billion and a $12.5 billion deficit in 2009-10. Over the next four years, New York must confront a cumulative budget gap of $47 billion.

“New York is at the epicenter of an extraordinary financial crisis on Wall Street. We will have no choice but to take bold and aggressive action to reduce state spending,” Governor Paterson. “I have full confidence that my partners in the Legislature will work together with me at next month’s special session to take the actions that will be necessary to get our state’s fiscal house in order.”

The Division of the Budget (DOB) today released its Mid-year Update to the State Financial Plan. In that report, DOB forecasts that the State will have to close budget deficits of $1.5 billion in 2008-09, $12.5 billion in 2009-10, $15.8 billion in 2010-11, and $17.2 billion in 2011-12 – a cumulative total of $47 billion. These deficits are nearly double the $26.2 billion cumulative budget gap ($6.4 billion in 2009-10, $9.3 billion in 2010-11, $10.5 billion in 2011-12) projected in DOB’s July 2008 First Quarter Update to the State Financial Plan. This increase is primarily attributable to the fact that the state will lose $19.2 billion in revenue over the next four years as a result of the recent turmoil on Wall Street and its long-term effects on the broader economy.

In 2009-10, General Fund revenues are projected to decline by 5.8 percent compared to 2008-09. But General Fund spending is projected to increase by 11.9 percent based on commitments in current law.

The State budget has grown from $61.9 billion in 1994-95 to $120.8 billion in 2008-09, an average annual increase of 4.9 percent, which is nearly double the average inflation rate of 2.7 percent over that period. While spending has been limited to the rate of inflation during the last two fiscal years, Governor Paterson believes that we must take significant action to address long-term, unsustainable growth in state spending.

Historical Perspective

While the State’s current deficits are the largest in absolute dollars in history, as a percentage of the General Fund budget, they are similar to those faced in 2003-04. In that year, the State closed an $11.2 billion budget gap, which represented 28.4 percent of the then $39.5 billion General Fund.

The State will close its 2008-09 shortfall in the current fiscal year. As such, Governor Paterson and the Legislature will have to address a $12.5 billion deficit in its 2009-10 Enacted Budget, which represents 22.3 percent of the $56.1 billion General Fund.

Economic Forecast

In just the last two months, the State, national, and global economies have endured a series of unprecedented financial shocks. These events include the largest bank failure in U.S. history (Washington Mutual); the largest bankruptcy filing in history (Lehman Brothers); the federal takeover of Fannie Mae, Freddie Mac, and AIG; a credit freeze that is impacting the ability of businesses, municipalities, and average Americans to borrow money; and over 40 percent declines across all major stock market indexes.

The impact on New York’s economy is expected to be severe:

– Job Losses: Over 160,000 New Yorkers are projected to lose their jobs during this downturn, including 45,000 in the financial services industry.
– Unemployment: Last month, New York’s unemployment rate reached 5.8 percent, its highest level in four years. It is expected to reach 6.5 percent next year, with declines projected in virtually every sector of the economy.
– Income and Wage Declines: New York personal income and wages for 2009 are projected to decline by 1 percent and 2.1 percent respectively. This compares to personal income growth of 6.5 percent and wage growth of 8.6 percent in 2007.

The national economy is also facing significant difficulties:

– Job Losses: 1.7 million Americans are projected to lose their jobs during the current downturn.
– Real Gross Domestic Product will decline for three consecutive quarters. This has not happened since the recession of the 1970’s.
– Consumer spending is projected to decline for three consecutive quarters. This has not happened since World War II.

Governor Paterson’s Response

On November 18, Governor Paterson will convene a special emergency economic session of the Legislature to close the entire 2008-09 shortfall and begin aggressively attacking the State’s substantial future deficits. Assembly Speaker Silver, Majority Leader Skelos, Minority Leader Smith and Minority Leader Tedisco have each agreed to put forward $2 billion in current-year savings proposals before the beginning of the session.

Governor Paterson will release his Executive Budget proposal for the 2009-10 fiscal year more than one month early on December 16, 2008. He has also asked the Legislature to pass an Enacted Budget prior to beginning of the fiscal year on April 1, 2009.

Additionally, Governor Paterson will be meeting with officials in Washington D.C. tomorrow to discuss the need for a second economic stimulus package that will include direct, immediate, fiscal relief for states.

Financial Plan Impact

2008-09 2009-10 2010-11 2011-12 Cumulative

First Quarter Gaps $0 ($6,355M) ($9,295M) ($10,545M) ($26,195M)
Revenue ($1,664M) ($5,819M) ($5,794M) ($5,893M) ($19,170M)
Spending $26M ($569M) ($1,002M) ($1,171M) ($2,716M)
Special Session $427M $651M $639M $650M $2,367M
Misc ($264M) ($426M) ($300M) ($275M) ($1,265M)

Mid-year Gaps ($1,475M) ($12,518M) ($15,752M) ($17,234M) ($46,979M)

Revenue Revisions

As a result of the recent turmoil on Wall Street, tax receipts are projected to be $19.2 billion lower than previously anticipated over the next four years. Personal income tax collections represent the largest portion of this loss in revenue and are expected to decline by 3.8 percent in 2009-10 compared to the current fiscal year.

2008-09 2009-10 2010-11 2011-12 Cumulative

Total Revenue Loss Compared to July Update ($1,664M) ($5,819M) ($5,794M) ($5,893M) ($19,170M)
Personal Income Taxes ($1,167M) ($4,243M) ($4,425M) ($4,787M) ($14,622M)
Business Taxes ($404M) ($913M) ($452M) ($376M) ($2,145M)
Sales/Use Taxes ($101M) ($267M) ($380M) ($383M) ($1,131M)
Other $8M ($396M) ($537M) ($347M) ($1,272M)

August Special Session

At an August special emergency economic session, Governor Paterson worked with the Legislature to enact $1 billion in savings over a two-year period. These measures included across-the-board savings in local assistance payments, new executive and legislative programs, and member items. Additionally, as part of this spending reduction plan, the Legislature enacted $501 million in Medicaid cost-containment initiatives.

Spending Revisions

DOB has revised its spending projections downward in 2008-09 by $26 million. This reflects lower than anticipated costs in various programs, primarily Medicaid and general state charges. These lower costs were partially offset by higher spending in other areas, including Mental Hygiene. Additionally, the State Police and the Department of Correctional Services (DOCS) were both partially exempted from their 10.35 percent agency savings targets to ensure that public safety is not compromised, which is reflected in the financial plan. State police will achieve $13.7 million of their original $61.1 million spending reduction target. DOCS will achieve $84.1 million of their original $249.0 million spending reduction target. A full progress report concerning agency spending reductions is available at the Division of the Budget’s website (http://www.budget.state.ny.us).

DOB has also revised its spending projections higher by $568 million in the 2009-10 fiscal year. These changes primarily reflect higher General Fund education costs related to updated pupil demographic data from the State Education Department and lower than anticipated lottery revenues for School Aid. Rebasing nursing home reimbursement rates is also projected to drive higher than previously expected General Fund costs in future years.

Miscellaneous

Financial transactions expected to bring in $384 million in additional revenue, including the conversion of GHI/HIP to a for-profit company ($284 million), as well as the sale of certain State properties ($100 million), will likely not occur during the 2008-09 fiscal year because of adverse market conditions. These developments were partially offset by an agreement to award a video lottery terminal franchise at Aqueduct to Delaware North for an upfront payment of $370 million, an amount that was $120 million above initial financial plan projections of $250 million.

Overall Spending

Overall 2008-09 All Funds spending is projected to total $120.8 billion, an increase of 4.1 percent, slightly lower than the 4.2 percent inflation rate projected in that fiscal year.

State Operating Funds spending is projected to total $80.3 billion in 2008-09, an increase of 4.3 percent. General Fund spending is projected to total $56.1 billion in 2008-09, an increase of 5.1 percent

Iraq War Veterans Arrested While Attempting to Deliver Questions to Obama and McCain

2008-10-16T20:02:00-06:00

HEMPSTEAD, N.Y. – One hour before the final presidential debate of the 2008 campaign, fourteen members of Iraq Veterans Against the War (IVAW) marched in formation to Hofstra University to present questions to the candidates. IVAW had requested permission from debate moderator Bob Schieffer to ask their questions during the debate, but received no response.

The contingent of veterans in dress and combat uniforms attempted to enter the building where the debate was to be held in order to ask questions about poor veterans’ healthcare and supporting war resisters of the candidates, but were turned back by police. IVAW members at the front of the formation were immediately arrested, and others were pushed back into the crowd by police on horseback. Several members were injured, including former Army Sergeant Nick Morgan who suffered a broken cheekbone when he was trampled by police horses before being arrested.

“Neither of the candidates has shown real support for service members and veterans. We came here to try and have serious questions answered, questions that we as veterans of the Iraq war have a right to ask, but instead we were arrested. We will continue to ask these questions no matter who is elected. We believe that the time has come to end this war and bring our troops home, and we will be pushing for that no matter what happens in this election.” said Jason Lemieux, a former Sergeant in the US Marine Corps who served three tours in Iraq, and member of IVAW.

A total of ten veterans were arrested during the action, including Matthis Chiroux (Army Sergeant), Kristofer Goldsmith (Army Sergeant), Adam Kokesh (Marine Sergeant), Mike Spinato, Geoff Millard (Army Sergeant), Marlisa Grogan (Marine Captain), Nathan Peld (Navy, 1998-2004), Nick Morgan (Army Sergeant), James Gilligan (Marine Corps, 6 years) and Jose Vasquez (Army & Army Reserves, 1992-2007).

Better Long Island asks Paterson & Levi to Reconsider Cavett Land Purchase

2008-10-16T16:30:01-06:00

The Association for a Better Long Island has asked Governor Paterson and County Executive Levy to withdraw use of public money to buy up sections of comedian’s estate.

In the wake of a decision by the Suffolk County Legislature to spend millions of taxpayer’s dollars to purchase a portion of Dick Cavett’s Montauk estate, the Association for a Better Long Island is appealing to Suffolk County Executive Steve Levy and New York State Governor David Paterson to reconsider plans to close on the $18 million deal as governments face draconian service cuts following Wall Street’s economic implosion.

Desmond Ryan, Executive Director of the Association for a Better Long Island (ABLI), http://www.betterlongisland.com observed, “In the face of the most extraordinary financial crisis in seventy years the Suffolk Legislature is prepared to put down $18 million to buy a vista from a Montauk property owner who couldn’t get his price on the market. As gifted as he is, Dick Cavett himself couldn’t write such a tragicomedy as this. Decisions are being made on every level of government as to how best survive the coming budget shortfall while the Suffolk Legislature proceeds as if the real estate bubble is still floating unperturbed over their heads. Will someone please wake them up and tell them has happened over the last two weeks?”

Ryan says the ABLI is appealing personally to both the Governor and the County Executive to exercise their fiduciary responsibilities to the taxpayer and rethink their respective positions on the land acquisition. Plans have called for acquiring Cavett’s 76.8 acres that surround his home, including 1,000 feet of prime oceanfront. Mr. Cavett keeps his mansion.

The ABLI executive director warns that regardless of how Wall Street responds in the weeks to come serious damage has been done to government ledgers. He notes that every element of revenue generation, including income taxes, sales taxes, mortgage taxes, property taxes and more will all suffer critical shortfalls. “Social service programs are going to be slashed and Dick Cavett will have his view. There is something profoundly and seriously unfunny about this scenario.”

The ABLI has expressed alarm about the extent public tax dollars have been used to acquire private land that goes far beyond the protection of drinking water aquifers. The Long Island Economic and Social Policy Institute at Dowling College has completed the first comprehensive study of land acquisition ever undertaken by local municipal governments, and it finds that since 1976, when Long Island governments first began an open space preservation effort, Suffolk County government, and its townships, have assumed the lead in this effort, with taxpayers investing nearly $1.3 billion in bond debt service costs, sales taxes, property taxes, and real estate transfer taxes to purchase over 34,000 acres of open space and preserve thousands more acres of farmland. Add to that number nearly $700 million in property taxes that would have been generated by these parcels, but instead where shifted to Suffolk’s private property owners to cover the municipal revenue gap, and the total costs for land preservation efforts exceed $2 billion to date. The cost per Suffolk County homeowner is currently estimated at $10,000 per household.

The entire document is on the Institute’s web site http://www.dowling.edu/liesp/papers/LIGovtLA.pdf so that every property owner can download the data and study the report in its entirety, including its methodology and its implications. The Institute’s research was sponsored, in part, under a grant from the Long Island Real Estate Organization, a coalition of regional real estate based business organizations of which the ABLI is a member.

15th Annual Stroll to the Sea Dog Walk

2008-10-11T13:00:00-06:00

15th Annual Stroll to the Sea Dog Walk

2008-10-09T02:51:00-06:00

Join us for a scenic two-mile stroll to the ocean and back in East Hampton. The walk starts and ends at historic Mulford Farm at 10 James Lane in East Hampton. Children under 16 walk free with a registered adult!

EVENT SCHEDULE: SATURDAY, OCTOBER 11, 2008

9:00AM: Pledge (checks and cash) Drop-Off, Day-of-Event Registration, Microchipping, Refreshments

10:00AM: Walk Begins

11:00AM: Dog Behavior Q&A with ARF Obedience Instructor Gail Murphy

11:15AM: Pooch Who Can Smooch, Biggest Lap Dog and Most Unlikely to Succeed Contests

11:30AM: Awards Ceremony

12:00PM: Event Concludes

FREE FOR ALL REGISTRANTS

Microchipping

Event T-shirt

Dreesen’s Famous Donuts, Starbucks Coffee and Other Treats for People and Pooches

Water for People and Pooches

Dog Agility Course

FUNDRAISING CONTEST

Help feed the dogs and cats at the ARF Adoption Center by emailing friends, family and colleagues and asking them to sponsor you. All amounts are welcome!

$250 SUPER PUP PRIZE

All registrants who raise $250 or more receive a Bulldog key fob courtesy of COACH

TOP ADULT PRIZES

1ST PRIZE: Nick and Toni’s – With outstanding food, impeccable service in a beautiful setting reminiscent of a Tuscan farmhouse, Nick and Toni’s is, simply, the place to dine in East Hampton. Dinner for four people, bottle of wine, tax and tip included. Donated by Nick and Toni’s.

2ND PRIZE: Round-Trip Limo Service Between NYC and the Hamptons – You and your dog will sit back and enjoy being driven in a brand new Lexus 400H Hybrid. Begin your trip in NYC or the Hamptons, stay the weekend and return home – in style! Donated by VIP Gold, a division of Big Apple Car, Inc.

3RD PRIZE: iPhone 3G – Revolutionary phone, widescreen iPod and Internet in your pocket. The 3G from Apple puts even more features at your fingertips and redefines what a mobile phone can do, once again.

TOP PRIZE FOR CHILDREN UNDER 16

Wii Sports Package – The ultimate, physically interactive video game by Nintendo. Players use the Wii remote to mimic actions used in real life sports including tennis, baseball, golf, bowling and boxing. Fun and action for the entire family! Underwritten by J. Lack Consulting.

Popular Mexican Restaurant Closed by Town of East Hampton

2008-10-02T18:35:01-06:00

Why is a restaurant employing a dozen or so locals, paying its share of taxes, and providing a valued service to its patrons, shuttered in this period of severe economic turbulence seems foolish?

Unfortunately, that’s exactly what the Town of East Hampton has done to the Hideaway Restaurant, a beloved and popular Mexican on West Lake Drive in Montauk.

The official reason is that while the dock-side eatery has a state liquor license and a restaurant permit from the county, it lacks a CofO and a site plan. Hideaway was part of a marina whose owners sought to diversify in order to weather a downturn in its boating business. Waterside restaurant within or near marinas are common across Long Island. It’s smart business. But I guess that government officials in East Hampton are not up for creating win-win situations. Too bad.

Of course, when you look at the faces of the people losing their livelihoods, one begins to see another possible motivation. Truth is that government can be dumb. And it can be downright retarded during times of sharp demographic shifts.

Municipal Bonds Freeze Up

2008-10-02T00:06:01-06:00

Interest payments soar for cities and counties, some of which loaded up on complex derivative deals similar to ones that swamped many banks.

Like other credit markets, municipal bonds are nearly frozen. During the week of Sept. 22, three significant bond deals were done. Normally the tally would be about 100. Those that are getting done are high-priced.

What’s worse, untold dangers may lurk just beneath the forbidding surface of the muni market. Some locales set up complicated derivatives deals with the now-defunct Lehman Brothers and other troubled New York banks. Shedding those investments can be costly and complicated.

Even before the tumultuous past few weeks, many municipalities were facing fundamental problems: quickly rising pension costs, aging roads, and large drop-offs in income and real estate tax revenue. A lot of governments had moved away from safer, fixed-rate bond issues, leaving them vulnerable to a sharp rise in those rates over the past two weeks. These factors could add up to serious trouble for scores of communities.

State Revenues Expected to Shrink Another $3.5 Billion

2008-09-30T00:51:01-06:00

State Comptroller Thomas P. DiNapoli said on Monday that the turmoil on Wall Street could strip New York State of up to $3.5 billion in tax revenue over the next 18 months, worsening the state’s already tight fiscal picture and forcing further painful cuts to the state budget.

“The preliminary September numbers show the fallout from the Wall Street crisis is starting to hit the state hard,” Mr. DiNapoli said in a statement. “The volatility in the markets is creating difficulty in predicting budget revenues, and today’s vote in Washington will only increase that volatility. But this is a warning bell. The state has to watch its spending. Every dime counts in a crisis.”

The comptroller’s full report is here. (pdf)

Governor Paterson said this week that despite his joint efforts with the Legislature during the special session, and the administrative savings he implemented to successfully close the current year budget gap, that further action will be necessary. Following the special session, the state faced a projected 2009-2010 budget deficit of $5.4 billion – an estimate that will undoubtedly grow when new state revenue and spending projections are available

East Hampton High School Homecoming Ceremony 2008

2008-09-28T20:56:01-06:00