Archive for the ‘Politics’ Category

Outrage over cost of unnecessary primary

No doubt, Mitt Romney is happy with the results of yesterday's republican primary here in New York. But, the extremely low turnout and the extremely high cost of the election have some officials upset. $25 million, that was the cost to taxpayers statewide. Only about six per cent of eligible republican voters showed up to vote.  And we have three more elections this year alone In...

Voters don’t show as Romney widens gap

This was supposed to be a big, big news day for politics in New York State. A few short weeks ago it was a four-way republican primary for the presidential nomination. But that has fizzled At the Sand Creek Middle School where a total of 491 republicans are eligible to vote, only 10 have made their choice for republican nominee. The first voter didn’t even show up until an hour and a...

Presidential primary day in NY; Romney favored

ALBANY, N.Y. (AP) - Mitt Romney has a chance to substantially boost his delegate tally when New York Republicans vote in the state's presidential primary.      New York has 95 delegates, the most of any of the five East Coast states holding primaries Tuesday.      Romney is looking to add to his wide lead over Newt Gingrich and Ron Paul in the nomination race...

County’s sinking surplus

Saratoga County dipped into its reserve funds for $5 million to balance its 2011 financial books, flaming concerns that annual deficits are depleting its long-robust rainy day fund.

County officials have used more than $10 million in surplus funds in 2010 and 2011, which has reduced its spare cash to $14.1 million, county Administrator Spencer Hellwig told the county’s Board of Supervisors’ Budget Committee this week. Further, the county has budgeted more than half of that surplus – $7.6 million – to pay for projected shortfalls in 2012.

Much of the red ink flows from the county-owned Maplewood Manor nursing home, which has required $43.5 million in county subsidies since 2004, due mostly to declining Medicaid reimbursements from the state. The county provided Maplewood $9.6 million in 2011, $2.1 million of which the facility retained due to unexpected revenues and savings. The $2.1 million will be dedicated to reduce the county’s contribution to Maplewood to a projected $7.7 million in 2012, Hellwig said.

Things could have been worse. While sales tax receipts came in lower than budgeted for 2011, a strong fourth quarter of shopping drove up figures by an unexpected $1.5 million, Hellwig told the Budget Committee. If the sales tax trends continue, Spencer believes the county would have to make up $5.9 million for 2012, rather than the $7.6 million. If that holds true, the county would end 2012 with about $6.5 million in its fund balance.

“We’re cautiously optimistic things are improving, but I still have a lot of concerns going into 2013,” Board of Supervisors Vice Chairman Alan Grattidge of Charlton said in an interview. The county used a lot of one-time revenue sources for 2012, he said.

The county’s sales tax revenues and fund balance has for many years served as a protective wall from tax increases. The county still has the lowest tax rate in the state – $2.23 per $1,000 of assessed property value. But supervisors increased it by eight cents in the $305 million budget for 2012 amid several cuts, which set off hand-wringing among some taxpayers.

To save money, county supervisors recently hired a law firm to study options for Maplewood Manor. Grattidge has said the facility’s yearly losses are unsustainable. To make money, the county wants to sell its never-used landfill in Northumberland. It recently sent out a draft request for proposals from potential bidders.

But Grattidge noted that he didn’t expect to realize savings or revenue from the nursing home and landfill for about two years. Hellwig blamed unfunded mandates from the state for the county’s shrinking fund balance.

dyusko@timesunion.com ■ 518-454-5353 ■ @DAYusko

Reform measure fights on

A plan to change Saratoga Springs’ commission form of government could go to voters in November, but the mayor said Thursday he wanted to review legal options first.

Accounts Commissioner John Franck on Tuesday recommended that the City Council adopt a petition carried by the group Saratoga Citizen, make a few minor changes and send it to voters in the fall. He set a public hearing on the issue for 6:45 p.m. May 1.

Saratoga Citizen has called for a manager-council style of government to replace the city’s 97-year-old commission structure. It collected 2,200 signatures of city residents who support a change. A majority vote by the City Council would send the measure to a public vote. Franck said he intends to call for the vote May 1 or May 15.

“This issue has been around for two years,” Franck said.But Mayor Scott Johnson, who has the upper hand in what goes to the ballot, said Thursday he has many questions about Franck’s plan. Under state law, if the mayor forms a charter commission, and it proposes its own reform measure, that would take precedent on the ballot over any other.
If the mayor does not form a commission, it appears as if Franck has the required three votes on the five member council to send the Saratoga Citizen forward. On Thursday, Johnson wouldn’t say if he planned to form a commission. But he said that he had asked for legal opinions from the city attorney and lawyers with the New York Conference of Mayors on Franck’s proposed process. Johnson questioned if the council could take over a group petition that was collected years ago, and make changes to dates that have passed and other things.

“I am not trying to be an obstructionist and prevent this matter from going to voters,” Johnson said. “I simply want to make sure the city is following the law since this is unchartered territory.”

Two courts have upheld the Saratoga Citizen petitions. The New York State Appellate Division recently sided with the group. If approved, changes would start in January 2014, according to Patrick Kane, president of Saratoga Citizen.

‘Tax the 1%’ rally set for noon today

A “Tax the 1%” protest is set for noon today at Broadway and Lake Avenue (in front of the post office) in downtown Saratoga Springs, one of 255 planned gatherings being held across the nation on Tax Day.

Hosted by Douglas Klein and Sharon McFarlane and supported by MoveOn.org and The 99% Spring, the event commemorates the 99% paying their taxes and underscores how the wealthy 1% do not pay equal income taxes.

Spychalski quits housing group

The director and facilities manager of the Saratoga Springs Housing Authority abruptly resigned this week from a separate, not-for-profit housing group that the under-fire director had presided over.

SSHA Director Ed Spychalski and Gerard Hawthorne quit the non-profit Saratoga Affordable Housing Group during a private meeting of the group Tuesday, board member Rocky Ferraro said in an interview Friday. Spychalski had served as president of the group since 2008, and Hawthorne as secretary.

Ferraro said Spychalski stepped down to avoid creating a “negative type of situation” for the group, and to create separation between the affordable housing group and the SSHA.

“We’re trying to be as transparent as possible,” said Ferraro, who board members elected to succeed Spychalski as president.The resignations came as state Comptroller Thomas DiNapoli’s office audits the SSHA financial books, and U.S. Sen. Chuck Grassley of Iowa investigates the SSHA for improprieties. City officials and residents, as well as public housing tenants, have decried Spychalski’s reign as SSHA director, saying he failed to take timely action on bedbugs in Stonequist Apartments. That spread to other revelations about his $152,000 annual salary, unusual five-year work contract that had automatically renewed itself each year and the hiring and promotion of his children.

Founded several years ago, the Saratoga Affordable Housing Group works to secure homes in the city for low- and moderate-income families. It purchased 28 units on Allen Drive four years ago, and recently constructed 15 new units there. The group received a bank loan and state grant to build the 15 apartments. A lottery for those homes was held Friday.

Spychalski critic John Kaufmann recently filed for information from the SSHA about any money and resources the SSHA provided to the affordable housing group. He wants to know if the SSHA commingled money, materials or staff with the affordable housing group, and if it was reimbursed. Federal regulations prohibit housing authorities from subsidizing other organizations. Kaufmann said he is dissatisfied with the SSHA’s response to his request.

“They are unable to document how much time and material the housing authority put into the group,” Kaufmann said.

The SSHA provided staff members to assist the housing group so it wouldn’t have to pay for its own staff, Ferraro said. He said the group paid the housing authority a management fee for work on Allen Drive.

“I have been comfortable with the group’s financial reporting to this point,” said Ferraro, who is executive director of the Capital District Regional Planning Commission. “We’ll see what the state audit says when it comes out, but there were no yellow flags.”

The non-profit group will discuss opening its meetings up to the public in May, Ferraro said. The housing group’s bylaws call for 5 to 9 members to serve on its board, and it’s undetermined if Spychalski and Hawthorne will be replaced.

In a related development, Grassley on Thursday released documents that the U.S. Housing and Urban Development sent to him in which HUD says that state and local governments have “primary oversight responsibility over public housing authorities.”

The memos also state that SSHA financial documents do not indicate that SSHA has any nonprofit affiliates; HUD had conducted “targeted oversight” of the SSHA; and Spychalski violated HUD contract rules by hiring his daughter without a board waiver. According to these documents, HUD forced the board to pass a retroactive waiver to keep her on, which it did last month.

Accounts Commissioner John Franck said Friday that HUD’s statement strengthens his assertion that the City Council can alter Spychalski’s salary and contract, which the city did not approve.

In a statement, SSHA attorney Scott Peterson said the authority had historically been accountable to HUD. “Nonetheless, recent events have brought this lack of definition to light, and moving forward the board and executive director will take a proactive approach to ensure that proper reporting and accounting are made to the appropriate entities.”

Public housing intrigue

For those who have been following the Saratoga Springs Housing Authority’s “Bedbug Gate” unfold over the last four months, this is breaking news. U.S. Sen. Chuck Grassley (R-Iowa) on Thursday released documents from the U.S. Housing and Urban Development that appear to finally put to rest who has oversight over the SSHA and other public housing authorities. It belongs to state and local officials, just as state housing law clearly stated. The report contradicts what SSHA board member Eric Weller had insisted – that only HUD controls public housing affairs in the city. More than that, it appears to open the door for possible action by the City Council to look back into salary raises and employment contracts given by the SSHA board without the City Council’s consent. That’s exactly what Saratoga Springs Accounts Commissioner John Franck has sought.

“Such State and local governments, through the boards they appoint,” have “primary oversight responsibility over public housing authorities,” HUD Assistant Secretary of Congressional and Intergovernmental Relations Peter A. Kovar wrote to Grassley on Wednesday (see below).

The letter also states that HUD’s Buffalo office had conducted “targeted oversight” of the SSHA, and that SSHA Director Ed Spychalski violated HUD contract rules by hiring his daughter without a board waiver. According to these documents, HUD forced the board to pass a retroactive waiver to keep her on, which it did last month. Lots more here:

2012-04-11_HUD_to_CEG_(SSHA)

McDonald receives city GOP backing

The Saratoga Springs Republican Commitee voted by a strong majority Wednesday to endorse state Sen. Roy McDonald over Saratoga County Clerk Kathy Marchione in their primary fight for the 43rd Senate District. McDonald also recently received the Waterford and Canaan committee endorsements. The endorsement marked a first vote for David Harper as chairman of the Saratoga Springs GOP committee.

“Tonight we heard from both candidates campaigning for the Republican endorsement in Saratoga Springs,” Harper said. “Our members asked the right questions and voted for the candidate they felt best represented the values and views of our city party. While the committee voted overwhelmingly in support of Senator McDonald, the committee applauds Kathy Marchione’s past and future work as our Saratoga County Clerk.”

Galway audit

The state Comptroller’s Office last week released its audit for the town of Galway. Its look into the town’s financial practices covered from Jan. 2008 to March 30, 2011. It says town leaders did not properly allocate sales tax revenues and relied heavily on unreserved fund balances to finance its operations. That reliance caused three operating funds to incur deficits during various years, the comptroller said. “Town officials should avoid relying on the availability of surplus fund balance as a recurring revenue source to finance recurring expenditures” because it leaves no cushion if unforeseen expenses arise, the report says. Here’s a copy, along with a written response from Supervisor George Hargrave:

Galway

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