Levy: Nursing Home Public Benefit Corporation Proposal is ‘The Worst of Both Worlds’

County Executive Says Measure Would Create New ‘MTA-Like Authority’ that Lessens County Oversight, Maintains Public Bureaucracy and Benefits, Increases Debt and Saddles the Taxpayers with the BillsCites 2004 State Comptroller Report on Erie County’s Experience, as Well as Nassau and Westchester PBC Issues

Hauppauge, NY – Suffolk County Executive Steve Levy this morning said a last-ditch proposal apparently being floated by State Senator Brian Foley and several Suffolk legislators opposed to privatization of the county’s 264-bed skilled nursing facility through the sale to a private operation presents ‘the worst of both worlds, where the county loses all oversight of operations of the facility but taxpayers are stuck with uncontrollable bills.”

The county executive said establishing a Public Benefit Corporation to take control of the Yaphank facility, as is expected to be proposed Tuesday, would create “an MTA-like authority that can raid the pockets of taxpayers without any accountability.” Under typical PBC proposals, a new, appointed authority is established, issuing taxpayer-guaranteed debt to ‘buy’ the existing facility from the municipality. Levy noted that Suffolk taxpayers would be responsible for paying that debt, as well as for subsidizing any future losses the PBC incurs in operating a facility that has run in the red for decades.

“We’ve already been hit by the MTA tax to bail out a government entity that operates with no accountability, how long will it be before Suffolk businesses are hit with the ‘JJF Tax’?” Levy added.

‘Socks It To the Taxpayers’

“This proposal is a bad idea at the worst possible time,” Levy said. “While every elected official in the state is talking about reducing the number of private authorities and levels of government, Senator Foley and his liberal spending friends are talking about building a new bureaucracy to sock it to the taxpayers.”

Levy said the downsides of a Public Benefit Corporation to the taxpayers include:

• Removing any county oversight or authority over operations and expenses at the facility;
• Continuing annual subsidy from county taxpayers for operating losses;
• Maintaining the municipal workforce with generous municipal pay and benefit packages at taxpayer expense;
• Issuance of debt, which would have to be guaranteed by county taxpayers, for the Corporation to pay for the acquisition of the facility – in essence, paying the county with its own bonded money;
• Increased costs in establishing a wide range of support services (maintenance, purchasing, payroll, legal, etc.) that are presently provided by the county;
• Possibility of federal loss of Medicaid reimbursements through this model

State Comptroller Faults Model

Levy also stated the fact that, unlike Erie, Westchester and Nassau, Suffolk’s skilled nursing facility is not associated with a municipal hospital, which presents the potential for an even greater taxpayer subsidy.

He cited a 2004 New York State Comptroller’s review of the experience of Erie County in establishing what is known as a Public Benefit Corporation to run its medical center and nursing home, which also acknowledged the problems experienced in Nassau and Westchester counties in establishing the same new level of bureaucracy.

“Erie County has followed the same unsuccessful method used previously by Nassau and Westchester Counties. They have taken a private hospital that was losing significant amounts of money as a county operation, saddled it with significant new debt that adds to the hospital’s fiscal burdens, and set it up as an independent agency with no specific new revenue or operational initiative that would help it achieve self-sufficiency. It is hard to see how the hospital becomes more cost-effective when the first action taken is loading it with debt.” (Executive Summary, emphasis added)

“Senator Foley is trying to bring Albany-nomics to Suffolk County: borrowing from ourselves by incurring new debt and making it sound like a win for the taxpayers,” Levy stressed. “The tax and spend faction of the Suffolk Legislature is throwing up this desperate, last-ditch proposal to distract their colleagues from making the right decision that protects the taxpayers – approving the proposed sale of the facility to a private operator,” said Levy.

Private Sale Brings Taxpayers $62 Million Over Five Years

Under Levy’s proposal, the contract for a sale price of $36 million includes the physical structure, land and the bed license. Levy said that sum would help the county significantly in meeting its projected 2010-2011 shortfall.

The net benefit from the proceeds of the sale, after bonds are paid off, is $20 million, and that the privatization effort will eliminate an $8-10 million annual deficit to the General Fund in running the facility, bring a projected five-year savings of approximately $62 million to taxpayers.

“Under private sale, the $20 million net benefit goes right to the taxpayers, and the $8-10 million annual subsidies by the taxpayer are ended,” Levy stressed. “Under the Foley plan, the $20 million paid to the county is coming from ourselves, borrowed money that taxpayers must guarantee, and taxpayers will continue to be responsible for paying operating shortfalls.”

The county executive stressed that the legislature’s in reviewing the proposed sale produced a second appraisal much in line with the $36 million sale price, and that a Budget Review Office report confirmed – as is required by law – savings of at least 10 percent annually.

Over the last few years, a number of New York counties have closed, downsized or privatized their nursing home operations including:

• Dutchess (closed)
• Niagara (closed)
• Westchester (closed)
• Orange (downsized)
• Nassau (downsized)
• Montgomery (privatized)

Additionally, Albany, Fulton, Genesee, Warren, Essex and Ulster counties are also exploring privatization or closure.

“If we are to avoid a budget disruption, significant layoffs or a massive property tax increase next year, I remind the legislature that the only legitimate alternative out there is this sale,” Levy concluded

NYS Leandra's Law -Interlock Provision in Effect August 15,2010

Paterson Announces New Provision of Leandra’s Law to Take Effect

Governor David A. Paterson joined the families of Leandra Rosado and Katie Flynn, as well as Nassau County Executive Edward P. Mangano, Senator Charles J. Fuschillo Jr. and Assembly Member Harvey Weisenberg to mark the effective date of a key provision of Leandra’s Law, which will require all individuals convicted of a felony or misdemeanor drunk driving charge – even first-time offenders who were not driving with a child under 16 – to install ignition interlock systems in any vehicle they own or operate. This provision takes effect on Sunday, August 15, 2010.

“This week, New York State will take a huge leap forward in our continuing efforts to make our roadways safer,” Governor Paterson said. “With this important provision, New York State now has some of the toughest DWI laws in the nation, with a strong focus on prevention. Requiring ignition interlocks for drunk drivers will prevent more senseless deaths and spare other families the endless grief suffered by those who knew and loved Leandra Rosado and Katie Flynn.”

New York joins nine other states in mandating ignition interlocks for first-time offenders, in addition to any other terms of sentence, such as prison, jail or probation. The devices must be installed for a minimum of six months and a maximum of three years for a misdemeanor conviction and five years for a felony conviction. Anyone attempting to circumvent an interlock device is guilty of a Class A misdemeanor, punishable by up to one year in jail.

In addition to requiring ignition interlocks, the Child Passenger Protection Act, known as Leandra’s Law, makes it a felony for an adult to drive drunk with a child under 16 in the vehicle. Governor Paterson signed this law on November 18, 2009, less than six weeks after 11-year old Leandra Rosado died from injuries sustained when the SUV she was riding in – driven by a woman who was allegedly drunk– crashed on the Henry Hudson Parkway in Manhattan. The driver of the SUV recently pleaded guilty to manslaughter charges.

Leandra’s father, Lenny, was instrumental in the passage of Leandra’s Law, just as the advocacy of Neil and Jennifer Flynn led to passage of legislation that created the crimes of aggravated vehicular assault and aggravated vehicular homicide. This legislation was enacted in 2007, two years after the Flynn’s seven-year-old daughter Katie, and the driver of the limousine she was riding in, were killed when a drunk driver slammed into the vehicle. The driver was convicted of murder and other charges by a Nassau County jury, and is currently serving an 18-year to life sentence.

Statistics cited by MADD (Mothers Against Drunk Driving) show that states with ignition interlock requirements experience a 35 percent drop in fatal alcohol-related crashes. In addition, fewer than 10 percent of drivers ordered to install the devices attempt to circumvent them.

Audit Reveals MTA $560 million overtime Budget "Not Effectively Handled"

By Erica Jackson

A recent audit of the Metropolitan Transit Authority (MTA) by New York State Comptroller Tom Di Napoli’s office has concluded what most suspected: That the organization is not effectively handling its $560 million overtime budget.

 

In his report, Di Napoli offered, “We found that the MTA has not effectively managed and controlled its overtime. Rather there has been a culture of acceptance among MTA managers regarding overtime, and no real efforts were made to make significant changes in long-standing practices that resulted in routine, and often unnecessary, overtime.”  

 

Specifically, the report reveals that numerous employees are being paid so much overtime that their overtime pay exceeds their annual salaries.  Citing examples, the report states that in 2009 3,274 employees received overtime pay that equaled 50 percent of their annual salary; 147 of those employees were compensated with overtime pay that exceeded their annual salary.  In addition, more than 15 percent of the MTA’s 71,000 employees received overtime that equaled 30 percent of their annual salaries.

 

The need for the overtime, stated the report “was often not necessary.”  In fact, the report indicates that there was no valid justification for much of the overtime and that “some may not actually work all of the overtime hours claimed.”  Some of the overtime was also due to union rules, absenteeism and for services, such as routine track maintenance “that was performed by workers on overtime, because the workers’ regular work shifts coincide with peak service periods when the tracks are not available for routine maintenance.”

 

Under state legislation, the MTA, which has a budget of $4.6 billion, is supposed the be financially self sufficient by funding itself through fares. However, year after year, the MTA has reported financial deficit.  The deficit prompted state officials to a enact a controversial tax to support the MTA in March 2009

 

As previously reported on SmithtownMatters.com, the MTA Employer Payroll Tax requires that employers, including municipalities and school districts pay $3.40 on each $1,000 of payroll.  The tax has many up in arms and has prompted business owners and five Suffolk County towns, including the Town of Smithtown, to file lawsuits against the state.  The lawsuits claim the tax is “unconstitutional.” Smithtown Assemblyman Michael Fitzpatrick said that while most are not surprised by the audit, he does not believe the city delegation will allow for a repeal of the MTA tax.  “It makes me you really angry.  Why weren’t the inefficiencies of the MTA rung out before this tax was imposed?  Where was the comptroller?”

 

Perhaps, however, the report may prompt his colleagues to see that work rules and unions must be addressed before state falls into financial ruin.  He said “If we don’t start saying ‘no’ to unions, then the state is going to go off the deep end.  It is also incumbent upon the unions to start participating and help out.  The store has been given away for years for these people.”

 

Smithtown Councilman Kevin Malloy has his fingers crossed that the audit helps in the town’s fight against the MTA tax. He said, “The residents of Smithtown should not be paying for a service that they don’t receive.  Most residents don’t use the railroad. The MTA is very much out of control with very poor management. This is just a bad deal.”

 

Bill Schoolman, owner of Classic Coach in Southampton, said the audit verified what he already knew:  “That the MTA’s overtime is ridiculous and that there is no justification for it.” He said, “It further proves that the MTA payroll tax is a corrupt tax because it subsidizes and supports a corrupt organization.”  Schoolman has filed his own suit against the MTA.  He reports that the tax costs his business about $20,000 a year. 

 

The MTA says it is responding to problems outlined in the audit and is aware of the overtime problem.  In a statement to SmithtownMatters.com, the press office writes, “The comptroller’s audit confirms what we reported earlier this year and reinforces the need for aggressive actions we’re taking to reduce unnecessary overtime.  We will do our part, but active participation from our labor unions is the only way to make the type of impact we want.”

 

Under its plan to reduce overtime, the MTA says it will closely monitor shifts greater than 16 hours to reduce double-time payments; aggressively enforce sick leave abuse; report to agency presidents on a biweekly basis on overtime; work with the labor unions to change work rules that lead to unnecessary overtime.

 

The plan, says the MTA is expected to reduce overtime costs and save $22 million by the end of 2010 and $60 million in 2011.

SCPD Investigating Motorcycle/Car Accident In Nesconset

Suffolk County Police Fourth Squad detectives are investigating a crash that killed a Lake Grove man and injured three other people.

Cosimo Mollo was driving his 2007 Mercury Milan east on Route 347 in Nesconset, making a left turn onto Lake Avenue when his vehicle was struck by a 2007 Suzuki motorcycle traveling west at 10:50 p.m. Richard Primo, the driver of the motorcycle, and his passenger, Timothy Gray, were both ejected from the bike.

Primo, 30, of Williams Blvd., Lake Grove, was transported to Stony Brook University Medical Center where he was pronounced dead. Gray, 25, of Smithtown Polk Blvd., Centereach, Cosimo Mollo, 81, and his wife, Lucille Mollo, 77, both of Symphony Dr., Lake Grove, were all transported to Stony Brook University Medical Center for treatment of non-life-threatening injuries. 

Both vehicles were impounded for safety checks and the investigation is continuing.

Grass Roots Effort Will Force an Open Conservative Primary

SUFFOLK B.O.E. CERTIFIES ‘OPPORTUNITY TO BALLOT’ PETITIONS

SMITHTOWN, NY — The Suffolk County Board of Elections (BOE) has upheld the Opportunity to Ballot (OTB) petitions collected and submitted by the Chris Cox for Congress campaign with the help of courageous Conservatives, dedicated Tea Party patriots, and supportive Republicans.  This OTB victory is an unprecedented achievement in the First Congressional District, and likely across New York State, forcing an open Conservative Congressional Primary over the no-holds-barred opposition of the Party’s leaders and its millionaire designee.
 
Under the Law’s “Opportunity to Ballot” (OTB) provisions, Team Cox filed 850 signatures with the Suffolk County BOE in Yaphank, although only 554 signatures were required.  Both the Republican and Democratic Commissioners certified the OTB petitions.
 
In a letter to the Committee to Receive Notice for the OTB effort, the commissioners wrote: “You are hereby notified that written objections and specifications to a designating petition, and/or supporting documents, for Opportunity to Ballot for the position of Representative in Congress, 1^st Congressional District of the Conservative Party filed here have been determined by the Board of Elections to be insufficient.  Therefore, your petition has been declared valid.”
 
Upon receiving the letter, Cox reiterated his thanks to the Conservatives who carried the petitions, as well as those who signed, to preserve the right of party members to have a say in their standard-bearer in November.  His opponents have already carried through on their threat to use the courts to deny the Opportunity to Ballot demanded by nearly eight percent of the enrolled Conservatives in the First CD.
 
“Our opponents are unhappy that we’ve put the choice back in the hands of the people, where it always belonged,” said Cox.  “I was honored to be able to work with so many people dedicated to ensuring a fair and open primary, and we will defend vigorously their right to vote.”
 
Chris Cox is the real conservative Republican in the First Congressional District contest to unseat a liberal Democratic incumbent.  Cox is now poised to win not only the Republican Primary, the party of which he has always been a member, but the Conservative Primary as well.