Is the fix in? NY guv resignation rumors swirl

By Michelle Malkin  •  February 8, 2010 11:06 AM

SEIU/WFP operative-turned-White House political director Patrick Gaspard wants him gone.

President Obama wants him gone.

New York Democrats want him gone to clear the way for favored machine son Andrew Cuomo.

That all explains the massive amount of buzz over New York Democrat Governor David Paterson’s rumored resignation:

Gov. David Paterson met privately with key Democratic leaders about his re-election plans as questions swirl around the state capitol about a variety of unproven accusations involving the Democratic governor’s personal conduct.

Paterson campaign spokesman Richard Fife said the weekend meetings and calls had nothing to do with the accusations but were “routine re-election campaign calls.”

“The governor started making calls two weeks ago to step up his campaign effort and get ready to officially announce his re-election campaign,” Fife said. “The calls were — and are — going well … And then look what happens — a coordinated effort to stop him and spread rumors.”

A Democrat close to the situation, though, said the meetings included discussions about whether Paterson would resign or announce he will not run because of the unsubstantiated claims in the whisper campaign surrounding the governor’s behavior. The Democrat spoke on condition of anonymity because of the sensitivity of the issue.

…”I’ve never seen the rumor of a story becoming the story as this one has,” said Doug Muzzio, politics professor at New York City’s Baruch College.

Here’s the latest on Paterson’s damage control efforts.

No happy endings here.

***

The NYPost has an exclusive on some of Paterson’s corruption woes:

Gov. Paterson is lashing out at top aides for the growing debacle surrounding what they consider a “corrupt” Aqueduct gambling deal decision — and suggesting that they’ll soon be fired, The Post has learned.

“He’s become paranoid. He sits gnashing his teeth, looking around for scapegoats among the people around him,” said a source frequently in contact with Paterson. “He’s lecturing them, launching into tirades, and he’s demoralized the entire staff in the process.”

In response, several Paterson aides have signaled they may quit over what some call his “corrupt decision” to give the lucrative Aqueduct gaming contract to a questionable consortium that includes the Rev. Floyd Flake of Queens, whose political support the poll-challenged governor has aggressively sought.

“Aqueduct was the last straw for many of them, they all want out,” said a source close to Paterson’s aides. “Even on the inside, the Aqueduct decision is seen as corrupt,” added a second administration source.

***

Meanwhile:

Vilifying corporate America over executive salaries and bonuses may be great populist politics, but it is adding up to a gaping hole in the state budget.

Just two weeks after Gov. David A. Paterson released his proposed budget for the fiscal year starting April 1, the state’s fiscal picture has worsened sharply. Most of it is attributed to a drop in Wall Street revenue.

Gov. Paterson foresees an $8.2 billion deficit in the next fiscal year, up $750 million from what he anticipated when he released his $134 billion spending proposal for next year. An estimated $400 million of the higher deficit is attributable to increased Medicaid costs, but much of it stems from lower revenues.

The state has collected about $400 million less than projected from last year’s “millionaire’s tax” tax on high-income New Yorkers. However, Wall Street’s response to the national outrage over huge year-end bonuses has reduced state revenues by about $1 billion less than expected at the end of January…

…Restrictions on compensation forced on banks that accepted federal bailout funds have not only limited cash bonuses but also caused firms to alter how they pay their top executives in order to remain competitive. More companies are using restricted shares of stock that cannot be sold for a year or more and leaves it for recipients to decide when to pay taxes on the shares. Most have chosen to defer their tax obligations.

The changed compensation payments and the timing of the bonus payouts each account for about half of the tax shortfall, Mr. Megna said. The state could recover by April about half the taxes not paid by Wall Street. The rest could take two or three years to recoup.

But it doesn’t end there. The lost income ripples throughout the regional economy with less spending on dining out, new clothes or new housing that sustains jobs and generates additional income and sales tax revenues….

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Posted in: Politics,SEIU

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Comments


  1. #1
    On February 8th, 2010 at 11:10 am, RedDog said:

    Wow. Full panic mode. The Dems are pulling the eject lever.

  2. #2
    On February 8th, 2010 at 11:13 am, granite said:

    …David Paterson….

    This might be an illustration of “soft liquidation” by socialists/fascists/statists; as opposed to the Night-of-the-Long-Knives type.

  3. #3
    On February 8th, 2010 at 11:13 am, swmbo said:

    Oh Oh, this proves trickle down really works. Bad news for democrats.

  4. #4
    On February 8th, 2010 at 11:17 am, TigerLady said:

    Think the Dems might have been behind the rumors? It will be interesting to see if Paterson will cave. I don’t think he’ll give up so easily.

    Popcorn anyone?

  5. #5
    On February 8th, 2010 at 11:18 am, RedDog said:

    What a change a year makes. I’m looking for this new year to begin the systematic demise of 19th century Marxian Socialist big government – a progressive (no pun intended) wave running through all 50 states.

    Follow that up with a reform of the nation’s public school systems to eliminate Left-wing indoctrination of our kids, a Constitutional balanced budget amendment…. my imagination runs wild.

  6. #6
    On February 8th, 2010 at 11:19 am, max said:

    hmmm… poll: which will it be
    - dead girl
    - live boy

    ????

  7. #7
    On February 8th, 2010 at 11:21 am, RobM1981 said:

    Gotta love fratricide…

    In any case, here’s the deal: Paterson, whether you like him or not, speaks truth to power. He has told the NYS Senate and Assembly: “we are out of money, period. No more patronage for you, me, or anyone else. We are broke.”

    They don’t want to hear that. They want Cuomo to come in and pretend that the good times continue to roll.

    And they will, for a few months. But all this will do is send them further up crap-creek.

    NYS *is* broke, and Paterson *is* correct.

    The Demoncrat response: shoot the messenger.

    Classic. Let’s watch them eat their own.

  8. #8
    On February 8th, 2010 at 11:21 am, granite said:

    On February 8th, 2010 at 11:19 am, max said:
    hmmm… poll: which will it be
    - dead girl
    - live boy

    ????

    Excellent!!

    Rimshot!!

  9. #9
    On February 8th, 2010 at 11:22 am, EMT Bill said:

    I live in NY. I didn’t vote for Paterson, and it is clear to me that he was chosen to be the Lt. Gov candidate based on where he was from (Harlem) and the idea that he wouldn’t be a threat to the candidate for governor, Mr. Spitzer. At this point though, he has turned out to be the most refreshing politician in New York State. He has stated clearly that we have a fiscal crisis, and that the crisis is the result of a dysfunctional government.

    He obviously must be replaced.

    The right does not yet have a realistic candidate for governor, and Andrew Cuomo is an expert at pushing the right buttons for maximum emotional impact. A politician who looks at a problem and states the obvious has no place in NY state politics.

    The best thing that could happen to NYS is the declaration of bankruptcy. At that point it is possible the electorate would decide to stop returning to Albany the dopes we have been sending.

  10. #10
    On February 8th, 2010 at 11:26 am, beenthere said:

    I see little to celebrate here. Gov. David Paterson was bad, but his fatal sin was that he was not bad enough. You can be confident that whoever the replacement is, the new person will be far worse. Do I celebrate? In a sense I do, since I loath the NY political establishment almost as much as I loath Chicago’s. The will get what they deserve. Unfortunately, so will a lot of people who don’t deserve it.

    Things are just warming up, folks. Anyone who thinks we are going to be singing “Happy Days are Here Again!” in 2011(3), is sadly mistaken. Yeah, that’s a prediction you could take to the bank. Too bad the bank folded.

  11. #11
    On February 8th, 2010 at 11:28 am, PatriotRider said:

    You know, I don’t think Paterson ever saw this coming.

    OK, cheap shot but the temptation was too much for me to bear.

  12. #12
    On February 8th, 2010 at 11:31 am, Flyoverman said:

    You get this vision of Obama walking around this table of prominent Democrats who are seated in their chairs listening to him. Obama’s dressed in a tux and carrying a baseball bat, just like the scene in “The Untouchables.”

    Don’t be a wounded pirahanna in a school of pirahanna.

  13. #13
    On February 8th, 2010 at 11:31 am, RedDog said:

    On February 8th, 2010 at 11:22 am, EMT Bill said:

    The best thing that could happen to NYS is the declaration of bankruptcy. At that point it is possible the electorate would decide to stop returning to Albany the dopes we have been sending.

    All the more reason for all states to reduce government. You have to assume they are all stupid and/or self-serving.

    FYI the Federal government is now over three time larger than it was under Reagan. ???? Yowza yowza yowza. You got to gimmee some ‘mo.

  14. #14
    On February 8th, 2010 at 11:37 am, heroyalwhyness said:

    ditto what EMT Bill #9 said

    Better to deal with the devil you know. In this case, since the SEIU and Obama have it in for Paterson, I’ll do whatever I can to stop them.

    Cuomo for NY? Been there, done that.

    Strongly decline Cuomo 2.0.

  15. #15
    On February 8th, 2010 at 12:00 pm, Rogue Cheddar said:

    Watching new TV show “DeSpartacus”
    The Democrats version of gladiatorial sport: Courageous fighting of blind kittens!

    (munching popcorn) More cheese Gromit!

  16. #16
    On February 8th, 2010 at 12:06 pm, J S Ragman said:

    A Democrat close to the situation, though, said the meetings included discussions about whether Paterson would resign or announce he will not run because of the unsubstantiated claims in the whisper campaign surrounding the governor’s behavior.

    I’m with Flyoverman on this one. It’s got Chicago-style politics written all over it.

  17. #17
    On February 8th, 2010 at 12:11 pm, granite said:

    On February 8th, 2010 at 12:06 pm, J S Ragman said:

    I’m with Flyoverman on this one. It’s got Chicago-style politics written all over it.

    Agreed.
    Tomayto, tomahto.

    Long knives…baseball bats – take your pick!

  18. #18
    On February 8th, 2010 at 12:25 pm, K2 said:

    More proof that ‘Taxing the Rich’ does not result in more money in the government coffers.

    Now, if we could just get the electorate to wake up to that fact, and vote in fiscal conservatives, we could get this country moving again.

  19. #19
    On February 8th, 2010 at 12:31 pm, 24Klady said:

    If they’re out of money they can hit up Bloomberg for a tidy little loan. He’d be happy to give it up if everybody promised to throw their guns away.

    Patterson will have to join hands with Kalyfornia’s gov and petition for dual bankruptcies (sp?)…..Step down? Naw, not unless ‘Bambi has got something good in mind.

  20. #20
    On February 8th, 2010 at 12:36 pm, granite said:

    On February 8th, 2010 at 12:31 pm, 24Klady said:

    Naw, not unless ‘Bambi has got something good in mind.

    He has nothing in mind.
    Even if he had, it would not matter.

    The only thing that matters is what BHO’s handlers/string-pullers have in mind

  21. #21
    On February 8th, 2010 at 12:37 pm, John Deaux said:

    Honestly, if I were Paterson and facing an $8 billion dollar deficit and the crazies wanted me out because I wasn’t out to tax and spend even more, there’s no way you could get me to run for re-election.

    I’d be happy to step out of their circular firing squad.

  22. #22
    On February 8th, 2010 at 12:39 pm, davidjamesduprey said:

    Don’t be a wounded pirahanna in a school of pirahanna.

    Love that!

    I’m in New York and I almost feel bad for Patterson. He has tried to bring reform to NY, with his ethics bill and wanting to cut spending, while being the typical Democrat and giving raises to his staff and spending money for his own projects and being ethically challenged himself.

    His main problem is no one can trust him as he seems to act like he can spend but no one else should. Typical Democrat hypocrite.

    The State Dems in the NY Legistlature run by Sheldon Silver (in office since 1976) and one of the most corrupt Assemblymen in the state is really running the show. He keeps stopping any and all efforts made by Patterson.

    As much as Patterson, in his own delusion, thinks he can win the election (not a re-election since he was appointed) he is a lame-duck gov. The Dem party led by Silver want the AG Andrew Cuomo, a long-time democrat-machine political family whose father (Mario) ran the state nearly into the ground to run. He refuses to announce as he waits for the last minute and seemingly doesn’t want a primary challenge. I suspect there’s some dirt in his closet under the skeletons already in there.

  23. #23
    On February 8th, 2010 at 12:43 pm, davidjamesduprey said:

    On February 8th, 2010 at 12:37 pm, John Deaux said:

    Honestly, if I were Paterson and facing an $8 billion dollar deficit and the crazies wanted me out because I wasn’t out to tax and spend even more, there’s no way you could get me to run for re-election.

    Except that Patterson who said he wouldn’t balance the budget on the backs of the people is doing just that.

    He has proposed new taxes on Cigarettes and Alcohol after last year’s $1.25 increase on Cigs. New license plates which will cost each taxpayer $25-30 per vehicle. A sugar tax on all carbonated beverages. Double the deposit on all bottles and now extended to Water (which I think is a good thing, not the doubling, but the expansion). Plus the long list of new and higher fees on everything from Hunting & Fishing licenses to registration fees etc.

    While he proposes many cuts in Health and Education, he’s increasing taxes and fees all over the place.

  24. #24
    On February 8th, 2010 at 12:46 pm, BobonStatenIsland said:

    Paterson is not going anywhere (until after the election). Why would he leave? He knows he isn’t well liked by the Democrats. Where would he go? HE staying put. Let the rumours fly. Disarray is good for us. Let the Dems fight amongst themselves. Look what fun Harold Ford is bringing to the upcoming races in NY. Accusing him of flip flopping. That is RICH when you see how Gillabrainless flipped on EVERY issue once she became Senator. I keep saying New York is RIPE for the picking. ANY reasonable Conservatives can ride in to ALL three seats up for election. That is the Govenor’s seat and BOTH Senator seats. Yes both. Gillibrainless’s seat is a special election and Schmucky Schumer’s is just up. Believe me, Schumer is very happy that most of the attention is on Gillibrainless. He is very vulnerable.

  25. #25
    On February 8th, 2010 at 12:55 pm, MarkD said:

    At this rate, the only people left in the state in twenty years will work for it. They will all be griping about the taxes and planning on retiring to Florida to escape them, as soon as they get their thirty in. They will continue to vote for the Democrats, because they will tax the evil rich. They will also complain about how their kids can’t find jobs, and how expensive it is to live here.

  26. #26
    On February 8th, 2010 at 1:02 pm, John Deaux said:

    On February 8th, 2010 at 12:55 pm, MarkD said:
    At this rate, the only people left in the state in twenty years will work for it. They will all be griping about the taxes and planning on retiring to Florida to escape them, as soon as they get their thirty in.

    Then they come down here and vote for Democrats.

  27. #27
    On February 8th, 2010 at 1:07 pm, davidjamesduprey said:

    On February 8th, 2010 at 12:46 pm, BobonStatenIsland said:

    Look what fun Harold Ford is bringing to the upcoming races in NY. Accusing him of flip flopping. That is RICH when you see how Gillabrainless flipped on EVERY issue once she became Senator.

    I agree Patterson will stay. It’d have to be REALLY bad for Patterson to resign. I believe Gillibrand was lobotomized by Schumer the moment she was elevated to the Senate. She was a conservative, gun-loving, Dem; now she’s Schumer’s puppet.

    On February 8th, 2010 at 12:55 pm, MarkD said:

    At this rate, the only people left in the state in twenty years will work for it.

    Absolutely! I am young and I keep asking myself, why do I stay? I have no ties to NY other than family and two siblings have already left NY.

  28. #28
    On February 8th, 2010 at 1:16 pm, madmonkphotog said:

    It finally occurred to me. Democrats are parasites. They spread, feed on a host body, kill it, then move on.

    They’re parasites.

  29. #29
    On February 8th, 2010 at 1:27 pm, granite said:

    On February 8th, 2010 at 1:16 pm, madmonkphotog said:

    It finally occurred to me. DemocratsSocialists are parasites. They spread, feed on a host body, kill it, then move on.

    Correct.

    Old news, however….

  30. #30
    On February 8th, 2010 at 3:28 pm, karl9000 said:

    Oooo, a dynamic response invalidates a static assumptions of tax revenues.

    Stick a pin in someone and they’ll always respond, sometimes in “unexpected” ways…

  31. #31
    On February 8th, 2010 at 7:41 pm, happyscrapper said:

    I don’t know if this has been mentioned, but isn’t Patterson the one who, when Rush Limbaugh said he was moving out of NY because he was being taxed to death said, “If I had known that, I would have raised taxes sooner.” Well, he is now living with the consequences of his words and his actions. I still can’t figure out why Trump stays. I thought he was a better businessman than that.

  32. #32
    On February 8th, 2010 at 11:14 pm, jangar said:

    President Obama wants him gone.

    Barry’s a bit hard on the handicapped.

    Gov. David Paterson…

    …bus jack

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