State officials on Friday evening filed a U.S. District Court-ordered remedial plan for how to ensure that residents of adult homes in New York City have the opportunity to live in settings that are more integrated into the community. District Court Judge Nicholas Garaufis ruled in September that about 4,300 people with mental illness living in New York City adult homes were not getting adequate care. The judge said that was a violation of the Americans with Disabilities Act and the Rehabilitation Act, which mandate that they live in the least restrictive setting possible.

   Under the plan, which has to be approved by the court, the state would fund 200 units of supported housing per year for five years—2011-12 through 2015-16—for a total of 1,000 units. The housing and other elements of the plan, which include educating adult-home residents about the supportive-housing option and performing clinical evaluations of their eligibility, are contingent on the Legislature’s passing budgets that include adequate funding, according to the plan.

   If the number of people eligible for supported housing exceeded the number of units available, the state would seek additional funding through the budget and assistance from the federal government.

   If state officials believe the number of individuals who want to move into supported housing is less than the number of units being provided, they would ask the court to modify the order and reduce the number of units. If the opposite were true, the state would submit a proposal to deal with the shortfall, the plan said.
   The U.S. Department of Justice requested permission to intervene in the lawsuit, which Disability Advocates Inc. filed six years ago on behalf of the adult-home residents. Adult homes are for-profit institutions that have long been criticized for their conditions and treatment of the mentally ill. The Justice Department told the court that the state’s remedy may serve as a model for other courts around the country with similar cases.

Remedial Plan

   This year’s state $3.2 billion budget deficit is far from settled, but it’s time for the governor’s Division of Budget, the Legislature and the state Comptroller’s Office to start working on the 2010-11 spending plan.

   At 9:30 a.m. Monday, the day before the special budget-cutting session called by Gov. David Paterson for the current fiscal plan, the Division of the Budget, the Senate Finance Committee, the Assembly Ways and Means Committee and Comptroller Thomas DiNapoli’s office will hold a public “Quick Start” budget meeting at the Capitol to discuss their revenue and disbursement estimates for the 2009-10 and 2010-11 fiscal years in the areas of projected deficits, school aid, Medicaid costs, public assistance and other areas.

   After the meeting, the Division of the Budget and the Legislature have to develop a “Quick Start” budget report and make it publicly available no later than Nov. 15. The date is two months before the constitutionally mandated deadline for release of the governor’s budget proposal. The Budget Division projects there will be a $6.8 billion shortfall in 2010-11.

   The Assembly Republican Minority Conference, which released its “Quick Start” report Thursday, thinks the shortfall will be closer to $3.7 billion this year and $7.3 billion next year.

   DiNapoli’s office said in its report that the current deficit could exceed $4.1 billion, and the state faces a cumulative gap in its general fund of $27.5 billion through 2011-12, $3.6 billion more than the governor’s estimate.

   “Albany has played roulette with taxpayers’ money for too long,” DiNapoli said. “And now, in the face of the greatest fiscal challenge in our recent history, the game continues,” DiNapoli said, adding that the state has to “stop treating New Yorkers like ATMs.”

   The state’s Medicaid program will “continue wreaking havoc on state and local government finances,” according to the Republicans. The state’s share of the program will total $14 billion this year and $16.5 billion in 2010-11, the GOP report projects. In the area of school finances, state aid is expected to increase by about $453.5 million in 2010-11, reaching 22.04 billion.

Gov. David Paterson today called talk of Senate Democrats potentially boycotting his address Monday to a joint session of the Legislature “shameful” and said “I’m even insulted by the delay” in debating whether to come.

This morning, a spokesman for the Senate majority said the conference plans to attend, and aides insisted that it was never the conference’s position not to attend, but that some members didn’t plan to go.

But Paterson, in an interview with Gannett’s Albany Bureau, was dismayed that it was even considered.

“I think even the wasted time discussing whether or not they should come to the joint session indicates how shameful the conduct of the senators continues to be,” he said. “This group, after what they did at the end of the session, I would think would be on their best behavior.”

He continued that “It is standard that in an emergency that a governor should have the right to call the Legislature into joint session to try to lay out what he thinks the course should be and then to meet and dialogue with the individual legislators and see if the governor can persuade them to respond.”

Paterson said his understanding was that some Senate Democrats didn’t like that he has dismissed their plan to raise $500 million by refinancing tobacco bonds. He said that plan wouldn’t cut the deficit long term and would only require the state to pay back the money—at a high interest rate—in the future.

“I’m against pushing off problems into the future. I’m not doing it anymore,” he said. “It’s only going to create the problems in New York state that I’ve described that other states have had.”

Paterson said Senate Democrats have offered him a proposal to close the current $3.2 billion deficit that makes no cuts to education and health-care, which Paterson said is unacceptable.

“They didn’t suggest one cut—not one dime,” Paterson said.

Travis Proulx, spokesman for Senate Democrats, said the conference has concerns with mid-year cuts to schools and health-care and are working with lawmakers and the governor’s office on alternatives.

Gov. David Paterson this morning said he doesn’t feel empowered that President Obama was unsuccessful in helping Democrats win governor’s races in New Jersey and Virginia, which could dampen the White House’s attempts to have Paterson back away from a run next year.

“I don’t feel empowered by any Democratic losses. I support Democrats and I support the president,” Paterson said on “Morning Joe” on MSNBC.

Paterson said his new television ads are aimed at telling his story and also to beat back the anti-incumbency movement that took place Tuesday.

“How could I be empowered? Every incumbent suffered shocking challenges in just the past couple of days. That doesn’t empower me at all,” Paterson said. “That’s why I’m trying to get my story out that I have kept New York’s finances stable in very very difficult times.”

Here’s the full clip:

The Senate Democratic majority will now attend Gov. David Paterson’s address Monday to a joint session of the Legislature, a spokesman said this morning.

“They still don’t want to, but out of respect for the governor’s office they are going to attend,” said spokesman Austin Shafran.

Shafran said the conference expects all members to attend Monday and Tuesday’s special session. Several lawmakers are in Puerto Rico for an annual conference.

But Shafran said that Senate Democratic Leader John Sampson and Senate President Malcolm Smith are due back Sunday evening.

Yesterday afternoon, several Senate Democrats said they were unaware that a boycott was afoot and that they planned to attend the speech with the other conferences in the Senate and the Assembly.

The address is scheduled for 3 p.m. Monday.

Senate Democrats were facing criticism if they weren’t going to attend.

Sen. Thomas Libous, R-Binghamton, said yesterday it would be disrespectful to the governor.

“They’re showing their dysfunction and quite frankly they are not being very respectful,” Libous said. “The governor is the governor and if he’s calling us back to share with us how he wants to address a very serious deficit problem, they should be there along with all the members of the Legislature.”

Updated: Shafran called back to clarify his early remarks.

“It’s not that they don’t want to attend,” he said. “They’re certainly going to attend, they just want to make sure that it’s a productive use of the time and by that I mean that they continue to negotiate on coming to an agreement on a responsible budget plan.”

Sen. Neil Breslin, D-Albany County, held a press conference today at the Capitol to announce a bill that would require disclosure of any financial contributions to a legal defense fund for politicians in the wake of a fund set up by Sen. Hiram Monserrate, D-Queens, Gannett’s Jon Campbell reports.

The bill calls for disclosure of all defense fund-related contributions, including the name of the donor and the amount given, dating back to Jan. 1 and going forward.

“When I heard about the creation of defense funds, I thought at the time, ‘That has to be illegal, and if it isn’t, then we have to find something to do about it,’” Breslin said.

Monserrate created a defense fund that is helping to pay his legal fees after he was convicted last month of misdemeanor assault involving his girlfriend.

But Breslin was careful not to single out any one politician. Former Senate Republican Leader Joe Bruno also recently set up a defense fund as his court case continues on corruption charges.

“I would never, ever support legislation that was directed at one person,” Breslin said. “I’m remissed that I haven’t done this legislation earlier.”

Breslin did have strong words for Monserrate and Sen. Pedro Espada (D-Bronx), who each switched their political allegiances in the Republicans’ ill-fated Senate coup earlier this year. That’s not a new thing for him.

“I have already identified myself as thinking (Monserrate) should resign at the nearest possible time, and he should be joined by at least one other,” Breslin said, referring to Espada.

Breslin did, however, recognize Monserrate’s legal right to sit during next week’s special session. A Senate panel has been formed to decide Monserrate’s fate.

“I don’t think he should be welcomed, but I think he should be legally allowed in,” Breslin said. “I don’t think there will be any, you know, hugging.”

As lawmakers seek to close this year’s $3.2 billion budget gap, Sen. Jeff Klein, D-Bronx, is proposing legislation that would toughen laws on tax scofflaws.

Klein estimates that the state could bring in about $400 million if it establishes a tax amnesty program, which would waive penalties if tax evaders pay up. As part of his budget-cutting plan, Gov. David Paterson has included the program but estimates it would bring in about $250 million this year and $100 million next year.

The new twist on Klein’s plan is that it would give state agencies the authority to deny a delinquent taxpayer the renewal of a professional license after being notified by the state  Department of Taxation and Finance.

His office produced a list of some people who owe six-figure sums to the state but also hold state licenses, such as liquor and real estate licenses for their businesses.

“I think there’s a real case to be made that someone would think twice before running up a huge tax bill in the state of New York if they know that their professional license is in jeopardy,” Klein said.

In an attempt to build support for his candidacy next year, Gov. David Paterson released two television ads for his 2010 campaign that will begin airing statewide Friday.

The first ad, titled “Some Say,” tries to make the case for how he’s made tough decisions in the state’s fiscal crisis and ends with the title “Governor Paterson, The People First.”

At the end of the 30-second spot, he says, “It might have been easier if all I thought about was running for Governor, but I think it’s more important to do what’s right for the people of New York.”

The second ad is a biographical ad, titled “When,” and discusses how he overcame the odds because of his blindness and even how he’s made mistakes at governor. It concludes with “but in the depths of an historic recession, you take what you have learned and have the strength to do what’s right for the people of New York.”

Here’s each script and each ad.

“Some Say”
“Some say I shouldn’t be running for Governor.
Some state legislators said that when I forced them to close 30 billion dollars of deficits.
Some union leaders said that when I asked their unions to make the same sacrifices that everyone else was making.
And some big corporations said that when I made them pay their fair share in taxes.
It might have been easier if all I thought about was running for Governor but I think it’s more important to do what’s right for the people of New York.”

“When”
“When this is what you see of the world, you learn to listen.
When your family moves so you can attend a mainstream school, you learn to be strong.
When you graduate high school in three years, Columbia University and Hofstra Law, you learn you can excel.
And when you become Governor, you learn you will make mistakes.
But in the depths of an historic recession, you take what you have learned and have the strength to do what’s right for the people of New York.”

Even as Senate Democrats say they won’t return to Albany until they have a budget deal, Gov. David Paterson is ordering them back on Tuesday for a special session.

And, as he’s promised, he’s put out a long list of key priorities of his administration for lawmakers to consider adopting.

He wants them to close the $3.2 billion budget gap; establish a cap on government spending, adopt a circuit breaker that would tie taxes to household incomes, and pass a same-sex marriage bill.

Other measures he put on the agenda include: enhancing penalties for operating a motor vehicle while impaired and expanding court-ordered use of ignition interlock devices; and creating the Tier V pension benefits that would lower pension benefits for new employees.

“The time to act is now, ” Paterson said.

The Empire State Pride Agenda was quick to put out with a news release praising Paterson for putting same-sex marriage on the agenda.

“”Marriage equality has been an issue Governor Paterson has long championed and we are thrilled he has called the State Senate back to Albany next Tuesday and  put the marriage equality bill on the agenda,” said the group’s executive director Alan Van Capelle. “We now expect that we will get the respectful debate and vote that we’ve been waiting for since June.”

The authority reform bill has been under discussion by Paterson and legislators for months after Paterson had expressed concerns about portions of the bill.

Assemblyman Richard Brodsky, D-Greenburgh, Westchester County, said they are “very close” to have the agreement between the sides completed.

“We’ve very pleased that after seven years of struggle to reform these institutions, it looks like it’s going to happen,” said Brodsky, who has been a chief critic of the scandal-scarred public authorities.

A week after it was revealed that Comptroller Thomas DiNapoli quietly restored pensions to the private attorneys he spent a year investigating, Attorney General Andrew Cuomo announced today that one of the top targets of their investigations has settled and will no longer receive state pension benefits.

Cuomo said Long Island attorney Lawrence Reich, who had been getting a pension of $61,596 a year, will have it stripped. Reich will have to pay back “more than $240,000 for his nearly 30 years of abusing the state’s public pension system.”

In September, DiNapoli had to restore about $500,000 in pensions to dozens of attorneys he stripped of their pension because two court rulings found that he didn’t give the lawyers due process.

One of those was Reich, who DiNapoli had to pay $92,394 in back pension benefits and proceed with providing him $5,133 a month until DiNapoli could hold a hearing to determine whether Reich and others should continue to get the pensions.

But Cuomo ended all that with Reich as part of the settlement.

Reich will pay the state $240,565.74 to end Cuomo’s investigation, forfeit his pension credits and withdraw his demand for a hearing with DiNapoli.

Reich was one of the original targets of the state investigation into private attorneys working as independent contractors for local school districts. In Reich’s case, he received nearly 30 years of “improper employment arrangements with six Long Island school districts,” Cuomo said.

“This lawyer epitomized the systemic waste and abuse in a state public pension system that routinely paid out millions in public funds to private-sector professionals who weren’t entitled to them,” Cuomo said in a statement.