The following appears in the February 24, 2010 issue of the Long Island Business News:

In recent months prominent members of New York’s political establishment have been clamoring for a state constitutional convention. Former New York City Mayor Rudy Giuliani, Rick Lazio (the presumptive Republican nominee for governor) and numerous others insist that only a major overhaul of our state charter will cure our fiscal ills and end Albany’s dysfunctional governing process.

Frankly, I believe holding a convention is a bad idea because it could easily become a field day for New York’s special interest groups who will dominate the machinery to elect delegates.

If history is a guide, it is fair to conjecture that a constitutional convention will not be dominated by elected delegates who are civic-minded citizens, frustrated tax payers or constitutional scholars. At the last gathering held in 1967, 91 percent of the delegates were local pols or union officials. All the officers of that convention were members of the state Legislature.

Some pundits argue that in these difficult financial times the dynamics of the convention could be different because municipal and health care unions, leftist groups like ACORN and their political arm, the Working Families Party, will be on the defensive, fearing the possible loss of constitutionally protected government-employee pension guarantees.

This uncertainty, in my judgment, will not cower but energize ACORN and its allies to run convention delegates in every senatorial district as well as a full slate of at-large candidates and to spend whatever it takes to elect a majority.

A convention controlled by these forces could draft a new constitution that would eliminate various safeguards that protect the rights of citizens and radically change the relationship between tax payers and their state government and local municipalities.

Unlike the U.S. Constitution, which is relatively brief, New York’s Constitution is filled with minutiae and runs 65,000 words. There are lengthy and ponderous sections on state finances, local finances, local governments, corporations, bank charters, education, social welfare, public employees, housing and taxation.

Here are a few constitutional changes that an out-of-control convention could prescribe:

• Elimination of the Executive Budget Amendment, which gives the governor the responsibility for drafting the budget.
• Elimination of the governor’s line item veto.
• Elimination of voter approval of state general obligation debt.
• Elimination of restrictions on indebtedness of local governments.
• Elimination of restrictions on use of proceeds from state and local government bond issues.
• Elimination of limitations on amounts to be raised by real estate taxes for local purposes.
• Expanded power of the state government by restricting home rule powers and repealing the local government Bill of Rights.
• Expanded pension rights and perks for public employees.

Such constitutional revisions would create a state leviathan whose arms would reach into every home to pick the last dollar out of every citizen’s pocket. Cowardly Albany legislators dancing to the tune of big-government leeches would strip county and local governments of their autonomy, turning them into nothing more than administrative pawns of the state. Albany would control every aspect of local government – schools, libraries, firehouses – and bureaucrats, not taxpayers, would dictate spending and policies.

New Yorkers have exercised their power “to revise the Constitution and amend the same” sparingly. In the past century they have approved only three conventions and overwhelmingly rejected the proposed revisions twice. They are smart enough to realize that Albany’s inability to govern is not the Constitution’s fault but that of an incompetent governor and corrupt legislators who have driven the state to the edge of the fiscal abyss. The current Constitution may not be perfect but New Yorkers know the alternatives could have devastating impacts on their fiscal, economic and social well-being.

The Kessel Barometer: Bad News for Governor Paterson
The Paterson Barometer: Bad News for Richie

Wildlife biologists know that before the tsunami strikes, birds and small mammals, like squirrels, jackals and weasels, head for high ground to avoid the wrath of the storm.

Yesterday, at Hofstra University in Nassau County, the Kessel Barometer, which tracks the behavior of a rare species—Kesselus hackus—declared David Paterson politically dead. You see, Paterson picked Kessel out of the dustbin of State political history after Kessel was summarily fired by then Governor Spitzer early in 2007 and our Accidental Governor installed him as CEO of the New York Power Authority. In ordinary times, Kessel is loyal—as long as it serves his interests and those of his political masters.

Well, Kessel’s loyalty has expired and yesterday, only a few miles from his South Shore home, Kessel didn’t show at the Governor’s election campaign announcement. Given Paterson’s weak poll numbers, desultory performance as Chief Executive and the devastating New York Times page 1 story on Friday, the flight of elected officials from the Paterson train wreck is unsurprising. But unlike these pols who have independent careers and who don’t owe their livelihoods to Paterson, Kessel’s revival is due solely to Paterson’s decision to accede to Al D’Amato’s intercessions. Hence, Richie’s failure to stand with Paterson is a shocking act of political cowardice.

Like the birds headed away from the shore as 80 foot waves approach, Kessel’s betrayal of his most recent patron is the surest sign of Paterson’s political demise.

Political watchdogs should expect to witness Kessel’s unseemly attempts to curry favor with the presumptive Governor. Long time observers of Kessel’s career will remember Governor Mario Cuomo’s statement in 1995;  “I lost contact with Richie Kessel, who somehow was able to swim the political rapids from the Democratic side to the Republican side.”

The clock is ticking on Richie Kessel.

THE KESSEL COUNTDOWN: 314 DAYS UNTIL RICHIE KESSEL IS FIRED BY THE NEW GOVERNOR OF NEW YORK.

This commentary I wrote, Marlin:  Nassau GOP intent on repeating its past sins, appears on the Long Island Business News web site.

The following appears in the January 29-February 4, 2010 issue of the Long Island Business News:

When Gov. David Paterson completed his Jan. 6 State of the State address, reporters proceeded to do what they always do, run around the Assembly chamber asking political heavies their reaction to the speech.

This year the most obvious person to ask was Attorney General Andrew Cuomo. The A.G. gave an even-handed response. He acknowledged that the governor articulated the state’s problems, and then said, “The key now, however, is to get it done. To solve these problems in these times will require sustained effort, seriousness of purpose and the ability to build a coalition for change.”

The next morning, on a talk radio show, the governor gave this reaction to Cuomo’s call for action: “One of the problems, I think in government and State of the State addresses is there’s a scorecard. We measure the person by how much they pass as opposed to how much is right.” In other words, the governor wants to be judged not by what he does but what he says.

What a bizarre comment. Apparently the governor has forgotten the maxim we were taught in grammar school, “Actions speak louder than words.”

Philosophers throughout history have called on people to act on their principles. Aristotle declared in “Politics,” “Felicity is a state of activity; and it is the actions of just and temperate men which are the fulfillment of a great part of goodness.”

Franklin Delano Roosevelt, at the 1932 Democratic convention, not only described New Deal principles to tackle the Great Depression, in a booming voice told his listeners that the situation “calls for action and action now.” And F.D.R. acted.

Winston Churchill reminded the British people during the Blitz that “there is great hope provided action is taken worthy of the opportunity.”

These men knew that delivering speeches was not enough to meet the challenges of their day. Roosevelt and Churchill knew history would judge them by the consequences of their actions.

There may, however, be some method to the governor’s maddening doctrine. He may want to be judged merely by his rhetoric or intentions because his pubic achievements have been few in number.

Throughout his 20 years in the state Senate, Paterson spent most of his time talking in Albany bistros, saloons, discothèques and New Jersey steakhouses. In the Senate chamber, he was not a mover and shaker, and routinely voted for increased spending and taxes.

Since assuming the office of governor, Paterson has given plenty of speeches, told lots of jokes and issued countless press releases. However, following through on his public policy pronouncements has not been his strong suit. Here are a few examples:

• In January 2009, he pledged to cut state spending, downsize the bloated government labor force and not to increase taxes. Four months later he approved a budget that increased spending 10 percent (five times the inflation rate), raised the state income tax and included no layoffs.

• Every time he called the Legislature into special session to address the state’s growing budget deficit, he failed to enact his proposed cuts. Nothing happened. The bored legislators dismissed the governor’s threats and went home.

• For the 2010-2011 state budget year, Paterson has claimed he has courageously and prudently addressed the $7.3 billion revenue shortfall by slashing spending. In fact, the proposed budget increases spending by $2 billion and utilizes a score of imprudent fiscal gimmicks, including one-shot revenue, tax and fee increases.

David Paterson is no profile in courage. He does not possess the grit necessary to be a man of action like FDR or Churchill.

The only time I will celebrate the “judge what I say” Paterson doctrine is when he says these words: “I will not seek a full term as governor of New York.” For our beleaguered state that day can’t come soon enough.

“Kessel declined to comment.”

Newsday, January 24, 2010

Newsday’s Mark Harrington did a large public service for Long Islanders and for NYPA Board members, upstate elected officials and beleaguered NYPA customers by reporting that LIPA ratepayers paid over $100 million (yes, $100 million) to delay the opening of a new power plant in Suffolk County hyped by then LIPA Chairman and CEO Richie Kessel.

First, as Long Islanders know and upstaters have come to know, Richie Kessel never misses an opportunity to bloviate in the newspapers, on TV or radio or at the nearest diner.  So, his remarkable “declined to comment” is noteworthy.  Note that Kessel wasn’t unavailable as he is always available to Newsday and every other Island media outlet. Further note that Kessel didn’t deny that his screw-up in this one case cost Long Islanders $100 million.  On this latest hundred million dollar snafu, he took a pass at the opportunity to be quoted.

Here are the facts as reported by Harrington:  Kessel often fear mongered as LIPA head in order to support new projects and breathlessly orated in ominous tones that “the lights would go out unless this cable were built or this plant were not on line.”  It turns out those claims were spurious.

In this latest case exposed to public scrutiny, Kessel shilled for a new efficient plant in Yaphank which ultimately opened in August 2009 but LIPA had by then accumulated so much excess available power under Kessel that the plant owners were paid $100 million by ratepayers to delay the opening of the new plant for a year.  Obviously, Kessel’s fear mongering was wrong and may have been deceitful.  Finally, Richie hid the $100 million obligation from ratepayers and it was turned up only by old-fashioned journalism by Newsday’s Harrington.

Viewed in its best light, Kessel’s LIPA had so screwed up the long-term planning for electric demand on Long Island that the ratepayers will be paying long into the future.  Newsday quoted one energy expert as saying that “We never got to the point of the lights going out.  And it resulted in poor financial decisions and expensive contracts.”  To his credit, current LIPA CEO Kevin Law has instituted reforms to prevent this type of utility malpractice from recurring.

Here’s why this should matter to NYPA constituents.  Combined with the Jones Beach wind power fiasco, LIPA procurement scandals, and now this $100 million debacle and the resulting sky exorbitant electric rates, Kessel has done great damage to the Long Island economy.  Upstate businesses and elected officials should ask why upstate will fare any better with Kessel at the helm.  Alarmingly, one common element of the Kessel approach to electric policy making and management is a fractious relationship with the truth.  Upstate electricity buyers be warned.

THE KESSEL COUNTDOWN: 342 DAYS UNTIL RICHIE KESSEL IS FIRED BY THE NEW GOVERNOR OF NEW YORK.