Thank you!
Your support is sustaining the future of local news in our communities.

State budget shortfalls — not the worker’s problem

There is an old saying: If you borrow a couple of hundred thousand, it is your problem; if you borrow a couple of million, it is the loaner’s problem. I called the New York State Dormitory Authority (NYDA) and the Office of Mental Health (NYOMH) and asked them a simple question: How much of their budget goes to paying the bonds raised to build the various NYOMH buildings across the state? The responses I got ranged from “we don’t have that information” to “why are you asking” all the way to “that is confidential information available through the governor’s office only.”Here is why I was asking: The Dormitory Authority had held the title to the 850-acre Harlem Valley Psyche Center (HVP) because of outstanding bonds, all $16 million of them, which had been used to finance capital projects at the psychiatric center. The NYDA sold it all for $3.95 million to Dover Knolls Development Company. So, what did they do with the original $16 million construction and refurbishment bonds? Did they pay them off? Nope. Did they defease them? Nope. They simply moved them from an NYDA line item in the state budget to “another line item” somewhere. Taxpayers are still paying off those bonds. When we were first looking at changing the HVP in the early 1990s to private use, the problem was the bonds, big fat bonds, Michael Milken and Ivan Boesky bonds paying “investors” (bond holders) 22 percent and 24 percent a year. Yes, you read that right, almost a quarter of the original investment paid, every year, to Wall Street bondholders.Now, let’s not make a big deal out of one psych center. Never mind that there are 29 such centers in New York state alone. Let’s ask where the other New York state junk bonds are while taxpayers lay out horrendous interest. Airports, tunnels, bridges, highways, power grids, schools — all sorts of bond issues were arranged by Milken and Boesky for mega-interest payments. Across the nation it was happening everywhere. I have no doubt Wisconsin has these same higher-than-normal bonds in its budget. Barron’s magazine estimates that revenue bonds comprise 65 percent of all state debt, up from 40 percent in 1975.I doubt any journalist has ever done due diligence in rooting them out. Why is this a difficult task? Because the politicians want to get re-elected and it is hard to tell the taxpayers to tighten their belts, pay more tax, when your cronies and previous politicians have so poorly run New York state’s finances that taxpayers cough up, at least, $2.5 billion a year in sky-high interest. If the interest rate was closer to commercial rates, the bonds for New York state could only cost $320 million. And what is the state’s deficit projection? $4-plus billion? Seems to me that is reason enough for someone to look into regaining some $2 billion a year.When Argentina was bankrupt and could not pay its international loans, the government there defeased them overnight. In short, they cancelled them, passed a law shredding the contracts, and said, “You money lenders have made enough profit on our backs.” What happened? Outrage in Washington and Europe. Action? War? Sanctions? None. New loans were made in weeks at 1 percent and 2 percent interest. Argentina balanced its national budget within three years and that country is now booming. And they are still playing hardball with outstanding loans at 8 percent, wanting 2 percent! Why not? The country of Argentina is not leaving anytime soon. Simply put, they cannot default, so why pay higher-than-usual rates?I have a suggestion to states’ governors: Stop siding with the fat cats in Wall Street, stop being “honorable” while your predecessors sold the farm from beneath you. Stop blaming the civil servants you hired, the ones you have an honorable contract with, the ones who have paid into pension funds you have raided for decades. Try doing the really honorable thing: Defease the bonds, to hell with bondholders who have profiteered for decades, balance the states’ budgets and bring the economy back. Peter Riva, formerly of Amenia Union, lives in New Mexico.

Latest News

Sharon Audubon Birdfest

Sharon Audubon Center naturalist and volunteer coordinator Bethany Sheffer shows off Mandala, a red-tailed hawk who lost an eye after being hit by a car more than a decade ago.

Alec Linden

SHARON – Drizzle and chill couldn’t quell bird enthusiasts Saturday, May 9, for the Sharon Audubon Center’s Birdfest, an all-out avian fete in celebration of World Migratory Bird Day.

The internationally recognized effort is meant to bring awareness to the safety and wellbeing of the billions of migratory birds that return to their summer breeding grounds each spring.

Keep ReadingShow less
Sharon voters reject controversial school budget, 114-99

The May 8 town meeting and budget vote were moved from Sharon Town Hall to Sharon Center School to accommodate what officials said was the largest turnout for a Sharon budget meeting in recent years.

Alec Linden

SHARON – More than 200 residents packed the Sharon Center School gymnasium Friday, May 8, where voters narrowly rejected the Sharon Board of Education's proposed 2026-2027 spending plan by a vote of 114-99, sending the budget back to the Board of Finance after weeks of heated debate over school funding.

The rejected proposal – the ninth version of the budget since deliberations began months ago – carried a bottom line of $4,165,513 for the elementary school, unchanged from last year. The flat budget came after the BOF ordered the BOE in early April to remove nearly $70,000 from its spending plan.

Keep ReadingShow less

Liane McGhee

Liane McGhee
Liane McGhee
Liane McGhee

Liane McGhee, a woman defined by her strength of will, generosity, and unwavering devotion to her family, passed away leaving a legacy of love and cherished memories.

Born Liane Victoria Conklin on May 27, 1957, in Sharon, CT, she grew up on Fish Street in Millerton, a place that remained close to her heart throughout her life. A proud graduate of the Webutuck High School Class of 1975, Liane soon began the most significant chapter of her life when she married Bill McGhee on August 7, 1976. Together, they built a life centered on family and shared values.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

‘Women Laughing’ celebrates New Yorker cartoonists

Ten New Yorker cartoonists gather around a table in a scene from “Women Laughing.”

Eric Korenman

There is something deceptively simple about a New Yorker cartoon. A few lines, a handful of words — usually fewer than a dozen — and suddenly an entire worldview has been distilled into a single panel.

There is also something delightfully subversive about watching a room full of women sit around a table drawing them. Not necessarily because it seems unusual now — thankfully — but because “Women Laughing,” screening May 9 at The Moviehouse in Millerton, reminds us that for much of The New Yorker’s history, such a gathering would have been nearly impossible to imagine.

Keep ReadingShow less

By any other name: becoming Lena Hall

By any other name: becoming Lena Hall

In “Your Friends and Neighbors,” Lena Hall’s character is also a musician.

Courtesy Apple TV
At a certain point you stop asking who people want you to be and start figuring out who you already are.
Lena Hall

There is a moment in conversation with actress and musician Lena Hall when the question of identity lands with unusual force.

“Well,” she said, pausing to consider it, “who am I really?”

Keep ReadingShow less
Remembering Todd Snider at The Colonial Theatre

“A Love Letter to Handsome John” screens at The Colonial Theatre on May 8.

Provided

Fans of the late singer-songwriter Todd Snider will have a rare opportunity to gather in celebration of his life and music when “A Love Letter to Handsome John,” a documentary by Otis Gibbs, screens for one night only at The Colonial Theatre in North Canaan on Friday, May 8.

Presented by Wilder House Berkshires and The Colonial Theatre, the 54-minute film began as a tribute to Snider’s friend and mentor, folk legend John Prine. Instead, following Snider’s death last November at age 59, it became something more intimate: a portrait of the alt-country pioneer during the final year of his life.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.