Perdido 03

Perdido 03

Monday, September 21, 2015

Quinnipiac Poll: Two Thirds Say Teacher Tenure, Pay Should NOT Be Based On Test Scores

Politico NY on the Quinnipiac Poll released this morning:

Voters also sided with unions on teacher pay and tenure, with 69 percent saying pay should not be based on how well the students perform on state tests and 26 percent saying it should.

Similarly, 67 percent say teacher tenure should not be based on test scores, with only 28 percent believing it should. This goes against the new teacher evaluation system pushed by Cuomo, which bases half of teachers’ scores on students’ performance on the exams.

...

The majority of voters - 65 percent - said state tests are not an accurate way to measure how well students are learning, compared to 31 percent who said they are.

69% opposed to merit pay based upon test scores, 67% opposed to tenure based upon test scores, 65% say standardized tests are no the best measurement of student learning.

The question wasn't asked, but you'd have to htink based upon these numbers that voters would not support Cuomo's APPR teacher evaluation system that bases 50% of a teacher's rating upon test scores.

And yet, here we have the system based upon just that and the teachers unions in the state helping Cuomo tweak it with an appeal process instead of just working to get the thing shelved outright.

The poll numbers against testing are about two to one against using them for merit pay, tenure or measurement of student learning.

Isn't it time NYSUT and the UFT ran ads touting these numbers and calling for the end of APPR as we know it and instead of helping Cuomo try and save it with some minor tweaks?

Quinnipiac Poll: Voters Back Teachers Unions Over Cuomo, 54%-31%

Capitol Confidential reports on a Quinnipiac Poll out this morning that finds 65% of New Yorkers do not believe standardized tests are the best way to measure student learning.

The poll finds a split for opt out (48%-47%), with huge regional disparities - opt out has more support upstate and in the suburbs than in New York City.

And the poll finds voters back teachers over Cuomo generally on specific issues like tenure and merit pay as well:

Though what voters think of opt-outs is a mixed bag, they’re put more faith in the teachers unions, which pushed the opt-out movement, to improve education than they put in the governor (54-31). Voters also strongly rebuke the idea of teacher pay and tenure being based on how well students perform on standardized tests.

If you're an education deformer pushing an education deform agenda, the poll numbers are moving against you on a host of issues, from tenure to teacher pay to standardized testing to Common Core.

Even the opt out findings are a victory for the Opt Out movement.

Can you imagine 48% saying it was okay to opt children out of standardized tests just a couple of years ago?

StudentsFirstNY Attempts to Mobilize Parents In 100 "Failing" NYC Schools

Lisa Colangelo in the Daily News:

A group of education advocates spent the first days of classes trying to mobilize parents at the city's 100 worst-performing schools, saying Mayor de Blasio's recently unveiled agenda is not enough.

Community organizers from StudentsFirstNY said they mapped out and then visited each of 100 sites where few or no students passed vital statewide tests.

"The students in these schools deserve action now and frankly, the mayor's recently announced programs are just not enough," said Tenicka Boyd, director of organizing for StudentsFirstNY. "They do nothing to improve the quality of teachers in the classrooms and nothing to give families access to better school choices."

You see, the plan doesn't fire teachers and close schools, so it's no good.

This is why StudentsFirstNY will no doubt be one of the backers of Governor Cuomo's efforts to knock de Blasio off in a primary and elect a pro-charter, anti-union alternative. 

Some of the names bandied about as potential opponents include Hakeem Jeffries and Scott Stringer.

There will be a concerted effort in 2017 to put somebody into City Hall who brings back the First Teachers/Close Schools program Bloomberg pursued.

Cuomo Donor Alleged To Have Skimmed Hundreds Of Millions From Buffalo Schools

Investigative Post:

Jim Heaney of Investigative Post, whose reporting foreshadowed the ongoing federal probe of developer contracts awarded under the Buffalo Billion program, took to the airwaves over the weekend of offer his take on U.S. Attorney Preet Bharara’s investigation.

Heaney told Maryalice Demler of WGRZ Friday evening that the probe will almost certainly focus on Alain Kaloyeros, the Albany nanotech guru who is quarterbacking the Buffalo Billion program.

Sunday, in an interview with Dave Debo of WBEN News Radio, 930 AM, Heaney covered a range of related issues, including the investigation, the state’s pay to play culture and the significance of Bharara’s interest in allegations that LPCiminelli may have overcharged the Buffalo school system hundreds of millions of dollars to manage the reconstruction of scores of school buildings.

Ken Lovett reports that behind the scenes, many think Kaloyeros will end up the target of a criminal investigation:

The Daily News first reported Friday that Kaloyeros’ SUNY Polytechnic Institute had been issued subpoenas as part of US Attorney Preet Bharara’s probe into Gov. Cuomo’s “Buffalo Billion” economic development initiative.

“To our knowledge, Alain Kaloyeros is not the target of any government inquiry and we have no reason to believe otherwise,” a SUNY spokesman said.
Others aren’t so sure that won’t change.

“He may not be the target right now, but I would think that Preet, now that’s he looking, would be more than happy to open up the books at SUNY Poly and see if he can find anything,” a one-time aide to a former governor said.

Kaloyeros for nearly three decades has built up the state’s growing tech industry through deals that brought in tens of billions of dollars in public and private investments.

During that time he has worked with five different governors and key legislative leaders, several who found themselves the subject of criminal charges. Kaloyeros has strong ties with Cuomo, who on Friday said he continues to have full faith in him. Kaloyeros has not been charged with any crime.

With a total compensation package of $811,000, Kaloyeros is one of the state’s highest-paid employees.

In addition, another developer in the Buffalo Billion project, McGuire, is said to be a focus of Bharara's investigation.

Unlike LP Ciminelli, McGuire hadn't been a big contributor to Cuomo - until they got the Buffalo Billion contract:

The third major development contract awarded for Buffalo Billion work involves renovations to a downtown office tower to accommodate IBM and 500 jobs that would create a technology hub. 

McGuire Development got that work, which includes building renovations and equipment purchases totaling $55 million in state assistance. Work is scheduled to start this summer or fall. IBM expects to phase in jobs over the next five years and attract other technology firms.

Unlike LPCiminelli, McGuire wasn't a big-time Cuomo contributor at the time the company was awarded the contract, having donated only $2,000 to the governor's campaign four years ago. But last May, three months after being awarded the Buffalo Billion work, McGuire wrote the Cuomo campaign a check for $25,000.

Jim Heaney told WBEN that SUNY and Cuomo administration officials have worked very hard to stymie reporting about the Buffalo Billion project.

Given the kinds of details you see here - a contractor/Cuomo donor who may have skimmed hundreds of millions from a Buffalo school renovation project given a rigged contract for the Buffalo Billion project worth $750 million, another contractor become a Cuomo donor after a project contract is given to them - you can see why they might want to keep things under the radar.

We'll see how this goes.

The story continues to have legs or perhaps I should say tentacles - and many of them link back to the Cuomo administration and Cuomo himself.

UFT, NYSUT Leaders Meet With Cuomo Aide And State Educrats To Help Save APPR From A Well-Deserved Demise

Ken Lovett in the Daily News:

Cuomo’s recent efforts to improve relations with the Democratic party’s left wing seemingly includes the powerful teacher unions with which he’s been warring.

Top Cuomo aide James Malatras recently met in Albany with city teachers union President Michael Mulgrew, officials from the state teachers union, and new state Education Commissioner MaryEllen Elia to discuss enacting an appeals process for a tough teacher evaluation system Cuomo pushed through earlier this year, sources said.

Two weeks after the meeting, the state Board of Regents enacted a new appeals process — a move Cuomo publicly supported.

“I think he wants to get this behind him without looking like he caved too much,” said one source familiar with the meeting.

Instead of looking to put a shiv into the whole system and kill it off, the UFT and NYSUT leadership look to assuage rank and file by joining the state educrats and Cuomo administration officials in crafting an appeals process to a fatally flawed teacher evaluation system that sees VAM scores jump from 14 out of 20 to 1 out of 20 to 11 out of 20.

Isn't that swell?

Because why look to have APPR sent to the scrap heap and replaced with a sane system when you can try and help save it with minor tweaks instead?

Cuomo Said To Be Personally Recruiting Primary Opponent Against Bill De Blasio

No surprise here - I thought this might be happening:

Gov. Cuomo, who, according to a recent poll, is winning his bitter feud with Mayor de Blasio, is upping the ante by becoming personally involved in recruiting potential candidates to oust the mayor — and he apparently doesn’t mind people knowing it, The Post has learned.

Cuomo has assigned state Democratic Committee Executive Director Basil Smikle Jr., a Harlem resident with strong ties to African-American politicians, to help lead the effort.

Smikle has already held preliminary talks with several possible challengers, including Rep. Hakeem Jeffries of Brooklyn and city Comptroller Scott Stringer, an influential Democratic insider who knows Cuomo and de Blasio told The Post.

“It’s my view based on what I see going on that not only does Cuomo want de Blasio to lose in 2017, he wants people to know that he’ll be having something to do with it,’’ the insider, who demanded anonymity, told The Post.

“There are all sorts of people out there preparing to run against de Blasio, but the governor is trying to make sure that you don’t wind up with five of them, splitting the [anti-de Blasio] vote.

“That’s why he has Smikle out there talking to people, trying to find the right candidate. It’s ongoing,’’ the activist continued.

You can bet whomever Cuomo "recruits" will be a pro-charter, anti-teacher candidate.

Jeffries already fits that description.

As for Stringer, well, he's flexible, you know?

Given the troubles Cuomo's got right now with the Buffalo Billion/SUNY corruption case, Cuomo's scheme may not get the kind of attention he wants it to get.

But make no mistake, Cuomo wants de Blasio destroyed and will lead the effort to do so.

Says a lot about Cuomo that this is the kind of thing he puts effort into, doesn't it?

Sunday, September 20, 2015

Cuomo Acknowledges Communicating With Donor/Contractor At Center Of Corruption Probe

Azi Paybarah at Capital NY:

Governor Andrew Cuomo said he played no role in a campaign contributor winning a mutli-million-dollar construction bid in Buffalo that is now reportedly the subject of a probe by Southern District U.S. attorney Preet Bharara.

As part of the reported investigation, Bharara's office served subpoenas on the State University of New York Polytechnic Institute, whose president is heavily involved in Cuomo's economic development programs upstate.

“SUNY has administered the grant process, so literally all I know is what I read in the newspaper, but I’m very proud of what we’re doing in Buffalo,” Cuomo told reporters in Harlem at an unrelated event.

...

The probe into Buffalo reportedly focuses on how Lou Ciminelli, who donated more than $96,000 to Cuomo’s re-election campaign, won a narrowly tailored bid to construct a solar panel factory in Buffalo worth around $750 million.

Asked if he was confident the contract was not influenced by the donations, Cuomo replied, “SUNY has administered billions of dollars' worth of programs and they’ve done it all well.”

The governor did acknowledge having communicated with Ciminelli, but said the contract was left in the hands of SUNY officials.

“I have probably spoken with him but I have nothing to do with the selection whatsoever. That was handled by SUNY,” Cuomo said.

You can see more on that donor, Louis P. Ciminelli, and his connections to Andrew Cuomo and various levels of government here.

You can see a little more on other Cuomo donors who may be the focus of Bharara's corruption probe here.

Let me remind readers of the pattern we have seen with Preet Bharara investigations.

First comes the leak and/or leaks about high-powered figures like Sheldon Silver or Dean Skelos.

Then come either the denials or obfuscations from the high-powered figures who are the focus of the leaks.

Then come some more leaks that indicate criminal charges are coming soon.

Then the arrests and criminal charges/indictments.

Finally, there are usually a couple more charges thrown on after the fact for good measure.

As memory serves me, this is how events played out in both the Silver and Skelos cases.

Hard to say if that's how things play out here, but the more we learn about the probe and the number of Cuomo donors involved coupled with Cuomo's denials that he had nothing to do with any of this and besides, it's just politics - well, it is starting to look like this story fits the pattern.

Whether it reaches as high as Cuomo himself, that's another matter.

But I can't remember a time where Bharara leaked info in a case like this that didn't end up with criminal charges in the end.

And now that we have Cuomo acknowledging personally communicating with one of the donors - that does makes things a little more interesting.

The Cuomo Donors At The Center Of The Buffalo Billion Corruption Investigation

Gothamist with a good round-up of the Cuomo Buffalo Billion corruption story:

U.S. Attorney Preet Bharara is probing the process by which three developers who are Gov. Cuomo donors came to get the bulk of a billion dollars in state contracts to develop major projects in Buffalo. Federal prosecutors have subpoenaed the State University of New York Polytechnic Institute, the president of which, Alain Kaloyeros, oversees the Buffalo Billion program. The program is supposed to generate thousands of upstate jobs through the tech, clean-energy, and pharmaceutical facilities the Cuomo cronies were tapped to build with $855 million in taxpayer money.

Pressed earlier this summer by a reporter for Buffalo's Investigative Post who was seeking details of the bidding process and faced illegal stonewalling across multiple state agencies and state-run nonprofits, Kaloyeros said, "We are not political operatives nor do we respond to perceived threats and terrorism." That "terrorism" apparently consisted of repeated phone calls, emails, and Freedom of Information Law requests.

Still, little is known about the selection process. What is clear, according to the Investigative Post, is that developer McGuire Development scored the $55 million contract to renovate skyscrapers in Buffalo to accommodate IBM, then three months later, donated $25,000 to Cuomo's campaign. The firm LP Ciminelli scored a heftier $750 million contract to build a solar-panel factory. Its president, Louis Ciminelli, is one of Cuomo's biggest donors in the region, having contributed $96,500 to the governor's two campaigns. Until competitors balked, the request for bids was written with the requirement that bidders have 50 years experience working in Buffalo, which only LP Ciminelli did. That company and Ciminelli Real Estate, run by Louis Ciminelli's brother, won the $50 million contract to build drug research space at a Buffalo medical campus. Paul Ciminelli's $10,500 to Cuomo and $5,000 to Lt. Gov. Kathy Hochul cannot have hurt.

Cuomo said today that he had nothing to do with the awarding of any contracts:



And at least on the face of things, that's true:

SUNY Polytechnic Institute is headed by Alain Kaloyeros, who has led New York's high-tech effort under three governors. A call to Kaloyeros wasn't returned Friday.

In 2014, Cuomo's office had announced the key firms in the Buffalo Billion project were selected by the SUNY College of Nanoscale Science and Engineering and the Fort Schuyler Management Corp.
Kaloyeros headed the college, which is now SUNY Polytechnic Institute.

Fort Schuyler is nonprofit organization affiliated with SUNY and SUNY Polytechnic "that facilitates research and economic development opportunities in support of New York's emerging nanotechnology and semiconductor clusters," according to its website.
Of course, given Cuomo's famous "hands-on" management style, it's difficult to believe that there wasn't at least a little pressure exerted behind the scenes steering the choices.

With Cuomo throwing SUNY under the bus today with his statements, the message has been sent to anybody at SUNY Polytechnic or Fort Schuyler that Cuomo is going to scapegoat SUNY here.

So if there was any pressure put upon anybody behind the scenes and/or any other kind of shenanigans Cuomo and his minions are famous for (see the Moreland Commission for a prime example of those), there's going to be an incentive for those pressured to dish dirt to the feds.

Between the Cuomo donors who appear to be recipients of subpoenas from the feds investigating the bidding process (see here for a partial illustration of the tentacles between the Ciminellis, Cuomo and some of the other players) and the SUNY Poly and Fort Schuyler functionaries who handed the contracts out to them, there's a whole lot of danger here that somebody with something very, very damaging to Andrew Cuomo is going to get squeezed.

Cuomo Throws SUNY To The Wolves When Asked About Buffalo Billion Corruption Probe

On Friday, Governor Andrew Cuomo said he was "totally" confident in the head of SUNY Polytechnic Institute, Alain Kaloyeros and downplayed the stories about subpoenas going out to SUNY and contractors connected to Cuomo's Buffalo Billion project.

Today he was still downplaying things, but that confidence he seemed to have in Kaloyeros on Friday was replaced by finger pointing at SUNY:





Gee, that didn't take long, did it?

In 48 hours, we go from Cuomo's total confidence in SUNY and Alain Kaloyeros to Cuomo pointing the finger at SUNY and saying "Hey, this has got nothing to do with me!"

Not much honor among thieves, is there?

Scott Walker Drops To Less Than 1% In Latest CNN/ORC National Presidential Poll

Looks like that plan to destroy unions Scott Walker released recently isn't leading to the resurgence in polling he was looking for - a new national CNN/ORC poll found him getting less than one-half of one percent support.

Less than one-half of one percent.

Couldn't happen to a more deserving guy.

Cuomo Donor In Buffalo Billion/Schools Construction Corruption Case Is A Very Charitable Guy

How interesting this story comes concurrent to the one about subpoenas in a federal probe into Cuomo's Buffalo Billion project:

It’s music to the ears – a beautiful symphony of synchronicity. The chairman of the Buffalo Philharmonic Orchestra’s board of directors has made a gift of $1 million to the institution he loves.

It was a sort of reverse birthday present: On his 60th birthday, Louis P. Ciminelli opened his wallet and pulled out a million of his own dollars as a gift to the orchestra. It was an extraordinarily generous donation that will push the orchestra closer to its fundraising goal of $30 million.
With his gift, Ciminelli is helping to ensure that the orchestra can remain financially secure for decades to come.

The gift was announced last week at the orchestra’s season-opening gala concert. With it, Ciminelli and the BPO launched a fundraising effort called the Crescendo Campaign with its $30 million goal.
The campaign’s aim is to secure the orchestra’s financial future (in part by reaching out to the youth of Western New York), to fund operational needs and to secure new commitments. Encouragingly, a silent phase of the campaign has already brought in $17 million. Another big gift is pending; the Tower Family Fund has promised to give $1 million if the orchestra secures another $1 million in donations.

This community seems to overflow with generous people who support its critical social and economic infrastructure. With his gift, Ciminelli has shown again that he is among those citizens who go far beyond the extra mile in their devotion to Buffalo.


What a nice story - it comes in the Buffalo News two days after this one:

Federal prosecutor Preet Bharara’s investigation into the Buffalo Billion is part of a larger probe into other development projects, including the Buffalo Schools Construction Project, sources close to the investigation said Friday
The first hint of an investigation by the Manhattan U.S. Attorney came in the form of subpoenas demanding information on several large-scale state initiatives, many of them with close ties to Gov. Andrew M. Cuomo and the SUNY Polytechnic Institute in Albany.
Sources said the subpoenas went out across the state and seek documents and records regarding the bidding process on those projects, as well as any communication between state officials and private contractors.
...

The Post, in its story, said Bharara’s office is looking at multimillion-dollar state contracts that led to the construction of high-tech, drug-development and clean-energy businesses.

“It’s a comprehensive look at the bidding process,” a source told the Post. “They’re looking at communications between contractors and state officials.”

Sources familiar with the investigation told The Buffalo News that the subpoenas also demand records and documents connected to the Buffalo Schools Construction Project, an 11-year, $1.3 billion program to renovate 48 city schools.

Even though the renovations are complete, Buffalo school board members Carl Paladino and Larry Quinn have criticized the fixed-price contract used on the project and suggested tens of millions of dollars in taxpayer money remain unaccounted for.

LP Ciminelli, the chief contractor on the schools project, called the criticism part of a personal vendetta directed at Louis P. Ciminelli, the company’s chairman and CEO.

Ciminelli, a major contributor to Cuomo’s political campaigns, is also the general contractor on SolarCity, a $900 million solar panel factory being built at South Buffalo’s RiverBend complex. The plant is the centerpiece of Cuomo’s Buffalo Billion.

Daniel C. Oliverio, a well-known white-collar defense attorney, confirmed he’s representing Ciminelli but declined to comment on Bharara’s investigation.

Yes, Buffalo is a community that seems to overflow with generous people.

Ciminelli in particular is very generous.

He's also given money to education causes like scholarships and education institutions.

Of course it's easy to be so generous when you're on the other end of a $1.3 billion dollar school construction renovation project that's reported to be missing tens of millions of dollars in funds and a rigged bidding process for a $900 million factory that is the centerpiece of Governor Cuomo's Western New York economic redevelopment plan.

And of course some of the generosity of the community returns to you when you're so generous to politicians like Governor Cuomo with campaign donations and campaign propaganda in the form of opinion pieces touting the governor's economic agenda for Buffalo in the newspaper.

You have to be "generous" to enjoy generosity in return.

This chart at Little Sis shows how this all works.

Here's part of what Ciminelli wrote in his propaganda piece for Governor Cuomo in June 2014:

It’s time for us to shed the self-doubt and allow ourselves to dream and to appreciate living in the moment that saw this community head down the right path. We are at the beginning of something great and it’s time we embrace it – and thank Gov. Andrew M. Cuomo for making it happen.
Unlike previous leaders who would blow into town to announce some pie-in-the-sky initiative, usually around election time, and then leave to never be seen again (at least not until the next election) Cuomo laid out a vision and then actually followed through.

The Buffalo Billion initiative was met with skepticism in some corners. But then the governor came back to town … again and again and again. He remained committed to creating a new, sustainable economy in Buffalo. And now it’s happening.

Buffalo is now on the cusp of becoming a national leader in several emerging market sectors. From the Medical Innovation and Commercialization Hub at the Buffalo Niagara Medical Campus, to the IT Innovation and Commercialization Hub anchored by IBM to the High-Tech Innovation and Commercialization Hub at RiverBend, this is real economic development that many business leaders and economic development professionals long hoped for but seemed to happen only in other places.
I can attest as I travel across the state and nation, people are taking notice of what Cuomo is doing. Maybe that’s why companies not only on the other side of the country but on the other side of the globe now want to be in Buffalo.

Perhaps the easiest way to judge progress is to count the number of cranes. Right now, there are three large tower cranes in Buffalo working day and night on projects. There could be two more by year’s end. To those outside construction, that might not mean much, but trust me, it’s a big deal.

So, fellow Buffalonians, allow yourselves to get a little excited. Things are happening. Cuomo’s Buffalo Billion is delivering and there is more to come.

There's more to come, all right.

With the feds looking into Ciminelli for both the Buffalo Billion project and the Buffalo Schools Construction project, perhaps we'll start to understand just how all the money and contracts got doled out, what was given in return, and, if some of the cash is proven to be missing as is alleged in the Buffalo Schools Contruction Project, just where it went.

And maybe, just maybe, we'll get a better glimpse of the shadiness at the core of Cuomo's Buffalo Billion project.

Saturday, September 19, 2015

Update On The Cuomo Buffalo Billion Corruption Story

Yesterday was quite a day, with leaks coming throughout that US Attorney Preet Bharara was expanding his corruption probe of Albany politics to Governor Cuomo's Buffalo Billion Program and various entities and individuals connected to it.

First the NY Post reported that Bharara had launched an investigation into Cuomo's Buffalo Billion project, looking at the bidding process and the awarding of contracts.

Then the NY Daily News reported that SUNY Polytechnic Institute had been the recipient of subpoenas relating to the Buffalo Billion Project and had hired a criminal defense attorney to deal with the matter.

Last night the Buffalo News reported that the same contractor/Cuomo donor, Louis Ciminelli, who seemed to be the recipient of a rigged contract in the Buffalo Billion project, is also the contractor for the Buffalo Schools Construction Project, a $1.3 billion dollar renovation program that has tens of millions of funds missing.

Documents related to the Buffalo Schools Construction Project have also been subpoenaed by the US attorney's office.

The NY Times reports this morning that Cuomo appoints the majority of SUNY board members and is known for his "hands-on" management style when it comes to governance, especially around large-scale programs like the Buffalo Billion project.

Indeed, even as the leaks kept coming throughout the day about the Bharara probe into Cuomo's Buffalo Billion project, Cuomo was touting it before business leaders at a business conference in Lake George:

Governor Cuomo, in an address before the state’s business leaders,  promoted his economic development plans, including the Buffalo Billion initiative, and fended off questions on reports that some of the projects are under investigation by US Attorney Preet Bharara.

Cuomo, who was well received by business leaders meeting at the Sagamore resort on Lake George, gave a power point presentation focusing on his successes in building up the upstate economy, including the Buffalo Billion project, which has received praise and credit for helping turn around the state’s second largest city.

“Buffalo was the most pessimistic community about their economic future five years ago,” said Cuomo. “Today, Buffalo is the most optimistic, tied with Manhattan.”

Last night, WGRZ led their coverage of the Buffalo Billion investigation story with the headline "Is Governor Cuomo Under Investigation?" and gave a great round-up of the day's events, including analysis from Investigative Post's Jim Heaney, who may have kicked off the whole federal investigation with his reporting on the lack of transparency around the Buffalo Billion project bidding and contract award process.

Heaney says the investigation may center on Governor Cuomo's go-to economic development guy, SUNY Poly CEO Alain Kaloyeros, who has led the development of the nanotech industry in Albany as well as the spread of high-tech initiatives to Buffalo, Utica, Rochester and Syracuse.

Heaney was updating Investigative Post throughout the day as more leaks and reports came in - you can see those updates here.

Yesterday was a pretty extraordinary day in New York State.

What we learned yesterday is that a US attorney from Manhattan is rooting around in business dealings and contracts in Buffalo even as it's unknown whether the US attorney for Western New York - Bill Hochul - has recused himself from the investigation or just been passed over by Bharara's office because Hochul is the husband of Governor Cuomo's Lieutenant Governor, Kathy Hochul.

This appears to be part of a larger investigation into state contracts and business dealings with at least part of the focus on one of the state's highest paid employees, SUNY Polytech CEO Alain Kaloyeros, who also happens to have close ties to Governor Cuomo and former Assembly Speaker Sheldon Silver.

At least one Cuomo donor, Louis Ciminelli, has received subpoenas from the US attorney's office related to the Buffalo Billion project and what appears to be a rigged contract award as well as the Buffalo Schools Construction Project and what is said to be tens of millions of missing funds.

At the center of the Buffalo Billion project is a solar panel company chaired by Elon Musk, the CEO of Tesla Motors - SolarCity.

The state is putting $750 million into the building of a manufacturing plant for SolarCity in Buffalo - but Jim Heaney reports that SolarCity lost $375 million last year and has lost over $300 million in the first half of this year.

Heaney also reports that SolarCity is the target of a federal investigation related to federal stimulus funds.

Something smells wrong about the state investing $750 million in a development project for a company that has lost over $675 million in the last year and a half alone, and yet that's what's happening here.

No wonder Governor Cuomo's administration did everything it could to quash FOIL requests for documents related to the project.

Unlike the reports that Preet Bharara was investigating Governor Cuomo's actions regarding the shutdown of the Moreland Commission, which were a little hazy with detail, the reports around the investigation of the Buffalo Billion are detailed, including who has received subpoenas in the case and who has lawyered up.

The pattern with Bharara and these corruption investigations has been leak, indictment, leak, indictment...

That's what happened in the Shelly Silver case and the Dean Skelos case.

These leaks yesterday - at least three separate ones to three different news organizations if I'm counting correctly - suggest Bharara intends to continue the pattern.

Governor Cuomo downplayed the stories yesterday, saying there's no "there" there in this story.

But he's fooling himself if he really believes that.

At the very least, the feds have one of his donors on the other end of a subpoena and one of the state's highest paid employees, the PolyTech CEO, who is leading Cuomo's development efforts for high tech industries in Buffalo, Rochester, Utica and Syracuse is the focus of, if not the target of, a criminal investigation.

Given the previous pattern with Bharara and leaks, you can be sure criminal charges will come and somebody will make a plea deal here to turn evidence over to the feds.

That's what happened in the Silver case and in the Skelos case - and I would bet that's what happens here too.

Will Cuomo's donor, Louis Ciminelli, get the squeeze and turn on Kaloyeros?

Will Kaloyeros get the squeeze and turn on someone else?

I'm speculating here, but given how Bharara worked in both the Silver case (where he got REBNY bagman Charlie Dorego to cooperate) and the Skelos case (where he got Cuomo donor and former NYRA chair Anthony Bonomo to cooperate along with using evidence from Dorego against Skelos and son), this is not idle speculation.

Cuomo's got serious problems here, whether the criminal investigation reaches him or not.

He has made the Buffalo Billion the centerpiece of his upstate economic agenda, spreading it to Rochester, Utica, and Syracuse, and now it appears that centerpiece is rotten to the core.

That's a political problem for sure.

Whats worse for Cuomo is, if Bharara's rooting around in this mess, what else is he rooting around in?

Just last week, Gotham Gazette reported that Cuomo had his mojo back, that he was strutting his stuff again after dispatching NYC mayor Bill de Blasio in a feud.

De Blasio was an easy opponent for Cuomo to beat - Preet Bharara, on the other hand, does not look like he will be so easy for Cuomo to dispatch.

Friday, September 18, 2015

Buffalo Schools Construction Project Part Of Federal Probe Into Cuomo's Buffalo Billion Project

Now we have a K-12 public education connection to the Buffalo Billion corruption story:


Federal prosecutor Preet Bharara’s investigation into the Buffalo Billion is part of a larger probe into other development projects, including the Buffalo Schools Construction Project, sources close to the investigation said Friday.

The first hint of an investigation by the Manhattan U.S. Attorney came in the form of subpoenas demanding information on several large-scale state initiatives, many of them with close ties to Gov. Andrew M. Cuomo and the SUNY Polytechnic Institute in Albany.

Sources said the subpoenas went out across the state and seek documents and records regarding the bidding process on those projects, as well as any communication between state officials and private contractors.

...


Sources familiar with the investigation told The Buffalo News that the subpoenas also demand records and documents connected to the Buffalo Schools Construction Project, an 11-year, $1.3 billion program to renovate 48 city schools.

Even though the renovations are complete, Buffalo school board members Carl Paladino and Larry Quinn have criticized the fixed-price contract used on the project and suggested tens of millions of dollars in taxpayer money remain unaccounted for.

LP Ciminelli, the chief contractor on the schools project, called the criticism part of a personal vendetta directed at Louis P. Ciminelli, the company’s chairman and CEO.

Ciminelli, a major contributor to Cuomo’s political campaigns, is also the general contractor on SolarCity, a $900 million solar panel factory being built at South Buffalo’s RiverBend complex. The plant is the centerpiece of Cuomo’s Buffalo Billion.

Daniel C. Oliverio, a well-known white-collar defense attorney, confirmed he’s representing Ciminelli but declined to comment on Bharara’s investigation.

The leaks are coming fast and furious today.

First the NY Post story that Bharara had launched an investigation into Cuomo's Buffalo Billion project, looking at the bidding process and the awarding of contracts.

Then came the Daily News story that SUNY had been a recipient of subpoenas related to the probe.

Now we have the Buffalo News reporting that the same contractor/Cuomo donor who seemed to be the recipient of a rigged contract in the Buffalo Billion project is also the contractor for the Buffalo Schools Construction project, a $1.3 billion dollar renovation program that has tens of millions of funds missing.

Cuomo said today that there's no "there" there in this story.

On the contrary - the longer the day went on, the more leaks we got showing just how much "there" there really is.

SUNY Subpoenaed In Cuomo Buffalo Billion Investigation

Cuomo says neither he nor a member of his administration got a subpoena from the feds in the Buffalo Billion corruption investigation reported first by the NY Post this morning.

But SUNY did:

ALBANY - U.S. Attorney Preet Bharara is subpoening a State University of New York research facility as part of a probe into Gov. Cuomo's much-ballyhooed "Buffalo Billion" economic development plan, the Daily News has learned.

SUNY Polytechnic Institute, which is headed by the politically-connected Dr. Alain Kaloyeros, received subpoenas seeking documents and other information in recent months, sources familiar with the probe said.

In addition, the SUNY system has hired a criminal defense lawyer to represent SUNY Polytechnic Institute before Bharara's office, the sources said.

Bharara is looking into the contracts awarded for projects to build high tech businesses in economically-struggling Buffalo to see if any bid-rigging or other shenanigans took place, sources said. -

The Daily News reports Kaloyeros has ties to both Cuomo and former Assembly Speaker Shelly Silver.

Cuomo expressed confidence in Kaloyeros earlier today.

Cuomo downplayed it earlier, saying there was no "there" there, but this story gets more interesting by the hour.

More later.

Cuomo: No One In Cuomo Administration Has Gotten A Subpoena In Buffalo Billion Investigation

From Newsday:

Gov. Andrew M. Cuomo said Friday that neither he nor his employees have received any subpoena regarding the "Buffalo Billion" project that published reports say is being investigated by the U.S. attorney's office, a Cuomo spokesman said. 
Cuomo was asked about the New York Post report while at an annual gathering of the state Business Council, said Cuomo spokesman Rich Azzopardi.

Of course Dean Skelos had the same line when WNBC 4 reported the feds were looking into him:

"Last night’s thinly sourced report by WNBC is irresponsible and does not meet the standards of serious journalism. Senator Skelos has not been contacted by anyone from the U.S. Attorney’s office. As such, we won’t be commenting further."

That was at the end of January.

A few months later, Skelos was indicted by the feds.

So Cuomo's statement that nobody in the administration has been subpoenaed, well, it doesn't mean much in the grand scheme of things.

He's downplaying this, as you would expect - saying there's nothing "there" there.

But that doesn't make it so.

Might not reach all the way to him - but the leak was "leaked" for a reason.

Cuomo's Buffalo Billion Project: Rigged Bidding, Hidden Process

Now that we have a report that US Attorney Preet Bharara is looking into Cuomo's Buffalo Billion boondoggle, it behooves us to go back and look at the expose the Democrat and Chronicle did on it back in June:

The Buffalo Billion program championed by Gov. Andrew Cuomo is a bold and costly experiment in economic development that is beset by secrecy and politics, and banking on a company with a history of losing money.

The program — hailed in Buffalo but resented across much of the rest of New York — has been promoted as both a catalyst for rejuvenating the western New York economy and a model for other upstate regions.

But the management of the Buffalo Billion by the Cuomo administration has raised eyebrows — and concerns — in some quarters.

Consider:

One of Cuomo's largest campaign contributors from the Buffalo area has been awarded contracts to develop two of the three facilities that will house companies recruited to set up shop in Buffalo. The state's original solicitation for a developer to build a massive solar panel manufacturing plant included a requirement that might have limited the pool of respondents to just one firm, LPCiminelli, whose owner has contributed $96,500 to Cuomo's campaign during his two races for governor. The state later relaxed the requirement, but awarded the contract to Louis Ciminelli's firm anyway.

The state development corporation managing the Buffalo Billion has taken up to a year to release public records that, among other things, detail how Ciminelli and other developers were selected. Documents detailing how much developers are getting paid have been redacted to remove payment figures. One of Cuomo's lieutenants went so far as to liken a reporter's efforts to obtain records under the state Freedom of Information Law to terrorism.

The state is making its biggest investment — $750 million — to build a solar panel manufacturing plant for SolarCity despite that company's mounting financial losses and legal problems. SolarCity lost a record $375 million last year and is the subject of a federal investigation considering its receipt of stimulus funds.

I know there are many readers out there skeptical that Preet Bharara is going to go after Andrew Cuomo or that the Obama administration (which would have to sign off on such an effort) would allow it.

I share that skepticism, especially after VP Joe Biden's recent bromance with Cuomo.

That said, the Buffalo Billion project doesn't pass the smell test - they rigged the bidding process for a Cuomo donor, then when called on that rigging, tweaked the process and handed the project over to the donor anyway.

They ignored FOIL request for documents related to the bidding process, then compared a reporter's attempts to get those records as "terrorism". 

Even then, they released redactred records to hide stuff.

One of the companies involved in the project is under a federal investigation already for possible misue of stimulus funds and that same company lost hundreds of millions of dollars last year.

Something stinks here, that's for sure.

Whether the stink reaches as high as Cuomo, well, that remains to be seen.

But between the federal investigation into the Buffalo Billion project and the investigation into Steven Pigeon, the reputed go-to guy for Cuomo in Western New York (see here and here), I bet there's some concern within the administration about where all of this goes.

More On The Reported Investigation Into Cuomo's Buffalo Billions Boondoggle

WGRZ:

NEW YORK, N.Y. - The New York Post reports U.S. Attorney Preet Bharara is investigating the bidding process for multi-million dollar contracts connected to the Buffalo Billion revitalization plan. 
The report, which was published Friday, states that a source familiar with the investigation says Bharara's office has subpoenaed several firms in recent weeks.

Governor Andrew Cuomo announced the 10-year Buffalo Billion program back in 2012.
2 On Your Side's partners at Investigative Post have reported on the lack of transparency when it comes to the Buffalo Billion in the past.

Record requests under the state's Freedom of Information Law were ignored until 2 On Your side and Investigative Post filed a lawsuit.

The documents relate to the selection of LPCiminelli to develop SolarCity's plant at Riverbend in South Buffalo.

On the original request for proposal seeking developers for the job, the specs were written in a way that appeared to favor LPCiminelli. The wording was later revised after competing developers complained.

Two months ago records about the bidding process were finally released. They showed, among other things, that LPCiminelli's proposal was ranked the best among three finalists for the work.

They sure did go to some great lengths to hide how the money got doled out.

More later.

Preet Bharara Expands Corruption Probe To Cuomo's Buffalo Billion Boondoggle

It's been a few months since we got a leak out of the US attorney's office regarding corruption - this one's a doozy:

Manhattan US Attorney Preet Bharara has expanded his anti-corruption crusade to the far western edge of the state — investigating Gov. Cuomo’s controversial Buffalo Billion revitalization project, The Post has learned.

The probe of Cuomo’s pet project is the first to touch his office beyond Bharara’s investigation of the governor’s shutdown of the Moreland Commission to Investigate Public Corruption last year.
The new investigation is focused on the multimillion-dollar contracts awarded to build facilities for high-tech, drug-development and clean-energy businesses, a source familiar with the probe told The Post.

Bharara’s office has slapped several firms with subpoenas in recent months, the source said.

“It’s a comprehensive look at the bidding process,” the source said.

“They’re looking at communications between contractors and state officials.”

Bharara’s probe extends some 250 miles beyond the boundaries of his district, the Southern District of New York, which is headquartered in Manhattan and includes The Bronx and six suburbs north of the city.

First we had leaks about Shelly Silver - Silver got indicted.

Then we had leaks about Dean Skelos - Skelos (and son) got indicted.

Now we have leaks that the feds are investigating state officials over the Buffalo Billions project.

If the pattern continues, well, you know how this ends...

Here are some details:
Cuomo announced the 10-year Buffalo Billion program in his 2012 State of the State speech, saying it would be modeled on the $1 billion-plus program to spur nanotech research and draw semiconductor manufacturers to the Albany region.

One of the plan’s key projects is construction of a $750 million solar-panel factory along the Buffalo River. It will be run by SolarCity, a power provider chaired by Elon Musk, a co-founder of PayPal and CEO of the Tesla Motors electric-car company.

Other elements of Cuomo’s plan include construction of the Buffalo Medical Innovation and Commercialization Hub facility at the Buffalo Niagara Medical Campus, and redevelopment of a downtown Buffalo office tower into a headquarters for IBM and other high-tech firms.

A report this year by the nonprofit Investigative Post blasted Buffalo Billion as a “costly experiment in economic development that is beset by secrecy and politics.” The report said that requests for records under the state Freedom of Information Law were ignored until a lawsuit was filed and that the documents released were stripped of “key information,” including payments to developers.

The report also revealed the developer of two Buffalo Billion buildings is Louis Ciminelli, who contributed $96,500 to Cuomo’s two campaigns for governor.

At one point, the request for proposals to build SolarCity required applicants to have “over 50 years of proven experience” in construction in around Buffalo, which, the report said, excluded any company except Ciminelli’s.

The requirement was changed to 15 years, but his company, LPCiminelli, got the job anyway.
The report also said McGuire Development donated $25,000 to Cuomo’s campaign three months after scoring the technology-hub construction job.

There's been more Buffalo/Cuomo funkiness in the past few months.

Former Erie County Democratic Chair Steve Pigeon, a Cuomo "advisor," was raided in the spring over alleged corruption:

State and federal investigators Thursday searched the homes of three Western New York political operatives – confidants to the New York governor, Buffalo mayor and a member of Congress – sending shock waves across state Democratic and Republican party circles.

The investigation of G. Steven Pigeon, Steven M. Casey and Christopher M. Grant appears focused around an independent political committee called the WNY Progressive Caucus, which has ties to Pigeon. Investigators appear interested in the financial activities of the caucus and its ties to several political campaigns in recent years. The probe also includes questions about “elevated” payments for advertising, mailings and other political activities, a law enforcement official said.

The raids targeted three men who have been integral players in local and statewide politics, and that fact was not lost on party insiders in Buffalo and Albany.

Pigeon has vast political connections, from Gov. Andrew M. Cuomo to billionaire businessman B. Thomas Golisano.

Casey – dubbed the “shadow mayor” – was until last year the first deputy mayor under Buffalo Mayor Byron W. Brown.

Grant is chief of staff for Rep. Chris Collins, R-Clarence.

Here's a good introduction to the Pigeon raids and a comprehensive look into the whole Pigeon mess in Buffalo.

There's also a Pigeon/Moreland connection:
 
In the Erie County Sheriff’s race, the WNYPC candidate Dick Dobson embarrassed Bert Dunn on primary night. Dunn decided to waste his money and run on a tailor-made third party line, unsuccessfully. WNYPC abandoned Dobson, however, during the general election. There was an unaccounted-for $20,000 that was paid to “Buying Time, LLC” for Dick Dobson ads, which was later claimed to have been a payment reportedly made by AJ Wholesalers directly to Buying Time on the WNYPC’s behalf.  

Buying Time is associated with Governor Andrew Cuomo. So associated, in fact, that the New York Times reported that it was sniffing around Buying Time that prompted Cuomo’s office to begin interfering with the work of the shortly-thereafter-disbanded Moreland Commission on Public Corruption.

Kathy Hochul's husband, Bill Hochul, reportedly recused himself from the Pigeon investigation because of his wife's connections to some of those involved in the case:

U.S. Attorney William J. Hochul Jr. has recused himself from an investigation into the political activities of G. Steven Pigeon, sources close to the probe told The Buffalo News on Friday.

Because of the potential political ramifications of the probe – including the fact that Pigeon has served as a top political adviser to his wife’s boss, Gov. Andrew M. Cuomo – Hochul removed himself from the case weeks ago and named his top assistant – James P. Kennedy – to oversee the investigation and coordinate with the state Attorney General’s Office, the sources said.

The U.S. Justice Department requires a prosecutor to recuse himself or herself from a case when “a conflict of interest exists or there is an appearance of a conflict of interest or loss of impartiality.”

The investigation – which became public knowledge Thursday with the execution of three search warrants – is focused on the political activities of Pigeon, former Democratic Party chairman for Erie County; Steven M. Casey, a Democrat and former deputy mayor of Buffalo; and Christopher M. Grant, a Republican who serves as chief of staff for Rep. Chris Collins, R-Clarence.

Before we get too excited about the Post story that state officials are being investigated over the Buffalo Billion project, we should note that the report is coming in, you know, the NY Post.

That said, the NY Post independently verified an account from WNBC in January that Bharara was going after Dean Skelos.

A Skelos spokesperson had decried the WNBC report as thinly sourced.

The Post verified it and the WNBC report turned out to be accurate - Skelos and son got nailed a couple of months later.

So, we'll see how this goes and if the pattern holds.

Up until now, it's been leaks, indictment, leaks, indictment...

Now we have a new leak, this one involving state officials and Cuomo's Buffalo Billion boondoggle.

An interesting development, to say the least.

Thursday, September 17, 2015

Cuomo: 78% Of NYers Are Wrong

Plummeting poll numbers for both de Blasio and Cuomo in the latest Q poll, with Cuomo at his lowest ever for job approval and de Blasio in the toilet with his favorability.

The Quinnipiac poll found New Yorkers think the feud between Cuomo and de Blasio is harmful but Cuomo says "Nahh..."

Gov. Andrew Cuomo said people are wrong to think that his ongoing feud with New York City Mayor Bill de Blasio has had a negative effect on the working relationship between the state and New York City.

Cuomo, a Democrat, was asked by a reporter after an event in Harlem about a Quinnipiac University poll that found 78 percent of voters surveyed believed the officials' bickering has harmed the state. Both men saw their favorability ratings sink in the poll.

“It's irrelevant to me if people think I am winning this feud with the mayor," Cuomo said. "What is relevant is, and where the 78 percent are wrong, is I would never allow a relationship issue with anyone to have anything to do with how I serve the state. I pride myself on being able to work with all sorts of characters in this state."

“Anyone who thinks that the relationship between the state and the city isn't functional is incorrect. We are working. I talk to the mayor regularly, the staffs talk literally on a daily basis. … We're working together, and I don't want anyone to think that I would ever let any personal feelings interfere with the professional responsibility.”


Love that quote - "where 78% are wrong"...

Cuomo's working overtime to stick it to de Blasio again and again and again.

De Blasio's wounded badly by this, but Cuomo's not faring much better.

Where 78% are wrong...

Yeah, that's an argument that's going to work, Andy.

Tweaks To New York's Tests Not Satisfying Standardized Testing Opponents And Critics

From the NY Times:

New York State’s standardized tests for third through eighth graders will be shortened this year, the education commissioner said on Wednesday, the latest retooling of a group of exams that have grown so unpopular that 20 percent of eligible children sat them out this past spring.

The commissioner, MaryEllen Elia, said at a meeting of the Board of Regents in Albany that some multiple choice questions would be shaved off the math assessments and a number of passages would be cut from the reading exams taken next year. A spokeswoman for the Education Department said that the tests would be shortened for students in each grade, and that they would be trimmed further in 2017.

This move is the second time tests have been shortened since they were introduced in 2013, when the state became among the first in the nation to align its tests with the Common Core standards, a set of rigorous learning goals designed to prepare students for college.

The reaction to the tweaks?

The announcement on Wednesday on test length, however, seemed unlikely to quiet critics.

“Half a disaster is still a disaster,” said Loy Gross, a co-founder of the parent activist group United to Counter the Core, who added shortening the tests was just tinkering around the edges of a very large problem.

“And no,” she added, “it’s not going to appease parents who will continue to opt their kids out of tests.”

The educrats do not seem to understand, minor tweaks to the regime and meaningless PR about "listening" to parents and teachers isn't going to cut it.