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Cuomo shifting worker salaries offline amid budget crunch
New York Post ^ | February 18, 2020 | Carl Campanile

Posted on 02/19/2020 1:11:34 PM PST by karpov

In the face of a projected $6 billion deficit, Gov. Andrew Cuomo wants to shift millions of dollars in salaries from the government payroll to the capital budget — thus giving the appearance he’s lowering operating costs, critics charge.

A prime example is Cuomo’s bid to transfer employee salaries from the Department of Environmental Conservation to the $300 million Environmental Protection Fund in the capital budget.

Assembly Environmental Committee Chairman Steve Englebright (D-Suffolk) said that Cuomo shouldn’t pile the salaries there.

“The Environmental Protection Fund has never been used for general operations of the agency. This is not a program specific need. This is just an off-loading of agency personnel,” Englebright told The Post.

“It risks the long-term viability of this very targeted capital program. The raid of the capital fund needs to be rejected. It’s the camel’s nose under the tent,” Englebright added.

Senates Environmental Committee Chairman Todd Kaminsky (D-Nassau) also opposes the move, a spokesman said.

The EPF funds $152 million for land acquisition and open space, $39 million for recycling programs, $89.2 million for parks and recreational programs, including zoos and botanical gardens, and $19.7 million for climate change initiatives.

But language covering the EPF’s budget line says, “a portion may be used for the payment of personal service expenses incurred on or after April 1, 2020.

One budget analyst said Cuomo has sought to shift more salaries off-budget to claim he’s staying within his self-imposed 2 percent spending cap for his government.

(Excerpt) Read more at nypost.com ...


TOPICS: Crime/Corruption; US: New York
KEYWORDS: cuomo

1 posted on 02/19/2020 1:11:34 PM PST by karpov
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To: karpov

Capitalizing operating expenses is usually accounting fraud.


2 posted on 02/19/2020 1:13:36 PM PST by Pearls Before Swine
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To: karpov

The liberal shell game. Don’t actually cut any spending; just cook the books.


3 posted on 02/19/2020 1:15:49 PM PST by IronJack
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To: karpov

In the private sector, that is grounds for prison.


4 posted on 02/19/2020 1:17:18 PM PST by rigelkentaurus
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To: karpov

state retirees who make enormous pensions do not pay state tax.....try starting there governor...


5 posted on 02/19/2020 1:19:01 PM PST by cherry
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To: karpov

Wall Street has been in a 10 year bull market, making record profits - and NY State is still $6 billion in the red?

Of course, in 10 years NY State spending has gone from $126 billion/year to $178 billion/year


6 posted on 02/19/2020 1:19:32 PM PST by PGR88
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To: cherry

They move to Florida..


7 posted on 02/19/2020 1:21:29 PM PST by Hojczyk
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To: Pearls Before Swine

If it is smoke and multiple mirrors, it is not premeditated fraud.


8 posted on 02/19/2020 1:21:34 PM PST by bert ( (KE. NP. N.C. +12) Progressives are existential American enemies)
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To: karpov
In the face of a projected $6 billion deficit, Gov. Andrew Cuomo wants to

Do more smoke and mirrors. I recently read a report where the "general fund" black hole siphons from just about all fee revenue and then never allocates where or how that money is spent. It's unbelievable how mismanaged the money is, they should have line by line allocations online for all to see.

9 posted on 02/19/2020 1:22:57 PM PST by 1Old Pro
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To: rigelkentaurus

I was going say exactly this. In a public company the auditors would hang you from a wire in the lobby if you submitted a budget like that.


10 posted on 02/19/2020 1:34:04 PM PST by Vermont Lt
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To: karpov

And there folks, is the Democrat Party on displaying all their glory.

They take money that’s to be used to help the environment, and use it to buy votes instead.

The only people who still support the Democrats have criminal hearts.


11 posted on 02/19/2020 1:42:13 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: Pearls Before Swine

Not the same, besides their law allows for this.


12 posted on 02/19/2020 1:49:10 PM PST by TexasGator (Z1z)
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To: TexasGator; bert

One of the key “rules” of financial accounting is the accrual principle, which states that income and expenses should be allocated to the periods in which they occur.

So, if these operating expenses contribute benefits over an extended period, it accords with that principle to allocate them over an extended period—i.e., capitalize them initially, and claim them as expenses for a defined period. An example of that in real estate accounting would be that acquisition costs are generally rolled into the capital price of the property and depreciated slowly over time.

However, it’s not generally considered legit to take ongoing annual expenses—operating expenses—and not deduct them in the year in which they occur if they have no such long-term benefits.

The reason for this is that for a non-governmental entity, such accounting makes profits look better than they really are, for a while, and is therefore misleading to investors.

Now, government makes its own rules, so this may be legal for them to do. But it is fudging the books, IMHO.

PS I’m not an accountant, standard Holiday Inn disclaimer, but I’ve been in business, and read a lot of financial statements in the course of investing.


13 posted on 02/19/2020 2:01:29 PM PST by Pearls Before Swine
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To: karpov

Someone should ask the feds just where the Fanny Mae and Freddy Mac deficits are in the budget. As I understand it, they are “off the books”.

All government budgets are unicorn poop and pixie dust anymore. Jail time for real people in the real world, business as usual in government.


14 posted on 02/19/2020 3:38:28 PM PST by ChildOfThe60s (If you can remember the 60s........you weren't really there)
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To: karpov

Another rat criminal scumbag


15 posted on 02/19/2020 4:04:54 PM PST by ronnie raygun (nick dip .com)
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