Gov. Paterson's Payroll Pal

Why would Governor David Paterson of New York (D) fire a key adviser and then rehire him a day later for a job paying $170,000 at a time when the state imposed a hiring freeze?

The day after firing his chief of staff, Gov. Paterson secretly rehired the top aide as a $170,000-a-year adviser on federal stimulus funds, The Post has learned.

William Cunningham, a former law partner of the governor's father, Basil, and a longtime Long Island Democratic activist, was dumped as Paterson's $178,500-a-year secretary on Feb. 25, because he had brought chaos to the office.

A press release at the time said he had resigned "effective today" and noted that Cunningham, who was widely criticized for indecision, would stay on only for "a transition period."

But despite the governor's claim to have imposed a "hard" hiring freeze throughout state government, records and information obtained by The Post show Cunningham was rehired the next day as a "deputy secretary to the governor" and is now working at the state's Long Island office in Hauppauge.

"He has joined our team that is working on the distribution of federal stimulus funds," said Paterson spokesman Errol Cockfield.

Paterson has named a "Cabinet" to oversee the spending of the stimulus funds headed by Timothy Gilchrist, who is being paid nearly $5,000 less than Cunningham.

Something is rotten in New York State, and it starts at the top.

This mess actually started when Paterson's Chief of Staff Charles O'Byrne was forced to resign in a Friday night news dump after it was revealed that Charles O'Byrne failed to pay $300,000 in income taxes. Cunningham took over as interim Chief of Staff (also known as the Governor's Secretary).

Cunningham was "fired" on February 25, after it became all too apparent that Cunningham wasn't up to the task of managing the governor's affairs. So, instead of allowing Cunningham to go back to the law firm from which he was chosen, Paterson selected him for a cushy gig doling out federal stimulus funds? The rehiring is a purely political move to smooth over hurt feelings. That's not how to run a state during a crisis. It continues a long history of incompetence and irresponsibility.

Friday Night News Dump: Gov. Paterson's Chief of Staff Resigns

Charles O'Byrne, New York State Governor David Paterson's right hand man, resigned last night after O'Byrne admitted not paying income taxes for five years and totaling more than $300,000 in back taxes. The Times Union reports that O'Byrne was offering his resignation all through the week and was finally accepted yesterday. So, it would appear that Governor Paterson knows how to play the Friday night news dump, burying bad news where the media and public attention is least likely to focus.

O'Byrne was integral in putting together state budgets and conducting negotiations with the state legislature for Governor Paterson.

O'Byrne was set to begin new negotiations to move forward with Governor David Paterson's (D-NY) fiscal agenda in light of the sharp declines on Wall Street, which is a cash cow for the city and state. The New York Times reports:

But statements from Mr. O’Byrne’s lawyer that his tax delinquency was close to $300,000 and that he may have suffered from a syndrome that causes people to not file their taxes worked to intensify the furor, which seemed likely to disrupt Mr. Paterson’s focus on the legislative elections and the budget talks ahead.

“Members of an elected official’s staff should never distract from the work of the principal who they are privileged to serve,” Mr. O’Byrne wrote in his resignation letter, released Friday. “It is clear to me that my personal history has become a distraction to the work of your administration.”

The blow to Mr. Paterson is as intensely personal as it is political.

A highly educated former Jesuit priest, Mr. O’Byrne had an unusually close relationship with the governor, who was raised as a Roman Catholic. Asked to describe it, one person who knows both men said, simply, “Charles was his priest.”

The governor, who is legally blind, has been uniquely dependent on his staff, especially on Mr. O’Byrne, his confidant and alter ego. Mr. O’Byrne was constantly in contact with Mr. Paterson and always reverent, calling him “Governor” — never “David.”

Those who worked with the two men described Mr. O’Byrne as devoted to moving Mr. Paterson’s policies and desires through New York’s large and unwieldy executive branch and the Legislature.

“The guy is really hard working, very smart, loyal and devoted to his boss, and was really his partner in government,” said Kenneth Adams, the president of the Business Council of New York, a trade group that had warmly greeted Mr. Paterson’s recent calls for fiscal discipline. “The governor hasn’t lost a member of his staff, he’s lost his quarterback.”

It's that latter issue, that O'Byrne was the man on whom Paterson leaned heavily upon for advice and expertise that will harm the Governor's ability to get the job done going forward. Paterson must now scramble and find someone to fill the most crucial position on his staff.

In the interim, William Cunningham III, who is senior adviser to the governor and a longtime friend and colleague of his father, Basil Paterson, will be named Chief of Staff (also known as Secretary to the Governor). The Times Union provides that Cunningham is a "graduate of Williams College and Columbia University School of Law, Cunningham is a former assistant U.S. attorney and was a partner in several law firms. Basil Paterson and Cunningham worked together at the Long Island-based law firm Meyer, Suozzi, English and Klein."

Kneecapping the Governor

The right hand man to Governor David Paterson (D-NY), Charles O'Byrne, is turning out to be a huge liability for the Governor, especially as negotiations are set to commence with the Legislature over a new round of budget cuts because of the looming fiscal crisis in the state. It's going to kneecap the Governor at the most delicate of junctures.

As Chief of Staff, O'Byrne has his hands on literally everything that crosses the desk of the Governor. He helps set the agenda, controls access, and reads everything that comes Paterson's way.

It therefore doesn't help that O'Byrne is now claiming the hysterically laughable excuse that he suffered from "non-filer syndrome" to explain away how and why he failed to pay income taxes for five years. This is a position that helps set the governor's agenda, brokers deals with the legislature on behalf of the governor, and essentially runs the governor's office. Not only does that suggest that the governor is getting bad advice for sticking by his guy, but it undermines his ability to negotiate with the legislature.

The situation also raises questions over what kind of advice the governor is getting from O'Byrne on Ground Zero, where the Governor's recent statements made absolutely no sense. Steve Cuozzo has the details on that aspect.

Paterson is doing himself no favors by keeping O'Byrne as his right hand man, and he's doing the state and city a grave disservice because the state and city need firm and competent leadership.

Gov. Pateron's Aide Claims "Non-Filer Syndrome"

I'm sure the IRS officials who have to read this will get a chuckle, right before they drop the hammer on Charles O'Byrne.

claimed Wednesday he failed to pay taxes for five years because he has "non-filer syndrome."

"These are very high-functioning people who otherwise can complete all of the ordinary tasks in their lives," O'Byrne lawyer Richard Kestenbaum insisted.

"But there is something that they can't do, and many times that causes them not to be able to file their tax returns."

Here's why O'Byrne didn't file his taxes. He chose not to. You must pay them. Failure to do so is subject to criminal and civil penalties. This is a lame attempt to avoid paying penalties, interest, on his tax obligations, which is over $300,000 (and $100,000 more than previously indicated).

Gov. Paterson is going to have to distance himself from O'Byrne over this.

UPDATE:
Gov. Paterson is now calling for background checks on his top officials. That's what should be done before they get the jobs, not after. No check was done on Paterson's chief of staff O'Byrne. Oh, and it's an opportunity to play name that party! Thanks AP!