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| Issue #39 | July 1998 |
"The legislative and executive branches may sometimes err, but elections and dependence will bring them to rights. The judiciary branch is the instrument which working, like gravity, without intermission, is to press us at last into one consolidated mass."
- Thomas Jefferson to Archibald Thweat, January 19, 1821
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THE STATE CONSTITUTION BELONGS TO THE PEOPLE NOT THE GOVERNMENT
NOTE: As the articles below demonstrate, in New York State the ordinary, non-aligned citizens have been degraded from the prime rank, which they ought to hold in human affairs.
Sovereignty is the right to govern; a nation or state-sovereign is the person or persons in whom that resides. In New York, despite massive misunderstanding, it rests with the people.
However, in the practice and even in the science of politics, there has been frequently a strong current in New York against the natural order of things. In New York, which has been denominated free, the state has assumed a supercilious pre-eminence above the people who have formed it.
The state, rather than the people, for whose sakes the state exists, is frequently the object which attracts and arrests the principal attention. This has produced much of the confusion and perplexity, which have appeared in several proceedings and several publications on state politics. Sentiments and expressions of this inaccurate kind prevail in our common, even in our convivial language.
Since the very beginning, the acts of the early national congresses and the acts of the early conventions, including the congress and committees of New York, are replete with expressions with respect to "republicanism" and to the "sovereignty of the people," and the servant nature of governments at all levels. It is to the honor of the United States that in no other country are subjects of this kind better -- or even so well -- understood. One fact stands out: the attention and attachment of the Constitution of the United States and of the New York Constitution to the rights of the sovereign people are discernible, as hard copy, in almost every provision of these documents. It is to be deeply regretted that the constitutional principles which are the cause of action in our lawsuits have not yet received their merited acquiescence and approval as basic principles of governance -- at least, not from New York State’s Legislative, Executive and Judicial branches.
The United States and New York State have, in their constitutional language, advocated both the form and substance of constitutional republicanism, with its emphasis on individual rights and governmental responsibility for protecting and enhancing them. Operationally, however, these principles are honored more in the breach than in the observance. There still may be reason to hope that the government of the State of New York, in all three of its branches, may yet perceive the wrongness of actions it has taken, such as interdicting the right of the people to petition their government for a redress of grievances, interfering with the people’s right to a free election unmarred by the intrusion of governmental powers, incurring public debt in spite of constitutional restrictions, using public resources for private purposes and attempting to exempt the government that represents the body of her citizens from that "suability" which alone enables her citizens to assert their individual, fundamental rights and to seek and obtain the protections of their Federal and State constitutions.
The people have good reason to be thankful for their valuable liberties and privileges and ought never to forget that nothing but forthright insistence upon the perpetuation of constitutional law and government can insure the continuance and enhancement of their liberties and privileges.
THE PEOPLE HAVE PROHIBITED IT
THE GOVERNMENT DID IT ANYWAY WITH THE TFA
We the people, by the clear terms of our NY Constitution, have prohibited the State from taking any money out of the general fund except by appropriation by law and from using public funds to pay the debt obligations of a public corporation. The Constitution also prohibits the State from borrowing money without voter approval and limits the amount of debt local governments can incur. New York City, for instance, is limited to 10% of the average full valuation of taxable real estate in the City, which works out to be $32 billion.
However, government does not like to be restrained by the people. It likes to spend money and wield power.
So, in 1995, the state asked the people for their approval of ballot Proposition 3, which included a set of amendments to the Constitution including one which would have allowed the State to use a public Authority to issue bonds without limit, and without voter approval, to aid "distressed municipalities," with no definition of "distressed".
The people voted "no" overwhelmingly.
However, in March of 1997, a law was enacted which created the New York City Transitional Finance Authority ("TFA") and authorized it to issue up to $12 billion in long-term bonds in aid of NYC. The law itself acknowledged that it is unconstitutional. It not only exceeds the constitutional limit on debt for NYC but is to be paid off from income and sales taxes, without appropriations by law, all in spite of other constitutional restrictions.
On June 2, 1997, ACTA people sued the Legislature and the Governor. We are asking the court to declare Chapter 16 of the Laws of 1997 unconstitutional, null and void. We are waiting for a decision from the Appellate Division.
A copy of the court briefs can be found on our website: www.webny.com/acta under Current Events No. 2
THE PEOPLE HAVE PROHIBITED IT
THE GOVERNMENT DID IT ANYWAY WITH LIPA
We the people, by the clear terms of our NY Constitution, have prohibited the State from giving public resources to private individuals or corporations in aid of private undertakings and for borrowing money without voter approval.
State government doesn’t like to be restrained by the people. No government does. It likes to spend money and wield power.
So, in 1995, the government asked the people for their approval of Proposition 3, which statewide ballot proposition included a set of amendments to the Constitution including one which would have allowed the State to use a public Authority to issue bonds without limit and without voter approval to pay the debt contracted by private corporations for their private, non-public purposes. The State had in mind a State takeover of a private, investor-owned electric utility, the Long Island Lighting Company ("LILCO").
The people voted "no", overwhelmingly.
However, in April of 1998, the State authorized the Long Island Power Authority ("LIPA"), a public authority of the State, to issue $8 billion in long-term bonds to pay the debt of LILCO and to purchase the common and preferred stock from LILCO’s shareholders. It’s interesting to note that the proceeds of the bond issue were also used to "reward" the men who mismanaged LILCO for so many years, by giving the President a $42 million bonus and $25 million to another 25 of LILCO’s most senior managers.
On May 22, 1998, ACTA people sued the State.
A copy of the court brief can be found on our website: www.webny.com/acta under Current Events No. 3
THE PEOPLE HAVE PROHIBITED IT
THE GOVERNMENT DID IT ANYWAY WITH THE EDC
We the people, by the clear terms of our NY Constitution, have prohibited the State from giving the public’s money to private corporations.
Our State government doesn’t like to be restrained by the people. No government does. They like to spend money and wield power.
So, in June of 1998, the State agreed to give IBM $6 million to offset IBM’s cost of rehabilitating the second and third floor of a building at the 300 site of its headquarters in Westchester County. IBM’s net profit in 1997 was $6.5 billion.
Also, in July, 1998, the State agreed to give $13 million in cash and $7 million in tax breaks to Ruppert Murdock’s organization ($12 billion in sales in 1997) to offset the cost of modernizing the New York Post’s printing plant in New York City. The State money will be passed through the State’s Economic Development Corporation.
Our lawsuit against these two constitutional insults should have been filed by the time you receive this newsletter.
A copy of a statement presented at EDC’s public hearing on the IBM grant can be found on our website. www.webny.com/acta under Current Events No. 4
THE PEOPLE HAVE PROHIBITED IT
THE GOVERNMENT DID IT ANYWAY WITH THE IDA
We the people, by the clear language of our NY Constitution, have prohibited the State Legislature from enacting laws which affect the property, affairs or government of one, two or more but not all counties or towns of the State unless 2/3 of the members of the affected local governing boards pass a home rule resolution requesting the State Legislature to act or unless the governor submits a message of necessity along with his request for the legislation. We the people have also prohibited the use of county funds to pay the debt obligations of a public corporation.
Government, however, doesn’t like to be restrained by the people. It likes to spend money and wield power.
Without a local home rule message and without a message of necessity from the Governor, the State Legislature passed a law authorizing Washington County to contract with the County’s IDA for the construction and financing of a garbage incinerator, without competitive bidding and to use the County’s property tax revenues, if necessary, to make the payment. The IDA eventually issued $105 million in long-term bonds and contracted with the Foster Wheeler Corp. to design, build and operate the facility. Washington and Warren Counties agreed to pay a yearly fee for twenty years, which fee included the annual debt service, the cost of operating and maintaining the facility and a guaranteed profit for Foster Wheeler. The debt service amounts to about $10 million per year, or $200 million. At the end of the 20 year debt period, the IDA is to give the plant to Foster Wheeler, for free.
On June 12, 1998, ACTA people took the matter to court. The Legislature is a defendant for passing the Home Rule Bill without a home rule message. The counties are defendants for lending their credit to a public corporation and for using county money to pay the debt obligations of the IDA.
A copy of the court briefs can be found on our website: www.webny.com/acta under Current Events No. 5
THE PEOPLE HAVE PROHIBITED IT
THE GOVERNMENT DID IT ANYWAY WITH SYSCO
New York State owns and operates 266 state prisons and hospitals which purchase food and sundry items for which the State pays about $100 million every year. These numbers do not include municipally owned and operated facilities.
The taxpayers are paying about 30% more for these products than NY City and other nearby states.
In 1995, in violation of the federal and state anti-trust laws, the State’s purchasing and competitive bidding laws and the NY Constitution’s prohibition against gifting such contracts to private corporations, New York State officials contracted with the SYSCO Corporation, the nation’s largest (sales of $12 billion per year) food and sundries distribution company to supply all 910 items consumed at all 266 facilities for four years. This business was taken away from the dozens of smaller, local, family-owned, independent food service distributors. They have not been given the opportunity to continue doing what they had been doing for decades --freely competing for the State business on the basis of a low bid.
On January 29, 1998, the state and SYSCO were taken to court.
A copy of the court briefs can be found on our website: www.webny.com/acta under Current Events No. 6
THE PEOPLE HAVE PROHIBITED IT
THE GOVERNMENT DID IT ANYWAY WITH LULU
We the people, by the clear terms of our Constitution, have prohibited the Legislature from passing laws dealing with the compensation of its members, unless prospective in effect, i.e., the legislation must take effect after the end of the then current two-year term.
However, on January 21, 1997, the Legislature passed a law giving special allowances of six to eight thousand dollars per year to each of seven assemblymen, to take effect January 1, 1997, and to run for the duration of the current two year term which ends December 31, 1998.
On February 3, 1997, ACTA people took the Legislature to court.
A copy of the court briefs can be found on our website: www.webny.com/acta under Current Events No. 7
THE PEOPLE HAVE PROHIBITED IT
THE GOVERNMENT DID IT ANYWAY WITH THE STEUBEN CLUB
We the people, by the clear terms of our NY Constitution have prohibited cities from gifting public money to private corporations.
However, in 1997, and again in 1998, the City of Albany gave $60,000 to the "Steuben Place Partners" so that the owners of the Steuben Club could make the payments required to be made under the terms of one of its private loans. The Steuben Club is a swank, private club located in Albany. It has a classy dining room, swimming pool, handball courts, work-out rooms, etc. Its members include prominent bankers, government officials and leaders of business and industry.
On March 6, 1998, ACTA people took the City and the Steuben Place Partners to court.
A copy of the court briefs can be found on our website: www.webny.com/acta under Current Events No. 8
OUR EFFORTS HAVE EXPANDED
As you can see from the above reports, we have been carrying a heavy caseload. In addition, the year 1997 brought a unique challenge -- to try to achieve a "yes" vote on the ballot question whether there should be a constitutional convention. As many of you know, we had started to prepare for this campaign more than two years ago with a two-day "pre-convention" in Albany in July, 1996. Starting in April, 1997, monthly meetings of a "We The People Congress" were held in Albany to strategize about how to conduct the campaign and to hammer out a consensus on dozens of proposals for constitutional revisions should a convention be held.
Although we did not win in November, we did succeed in doing a fair job of getting the word out across the state that there was to be a constitutional convention question on the ballot, and we put a real fright into certain organizations who were quietly opposing a convention, such that their opposition became publicly exposed for what it was – a contempt for the principles of "republicanism", and a promotion of government for the benefit of the government and numerous special interest groups. Such organizations as the teachers’ union, public employee unions, AFL-CIO, NYS Trial Lawyers Assn., and the League of Women Voters put enormous effort and millions of dollars into their crusade to avert a convention that could have revised and improved the State Constitution to eliminate some of the abuses that are so rampant.
In November, in order to carry out the work towards achieving constitutional change and to spread out and expand the work that ACTA people were involved in, and to give others an opportunity to participate in a variety of ways, two other groups were organized and incorporated. We The People Foundation For Constitutional Education, Inc. is a 501(c)(3) not-for-profit corporation (contributions are tax-exempt), whose purpose is to fulfill a need in New York for more public awareness and knowledge about the State Constitution, about the sovereignty of the people whose will it is supposed to express and about the government it is meant to control. It will address those needs with educational programs, research, evaluating governmental performance, and helping to test judicial attitudes. It has 22 board members from across the state. We The People Congress, Inc. has 19 statewide board members and is a 501(c)(4) not-for-profit corporation (contributions are not tax-exempt), whose purpose is to lobby for reform, work for a greater role for voters in government, and achieve a constitutional convention as soon as possible. It is a membership organization. In combination with ACTA, these two groups are intended to give us a triple-threat offense toward constitutional governance carried out in decency and good order.
While these are both fledgling organizations that are a long way from reaching their mature potential, much has already been accomplished. For example, the Foundation responded to a call from a private Coalition based in New York City that wanted groups from around the state to prepare proposals to establish Charter Schools in anticipation of the passage of legislation that would provide for this dramatic approach to choice in education. The legislation did not pass this year, but there are strong forces working to make it happen next year. The Foundation competed for and won a small monetary award from the Coalition for phase one of its proposal for a Charter School in Glens Falls and it awaiting word about a much larger award for its phase two proposal.