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Parents seek aid for prescription drug addicts

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ALBANY – When advocates get their way on an issue at the state Capitol, they usually disappear, quietly and happily.

Not so with a group of Buffalo parents who helped lead the political push in Albany last year to get a law enacted that cracks down on liberal dispensing of prescription painkillers that can be highly addictive.

Now, this same group of parents is back at the Capitol, saying the Cuomo administration is failing follow through on the second phase of their effort to combat prescription drug abuse: expanded drug treatment.

“While this was a wonderful law, they’re dropping the ball and leaving thousands fighting for their lives,” said Patricia McDonald, a Buffalo resident whose daughter, Adrianne, died two years ago from a heroin overdose following what she believes was an addiction to potent prescription painkillers.

With much fanfare, Cuomo and lawmakers last year approved the Internet System for Tracking Over-Prescribing Act, or I-STOP. Key provisions kick in later this year, including “real time” tracking of painkiller prescriptions to prevent overdispensing.

At Cuomo’s side were several parents, most from the Buffalo area and Long Island, whose tragic stories involving their dead or addicted children became the plot lines to help get the law approved.

Though happy then that the new law was approved, many of those same parents today are seething.

“When I-STOP passed, it seems like the support from the governor’s office stopped,” said Avi Israel, who was one of the central lobbying forces to get the law approved. His son, Michael, 20, killed himself in the family’s North Buffalo home in the midst of an addiction to painkillers.

The administration disputes these claims and says it is taking a proactive approach to deal with drug addiction. Moreover, it believes there are enough treatment slots to meet the demand.

Some providers and these parents dispute that claim.

Treatment officials talk of long waiting lists to get into residential facilities, which some say is often needed to break an opiate addiction. One facility in Buffalo has up to 70 people at a time on a wait list.

Several parents contacted The Buffalo News after a recent article about the effects I-STOP has had on curbing prescription drug abuse to say they had to travel as far away as Florida to find available beds for their addicted relatives and friends.

Some area parents who helped lobby for I-STOP were at the Capitol a week ago to drum up support for additional treatment options. They talked of a meeting they attended last August at the Capitol – after I-STOP’s passage – to begin a push for more treatment beds.

Gov. Andrew Cuomo’s chief health adviser, James Introne, showed little support, they complained.

“He said we were wasting his time,” said Cheryl Placek, a Niagara Falls woman whose son, Daniel, a 28-year-old Navy veteran, committed suicide while addicted to prescription painkillers. Her comments were backed up by Israel and McDonald, who both attended the meeting.

The Cuomo administration strongly disputes that Introne, a veteran health care expert whose first top state job in the field was during the administration of Gov. Hugh Carey, was disrespectful to the group of parents.

Asked why they were speaking out now about a meeting that happened six months ago, Placek, McDonald and Israel said it was because they had hoped the Cuomo administration would address their concerns.

“What made us stay silent was the hope the state was going to do something,” Israel said.

The parents, who have no direct stake in the effort because their addicted children have died, are grateful the administration is adding 25 treatment beds apiece for the Buffalo area and Long Island. And 100 new beds are coming next year for veterans, 25 in Niagara County. But advocates in Western New York say it is not enough.

Addiction experts have differences over treatment. Many physicians believe opiate replacement therapy – with such drugs as buprenorphine – offer far better results than residential treatment and other counseling therapies that they say have high relapse rates.

Federal data shows New York had the second highest number of people – 123,000 – behind California in addiction treatment facilities in 2011, the state officials point out. And New York had the highest percentage of opioid treatment programs, methadone clients and people using buprenorphine, they added.

A Cuomo administration group working on the issue has identified several barriers to more treatment beds, including lack of providers and costs. That group believes that goals will include access to methadone and buprenorphine and expanded treatment in office-based settings, which will be a better option to people in rural areas.

The state is now requiring medical directors in its addiction treatment system be authorized to prescribe buprenorphine and that new medical directors coming into the system be board-certified in addiction medicine.

But at a state budget hearing last week, lawmakers raised concerns about rising opiate addictions and treatment options.

“What I’m suggesting is not enough money is in the budget to handle the explosion of opiate addiction in New York State. Why is that?” Assembly Alcoholism and Drug Abuse Committee Chairman Steven Cymbrowitz, a Brooklyn Democrat, asked one of Cuomo’s point persons on drug treatment.

“Assemblyman,” responded Sean Byrne, executive deputy commissioner at the Office of Alcoholism and Substance Abuse Services, “we currently believe we have sufficient funds to respond to the demands we are seeing.”

“So you will be able to eliminate the explosion of opiate abuse?” the lawmaker asked.

“Stopping the proliferation of the circulation of illegal drugs is not something that’s directly in control of OASAS. That’s something that’s more appropriately the function of policing agencies,” Byrne said.

“So,” the lawmaker asked, “there is enough money for treatment services to all those with opiate addictions?”

“Yes, sir. Yes, sir,” Byrne responded.

In later questioning, Sen. Tim Kennedy, a Buffalo Democrat, told Byrne that his own agency’s statistics show that only 16 percent of the residential treatment needs in Western New York are being met, while in New York City, 111 percent of the need is met because of an overabundance of beds.

Byrne disputed that there is a shortage in Western New York, or anywhere in the state.

As of last week, he said, the treatment system had available beds for any addicts in need. Officials Friday said the statewide drug treatment system has an 82 percent utilization bed rate on most days, meaning as many as 1,000 “intensive resident beds” are available.

But providers in Western New York say there is a shortage, and that state officials have told them to send people in need to unused facilities in New York City – a route they say is therapeutically unworkable if families are to be involved over the months of treatment.

“You’ll always hear providers say we can do more with more,” Byrne told Kennedy during the hearing.

Kennedy called the official’s answer “a play on numbers.”

Prescriptions for hydrocodone, a painkiller, in Erie County were more than triple that of any other controlled drug between 2008 and 2010, according to the state Office on Alcohol and Substance Abuse Services.

In the four years ending in 2011, noncrisis admissions to drug treatment providers for prescription opioids rose 74 percent to 1,462 cases. Three-quarters were for people age 35 and under.

“This is a problem that’s not going away. This is a problem that’s going to be magnified as I-STOP is implemented and there is more of a need for this addiction services,” Kennedy told the Cuomo official last week.



email: tprecious@buffnews.com

Enemies in high places – Paladino vs. Higgins

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Every day for the last six months, approximately 37,000 commuters on the southbound Niagara Thruway get an in-your-face dose of one of the most bitter and deeply personal feuds in the history of Buffalo politics.

That’s where developer Carl P. Paladino has targeted his most recent opponent, high atop a dilapidated building he owns on Scott Street. It features a marionette-like Rep. Brian Higgins with House Minority Leader Nancy Pelosi.

“That’s my #1 boy,” the caption reads.

The billboard stands as the most public manifestation yet of the vicious feud between two South Buffalo stalwarts who are among the most recognized political figures in New York State.

Thruway gawkers pondering the sign must wonder what it’s all about. Why would Paladino go to such lengths to humiliate a U.S. congressman?

There was a time when Paladino and Higgins called each other friends. In fact, they are related by marriage; their wives are first cousins.

In recent weeks, however, the billboard has released a pressure cooker of animosity building

between the two since even before Paladino’s unsuccessful Republican candidacy for governor in 2010.

Now, neither is holding back.

“I don’t respect him, his politics, his demeanor nor his personality,” Paladino said recently, citing Higgins’ “arrogance.”

“I saw in him an obstinacy; an attitude that, if it’s not Brian’s idea, it’s not a good idea,” he added. “Given my nature, I would point out these things to him.”

After Paladino decided to “point out these things” to millions of motorists traveling the road over the past months, Higgins also unleashed. Some are shocked that the normally serene congressman, who prefers discussing Irish history to street politics, is even reacting.

But he says he’s had enough of Paladino.

“Carl is the worst kind of coward this community will ever know,” Higgins said. “He hides behind his dirty money and sits in his Ellicott Square cave spewing his venom and hateful emails every day. He’s pathetic, disgraceful and a broken man.”

Higgins characterizes his former friend as a “street punk,” a “bully,” and Buffalo’s “chief bloviator.”

“Carl has all the moral arrogance without the moral integrity,” Higgins said. “It’s very, very sad what’s become of him.”It wasn’t always this way.

Both recall happier days when friendly banter over politics or neighborhood news enlivened family gatherings. The two, after all, married a couple of “Hannon girls” from the neighborhood – Mary Jane married Higgins and Cathy married Paladino. The cousins, according to those who know them, have always been close as part of a prominent South Buffalo family. So it was natural that their husbands became friends.

“They were more than close, they were married into the same family,” James P. Keane, the former South Council member and deputy county executive, said of Higgins and Paladino.

“They were family close; that kind of close,” he added.

Friendship seemed suited for Higgins and Paladino, both products of blue-collar families who worked hard for their success.

Paladino, 66, grew up in Lovejoy and graduated from Bishop Timon High School and St. Bonaventure University. He is the son of a city worker and grandson of Italian immigrants and he made millions as a downtown real estate developer after Syracuse University Law School.

His empire now includes a string of suburban hotels and office buildings he leases to New York State.

But he is also an outspoken politician whose conservative views catapulted him into the national spotlight three years ago when he entered the GOP race for governor.

After shocking the state’s Republican establishment with an overwhelming primary victory, his brash ways and pugnacious nature seemed to dim his appeal in the general election. Even though Paladino spent $4.1 million of his own money, Democrat Andrew M. Cuomo scored a landslide 61 to 34 percent win.

New York City tabloids labeled him “Crazy Carl.”Higgins, 55, hails from a similar background.

He is the grandson of Irish immigrants and son of a teacher and the late South Council Member Daniel J. Higgins Sr. – a former bricklayer. The future congressman graduated from South Park High School, majored in history and economics at Buffalo State College, and earned a master’s in public administration from Harvard University.

But he has always seemed destined for public life. He was South Council member, chief of staff to the Erie County Legislature, member of the Assembly, and now sits in the House of Representatives.

Keane, the former deputy county executive from South Buffalo, said he has “great respect” for both men, partly because of their commitment to the community.

Paladino, he pointed out, has sponsored tuitions for deserving kids to his alma maters, while many say he quietly and often assists families in need.

“Those things count,” Keane said.

Early on, Paladino helped Higgins launch his political career. The real estate developer gave Higgins $9,350 in contributions during his days in the Common Council and Assembly, according to campaign finance records. He even hosted a fundraising event for Higgins’ 2004 congressional bid at his Orchard Park farm.

And Paladino claims to have partially financed Higgins’ Buffalo Niagara Partnership scholarship to the Kennedy School in 1995-96, although Higgins and Partnership officials deny he had anything to do with it.

“I had some faith in him; I thought he was trying to do the right thing,” Paladino said of Higgins.

But the situation changed once Higgins went to Congress.Perhaps the first issue dividing them was abortion.

While in the Assembly from 1999 to 2004, Higgins consistently voted pro-life. But as a candidate for Congress in 2004, he switched to a strong pro-choice stand, much to his former supporter’s disappointment. The relationship was beginning to deteriorate.

Higgins notes that Paladino was fully aware of his changing views but still contributed to his first congressional campaign.

The already strained relationship reached the breaking point when Higgins embraced President Obama’s health care initiative – anathema in Paladino’s eyes.

“I recognized that Obamacare was being pushed quickly and unethically ... and the first guy on the bus was Brian Higgins,” Paladino said. “I wrote him a memo and gave him all the logic. But on the personal side, I was recognizing an arrogance that was out of character for him.”

Paladino invited Higgins to his Ellicott Square office to discuss their differences at about the time Obama’s health care proposal was debated in 2009. And though political staffers often tape record conversations with reporters, Paladino was more than miffed when a Higgins aide recorded him. The congressman, he said, told him he had to “protect myself.”

“I found that insulting,” Paladino said.

Just about everyone close to the two men pointed to Higgins’ support for Obama’s health care plan as the turning point for Paladino.

“If he thinks the government is forcing him to do something ...,” Keane mused. “Carl’s a CEO. He doesn’t like being told what to do, particularly by the government.”

Michael R. Caputo, the East Aurora political consultant who served as Paladino’s campaign spokesman in 2010, said the developer seriously contemplated a congressional challenge to Higgins that year before he was persuaded to run for governor instead.

Obama’s helath care plan was “the straw that broke the camel’s back,” Caputo said.

“He was absolutely passionate about the ravages of Obamacare,” the former campaign aide said. “The two of them talked a lot about it, and Carl said when they talked, that this was a major divisive issue.”

Another confidant, tea party activist Rus Thompson, said he watched Paladino grow increasingly disenchanted with Higgins on many levels.

“He feels Brian has really turned on his own core values for political expediency,” he said. “And it hurts Carl.” Thompson added that Paladino deems Higgins guilty of “grandstanding” on every issue associated with the Buffalo waterfront.

But one incident may have forever broken a friendship and transformed the pair into archenemies. That came just after Paladino announced his candidacy for governor a little over two years ago.Paladino’s 2010 gubernatorial campaign seemed doomed after a Buffalo website revealed his practice of emailing racist and pornographic jokes to friends.

At the time, Caputo (who has since broken with Paladino) told reporters he had been approached by a Higgins “emissary” who promised “everything would come out” if Paladino ran for governor.

Though he sent jokes to many friends on his email list, Paladino then and now blames Higgins’ staff for the leak.

“That was the end,” Paladino says now. “I knew he did it. And it only caused more anguish in the family than we already had.”

Thompson said the Paladino campaign engaged investigators to track the email trail.

“So we know where it came from,” he said.

Higgins denies that he or his staff leaked the emails, pointing out that Paladino’s email list included dozens of people who could have released the jokes.

Even before the email incident, Paladino claims Higgins threatened to use his influence to scuttle renewal of the FBI’s lease of a building he co-owns behind City Hall. He said Higgins told business associates that unless Paladino “got off my back, the lease won’t be renewed. Make sure the message is clear to him.”

One source, who asked not to be identified and whom Paladino says witnessed the conversation, does not recall the incident. But another person present for the conversation, former Buffalo Sabres President Larry Quinn, confirmed that Higgins made the remark.

But Quinn said he did not believe then or now that the congressman was serious.

“Brian got mad and said that, in anger,” Quinn said. “I didn’t take it seriously, and it didn’t mean he would really do it.

“It would be a shame if people took it for anything else than a guy blowing off steam, which we all do,” he added.

Higgins said the incident “may have been a conversation Larry and I had. It is what it is.”

“He has not advanced anything to say ‘here is rock-solid evidence he did this thing,’ ” Higgins added.

The congressman said Paladino should be held just as accountable for the many controversial comments he has made in public.

“It’s not OK for him to insult gay and lesbian people in Buffalo or a professional woman at a public meeting,” he said. “I think he’s a creep, a punk, and a coward.”Fast-forward to Paladino’s Thruway billboard, which at one time featured an “enemies list” skewering everyone from Buffalo Niagara Partnership President Andrew J. Rudnick to Assembly Speaker Sheldon Silver to former News Publisher Stanford Lipsey. Paladino has never shied from expressing his feelings.

Still, he has recently demonstrated he can repair previously broken relationships – such as with Mayor Byron W. Brown.

A mellow Paladino showed no animosity after the city rejected his proposal for a Webster Block commercial complex in favor of one submitted by the Buffalo Sabres. And a year later, the mayor says his administration will now support Paladino’s new hotel and commercial complex at Erie Basin Marina – pegged at $75 million.

The congressman points to his own support of Brown as the root cause of his Paladino problem.

“That’s the irony in all this,” Higgins said. “Now he’s cozy with the mayor and in exchange is doing business with the city – which is fine.”

Paladino, meanwhile, attended a recent Brown fundraiser after years of animosity, and said he will not support a Brown opponent in this year’s mayoral election as in the past. Witnesses report that Paladino even gave one of his trademark “bear hugs” to the mayor at his fundraiser, and that Brown – for the first time ever – attended Paladino’s famous Christmas party in December at Ellicott Square.

But it appears no such reconciliation lies in the future for Paladino and Higgins.

“No, I don’t expect that,” Higgins said. “I’m not interested in a relationship with people like that.”

The Paladino camp expects little on that score either.

“I would like to see it, but I honestly don’t know,” said Thompson, the tea party leader. “It goes very deep.”

Higgins labels his rival hypocritical for railing against government while renting his properties to New York State for “big money.”

And he delights in pointing out that the structure hosting the “silly billboard” is deserted, dilapidated and covered with graffiti.

“Carl has a beautiful family, both immediate and extended, and I feel sorry for them,” Higgins said. “He is pathetic.”Back in South Buffalo, the tension sometimes overflows, even if life goes on.

Last week, Paladino announced he will run for the Buffalo Board of Education this year in the South District. Voting records show that in the 2010 gubernatorial race, the South Council District was the only city district that Paladino carried.

And he won big, by a 2-to-1 ratio.

“Isn’t that quite a statement?” Keane said. “That just shows how much anger and frustration there was.”

Still, Keane says he is saddened by a dispute between two men who by all rights should be working together. The Niagara Thruway billboard now adds a new dimension to the feud, and he calls Paladino “out of line.”

“In general, people are not even aware of it,” Keane said of South Buffalo’s reaction to the feud. “But among politically connected people or among those who know them both, it bothers them. They wish it would go away.”

Paladino, who often hints at supporting a Higgins congressional opponent, doesn’t see any chance for reconciliation either.

Reapportionment, he acknowledged, handed Higgins a district that appears invulnerable to a Republican challenge.

“He’s so lucky a judge gave him the perfect district,” Paladino said, hinting at only one remaining possibility. “Until a better Democrat comes along.”

And the family gatherings? They are now a bit awkward.

“We’ve been at events in the same room,” Paladino said of Higgins, “but he generally leaves right away.”



email: rmccarthy@buffnews.com

Canadian casinos, in midst of swift decline, offer lesson for New York

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NIAGARA FALLS, Ont. – Casino gambling made this city a boomtown, spurring hotels, restaurants and all the draws of a teeming tourism capital.

But the glitzy casinos that tower over Niagara Falls are now struggling to survive, threatened on all sides by a perfect storm of competition and changing times that has put their gambling monopoly to an end.

The future of the Canadian casinos could alter the tourism landscape in Niagara Falls – and pose a cautionary tale as New York State considers adding even more casinos to upstate New York.

“We’re getting beaten up on all sides,” said Jim Diodati, the mayor of Niagara Falls, Ont. “It’s very, very frustrating.”

What a fall it has been for Canada.

Profits from Canadian gambling facilities close to the U.S. border have dropped from $800 million to $100 million over the last decade.

And at resort casinos like the Fallsview and Casino Niagara in the Falls – built in the last 20 years – profits have dropped by more than $600 million alone.

No one factor is to blame for the decline, officials say.

But a series of unrelated factors has teamed up to hobble the casinos that once signified the city’s success.

Most obvious is the Seneca Niagara Casino on the American side, which has cut into Canada’s competition since the day it opened in 2002.

By that point, Canada’s Casino Niagara already had a six-year head start on attracting gamblers to its poker tables.

But the Senecas have used their tax-free advantages – and steady profits – to entice gamblers with free drinks and generous discounts at their 26-story hotel.

And for those guests who choose to get a room on the more developed Canadian side, the Senecas offer a $50 gambling voucher to draw them across the border.

“Seneca casinos are coming into our own backyard,” Diodati said, “and beating us at our own game.”

There’s one more factor: Senior citizen gamblers love the Seneca casino because you can light up a cigarette while playing the slots.But the Senecas aren’t the only reason the Canadian casinos are reeling.

The events of Sept. 11 took an international border that was relatively loose and tightened it considerably. Since then, a passport or enhanced license are needed for every trip to Canada.

Even worse for business was the sinking value of the U.S. dollar and the rising power of the Canadian dollar. The loonie was worth just 62 cents American when the Seneca casino was built but now is close to par.

The change has been great for Buffalo, with Canadians rushing to get the hottest deal each weekend at area malls and outlet stores.

But for each Ontario license spotted at the Walden Galleria, there’s an American counterpart who doesn’t bother to make the trip to Niagara Falls, Ont.

“That’s been a huge factor, especially for the day-trippers and people coming to the casino and the other attractions on this side of the border,” said former mayor Wayne Thomson.

The American casino has sucked profits from Canada for more than a decade, but one of Casino Niagara’s most threatening competitors lies a few blocks away.

Fallsview Casino Resort was opened in 2004 as the second Canadian Niagara Falls casino. Its resort hotel and performance venue distinguish it from Casino Niagara, which only features gambling and dining.

Business owners say the province has essentially neglected the first casino, with one saying he’s “surprised that it’s still open.”

It may not be for long.Ontario is considering shuttering Casino Niagara – and other sites – in favor of a new casino in greater Toronto.

Diodati is fighting that move on the grounds that it would jeopardize the 4,700 casino jobs in Niagara Falls and possibly the city’s entire tourism economy.

“Any negative effect on the casinos sends a negative message to the businesses that set up on the periphery of the casinos in Niagara Falls,” he said. “They’re woven into the fabric of the tourism community – the hotels, restaurants are all tied together.”

That includes 30 high-rise developments that have crowded the property around the falls since the casinos were built, Thomson said.

Top government officials should remember the pre-casino days, he said, when Niagara Falls, Ont., looked a lot like Niagara Falls, N.Y.

“The community was in a recession, tourism was in decline, and there were absolutely no high-rise developments in the Fallsview area,” he said.

Business owners around Casino Niagara say they aren’t worried about the possible closure of the casino as long as the Fallsview stays open.

But if both were to close, they said the winter tourism component supported by gambling and the city’s two massive indoor waterparks would disappear.

“It used to be Sept. 1, and that was it” for tourists, said Steve Roussell, who manages a restaurant near Casino Niagara. “Now we’re a 12-month city.”

The signs already look ominous for Niagara Falls.The government recently sliced the assessment of the two casino properties by more than half because of speculation that one or more of the casinos could close.

Casino Niagara’s taxable value – more than $130 million just five years ago – has been reduced to $36 million. The Fallsview land – valued at more than $560 million – has been reduced to less than $300 million, causing budget problems for the city.

“It is, in my opinion, unrealistic and unfair to the citizens of Niagara Falls,” said Thomson, the former mayor. “It has put a huge financial burden on the taxpayers for municipal operations.”

Some Canadian lawmakers see new, more profitable casinos as a way to help bridge a multi-billion-dollar budget gap.

The province says the decision is pure economics.

Gambling officials point to a stagnant yearly payout to municipalities – $2 billion – as proof that the gambling system needs to be reconfigured to grow.

They believe that number could be increased by rearranging where Ontario’s 33 existing slot facilities are located.

“The old philosophy was to build a casino and they will come,” said Diodati, the current mayor. “Now, it’s ‘build it where they already are.’ ”Too many gambling sites are operating across the province, and many are in the wrong areas, gambling officials acknowledge.

There was “too much production in that area,” Ontario Lottery and Gaming spokesman Tony Bitonti said. “We’ve dealt with an overabundance of gaming.”

Some believe New York could encounter the same problem, now that Gov. Andrew M. Cuomo proposes at least three new casinos in upstate New York and possibly another in Niagara Falls.

Counting racetrack casinos and Indian casinos, New York now offers 17 casinos, and another 39 function in adjacent states, Cuomo said last month in Buffalo.

“The analysis and history shows that upstate New York presents a good market for casinos, including the Western New York region, and that taking advantage of this opportunity will help us bring much-needed jobs upstate,” Cuomo spokesman Matt Wing said.

But a new report has found that New York’s three Indian tribes with gambling halls saw a nearly 3 percent overall drop in revenues in 2011 at the same time tribes nationwide saw a 3 percent revenue increase.

Some believe those figures – coupled with Canada’s current troubles – should serve as a warning sign to New York.

“There’s only so many slices in a pie, and every time you take a slice out, it takes away from the whole picture,” Thomson said. “It’s just spreading revenues out and taking away from the overall picture. I think it’s a big mistake.”



email: cspecht@buffnews.com

Auditor defends critical report on ’06 storm aid

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WASHINGTON – A top federal investigator is defending his agency’s critical audit of Erie County’s use of disaster aid following the surprise snowstorm of October 2006, saying that the county hasn’t been able to prove that it spent that money properly.

D. Michael Beard, the assistant inspector general at the Department of Homeland Security who signed off on the audit, renewed his criticism of the county in an interview with The Buffalo News, saying the county’s shoddy contracting and record-keeping prompted his agency’s call for the county to return $48.5 million in federal disaster aid.

“The county can’t show us anything they actually did,” Beard said.

The audit focused its criticism on the county’s insistence that local contractors be used to clean up the downed trees and debris left behind by the heavy, wet snow.

Local officials, from past and present administrations and both political parties, have taken issue with that criticism, citing two federal laws that allow the county to give preference to contractors from the region.

In The News interview, Beard conceded that the law allows the county to favor local contractors, but he said the problems auditors found went far beyond that.

“They can’t prove anything,” said Beard, regarding Erie County officials’ decisions on contractors following the 2006 storm. “They didn’t leave a paper trail we could audit.”

That being the case, there’s no way of knowing if the county complied with federal regulations that require preferences to be given to minority contractors and that bidding be competitive, Beard said.

Yes, localities can rely on local contractors.

“You still have to bid the contracts, consider minority firms, make sure the pricing was reasonable,” he said.

Beard made his comments after The News reported on the audit and local officials, including County Executive Mark C. Poloncarz, ridiculed it as a sloppy piece of work that ignored the laws allowing the county to favor local contractors.

Told of Beard’s comments, Peter Anderson, spokesman for Poloncarz, said: “That was not something we knew about. That was not something in the audit that was sent to us.”

Joel A. Giambra, who was county executive at the time of the storm, was equally perplexed.

“I don’t know what this fellow’s talking about,” Giambra said. “Did he say this was in the audit?”

Giambra also lashed out at the allegation that the county’s records of how it spent the disaster aid are incomplete.

“They’re not in my basement,” he said of the records. “I didn’t do the procurement. It wasn’t my job.”

The inspector general’s audit has caused concern in Erie County because if the county is forced to repay the federal disaster aid, it would severely deplete its emergency fund.

That being the case, Sen. Charles E. Schumer is asking W. Craig Fugate, administrator of the Federal Emergency Management Agency, to meet with him and Poloncarz in the senator’s office to discuss the matter.

“After the storm, Erie County officials worked in good faith with FEMA to respond to the crisis, and it makes no sense whatsoever to hammer them now for doing the right thing responding to the storm,” said Schumer, D-N.Y.

Rep. Chris Collins, a Republican who succeeded Giambra as county executive, agreed.

“You never do full competitive bidding in an emergency situation,” said Collins, noting that the county instead maintained a bid book that included the standard prices contractors charged in such situations.

“You can’t have 45 days of bidding to clear the roads,” he said.

Collins said he was surprised to hear Beard’s take on the audit, as was Rep. Brian Higgins, D-Buffalo.

“Doesn’t it sound like he’s moving the goalposts a little bit?” Higgins said.



email: jzremski@buffnews.com

9.8% tax levy rise looms as Clarence school budget evolves

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Clarence Central School District residents would face a 9.8 percent increase in the tax levy for the 2013-14 school year, under the latest version of the district’s proposed spending plan.

The final percentage could be different when voters have their say May 21. But the new draft gives insight into job cuts and other changes that are planned.

Superintendent Geoffrey M. Hicks said the amount of the tax levy increase will likely change prior to the budget vote, given that distribution of state funds is yet to come.

Those funds are expected to be finalized toward the end of this month, and Hicks said that “there is a likelihood” the district will receive additional state aid.

The latest budget draft for the Clarence district contains 30 job cuts, including 18½ teaching positions. Five of those positions stem from announced retirements.

During the budget process, Hicks has stressed cutting costs while minimizing the effect on the district’s programs and classrooms.

“In our budget, which is very tightly constructed, when you get to the point of having to reduce another 18 or 19 teachers, it becomes really difficult to do it without having significant negative impact,” he said.

Hicks noted that the draft budget plus the last two years’ adopted budgets contain a total of 90 job cuts and $5.8 million in reductions. “That’s in a $73 million budget. It’s enormous,” he said, “and there’s no way for us, after having that much reduction, to have the same kinds of educational opportunities that we’ve always had for kids. It has been diminished.

“And we really don’t feel that we can cut any more. That’s why, at this point, we’ve stopped, and the tax levy turned out to be 9.8 percent, when we got to that point of feeling that any additional reductions were going to have a significantly negative impact on the educational program at Clarence.”

If the spending plan put before voters is higher than the 3.7 percent property tax levy cap, the budget would require support from at least 60 percent of voters in order to pass; a budget within the cap would need only a simple majority for passage.

In January, Hicks outlined a $6.4 million budget gap the district was facing; with the reductions and other steps described in the second draft, the district would still face a $3.9 million deficit.

A 9.8 percent tax levy increase would mean the owner of a home with a market value of $100,000 would pay about $141 in additional property taxes.

The Clarence Tax Payers group has called for the district to go even further to control growth in expenses, including reopening the teachers contract to negotiate a higher contribution toward health care costs, and exploring retirement incentives.

The School Board has scheduled another budget workshop for 7 p.m. next Monday in the high school.



email: mglynn@buffnews.com

Sabres fall in shootout to Rangers

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NEW YORK — Nearly everything was going as planned for the Sabres. Buffalo was playing a solid road game in New York, keeping the normally raucous fans in Madison Square Garden quietly planted in their seats. The Sabres’ defense was keeping the Rangers away from goaltender Ryan Miller, making Drew Stafford’s second-period goal seem destined to be the winner.

Then Patrick Kaleta boarded Brad Richards early in the third period, turning a sedate Sunday night game into a frantic fight for victory.

The Rangers won in a shootout, 3-2, but the Sabres earned a point for the fourth straight game and left the Big Apple happy to be on a 3-0-1 run.

“We keep getting points in games, and that’s what matters,” Sabres right wing Nathan Gerbe said.

Ron Rolston has been delivering equal amounts of praise and criticism of the Sabres since taking over as interim coach. Just before the game, Rolston said he liked the Sabres’ resiliency against adversity but hoped the team could become more disciplined.

A lack of discipline led to a brief lapse in the Sabres’ resiliency — which only allowed them to show their mettle once again.

With Andrej Sekera in the penalty box for hooking early in the third period, Kaleta boarded one of the game’s marquee players, Brad Richards. Kaleta cross-checked the unaware Richards in the back, sending him crashing into the boards. As Richards crumpled to the ice in pain, the referees ejected Kaleta and gave him a five-minute major.

Kaleta couldn’t see the action from the dressing room following his penalty, but he no doubt heard it. The 17,200 fans in the Garden erupted as New York struck for two quick goals to turn a 1-0 deficit into a 2-1 lead.

“I’m glad we made them pay,” New York coach John Tortorella said. “It’s disgusting. It’s a lack of respect.”

Richards eventually left the ice on his own and returned a short time later.

“That’s just stupidity,” Richards said. “If we’re all going to look at each other’s numbers, ram each other from behind headfirst into the boards, it’s going to be a tough game to play.

“He doesn’t play hockey to begin with. It’s the same guy all the time.”

Kaleta was not in the dressing room following the game, and a Sabres spokesman said he would not comment. The right winger is expected to have a disciplinary hearing.

The Rangers needed just seven seconds to score on the five-on-three, circling the puck and setting up Derek Stepan for a tap-in with 3:35 gone to pull into a 1-1 tie. Only 43 seconds later, Rick Nash’s laser from the right circle nicked Ryan Miller’s blocker and went under the goaltender’s arm to make the fans louder.

The Sabres, though, responded before the five-minute penalty had expired. A determined short-handed effort by Steve Ott and Nathan Gerbe, who scored, tied it, 2-2, with 11:41 to play.

“That was a huge play for us to be able to bounce back and get a goal like that,” Rolston said. “After that point we got right back to our game.”

Unfortunately for the Sabres, part of their game is struggling on the power play. Boarding became a theme as Dan Girardi hit Tyler Ennis from behind to join Nash (delay of game) in the box with 54 seconds gone in overtime, giving the Sabres a five-on-three. They failed to capitalize on the two-man advantage and couldn’t strike while one man up, either.

The Sabres went 0 for 5 on the power play and are 3 for 59 in the last 16 games.

After two straight shootout victories, the Sabres lost the breakaway challenge when Nash and Ryan Callahan beat Miller and Henrik Lundqvist stopped Jason Pominville and Ennis. The Sabres then departed for Carolina, where they face the Hurricanes on Tuesday.

“Anytime you take seven of a possible eight points and you do it without having a truly successful power play,” Ott said, “hopefully the next game, once it starts clicking, then the game becomes even that much easier.”



email: jvogl@buffnews.com

Taking a wade-and-see approach

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OLCOTT – Nearly 600 hardy swimmers from across Western New York and even outside the region braved the chilly water and biting winds of Lake Ontario on Sunday for the Olcott Lions Club’s annual Polar Bear Swim for Sight to raise money for the visually impaired.

With hundreds more supporters, family and onlookers watching from the snow-covered beach and stone walls above, at least 573 men, women and children of all ages plunged through the slush on the shore and into the frigid, icy water of the lake at Olcott Beach. Some dipped only feet and legs in, while others soaked up the full treatment of water and snow up to their hair, laughing, cheering and screaming.

“It was cold,” said Jessie Van Wuyckhuyse, 24, of Hamlin. “My toes are numb right now.”

Dressed in everything from skimpy bathing suits or bikinis to sopping wet costumes of all sorts, they shrieked and hollered with excitement before they emerged, shivering in the 20-degree air temperature.

“You want to live life, and it feels great. It’s exhilarating, and it was amazing. I feel awesome,” said Brian Platter, 31, of Buffalo, a first-timer. “This is incredible. This is what Buffalo is.”

Jeff Salada of Pendleton said he came out because of “a lot of peer pressure.” The 21-year-old called the experience “shock and awe,” but said it was worth it and he would come out again.

The annual event, now in its 44th year, has attracted as many as 1,000 swimmers in some years and typically raises between $15,000 and $20,000 a year to benefit the Lions Club, said William J. Clark, chairman of the event, who has coordinated the swim for a decade.

Participants either pay $20 to enter the swim or raise additional money from family, friends, co-workers and others, earning prizes and rewards based on their fundraising.

“Cold. I knew it would be cold,” said 25-year-old Ashley Warren of Ransomville, who raised $561 as part of her plunge, her ninth. Was it worth it? “Oh, yeah!”

Indeed, while pure excitement and having fun drove some people into the water, the cause itself was important to many. Owen Cheverie, 33, of Lockport, has an 11-year-old daughter who is blind. He comes to swim every year and wore the same full-body clown costume he used five years ago.

He works outdoors, doing construction, so “I adapt to this weather.” Still, he wasn’t getting wet this year, because he leaves for Florida on Friday and said, “I don’t want to go there sick.”

Although the main dip itself was at 2 p.m., the crowd began gathering hours earlier for the festivities, as people huddled, bundled up in mostly cold-weather clothing and outlandish costumes for tailgating parties and mingling. Yellow school buses lined Ontario Street along the waterfront of the town.

“It’s fun. It’s so cold, but you feel so accomplished when you’re done,” said Kelly Shoemaker, 19, of Tonawanda, who was joined for her third annual polar bear swim by her 19-year-old cousin, Rebecca, of North Tonawanda. “You get so hyped up about it ... We’re just crazy.”

Green ruled the day in honor of St. Patrick’s Day, as leprechauns and other Irish characters milled around with Vikings, seals, bears, birds, clowns and a host of people in other get-ups. Lisa Kaczorowski, 43, a Town of Tonawanda resident, called her balloon-festooned outfit “ice wine.”

Dressed as a banana, 12-year-old Ethan Knott of Olcott conceded that “I’m just insane and I want to go in.”

Chris Smith, 34, of Niagara Falls, was decked out as a “yeti,” or the Abominable Snowman of the Himalayas.

At about 1:30, as the crowd grew along the stone walls and fences, and the first swimmers gathered on the snow-covered beach, five heavily garbed rescue personnel waded into the water, protected from the cold by their gear. With a safety rope stretched across the small stretch of water, they stood guard both to keep anyone from venturing too far and to quickly respond if anyone needed help.

“We’ve been doing it for eight years, and by now, it’s kind of a tradition,” said Stephanie Austin, 25, of Newfane, who stood shivering on the beach before the swim with her cousin, Stacey Austin of Burt, and two friends. But “I think we’re going to hang up our hat and throw in the towel after two more years.”

The Polar Bear Queen Contest took place on schedule at 1:45, followed five minutes later by swimmers under age 18 entering the water first. The masses followed at 2. “It was perfect, just too lumpy,” said Mike Seick, 41, of Niagara Falls, who’s been doing it for 20 years, and was decked out in purple, green and yellow as a Mardi Gras king.

“It was pretty cold, a little too chunky,” agreed Susie Geiger, 40, of Medina, who’s done it for 12 years. “The cold’s OK, but getting in through the chunks, it was a little slippery there. But once you’re numb, it’s OK.”

This year, the turnout was diminished by the cold weather and ice, but Clark said he still expects to raise $15,000. “It’s good for a day like this,” he said. “It’s very cold. The wind is biting. The ice on the lake is very thick. So for a day this cold, that’s a good number. ... But certainly, if the weather wasn’t quite so severe, we’d have more people.”

Clark said about half the participants are “repeat swimmers,” which helps ensure the numbers. “They are people that are committed to this process, to this cause. They come back year after year and have fun, which is strange to some of us,” he said. “But it’s a fun day. A lot of people see this as a tradition.”



email: jepstein@buffnews.com

East Aurora, Holland considering football merger

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Holland High School may finally get a football team – but only if its athletes line up beside their counterparts from East Aurora High School.

Holland is too small to support a team, and East Aurora’s enrollment is dropping, so some think it makes sense for the neighboring districts to team up.

The two districts have applied for a combined football program, filing necessary paperwork with the Erie County Interscholastic Conference and Section VI.

It would be a similar arrangement to what now exists with other local districts that have merged or combined hockey teams.

“It’s only for the sport of football,” said Matt Adams, Holland’s athletic director.

Until now, East Aurora had resisted a suggested merger because doing so would have bumped it up to Class A – putting it in competition with schools almost twice their size, according to Fred Thornley, East Aurora’s athletic director.

“That was the big stumbling block,” Thornley said.

But everything changed in late January, when the executive committee of the New York State Public High School Athletic Association approved a revision to its regulation about combining teams.

Instead of counting 100 percent of a district’s enrollment in ninth through 11th grades to determine the school’s competitive class, a graduated scale will be used. For East Aurora, which currently competes in Class B, that percentage is 30, according to the association’s website.

The change, a two-year pilot program beginning with the 2013-14 school year, is a new wrinkle in the not-so-new practice of combining students from districts to field athletic teams.

In 2010, the Western New York Girls Varsity Ice Hockey Federation was born, featuring combined teams, including Orchard Park/Frontier and Sweet Home/Amherst. The Monsignor Martin Association’s team represents several Catholic schools.

Both the ECIC and Section VI must approve the proposed football merger, according to Ken Stoldt, co-chairman of the Section VI Football Federation.

The two school boards also must approve it.

The East Aurora School Board is expected to talk about the plan Wednesday, and board member Eric Sweet says it’s important to consider the change.

At a January board meeting, Sweet – whose son played football for East Aurora – noted that with declining enrollment at East Aurora, it may become increasingly difficult to field a varsity football team without raiding the junior varsity ranks.

While revisiting the issue during a meeting in February, he said, “This is a very physical sport, and when there’s a shortage of kids, they start playing both sides of the ball. Fatigue gets extreme, and the injury risk increases.”

While the details have yet to be worked out, money was – and remains – a point of contention for Holland, which has never had a football program. The closest it came was in 2000, when the School Board included funding in the annual budget referendum. But district voters soundly defeated it, and years of contentious debate followed.

During last week’s board meeting, Vice President Ronda Strauss said that if the board approves the combined program, it would have to be without financial help from the cash-strapped district.

“I’m excited about it,” said Adams, Holland’s athletic director. “As long as we can make it work financially, I think it would be a very wise investment.”

Meanwhile, Holland Raiders Youth Football and Cheerleading, which views the merger as an opportunity for its participants to progress from league to high school play, is offering to help raise money for the program.

“We haven’t been asked to do anything at all so far,” said Brian D. Jones, president of the Raiders organization. “We wanted to make our School Board aware that we do have adults willing to facilitate making this happen.”

The Raiders organization is looking to hold fundraising activities that could benefit the program.

“We are not going to fund it ourselves,” said Jones, who emphasized that he doesn’t want donors to the Raiders organization worrying about their money going elsewhere.



Southtowns Correspondent Eileen Werbitsky and News Staff Reporter Karen Robinson contributed to this report. email: jhabuda@buffnews.com

Swindled clients get $164,564 from lawyers’ fund

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Two clients of disbarred Niagara County attorney Roger J. Niemel and a client of late Buffalo attorney Richard L. Baumgarten have been awarded a combined $164,564 through the New York State Lawyers’ Fund for Client Protection.

Niemel, 71, was sentenced by Niagara County Judge Sara Sheldon Farkas to two years in Niagara County Jail on his guilty plea to grand larceny and forged-instrument charges for stealing $153,264 from a Wheatfield man’s estate and for his theft of $7,000 from the attorney escrow fund he had maintained for a Grand Island woman, according to Timothy O’Sullivan, spokesman for the fund.

A Buffalo husband and wife were reimbursed $4,300 for money they paid Baumgarten for legal fees in a criminal appeal deemed faulty.

Suspended from legal practice in 2002 for neglect and failure to refund unearned legal fees, Baumgarten was reinstated to the legal practice in 2003 and was considered an attorney in good standing at the time of his death in 2007, O’Sullivan said.

These payments were among 46 reimbursements totaling $1.5 million to clients of 22 lawyers in 11 counties, including nine in New York City and seven on Long Island.

Since the State Court of Appeals in Albany created the Albany-based Lawyer’s Fund in 1982, it has reimbursed more than $163.5 million to more than 7,254 clients defrauded by 1,042 attorneys, O’Sullivan said.

The fund’s reimbursements come from registration fees paid by the state’s more than 271,000 attorneys.



email: mgryta@buffnews.com

U.K. soccer lifeline from Rich frays as club gets tangled in ropes of debt

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Northeastern England’s Bedlington Terriers Football Club gained international attention when Robert E. Rich Jr., billionaire owner of the Buffalo Bisons baseball team, sponsored and assisted the Britons to the tune of more than $100,000 just over two years ago.

But the soccer team is now on the ropes, according to a creditor’s court filing alleging that it is owed the equivalent of more than $22,525.

The Terriers, who have a 64-year history in the gritty, working-class community of about 15,000, are on the verge of being “winded up” – a British legal term pertaining to forcing a company’s liquidation – after a nearby company, Trystar Construction Ltd. of Choppington, accused the club of failing to repay a loan.

Under the law in England, creditors can “wind up” a company by petitioning the court and proving that it owes “more than 750 pounds [about $1,126 U.S.] to one or more creditors” and that the company can’t repay the debt. If the “winding up petition” is successful in the court, the company is liquidated, and creditors are paid from whatever proceeds are left.

Media reports in the United Kingdom say Rich intimated through his lawyers that he would remain on the sidelines during the ordeal instead of rescuing the longtime financially floundering club, which competes in red jerseys emblazoned with the Rich’s corporate logo across the front.

“Bob Rich is very supportive and sympathetic. But he’s already told us through his solicitors that he’s not going to get involved,” Ronan Liddane, chairman of the soccer club, recently told the Newcastle, England-based Evening Chronicle. “He’s very neutral. It’s his decision.”

It’s a position that Rich took in a June 2011 interview with The Buffalo News shortly after he contributed more than $100,000 in sponsoring the team, as well as resodding the club’s home field and buying it an electronic scoreboard – the first of its kind in the league of nearly two-dozen clubs and something Trystar apparently seeks in the club’s liquidation.

Rich even brought members of the Terriers to Buffalo in a 2011 expenses-paid trip to visit the area and play in exhibition matches.

Around that time, Rich told team members that he would “give them the tools to help themselves” but that they must be self-sustaining.

“I have pointed out to them all the way along that I am not going to be their fairy godfather; I am not going to be Daddy Warbucks coming in here,” Rich said then.

Dwight M. Gram, Rich Products’ vice president for communications, told The News that the company is aware of Trystar’s “wind up” petition in the U.K. court and the Terriers’ financial conundrum.

“We understand they are struggling financially, and we hope they resolve their issues in a timely manner,” Gram said. “Rich’s will continue to be a lead sponsor for the club through our U.K. operations, as we have since 2011.”

In a recent statement on the soccer club’s website, Liddane stated that the loan was taken by its previous chairman.

“When I took over as chairman, I was assured on three occasions that there was no debt at the club,” Liddane stated. “When this ‘loan’ came to light. I tried to negotiate the situation with [Ritchie Wharton of Trystar Construction Ltd.], but his main focus was on winding up the club and taking the scoreboard, which is not ours, but Mr. Bob Rich’s property.”

Liddane further stated that the club’s “legal team” was negotiating with Trystar and was “confident that the matter will be resolved to everyone’s satisfaction” and that it would continue “playing football.”

The club’s dilemma even reached the floor of the House of Commons last month when a member of Parliament drew attention to the matter and the financial crunch experienced by similar smaller clubs in the U.K.

The Terriers are 19-13-7 in their season that began in early November. They have 15 games left on a schedule that runs through at least April 27, according to the club’s website. The club played to a 0-0 draw at home Wednesday in what a local newspaper called “a drab affair.”

“With an impending winding up order,” northeastern England’s News Post Leader reported in its Thursday article about the match, “it is possible this was the last game for Bedlington Terriers, and if it is, it ended on a dull note.”

A scheduled Feb. 22 hearing on the “wind up” in the High Court of Justice, Newcastle District, was adjourned. The date to which the matter was adjourned remained unclear.



email: tpignataro@buffnews.com

Enemies in high places – Paladino vs. Higgins

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Every day for the last six months, approximately 37,000 commuters on the southbound Niagara Thruway get an in-your-face dose of one of the most bitter and deeply personal feuds in the history of Buffalo politics.

That’s where developer Carl P. Paladino has targeted his most recent opponent, high atop a dilapidated building he owns on Scott Street. It features a marionette-like Rep. Brian Higgins with House Minority Leader Nancy Pelosi.

“That’s my #1 boy,” the caption reads.

The billboard stands as the most public manifestation yet of the vicious feud between two South Buffalo stalwarts who are among the most recognized political figures in New York State.

Thruway gawkers pondering the sign must wonder what it’s all about. Why would Paladino go to such lengths to humiliate a U.S. congressman?

There was a time when Paladino and Higgins called each other friends. In fact, they are related by marriage; their wives are first cousins.

In recent weeks, however, the billboard has released a pressure cooker of animosity building

between the two since even before Paladino’s unsuccessful Republican candidacy for governor in 2010.

Now, neither is holding back.

“I don’t respect him, his politics, his demeanor nor his personality,” Paladino said recently, citing Higgins’ “arrogance.”

“I saw in him an obstinacy; an attitude that, if it’s not Brian’s idea, it’s not a good idea,” he added. “Given my nature, I would point out these things to him.”

After Paladino decided to “point out these things” to millions of motorists traveling the road over the past months, Higgins also unleashed. Some are shocked that the normally serene congressman, who prefers discussing Irish history to street politics, is even reacting.

But he says he’s had enough of Paladino.

“Carl is the worst kind of coward this community will ever know,” Higgins said. “He hides behind his dirty money and sits in his Ellicott Square cave spewing his venom and hateful emails every day. He’s pathetic, disgraceful and a broken man.”

Higgins characterizes his former friend as a “street punk,” a “bully,” and Buffalo’s “chief bloviator.”

“Carl has all the moral arrogance without the moral integrity,” Higgins said. “It’s very, very sad what’s become of him.”It wasn’t always this way.

Both recall happier days when friendly banter over politics or neighborhood news enlivened family gatherings. The two, after all, married a couple of “Hannon girls” from the neighborhood – Mary Jane married Higgins and Cathy married Paladino. The cousins, according to those who know them, have always been close as part of a prominent South Buffalo family. So it was natural that their husbands became friends.

“They were more than close, they were married into the same family,” James P. Keane, the former South Council member and deputy county executive, said of Higgins and Paladino.

“They were family close; that kind of close,” he added.

Friendship seemed suited for Higgins and Paladino, both products of blue-collar families who worked hard for their success.

Paladino, 66, grew up in Lovejoy and graduated from Bishop Timon High School and St. Bonaventure University. He is the son of a city worker and grandson of Italian immigrants and he made millions as a downtown real estate developer after Syracuse University Law School.

His empire now includes a string of suburban hotels and office buildings he leases to New York State.

But he is also an outspoken politician whose conservative views catapulted him into the national spotlight three years ago when he entered the GOP race for governor.

After shocking the state’s Republican establishment with an overwhelming primary victory, his brash ways and pugnacious nature seemed to dim his appeal in the general election. Even though Paladino spent $4.1 million of his own money, Democrat Andrew M. Cuomo scored a landslide 61 to 34 percent win.

New York City tabloids labeled him “Crazy Carl.”Higgins, 55, hails from a similar background.

He is the grandson of Irish immigrants and son of a teacher and the late South Council Member Daniel J. Higgins Sr. – a former bricklayer. The future congressman graduated from South Park High School, majored in history and economics at Buffalo State College, and earned a master’s in public administration from Harvard University.

But he has always seemed destined for public life. He was South Council member, chief of staff to the Erie County Legislature, member of the Assembly, and now sits in the House of Representatives.

Keane, the former deputy county executive from South Buffalo, said he has “great respect” for both men, partly because of their commitment to the community.

Paladino, he pointed out, has sponsored tuitions for deserving kids to his alma maters, while many say he quietly and often assists families in need.

“Those things count,” Keane said.

Early on, Paladino helped Higgins launch his political career. The real estate developer gave Higgins $9,350 in contributions during his days in the Common Council and Assembly, according to campaign finance records. He even hosted a fundraising event for Higgins’ 2004 congressional bid at his Orchard Park farm.

And Paladino claims to have partially financed Higgins’ Buffalo Niagara Partnership scholarship to the Kennedy School in 1995-96, although Higgins and Partnership officials deny he had anything to do with it.

“I had some faith in him; I thought he was trying to do the right thing,” Paladino said of Higgins.

But the situation changed once Higgins went to Congress.Perhaps the first issue dividing them was abortion.

While in the Assembly from 1999 to 2004, Higgins consistently voted pro-life. But as a candidate for Congress in 2004, he switched to a strong pro-choice stand, much to his former supporter’s disappointment. The relationship was beginning to deteriorate.

Higgins notes that Paladino was fully aware of his changing views but still contributed to his first congressional campaign.

The already strained relationship reached the breaking point when Higgins embraced President Obama’s health care initiative – anathema in Paladino’s eyes.

“I recognized that Obamacare was being pushed quickly and unethically ... and the first guy on the bus was Brian Higgins,” Paladino said. “I wrote him a memo and gave him all the logic. But on the personal side, I was recognizing an arrogance that was out of character for him.”

Paladino invited Higgins to his Ellicott Square office to discuss their differences at about the time Obama’s health care proposal was debated in 2009. And though political staffers often tape record conversations with reporters, Paladino was more than miffed when a Higgins aide recorded him. The congressman, he said, told him he had to “protect myself.”

“I found that insulting,” Paladino said.

Just about everyone close to the two men pointed to Higgins’ support for Obama’s health care plan as the turning point for Paladino.

“If he thinks the government is forcing him to do something ...,” Keane mused. “Carl’s a CEO. He doesn’t like being told what to do, particularly by the government.”

Michael R. Caputo, the East Aurora political consultant who served as Paladino’s campaign spokesman in 2010, said the developer seriously contemplated a congressional challenge to Higgins that year before he was persuaded to run for governor instead.

Obama’s helath care plan was “the straw that broke the camel’s back,” Caputo said.

“He was absolutely passionate about the ravages of Obamacare,” the former campaign aide said. “The two of them talked a lot about it, and Carl said when they talked, that this was a major divisive issue.”

Another confidant, tea party activist Rus Thompson, said he watched Paladino grow increasingly disenchanted with Higgins on many levels.

“He feels Brian has really turned on his own core values for political expediency,” he said. “And it hurts Carl.” Thompson added that Paladino deems Higgins guilty of “grandstanding” on every issue associated with the Buffalo waterfront.

But one incident may have forever broken a friendship and transformed the pair into archenemies. That came just after Paladino announced his candidacy for governor a little over two years ago.Paladino’s 2010 gubernatorial campaign seemed doomed after a Buffalo website revealed his practice of emailing racist and pornographic jokes to friends.

At the time, Caputo (who has since broken with Paladino) told reporters he had been approached by a Higgins “emissary” who promised “everything would come out” if Paladino ran for governor.

Though he sent jokes to many friends on his email list, Paladino then and now blames Higgins’ staff for the leak.

“That was the end,” Paladino says now. “I knew he did it. And it only caused more anguish in the family than we already had.”

Thompson said the Paladino campaign engaged investigators to track the email trail.

“So we know where it came from,” he said.

Higgins denies that he or his staff leaked the emails, pointing out that Paladino’s email list included dozens of people who could have released the jokes.

Even before the email incident, Paladino claims Higgins threatened to use his influence to scuttle renewal of the FBI’s lease of a building he co-owns behind City Hall. He said Higgins told business associates that unless Paladino “got off my back, the lease won’t be renewed. Make sure the message is clear to him.”

One source, who asked not to be identified and whom Paladino says witnessed the conversation, does not recall the incident. But another person present for the conversation, former Buffalo Sabres President Larry Quinn, confirmed that Higgins made the remark.

But Quinn said he did not believe then or now that the congressman was serious.

“Brian got mad and said that, in anger,” Quinn said. “I didn’t take it seriously, and it didn’t mean he would really do it.

“It would be a shame if people took it for anything else than a guy blowing off steam, which we all do,” he added.

Higgins said the incident “may have been a conversation Larry and I had. It is what it is.”

“He has not advanced anything to say ‘here is rock-solid evidence he did this thing,’ ” Higgins added.

The congressman said Paladino should be held just as accountable for the many controversial comments he has made in public.

“It’s not OK for him to insult gay and lesbian people in Buffalo or a professional woman at a public meeting,” he said. “I think he’s a creep, a punk, and a coward.”Fast-forward to Paladino’s Thruway billboard, which at one time featured an “enemies list” skewering everyone from Buffalo Niagara Partnership President Andrew J. Rudnick to Assembly Speaker Sheldon Silver to former News Publisher Stanford Lipsey. Paladino has never shied from expressing his feelings.

Still, he has recently demonstrated he can repair previously broken relationships – such as with Mayor Byron W. Brown.

A mellow Paladino showed no animosity after the city rejected his proposal for a Webster Block commercial complex in favor of one submitted by the Buffalo Sabres. And a year later, the mayor says his administration will now support Paladino’s new hotel and commercial complex at Erie Basin Marina – pegged at $75 million.

The congressman points to his own support of Brown as the root cause of his Paladino problem.

“That’s the irony in all this,” Higgins said. “Now he’s cozy with the mayor and in exchange is doing business with the city – which is fine.”

Paladino, meanwhile, attended a recent Brown fundraiser after years of animosity, and said he will not support a Brown opponent in this year’s mayoral election as in the past. Witnesses report that Paladino even gave one of his trademark “bear hugs” to the mayor at his fundraiser, and that Brown – for the first time ever – attended Paladino’s famous Christmas party in December at Ellicott Square.

But it appears no such reconciliation lies in the future for Paladino and Higgins.

“No, I don’t expect that,” Higgins said. “I’m not interested in a relationship with people like that.”

The Paladino camp expects little on that score either.

“I would like to see it, but I honestly don’t know,” said Thompson, the tea party leader. “It goes very deep.”

Higgins labels his rival hypocritical for railing against government while renting his properties to New York State for “big money.”

And he delights in pointing out that the structure hosting the “silly billboard” is deserted, dilapidated and covered with graffiti.

“Carl has a beautiful family, both immediate and extended, and I feel sorry for them,” Higgins said. “He is pathetic.”Back in South Buffalo, the tension sometimes overflows, even if life goes on.

Last week, Paladino announced he will run for the Buffalo Board of Education this year in the South District. Voting records show that in the 2010 gubernatorial race, the South Council District was the only city district that Paladino carried.

And he won big, by a 2-to-1 ratio.

“Isn’t that quite a statement?” Keane said. “That just shows how much anger and frustration there was.”

Still, Keane says he is saddened by a dispute between two men who by all rights should be working together. The Niagara Thruway billboard now adds a new dimension to the feud, and he calls Paladino “out of line.”

“In general, people are not even aware of it,” Keane said of South Buffalo’s reaction to the feud. “But among politically connected people or among those who know them both, it bothers them. They wish it would go away.”

Paladino, who often hints at supporting a Higgins congressional opponent, doesn’t see any chance for reconciliation either.

Reapportionment, he acknowledged, handed Higgins a district that appears invulnerable to a Republican challenge.

“He’s so lucky a judge gave him the perfect district,” Paladino said, hinting at only one remaining possibility. “Until a better Democrat comes along.”

And the family gatherings? They are now a bit awkward.

“We’ve been at events in the same room,” Paladino said of Higgins, “but he generally leaves right away.”



email: rmccarthy@buffnews.com

Driver charged with aggravated DWI after arrest on Grand Island

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Erie County sheriff’s deputies charged a 28-year-old man with aggravated driving while intoxicated early Monday morning, saying he had a blood-alcohol level more than twice the legal limit.

Deputy Kristin Rozycki stopped a vehicle for speeding at about 12:35 a.m. Monday on East Park Road in Grand Island. She arrested Jeremy Roberts for DWI, and a breath test later revealed a blood-alcohol content of 0.20 percent, according to police reports.

No peace for residents near bridge

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Matthew Westerholt’s question is simple: What’s going to end up in his backyard?

Westerholt, 27, awoke two Saturdays ago to the sound of demolition crews preparing to tear down eight houses on Busti Avenue behind his Columbus Parkway home.

He left for work at 10 a.m. By the time he got home at 4, the houses were gone. All that was left were piles of broken beams, chalky bricks and crooked trees.

The Peace Bridge Authority wasted no time after a federal judge lifted a restraining order against demolishing the houses, moving in wrecking crews and knocking down the houses in less than 24 hours.

The agency says it will landscape the Busti strip. Beyond that, the future is unclear.

“The certainty of any plaza expansion, it just can’t be given,” said Matt Davison, a spokesman for the Peace Bridge Authority.

The way Davison explains it, the agency is at the mercy of federal budgets and dried-up border funds. Since a decade-long process to vet a new bridge was scrapped, the authority has refocused its efforts on scaled-back renovation projects mostly within its existing footprint.

But there’s no question that dreams of an expanded plaza and duty-free shop persist and that the land on Busti and the nearby vacant Episcopal Church Home would play a role. The governor even swooped into town last summer to nudge a plaza expansion forward with an announcement of a preliminary agreement to transfer part of Busti Avenue to the bridge authority.

And still, the Peace Bridge Authority is reticent about details of such a plan.

“We have a bunch of different ideas, some that we’ve put on paper, some that we haven’t, in the hundreds, almost, about what could be done over there,” Davison said. “But no plan has ever been approved by our board of directors, which would be the first step toward us actually starting an environmental review, taking a plan out to the public and really announcing it.”

It’s a problem that’s plagued neighbors of the Peace Bridge for decades. How do you plan for the future when the future is anything but certain?

Westerholt doesn’t ever remember a time when uncertainty didn’t hang over his tree-lined neighborhood. He grew up on the block where he is now raising his own children and said it feels like he’s heard “a million plans” for the bridge in his lifetime there.

Now that the Busti houses are down, the biggest question for Westerholt is the health impact of any future plan to expand the bridge plaza.

“What are they going to do with this open space now?” Westerholt asked, “And am I going to have trucks in my backyard?”

A block away, Esther Alessi remembers her mother and her aunt going to meetings about the future of the Peace Bridge in the ’80s. Now, it’s Alessi and her husband who live in the Victorian on Busti that her grandparents moved into in the late ’30s.

Last summer, they thought about selling, but only four people came to look at the property in six months on the market. It’s a tough sell when you can’t say for certain what will be built down the street.

“I’m hoping whatever happens is a plus for our neighborhood,” Alessi said.

Meanwhile, questions left unanswered will continue to take their toll.



email: djgee@buffnews.com

Two arrested in Jamestown group attack and stabbing

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Jamestown police have made two arrests in a group assault late Sunday night that left one man stabbed in the knee and struck with a bottle.

Police officers responding at about 11 p.m. to an assault near the Charlestown apartments, on Charles Street, learned that the victim was meeting some friends in the area when he was attacked by some individuals in the group. Besides being assaulted, the victim also was robbed of some money before his attackers fled the area, police said.

Based on descriptions of the assailants, police located and arrested Malek A. Morley and Kyle R. Senear, both 18, according to the police report. They both were charged with first-degree robbery, assault and conspiracy.

Police still are looking for other individuals involved in the attack.

Orleans County officials investigate apparent homicide

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Orleans County sheriff’s officials investigators early Monday afternoon remained at the scene where a woman’s body was found at mid-morning, after she apparently was the victim of a blunt-force-trauma homicide.

A school bus driver reportedly spotted the body of the woman, believed to be in her mid-50s, at about 7 a.m. on Oak Orchard River Road in the Town of Carlton.

Reports from the scene indicated that sheriff’s officials already have a possible suspect in custody, but that could not be confirmed by authorities.

Holimont sells 17 lots for $2.73 million

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Holimont Ski Area generated $2.73 million from auctioning 17 single-family residential lots at the Ellicottville private ski area, said Cash Cunningham, whose firm oversaw the process.

Holimont used the auction to bring in funds to pay for infrastructure development at the WestMont Ridge, a new development above a planned lodge and ski lift.

Holimont had actually put 31 of the “ski-in/ski-out” lots up for auction, but it ended the process after raising enough money to cover the planned infrastructure costs, Cunningham said.

“Their hope was to get that done with as few lots possible,” he said.

Cunningham declined to reveal the range of prices bidders paid for the lots, but the auction averaged about $160,000 per lot. The sold lots ranged in size from 0.31 acres to 0.59 acres, and will have road, water, sewage and gas access, once that work is completed.

The auction attracted interest from area buyers, as well as from Southern Ontario and neighboring states. One of the buyers was from North Carolina, Cunningham said.

Holimont on its website says the 14 lots which were not sold at the auction are available for purchase at a “pre-constructed” price of $160,000, and that the price of the lots will increase once the infrastructure construction is finished.



email: mglynn@buffnews.com

Falls man reports $3,800 damage to vehicle

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NIAGARA FALLS – Heavy damage was reported in a vandalism in a parking lot at Packard Court, police reported.

The victim said sometime between 10 p.m. Saturday and 7:30 p.m. Sunday someone entered his 2005 Ford Freestyle, breaking the driver’s side window, then slashed all four leather seats several times. All four tires were slashed and the entire vehicle was “keyed” and a GPS unit was taken from the glove box, the victim told police. Total loss and damage were estimated at $3,800.

The victim said he had no enemies and was unsure who damaged the vehicle.

Photos of the week

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From the hardwood to the harbor, a glimpse of some of the best things our staff photographers captured over the past week.

Audio: Kaleta says ‘trying to do my job’

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By John Vogl

RALEIGH, N.C. -- With a disciplinary hearing coming at 3 p.m., the Sabres' Patrick Kaleta declined to get into specifics regarding Sunday's boarding penalty on the Rangers' Brad Richards. But he said this afternoon he feels like a "bag of garbage" for taking a penalty that led to two goals in the Sabres' 3-2 shootout loss, and he had nothing to say to Richards.

"I’m going to keep it as limited as I can, but I’m just sorry for the position I put the team in trying to kill that penalty," Kaleta said in the team hotel. "I feel for that, for putting the penalty killers out there and them getting the two goals. It makes me feel like a bag of garbage after seeing that.

"But I’m glad that our team responded with that. I’m proud of it and just going to go forward."

The Sabres were a man down when Kaleta cross-checked Richards in the back, sending one of the NHL's marquee players crashing into the boards. Kaleta was given a five-minute boarding major and ejected from the game.

"I was on the penalty kill, so on the penalty kill you’re playing a zone, you’re not really supposed to finish check, etcetera," Kaleta said. "I just play hard, and I was on the penalty kill trying to do my job."

The Rangers railed against Kaleta following the game, calling the hit "disgusting" and "stupidity" while condemning the right winger for repeated infractions through the years. Kaleta has made a point during the past two seasons of trying to clean up his image.

"I have changed my game," Kaleta said. "I know I have. I know players have seen that, and even referees have came up said, ‘Hey, I respect what you’ve done so far. As long as you keep showing that respect towards us, then we’ll respect you.’

"I loved hearing that and know that they’ve seen a change in my game, so I know I’ve changed my game."

Still, the right winger is in line for a suspension of at least one game and possibly five when he talks with discipline czar Brendan Shanahan over the phone today.

He had nothing to say to Richards, though, taking an eight-second pause after being asked if he had a message for the recipient of the hit.

"I’m fine for right now," Kaleta finally said.

Patrick Kaleta

HealthNow profits soar

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HealthNow New York, the region’s largest health insurer, said Monday that its profits for last year soared nearly eight-fold, as a jump in revenues and slightly lower administrative expenses offset an increase in medical costs for members.

The Buffalo-based parent of BlueCross BlueShield of Western New York reported net income of $31.5 million, up sharply from $3.94 million for 2011, when the insurer suffered a major increase in medical expenses from 2010.

That’s still well below the prior two years, however, when the company earned $52.69 million and $62 million, respectively, in 2010 and 2009, but it’s 24 percent higher than $25.41 million in 2008.

Total revenues rose, up 2.6 percent to $2.46 billion from $2.397 billion. That’s the highest level of revenues in at least five years, and may be a company record.

“The financials reflect rigor and discipline, particularly in the midst of an environment with heavy regulation and the mandates from health care reform,” said Steve Swift, the company’s executive vice president and chief financial officer. “Our reserves are appropriate, our administrative costs are well below the national average and in spite of medical costs increasing faster than the rate of inflation, we maintained reasonable rates for our members.”

As a nonprofit, the insurer’s revenues are reinvested in the company and added to reserves – its capital and surplus that is used to cushion unexpected expenses and ensure its ability to pay claims. HealthNow’s reserves rose 6.9 percent to $565.3 million.

The weak performance a year earlier was reflected in the company’s compensation for its top executives, especially President and CEO Alphonso O’Neil-White. His total pay fell 32 percent to $1.1 million, as his bonus and other compensation was slashed 70 percent from $759,673 to $224,807. His base salary, which is contractual, rose 2.9 percent to $872,000.

O’Neil-White last month announced his intention to retire after a new CEO is chosen. He has been president and CEO since 2003, and joined the company in 1996l.

HealthNow, like many companies, sets its executive pay based in part on compensation levels at similarly sized insurers, as well as in other industries in markets similar to those in Western New York, Albany and Philadelphia, where it maintains significant operations. The bonus is considered “at risk” and is based on individual and corporate performance in the prior year, including measurements of quality, strategic goals and financial results.

Health insurers have been struggling for many years to maintain and even boost their earnings in the face of a difficult business climate and immense public pressure from consumers, regulators and politicians to tighten expenses, rein in excessive executive pay and limit rate hikes or even reduce premiums. It’s particularly hard to predict medical expenses for members, which can be lumpy from year to year.

Under New York state law, health insurers operating in the state must report their yearend financial results and executive compensation by March 31 of the following year. Independent Health Association spokesman Frank Sava said the Williamsville-based insurer, the region’s No. 2 carrier, will not report its results until after that time.

HealthNow said its net underwriting gain, or profit after medical and operating costs, swung back to a profit of $25.58 million from a loss in 2011 of $17.62 million. That’s a 1 percent profit margin. However, that’s still lower than the prior three years, when the underwriting gain totaled $26.4 million, $38 million and $47.78 million, respectively.

Total medical and hospital expenses for members rose just under 1 percent to $2.19 billion last year, as the company spent 89.1 cents of every premium dollar on member costs. Claims adjustment expenses rose 9 percent to $51.3 million. Administrative expenses, or overhead, fell less than 1 percent to $190.98 million. The net investment gain fell 3.7 percent to $32.98 million.

The company’s total membership continued to fall, as it has done for each of the last five years, as the company has seen a “steady increase” in self-funded employers who pay for their own claims. HealthNow reported 473,249 members at the end of 2012, down 2.8 percent from 486,675 in 2011, and down 14 percent from 553,149 in 2008. Self-funded group members, and individual BlueCard members, are not included in the membership totals, but the company said they total another 300,000 members across all lines of business.

Among other top officials:

• Cheryl Howe, executive vice president of operations, earned a total of $576,354, including a $469,693 salary and $106,661 in additional compensation. Howe has been at the company for 26 years.

• Stephen Swift, executive vice president and chief financial officer, received $471,763 in all, including a $437,000 salary and a $34,763 bonus. Swift has been with HealthNow since 2009.

• The company’s 12 board members received a total of $616,550, up 20 percent from $515,300, as HealthNow added three new directors in the last year to better represent its geographic diversity and broaden its board committees.

email: jepstein@buffnews.com
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