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Spitzer's fall lifts Paterson to governor's post

BY JAMES T. MADORE | james.madore@newsday.com

10:38 PM EDT, March 12, 2008

ALBANY - Gov. Eliot Spitzer's stunning fall from grace ended in his resignation yesterday, setting the stage for Lt. Gov. David Paterson to become the state's first black chief executive, effective at noon Monday.

Spitzer's resignation was not tied to a deal for leniency, federal prosecutors said.

While Spitzer used a 3-minute speech in Manhattan to end his once-promising political career, Paterson remained here in his suburban house, speaking by phone with legislative leaders and others about how to move state government beyond the sex scandal that doomed Spitzer after only 14 months in office.

Aides said Paterson's priorities were putting his own staff in key gubernatorial jobs, negotiating a budget for 2008-09 before the April 1 deadline and reassuring shellshocked residents. The Senate and Assembly seemed to agree, moving to adopt budget proposals so that negotiations on a final spending plan can begin next week.

"Like all New Yorkers, I am saddened by what we have learned over the past several days," said Paterson, 53, referring to allegations that Spitzer frequented high-priced prostitutes and has been ensnared in a federal investigation. " ... It is now time for Albany to get back to work as the people of this state expect from us."

Michael Garcia, the U.S. attorney in Manhattan who is prosecuting the Emperors Club, said, "There is no agreement between this office and Gov. Eliot Spitzer relating to his resignation or any other matter."

Spitzer could be charged with a felony such as money laundering or avoiding federal currency rules in his payments for prostitutes, said several sources.

Paterson's decision two years ago to leave his job as Senate minority leader to run with Spitzer reassured parts of the Democratic Party establishment who were skeptical of the brash attorney general. The Spitzer-Paterson ticket won a historic 69 percent of the vote in November 2006.

The pair made history again yesterday, though far from joyously.

Paterson, who is legally blind and grew up in Hempstead, will become only the nation's third black governor since Reconstruction. Only one other New York governor, in 1913, has left amid scandal, and Spitzer's departure was more sudden and shocking, given the lurid details.

He acknowledged as much, saying, "I've begun to atone for my private failings. ... I am deeply sorry I did not live up to what was expected of me."

Spitzer's privileged world as the son of a wealthy real-estate magnate was turned upside down last weekend after he learned federal authorities had recorded his conversations arranging for the Emperors Club VIP to send a prostitute from Manhattan to a Washington hotel where he planned to stay on Feb. 13. Court papers reveal that an individual, identified only as Client 9, haggled over late payments for previous prostitutes and enjoyed sex acts, possibly unsafe. Client 9 is Spitzer, according to federal authorities.

Spitzer, 48, married with three teen daughters, didn't directly address the scandal yesterday. "Over the course of my public life I have insisted, I believe correctly, that people, regardless of their position of power, take responsibility for their conduct," he said. "I can and will ask no less of myself."

Spitzer also said he would leave politics for good, a crushing admission for a man dubbed "the crusader" for prosecuting stockbrokers as attorney general and who was mentioned as a future presidential candidate.

Spitzer said he would remain in the Executive Mansion until noon Monday -- at Paterson's request -- "to permit an orderly transition."

That process was under way yesterday at Paterson's Guilderland house, where he met privately with aides.

"He's relaxed, he's in good spirits, but he's well aware of the great responsibility he's about to assume," said Comptroller Thomas DiNapoli of Great Neck, leaving the house after a half-hour session.

Knowledgeable sources said Paterson had asked some of Spitzer's aides to leave. But Homeland Security czar Michael Balboni of Mineola said he had accepted the invitation to stay and would be briefing Paterson today on security issues.

The legislature's four top leaders, along with Attorney General Andrew Cuomo and county executives such as Nassau's Thomas Suozzi, praised Paterson for his affable style and knowledge of lawmaking.

"Governor Paterson knows the meaning of honor and has shown in both his deeds and words that he is a man of the highest public and personal integrity," said Assembly Minority Leader James Tedisco (R-Schenectady). It was in a heated conversation with Tedisco last year that Spitzer referred to himself as a " -- -- steamroller," a moniker that gained widespread currency.

But Assembly Speaker Sheldon Silver (D-Manhattan) sought to remind reporters of Spitzer's early days, when he secured landmark changes to the workers' compensation system. "Now is the time to pray for the Spitzer family. Now is the time to move forward with the people's business," Silver said.

Political observers predicted Paterson would be given a honeymoon, in part because he's a former lawmaker and because there's bipartisan support for ending the rancor that has paralyzed the capital since July.

"The challenges facing David are abnormal because a governor has not resigned in this fashion before," said William Cunningham, a former aide to Govs. Hugh Carey and Mario Cuomo. "He starts with a lot of goodwill ... and I think people will help him."

This story was reported by staff writers Rick Brand, Anthony M. Destefano, Erik German, Robert E. Kessler, James T. Madore, Melissa Mansfield and Steve Ritea. It was written by Madore.