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The New York Post reports that State Sen. Malcolm Smith was arrested today for trying to bribe GOP leaders into getting his name on their mayoral ballot. He allegedly had Councilman Dan Halloran, a Republican, meet with party leaders and negotiate thousands in bribes. Halloran was also arrested today and is accused of collecting thousands in bribes for himself.

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This new report - by the New York State Youth Leadership Council and NYU Law School’s Immigrant Rights Clinic - outlines the economic and social benefits that would accompany passage of the New York DREAM Act. The act would provide that all New Yorkers, regardless of status, have access to financial assistance for higher education. (read the full report)

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Yesterday Police Commissioner Kelly spoke for the first time about the idea of creating an inspector general for NYPD. “I think putting in another layer of so-called supervision or monitoring can ultimately make this city unsafe," he said. Meanwhile, Mayor Bloomberg commented on the mayoral candidates' ability to keep the city safe: “What we don’t know is what they will actually do to reduce crime. We don’t even know if it’s a goal.” Mayoral Candidate William Thompson said Tuesday he wants an inspector who would report to the commissioner. In related news, three cops who have stopped-and-frisked an unusual amount of people will offer their perspective on the practice at a trial over its constitutionality.

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State Tells Investors That Climate Change May Hurt Its Finances (NY Times)

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Report: Most Gay And Lesbian Students In New York City Are Harassed (Daily News)

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A delay in its bidding process has left the state's Office of Medicaid Inspector General without private investigators who do the foot work rooting out fraud and abuse. Without them, the state is failing to recover tens of millions of dollars. The investigators are usually retired detectives. Also, the office has weakened its in-house enforcement, leaving many cases without a primary investigator or supervisor assigned. Meanwhile, the federal government is asking the state to return a $27.4 million reimbursement to Washington. An audit found an "extremely high" incidence of billing errors for services for Medicaid recipients who were in a state rehabilitation program.

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In Reversal, Liu Opposes Inspector General For NYPD (Wall Street Journal)

Tax Rebate Details Emerge (Albany Times Union)

Offstage, A Proudly Brash Quinn Isn’t Afraid To Let Her Fury Fly (NY Times)

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Speaker Quinn, the frontrunner in the mayoral race, said a council bill to create an Inspector General's office for the NYPD likely has enough votes to override a mayoral veto. The office would be able to issue subpoenas, interview witnesses, and look broadly at police procedures and policies. Individual misconduct cases would still be handled by Internal Affairs and the Civilian Complaint Review Board. Quinn said talks were also progressing on three companion proposals to set new stop-and-frisk rules. A bill to create an NYPD monitor was introduced in June, but Quinn kept it from a vote. Bill de Blasio, a Democrat also running for mayor, said the monitor needed to have a budget independent of the mayor and City Council. Quinn would still retain Commissioner Kelly, who is opposed to the monitor.

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Deal In Albany Would Extend Higher Taxes On Top Earners (NY Times)

NYPD Officer: Police Brass Dictate Stops, Arrests (Associated Press)

Ten Domestic Violence Victims File Lawsuit Against NYCHA (Daily News)

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