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PORK ‘CHOP’ SET OFF COUP

The Senate coup that jammed up Albany for weeks, costing taxpayers millions and lowering voters’ already abysmal opinion of state government, was sparked by Democratic leaders’ decision to deny $2 million to Sen. Pedro Espada for two mysterious, newly established charities.

One Hand Washes the Other

Now, through a back-door arrangement involving the New Bronx Chamber of Commerce, the powerful Senate majority leader may end up keeping the money under his control after all, state documents and Post sources say.

As the dust has settled from the coup, Albany watchers say they have a clearer idea of how and why it happened — and believe more than ever it was mostly about Espada’s desire to get money for groups he controlled.

“Looking back, Sen. Espada’s participation in the coup resulted less in reform of the Senate and more in power for him,” said Blair Horner, executive director of the New York Public Interest Research Group.

“It was an increase in power directly correlated with his ability to get more resources, including member items.”

The coup had its roots in March, when Espada registered two sham charities with the state just a week before the Senate and the Assembly were expected to allocate $170 million in discretionary pet-project spending among members.

Funneling public money to charities is standard operating procedure for Espada, who has long used his taxpayer-funded, $15 million health-care charity to line the pockets of himself, his family and his pals. The Bronx senator earns a $460,000 salary from the charity, as well as undisclosed extra cash he makes from private companies he has set up to do cleaning and other services for it.

This year, Espada demanded a $1,348,000 appropriation for his days-old Bronx Human Services Council Inc., and another $875,000 for another group Espada named Green Eco Energy, Albany insiders say.

But his push to suck even more money from the public till angered fellow Democratic leaders in the Senate. Then-Senate Majority Leader Malcolm Smith (D-Queens) decided to turn off the spigot, denying the payouts.

Espada took a new tack, said the sources — instead of giving the money to the charities, he proposed that $1.77 million go to the New Bronx Chamber of Commerce.

But Smith — who did not respond to The Post’s requests for comment — still wouldn’t budge.

Espada’s rage boiled over on June 8, as Senate member items were scheduled to be approved. Republicans were ready: They pulled the trigger on a plot they’d been mulling for months to grab control of the Senate.

Espada and fellow turncoat Sen. Hiram Monserrate (D-Queens) gave the GOP the votes it needed to pull off the coup, ousting Smith from office.

Over the coming weeks, Espada and Monserrate flip-flopped back into the Democratic fold, helping them retake control of the chamber and giving Espada the job of majority leader.

With Smith out of the way, Espada gained sway over the Senate’s appropriation process, and went through with his plan to allot $1.77 million to the Chamber of Commerce.

The earmark dwarfs the annual $120,000 budget of the Chamber, which was reorganized in 2002 after a corruption scandal.

Officials of the group insisted they are surprised to get the money.

“We have not been formally notified. Senator Espada has not called us,” said its CEO, Lenny Caro, adding that he first learned of Espada’s largesse from the media. “It has to be put in writing and brought to our board of directors.”

Caro said he was blown away by the windfall since the chamber had only asked the Legislature for $50,000 to pay for community programs aimed at child obesity awareness and financial literacy.

Caro suggested the Chamber could reject the money, since it’s just too big a sum to handle.

In that case, state law says the money would go right back to the Senate’s coffers — and Espada could reappropriate it, with less scrutiny. The money could remain under his control.

Espada wouldn’t directly answer questions about the Chamber money — but he griped that The Post hasn’t paid attention to other money he’s won for his district.

He boasted that $277,000 in other Senate money has already been divided up among 13 other community groups “that fund youth, educational, senior citizen, food pantry and other community programs and services in my district.”

“Where was the New York Post when I provided a $100,000 grant to Per Scholas, Inc., a program that will provide computers and training to 3,000 public middle school students of low-income families in my district?” he said in an e-mail.

“Where was The Post when dozens of students and parents were on hand at Per Scholas to thank me for this funding?”

Up until now, Espada, the president of Comprehensive Community Development Corp. — the umbrella organization that includes the $15 million Soundview health-care organization and its five clinics — has been a cash cow for his three sons, close family friends and campaign workers.

Even an investigation by the state attorney general into the alleged financial shenanigans at Soundview hasn’t veered him off course much — even when he was thwarted in his effort to create a $120,000-a-year state job for his son, Pedro.

Additional reporting by Cynthia R. Fagen

isabel.vincent@nypost.com