Over the next several weeks, the Brennan Center for Justice at NYU School of Law will send regular updates to this list of Friends of Reform in New York State on efforts to secure comprehensive campaign finance reform centered on public financing of elections. These updates will be sent to good government advocates, allies of the Fair Elections New York campaign, legislative and opinion leaders, scholars and engaged students, reporters, and other advocates for reform. They will also be posted on the Brennan Center’s New York blog at ReformNY.blogspot.com.
Moreland Hearing: Current Campaign Finance Enforcement Structures are Failing
Last night’s Moreland Commission hearing focused on two main topics: the New York State Board of Elections’ failure to effectively enforce state election law and the success of public campaign financing systems in New York City and Connecticut. The first topic – the weaknesses of BOE enforcement practices, which were already well known – got most of the attention at the hearing and in the press. The equally important second topic – how we start to address the corrupting influence of big, special interest money in New York politics – was almost entirely ignored.
As they grilled BOE officials, the commissioners’ scathing questions revealed widespread problems with the agency’s current practices. Those questionable policies include refusal to investigate anonymous complaints, even those supported by documentary evidence. Commissioners also questioned the notorious LLC loophole that allows an individual or company to give many times the contribution limit through the use of shell companies. In a distressing example of the BOE’s impotence, the commissioners learned about one investigator, who after failing to receive work from his supervisors despite repeated requests for more to do, resorted to playing solitaire on his computer – as a backlog of hundreds of complaints awaited action.
Advocates of reform anticipated the hearing would examine not just bureaucratic incompetence or illegal activity, but also promising solutions to New York’s glaring campaign finance problems. Witnesses presented testimony in person and in writing about the highly successful enforcement systems in New York City and Connecticut, both of which include public campaign financing, which could serve as a model for New York State.
Connecticut Deputy Secretary of State James Spallone said “campaign finance reform has changed the culture in the Capitol.” Public financing, he said, “is becoming part of our political fabric and a model for the nation.” His written testimony further explained that the system has reduced the influence of special interest lobbyists.
New York City Campaign Finance Board Executive Director Amy Loprest submitted testimony discussing the ways that public financing improves enforcement. Candidates cannot take public funds unless the CFB’s audits and investigations establish that they are in compliance with the election laws. She wrote, “Candidates in New York City know that their campaign will be held to strict standards – and that their opponent’s campaign will be held to the same standards.”
Campaign Finance Institute Executive Director Michael J. Malbin, a nationally recognized campaign finance expert, submitted testimony detailing the financial aspects of a public funding system. Public funding would cost each New Yorker $2.12 per year and could save the state millions currently spent on special interest provisions large campaign donors currently secure for themselves. Professor Malbin highlighted the urgency: candidates need an alternative to being overwhelmed by large outside spending that threatens to become the new normal. Public funding “should be included in the Governor’s executive budget in January 2014.”
The New York Times’ Michael Powell reveals shocking examples of big campaign donors’ ability to buy legislative influence – and the corruption is completely legal. A tobacco wholesaler gave large contributions to legislators working on a bill that would increase his profits; meanwhile New York State ignores a reform that would increase tobacco tax collections enough to pay for public financing many times over.
Karen Dewitt of New York State Public Radio reports on new Common Cause research raising suspicions of legal corruption. Common Cause hopes the Moreland Commission will investigate whether “there’s a link between the $5 million dollars spent by major pharmaceutical companies on lobbying and campaign donations to New York State politicians, and the failure to pass major consumer friendly bills regulating Big Pharma.”