Friday, May 30, 2014

Money in New York Politics

The Brennan Center regularly compiles the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. This week’s links were contributed by Syed Zaidi.

For more stories on an ongoing basis, follow the Twitter hashtags #moNeYpolitics and #fairelex.

NEW YORK

Gov. Cuomo May Oppose Senate Coalition if Public Financing Isn’t Passed
Governor Andrew Cuomo implied this week that he may oppose the ruling Senate coalition of Republicans and Independent Democrats this coming fall if the chamber does not pass public campaign financing. “If public finance is not passed by the end of session, I will consider the [Senate] coalition a failure,” Cuomo said. “I would give my opinion to the people of the state,” he continued. The governor is facing pressure from the progressive Working Families Party, which might not endorse him on the party’s ballot line if he doesn’t achieve public financing reform. The party’s nominating convention is this Saturday. Independent Democratic Conference Senator Jeffrey Klein, who leads the chamber in a power-sharing agreement with the Republicans, has also insisted that reform must be enacted before the end of the session. He did not rule out aligning with the mainstream Democrats if it fails. Former state Attorney General Oliver Koppell will be challenging Klein in the June Democratic primary. Although negotiations were well underway with Republicans regarding public funding, the discussions were derailed following a warning from the Conservative Party. Conservative Party Chairman Mike Long told Skelos that his party would not endorse Senate Republican candidates if they vote for public financing reform.

NYS Board of Elections Will No Longer Enforce Aggregate Contribution Limit
Commissioners at the New York State Board of Elections decided last week that the board will no longer enforce the state’s $150,000 aggregate contribution limit. Under the state’s aggregate limit, a single individual could not contribute more than $150,000 combined per calendar year to all political campaigns, parties, and independent committees in New York. The board’s announcement came after recent court rulings concerning aggregate contribution limits. In early April, the U.S. Supreme Court declared federal aggregate contribution limits unconstitutional in McCutcheon v. FEC. Soon thereafter, a judgment by a federal district court nullified New York’s aggregate contribution limit of $150,000 as applied to independent expenditure groups, such as super PACs. The recent Board of Elections decision nullifies the aggregate contribution cap regarding donations to all candidates, parties, and political action committees, in addition to independent expenditure groups.

Albany Times-Union: Public Financing Reform More Urgent Without Aggregate Contribution Limits
Yesterday, the Albany Times-Union criticized the Board of Elections’ decision to not enforce the state’s aggregate contribution limit, saying it would allow a single wealthy donor to “pour millions of dollars into an election like this fall’s, when every state office will be up for grabs.” As it stands, New York’s individual contribution limits are already sky-high: $41,000 for statewide offices, $8,400 for the Senate and $4,100 for the Assembly—just for the general election. The decimation of aggregate contribution limits only exacerbates the problem. To make matters even worse, since Limited Liability Corporations (LLCs) are subject to individual rather than corporate contribution limits under New York campaign finance regulations, one person could set up several different subsidiaries to funnel millions more into state campaigns. The editorial called on the legislature and Governor Cuomo to immediately take action by reducing the individual contribution limits for state offices, closing the LLC loophole, and instituting a system of public campaign financing so that elected officials can “pay attention to small donors,” rather than just courting millionaire contributors.

Buffalo Common Council Passes Resolution to Explore Small Donor Public Financing
The Buffalo Common Council passed a resolution this week to explore the possibility of adopting a public campaign financing system for local offices. Council Member Joseph Golombek, who is pushing the measure, commended his colleagues for being open to reform, especially considering that it would allow challengers to “actually…raise money,” when running against incumbents. According to the resolution, in 2011, incumbents in the Buffalo Common Council outraised opponents by a margin of 24-to-1. The resolution charged a committee, composed of citizens from local labor unions and advocacy organizations, with examining the possibilities of a municipal public financing system. Susan Lerner, Executive Director of Common Cause New York, praised the resolution, calling it an opportunity to “bring more small donors into elections,” and to broaden the “range of candidates” running for office.

Thursday, May 22, 2014

Money in New York Politics

The Brennan Center regularly compiles the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. This week’s links were contributed by Syed Zaidi and Emily Apple. 

For more stories on an ongoing basis, follow the Twitter hashtags #moNeYpolitics and #fairelex.

NEW YORK

NY Times: Gov. Cuomo Must Put His Words into Action
Last week, the New York Times pressed Governor Cuomo to put his words on reform into action. Under the status quo, special interests reign supreme in Albany, the editorial stated. Incumbents face little competition because they can easily flood their war chests with sky-high contributions. A system of public financing that matches small donations with public funds offers the potential to both increase candidates’ reliance on small contributors and to diversify the pool of candidates that run for office. Recently, in the 2014-15 budget, the New York legislature and Governor Cuomo passed a pilot public financing program for the state comptroller’s race. Republican state comptroller candidate Robert Antonacci has already said that he will participate in the program. Although the Republicans in the state senate claim they are opposed to public financing, the fact that they were willing to agree to this trial demonstrates that there is hope for passing more comprehensive legislation. The Times said Cuomo should consider campaigning against lawmakers that refuse to pass reform.

Fmr. State Sen. Bruno Acquitted of Fraud Charges in Re-trial
Last Friday, former New York State Senate Majority Leader Joseph Bruno was acquitted in federal court on fraud charges, ending a decade-long legal battle. In 2009, Bruno was convicted on two counts of mail fraud for allegedly receiving hundreds of thousands of dollars in consulting fees from Jared Abbruzzese, an Albany businessman, and overpaying Abbruzzese for a horse prosecutors said was worthless. However, the conviction was later vacated on appeal based on a U.S. Supreme Court decision that honest-services fraud convictions cannot be based solely on concealment of a conflict of interest. In 2012 federal prosecutors brought new charges against Bruno for allegedly accepting $440,000 in bribes and kickbacks from Abbruzzese, disguised as consulting fees while in office. Last week, the jury found Bruno not guilty of the charges. The ruling comes after the conviction of Assembly Member William Boyland Jr. and Assembly Member Eric Stevenson this year on bribery charges. 

NYS Board of Elections Scrambling to Set up Public Financing Program
The New York State Board of Elections (BOE) released draft regulations governing the new pilot public financing program for the state comptroller’s race last week. According to Capital New York, the state BOE asked the New York City Campaign Finance Board (CFB) to administer the program—a request the city board refused because it is legally prohibited from doing so. However, the NYC CFB has provided other assistance to the state agency such as forms, language for regulations and other advice. State legislators and Governor Cuomo claimed that the trial program was launched to test the practicality of a statewide public financing system. Good-government groups, as well as incumbent state Comptroller Thomas DiNapoli, argued that the pilot was poorly constructed and deliberately designed to fail. Ian Vandewalker, counsel at the Brennan Center for Justice, stated that “it was a mistake to give [administration of public financing] to the Board of Elections. By their own account they don’t have the budget—to give them a new responsibility, it doesn’t really make sense.”

Support for Public Financing Increasing Among New Yorkers

In a new poll released Thursday by Quinnipiac University, the majority of voters surveyed—55 percent—indicated that they believe New York State government is dysfunctional. Eighty-one percent, an overwhelming majority, replied that corruption in state government is a “very serious” or “somewhat serious” problem. Similarly, 78 percent thought that Governor Cuomo’s decision to shut down the Moreland Commission, which was investigating corruption in the state legislature, was a political deal struck with legislative leaders, rather than a “decision based on good government.” And a plurality, 46 percent, said that they approve of public financing of election campaigns for statewide and state legislative races. Typically, when this question is posed to voters with details regarding the comprehensive reform plan—including lower contribution limits and matching small donations—support jumps above 60 percent.   

Friday, May 16, 2014

Money in New York Politics

The Brennan Center regularly compiles the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. We’ll also be linking to dispatches from around the country highlighting the national scope of this crisis. This week’s links were contributed by Syed Zaidi. 

For more stories on an ongoing basis, follow the Twitter hashtag #moNeYpolitics and #fairelex.

NEW YORK

Gov. Cuomo Discusses Passing Reform This Session with Activists
Under mounting pressure from good-government groups, unions and the Working Families Party, Governor Andrew Cuomo met with advocates of campaign finance reform to discuss passing publicly financed elections before the end of the state legislative session in June. Cuomo said he wants his eulogy to list three accomplishments: marriage equality, gun control and public financing. The Working Families Party in particular has made the subject a legislative priority, and progress on the issue is likely to be a consideration as the party decides whether to endorse Cuomo for his fall re-election campaign. The party will nominate its candidate for governor on May 31st.  Dick Dadey, executive director of Citizens Union, said he was optimistic about prospects of passage. “Our discussions with the governor and Senator Klein have moved from the need to get campaign finance reform, to specifically how it can get done,” he stated. Assembly Democrats, and both wings of the Democrats in the state senate, already support the much-needed changes. State senate Republicans, who rule the chamber in a coalition with breakaway Democrats, have been the greatest obstacle to reform. However, Republican Senate Co-leader Dean Skelos has stated that he is open to certain mechanisms of publicly funding campaigns such as a voluntary tax check-off. The pilot public financing program for the state comptroller race, which legislative leaders—including Republicans—and Governor Cuomo authorized in the 2014-15 budget, is supported by the state’s abandoned property fund.

Republican State Comptroller Nominee to Accept Public Financing
At the New York State Republican Party convention on Wednesday, delegates unanimously nominated Robert Antonacci to run for state comptroller come November. Antonacci has been Onondaga County’s comptroller since 2007. He will face incumbent Democratic Comptroller Thomas DiNapoli in the fall. Antonacci has enthusiastically indicated that he will be participating in New York’s trial public financing program, which allows comptroller candidates to receive money from the state’s abandoned property fund to match small donations. "My family can't self-finance a statewide elected race. But for the campaign finance pilot program, I would not be in the race," he stated. In what has amounted to an ironic situation, Antonacci, whose party has traditionally opposed public financing, will be opting into the system, while DiNapoli—citing problems with the program’s design—will not be participating. Last month, after criticizing public financing, New York GOP Party Chairman Ed Cox admitted that the pilot program would broaden “the field on the Republican side for potential comptroller candidates.”

U.S. Rep. Grimm’s Ex-Girlfriend Pleads Not Guilty to Violating Campaign Laws
U.S Representative Michael Grimm’s (R-NY 11) former girlfriend pleaded not guilty to charges of violating campaign finance laws last week. Federal prosecutors charge that Diana Durand reimbursed straw donors that gave money to Grimm’s 2010 Congressional campaign. Three donors were allegedly provided with a total of $10,600 for their contributions by Durand. She faces a maximum of eight years in prison if convicted on all charges. Durand’s attorney defended his client, stating that she has a poor understanding of campaign finance laws and did not intentionally commit the crime. An investigation into Grimm’s 2010 campaign is still ongoing. Unrelated to his campaign, Grimm has been recently indicted for tax evasion, perjury, and hiring undocumented workers, during his tenure as the co-owner of a health food restaurant in the Upper East Side. He has vowed to stay in Congress, and continue his 2014 reelection campaign. 

Friday, May 09, 2014

Money in New York Politics

The Brennan Center regularly compiles the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. We’ll also be linking to dispatches from around the country highlighting the national scope of this crisis. This week’s links were contributed by Syed Zaidi. 

For more stories on an ongoing basis, follow the Twitter hashtag #moNeYpolitics and #fairelex.

NEW YORK

Gov. Cuomo Tells NY Senate to Pass Public Financing
In a Huffington Post op-ed, Governor Andrew Cuomo insisted that public campaign financing is the issue with the “best opportunity for the remainder of the session.” Alluding to President (and New York Governor) Theodore Roosevelt’s support for campaign finance reform, Cuomo said that New York should follow in his footsteps. After a series of corruption scandals last year, the governor empanelled a commission to investigate shortfalls in the state’s bribery and campaign finance laws. This week, he defended his decision to end the commission back in April, arguing that all investigations are now in the hands of state and federal prosecutors with legal authority to get to the bottom of any wrongdoing. Although the recently adopted budget restricted public financing only to the state comptroller’s race, Cuomo pointed out that by agreeing to a pilot program, opponents “conceded the crucial ideological point they had resisted for decades: that public funds can be used to finance elections.” Public financing has been shown to boost small donor participation as well as broaden the field of candidates that run for office. The governor put the onus on the ruling Senate coalition—composed of Republicans and a few breakaway Democrats—to pass reform before the end of this year’s session in June, saying anything less would be a “true failure and a lost opportunity.”

Moreland Commission Members: Pass Reform before End of Session
In the Daily News, former Moreland Commission members Peter Zimroth, Lance Liebman, and Gerald Mollen argued that there is still a chance for Albany to change its culture of corruption and dysfunction. During its short tenure, the commission exposed serious and systematic problems with New York State’s campaign finance laws. Although the commission has now been dismantled following a budget deal that passed an incomplete set of reforms, there are still two months left in the state legislative session. Lawmakers should use this time to pass comprehensive campaign finance reform, the three argued. In New York City, public financing has allowed constituents to take on powerful lobbyists and special interests. Donations from natural persons to city candidates are matched at a $6-to-$1 ratio with public funds, allowing elected officials to spend more time courting citizens rather than corporations or unions. “Initiating this system will cost some taxpayer money,” the commissioners stated, “But it will cost taxpayers substantially more over the long run if we continue to allow large contributors to exercise such outsized influence in choosing our elected leaders.”

Democrats in New York Senate Introduce Reform Bills
Democrats in the New York senate have introduced several pieces of legislation to expand public financing to all state legislative and statewide races, and enact stronger anti-corruption provisions. The package of bills would establish a $6-to-$1 match for political donations up to $250, cap donations from limited liability companies to $5,000, and restrict contributions to political party housekeeping accounts down to $25,000. Other bills would strip state and local officials from their pensions if they are convicted of a felony and outlaw the use of campaign funds for legal defense. The Democrats are a minority in the state senate, so the fate of the bills will ultimately be decided by the ruling coalition of Republicans and five independent Democrats. Independent Democratic Conference leader Senator Jeffrey Klein has also expressed that public financing reform will be a priority for the remainder of the session. “Certainly we need to have a public matching system,” he told reporters, “We need to do more than we did in the budget.”

Republican Candidate for Comptroller to Accept Public Financing
Onondaga County Comptroller Robert Antonacci said he plans on challenging Democratic State Comptroller Thomas DiNapoli for his position this coming fall. Despite the opposition of his party’s leadership to publicly financed campaigns, Antonacci informed the Associated Press that he will “whole heartedly and enthusiastically” participate in the pilot program which allows candidates to receive $6 in public funds for every $1 they raise up to $175 from New York residents. “We will show the taxpayers that we know how to spend every dollar we receive wisely,” Antonacci continued. DiNapoli, although a supporter of reform, decided to opt out of the matching funds program because he said the pilot was inadequate and poorly crafted. New York Republican Party Chairman Ed Cox stated that the public financing trial would broaden “the field on the Republican side for potential comptroller candidates.”