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 Eric Petry.

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

NEW YORK

Indictments Not an Issue for New York Politicians Seeking Re-Election

Four New York politicians were re-elected on Tuesday despite facing federal indictments.

• Congressman Michael Grimm won re-election to his Staten Island-based House seat despite facing a 20-count federal indictment for various offenses.
• State Senator Tom Libous was re-elected with 60 percent of the vote in the 52^nd Senate district. Libous still faces a trial on charges of lying to federal investigators, but he is attempting to have the charges thrown out on technical grounds.
• State Senator John Sampson of Brooklyn was charged this summer with embezzling hundreds of thousands of dollars, but still won his primary and general elections by very comfortable margins.
• State Senator William Scarborough ran uncontested on Tuesday. He was charged and arrested this summer for improper use of campaign funds.

Post-Moreland Reforms Unsuccessful

The New York World in partnership with Capital New York published an assessment of the reforms that Governor Cuomo secured in exchange for shuttering the Moreland Commission earlier this year. These reforms included a pilot program to test public financing, new disclosure rules, and a new office of enforcement at the State Board of Elections. Overall, the article claims, these reforms have been a bust. New York Comptroller, Democrat Tom DeNapoli, opted out of the pilot public financing system, citing the program’s structural flaws. His opponent, Republican Bob Antonacci, did participate in the program, but was unable to raise the requisite $200,000 in matchable contributions to qualify for the public funds. Increased disclosure for outside spending, while necessary, was not a profound reform because New York’s unusually high contribution limits allow big spenders to make direct campaign contributions instead. Finally, the independent enforcement office at the Board of Elections took little action this election cycle and proved to be less independent than planned.

Poll: Small Businesses Support Public Financing

A recent national poll conducted by Small Business Majority shows that 85 percent of small business owners support public financing of elections. The results also show that small employers feel that their voices are drowned out by large corporations, giving big business an unfair advantage in the political process. The poll reflects survey responses from 900 small business owners, with 48 identifying as Republican or independent-leaning Republican, 32 percent as Democrat or independent-leaning Democrat, and 11 percent as independent. 

IDC Senators Want to Remain with Republicans

State Senator Jeff Klein, leader of the Independent Democratic Conference, announced last week that the he wants the IDC to remain aligned with the Republican majority, despite promises earlier this summer to form a coalition with the other Democrats in the chamber. The deal struck this summer helped to appease the Working Families Party and major labor unions, allowing Klein and the rest of the IDC senators to avoid difficult primary challenges from the left. But while the IDC Senators won reelection, other Democratic candidates were less successful, leading to Republicans taking 32 seats and maintaining control of the state Senate. The Senate GOP leader, Dean Skelos, would not confirm whether he would welcome a new coalition with the IDC.

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 Eric Petry.

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

NEW YORK

Small Donations Fueled ‘Wide-Open’ Elections Last Year
A report by the New York City Campaign Finance Board shows that the city’s 2013 elections were “the most wide-open” since the city’s small-donor matching system was put in place 25 years ago. The report, “By the People: The New York City Campaign Finance Program in the 2013 Elections,” shows, among other things, that: the number of candidates participating in the public-funding system in 2013 remained high; more than two-thirds of all New York City contributors gave $175 or less; and more than 90 percent of the total raised came from individual contributors, rather than from PACs or unions. While the level of outside expenditures in 2013 was also high, the CFB says that its disclosure requirements – which were recently tightened further – reduced the influence of dark money in the city elections. The CFB report demonstrates the benefits of a public matching system for small donors, supporting the view that the New York City system could be a valid model for the rest of the nation.

Roundup of Public Corruption Cases

• State Senator Thomas Libous and his attorney appeared before a U.S. District Court judge on Wednesday to discuss which motions the defense is planning to file. Libous was indicted on July 1; he’s charged with lying to federal investigators regarding allegations that he had improperly helped his son obtain a position with a politically connected law firm in Westchester County. 

• Diana Durand, the ex-girlfriend of Staten Island Congressman Michael Grimm, pled guilty to making illegal contributions to Grimm’s campaign. Her lawyer insisted she is not cooperating with the federal investigation into the congressman, whose trial on fraud and tax charges is scheduled for December. 

• U.S. Attorney Preet Bharara has been going after the pensions of politicians convicted of corruption-related offenses. He obtained forfeiture orders against former New York City Councilman Miguel Martinez and Assembly Member Eric Stevenson and is seeking to have the money paid out of pension benefits.

State Board of Elections Enforcement Unit Starts Work

The enforcement unit created by legislation passed through the budget is now open for business. The unit was part of a package of reforms that Governor Cuomo pushed in exchange for shutting down the anti-corruption Moreland Commission. The new unit is headed by former Cuomo aide Risa Sugarman and will be housed in the Board of Elections but physically walled off from the rest of the agency. Reformers agree that improved campaign finance enforcement is necessary at the state level, but many had called for more sweeping changes including public financing of elections.

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 Eric Petry.

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

NEW YORK

The Real Moreland Takeaway
SUNY New Paltz dean and state government expert Gerald Benjamin and former New York City corporation counsel Fritz Schwarz wrote an op-ed in the Daily News this week to emphasize the need for public financing at the state level. The attention surrounding Governor Cuomo’s handling of the Moreland Commission is “an easy distraction,” they write, that “takes our attention off of where it should really be focused…the commission’s crucial recommendations for campaign finance.” When adopted, they argue, these reforms will curb the corrosive power of big money in Albany and strengthen the influence of average voters. Schwarz and Benjamin also wrote a letter, which is joined by more than 20 other prominent New Yorkers, urging candidates for the New York State legislature to make public financing a top priority next year. 

New City Law Requires More Disclosure for Campaign Spending
The New York City Council unanimously approved a new campaign spending disclosure law this week. Under the new law, any independent expenditure group that spends in excess of $5,000 will be required to list their top three donors on any literature or advertisements they distribute to voters. They would also have to provide additional disclosure information that would be available publicly on the New York Campaign Finance Board’s website. Councilman Brad Lander, the bill’s primary sponsor, has repeatedly called out groups that do not disclosure their donors and argues that this law will “enable voters to see who’s behind the ads they’re getting.” After the bill passed easily through the City Council, a spokesperson for Mayor de Blasio said he will not hesitate to sign it into law.

Appellate Court Denies Cuomo’s Teachout Challenge
In a unanimous vote, a New York state appellate court rejected the residency challenge against Zephyr Teachout’s campaign, affirming the lower court’s decision. The appellate court ruled that the burden fell on the challengers to provide “clear and convincing evidence” that Teachout does not to meet the residency requirements – a burden that they failed to meet. Following the decision, Teachout renewed her calls for a debate against Governor Cuomo, saying “we have very different visions for where we want to take the state…Democratic voters deserve a choice.” Time Warner Cable News has already agreed to host a debate between Cuomo and Teachout. When questioned whether he would agree to participate, however, the Governor said that he will “leave that to the campaigns to work out.” 

N.Y. poll: Government Corruption a Problem
Another poll was released this week showing that 83 percent New Yorkers view corruption as a serious problem in the state government. Although Cuomo is still the heavy favorite to win reelection this fall, 48 percent of New York voters now see him as part of the problem compared to 41 percent who see him as part of the solution. The latest poll by Quinnipiac University is the third such survey conducted since news of Governor Cuomo’s handling of the Moreland Commission emerged earlier this summer. The results indicate that New Yorkers have become increasingly aware of the Moreland Commission, and nearly half of the respondents in the new poll said that they were in favor of the ongoing federal prosecutions as a way to finish what the commission started. 

New Yorker’s Deep Dive into Campaign Finance and Corruption
This week, the New Yorker published an examination of the corrupting influence of money in politics. While the piece provides an interesting historical perspective of money in politics nationally, it focuses particular attention on the Empire State, which it calls “corruption’s proving ground.” The piece also highlights the anti-corruption research and advocacy conducted by Democratic gubernatorial candidate Zephyr Teachout, calling her campaign less of a campaign for office and more of a campaign for reform.

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 Eric Petry.

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

NEW YORK

Despite Criticism, Cuomo Holds Wide Lead Over Challenger, Poll Finds
A recent poll conducted by Siena College shows that although a large majority of New York voters believe Governor Andrew Cuomo’s handling of the Moreland Commission was inappropriate, they still view him favorably and would vote to re-elect him. The poll was conducted from August 4 to August 7 in the wake of renewed federal investigations and widespread criticisms of how the Moreland Commission was abruptly ended. Despite an overwhelming feeling among participants that corruption is still a major problem in the New York State government and general disagreement with Governor Cuomo’s claim that the Moreland Commission was successful, 58 percent of voters said they would vote to re-elect him. These results imply that the New York Times article detailing ways the governor’s office tried to control the commission and the ongoing federal investigation have not caused serious damage to the governor’s campaign heading into election season.

Cuomo Ignores Calls for Debates

So far this election cycle, Governor Andrew Cuomo has ignored repeated calls for a debate from GOP candidate Rob Astorino on the right and Democratic primary challenger Zephyr Teachout on the left. Cuomo campaign officials have responded only by pointing out that debate negotiations typically commence in September, thereby eliminating the chances of a Democratic primary debate. A debate between Cuomo and Astorino, on the other hand, remains possible, but Astorino insists they face each other one-on-one. While debates with many candidates allows for more voices to be heard, it also “works for the incumbent” says Lee Miringoff of the Marist Poll in Poughkeepsie. Some doubt that debates would have much effect on the election, given Cuomo’s huge campaign funds advantage over Astorino and the fact that Cuomo leads by more than 30 points in the polls. Still, good government groups, academics, and many others maintain that debates serve a vital role in elections, giving voters the opportunity to become better informed about the candidates. 

Judge Rules Teachout Can Stay on Ballot

On Monday, a New York judge threw out the residency challenge brought against Zephyr Teachout's candidacy for governor following a two-day trial in Brooklyn last week. During the trial, election lawyer Marty Connors argued that Teachout has not been a continuous resident of New York for the past five years – a minimum requirement to be governor – because she spent a significant portion of her time out of state and maintained a Vermont address on her driver’s license. Despite these claims, Justice Edgar G. Walker ruled that Teachout has demonstrated “sufficient intent” to reside in New York and dismissed the challenge. In a statement earlier this week, Connors made clear his intention to appeal the decision, saying that “Ms. Teachout admitted under oath that she misrepresented her address on official and tax documents.” The appeal will be heard on August 19. 

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 Eric Petry and Syed Zaidi.

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

NEW YORK

New York Times Investigation Sheds Light on Moreland Commission’s Operations

According to an extensive investigation by the New York Times, the office of Governor Cuomo allegedly tried to control the operations of the Moreland Commission to Investigate Public Corruption, by steering its investigations away from groups that were politically connected to the governor. For example, when commission investigators sought to review political donations and communications by the Real Estate Board of New York—a trade group whose members include some of Cuomo’s biggest donors—in an effort to connect the dots on a valuable housing tax break, the governor’s secretary reportedly instructed commissioners not to subpoena the organization. Ultimately, the commission declined to do so, gaining information from a voluntary request instead. In addition, although the investigation of independent expenditure groups was part of the commission’s mandate, the governor’s staff allegedly told commissioners not to mention a pro-Cuomo organization, the Committee to Save New York—which spent more than $16 million on lobbying and elections without fully disclosing the source of its contributions—in their final report. Governor Cuomo’s office released a statement contesting the characterization of events by the Times, arguing that since the commission was created by and reported to Cuomo, he could not “interfere” with it. Federal prosecutors are investigating the governor’s decision to shut down with commission. Before it was shuttered, the Moreland Commission recommended public campaign financing and other campaign finance fixes to address Albany’s culture of corruption, but the legislative session ended without meaningful reform.

Feds Probe Campaign Expenses of NY Sen. George Maziarz

A federal investigation, led by U.S. Attorney Preet Bharara, is continuing the Moreland Commission's work to examine campaign expenditures made by 28 state senators, including Republican George Maziarz. According to public filings and bank records subpoenaed by the Moreland Commission, the Maziarz campaign failed to report more than $325,000 in expenditures since 2008, including more than 300 checks made out to "cash" with no indication of who ultimately received the money. In addition, sources close to the investigation say that the Maziarz campaign made significant expenditures directly to staff members and their families. The Senator's chief of staff, Alisa Colatarci, reportedly received $91,378 through 219 payments. Bharara's investigation became public following subpoenas issued to Colatarci and Maziarz's former office manager, Marcus Hall, both of whom resigned last week prior to the subpoenas being issued. Colatarci's attorney, Daniel French, issued a statement emphasizing that she is not a target of this investigation, and that she will continue to cooperate fully with prosecutors. In a statement made last week, Maziarz announced that he would not be seeking reelection this fall.

Democrats Challenge Petition Seeking Spot in Gubernatorial Primary

Represented by prominent election lawyer Martin Connor, two New York Democrats challenged the validity of Zephyr Teachout's petition to secure a place on the Democratic gubernatorial primary this week. The objections filed in court question the petition signatures Teachout collected as well as her status as a New York resident. Under New York election law, Teachout's petition to force a primary against incumbent Governor Andrew Cuomo must include at least 15,000 signatures from registered Democrats, and she must have been a continuous resident of the state for at least the past five years leading up to the election. Although Teachout received more than three times the required number of signatures, Connor and his clients argue that there was high potential for error since signatures were collected at public rallies and street fairs by inexperienced volunteers. Regarding the residency challenge, Connor claims Teachout has maintained elements of her previous Vermont residency, including drivers licenses and an address listed on a 2012 donation to the Obama Campaign. Despite these challenges, Teachout maintains that she has more than the requisite number of signatures and that her residency in New York has been uninterrupted since she accepted a tenure-track position at Fordham University Law School in 2009.

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 Eric Petry and Syed Zaidi.

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

NEW YORK

Senate Coalition Disintegrates

As the legislative session came to a close last week, comprehensive campaign finance reform remained stalled. Opposition to reform was led by Republicans in the state Senate. This week, the breakaway Democrats who had formed a coalition with Republicans to control the Senate announced plans to abandon the arrangement. The leader of the Independent Democratic Conference, Sen. Jeffrey Klein, said the IDC would form a coalition with Democrats next year. The change is expected to have implications for public campaign financing and other reforms left on the table at the end of this year’s session. Governor Cuomo has renewed his pledge to “work to elect people who support” the progressive agenda this election season. Whether the planned Democrat-IDC coalition has a majority in the chamber next year will depend on the outcome of the November elections.

Governor Cuomo Has Raised Millions through the LLC Loophole

In the three and a half years since his election in 2010, Governor Andrew Cuomo has collected more than $6.2 million in campaign funds—more any other New York politician—through a loophole that he previously pledged to close. Under state regulations, limited liability companies are considered individuals and permitted to contribute up to $150,000 per year to candidates and political parties. However, since there is no limit on the number of LLCs a corporation or an individual may create, it effectively allows unlimited campaign contributions. In its preliminary report released last December, the Moreland Commission to Investigate Public Corruption recommended closing the loophole due to “the appearance of a relationship between large donations and legislation that specifically benefits large donors.”

Outside Money Plays Big Role in New York Congressional Primaries

Federal Election Commission filings compiled by the Sunlight Foundation demonstrate that outside groups were actively spending money in New York’s Congressional primary races. In the 21^st Congressional District in upstate New York, outside groups came to the rescue of former Bush administration aide Elise Stefanik, in her primary battle against investment fund manager Matt Doheny. American Crossroads, the Karl Rove-linked super PAC, spent almost $800,000 on the race criticizing Doheny as irresponsible and a “perennial loser.” Another group, New York 2014, was formed just last month and, despite its nondescript name, all of its $370,000 in expenditures were in support of Stefanik. New York 2014 is funded by five rich out-of-district contributors, all with key roles at financial firms. The biggest donor to New York 2014 is Kenneth Griffin, founder and CEO of hedge fund Citadel LLC, who also recently made the largest single contribution in the history of the state of Illinois. Stefanik emerged as the victor in this week’s primary, and will go on to face Democrat Aaron Woolf in November. Outside groups were also active in the 1^st Congressional district Republican primary race between Lee Zeldin and George Demos, where independent expenditures hit $1.8 million. Such groups are likely to be a factor in the upcoming general election races as well.

Green Party Candidate to Challenge Cuomo, Astorino

Howie Hawkins, the Green Party’s gubernatorial nominee, will compete against Gov. Cuomo and Republican nominee Rob Astorino in the general election. Fordham law professor Zephyr Teachout, meanwhile, is collecting signatures to run against Cuomo in the Democratic primary. She has criticized the governor over his failure to pass campaign finance reform to address public corruption. An April Siena poll showed that a left-leaning challenger to Cuomo from the Working Families Party would garner 24 percent of the vote and cut Cuomo’s lead by 19 percent. Although the WFP has already endorsed Cuomo, Hawkins said that he is the “ticket that 24 % is looking for.” The most recent Siena poll however illustrated that Hawkins would capture only 4 percent of the vote in a race with Cuomo and Astorino. Nonetheless, Hawkins remains optimistic: “People have gone through some different things and they’ve basically seen they’ve got to be independent and speak for themselves, instead of attach themselves to the latest liberal Democratic hope,” he stated.

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.   

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.”

Money in Politics This Week

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

Vandewalker: Public Financing “Pilot” Program Designed to Implode

Writing in Newsday, Ian Vandewalker, counsel at the Brennan Center for Justice, praised New York State Comptroller Thomas DiNapoli for opting out of the state’s poorly crafted public financing “pilot” program. Despite calls by the public and several good government groups to comprehensively reform New York’s campaign finance laws, Governor Cuomo and the legislative leadership failed to deliver a real public financing system, instead agreeing upon an experiment limited to the 2014 comptroller elections. The state’s notoriously dysfunctional Board of Elections was empowered to implement the law for this year’s upcoming comptroller race. “[T]he system was designed to implode,” said Vandewalker. Furthermore, the bill, which was passed in a state budget agreement in early April, fails to lower sky-high campaign contribution limits, close campaign funding loopholes, or mandate greater disclosure of independent expenditures by special interest groups.  

Watertown Daily Times: Comptroller Right to Opt-out of Public Financing “Pilot” Program

The Watertown Daily Times praised Comptroller DiNapoli for not participating in New York’s public financing pilot program for election campaigns. Although DiNapoli has been a strong supporter of reform, he said the limited measure introduced during last-minute budget negotiations in early April, was “designed to fail, by lawmakers who either do not really believe in, or don’t understand, public campaign financing at all.” If implemented, the half-hearted effort at reform, would have allowed opponents to point to the poorly crafted model as an example of the failure of public financing. It has unfortunately already provided an excuse for Governor Cuomo to disband the Moreland Commission to Investigate Public Corruption. Calling the reform an inadequate response to the corrosive epidemic of corruption in the New York legislature, the Watertown Daily Times said that “lawmakers should go back to the drawing board.”

Federal Court Overturns New York’s Aggregate Contribution Cap Following McCutcheon v. FEC

On Thursday, U.S. District Judge Paul A. Crotty issued a five-page ruling in New York Progress and Protection PAC v. Walsh, overturning New York State’s aggregate campaign contribution cap on donations to independent political groups. New York State restricts the total amount one person may contribute to all candidates and political action committees to $150,000 per election cycle. The case, brought by the New York Progress and Protection PAC—a conservative super PAC that sought to prop up Republican mayoral nominee Joe Lhota last year—argued that Alabama businessman Shaun McCutcheon had the right to contribute more than $150,000 to independent groups that supported Joe Lhota. Judge Crotty indicated that although he was obliged to follow the U.S. Supreme Court’s decision in McCutcheon v. FEC, which recently invalidated federal aggregate contribution limits, he disagreed with the court’s analysis and lamented that regular citizens “are too often drowned out by the few who have great resources.” Lawrence Norden, deputy director of the Brennan Center’s Democracy Program, said that “It's not just the American public that is unhappy with these decisions but a lot of the judiciary below the [U.S] Supreme Court.”

Money in Politics This Week

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

Governor Could Have Responded to McCutcheon Decision with Reform

In a Journal News op-ed, Lawrence Norden and Frederick A.O Schwarz of the Brennan Center, wrote that Governor Cuomo’s refusal to pass meaningful reform in the state budget was especially disheartening in light of the U.S. Supreme Court’s recent decision in McCutcheon v. Federal Election Commission. Despite his promise to pass comprehensive public financing reform for all state elections, the governor approved a narrow and ineffective pilot program for the Comptroller’s office only. This “reform” package did nothing to reduce campaign contribution limits or close loopholes that disproportionately benefit incumbents. Last year, the Moreland Commission found New York’s campaign finance laws to be wholly inadequate. McCutcheon has the potential to exacerbate the problem if New York’s aggregate limits are struck down—which would allow a single individual to donate over $2.4 million to political candidates and committees in an election cycle. In this environment, another corruption scandal is inevitable.

Campaign Finance Laws Empower Donor Class Over Middle Class

In conjunction with the U.S. Supreme Court decision to strike down aggregate contribution limits, the lack of real reform in the New York State budget empowers the 1 percent, wrote Katrina vanden Heuvel in the Washington Post. The donor class now has greater opportunities to buy access to our elected officials. “We live in a world where…public policy is auctioned off to the highest bidder,” vanden Heuvel said. The systematic dismantling of campaign finance laws explains why we’ve failed to make progress on other issues—everything “from lower taxes to deregulation.” Nevertheless, there are ways that citizens can fight back against the avalanche of big money in politics, ranging from federal legislation to a constitutional amendment, all outlined in the article.  

Poughkeepsie Journal: Moreland Commission Should Not Be Shutdown

Last week, the Poughkeepsie Journal criticized Governor Cuomo’s decision to dismantle the Moreland Commission to Investigate Public Corruption, stating that its “job is far from done.” With more than 30 state lawmakers who have been embroiled in legal or ethical dilemmas since 2000, the state needs an independent watchdog with subpoena powers to not only examine individual instances of wrongdoing, but also to propose solutions to systemic problems of corruption that plague New York. In its 2013 report, the commission outlined examples of illegal and unethical behavior by campaign contributors and lawmakers looking for big checks. However, it did not identify the perpetrators by name. It was expecting to deliver another report by the end of this year and refer the names to law enforcement. “At bare minimum, the state must let the panel complete these tasks.” The U.S. Attorney in Manhattan, Preet Bharara, has taken possession of the commission’s files and indicated that his office will investigate any evidence of corruption.

“Reform” Deliberately Designed to Fail

In City & State, Morgan Pehme called out New York State political leaders—the “four men in the room”—for creating a façade of good government reform, while perpetuating a status quo which greatly benefits incumbents. The budget adopted last week constructed a new pilot public financing program for the state comptroller’s race. The only problem; it was “concocted deliberately” so that it would fail. The notoriously dysfunctional state board of elections was allocated the responsibility for managing this program. It had to be prepared to implement the law in time for the approaching 2014 elections. Pehme explained that the failure of public financing would allow incumbents to claim that “this experiment should never” be attempted again. It is no surprise that Comptroller DiNapoli, a stern supporter of public financing, choose to opt-out of the ill-crafted proposal. Legislators now need to go back to the drawing board to create a comprehensive reform proposal that includes public financing for all state races and adequate funds for enforcement.

Money in Politics This Week

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

New York Times: Most Fundamental Reform Missing from State Budget

Governor Andrew Cuomo and state legislative leaders passed New York’s 2014-15 budget last week without a comprehensive small donor public matching system—instead establishing a very limited pilot public financing program for the state comptroller’s race in 2014. Adding to this lapse in leadership, Governor Cuomo said he will disband the Moreland Commission to Investigate Public Corruption, labeling the narrow ethics reforms in the budget a triumph. This was an especially disappointing development in light of the myriad of corruption scandals that engulfed several legislators in recent years, including three of the last five Senate Majority Leaders or Co-leaders. Newspapers throughout the state saw through the spin. The New York Times opined that the budget’s inadequate ethics reforms do not “come close to attacking the root of the corruption problem” in Albany. “The most fundamental reform,” the Times continued, namely public matching funds for small donations in all state races, “is missing.” 

Syracuse Post-Standard: Public Financing “Pilot” Program a Cop-out

The Syracuse Post-Standard reiterated the shortfalls of the 2014-15 New York budget in an editorial last week. Calling restricting public financing to the comptroller’s office a “cop-out,” the upstate newspaper said that New York City’s successful model demonstrates that a “pilot” program is unnecessary. If such a system would have been implemented, it could have enabled candidates who can’t garner big checks from special interests to compete with small dollar donations from constituents. Unfortunately for now, the status quo, which allows incumbents to build up their war chest to scare off any potential competitors, remains intact.

Albany Times-Union: State Elected Officials Failed to Address NY’s “Most Glaring Failure”

On Tuesday, the Albany Times-Union termed Governor Cuomo’s failure to pass comprehensive ethics reform the state government’s “most glaring failure.” Last year, the Moreland Commission—which the governor appointed to examine New York’s corruption and campaign finance laws—issued a thorough report detailing the legal and ethical breaches that have become so commonplace in Albany over the past few years. In response to the inadequacy of the current system to address pay-to-play politics, the commission recommended several reforms including public funding to match small donations. Unfortunately, Governor Cuomo and legislative leaders “concluded that reform is appropriate only on a very small scale, and only as long as it doesn’t apply to themselves.” The outcome is surprising considering that most legislators, as well as the governor, claimed to support full public financing for all races.

Crain’s New York Business: Ethics Deal Does Little to Deter Corruption

On April 4, Crain’s New York Business criticized New York lawmakers for their inability to deliver on ethics reform. “At least 30 [state legislators] have left office since 1999 because of transgressions ranging from inflating their expenses to sexual harassment to taking bribes,” the editorial stated. Yet the reform provision in the budget made only minor changes to state corruption laws and delegated slightly greater enforcement authority to the state Board of Elections. It did nothing to address the problem of legislators pushing bills or steering funds at the request of special interests and campaign contributors. The decision to eliminate the Moreland Commission to Investigate Public Corruption was especially troubling, Crain’s said—just as the investigators “had dug their teeth into a plethora of questionable dealings.”

Upstate Newspapers: Ethics Reforms Insufficient to Address Corruption

The Rochester-based Democrat & Chronicle called Governor Cuomo’s inability to pass comprehensive campaign finance reform his administration’s “most notable first-term failure.” The alternative to public financing for all races—a limited measure for the state comptroller election in 2014—was too little and too late, given the election year. The Buffalo News concurred, saying the plan was a “laughingstock.” The dysfunctional state Board of Elections is inadequately prepared to implement a public financing program for the comptroller’s office this election cycle. Moreover, sky-high campaign contribution limits, and loopholes for special interests hoping to get noticed by politicians, are still the norm in Albany for the foreseeable future. Overall, the budget bill was not a compromise for anyone, it was a disappointment.

Letter to Governor Cuomo from New York LEAD Member

Letter to Governor Andrew Cuomo from Daniel A. Simon, a member of the New York Leadership for Accountable Government: 

_______________________________________________

Governor Cuomo:

I am a member of NY-LEAD, New York Leadership for Accountable Government (I express only my own opinions here). I attended the luncheon in New York City a little over a year ago when you spoke to our group so convincingly about the need for public campaign financing and its importance to restoring trust in government. That expression of such strong, unqualified support makes the near-complete capitulation on this issue in this year’s budget all the more galling, immensely frustrating, and devastatingly disappointing.

You talked about the need for reform supporters to put pressure on public officials to move this issue forward. I believe that such organizations have more than held up their part of the bargain. They have done their best to convince our legislators through persuasion on policy and demonstration of constituent support, and raised the possibilities of primary and general election challenges. Poll after poll shows the public strongly supporting reform, with public campaign financing popular across the political spectrum. There is no inherent reason why this should be a partisan issue; a vote on this subject should be an easy one for any public-minded official, not a tough one.

And I find it inexplicable that the Moreland Commission, which was tasked with investigating corruption in the political process, has been terminated. If the suspected influence of money in politics justified the commission in the first place, it is hard to fathom a non-political reason to suspend its operations now, before its mission has been completed.

With the public squarely on the side of reform, there comes a time when our elected officials must stop talking and lead. In my opinion, the time for action has long passed. There is no good reason not to get comprehensive campaign finance reform done, and there are no excuses for further delays. It is increasingly difficult for people like me who care deeply about our democracy to support those whose actions fail to demonstrate a serious commitment to reform, regardless of what they say on the matter.

Now is the time to back up words with action. Beyond the need to restore confidence in our state government, the nation desperately needs a model for a campaign finance system that reduces the dependence of our elected officials on big money which currently permeates and warps our government. The public is with us on this, but it requires leaders in Albany who will move beyond talk and take the necessary measures to get the job done.

I still hope you will do so.

Sincerely,

Daniel A. Simon

Money in Politics This Week

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

James and Stewart-Cousins: Public Financing Will Benefit Women

In a Sunday op-ed in the Journal News, New York City Public Advocate Letitia James and New York State Senator and Democratic Conference Leader Andrea Stewart-Cousins described the benefits that public financing of elections would bring for women in New York. One observed effect is more women in elected office. The national average for the percentage of elected women lawmakers in state legislative bodies is 24.2 percent. But in five states with public financing, it is much higher: for instance, 35.6 percent in Arizona and 29.4 percent in Connecticut. In New York State, this figure is even lower than the national average at 21.2 percent—in spite of the fact that women make-up more than half of the state’s population. When legislators reflect the population they serve, it strengthens our democracy. And if more women are elected to public office, they can push for attention to issues that affect women and families. Senator Stewart-Cousins took to the radio waves to share her message on WCNY’s The Capitol Pressroom as well. The president of the think tank Demos, Heather McGhee, agreed in an op-ed in the Albany Times Union, outlining how public financing can lead to greater diversity in our government. In the Journal News, James and Stewart-Cousins concluded, “The governor and the Legislature must move this proposal past the finish line. New York deserve[s] nothing less.”

Schwarz and Soros in Times-Union: “Alternatives” to Reform Are Likely to Maintain Status Quo

In the Albany Times-Union this weekend, Frederick Schwarz, chief counsel at the Brennan Center, and Jonathan Soros, senior fellow at the Roosevelt Institute, criticized alternatives to real campaign finance reform floating around in Albany. Public financing of elections is supported by a majority of state legislators, the governor, and residents of New York. However, opponents of reform have proposed different ‘remedies’ that are likely to leave special interests as firmly entrenched as they are now. One idea is to overhaul our campaign finance laws through a constitutional amendment. The long and cumbersome process associated with this strategy is sure to delay reform beyond the 2018 elections—which is precisely what some politicians want. New Yorkers cannot afford to wait any longer in light of the epidemic of legislative corruption. “The legislature has all the authority it needs to enact this policy by simple statute, and uses that power regularly on far more controversial issues when it suits it,” Schwarz and Soros said. This week, as the final state budget is negotiated, the governor has a simple choice: to pass real reform and deliver on his promise, or allow the corrupt status quo to continue under the guise of change.

Norden: Public Financing Would Reduce Corruption

Writing in response to an op-ed by Brian Sampson, executive director of Unshackle Upstate, Brennan Center Deputy Director Lawrence Norden stated that implementing publicly financed elections in New York is well worth the cost. The reform proposal would allow candidates that can gather enough donations from their constituents the opportunity to access public matching funds in exchange for adhering to stricter contribution limits. Despite the obvious advantages, it is no surprise that special interests that benefit from the status quo of purchasing political access, are opposed to the measure. Sampson’s specious claims were that (1) public financing in jurisdictions such as New York City has not deterred corruption, and that (2) implementing it will cost taxpayers a fortune. However, as the Brennan Center has noted before, New York City has not experienced anything like the corruption scandal of the past since public financing was first instituted. In addition, as Bill Fitzpatrick, the Republican district attorney of Onondaga County has pointed out—after studying the matter on the Moreland Commission—public financing would lead to “astronomical” savings in the long run due to fewer sweetheart deals for special interests. Governor Cuomo and legislative leaders that support reform must now ensure these vital proposals are not bargained away during budget negotiations this week.

Citizens Union Report: Public Financing Generates Greater Electoral Competition

A new report by Citizens Union of the City of New York describes the startling differences between New York City and New York State elections when it comes to incumbency and competition. New York City has an operational and highly successful public financing system with low contribution limits, while Albany has no such arrangement in place and sky-high contribution limits. The results speak for themselves. From 2006 to 2012, 21 percent of all state legislative elections in New York City were uncontested, whereas during roughly the same time period, only 8 percent of New York City council races were uncontested. In the 2012 state primary election, only 27 percent of state assemblymen and 18 percent of state senators faced challengers, compared to 57 percent of council members in the 2013 city council primaries. Dick Dadey, the group’s executive director, stated that the report “demonstrates the need for the state to enact comprehensive campaign finance reforms with public funding so that voters have greater choice and our democracy becomes healthier.”

Staten Island Advance: Public Financing Would Make Elections More Competitive

The Staten Island Advance editorialized in favor of matching small donations with state funds this week, in light of the Citizens Union report showing that elections for the New York City council are more competitive than those for the New York State legislature. High contribution limits for state campaigns contribute to this uncompetitive environment by allowing incumbents to build up their war chests to intimidate any rising challengers. The Advance called for comprehensive reform including lower contribution limits, pay-to-play restrictions on lobbyists, greater disclosure, and most importantly a “public matching program that empowers small donors.” Arguing that reforms would be a step in the right direction, the newspaper emphasized that they would go a long way towards reducing incumbency, which breeds a “dysfunctional refuge of politics behind closed doors.”