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

Despite Federal Indictments, State Senators Win Primaries

Three New York Senators – Thomas Libous, John Sampson, and Malcolm Smith – entered the primary election on Tuesday facing federal criminal charges. Despite these legal troubles, both Libous and Sampson managed to win their races by safe margins – 28 points and 25 points respectively. Smith, on the other hand, lost by more than 50 percentage points in a landslide. While it remains to be seen whether Libous and Sampson will win in the general election this November, the primary this week showed that the presence of pending criminal charges can be is not necessarily a death knell for New York legislators seeking reelection. Gubernatorial hopeful Zephyr Teachout made Albany corruption a primary campaign issue and garnered 34 percent of the vote, the highest of any primary challenge to a sitting governor since primaries were instituted in 1970.

Consultants Avoid Regulation as Lobbyists

New York politics is starting to see the emergence of a new group of political actors: non-lobbyist strategic consultants. These consultants function like lobbyists in terms of access and ties to politicians, but they are able to avoid registering as official lobbyists. Their unofficial status allows them to avoid disclosure requirements, as long as they do not “attempt to influence politicians.” While this practice technically falls within the law, it raises suspicions because of the inherent influence strategic consultants can possess. Jennifer Cunningham, for example, worked closely with Attorney General Eric Schneiderman and Governor Andrew Cuomo throughout her political career, helping to get them both elected in 2010. After they were elected, Ms. Cunningham deregistered as a lobbyist to “avoid even the appearance of a conflict” of interest and resigned her job at a top lobbying firm. In the role as a strategic consultant, which she has kept since 2010, however, Cunningham has continued to represent clients before the state government, working closely with Schneiderman on a consistent basis. So close, in fact, that the Attorney General’s office initially refused an open records request to provide communications between Schneiderman and Cunningham, claiming that the conversations fell under an exception for “intra-agency records” between state employees.

JCOPE Holds First-Ever Hearings

For the first time in its 20-month history, the Joint Commission on Public Ethics held a hearing to discuss specific allegations of lobbying law violations. While JCOPE has engaged in enforcement actions previously, none had ever proceeded far enough to reach a hearing. The hearing officer, former federal Judge George Pratt, recommended that the three entities found in violation of disclosure requirements – Blackboard, Inc., Community Redemption Center, and YL Management, L.L.C. – each receive fines between $4,000 and $10,000. 

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 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

State Sen. Libous Facing Charges of Lying to Prosecutors

New York State Senator Thomas Libous, a 13-term incumbent representing Binghamton, was arraigned in federal court last Tuesday for allegedly making false statements to the FBI. Federal prosecutors claim that Libous lied about using his influence as a state senator to boost his son’s salary at a Westchester law firm. Libous and his son, Matthew, have pleaded not guilty to the charges. The indictment states that the elder Libous arranged for an Albany lobbying firm to pay $50,000 to the law firm where his son was employed, in order to inflate his son’s salary. He “took advantage of his position as senator and chairman of the Transportation Committee by corruptly causing lobbyists, who wanted Libous’ influence to benefit their clients, to funnel money through a law firm to his son,” Manhattan U.S. Attorney Preet Bharara explained. When questioned by prosecutors regarding these charges, Libous denied involvement in any deal between the lobbying firm and the law firm, according to the indictment. Matthew Libous is being simultaneously accused of tax evasion. If the senator is convicted, it would increase the number of Albany legislators that have been forced out of office due to misconduct since 2000 to 27.

Real Estate Interests Seek to Boost Republicans in November Elections

Following the collapse of the power-sharing coalition in the New York State Senate last week, conservative interest groups are combining their efforts with New York real estate developers to win additional seats and maintain Republican influence in the state legislature. The Republican State Leadership Committee and its affiliated 501(c)(4), the State Government Leadership Foundation, have made significant donations to New York political groups, including $10,000 to the Balance New York super PAC, most of whose funds in turn come from the Rent Stabilization Association PAC and the Neighborhood Preservation Political Action Fund. The Rent Stabilization Association PAC, composed of owners of the city’s rent stabilized buildings, has been actively contributing to incumbent Republican Senators including Andrew Lanza in Staten Island and Jack Martins in Long Island, who are facing Democratic challengers this November. More information regarding contributions and expenditures in the state races will be available following the state Board of Election’s July 15^th filing deadline.

Teachout Gathers Signatures to Challenge Gov. Cuomo in Primary

Zephyr Teachout, the Fordham Law professor hoping to challenge Governor Andrew Cuomo in the Democratic primary, informed the press this week that her campaign has the necessary signatures to appear on the ballot. Thus far Teachout says she has gathered more than 45,000 signatures from registered Democrats. Although only 15,000 signatures are required to be placed on the ballot, the campaign expects the governor to legally challenge the validity of some signatures. Teachout has been actively seeking support from local Democratic clubs in New York City. She has centered her campaign on concerns regarding rising income inequality and corruption in the state capital. “I would love to be the governor of New York” she told a crowd of likely primary voters. “But I would also like to get this governor of ours … [to] actually listen to the deep, very heartfelt concerns of the Democrats of this state.”

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

The Daily Gazette: New York’s 2014 Legislative Session a Failure

The New York State legislative session is ending this week without major progress on big-ticket issues such as campaign finance reform, minimum wage, and the women’s equality agenda. The Daily Gazette called the session a “big flop.” The upstate newspaper said that the failure to pass campaign finance reform would allow big money to continue “to influence elections at the expense of worthy candidates who don't have access to large donors.” Although the legislature had several months to work to find solutions to these pressing concerns, they largely failed to address them.

Law Professor Teachout Plans to Mount Primary Challenge to Gov. Cuomo

Zephyr Teachout, a Fordham University law professor, is collecting signatures to mount a Democratic primary challenge to Governor Andrew Cuomo. Her decision to run follows a contentious Working Families Party convention, where the third party nominated Cuomo for their ballot line in this year’s gubernatorial election. Teachout however, still garnered 41.3 percent of the vote at the convention. Now, she needs at least 15,000 signatures by registered Democrats to secure her name on the ballot. “Four years ago, Andrew Cuomo stood on the steps of a courthouse named after Boss Tweed and promised to clean up corruption in New York State. But he, as Gov. Cuomo, has become the problem that candidate Cuomo promised to fix,” Teachout told the press. She also leveled criticisms against the governor’s economic and fiscal policies, and emphasized the importance of reforming campaign finance to raise the voices of average voters. “I believe in democracy, not donors,” she said.

Mistrial in Corruption Case Involving State Sen. Smith

On Tuesday, Federal District Court Judge Kenneth M. Karas declared a mistrial in the corruption case involving New York State Senator Malcolm Smith and former Vice Chairman of the Queens County Republican Committee Vincent Tabone. Prosecutors had failed to provide the defense with recordings of telephone calls and text messages from a government informer, Moses Stern, which may have been relevant to the trial. Since more than 28 hours of the conversations were in Yiddish, the defense asked the judge for more time to translate and digest the recordings. Some of the jurors could not serve for this extended period of time, which would have pushed the trial into mid-July. Defense attorneys for Smith and Tabone did not consent to going forward with the trial with fewer jurors, leading Judge Karas to schedule a new trial for January 5^th, 2015. The trial of the third defendant—former  New York City Councilman Daniel Halloran, who allegedly served as an intermediary for Smith’s bribery schemes—will resume in a week. 

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

Public Financing Trial Could Show Power of Small Donors

In a guest column for the Post-Standard, David Rubin, a former dean at Syracuse University, wrote that the trial public financing program for the state comptroller race presents an opportunity to demonstrate the power of small donors. Although current New York State Comptroller Thomas DiNapoli has declined to participate in public financing—citing concerns over the inadequate structure of the pilot program—his Republican challenger Robert Antonacci has said that he will op-in. Donations up to $175 by New Yorkers to Antonacci’s campaign will be matched with public funds at a 6-to-1 ratio, if he first qualifies by raising $200,000 including at least 2,000 small contributions. In return he will have to abide by spending limits and a $6,000 per person contribution restriction. Non-participating candidates running statewide, meanwhile, can accept up to $41,000 from a single donor. “Public financing empowers local donors who can actually vote for the candidate. It forces candidates to court us, one small donation at a time,” Rubin explained. And until state legislators pass reforms that apply to all races in the state, “we will get elected officials purchased for us by others, with the awful results we see in Albany and Washington.”

Major Issues Unresolved for Final Week of NY Legislative Session

With just one week left in the New York State legislative session, press outlets are predicting that few big-ticket issues, such as public campaign financing, the women’s equality agenda, medical marijuana or the Dream Act, will be resolved. Although Governor Andrew Cuomo has publicly vowed to campaign against the ruling coalition in the senate unless headway is made on some key issues, Democrats in the chamber are not optimistic about legislative progress. “Whether they allow certain things to get done, it’s up to them,” said Senate Democratic Conference Leader Andrea Stewart-Cousins in reference to the senate ruling coalition of Republicans and five breakaway Democrats. However, Senator Jeffrey Klein, the leader of the Independent Democratic Conference and Majority Co-leader of the chamber, did not rule out the possibility of public financing reform passing before the session is over. “We still have two weeks to govern,” he stated, “[t]he political season has not started yet as far as I’m concerned.”

Albany Times-Union: Bruno Acquittal Demonstrates Need for Reform

Last month, former New York State Senate Majority Leader Joseph Bruno was acquitted of corruption-related charges. Bruno allegedly accepted $20,000 per month in consulting fees from a businessman with a stake in Evident Technologies, according to prosecutors, and then subsequently approved a $250,000 state grant to the company. This did not qualify as corruption under federal law, the jury determined. The Times-Union said that the trial was a troubling demonstration that ethics and campaign finance laws need to be reformed in Albany. To “take money from somebody doing business with the state they can influence,” should be illegal, the newspaper wrote. And there should be more stringent restrictions on what campaign funds can be used for, along with significantly lower contribution limits.

Corruption Trial of New York Officials Brings New Revelations

The trial of New York State Senator Malcolm Smith has brought to light new evidence concerning his alleged scheme to become mayor of New York City. According to the FBI, Smith wanted to become the leader of the Senate Democrats, in an effort to raise his profile and subsequently run for the mayoral race in New York City. Smith asked Moses “Mark” Stern, a government informant posing as a businessman, to give him $27,000—money that was later to be dispersed to other senators to cement his influence. It “puts me in a better position to run for mayor than just being in the senate,” Smith told Stern. Following this, at a meeting between Stern, Smith and another FBI informant, Smith asked the men for their help in persuading three of the five Republican County Chairmen to authorize his mayoral candidacy on the Republican Party line. Smith sought to do this by bribing the officials, prosecutors allege, using former New York City Councilman Dan Halloran as his middle-man.

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 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 Katherine Munyan and Syed Zaidi. 

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

NEW YORK

Senator Warren Prods New York to Pass Comprehensive Campaign Finance Reform

Last week, at St. Peter’s Church in New York City, U.S. Senator Elizabeth Warren and New York Attorney General Eric Schneiderman gave rousing speeches touching on campaign finance reform. Senator Warren explained the connection between the country’s broken campaign finance laws and growing income inequality. “We’ve got a government that works all too well for the rich and the powerful, and all too little for everyone else,” Warren said. She insisted that campaign finance reform should be a top priority for New York State. “Your governor has said, ‘Let’s attack money in politics head-on. Let’s go for campaign finance reform,’” Warren stated. “All I can say is go, go, go, GO!” Attorney General Schneiderman praised Governor Andrew Cuomo for including a public financing proposal in the budget. “The fact that the [public campaign finance] coalition was powerful enough to get the language included in the budget was a huge breakthrough,” Schneiderman said. However, he emphasized that constituents must keep the pressure on the governor and the legislature in the coming months in order to get it passed.

Public Financing Can Restore Public’s Trust in Elected Officials

In the Times-Union last Thursday, NY LEAD member and chairwoman of the Greater New York Chamber of Commerce, Cynthia DiBartolo, and executive director of Citizen Action, Karen Scharff, authored an op-ed urging New Yorkers to help make campaign finance reform a reality in the state. Now that Governor Andrew Cuomo has included comprehensive election reform in his executive budget, the only obstacle that remains is the leadership in the Senate. Senate Co-leader Dean Skelos has voiced his opposition to the reform because it would allow candidates to qualify for public matching funds if they meet certain qualifying criteria. However, another prominent Republican, Onondaga county district attorney Bill Fitzpatrick—who is investigating public corruption in the state as the co-chair of the Moreland Commission—thinks public financing would be an excellent use of public money, leading to long-term savings for taxpayers. Despite representing very different organizations, both authors agreed that public financing can help “restore the public’s trust that our elected officials are really listening to New Yorkers.”

Democrat and Chronicle: Cuomo Must Continue Reform’s Momentum

A Democrat and Chronicle editorial on Monday pressed Governor Cuomo to continue the push for campaign finance reform through the remainder of the session. While praising Cuomo for including the proposal in his executive budget, the editorial insisted that the effort requires “far more attention.” Recent polls demonstrate that the vast majority of New Yorkers favor the proposal. A December report by the state’s anti-corruption commission highlighted the problems with the current system: poor oversight, high contribution limits, and extensive loopholes for major donors. It is no surprise that more than half a dozen state lawmakers were engulfed in scandals last legislative session. “Ultimately, if he’s serious on this front, the governor will need to prove it by making additional ethics reforms a priority this year,” the editorial concluded.

Rep. Grimm’s Actions Call Attention to Campaign Finance Scandal

U.S. Representative Michael Grimm’s (R-NY) recent on-camera altercation with a reporter has brought questions regarding his campaign finances to the forefront of public scrutiny. In an interview following President Obama’s State of the Union address, Grimm threatened to throw a reporter off the Capitol balcony for asking questions about a campaign finance scandal. The reporter was referring to the arrest of Grimm’s fundraiser Diana Durand by the FBI for allegedly contributing more than $10,000 to Grimm’s 2010 campaign via straw donors. In an earlier scandal in 2012, the New York Times reported that Grimm asked for campaign donations from undocumented immigrants. Citizens for Responsibility and Ethics in Washington has requested that the Office of Congressional Ethics investigate whether Grimm’s behavior with the reporter violates House Rules. In 2012, CREW singled out Grimm as one of the 13 most corrupt members of Congress.

NATIONAL

Republican Governors Association Raises Record Funds for 2014

The Republican Governors Association (RGA) announced this week that it raised $50 million in 2013 in preparation for the 2014 election cycle. Thirty-six states have gubernatorial races coming up this fall, the most in any one year since 2009 – and last year’s fundraising total was 66 percent higher than 2009’s.  The RGA spent $35 million on television ads and PAC donations in 2012, making it the top outside spender at the state level, and, in 2010, it spent more than the five largest conservative super PACs and 501(c) groups combined. A Mother Jones analysis of the RGA’s election spending strategies shows the RGA using a network of state level PACs to shuffle money through different states, which has the potential to obscure the identity of its donors and circumvent local campaign finance laws.    

Conservative Author, Director Indicted for Alleged Illegal Campaign Contributions

Dinesh D’Souza, an author and documentary director known for his criticisms of President Obama, was indicted last Thursday on charges of making illegal campaign contributions.  The indictment alleges that D’Souza directed $20,000 in campaign contributions to a 2012 Senate candidate, violating the Fair Election Campaign Act’s limitations on an individual’s contribution to any one candidate to $2,500 during the primary and general campaign.  D’Souza allegedly funneled the contributions through “straw donors,” telling associates to make campaign contributions that he later reimbursed. Sen. Ted Cruz (R – Tex.) and others have claimed that the indictment is political retribution for D’Souza’s criticism of Obama.

More Montana Candidates Accused of Campaign Violations in 2010 Elections

The Montana state commissioner of political practices, Jonathan Motl, has ruled that two 2010 legislative candidates, Joel Boniek and Terry Bannon, illegally coordinated attack ads with an outside spending group and took unreported in-kind donations of costs associated with producing and distributing mailings. Motl previously issued findings against three other candidates for campaign violations in 2010, and says that additional candidates will be implicated in forthcoming rulings. All rulings involve illegal contributions from and candidate coordination with a non-profit corporation, Western Tradition Partnership (WTP) and its affiliated direct mail services.  WTP claimed to be an educational group, but a state judge ruled last year that it acted as a political committee and must therefore disclose its donors and spending. A former attorney for the group claims that the group is no longer active, and WTP has not responded to any of Motl’s rulings. According to Motl, “It’s the candidates who are going to bear the primary social debt for these actions. I’m not certain the non-candidate actors are going to be around.”