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 Donors Drove Teachout Campaign

Campaign finance disclosures filed with the New York Board of Elections this week show that Zephyr Teachout relied heavily on small donations – contributions of $100 or less – to finance her primary challenge against Governor Cuomo in the final weeks leading up to the election. Teachout also spent significantly less than Cuomo over the course of the campaign, but the money she did spend was relatively more effective. As The Washington Post reports, Teachout spent just $1.57 per vote, while Cuomo spent $42.64 for each vote he received. Although she did not win the primary election, Teachout’s surprisingly strong showing was noteworthy because it demonstrates that a candidate can reach voters while focusing on small donors.

Political Corruption Not Unique to Albany, FBI Director Says

On a recent visit to his agency’s Albany field office, FBI Director James Comey said he doesn’t believe that official misconduct is a bigger problem in New York than in other states. The fact that the FBI is doing “lots of public corruption work” in “lots of state capitals,” he continued, shows ethics issues are not unique to Albany. On the other hand, State Integrity Investigation’s corruption risk rankings place New York among the worst states in the country. Certain candidates, like Anndrea Starzak who is challenging Senator Thomas Libous for his seat in the 52nd Senate District, are making public corruption a centerpiece of their campaign platforms. Starzak has campaigned on ethics reform, noting that Albany has seen 26 State legislators leave office due to criminal or ethical misconduct since 1999.

TV Ad Spending Floods New York Airwaves

A study conducted by the Center for Public Integrity and Kantar Media/CMAG estimates that candidates running for statewide office have spent $14.5 million in political ads so far this year. The vast majority of that money has been spent on the race for governor, and most of it by Andrew Cuomo. Despite the high level of spending already recorded this cycle, Cuomo reportedly still has $26 million on hand for the general election against Rob Astorino, which is more than the total he spent during his entire 2010 campaign. If past elections are any indication of what is to come, ad spending will spike just before the election in November, meaning that New Yorkers can anticipate even more political ads than normal this fall on TV as well as radio.

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

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

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

Working Families Party Nominates Cuomo for Governor

At the Working Families Party’s convention this weekend, the progressive third party nominated Governor Andrew Cuomo, giving him its ballot line in the upcoming gubernatorial election. Cuomo captured 58 percent of the state committee’s weighted vote, while Fordham law professor Zephyr Teachout—who has challenged Cuomo for his failure to address legislative corruption—received 41 percent. In a video message, the governor informed WFP delegates that he is firmly committed to passing progressive priorities including public financing of elections, a higher minimum wage, the Dream Act, and women’s equality initiatives. “To make this agenda a reality, we must change the leadership of the Senate,” he stated. For the first time, Cuomo openly said that he would oppose the Senate Independent Democratic Conference: “Either they announce that they agree to come back to the Democratic Party, or they will face primaries this year from our unified Democratic coalition.” Teachout is still considering contesting Cuomo in the Democratic primary. She would need 15,000 signatures on nominating petitions by July 9^th to get onto the ballot.  

Working Families Party Endorses Challengers to Independent Democratic Conference

In addition to Governor Cuomo, the Working Families Party (WFP) endorsed candidates challenging two members of the Senate Independent Democratic Conference (IDC). The IDC –composed of five breakaway Democrats—rules the state senate in a coalition with the Republicans. Former New York State Attorney General Oliver Koppell, running against IDC head and Senate Majority Co-leader Jeffrey Klein, garnered the endorsement of the WFP for the 34^th district in the Bronx. However a number of unions in the party, including the Hotel Trades Council, the United Federation of Teachers and the Mason Tenders, backed Klein instead. Koppell has said that legislative priorities, such as public financing of elections and the Dream Act, would have passed if the Democrats controlled the chamber instead of the IDC. A spokeswoman for the IDC said that Senator Klein “is a lifelong Democrat who is not walking away from his strong record of core Democratic legislative accomplishments and looks forward to a healthy debate of ideas…in the coming election.” In the 11^th district, located in Queens, the WFP endorsed former New York City Comptroller John Liu over the current incumbent, IDC Senator Tony Avella.

Buffalo News: Without Aggregate Contribution Limits, Reform Even More Critical

In an editorial on Monday, the Buffalo News criticized the New York State Board of Election’s decision to not enforce the state’s $150,000 aggregate contribution limit, saying it sends a clear message that the system is “broken.” The announcement from the state board came following two recent court decisions concerning aggregate contribution limits. The upstate newspaper argued that the continual erosion of campaign finance regulations would cede even more power to wealthy special interests that wish “to buy influence across the state.” The dominance of big money in state politics will generate greater opportunities for legislative malfeasance, exacerbating New York’s culture of corruption. The editorial concluded that reform is now critical, starting with lowering the sky-high individual contribution limits.  

New York Elected Officials Spent Campaign Funds on Legal Defense

According to the New York Public Interest Research Group (NYPIRG), New York State elected officials have spent more than $7 million in legal fees using their campaign funds in the past 10 years. Unfortunately, many lawmakers in Albany have faced a plethora of legal problems related to corruption or other unethical or illegal conduct in recent years. Under state law, politicians are not prohibited from using their campaign funds for legal defense. Former state Senator Carl Kruger, for example, faced one of the costliest legal battles, and spent $1.7 million from his war chest on defense attorneys. In 2012, he was sentenced to prison for corruption related to bribes. Bill Mahoney, NYPIRG’s research coordinator, said that legislators and Governor Cuomo have “made promises they are going to fix the [campaign finance] system…and this is something we strongly encourage them to include.”

Money in New York Politics

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

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

NEW YORK

Gov. Cuomo Discusses Passing Reform This Session with Activists

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

Republican State Comptroller Nominee to Accept Public Financing

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

U.S. Rep. Grimm’s Ex-Girlfriend Pleads Not Guilty to Violating Campaign Laws

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

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.

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

Philanthropic, Civic Groups Send Letter to Cuomo Urging Public Financing of Elections

Major philanthropic organizations and numerous environmental and civic groups sent a letter to Governor Cuomo on Tuesday urging him to support the public financing of state elections. “We are concerned that the views you and many other leaders have articulated will have a very hard time being translated into action unless systematic reform occurs in New York,” they stated. The Moreland Commission to Investigate Public Corruption is set to release a report of its findings and recommendations by December 1. It has been investigating state campaign finance and corruption laws and practices for the past six months. Among the signatories to Tuesday’s letter were the Rockefeller Brothers Fund, the New York Foundation, and the Park Foundation. Environmental groups such as the Natural Resources Defense Council and the Sierra Club also voiced their concerns in the letter.

DiNapoli and Stringer Join Tele-town Hall to Promote Comprehensive Reform

On Tuesday evening, New York State Comptroller Thomas DiNapoli, New York City Comptroller-elect Scott Stringer, and a host of good-government groups held a “telephone town hall” to encourage citizens to demand small donor-financed elections in New York State. Addressing the crowd, DiNapoli said that mega checks to state politicians in Albany are “downing out the voices of everyday New Yorkers and it’s distorting our priorities.” Regarding concerns about the use of public funds for election campaigns, DiNapoli added that with a “$135 billion budget…spending $20 or $30 or even $40 million, that’s really a small investment with a tremendous payback.” Stringer informed the callers that matching small donations with public funds helped him challenge Eliot Spitzer, a self-financed opponent who spent over $10 million in the race. “[I]f it were not for the New York City campaign finance program the fact that we could continue to raise money — $50 or $100 or $200 at a time — knowing that money would be matched six to one giving us a shot at this race we would have been doomed from the start,” he stated. The reform groups urged the Moreland Commission to endorse comprehensive campaign finance reform, including public financing, as a solution to change the pay-to-play culture in Albany.

Lawmakers Reject Corruption Commission’s Request for Disclosure of Outside Income 

Lawyers representing the New York State Assembly and Senate jointly filed papers in Manhattan Supreme Court on Friday challenging the Moreland Commission’s subpoenas seeking information on outside income of legislators. Albany lawmakers work part of the year and are allowed to seek private employment. The commission asserts that disclosure is necessary for the sake of transparency and preventing potential conflicts of interest. The initial request, for legislators earning more than $20,000 in 2012 from private practice, was sent out in August. In response to a rebuke by lawyers representing the Senate Majority Leaders – a coalition of Republicans and four break-away Democrats – the commission subpoenaed the firms employing the lawmakers. New York State Attorney General Eric Schneiderman said he is confident that the commission would prevail in court.

NATIONAL

House Ethics Committee Drops Investigation into Taiwan Trips

After an investigation spanning more than a year, the House Ethics Committee dismissed charges against Rep. Bill Owens (D-NY) and Rep. Peter Ruskim (R-Ill.) last Friday. Both cases involved 2011 trips to Taiwan.  The travel’s legality depended on who organized and paid for the trips. A private university in Taiwan allegedly sponsored both trips, but an initial investigation by the independent House of Congressional Ethics found “substantial reason to believe” that the Taiwanese government paid, which would count as an impermissible gift from a foreign government under Congress’s rules. The Ethics Committee concluded there was insufficient evidence to continue the investigation.  Its report states that Owens “should have known” the trip was improper due to the continued involvement of the lobbying firm Park Strategies, which represented the Taiwanese government for $20,000 a month at the time of the travel. However, the Committee will not pursue charges against Owens since he paid back the cost of the trip.

House Passes Expansion of FEC Disclosure Fines

On Monday, the House of Representatives passed a bill that would expand the Federal Election Commission’s administrative fine program. The administrative fine program started in the 1999-2000 election year, and established a schedule to fine candidates and campaigns for failing to file disclosure reports on time. The schedule determines fines automatically based on the length of the delay, the amount of data missing, and any prior history of violations. The program will end December 31^st of this year without Congressional reauthorization. All nine members of the House Administration Committee sponsored H.R. 3487, introduced last Thursday and passed days later in a voice vote.  The bill extends the FEC’s administrative fine authority through the end of 2018, and expands it to cover more types of organizations, including groups making independent expenditures or electioneering communications. A supporter, Rep. Candice Miller (R-Mich), called the bill’s recommendations “a consistent and transparent process” for assessing filing violation fees.

Mega Donor Sheldon Adelson Turns to Online Gambling Ban

In 2012, billionaire Sheldon Adelson set a new record in political donations, giving $70 million to GOP candidates.  Adelson’s fortune made him a major political player, and he is now harnessing his political clout to protect its source:  the U.S. casino industry.  Adelson claims that internet gambling, recently legalized in several states, will endanger the industry’s business model and draw minors and the socially-vulnerable into gambling. He is currently hiring lobbyists and forming an advocacy group, Coalition to Stop Internet Gambling, to make his case in Washington. Other casinos and lotteries, which see internet gambling as a potential revenue source, are ready to push back with lobbying efforts of their own to legalize regulated internet gambling. With Adelson openly committed to spending “whatever it takes” to stop internet gambling, the fight promises to be an expensive one on both federal and state levels. 

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

U.S. and NY Attorneys Testify at Moreland Commission’s First Hearing

The Moreland Commission to Investigate Public Corruption held its first hearing in New York City on Tuesday. The Commission, composed of district attorneys, law professors and private sector lawyers, was appointed by Governor Cuomo to investigate corruption in the state legislature. Federal prosecutors, state district attorneys, reform organizations, and members of the general public testified at the hearing. Preet Bharara, the U.S. Attorney for the Southern District of New York who is leading the corruption cases against lawmakers caught taking bribes earlier this year, was the first speaker. He decried the “unacceptable level” of corruption in Albany. Under new policies, his office will use civil forfeiture to prevent convicted public officials from collecting a tax-payer funded pension. Loretta Lynch, U.S. Attorney for the Eastern District of New York, called for greater financial disclosure by legislators to reduce the potential for conflicts of interest. Manhattan District Attorney Cyrus Vance Jr. recommended changes to state laws that would ease the burden for prosecutors trying corruption cases.

Good Government Groups, NYC City Councilman Ask Moreland Commission to Consider Comprehensive Campaign Finance Reform

Good-government groups and a New York City Councilman were also present at the Moreland Commission hearing on Tuesday. Republican Eric Ulrich (CD-32) testified about the benefits of the city’s public matching system, which reform organizations have been pushing as a model for the state. The small donor matching system, which provides $6 for every $1 raised by a candidate up to $175, allowed Ulrich to effectively compete against an incumbent by building a broad base of grassroots support, he said. In a State Senate race however, his prospects were diminished due to the influence of large contributors. Following Ulrich, Larry Norden and Ian Vandewalker at the Brennan Center for Justice informed the Commission that comprehensive campaign finance reform was necessary to address the scale of corruption in Albany. They singled out 14 tax credits in their analysis that are reauthorized every few years to the benefit of industries that make significant campaign contributions. Bill Samuels, co-founder of Effective NY, urged the Commission to examine campaign contributions by groups using limited liability corporations to evade donation limits. Samuels also requested further investigation into political party “housekeeping accounts,” which have become a means for transferring contributions to party-favored candidates.

NYC Public Financing System Kept Focus on Constituents

Although outside spending played a role in New York City’s first citywide election since the Citizens United decision, Mark Schmitt argues in the New Republic that public financing helped keep the focus on small donors. Public financing allowed candidates like Scott Stringer and Joe Lhota to compete against well-known, self-financed millionaires. Unlike many jurisdictions throughout the country, the city requires outside groups to make detailed disclosures of their donations and expenditures, with data available online. In total dollar terms, the ratio of candidate spending to outside dollars in New York City was $105 million to $12.7 million—over eight to one. By contrast, in the 2012 U.S. Senate races, this ratio was only two to one. Even with the ever-increasing threat of independent expenditures, almost all candidates participated in the public financing program, likely because the amplification of grassroots support through public matching funds is an effective way to defend against independent spending.

Primary Winners, Common Cause Praise Public Financing Model

Around 10 victors from the City Council primary election held a press conference outside City Hall with Common Cause/NY on Monday. Susan Lerner, executive director at Common Cause/NY, said that the races demonstrated that New York City’s public campaign financing model works well and should be adopted by the state. The attendees pointed out that the influence of  independent spenders like Jobs for New York, a group backed by real estate developers, was blunted by the public funding system. City Council nominees including Ben Kallos (CD-05), Margaret Chin (CD-01), Laurie Cumbo (CD-35), Mark Levine (CD-07) and Carlos Menchaca (CD-38) were present to show their support for the City’s campaign finance system. Kallos emphasized that public campaign financing allows “idealist candidates who are reformers to get elected without being in debt to the very special interest we are running against.”

Post-Star Commends Moreland Commission’s Investigation

The Post-Star in Glens Falls, New York, commended the work of the Moreland Commission to Investigate Public Corruption in an editorial last week. Legislators in Albany perform public service part-time from January to June each year and are allowed the hold employment positions at law firms, companies and government agencies. In early September, the commission requested state lawmakers provide information regarding outside employment if they were compensated more than $20,000 in 2012, as well as a description of the work performed. “It is a level of transparency that is long overdue and would immediately expose any patronage going on in Albany,” the Post-Star stated.

NATIONAL

Dark Money Groups May Have Violated IRS Rules

A Center for Responsive Politics investigation shows that a large contingent of dark money groups spent a significant portion of their resources on political efforts in defiance of the law. “Social welfare” organizations (501(c)(4)s) and industry trade groups (501(c)(6)) do not have to disclose their donors so long as the money they spend on elections doesn’t constitute a majority of their budget, according to a common interpretation of Internal Revenue Service (IRS) rules. The CRP merged separate datasets from the IRS and the Federal Election Commission to paint a complete picture of expenditures by such non-profits. The groups reported more than $51.6 million in political spending to the FEC, but only $24 million to the IRS over an identical timeframe. The discrepancy is because these entities channeled funds to other similar non-profits, allowing them to evade IRS disclosure rules. For example, the 60 Plus Association, which spent millions in 2012 supporting conservative candidates, received major donations from three non-profits: the Center to Protect Patient Rights, TC4 Trust and Free Enterprise America – two of which are now defunct. Yet these three organizations did not consider their donations to be political expenditures on their 990 IRS filings. If such hidden spending is taken into account, then nine groups, including the Crossroads GPS, American Action Fund, and Green Tech Action Fund, may be in danger of exceeding the legal IRS limit on political spending.

Virginia Gubernatorial Race Inviting Big Independent Spenders

The competitive race for governor in Virginia is inviting several outside groups into the political battle between Democratic businessmen Terry McAuliffe and Republican Attorney General Ken Cuccinelli. Citizens United, the group made famous by the Supreme Court’s Citizens United v. FEC decision, is the second biggest spender in the race, after the Republican Governors Association. It will launch a $375,000 advertisement campaign criticizing McAuliffe’s business record at his electric car start-up and his support for President Obama’s healthcare overhaul. The Ending Spending Action Fund, connected to Chicago Cubs owner and TDAmeritrade founder Joe Ricketts, will be spending $200,000 on ads opposing McAuliffe, including $10,800 to air 13 spots in northern Virginia. Meanwhile, the Northern Virginia Technology Council’s decision to endorse Cuccinelli was resisted by pro-McAuliffe legislators, who threatened that the group’s legislative concerns will be ignored in the state senate. “The response [from legislators] will be frigid and doors will be closed,” an email from state Senator Janet D. Howell (D-Fairfax) stated.

McCutcheon v. FEC Decision Could Allow Donors to Evade Individual Contribution Limits

In October, the U.S. Supreme Court is set to hear McCutcheon v. Federal Election Commission. The case, brought by prominent Alabama Republican donor Shaun McCutcheon, challenges the aggregate contribution limits for federal elections. Candidates are limited in terms of how much money they may accept from one individual. Individuals are also restricted by the total amount they may donate during an election cycle – currently the limit stands at $123,200 total for all candidate committees, PACs and political parties. Aggregate contribution limits prevent the circumvention of individual contribution limits in a process detailed by the Center for Responsive Politics. Leadership PACs and joint fundraising committees enable candidates and parties to hold fundraisers and split the proceeds as they wish, with money frequently going to party-favored candidates afterwards. Big donors already exert significant control over our elections. Poll after poll shows that Americans disfavor the heavy-handed influence of special interests and big donors on Congress. Only 646 donors in the 2012 election cycle reached the aggregate contribution limit of $117,000, providing a total of $93.4 million to candidates and committees in federal elections. And Shaun McCutcheon’s lawsuit threatens to amplify our representatives’ reliance on these mega-donors.

NJ Pay-to-Play Rules Don’t Stop Independent Spending

A Republican Governors Association fundraiser is being scrutinized by the New York Times after revelations that the organization made $1.7 million in expenditures in support of New Jersey Governor Chris Christie’s reelection campaign. The fundraiser, led by Christie, at the Liberty National Golf Course, involved individuals prohibited from making large contributions directly to the governor under New Jersey’s pay-to-play rules. Christie has helped the Republican Governors Association amass $1.65 million from donors in New Jersey, a third of which came from people and companies doing business with the state. Reform groups, such as Citizens Campaign, fear that the transactions allow contractors, lobbyists and major donors to circumvent pay-to-play rules. Christie’s competitor, state Senator Barbara Buono, has also benefited from outside spending. One New Jersey, a teachers’ union-backed organizations, which has been attacking Christie for vetoing a minimum wage increase and opposing higher taxes on the wealthy, has spent $2.8 million on radio and TV ads.