Hochul follows familiar history
Governor outsources her ’22 campaign fundraising to Albany’s top lobbyists
Major political corruption scandals in New York have often shared a common denominator: high-powered lobbyists.
Former Gov. Andrew M. Cuomo’s administration was rocked by two trials centering on lobbyist Todd Howe, including one where his campaign fundraising for Cuomo was a major element. Lobbyists also were significant background players in the criminal cases against former Assembly Speaker Sheldon Silver and former Senate
Majority Leader
Dean Skelos.
The synergy between lobbyists and lawmakers is not new, of course, and dates back decades.
In that context, Gov. Kathy
Hochul has embarked on an aggressive and notable fundraising strategy:
Her campaign is outsourcing a significant chunk of its money hunt to Albany’s top lobbying firms, including a few featuring partners that were key witnesses caught up in past corruption cases.
At her swearing-in ceremony in August, she said one of her priorities was “changing the culture of Albany.” But as she seeks to win a full term as governor next year, her campaign fundraising tactics — which are legal — have accelerated a longstanding practice in the political culture of state politics.
Already, eight lobbying firms with major Albany operations have held fundraising events for Hochul, according to people with knowledge of these efforts. These types of events have usually been exclusive, with attendance limited to the lobbying firm and its clients, many of whom have extensive business interest before Hochul’s administration.
For private events where Hochul appears in person, her campaign has in at
When it comes to fundraising events, they are always organized by campaign staff and we hold ourselves to the highest standards on ethics and disclosures.”
— Brian Lenzmeier, Hochul campaign manager
least some instances asked the lobbying firms to commit to raising at least $250,000.
The firms hosting Hochul’s fundraisers are said to have included Albany powerhouses such as Hinman Straub, Brown & Weinraub, Avella Dickinson, Mercury Public Affairs and Bolton-st. John’s.
“We are putting together a strong, diverse and well-funded campaign, which will be critical to communicate with voters,” Brian Lenzmeier, Hochul’s campaign manager, said in response to questions from the Times Union. “When it comes to fundraising events, they are always organized by campaign staff and we hold ourselves to the highest standards on ethics and disclosures.”
Like her predecessors, Hochul has pledged that political donations will not influence her political decision-making.
For her campaign, the tactic is to outsource a significant amount of work from the campaign to lobbyists, allowing the fundraising to proceed more rapidly in a compressed election calendar ahead of June’s Democratic primary. That may prove important for a politician whose career — spanning terms as an Erie County clerk and then a member of Congress — was centered in Buffalo, outside the fundraising hub of New York City.
The urgency to raise money is only likely to intensify after state Attorney General Letitia James announced her bid for governor on Friday.
Veteran Albany lobbyist James Featherstonhaugh — who declined to say whether his firm had hosted a Hochul fundraiser — said he does not find the governor’s fundraising strategy notable.
“Lobbying firms have been holding receptions that they organize for as long as I can remember,” Featherstonhaugh said. “And I doubt anybody can remember any longer than I can.”
During her first two months in office, Hochul has sought to break from other Cuomo practices by making moves to improve government transparency to workplace culture. Yet concerning campaign fundraising, Hochul has sought to emulate Cuomo — one of the most prolific campaign fundraisers in the country — and according to published reports has been trying to amass $10 million in new campaign funds by year’s end, $25 million in total. That goal may be attainable due to the high contribution limits in New York, which currently allow an individual to give nearly $70,000 to Democratic candidates for governor.
The finance director for Hochul’s campaign is the former deputy finance director for Cuomo’s committee. Top fundraising consultant Tucker Green has also been retained by Hochul’s campaign. Cuomo’s campaign was also said to at times set fundraising commitments for events held by lobbying firms, though one person recalled the commitment as typically $100,000.
Hochul, in addition to the lobbying firm fundraising, last month held a campaign meetand-greet event with potential donors in the Orthodox Jewish community, which was organized by a nonprofit that lobbied for $25 million in grants that Hochul had announced the same day.
Cuomo faced criticism for raising millions from people and entities with business before the state. He was at times known to have powerful state government figures attend his fundraising events, including budget director Robert Mujica, giving attendees an extra degree of access to government decision-makers. In that sense, Hochul’s campaign is breaking from a Cuomo practice: Government officials besides Hochul have not attended any of the fundraisers, her campaign said.
“The governor travels with a body person, but that person does not participate in or staff fundraisers,” Lenzmeier said, referring to a personal aide.
After this article’s publication on Monday, Hochul was asked at a news conference whether she had outsourced campaign fundraising to lobbying firms.
“My message to anyone who wants to support me is very clear: Thank you for investing in good government,” Hochul told reporters in New York City. “That’s it. So we need to raise, (and) will raise, the resources I need to win this election, and continue having conversations about public financing. So the next time people want to run, this will not be a barrier to anyone.”
The Hochul events have not been publicly disclosed by her campaign, though the donors will become public when her next campaign finance filing is due in January. In New York City elections, there is a law requiring campaign “bundlers” — people who raise money en masse for a campaign — to disclose their contributions raised. No such disclosure law exists for state-level elections, and the details of how lobbyists have raised money for Hochul are not required to be made public.
Last week, Hochul publicly released a memorandum signed by her top aide, Secretary to the Governor Karen Persichilli Keogh, stating the secretary will recuse herself from decisionmaking on all matters related to her husband, Michael Keogh, who is a lobbyist at Bolton-st. Johns.
Two nights earlier, Bolton-st. Johns partner Emily Giske held a maximum $25,000-per-plate fundraiser for Hochul in Manhattan. That fundraiser, exclusive to the lobbying firm and its clients, was first reported by the New York Post.
For elected officials, questions of undue influence exerted by lobbyists are generally unwelcome. But for lobbyists, the perception of close relationships with elected officials can be a selling point to potential clients, and an intimate fundraiser with a politician can be a demonstration of such access.
Private fundraising events for politicians are often initiated by the lobbying firms. The money is usually principally raised from their own long roster of clients, who then attend the events. If the firm falls short of the amount committed to a campaign, lobbyists may chip in to make up the difference.
While generally unstated in the process of handing over checks, many lobbyists hope campaign donations bring a degree of goodwill with politicians. For clients, donating at political fundraisers could mean a few minutes of face time with Hochul, an advantage over sending a check from afar.
“In terms of the governor’s fundraising approach, she’s following a well-trod path,” said Blair Horner, executive director of the New York Public Interest Research Group. “Like a political version of Willie Sutton, she’s going where the money is.”
Lobbying firms have been holding receptions that they organize for as long as I can remember. And I doubt anybody can remember any longer than I can.”
James Featherstonhaugh, Albany lobbyist