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Lobbying and Ethics
August 15, 2005

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The Center for Public Integrity's report that the Empire State has the highest ratio of lobbyists to lawmakers in the nation must not have come as a shock to longtime observers of the Albany scene.   According to the Center’s report released last week, New York State has 18 lobbyists for every legislator. The number of lobbyists and the amount spent on lobbying has swelled over the years.  

While it's hard to say with certainty that New York is #1 in lobbyists – state laws define lobbying quite differently and have a wide range of disclosure requirements – the report should spark public interest.

A quick review of the statistics underscores why New Yorkers should care. At the dawn of the Pataki Administration for example, there were 1,930 lobbyists registered in New York. In 1994, roughly $39 million was spent lobbying in New York. In 2004, ten years later, that number had grown to 3,842 lobbyists and spending had mushroomed to over $144 million.

The number of lobbyists has jumped while the size of the state's legislative body has remained static.  In 2002, the State Senate added one seat (it is allowed to do so under the state constitution), so over the past decade the number of lawmakers has only gone from 211 state legislators to 212. Yet the number of lobbyists has doubled and the amount of spending has more than tripled!

As the numbers of lobbyists has increased, the competition among them for clients has also increased. So how do lobbyists gain an edge over a growing field of competitors?

In the marketplace, the product is what sells – and advertising is the vehicle for creating demand.   In lobbying, the "purchaser" (i.e., the client) has no idea of knowing which "product" (i.e., lobbyist) to "buy."  So clients are looking for the lobbyist with the best “access” to lawmakers. Thus, the lobbyist's pitch is based on the relationship of the lobbying firm to state lawmakers.

Some lobbyists base their pitch to would-be clients by “selling” their access developed through relationships – those who are former top aides, or those with family ties and business ties; others offer other "services" – like the firm of Wilson, Elser, et al. which runs one of the biggest PACs in Albany.

Once the client is secured, lobbyists use the full range of options available to them to influence lawmakers. For example, during the legislative session, New York State allows lawmakers to hold campaign fundraisers within walking distance of the state Capitol. If a legislator from Brooklyn holds a fundraiser in the Empire State Plaza, do you think that he or she is expecting to see constituents? No, these fundraisers are held for lobbyists. The same people appealing to them for favors during the day are giving our elected officials campaign contributions at night – and it’s perfectly legal.

In addition, lobbyists have tremendous freedom to shower legislators with gifts, when they are not attending fundraisers. Under the current interpretation of the lobbying law, there are no serious restrictions on legislators receiving gifts from lobbyists. According to the Lobbying Commission, New York’s law only limits lobbyists to handing out freebies to lawmakers as long as none of the receipts exceeds $75.

That’s right, under state law, a lobbyist can buy a legislator a $74 breakfast, a $74 lunch, and a $74 dinner all in the same day!

And if that’s not enough, legislators and lobbyists are free to engage in joint business ventures. Some legislators are members of law firms that are registered lobbyists!

Albany is a world of weak ethics and disgraceful campaign finance practices. Lobbyists develop competitive advantages by helping in lawmakers' reelection efforts and by helping to personally enrich lawmakers through gifts and business dealings.

State lawmakers deserve kudos for passing the lobbying reform bill this year.   But they still must address the much larger ethical issue of how best to limit the conflicts of interest raised by Albany's intense lobbying industry.

That’s all for now. I’ll be keeping an eye on the Capitol and will talk to you again next week.

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