SD-61: Iannello Denounces Golisano PAC; Calls On Mesi To Turn Down Funds

by: robert.harding

Thu Jul 10, 2008 at 18:14:58 PM EDT

Michele M. Iannello, candidate for the 61st State Senate district, denounced the political committee formed by Tom Golisano, saying the contributions violate New York Election Law. Iannello called on the New York State Board of Elections and, the Office of the Attorney General to begin immediate investigations.

Golisano stated that he was depositing a check for $5 million dollars into his political committee, and press reports have said that Golisano would spend up to $1 million on behalf of candidate Joe Mesi. Iannello said that both would be in violation of campaign finance law.

"Just because Mr. Golisano and Mr. Mesi call it reform, doesn't make it so. In fact, it is just the opposite, it is nothing more than politics as usual and Mr. Mesi looks like just another politician with a with a price tag on him," said Iannello.

Golisano might be a Republican but he's not a traditional Republican. The only reason he turned Republican was for a possible gubernatorial run in 2006. That never happened.

That said, Iannello and her campaign have been outspoken on this issue and very critical of Golisano, especially when it comes to the questions of how legal this PAC is.  

Could Golisano And The WFP Team Up For Publicly Financed Elections?

by: robert.harding

Thu Jul 10, 2008 at 13:02:47 PM EDT

Politics makes strange bedfellows, and the strangest pairing to come down the pike in a while is probably that of Tom Golisano and the Working Families Party. I'm not sure they even know it, but these two have one thing in common, and together they are poised to make a huge impact on New York State politics.

I'm talking about campaign finance reform, or better yet - "public financing of elections. (PFE)" If there's one reform that could change the way the public views and participates in politics, it's PFE.  

In June, the Assembly passed a bill sponsored by Speaker Sheldon Silver called 2010 Campaign Finance Reform Act. It was pushed very, very hard by the WFP. It would establish a PFE system for the entire state similar to the "matching system" in place in New York City. It also has some aspects of the "clean money" grants system in place in Connecticut. All in all, it's a terrific piece of legislation and Silver deserves credit for investing time and effort in getting it passed. It still needs a little renovation before becoming law (in part because of the Supreme Court ruling on the "Millionaire's Amendment"), but it's an exceedingly strong foundation upon which to build.

What does this have to do with Tom Golisano? The big news this week was the announcement of his plan to put $5 million of his personal fortune behind candidates of his liking, potentially including several key Democratic challengers from upstate like Rick Dollinger (SD-56), Kathy Konst (SD-59), and Joe Mesi (SD-61). Other candidates will be considered if they align themselves with a platform supported by Golisano.

That platform Golisano is pushing an eight-point program under the banner of "Responsible New York." These points include property tax reform and government transparency. But the most important aspect of the Golisano proposal is his support for campaign finance and election reform.

The irony there is that Golisano is a billionaire who has his own corporation (PayChex) and owns the National Hockey League's Buffalo Sabres. Money, one would argue, is his most powerful tool. Yet, he supports campaign finance reform. His support, considering his stature, could be just what the public financing movement needs to boost their cause.

It isn't clear yet which of Golisano's eight issues he'll decide to focus on if his investment pays off and the Democrats do take back the Senate.  But if the Democrats do take power, it would mean that two important aspects of their victory -- the grassroots, on-the-ground campaign work (of the WFP) and the money (from Golisano) - would carry a strong PFE message.  Combined, it will encourage the Senate Democrats to join the Assembly and pass a groundbreaking public financing bill.

We need public financing of elections in this state. The Working Families Party sees it. Tom Golisano hopefully sees it. Both sides can come together. Maybe Golisano and the WFP could come together on other issues like a circuit breaker for property tax reform. But in the mean time, Golisano and the WFP could make a formidable team and make public financing of elections a reality in New York.

Golisano Won't "PAC" It In, But He Will Create An Independent Committee

by: robert.harding

Tue Jul 08, 2008 at 20:16:14 PM EDT

According to Liz, Golisano will create a "unauthorized multi-candidate political committee" that will use the name the PAC was going to - Responsible New York. That committee will allow Golisano to spend as much money as he wants.

However, Golisano will create a PAC called People for Responsible New York that will abide by the normal guidelines that a PAC must follow. But his committee will enable him to spend the millions he wants to and abide by all the guidelines.

Here is more from Liz's piece:

Such committees, which deal with mandated free speech requirements, merely have to register what candidates they are oppose or support and how much it has taken in and spent.

According to Pigeon, Golisano will still establish a PAC called People for Responsible New York, which will accept donations up to $100 and will make campaign donations (adhering to the existing campaign finance limits) to candidates Golisano is supporting.

One thing that is not clear is whether the fact that Golisano has already spoken to some candidates, plans to have candidates fill out questionnaires and might meet with them after they do so would disqualify him legally from claiming his committee is independent and unauthorized.

Brehem did not have an immediate answer.

Golisano and Pigeon maintain they are merely seeking out the viewpoints of candidates, but will be working alone in deciding whom to back and how to spend Golisano's money.

Needless to say, this could have been handled a little better. They should be able to recover and create this committee which would enable Golisano to invest as much money as he wants in candidates of his choosing.  

Candidates React To Announcement Regarding Golisano's PAC

by: robert.harding

Tue Jul 08, 2008 at 17:00:09 PM EDT

First, SD-56 Democratic candidate Rick Dollinger had this to say about Golisano's possible involvement.

"My campaign is about fundamentally changing the way business is done in Albany.  For too long, Republicans like Joe Robach have talked the talk but failed to deliver.  Our property taxes go up each year, our young people are forced to leave the state to find work, and more and more people are forced to choose between paying the rent and healthcare.  To the extent that Tom Golisano agrees with me on these issues, I enthusiastically welcome his support.  I think that Tom, like a lot of people, has come to the conclusion that the system we have in Albany is just not working, and that we're overdue for a change."

Dollinger was being mentioned as a beneficiary of Golisano's money with the possibility of Golisano giving up to $1 million to Dollinger. Still, it seems Golisano will hold candidates to his eight-point platform and Dollinger seems to be agreeable to that platform.

Michele Iannello had a different take. Iannello is facing off in a primary with Joe Mesi in SD-61. Iannello released this statement on today's developments.

"This is just more politics as usual.  Joe Mesi can't talk about changing Albany if he is going to allow special interests to buy his election. This blatant violation of campaign finance law is just another example of why we need someone in Albany who has fought for real reform. It also highlights the need to reform New York State's weak campaign finance laws, and I intend to announce a package of reforms to stop attempts like this to violate the law."

Iannello's campaign also issued a fact sheet defending their position, arguing that Golisano cannot contribute millions based on election law. Here are examples (from the fact sheet):

I. Tom Golisano Cannot Contribute More Than $150,000 to his "PAC":

The Election Law 14-116

     8. Except as may otherwise be provided for a candidate and his family, no person may contribute, loan or guarantee in excess of one hundred fifty thousand dollars within the state in connection with the nomination or election of persons to state and local public offices and party positions within the state of New York in any one calendar year. For the purposes of this subdivision "loan" or "guarantee" shall mean a loan or guarantee which is not repaid or discharged in the calendar year in which it is made.

The full fact sheet is below the fold.

No doubt this will draw mixed reviews. For candidates that will benefit from this, it is huge. For candidates that will be competing against candidates benefiting from Golisano's giving, it is a disadvantage.

More reaction to come. Stay tuned.  

Golisano To Give $5 Million To His "Responsible New York" PAC

by: robert.harding

Tue Jul 08, 2008 at 12:26:20 PM EDT

Irene reports over at CapCon that Tom Golisano will contribute $5 million to his Responsible New York PAC that will be given to candidates who are in line or close to in line with an eight-point platform. The platform is the following (from Irene's post):

The 8-point platform:

   * Responsible budgets (budget increases limited to the rate of inflation)
   * End to unfunded mandates
   * Property tax reform
   * Campaign and election reform (including redistricting reform)
   * Government employee compensation commiserate with private sector
   * Equitable distribution of economic development resources statewide
   * Government transparency
   * End back door borrowing

Very basic platform. The fourth point is an irony itself, considering the money that Golisano will be dishing out.

Golisano's PAC was announced last week by The Capitol. It has been said that he will give to Western New York candidates like Rick Dollinger (SD-56), Kathy Konst (SD-59) and Joe Mesi (SD-61). However, at today's press conference, he said that no endorsements have been made.

   * Golisano didn't rule out another gubernatorial run: "I think about it every day. But not now."
   * He's spoken with Kathy Konst, "Baby Joe" Mesi, and Rick Dollinger - all Democratic challengers to Republican incumbent senators - but he emphasized that no decisions have been made about endorsements. He wouldn't say that he wanted to see the Republican Senate majority overturned.
   * He said he would be supporting Democrats, Republicans, independents,  Independence candidates, anyone who would follow the platform."It depends on who they are and what their philosophy is."
   * He hasn't spoken with either Sheldon Silver's primary challengers, Luke Henry and Paul Newell, but he was heavily critical about the power that leadership has over individual legislators.
   * He maintains that his project is entirely legal, and his spokesman Steve Pigeon said he doesn't anticipate any legal challenges. However, there are nuances of his proposed PAC that don't coincide with the Board of Elections rules.
   * Golisano maintains that the work that is being done by the PAC will be entirely independent of the campaigns. The PAC will be sending out questionnaires to all candidates and based on their responses, and possibly interviews, the PAC will decide whether to work to support them. Golisano said that all of these activities would jive with election law, but how exactly that reconciles with the election law against coordination isn't yet clear.

The aforementioned Pigeon will co-chair the PAC along with Laureen Oliver, the former state Independence Party chairwoman. Pigeon's involvement could be called into question if money is given to Mesi considering it is fairly well-known in local circles that Pigeon is behind Mesi's candidacy.

We'll see how this PAC plays out and who gets the big money. It will be interesting to see if Golisano adds more money to this fund.  

Golisano To Form PAC, Not 527

by: phillip anderson

Wed Jul 02, 2008 at 15:08:14 PM EDT

Golisano Not Just Going To Back Democrats

Tom Golisano is preparing to send $1 million a race to help state Senate candidates in this  year's elections-but it won't just be Democrats.

Aides to Golisano said this morning that while Golisano is prepared to back three Democratic candidates in western New York-"Baby" Joe Mesi, Kathy Konst and Rick Dollinger-he will open up the wallet for Republicans who support his reform agenda.

Stories yesterday suggested that Golisano is out to flip the Republican-controlled Senate to the Democrats, something that would fly in the face of Golisano's long-held belief of the need for checks and balances in Albany.

...

Golisano is mum on his plans, but he's holding a press conference in Albany on July 8 to unveil his new political action committee-not 527.

Hmmmm...

More On Golisano's 527

by: robert.harding

Tue Jul 01, 2008 at 23:48:56 PM EDT

Rochester-area billionaire Tom Golisano plans to make a "major announcement'' about his involvement in this year's elections next week, an aide said today, and a published report said it's going to be good news for Democrats trying to win control of the state Senate.

Golisano, who has run unsuccessfully for governor three times and owns the Buffalo Sabres, may spend $1 million on each of several Democrats seeking to capture seats now held by Republicans, according to The Capitol, a magazine that covers state government.

Golisano aide Stephen Pigeon said today the announcement will be next Tuesday in Albany involving ''New York State government and politics.'' He wouldn't comment further and Golisano didn't immediately return a call seeking comment.

Democrat Richard Dollinger of Brighton, who is challenging Republican Joe Robach of Greece, as well as challengers for two Erie County seats now held by Republicans, could be beneficiaries of Golisano's largesse, according to the magazine, which cited an unnamed source.

First, some background on "Golisano aide Stephen Pigeon." Pigeon is said to be behind-the-scenes of the Joe Mesi campaign. So there is no surprise that once this 527 group comes to fruition, Mesi will be a beneficiary. That's big money for Mesi.

I have nothing against Golisano, especially as a Buffalo Sabres fan. I also like a lot of the business decisions he has made and his work with charities and his own foundation have been great for Western New York.

One of the more interesting things from The Capitol piece was this about Harry Konst, Kathy Konst's husband and campaign manager.

Harry Konst, who is managing his wife's campaign, claimed he has not discussed the Senate bid with her and said he did not know who Golisano is.

Wow. He's from the Buffalo area and doesn't know who Golisano is? Really?

Anyway, more candidates could be targets according to The Capitol. Dan Squadron could be a target. Other candidates - Democrats and Republicans alike - could be beneficiaries as well. Assembly candidates could be targeted too.

I must add this: As great as this may sound, it shows why the system is flawed. In reality, one man could buy three or four senate races (possibly more) for candidates in November. That is a scary thought. It's a great news story, but if we are going to push forward a clean money, clean elections platform in this state, we can't have candidates accepting up to $1 million from one of the richest men in New York.