Tag Archives: dark money

How Newt Gingrich’s Language Guru Helped Rebrand the Kochs’ Message

Mother Jones

For the Koch brothers’ donor network, the 2012 elections were a keen disappointment. Not only did they lose what Charles Koch had famously billed as the “mother of all wars” to oust Barack Obama, but they poured some $400 million into electoral and advocacy efforts with, at best, lackluster results in federal and state races, leaving a number of their investors and operatives unhappy.

Fast-forward to 2014, and the Koch network seems to be riding high. Having budgeted nearly $300 million for advocacy and political drives, with a bigger field operation and better data to mobilize conservative voters, the network helped the GOP capture the Senate, expand the House majority, and re-elect Koch-favored politicians like Wisconsin Governor Scott Walker. Three of the new GOP senators—Arkansas’ Tom Cotton, Colorado’s Cory Gardner and Iowa’s Joni Ernst—recently attended Koch policy and fundraising retreats; at the network’s Dana Point, California confab this past June, all three heaped praise on the assembled donors and Koch operatives.

What changed? Of course, the Koch network—and the GOP generally—capitalized on public dissatisfaction with President Obama, the “six year itch” most two-term presidents face, and a bad electoral landscape for Democratic Senate candidates. But the Kochs and their allies also learned from their past mistakes. They’ve used the last two years to adapt, refine, and expand their operations with an eye to sharpening their anti-big government messages to appeal to more voters. The Koch network, one donor told me, has been focused laser-like on “trying to perfect their language.” For help, they have turned to an A list of conservative political consultants including the man best known for selling the nation on Newt Gingrich’s Contract with America: Pollster and spinmeister Frank Luntz.

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How Newt Gingrich’s Language Guru Helped Rebrand the Kochs’ Message

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4 Key Takeaways About Scott Walker’s Alleged "Criminal Scheme"

Mother Jones

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On Thursday, a federal judge unsealed a batch of documents shedding light on a secret investigation that has dogged Wisconsin Gov. Scott Walker and some of his conservative allies since the summer of 2012.

Prosecutors are probing whether Walker and two of his aides illegally coordinated with outside groups—including the Koch-backed Americans for Prosperity—to fend off a wave of recall elections in 2011 and 2012. This kind of probe, conducted in secret, is known in Wisconsin as a “John Doe.” It is spearheaded by Francis Schmitz, a former federal prosecutor who was on George W. Bush’s shortlist to be US attorney in Wisconsin’s Eastern District. The investigation was initiated by the Milwaukee County district attorney’s office, which is led by Democrats.

Here are four key takeaways from the newly released documents:

1) Walker and two aides allegedly ran a “criminal scheme”

Prosecutors allege in the documents that Walker, his campaign committee, and two close aides, RJ Johnson and Deborah Jordahl, ran a “criminal scheme” using dark-money nonprofit groups to evade state election laws. Their goal: Defend Walker and a group of state lawmakers facing recall elections in 2011 and ’12.

The documents describe a web of 12 nonprofit groups that closely coordinated their fundraising and spending. Prosecutors say Walker, Johnson, and Jordahl presided over this web of groups. The documents quote a May 2011 email sent by Walker to GOP operative Karl Rove about the coordination plans: “Bottom-line: RJ Johnson helps keep in place a team that is wildly successful in Wisconsin. We are running 9 recall elections and it will be like 9 congressional markets in every market in the state (and Twin Cities).”

In a statement, Walker said: “The accusation of any wrongdoing written in the complaint by the office of a partisan Democrat district attorney by me or by my campaign is categorically false. This is nothing more than a partisan investigation with no basis in state law.”

2) A conservative leader voiced concerns about coordination between outside groups and Walker

The documents show that the Wisconsin Club for Growth acted as a conduit for funneling dark money to pro-Walker and pro-GOP groups. It also ran its own ads defending Walker and his policy agenda, which included a controversial budget-repair bill that limited bargaining rights for public-sector workers.

Wisconsin Club for Growth’s activities had at least one conservative leader worried. “Notably, prior to the 2011 Wisconsin Senate recall elections, the national Club for Growth organization raised concerns about coordination or interaction with Wisconsin Club for Growth and Friends of Scott Walker as early as 2009.”

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The documents cite a comment by the national Club for Growth’s then-director, David Keating, who said he had “legal concerns” about Wisconsin Club for Growth ads that featured Walker.

3) Walker’s alleged coordination scheme was an expansive, all-hands-on-deck effort

A quick bit of history: In early 2011, Walker introduced Act 10, the anti-union bill that curbed workers’ rights. Democrats and labor unions reacted by organizing massive protests, then sought retribution by recalling state lawmakers who’d voted for the bill.

The documents reveal, in the clearest detail yet, the extent to which Walker, Wisconsin Republicans, and a slew of dark-money nonprofit groups rallied to fend off those recall efforts. RJ Johnson, a Walker confidant and a central player in the coordination probe, used the Wisconsin Club for Growth to coordinate with the Koch-backed Americans for Prosperity, the national Club for Growth, the Republican Party of Wisconsin, the Republican State Leadership Committee, and the Republican Governors Association. It was a murder’s row of conservative players who all pitched in to help preserve the GOP majorities in the Wisconsin legislature and to keep Walker, a rising GOP star, in office.

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4) All of this information may be for naught

Something to remember amidst the frenzy surrounding the release of the new documents: The John Doe probe into Walker and his allies is almost dead.

The pushback has been led by Eric O’Keefe, a director with Wisconsin Club for Growth who has fought the probe every step of the way, selectively leaking documents to the Wall Street Journal editorial board and suing in court to halt the investigation. And he’s having success: The probe is temporarily on hold while a federal judge studies his lawsuit. O’Keefe say their activities zeroed in on by prosecutors weren’t illegal because the groups in question coordinated on issue-based activities, not expressly political work. He also argues that the John Doe probe violates his First Amendment rights to free speech.

So far, a state judge and a federal judge have sympathized with O’Keefe’s argument, saying that prosecutors have failed to make the case for illegal coordination. The investigation of Walker and his allies is still alive, but its prospects don’t look good.

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4 Key Takeaways About Scott Walker’s Alleged "Criminal Scheme"

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New Ad Hammers Gov. Andrew Cuomo For Abandoning His Pledge to Fight Corruption

Mother Jones

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When Gov. Andrew Cuomo (D-N.Y.) signed his new $140 billion budget into law last week, he hailed it as a “grand slam.” For New York State’s ethics reformers and good government groups, however, the budget was an epic flop. And now one national pro-reform group is planning to hammer Cuomo on the airwaves for failing to make good on his pledge to overhaul the state’s cash-fueled, noxious brand of politics.

The new ad—paid for by the Public Campaign Action Fund, a non-profit funded by individuals, labor unions, and foundations—blasts Cuomo for signing a budget that doesn’t include a so-called fair elections system for all statewide races. (The budget instead features a pilot program that half-heartedly applies the fair elections model to only this year’s state comptroller race.) The ad also hits Cuomo for eliminating a commission—created by the governor just last year—devoted to rooting out corruption in state government. Public Campaign Action Fund has bought nearly $300,000 worth of airtime to run the ad, starting Saturday, for nine days in the Syracuse and Buffalo media markets.

The ad’s narrator says:

When Governor Cuomo introduced his ethics and reform plan, it was going to clean up Albany. But he let the rule limiting campaign contributions get cut. Then the commission that was supposed to investigate corruption in state government got cut. And the promise to reduce the influence of big money in all state races? All cut, except for one office. And now the governor says he’s proud of what’s been achieved? Gov. Cuomo, get back to work and deliver the reform you promised.

Reform groups had pressed especially hard this year for Cuomo and the New York State legislature to overhaul how state elections are funded by implementing so-called fair elections, a campaign funding system that rewards candidates who accept lots of small donations by matching those donations with public money. This type of system is already used in New York City, where it helped progressive Bill de Blasio become mayor.

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New Ad Hammers Gov. Andrew Cuomo For Abandoning His Pledge to Fight Corruption

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How Two Hillary Clinton Superfans Became Super-PAC Power Players

Mother Jones

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He’s a 28 year-old reserve police officer completing a bachelor’s degree in criminology at Virginia’s George Mason University. She’s a 62-year-old Eleanor Roosevelt scholar and history professor at George Washington University in DC. Adam Parkhomenko and Allida Black are unlikely friends; they are the even unlikelier masterminds of Ready for Hillary, a super-PAC that has risen from rag-tag origins to become a central component of Hillary Clinton’s shadow presidential campaign-in-waiting.

Parkhomenko and Black fall well outside the Clintons’ rarefied inner circle of advisers, consultants, fund-raisers, and confidantes. Both are Hillary super fans who until very recently were political neophytes. Yet since co-founding Ready for Hillary in January 2013, they’ve managed to raise $4 million, which they are channeling into building a massive database of supporters and volunteers that will become the foundation for Clinton’s presidential run if she jumps into the race. (Within the Ready-for-Hillary world, there’s little doubt that leap will come.) Parkhomenko and Black have also attracted key Clinton aides and allies to their super-PAC and have, thus, obtained the unofficial blessing of the Clintons themselves. These two groupies have worked their way backstage to hang out with the band.

Parkhomenko and Black first met in 2003 at a Halloween party hosted by Jim Turpin, then-chair of the Arlington County Democrats in Virginia. Parkhomenko was a 17-year-old community college student then, but he was already a Hillary Clinton crusader. That fall, he had created a website, VoteHillary.org, featuring a petition urging Clinton to enter the 2004 presidential campaign. It garnered over 100,000 signatures.

“I liked him,” Black recalls of that first encounter, “because he pushed back with confidence and not with arrogance, which for a 17-year-old is a stunning feat.” The two established a close rapport, even though Black found his notion of online organizing a tad naïve. “She’s been one of my best friends since I met her,” Parkhomenko says. “We clicked.”

Parkhomenko’s online campaign failed to sway Clinton, but the effort got him noticed. He earned a Washington Post Magazine profile from Mark Leibovich. A framed copy signed by Clinton (“Adam—Thanks for believing!”) now hangs in Parkhomenko’s Ready for Hillary office.

Parkohmenko’s pro-Hillary fervor also drew attention from HILLPAC, Clinton’s political action committee. In December 2003, the group reached out to ask if he wanted to volunteer for the PAC. He accepted the invitation, put his community college classes on hold—”Hillary would always ask about school, almost as much as my mom,” he says—and soon worked his way up to full-time staffer.

HILLPAC was a small operation, merely four or five employees, and Parkhomenko split his time between the PAC and Friends of Hillary, Clinton’s Senate reelection committee. He worked advance for Clinton events, wrote thank-you notes, and handled scheduling. He had been brought in by Patti Solis Doyle, a longtime Clinton hand—she worked as Hillary’s scheduler in 1992—who oversaw the PAC and the election committee. Solis Doyle referred to Parkhomenko as her “chief of stuff.”

When Clinton announced her bid for the presidency in 2007, Solis Doyle was tapped as her campaign manager. Parkhomenko became Solis Doyle’s assistant—the gatekeeper to the gatekeeper of the presidential candidate. Parkhomenko was known throughout the campaign as Solis Doyle’s right hand, which came back to bite him when Solis Doyle was fired in early 2008. Solis Doyle exited the campaign in February and Parkhomenko left soon thereafter. He was 22-years-old.

Parkhomenko couldn’t quite shake the Hillary bug. He created another pro-Hillary website that spring, VoteBoth.com, to encourage Clinton supporters to goad Obama into picking Clinton as his running mate. After that failed, Parkhomenko took a break from politics. He reenrolled at Northern Virginia Community College in the fall of 2008 and became a reserve police officer in Washington, DC. But he quickly returned to the political fold. In 2009, he ran for an open House of Delegates seat in Arlington, ultimately finishing third in a five-way race. After that, he buckled down on completing his college degree, later transferring from community college to George Mason University.

Though he lost touch with his old Clinton coworkers, Black and Parkhomenko remained close. He had moved into her spare bedroom during the 2008 presidential campaign after Black insisted that he not waste money on rent while living on a campaign staffer’s salary.

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How Two Hillary Clinton Superfans Became Super-PAC Power Players

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Shadowy Wisconsin Group That Helped Scott Walker Win His Recall Was Backed by the Koch Network

Mother Jones

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Days before Wisconsin GOP Gov. Scott Walker’s June 2012 recall election, two TV ads ran on stations statewide. Paid for by a group called the Coalition for American Values (CAV), the ads attacked the very notion of holding a recall election (even though it’s in the state constitution) and featured supposed Wisconsin citizens speaking out against the recall. “I didn’t vote for Scott Walker, but I’m definitely against the recall,” one man says. In another ad, the narrator says, “Recall isn’t the Wisconsin way…End the recall madness. Vote for Scott Walker June 5th.”

CAV put $400,000 behind those ads, which stoked a sense of unease about the recall among Wisconsin voters. Walker coasted to a seven-point victory. Exit polls strongly suggested that CAV’s ads played a part in the governor’s win. Yet the mystery surrounding the Coalition for American Values persisted. The group never disclosed how much it spent, how much it raised, or who funded it.

Until now. As first reported by the left-leaning Center for Media and Democracy, new tax filings reveal that the main source of CAV’s funding was the Center to Protect Patient Rights, an Arizona nonprofit that gave CAV $510,000 in 2012. CPPR is a linchpin in a network of nonprofit groups Charles and David Koch, the billionaire industrialists, use to shuffle money around the country while keeping donors anonymous. California’s Fair Political Practices Commission identified the group as “the key nonprofit in the Koch Brothers’ dark money network of nonprofit corporations,” and hit the group and a related nonprofit with a $1 million fine for failing to disclose donations made during the 2012 election season. All told, CPPR doled out $156 million in dark money in 2011 and 2012, a sizable chunk of the $407 million moved by the Kochs’ network of nonprofit groups.

Run by a onetime Koch operative named Sean Noble, CPPR is expected to play less of a role in the Koch network going forward. The California investigation—which revealed the identities of hundreds of previously secret donors and private marketing material used by Republican operatives—brought unwanted scrutiny to the Kochs and their conservative and libertarian allies. An October 2012 Huffington Post story reported that Noble, the former “the wizard behind the screen” for the Kochs, had fallen out of favor. “Noble has had his wings clipped,” one Republican operative told HuffPost.

The Center for Media and Democracy says it has filed a formal complaint with Wisconsin’s Government Accountability Board alleging that the Coalition for American Values violated state campaign finance laws by not disclosing its CPPR funding. A message left at the phone number listed on CAV’s website was not returned.

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Shadowy Wisconsin Group That Helped Scott Walker Win His Recall Was Backed by the Koch Network

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Following the Dark Money Would Be Easier if This Goverment Agency Did Its Job

Mother Jones

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A recent headline over at the Atlantic captured the mood when it comes to the state of money in American politics: “There’s No Way to Follow the Money.” The author, former Reuters editor Lee Aitken, was referring to the web of “social welfare” nonprofit groups moving hundreds of millions of dollars in dark money all around the country with the goal, ultimately, of influencing elections and shaping policy. Aitken has a point: As deep as reporters dig, it’s harder than ever to track where the money’s going, how it’s being spent, and who’s taking a cut along the way.

Following the dark money isn’t any easier when timid or dysfunctional watchdogs plainly fail to do their jobs. Fingers point most often to the Federal Election Commission, which is at the moment an underfunded, ideologically divided, broken institution. But a new Sunlight Foundation analysis identifies another culprit: the Federal Communications Commission, the nation’s top cop when it comes to TV, radio, and broadband.

Here’s the back story: Tucked inside the Bipartisan Campaign Reform Act of 2002, a landmark piece of legislation better known as “McCain-Feingold” after its two sponsors, was a new requirement that local TV stations make available to the public information about political ad buys, including how much was spent and what candidates or issues were mentioned in the ad. Post-Citizens United, spending on political ads has exploded—$5.6 billion was spent in 2012, a 30 percent increase from 2008. Broadcasters’ ad data can provide journalists, campaign staffers, activists, and anyone else with detailed and useful information on the ads running all over the country.

The problem? TV stations are ignoring the law, leaving the public in the dark.

A Sunlight Foundation analysis of 200 randomly-chosen ad buys by PACs, super-PACs, or nonprofits found that fewer than one in six actually disclosed the name of the candidate or specific election referenced in the ad. The most important fields on the ad buy paperwork are blank, and the TV stations that are so eager to rake in all those revenues aren’t prodding the ad buyers to fully disclose what they’re doing.

The FCC could crack down on this if it wanted. Sunlight’s Jacob Fenton explains why the agency isn’t acting:

TV stations could be penalized for leaving out disclosure information, but the FCC has shown little appetite for doing so. Although occasional enforcement checks took place in the years after the reforms were adopted, more recently the FCC has fallen back on a “complaint driven” process. In other words, the agency won’t act unless someone asks it to. But because the vast majority of the political ad filings are hidden away in file cabinets at broadcast stations, available only during business hours when most voters are working, few people ever see them, let alone complain.

Steve Waldman, an Internet entrepreneur and journalist who worked as a senior advisor to former FCC chairman Julius Genachowski, said the nation’s communications watchdog was leery of getting stuck with the unenviable position of campaign cop. “When it comes to political stuff, there’s extra sensitivity at the commission because it’s the one area where Congress jumps up and down and says, ‘If you do that we’re going to come and slap you in the head,'” Waldman said.

Tom Wheeler, who just replaced Genachowski, saw his Senate confirmation vote held up by Sen. Ted Cruz, R-Texas, over the issue of political ad disclosure. In a statement, Cruz said he lifted the hold after Wheeler said he’d make political ad funding disclosure “not a priority.”

It’s not all bad news on the political ad transparency front. In August, a judge ruled that the FCC could proceed with a plan to require several hundred broadcast stations located in the nation’s 50 largest cities to post their ad files online. Sunlight, among others, is working to make those files accessible and easily searchable to anyone with an Internet connection.

In the campaign finance world, that’s progress. But it’s enough. The FCC and the TV stations themselves need to feel more pressure to ensure that those ad files comply with the law. It’s one of the few useful tools we have nowadays for following that shadowy money trail.

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Following the Dark Money Would Be Easier if This Goverment Agency Did Its Job

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4 Reasons Obama’s New Dark-Money Rules Won’t Stop Dark Money

Mother Jones

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Last week, the Internal Revenue Service, led by an appointee of President Obama’s, and the Treasury Department sent shock waves throughout the political world by unveiling a new set of proposed regulations intended to clamp down on secretly funded nonprofits known as 501(c)(4) groups. Big-name 501(c)(4)s include Karl Rove’s Crossroads GPS, the League of Conservation Voters, Grover Norquist’s Americans for Tax Reform, and the pro-Obama Priorities USA. In the 2012 election season, 501(c)(4) groups spent $310 million, up from $5 million in 2006, according to the Center for Responsive Politics.

The government’s new proposals are an attempt at stemming that tide of secret spending. In some corners, the proposals were hailed a smart first step; in others, a dangerous intrusion on taxpayers’ free-speech rights. But on closer examination, tax lawyers and election experts say, the Obama administration’s proposals won’t plug the spigot of dark money pouring into US elections. Here are four reasons why.

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4 Reasons Obama’s New Dark-Money Rules Won’t Stop Dark Money

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California Watchdog: “Koch Brothers Network” Behind $15 Million Dark-Money Donations

Mother Jones

On Thursday, the California attorney general and the state’s top election watchdog named the “Koch brothers network” of donors and dark-money nonprofits as the true source of $15 million in secret donations made last year to influence two bitterly fought ballot propositions in California. State officials unmasked the Kochs’ network as part of a settlement deal that ends a nearly year-long investigation into the source of the secret donations that flowed in California last fall.

As part of the deal, two Arizona-based nonprofits, the Koch-linked Center to Protect Patients Rights and Americans for Responsible Leadership, admitted violating state election law. The settlement mandates that the two nonprofits pay a $1 million fine to California’s general fund, and the committees who received the secret donations at the heart of the case must also cut a check to the state for the amount of those donations, which totaled $15.08 million.

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California Watchdog: “Koch Brothers Network” Behind $15 Million Dark-Money Donations

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Michigan Gov. Rick Snyder Will Shutter His Dark-Money Fund

Mother Jones

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For months, Michigan Gov. Rick Snyder has been under fire for a nonprofit his administration has used to pay the salary of a top lieutenant, as well as housing and travel costs for Kevyn Orr, the emergency manager appointed by Snyder to shore up Detroit’s finances. On Monday, Snyder announced he would soon dissolve the nonprofit, known as the New Energy to Reinvent and Diversify (NERD) Fund.

Snyder told reporters, according to the Detroit Free Press, that the NERD Fund—which has never disclosed its donors—was becoming a distraction. “I think it is appropriate to say, ‘Let’s wind it down and go forward in a fund where all the donors will be disclosed and the information will be online,'” he said.

Allies of the governor incorporated the NERD fund in February 2011, shortly after Snyder took office, to offset the costs of certain employees and initiatives. Its goal, as the fund’s directors put it, to “advance good government in Michigan while easing the burden on taxpayers.” The NERD Fund raised $1.3 million in unlimited donations from anonymous sources in 2011, but just $368,000 in 2012, according to tax filings. The only publicly revealed donor to the NERD Fund is the pharmaceutical chain CVS, which gave $1,000 in March 2012, according to a company disclosure.

Earlier this month, Snyder testified under oath that he didn’t know who the NERD Fund’s donors were. That hasn’t stopped Snyder’s critics, mainly the state’s labor unions, from raising questions about the influence gained by the fund’s donors.

A spokeswoman for Snyder said the NERD Fund will not reveal its previous donors even after dissolving—a decision that raised fresh questions about the fund’s backers. “Closing the NERD Fund without full disclosure of past donors only begs the question: What is Gov. Snyder hiding?” Karla Swift, president of the Michigan state AFL-CIO, told the Detroit News.

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Michigan Gov. Rick Snyder Will Shutter His Dark-Money Fund

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Andrew Cuomo’s Much-Touted Corruption Watchdog Is Beginning to Look Like a Joke

Mother Jones

In June, an anti-corruption bill that included the holy grail of money-in-politics reforms—public financing of elections—died in the New York State Senate. Progressives and election reformers had pinned their hopes on passing a public financing system modeled after New York City’s, a system that helped Bill de Blasio clinch the Democratic mayoral primary. But they weren’t left empty-handed when the bill died: In its place, Gov. Andrew Cuomo (D) created the Commission to Investigate Public Corruption to get at the root of Albany’s corruption woes and to study the funding of state elections.

Now, it looks like Cuomo’s commission is not all it’s cracked up to be. And the Cuomo administration is partly to blame.

State lawmakers are refusing to turn over the information about their outside income that the corruption commission requested, the New York Times reports. Cuomo’s staff, meanwhile, “has leaned on the commission to limit the scope of its investigations,” according to the Times.

Here’s more from the Times:

The turmoil over the commission began in late August, when it asked members of both houses of the Legislature to release information about their outside income above $20,000. Several weeks later, lawyers for the Legislature refused, saying, “These demands substantially exceed what New York law authorizes.”

The commission’s relationship with the governor’s office has also been freighted. It issued a flurry of subpoenas at the start, but then was slowed by Mr. Cuomo’s office in several instances, according to people familiar with the situation who insisted on anonymity because they feared retribution by the governor.

In one such instance, when the commission began to investigate how a handful of high-end residential developers in New York City won tax breaks from Albany, its staff drafted, and its three co-chairmen approved, a subpoena of the Real Estate Board of New York. But Mr. Cuomo’s office persuaded the commission not to subpoena the board, whose leaders have given generously to Mr. Cuomo’s campaign, and which supported a business coalition, the Committee to Save New York, that ran extensive television advertising promoting his legislative agenda.

A Cuomo spokeswoman told the Times that “ultimately all investigatory decisions are up to the unanimous decision of the co-chairs.” Still, New York Attorney General Eric Schneiderman said he’s worried about “interference and micromanagement” at the commission, and good-government groups are increasingly disillusioned over the commission’s trajectory. “New Yorkers are losing patience with the continuing culture of corruption in Albany and the continued indictment of their representatives,” reads a letter from Common Cause New York to Cuomo. “The commission was established to help restore their faith in government, not confirm their cynicism that the system will never change.”

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Andrew Cuomo’s Much-Touted Corruption Watchdog Is Beginning to Look Like a Joke

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