The Update Desk: Meanwhile Back in Albany (v34)

Was it really only back in September that we were talking about New York's failed attempt to limit outside income for our state legislators?

That's when we learned, in Meanwhile Back in Albany (v34), that two different state judges had tossed the outside income limit, fought by both Republicans AND Democrats. The limit was recommended by the same commission that defined a three-year pay raise, elevating the base pay from $79,500 to $130,000 over three years; the first bump, to $110,000, took effect in January 2019.

The raises (and the income limit) were predicated on the claim that the legislators were full time, that the pay hadn't gone up in around 20 years, and that we have had enough of ethically-challenged legislators. The 2020 and 2021 raises had the limits attached.

The judges had different opinions on the limits.

State Supreme Court Justice Richard Platkin determined only the raises - not the outside income limits - carry the force of law, noting

"All of the committee's other recommendations are just that - recommendations advanced for the consideration of policy makers, but not the law of New York State." 

Under this decision, it appears the three-year raise deal will stand.

However,

State Supreme Court Justice Christina Ryba ruled that the pay raise committee had overstepped its authority by tying the raises to the outside income limits. And, her ruling allowed at least this year's installment of of the raise to stand, perhaps because this is the only year of the three where there is no limit on the outside income.

In one part of her decision, Ryba "severs" the 2019 pay increase from scheduled hikes for future years - suggesting the pay raises for 2020 and 2021 won't take effect, and the pay committee or Legislature would have to revisit the issue.

There was always a chance that - oh, heck, who am I kidding? There was NO chance at all that the legislature would come back this year for a special session to come up with a plan that would effectively limit outside income, or officially give up the pay raise for years two and three, since those were tied to the progressive income limits.

There was no chance, and they have not come back, of course. So, what do we do now?

Well, good government groups have not given up on this, it seems. In a recent entry in the NY State of Politics blog, Nick Reisman provided an update.

A coalition of good-government organizations on (October 24th) released a letter to the governor and top lawmakers in the state Senate and Assembly urging them to take up an outside income ban. 

The groups - Common Cause New York, NYPIRG, the League of Women Voters of New York State, Reinvent Albany, and Citizens Union of the City of New York, want this whole thing relooked at. Here are excerpts from their letter.

Dear Governor Cuomo, Speaker Heastie, and Senate Majority Leader Stewart-Cousins:   

We write to urge you to act to limit the outside income of lawmakers, consistent with the recommendations of the 2018 New York State Compensation Committee, when the legislature next meets. 

Our groups were pleased when the ​New York State Compensation Committee​ ​last December acted to restrict outside income earned by lawmakers at 15 percent of the legislative base salary, or $18,000, consistent with limits for members of the United States Congress. The Commission also completely prohibited the earning of compensation when lawmakers have a fiduciary relationship to a client or employer...  ​These restrictions are consistent with those imposed on the United States Congress. 

 Unfortunately, the binding recommendations issued by the Compensation Committee regarding outside income were struck down by the courts, even while lawmakers received a raise... We understand Attorney General Tish James is no longer pursuing appeals of the different cases involving outside income restrictions.  

It is therefore incumbent on you as the state’s leaders to act to curtail outside income by lawmakers to address the corruption problem in Albany and restore the public trust. 

It goes on to remind the current leaders of "too many instances of corruptions and conflicts of interest" - including recent unethical poster boys Sheldon Silver and Dean Skelos - stemming from legislators seeking personal gain related to their other jobs or jobs held by family members.

This is why the Commission concluded that restricting outside income “will eliminate both the perception of and any actual conflicts of interest” and “eliminates the possibility for the public to question whether the citizens of this State are being properly served.” 

The Commission’s conclusions are no less true than they were a year ago. The state’s leaders must act to fulfill them. 

I'll add one more note on this: the 2020 legislative calendar has been released; our full-time, no-outside-income-limit legislators are scheduled for 57 days in Albany next year.