Gov. Kathy Hochul’s massive campaign war chest is a source of political strength.
But after a Democratic primary rival questioned some of the incumbent’s fundraising methods, the governor’s campaign said it will return thousands of dollars she accepted from people she’s appointed to state boards and councils.
Public records show Hochul has raised at least $72,500 from people who donated after she gave them positions steering state policy on things like cannabis and elevator safety. Some of the people in question also contributed before their appointments, and some of the appointees were first put into their positions by Hochul’s predecessor, Andrew Cuomo.
State employees and officers — even in the unpaid positions in question — are prohibited from donating to a gubernatorial campaign under an executive order first issued in 2008. Hochul re-upped the policy, along with many other prior executive orders, after she became governor in 2021. A spokesperson for Hochul’s campaign said the donations would be refunded after Gothamist asked about them this week.
Hochul raised around $4.3 million in the first six months of the year and reported $17.5 million on hand as of July. She faces a Democratic primary challenge from Lt. Gov. Antonio Delgado, a one-time ally who broke with the governor earlier this year.
Delgado raised $1.4 million in the first half of this year and reported $1.3 million in the bank as of July. Steven Ileka, a spokesperson for the Delgado campaign, said Hochul was violating the spirit of the ethics order.
“Raising money from political appointees after pledging not to, Governor Hochul is driving a truck through her own ethics order,” Ileka said. “This is the government of the donors, by the donors, for the donors — and New Yorkers are the ones being left out.”
American Federation of Teachers President Randi Weingarten, a Hochul ally, said the governor isn’t driven by her campaign contributors.
“Governor Hochul has the highest ethical standards and is working day in and day out to put money back in families’ pockets. I’m proud to stand behind her,” Weingarten said.
As governor, Cuomo raised large sums from people he appointed to boards. The New York Times in 2018 found Cuomo had raised $890,000 from people he appointed, and an additional $1.3 million from the spouses, children and related businesses of appointees.
Blair Horner, the longtime executive director of the New York Public Interest Research Group, which advocates for tighter campaign finance rules, said the practice of raising campaign funds from gubernatorial appointees undermines public confidence in governmental actions.
“The governor has set the rule on this and she should follow the rule,” Horner said. “It minimizes the possibility that the public will think that they’re getting appointed to important government positions because they’re campaign donors.”
During her 2022 campaign for a full term, Hochul raised more than $400,000 from people on state boards and their spouses, the Times reported at the time. Her aides defended the practice by saying the donors were appointed by Cuomo — not her.
Public records show donations from various appointees after they were officially installed. Hochul raised $15,000 from Matt Rand, an executive at the real estate firm Howard Hanna, after he was appointed to the Mid-Hudson Regional Economic Development Council in June 2022. Rand gave $2,500 in May 2022, $2,500 in September of that year and $5,000 in July 2023.
The regional councils weigh in on which projects should be awarded state grants and incentives. Rand didn’t return a message seeking comment.
Hochul accepted $5,000 checks in June and August 2024 from Walter Borisenok after she appointed him in February of that year to the New York State Thoroughbred Breeding and Development Fund. Borisenok is a retired food-products executive who owns a horse farm near the Saratoga racetrack. He didn’t return an email seeking comment.
Mark Gregorio had already donated to Hochul’s campaign when she appointed him to the Elevator Safety and Standards Board in February 2022. Gregorio is the president of TEI Group, an elevator services company based in Long Island City.
Gregorio has donated $37,500 to Hochul’s campaign since his appointment, sending several checks between June 2022 and February 2024. He didn’t return an email seeking comment.
Belluck Law founding partner Joseph Belluck has a variety of state positions: He’s been a trustee of the State University of New York since 2010 and chairs the state Commission on Judicial Conduct. He’s donated regularly to Democratic politicians, including Hochul.
Belluck wrote Hochul’s campaign a $10,000 check in December 2023 after she appointed him to chair the Cannabis Advisory Board in May 2022. Belluck said he didn’t see a conflict: He isn’t paid for any of his state work and doesn’t have any clients or financial interests in front of the state. He just supports Hochul.
“We spend a lot of time working for free,” he said of his state service. “I would contribute to her campaign regardless of the appointment. I believe in her leadership and the work that she’s doing.”
