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NYS' $100M program to publicly finance campaigns prompts an emergency fix

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NYS' 0M program to publicly finance campaigns prompts an emergency fix

ALBANY — New York State has issued an emergency order to better verify contributors to campaigns before the state matches cash contributions under the new public campaign financing program.

The order was made two days after the June primary and in the midst of the program’s biggest rollout leading to the November legislative elections. It followed a media report that claimed the system was abused by an Assembly candidate who secured nearly $163,000 in taxpayer funds under the program, some of it with cash donations without a way to verify or contact the contributor.

The emergency amendment approved by the New York State Public Campaign Finance Board on June 27 requires that “contribution cards” that were already required for cash donations must include a phone number or email address so contributors can be verified.

The State Legislature created the program to limit the influence of wealthy donors. This election year, the first major use of the program, has drawn 316 candidates vying for 213 state legislative races. They have qualified to receive part of $100 million in state-funded matches to encourage small donations, $5 to $250, from individuals.

WHAT TO KNOW

  • The state has issued an emergency order to better verify contributors to campaigns before the state matches cash contributions under the new public campaign financing program.
  • The amendment, which came after a media report of abuse of the system, requires that “contribution cards” for cash donations include a phone number or email address so contributors can be verified.
  • This election year is the first major use of the program and has drawn 316 candidates vying for 213 state legislative races. They have qualified to receive part of $100 million in state-funded matches.

The response to the program by challengers and incumbents has exceeded the predictions of even the program’s most ardent supporters, but hasn’t come without problems.

The amendment came after The New York Times reported on fundraising by Assembly candidate Dao Yin in the June 25 primary. The Times said the Queens Democrat used “fake donations and forged signatures” in a campaign that received almost $163,000 in taxpayer money under the new public finance system.

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Yin denied he faked contributions. “Everything we say is distorted” in the news media, Yin told Newsday.

In a written statement, he said his campaign workers “adhered to all the necessary procedures to meet the matching funds requirements. In the event of any inadvertent errors, they are actively collaborating with the New York State Public Campaign Finance Board to rectify them.”

The amendment resolution approved by the campaign finance board said, “Mandating that the contributor’s phone number or email address be provided on a contribution card would greatly assist in the audit and process of contributions in order to pay matchable funds, but are not currently required to be provided.” 

“The matching claim would be denied until that information is supplied,” said William J. McCann, co-program manager of the public campaign finance unit, at the June 27 meeting.

The amendment also ends the use of “good-faith letters” that campaigns can attach to donations with too little information to verify the identity of the contributor. Campaigns could provide the letter to say they tried but failed to get the information. Before the amendment, that could have allowed a campaign to receive a matching fund from the state.

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“The implementation of the policy of accepting good-faith letters was not a regulation, but rather adopted during program development by bipartisan staff,” said Kathleen McGrath, spokeswoman for the state Board of Elections. “The good-faith letters were to capture a phone number or email address of a cash contributor if not included on the associated contribution card. These data points were not required to be submitted by a committee under the statute for public funds matching, but were an effort by the [state Public Campaign Finance Board] to go above and beyond in auditing submissions. “

With the amendment, “The policy of accepting good-faith letters has been rendered moot,” McGrath said.

The state Board of Elections didn’t immediately release data on the number of letters of good faith that have been accepted. Newsday has requested the data under the Freedom of Information Law.

Two other complaints were handled this year as part of the public campaign financing program, according to Public Campaign Finance Board records.

In April, the board received a complaint that Democrat Gabi Madden’s campaign violated state election law by using a prohibited “game of chance” as a fundraiser in her unsuccessful race to represent parts of Dutchess and Ulster counties in the Assembly. In June, the board dismissed the case without further enforcement action after the campaign refunded the contributions.

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In May, the board investigated a complaint that Madden’s campaign failed to report expenditures or in-kind contributions for use of the campaign office. In June, the board dismissed the case without further enforcement action after the campaign amended its required financial disclosures.

At the same June 27 meeting in which the state Public Campaign Finance Board approved the emergency amendment, the board also authorized a referral to law enforcement in another case without saying who or which campaign was the subject of the referral.

McGrath wouldn’t comment.

Board vice chairman Brian Kolb, a Republican who when he served in the Assembly opposed public financing of campaigns, defended the rollout.

“We have a very solid process in place,” Kolb told Newsday. “With any new program, you might find some things that we probably should do a little bit differently … but if there are any issues, we fix them and that’s the whole approach.”

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Blair Horner of the New York Public Interest Research Group, which supported public financing of campaigns, said “it’s not surprising there are hiccups the first time through.”

He said the Legislature should review this first year’s performance to determine if any changes are needed to improve accountable and thwart “people who are looking to game the system.”

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Finance

Departing inspector general targets Council Office of Financial Analysis

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Departing inspector general targets Council Office of Financial Analysis

The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.

Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.

In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.

But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”

“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.

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Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.

Jim Vondruska/Jim Vondruska/For the Sun-Times

But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”

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The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .

Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”

The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.

“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.

The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.

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The office was created in 2014 to provide Council members with expert advice on fiscal issues.

For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.

Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.

Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.

The office was further required to produce activity reports quarterly, not just annually.

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Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.

Two years ago, a bizarre standoff developed in the office.

Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.

The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.

“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.

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Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.

Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.

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Finance

Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments. 

“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.” 

In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.  

After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.  

“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.” 

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Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.  

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Finance

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

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Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

As conflict continues to destabilise the Middle East, the Gulf States elite are seeking solace in European alternatives that offer comparable financial benefits with a far lower risk of war on the doorstep. One such destination is the small Swiss town of Zug, which is becoming a “bolt-hole” for Gulf-based wealth, said the Financial Times.

‘Swiss Monaco’

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