Gov. Kathy Hochul has acquired tons of of 1000's of dollars in donations from a pair with ties to a agency that is been awarded tons of of tens of millions in Medicaid transportation contracts.
Lev Radin/Pacific Press/Shutters
A pair with ties to a agency that’s been awarded tons of of tens of millions in Medicaid transportation contracts over time has pushed greater than $300,000 mixed into the marketing campaign coffers of former Gov. Andrew Cuomo and present Gov. Kathy Hochul, information reviewed by The Submit reveal.
Critics say the donations are a textbook case of Albany’s pay-to-play tradition that permits bidders and contractors to present huge marketing campaign contributions to the governor whose companies oversee them. By comparability, New York Metropolis legislation limits donations from bidders and contractors to the mayor and have enterprise Large Apple companies to $400.
The agency, Medical Answering Providers, based by president Russ Maxwell in 2004, was awarded eight contracts totaling $403.7 million by the state Well being Division from 2011 by means of 2018. 4 of the contracts don’t expire till subsequent yr.
Maxwell and his partner, Morgan McDole, dropped $236,000 into Cuomo’s marketing campaign coffers over these years.
The couple has additionally dumped greater than $100,000 mixed into the marketing campaign coffers of Hochul, as governor and lieutenant governor beneath Cuomo — and the Hochul-controlled state Democratic Committee.
McDole, as an example, gave three contributions totaling $52,600 to Hochul over the previous yr — $22,600 on Jan. 8, 2021, $10,000 on Sept. 9, 2021 shortly after she turned governor and $20,000 on April 24 of this yr.
McDole donated one other $20,000 to the Hochul-influenced state Democratic Social gathering on April 27 of this yr.
In the meantime, Maxwell has donated $32,100 to Hochul since 2018 and $176,000 to Cuomo throughout his tenure. McDole donated one other $60,000 to Cuomo.
“It’s an ideal instance that reveals how lax state marketing campaign finance legal guidelines are,” stated John Kaehny, director of the federal government watchdog group Reinvent Albany.
“It appears to be like like pay to play. It destroys public belief in authorities. New York Metropolis authorities is approach head of the state on this.”
Senate Elections Committee Chairman Zellnor Myrie (D-Brooklyn) handed a invoice that might ban marketing campaign contributions throughout a bidding course of and 6 months after an award was given to a profitable bidder. However the laws stalled within the state Meeting.
“New York State’s purse is very large. Any bidder searching for taxpayer dollars needs to be freed from political affect,” Myrie stated.
“The proposal is about restoring belief within the bidding course of that has been missing. The present system appears to be like like folks have to present marketing campaign donations to grease the wheels. It’s unacceptable.”
A rep for Maxwell insisted that the contractor and his partner’s donations weren't related to the contracts his agency was awarded. The eight contracts vary from $15 million to $120 million to offer transportation to Medicaid recipients in all components of the state, together with New York Metropolis, information with the comptroller’s workplace present.
The Well being Division stated Medical Answering Providers was awarded one other contract within the 2020-21 price range after a request for proposal was put out in accordance with state legislation.
Maxwell’s agency acts as a contractor or dealer that works with transportation suppliers to select up and drop off Medicaid recipients, that means his firm doesn’t pocket the entire quantity within the contract.
“Russ Maxwell has been concerned in state and native politics for greater than 30 years, together with a run for State Meeting in 1992. He’s supported many candidates and political causes over time,” stated Maxwell spokesman Patrick McCarthy.
“Russ and his husband supported former Gov. Cuomo’s efforts to legalize homosexual marriage in New York, and he’s identified Gov. Hochul for many years courting again to her days on the Hamburg City Board, and as [Erie] County Clerk. Russ helps candidates for workplace who've a imaginative and prescient for New York’s future, that future is necessary to Russ, his household, and the tons of of women and men who work at MAS.”
The rep additionally stated that Maxwell has helped the state obtain financial savings and efficiencies in New York’s highest-in-the-nation $92.7 billion Medicaid price range, which supplies publicly-funded medical health insurance protection to the needy.
Previous to the primary state contract award, Maxwell’s contributions had been extra modest. For instance, he gave two contributions to gubernatorial candidate Eliot Spitzer for $1,000 and $500 in 2005.
Subsequently, Maxwell donated $25,000 to Cuomo’s marketing campaign committee on July 9, 2012 and he continued to make fats contributions to Cuomo as extra contracts had been renewed or awarded.
Hochul and Cuomo, each criticized for their aggressive fundraising of individuals with enterprise earlier than the state, insisted they’re not influenced by marketing campaign donations.
“In keeping with Governor Hochul’s dedication to keep up excessive moral requirements, marketing campaign contributions don't have any affect on authorities selections,” stated Hochul’s marketing campaign spokesman Jerrel Harvey.
Cuomo spokesman Richard Azzopardi stated, “Can’t communicate to how issues are at the moment, however contracting was all the time achieved on the company degree – interval. The 2 unmovable guidelines in Albany are that critics prefer to criticize and love studying their names within the paper.”
The Well being Division stated Maxwell’s agency was awarded contracts on the deserves after aggressive bidding — with out involvement from the governor’s workplace.
“The Division of Well being has contracted with this vendor for greater than a decade to offer vital transportation providers to Medicaid sufferers and, after a aggressive bidding course of, awarded this vendor a procurement licensed beneath the State Fiscal 12 months 2020-21 Price range to offer nonemergency medical transportation brokerage administration providers for New Yorkers enrolled within the Medicaid program,” stated state Well being Division spokesman Cort Ruddy.
“The procurement evaluated each technical and value issues as outlined within the RFP and in accordance with State Finance Legislation. The Govt Chamber doesn't present enter on procurements managed by the Division and had no involvement within the choice of the awardee.”
Hochul has confronted scrutiny for renewing a state of emergency for COVID-19 for months that has suspended state buying guidelines which, the Occasions Union just lately reported, let a speedy testing firm referred to as Digital Devices — led by a marketing campaign donor — safe $637 million in no-bid enterprise from the state Division of Well being since December.
The proprietor of the corporate, Charlie Tebele, and his household, have given practically $300,000 to Hochul as she runs for election to her put up in opposition to Republican gubernatorial nominee Rep. Lee Zeldin.
Hochul has additionally collected hefty contributions from different different companies with enterprise earlier than the state — hashish operators, movie corporations, on line casino operators and the actual property trade.
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