hardwiring infuence-nys cable common cause
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Common Cause this morning released a new report entitled, “The Cable TV Industry: Hardwiring Influence.” The report brings together New York State lobbying and campaign finance data for the first time to demonstrate how the cable television industry has used its financial resources to fight for industry self-interest at the expense of New York cable subscribers, who Common Cause deems to be the ultimate “Loser” in the report.TRANSCRIPT
The Cable TV Industry: Hardwiring Influence
November 2008A “Connect the Dots” Report
Common Cause/New York• Common Cause/New York is the citizen's lobbyist
and we speak up for clean elections and ethical standards for our elected officials. We stand up for responsive government. For years, we've provided a clear, strong voice for you and the citizens of New York.
• CC/NY is a leading force in the battle for honest and accountable government. In the past three decades, by fighting together we have enacted real change and will continue to do so in New York and nationally.
Today’s Presenter• Susan Lerner
– Susan is the executive director of Common Cause New York. – Prior to her recent return to New York, Susan was the executive
director of the California Clean Money Campaign. – She served as a member of the Steering Committee of the
Commonwealth Club's Voices of Reform Project and on the Board of Trustees of the California State Summer School for the Arts.
– She founded and chaired the Committee for Judicial Independence, a grassroots organization dedicated to educating and activating Americans to the importance of an independent federal judiciary, and lead a statewide coalition of groups active on federal judicial nominations.
– For almost 20 years, Susan was a trial lawyer in Los Angeles specializing in complex commercial litigation and intellectual property.
– She is a graduate of the University of Chicago and NYU School of Law.
The Cable Industry: Hardwiring Influence , a “Connect the Dots: Money in Politics” report
• The Cable Industry: Hardwiring Influence, shines a light on one of the factors influencing the deregulation fervor in New York State’s cable markets, namely, campaign and lobbying dollars spent by the small number companies that dominant the industry in New York.
A Note on Methodology: Campaign finance data provided in this report is cultivated from disclosures provided to the New York State Board dating back to 1999 and available at the website of the New York State Board of Elections. Lobbying expenditures are cultivated from the New York State Commission on Public Integrity and range from January 2005 through July 2008. All other sources are specifically noted.
The Cable Industry: Hardwiring Influence , a “Connect the Dots: Money in Politics” report
• As New York City renegotiates its cable franchise contracts with Time Warner Cable and Cablevision and hundreds of municipalities around the state enter into renewal contracts with incumbent providers, or new franchise agreements with Verizon with the goal of adding competition to the cable marketplace…
New Yorkers would be right to question what effect the millions of dollars spent by the cable industry on campaign donations and hiring an army of lobbyists have on the cable service they receive.
The New York State Cable Market“The Big Three”
Cable Company New Franchises Awarded(Jan 2005 – July 2008)
Franchise Renewals (Jan 2005 – July 2008)
Adams CATV 1
Cablevision 3 50
Empire Video Services Corporation 19
Haefele TV 6
Hilltop Communications (Valstar) 1
Midtel Cable TV 7
Time Warner 1 255
Verizon 122
Grand Total 145 320
Source: NYS Public Service Commission
NYS Counties With Greatest Volume of Cable Franchise Agreements
County Franchise Renewals (Jan 2005 – July 2008)
Nassau 49
Westchester 31
Rockland 18
Suffolk 12
Erie 8
County New Franchises Awarded(Jan 2005 – July 2008)
Schoharie 21
Steuben 18
Chautauqua 15
Ostego 12
Saratoga 12
Source: NYS Public Service Commission
Top NYS Legislative Recipients, OverallASSEMBLY CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total
Friends of Richard L. Brodsky (D) $1,750 $7,600 $3,600 $12,950
Friends of Silver (D) $1,500 $1,000 $1,000 $6,500 $10,000
Friends of Tom DiNapoli (D) $300 $6,400 $800 $7,500
GRAND TOTAL $3,550 $15,000 $1,000 $10,900 $30,450
SENATE CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total
Friends for the Election of Dean Skelos (R) $5,200 $32,750 $7,100 $20,800 $65,850
Friends of Nick Spano Committee (R) $8,100 $18,110 $4,500 $4,500 $35,210
Friends of Jim Wright (R) $2,500 $6,430 $13,350 $22,280
GRAND TOTAL $15,800 $57,290 $11,600 $38,650 $123,340
NYS Senate Corporations, Authorities and Commissions
CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total
Citizens for Hannon (R)
$500 $8,333 $4,500 $500 $13,833
Friends of John Flanagan (Chair, R)
$650 $5,650 $4,500 $1,750 $12,550
Caesar Trunzo (R) $1,550 $2,800 $4,500 $8,850
Committee to Elect Maziarz
State Senate (R)$1,300 $500 $1,000 $4,500 $7,300
Friends of Senator Gonzalez (D)
$300 $132 $656 $1,087
Grand Total $4,000 $17,583 $14,632 $7,406 $43,620
NYS Assembly Corporations, Authorities and Commissions CABLE PAC CABLEVISION TIME WARNER
CABLE VERIZON Grand Total
Friends of Richard L. Brodsky (Chair, D) $1,750 $7,600 $3,600 $12,950
Friends of Carl E Heastie(D) $2,325 $1,400 $3,725People for Brodsky (D) $1,250 $600 $1,850
Friends of Vivian E. Cook (D) $1,400 $1,400Friends of Andrew Raia (R) $1,250 $1,250Friends of Jim Brennan (D) $1,150 $1,150
Committee to Elect Bacalles to NYS Assembly (R)
$1,050 $1,050
Hevesi for Assembly (D) $1,000 $1,000People for Jeffries (D) $250 $500 $750
Linda Rosenthal for Assembly (D) $500 $500
Friends of Will Barclay (R) $250 $250 $500Friends of Joan Millman (D) $500 $500Citizens for Ginny Fields (D) $450 $450
Friends of Catherine Nolan (D) $200 $200Friends of Steve Hawley (R) $16 $16
Grand Total $3,600 $14,525 $500 $9,016 $27,291
Candidates for Governor
Recipient CABLE PAC CABLEVISION TIME WARNER CABLE VERIZON Grand Total
Spitzer Paterson 2006 (D) $33,906 $64,500 $98,406
Friends of Pataki (R) $36,250 $19,500 $5,000 $10,000 $70,750
Paterson for Governor, Inc. (D) $40,300 $40,300
Friends of John Faso (R) $2,000 $9,300 $10,000 $21,300
Friends of McCall/Mehiel (D) $2,500 $5,000 $10,000 $17,500
GRAND TOTAL $74,656 $138,600 $5,000 $30,000 $248,256
Local CandidatesOffice Recipient CABLEVISION TIME WARNER
CABLE VERIZON Grand Total
County Executive Friends of Steve Levy (D-Suffolk) $24,600 $24,600
County Executive Friends of Andy Spano (D-Westchester) $22,000 $22,000
County Executive Friends of Tom Souzzi(Nassau-D) $17,500 $17,500
Supervisor Citizens for Brian Foley (D-Brookhaven)* $3,700 $3,700
Mayor Friends of Bob Duffy (D-Rochester) $2,500 $2,500
Supervisor Kate Murray for Supervisor (R-Hempstead) $1,125 $1,125
Supervisor Friends of Joan Pagones (R-Fishkill) $999 $999
Supervisor Friends of Frank Petrone (D-Huntington) $900 $900
Supervisor Friends of Pat Vecchio (R-Smithtown) $875 $875
County Legislator Friends of Jon Cooper (D-Suffolk) $625 $625
County Legislator Lindsay for Legislature (D-Suffolk) $575 $575
County Legislator Friends of Wayne R. Horsley (D-Suffolk) $350 $350
County Legislator Friends of Rick Montano (D-Suffolk) $300 $300
County Legislator Friends of Steve Stern (D-Suffolk) $250 $250
Mayor Mayor Brown’s Leadership Council (D-Buffalo) $100 $100
* Senator-elect in Long Island 3rd district.
Cablevision’s Concentrated FocusCounty New Franchises Awarded
(Jan 2005 – July 2008)Franchise Renewals
(Jan 2005 – July 2008)Westchester 10
Dutchess 7Nassau 6
Rockland 4Montgomery 4
Columbia 1 3Suffolk 3Orange 3Essex 2
Putnam 2Ulster 1 1Albany 1Greene 1Steuben 1Fulton 1
Sullivan 1Grand Total 3 49
NYS Political Party AccountsCABLE PAC CABLEVISION TIME WARNER
CABLE VERIZON Grand Total
NYS Senate Republican Campaign Committee - Housekeeping
$220,770 $550,000 $273,100 $1,043,870
NYS Democratic Committee (Housekeeping) $50,000 $335,000 $78,000 $463,000
NY Republican State Committee - Housekeeping $33,863 $35,000 $345,500 $414,363
Democratic Assembly Campaign Committee - Housekeeping
$7,383 $75,000 $182,000 $264,383
NYS Senate Republican Campaign Committee $7,200 $134,150 $15,350 $156,700
Democratic Senate Campaign Committee - Housekeeping
$10,500 $50,000 $46,324 $106,824
NYS Democratic Senate Campaign Committee $736 $57,000 $250 $1,000 $58,986
Democratic Assembly Campaign Committee $11,895 $34,300 $500 $5,000 $51,695
Working families Party $45,000 $237 $45,237
NYS Republican Committee – Reporting $1,000 $25,000 $26,000
Republican Assembly Campaign Committee Housekeeping Account
$1,000 $21,300 $22,300
NYS Democratic Committee $1,000 $16,500 $17,500
Republican Assembly campaign Committee $6,975 $10,500 $17,475
GRAND TOTAL $388,347 $1,295,925 $25,750 $978,311 $2,688,333
Cable Industry Lobbying Expenditures
Cable Industry Lobbying Expenditures January 2005 – July 2008
Cable Telecommunications Assoc of NY $2,096,004
Cablevision* $14,408,527
Time Warner Cable $429,984
Verizon $7,406,748
GRAND TOTAL $24,341,263
* Over 85% of Cablevision’s lobbying expenditures were recorded between January and July of 2005. Even after removing this outlier, the cable industry still racked up $11.7 million in lobbying expenses since January 2005.
$$ THE PAYOFF $$Defeated
The ‘Brodsky bill,’ which would have permitted statewide cable franchises and required strong consumer protections. The bill (A3980, The Telecommunications Reform Act of 2008) was the object of intense industry lobbying.
AwardedThe largest cable franchise contract in the country was awarded by New York City
to Verizon in May 2008 and approved by the NYS PSC two months later. It is estimated to be worth $70 billion over 12 years.
DefeatedA proposed enforcement action that would have required Verizon to check all of its
FiOS cable installations in NYS to ensure no electrical hazards existed. Despite calls from labor and consumer groups, the PSC Commissioners found such a move unnecessary and went so far as to water down Verizon’s own proposal.
$$ THE PAYOFF $$
Industry Insiders or Representatives of the Rest of New York?
The Public Service Commission has oversight over all cable franchise agreements in the state. Currently there is one vacancy on the PSC and the terms of 2 other commissioners are up in early 2009.
Who will Gov. Patterson appoint to the PSC? Will industry money influence his appointments?
$$ THE PAYOFF $$
The Ultimate Losers
New Yorkers who are paying as much as $130 or more each month for their cable service with little meaningful protection or recourse.
QUESTIONS?
Contact: Susan Lernero: (212) 691-6421c: (917) 670-5670
www.CommonCause.org/NY
Thank you!