New York state budget talks devolved into a public fight this week as Gov. Kathy Hochul and leading legislators accused each other of doing the bidding of deep-pocketed special interests.
The New York State Trial Lawyers Association and Uber have spent millions to influence the debate around Hochul’s proposals to crack down on auto insurance fraud and tighten the payout standards for crash victims. Uber is backing the governor, while lawyers are leaning on legislators.
Lawmakers say negotiations around the $263 billion state budget — which was due April 1 — are stalled as Hochul doubles down and legislators raise concerns about whether her plan would actually drive down insurance rates as she claims.
The insults are flying.
“We're just trying to do what's in the best interest of the people and get through this thing. But doing the bidding of the insurance companies and Uber is not the end-all in this conversation.”State Sen. Mike Gianaris
“It's obviously something she's sensitive about,” said state Sen. Mike Gianaris, a Queens Democrat. “We're just trying to do what's in the best interest of the people and get through this thing. But doing the bidding of the insurance companies and Uber is not the end-all in this conversation.”
Hochul’s proposal would prohibit court payouts to those found to bear a majority of the responsibility for a wreck and limit eligibility for extra compensation due to a serious injury.
The Democratic governor says her proposals will save consumers money. She has accused lawmakers of being captive to “special interests.”
On Monday, the dispute spilled into public view. Gianaris suggested on the Senate floor that Hochul has been unwilling to compromise on budget talks. Hochul spokesperson Kara Cumoletti responded by noting Gianaris leads the Senate Democrats’ campaign committee, which counts trial lawyers among its top donors.
On Tuesday, Hochul doubled down while claiming her political contributions from insurance companies aren’t influencing her position. Her campaign has received about $200,000 from auto insurers since she took office in 2021.
“I'm proud of what we're doing,” Hochul said. “Money has no influence on what we're doing. In fact, those interests are also aligned with every single New Yorker who wants to see their rates go down. I don't think the trial lawyers' interests are aligned with New Yorkers. That is more self-serving.”
“I'm proud of what we're doing. Money has no influence on what we're doing."Gov. Kathy Hochul
Separately, the governor’s press aides invited reporters to an impromptu Tuesday news conference by Tom Stebbins, the leader of the Lawsuit Reform Alliance, which advocates for changes to tort law and criticizes trial lawyers. He was more explicit laying down the gauntlet for lawmakers.
“They need to do right by their constituents and not by the trial lawyers,” Stebbins said. “The trial lawyers have controlled this town for far too long.”
Indeed, the New York State Trial Lawyers Association spends hundreds of thousands of dollars each year on hired lobbyists and stuffing the campaign accounts of lawmakers on both sides of the aisle. The group is spending around $120,000 a month on lobbying, and it has hired Patrick Jenkins, a one-time roommate of Assembly Speaker Carl Heastie, to make its push.
Much of the group’s giving is concentrated through a political action committee, LAWPAC, that has doled out nearly $3 million to more than 300 campaigns since 2021. The top recipients were legislative campaign committees controlled by Heastie and Gianaris.
Individual lawyers give to legislators, too. That recently included state Assemblymember Jeffrey Dinowitz, a Bronx Democrat whose campaign reported receiving $15,500 from 11 attorneys on a single day last month. Those contributions lined up with a campaign fundraiser Dinowitz held in a bar near the state Capitol that week, according to a copy of the invitation reviewed by Gothamist.
Among the contributors was Andrew Finkelstein of Finkelstein & Partners, who serves as president of the New York State Trial Lawyers Association. Finkelstein gave $3,000, according to disclosure records.
Dinowitz declined to discuss his campaign’s contributions from trial lawyers. He expressed concern with Hochul’s auto insurance reforms, questioning whether they would actually drive down rates for consumers.
“I want to preserve the rights of victims,” Dinowitz told Gothamist. “I certainly think we should work to eliminate fraud, but I don't see any guarantees in the legislation that cut insurance rates. There's nothing in there.”
Finkelstein took Hochul to task at a rally at the Capitol last month against her insurance proposal, accusing her of being “in the pocket” of Uber and insurance companies who stand to profit should the governor’s plan take effect.
“There's a reason why the insurance companies and Uber have been funding the governor's campaign,” he said. “It's because they expect a return on their investment, and the return on their investment is going to come on the backs of New Yorkers who have been injured.”
Uber has spent more than $9 million on a campaign blanketing televisions, tablets and mailboxes with advertisements touting the governor’s plan. A group funded by Uber has also organized rallies of clergy and civil rights activists at the Capitol.
