Last week the New York State Commission on Legislative, Judicial, & Executive Compensation held a public hearing to accept comments on whether to increase the current compensation for the Legislature and the governor. The compensation levels recommended by the Commission will take effect unless changed by the Legislature and the governor. Since June 2015, the Commission consists of seven appointed members – three chosen by the Governor, one by the Senate Majority Leader, one by the Assembly Speaker, and two by the Chief Judge of the state’s highest court, one of whom serves as chair of the Commission.

The Commission is considering pay raises to the highest paid governor and state lawmakers in the nation. New York State legislators have a $142,000 salary, the highest in the country, and due to an ongoing legal challenge, the Commission may place no limits on outside income. New York’s Governor is also the highest paid in the U.S.

The current limits were set as part of an end-of-the-year and after-election decision in 2022, when the governor and the legislative leaders cobbled together a deal to raise their pay. That agreement also added one twist to satisfy an angry public: limits on how much income lawmakers could make from outside sources.

The rationale for the outside income limits was the principle that elected officials cannot “serve two masters.” They must be accountable to only one: the public that they serve.

The idea that “moonlighting” by elected officials should be limited is not unheard of. For example, the Congress has long had outside income limits. The Congressional system was an outgrowth of the Watergate scandal and has a proven track record of being effective in removing outside conflicts.

When the Congress adopted its system, it observed that:

“. . . substantial outside income creates at least the appearance of impropriety and thereby undermines public confidence in the integrity of government officials.”

In addition, the Congress bans income from any source for which the Congressmember has a “fiduciary” relationship. Being a “fiduciary” means putting the interests of your client ahead of your own. When you’re an elected official whose constituents’ interests are paramount, how do you do that when you have a legal duty to put your paying clients first? Can lawmakers serve two bosses? The clear answer is no.

The same potential conflicts that Congress addressed exist in Albany and the recent convictions of elected officials underscore how lucrative it can be for lawmakers to inappropriately use the powers of their public office for private gain. Beyond that, legislators routinely consider proposals that may have an impact on their outside business interests. A bright-line standard is therefore necessary.

Current law limits a Congressmember’s outside income to $31,800 above the applicable Congressional compensation rate.Notably, unlike the Congressional restrictions, the current New York State outside income limit does not ban income from activities in which the lawmaker has a fiduciary relationship with a client. As a result, New York’s stalled outside income restrictions are far weaker than the Congressional version and should be made stronger by the

Pay Commission – assuming that the courts ultimately allow the income ban to be in effect.

The outside income issue is not one for the Legislative branch alone.

New York’s statewide elected officials are paid at the highest rate in the nation, are full-time, and should not be allowed to do outside work. Yet, New Yorkers have seen that happen. The controversy surrounding former Governor Cuomo’s $5 million book deal underscores the need for meaningful restrictions on the outside income of the full-time, statewide elected officials (Governor, Attorney General and Comptroller).

Reviews by both the Assembly Judiciary Committee and the state ethics watchdog at the time, the Joint Commission On Public Ethics, alleged that the former governor pushed the staff of the ethics agency to approve the multi-million-dollar book deal and further alleged that the former governor used government resources in writing the book. Nothing of the sort should have been approved.

As the Pay Commission deliberates, it should recommend that any publishing contracts and other requests for outside income by members of the executive branch be subject to pre-approval by the full state ethics body – not staff – with the full text and conditions of approvals released to the public and prohibited if the publisher is doing business with the state.

New Yorkers know that providing reasonable compensation for public service is an important factor in making government work. Combating public cynicism, distrust and growing voter anger is as important a goal as identifying appropriate, defensible compensation levels.

That was the thinking when the governor and state lawmakers agreed to the current pay raises – making a clear linkage to restrictions on outside income. Until the legal challenge is concluded, the Commission should oppose pay increases for state legislators or statewide officials.

New Yorkers deserve elected officials whose only responsibility while in office is the public that they serve. Those elected to office cannot and should not serve two masters.