Crains New York - October 22, 2012 - (Page 6)

As pols play musical chairs, consultants become the piper Term limits, public financing spark demand and dollars for campaign pros BY ANDREW J. HAWKINS Election Day is nearly at hand, but the city’s political consultants already have dollar signs in their eyes for 2013. Term-limit turnover has spawned competitive elections next year for all three citywide offices— mayor, comptroller, public advocate—as well as for four of the five borough president posts, two district attorney offices and about 25 City Council seats. Not since 2001, when pols first vacated their long-held seats, have there been so many elections—or as big a business opportunity for the industry that endeavors to shape them. ness note that quality can vary. “There’s a lot more people out there who think they are consultants,” said the salty Democratic strategist Hank Sheinkopf. Twenty years ago, Mr. Sheinkopf was part of a select group of political mavens, including David Garth, Hank Morris and Philip Friedman, who cornered the market. Each ofdifferently, too. Many still specialize in media relations or strategy. But down-ballot candidates may prefer full-service firms for a less expensive one-stop-shopping experience. And firm principals often register as lobbyists to maximize profits. THE INSIDER by Andrew J. Hawkins and Chris Bragg Pay to sway: direct mail, polling, robo calls, Twitter fered specialized services—direct mail, television and radio spots, print advertising and strategy. Mr. Sheinkopf is still going strong, but Mr. Garth has since retired, Mr. Morris is in jail for accepting kickbacks, and Mr. Friedman committed suicide in 2005. The new generation of consultants runs the gamut. Most have offices near City Hall, but some are based in the outer boroughs. Some wear pinstripes and wingtips, others hoodies and high-tops. The firms themselves are structured Pinstripes and hoodies Consulting firms are scrambling to scoop up clients as their business undergoes its own upheaval.Besides term limits, public funding of campaigns has helped finance a cottage industry of consultants. The emergence of corporate clients has sparked its professionalization, though some veterans of the busi- The Beltway model “It’s a model that was widespread in Washington and came to New York about 10 years ago,” said Evan Stavisky, co-founder of the Parkside Group, which offers direct mail, public relations, lobbying and campaign management. “Good firms are going to have multiple practice areas.” Mark Guma, a consultant who specializes in strategy, direct mail and advertising, said one-stop shops are especially attractive to midsize campaigns, such as City Council bids.A recent trend has seen consultancies consolidating their television and direct-mail services. “You have a consultant that doesn’t really have a vested interest in advocating for one medium versus another,” he said.“So you get, in theory, better decisions about where to spend what are usually scarce advertising resources.” Others dismiss the full-service model, noting that polling firms rarely do media relations, or vice See CONSULTANTS on Page 27 T Life after Bloomberg stirs worries he head of the city’s health care system said last week that while the candidates for mayor in 2013 are generally strong supporters of the public hospitals, he worries that the protection from political interference the system now enjoys could erode when Mayor Michael Bloomberg’s term ends. “Our current mayor has managed to filter out some of the stakeholder influence,” said Alan Aviles (above), president and chief executive of the Health and Hospitals Corp., answering a question at a Citizens Budget Commission forum. “We make decisions based on the facts. That could potentially change.” is also known for its quality food and short distance from New York City. Mr. Kruger is there serving seven years—a term 28 times longer than Mr. Lipsky’s. Mr. Aviles, whose 12-year tenure at HHC dates back to the Giuliani administration, did not name names. The leading mayoral contenders are all Democrats. The sprawling system, with 37,000 employees and a $6.7 billion budget, is a juicy target for labor unions, consulting firms and other politically connected constituencies. It includes 11 acute-care facilities, four nursing homes, six large diagnostic and treatment centers and more than 70 community-based clinics. Truth in advertising Scrambling to fend off a Republican challenge to his state Senate seat in eastern Queens, Democrat Joseph Addabbo bought a full-page ad last week in a local Jewish paper touting his accomplishments—led by his 2011 “removal of the [Metropolitan Transportation Authority] payroll tax for private schools and yeshivas.” Unmentioned was Mr. Addabbo’s crucial vote to pass the Joseph Addabbo 2009 MTA funding bill that included that tax. Last year, as part of an agreement spearheaded by Gov. Andrew Cuomo that restructured the state’s tax code, private schools and yeshivas were exempted from the tax, which was highly unpopular in the Orthodox Jewish community—a key voting bloc in Mr. Addabbo’s race against Councilman Eric Ulrich. A spokeswoman for Mr. Addabbo said, “There was a time when more taxes were really needed, but Joe also supported the removal of the MTA payroll tax for private schools and yeshivas.” Lobbyist’s ‘sweet’ deal First, lobbyist Richard Lipsky received a mere three-month sentence for paying up to $200,000 in bribes to ex-state Sen. Carl Kruger of Brooklyn. Now Mr. Lipsky will get to spend his short stint in the cushiest federal prison in New York—which happens to be Mr. Kruger’s new home. Mr. Lipsky, whose “substantial cooperation” led prosecutors to push for the lenient sentence, had a judge recommend that he go to Otisville, a haven for white-collar criminals that has been listed by Forbes as one of the “12 Best Places to Go to Prison.” “You could do about anything you wanted there,” former inmate John Altman told the New York Post earlier this year. “It’s not just good. It’s sweet. That’s why you request to go there.” The prison, in Orange County, Crain’s Insider, our award-winning politics newsletter, is now a blog. Read it every day at www.crainsnewyork.com/insider 6 | Crain’s New York Business | October 22, 2012 newscom http://www.bowlmor.com http://www.bowlmor.com http://www.crainsnewyork.com/insider

Table of Contents for the Digital Edition of Crains New York - October 22, 2012

Crains New York - October 22, 2012
In the Boroughs
In the Markets
The Insider
Business People
Opinion
Greg David
Report: Real Estate
Real Estate Deals
The List
Digital New York
Classifieds
For the Record
New York, New York
Source Breakfast
Out and About
Snaps

Crains New York - October 22, 2012