Heated Opposition for Governor Hochul’s Home Care Program Renovation

Key Takeaways:

– Governor Kathy Hochul faces significant pushback against her reform of a costly home care program.
– Alliance to Protect Home Care, backed by anonymous funds doled out through another nonprofit, criticizes the reform with a $10.6 million PR campaign.
– United CDPAP, the organization channeling donations to the Alliance, remains elusive with undisclosed donors.
– The reform aims to root out waste, fraudulent activity, and save taxpayers $500 million annually by centralizing program administration.
– Questions arise around potential violations of state lobbying rules meant to limit use of pass-through entities that veil lobbying sponsors.

Governor Hochul’s Attempted Home Care Overhaul

New York’s Governor Kathy Hochul finds herself amidst a storm of criticism over her proposed revamp of an expensive home care scheme. This program allows people with chronic health conditions to select their caregivers, who are then compensated via Medicaid. The uproar comes primarily from the Alliance to Protect Home Care, a nonprofit geared towards social welfare. However, the identity of the funding source for the Alliance’s campaign against Hochul remains shadowy and contentious.

Hochul’s suggestion redirects the operation of the multi-billion-dollar program to a single entity. The Alliance adamantly contests this idea, launching TV advertisements arguing that such a change endangers lives. The $10.6 million bill for this public relations onslaught makes it Albany’s second-biggest lobbying campaign in the previous year.

Disputed Donation Channels and Potential Rule Violations

Some may find the source of finance behind the Alliance’s spending quite interesting, and perhaps, slightly tricky. The money trail leads back to another nonprofit, which may be considered unusual, as it was founded the same day as the Alliance. This raises potential concerns of infractions against the state’s lobbying rules, designed to discourage using pass-through entities as a smokescreen for funding sources.

In an effort to expose who funds lobbying efforts, state law stipulates that any organization spending over $15k lobbying the New York government must disclose all donors contributing more than $2,500. Surprisingly, more than 75% of the Alliance’s nearly $14.2 million contributions came from this secondary nonprofit, United CDPAP. Yet, the identities of those funding United CDPAP are still hidden, which makes the situation slightly suspect.

Hochul’s Program Reform Agenda

On the other side, Governor Hochul’s administration argues that the home care program, known as the Consumer Directed Personal Assistance Program (CDPAP), has experienced significant wastage and fraudulent practices. The plan is to replace around 600 different “fiscal intermediary” companies with a single, statewide substitute. According to Hochul, such a change offers an annual saving of $500 million to taxpayers.

Despite a swift bidding process and potential lawsuit threats claiming the bidding was rigged, the administration entrusted the massive contract to Public Partnerships, LLC. Despite various lawsuits and lobbying to sway public opinion, Hochul’s home care program overhaul persists.

Tangles Between Alliance, United CDPAP, and the Public

The enigma around United CDPAP, its donations to the Alliance, and its actual backers sustains intrigue. The nonprofit was started concurrently with the Alliance, with political consultant David Lobl listed as its registered agent.

Bryan O’Malley, the executive director of the Alliance, confirms that United CDPAP is a nonprofit social welfare organization with a mission aligned to the Alliance’s objectives. Yet, he sidesteps further details about the millions flowing to the Alliance through it.

Current Laws and Previous Violations

After the introduction of a law in 2011 aimed at unveiling lobbying financiers, attempts to dodge it have been met with regulatory countermoves. One instance involved a complex network of donations channeled through a law firm to oppose a marine waste transfer station’s construction. The real estate giant Glenwood Management later admitted to funding the opposition via the law firm. This case sparked lobbying rules prohibiting entities from concealing lobbying contributors.

As new rules emerge, nonprofits like Alliance and United CDPAP must navigate transparently and effectively to operate within the bounds of the governing bodies. Moreover, as their activities continue to raise eyebrows, questions remain concerning the ethics and legality of their donor concealment practices.

Efforts Towards Transparency

Despite its major role in fundraising, United CDPAP does not appear to have an online presence, and its registration with the state attorney general’s charities bureau cannot be confirmed online. However, O’Malley states that United CDPAP is indeed a registered social welfare organization that abides by required reporting and disclosure practices. Nevertheless, with donations from United CDPAP forming the majority of the Alliance’s funding, the mystery of who’s backing them endures.

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