State's ex-budget chief draws fine for work with LI lobbyist

ALBANY — The state’s former acting budget director admitted she violated state ethics laws and agreed to pay a $5,000 fine after an investigation found she took actions that benefited a former state senator from Long Island turned lobbyist.

Probes by the state Commission on Ethics and Lobbying in Government and the state Inspector General’s office determined that in February 2021, Sandra Beattie brought on Michael Balboni, who was a registered lobbyist, to serve as a voluntary consultant for the state’s effort to develop the Excelsior Pass.

“Ms. Beattie positioned a registered lobbyist, with whom she had a personal friendship and from whom she received personal favors, in a position to benefit greatly from contract work for the Office of Information Technology Services and its vendors," said Sanford Berland, the commission's executive director in a statement.

The pass was supposed to be a way for New Yorkers to show their coronavirus vaccine status but was criticized for cost overruns.

Beattie had worked for the state Division of Budget since 2016. During the time in question, she was the first deputy director for the state’s budget office and in January 2023 she was named acting budget director.

In April 2021, Deloitte Consulting hired Balboni as an hourly subcontractor and then brought him on as a lobbyist in September 2021, according to the settlement agreement Beattie signed. The New York Times reported Deloitte ultimately paid him more than $300,000 over the next two years.

That June, Division of Budget staff implemented a recusal plan, which was meant to put certain restrictions on Balboni’s ability to lobby budget officials, the executive chamber and other state agencies.

In February 2022, Beattie and her then-partner spent four evenings with Balboni and his wife at the couple’s home in Florida. During that time, Balboni was lobbying the Division of Budget.

Beattie also did not seek permission to appear as a guest speaker at a May 2022 event hosted by Balboni that included some of his clients who had business with the state, according to the agreement.

And in October 2022, she also signed off on an invoice for payment to Deloitte and Balboni for work done in 2021.

Balboni is now president of Adelphi University. He served as an assemblymember and state senator, representing parts of Nassau County from 1990 to 2006.

Balboni’s office at Adelphi did not respond to a request for comment on the settlement.

Michael McKeon, a private spokesman for Balboni, said in a statement that Balboni always acted ethically during his time in the private sector and disclosed his activities appropriately.

"He built a successful business because his clients knew they would get first-class advice and service, but that ultimately they would need to compete for business on the merits of their offerings," he said.

Beattie was fired from the administration in March 2023 after Gov. Kathy Hochul asked the inspector general’s office to review a series of contracts awarded to private consultants.

The New York Times reported when she turned in her cellphone, it did not have the state’s records retention software installed and its data had been erased.