Klein Explains Decision to Stop Earning Outside Income

In the wake of former Assembly Speaker Sheldon Silver’s arrest on corruption charges and U.S. Attorney Preet Bharara’s promise to clean up Albany, state Sen. and IDC Leader Jeff Klein has voluntarily left his law practice in the Bronx to “lead by example.”

“Albany is in jeopardy of forever losing the sacred trust that of the people they represent expect and deserve. I think we’re in an ethical crisis and at a critical crossroads and I think we must take action to restore the public’s trust,” Klein told City & State. “I’m always someone who feels that individuals and leaders should lead by example and that’s why I voluntarily divested from my small law practice in the Bronx.”

Klein will no longer seek a salary from the firm, see clients and his name will be removed from the law firm’s signs and website. NY1 reported the news Monday night.

Before he was elected, Klein worked at a large personal injury firm. He decided to leave to start a small law firm in the Bronx with two law school colleagues after he was elected to the state Legislature 20 years ago.

Klein said his firm never had any business before the state or the state Legislature and he said he felt there was no conflict with his job as an elected official.

On his most recent financial disclosure, Klein reported earning between $75,000 and $100,000 last year in "guaranteed payments" from the firm. He also reported under $1,000 in interest income from the firm, in addition to $1,000 or less from teaching at Mercy College and a combined $10,000 to $40,000 for legal work for two caterers.

“I think over the last several weeks, certainly things have changed,” he said. “I think the current climate in Albany leaves elected officials with a simple choice: serve the public who elected you on a full-time basis or keep a full-time career out of Albany.”

Klein said a full-time Legislature with an accompanying pay raise would remove any conflict of interest issues for elected officials. A pay raise for a full-time Legislature, he argued, would also prevent lawmakers from seeking other sources of income to make ends meet.

Some elected officials have proposed full disclosure of outside income or caps on the amount of outside income that can be earned, but Klein said the most effective way to root out potential corruption would be a full ban.

“Just because someone makes $25,000 a year doesn’t mean that it couldn’t potentially be a conflict,” he said. “So I think the cleanest way, the most effective way is to just ban outside income.”

A state legislator receives an annual salary of $79,500 for a legislative session, which typically lasts from January to June.

Silver in his financial disclosure report for 2013 reported he made about $750,000 in outside income from the private law firm that is now at the root of his legal troubles. As speaker, Silver earned an additional $41,000 as a legislator.

Klein’s announcement also follows a report that state Senate Majority Leader Dean Skelos is under investigation by Bharara for his outside job at a law firm.

Cuomo last week announced he will not sign a budget agreement that does not include major ethics reforms.

Klein also added that even if the state Legislature fails to act on a pay raise or ethics reforms, he will not return to the law firm in the future.

“This is different from a year ago or even a month ago and I’m hopeful that now everyone will understand that we need to do this,” Klein said. “If we’re going to have a system that works for everyone, a system that is free of any potential conflict, everyone has to make their choice. I already made my choice.”