Former New York Deputy Budget Director Sandra Beattie has agreed to a $5,000 fine after admitting to violations of state ethics laws. The violations stemmed from her personal relationship with lobbyist Michael Balboni while his client's firm was awarded an $11 million state contract for the Excelsior Pass, a COVID-era health passport.

Beattie, who previously served under former Gov. Andrew Cuomo and later Gov. Kathy Hochul, admitted to violating ethics laws in a settlement with the Commission on Ethics and Lobbying in Government. The settlement documents detail that Balboni, whom Beattie had brought in as a "volunteer consultant" for the Excelsior Pass project, provided her and her significant other with a four-day stay at his Florida home. During this period, Beattie was also invited to speak at an event hosted by Balboni, a former state senator.

The Excelsior Pass project, which was outsourced and ran significantly over budget, involved Deloitte as a consulting giant. Balboni was brought on as a subcontractor by Deloitte, earning over $100,000 from the state's contract while continuing his personal relationship with Beattie. This occurred despite a recusal agreement that prevented him from lobbying the budget office.

Sanford Berland, Executive Director of the Commission on Ethics and Lobbying in Government, stated that 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." Balboni's firm, Red Land Strategies, reportedly earned at least $10,000 a month as a lobbyist, accumulating up to $300,000 through the arrangement.

Beattie was reportedly caught signing an invoice to pay Balboni under the $11 million contract. The state awarded numerous contracts to Deloitte during the pandemic, totaling hundreds of millions of dollars for tasks such as operating unemployment insurance phone lines.

Governor Hochul terminated Beattie in March 2023 amid state budget negotiations. Her dismissal followed an investigation by the New York Inspector General's Office, which also identified former state IT department boss Rajiv Rao. Rao also admitted to ethics violations and was noted for speaking at Balboni's events. His agency had awarded a contract to one of Balboni's clients, T-Mobile, shortly after attending one of these gatherings.

The investigation also revealed that Rao had provided Beattie with a state-issued cellphone lacking standard monitoring software. Beattie reportedly wiped the phone clean before returning it on the day of her termination.

Records also indicate that in March 2021, while Beattie was first deputy budget director, the Cuomo administration signed a non-disclosure agreement with Balboni concerning his involvement in the reopening of a venue that was also a client of his. At the time, Balboni represented the New York Nets.

Kara Cumoletti, Hochul's Press Secretary, stated that the governor "has always been committed to restoring confidence in government." She added that when concerns were raised, the individual was terminated and the matter was referred to the Inspector General. "The Governor has been clear that her Administration has no tolerance for those who violate the public’s trust and all parties should be held accountable."