Senate Majority Leader Malcolm Smith used campaign funds to give a fellow Democratic lawmaker a $2,800 “personal loan” – a possible violation of state election law.

Smith, a Queens Democrat, gave the money to Sen. Ruth Hassell-Thompson, a Mount Vernon Democrat, on Jan. 2, his campaign’s recent filing with the state Board of Elections shows.

“It was used for something personal,” said Smith spokesman Austin Shafran, who declined to elaborate.

Hassell-Thompson also declined to provide details, other than to say it was a “personal loan to me, and it’s going to be paid back in March.”

State election law allows campaign funds to be used for any lawful purpose, but also says “such funds shall not be converted by any person to a personal use which is unrelated to a political campaign or the holding of a public office or party position.”

Election officials did not respond to calls for comment.

“You should not be able to make personal loans with campaign contributions,” said NYPIRG’s Blair Horner.

Smith has been a vocal proponent of tighter campaign finance laws. In 2007, he backed away from a deal granting state lawmakers a raise because Republicans failed to support campaign finance reform.

Shafran said Smith believed the loan to Hassell-Thompson was appropriate.

“He wouldn’t have done it if he didn’t feel it was appropriate,” Shafran said.

Smith’s Jan. 15 financial statement also showed he spent $2,396 on Jan. 2 for Delta Airlines tickets.

Shafran said the tickets were for Smith, his wife and three Senate staff members to fly to Washington for President Obama’s inauguration.

Smith’s wife is not on his campaign or on the state payroll.

Shafran said Smith plans to reimburse his campaign for his wife’s ticket.

Horner said Smith’s use of campaign money highlights the need for reform of New York’s loophole-ridden laws.

“These are expenditures that are at best questionable and at worst prohibited under the law,” Horner said.

Source: NY Daily News