A panel appointed by Gov. Andrew M. Cuomo issued a stinging assessment of the state’s political culture on Monday, saying it had found evidence of probable wrongdoing and recommending sweeping changes to New York State’s elections, ethics and campaign finance laws.

The panel, the Commission to Investigate Public Corruption, which Mr. Cuomo appointed in July after a series of scandals involving members of the Legislature, described a political system in Albany where money is dominant and misconduct has become commonplace. “The commission’s preliminary observation is that both the general state of our political system, and the way business is transacted within it, cry out urgently for reform,” the report found. “New York needs comprehensive reform to restore the public trust.”

The commission’s study offered a bleak picture of New York’s government. The panel said its investigation, which is continuing, had found “deplorable conduct, some of it perfectly legal yet profoundly wrong; some of it potentially illegal,” and promised to refer some findings to law enforcement.

While providing limited details, the report described “a pay-to-play political culture driven by large checks,” in which wealthy interests exchanged campaign contributions for legislation; candidates spent campaign money on personal items like clothing and cigars; and the Board of Elections consistently failed to enforce election laws. The report suggested that campaign finance laws were so lax that fund-raising can amount to “legalized bribery.”