corporate cash

New Analysis Shines a Light on 2012 Election Spending

U.S. PIRG and Demos issue an analysis of how much campaign money is being spent by a few individuals and corporations.
PFAW Foundation

House Committee Shills for Fracking, Despite the Risks

This Friday, Darrel Issa’s House Oversight & Government Reform Committee will be holding a field hearing in Bakersfield, California, where several lobbyists who have made substantial contributions to members of the committee will argue against regulating “fracking,” or Hydraulic Fracturing. This technique for harvesting natural gas from deep within the Earth’s crust requires millions of gallons of water and thousands of gallons of a toxic chemical mixture—the contents of which the industry refuses to disclose.

PFAW has put together a fact sheet which details the dangers of fracking as well as the vast web of corporate cash that is influencing the committee’s actions—with potentially serious consequences to our health and the environment. You can view the fact sheet here.

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Republican Freshmen Seek Out Corporate Donors

Members of the far-right GOP freshmen class have not been sworn in yet, but are already becoming entangled in the Washington web of lobbyists and corporate donors. The incoming congressmen, many of them Tea Party candidates, have quickly put together fundraisers to pay off their campaign debts and also to fund their 2012 reelection bids. Unsurprisingly, corporate interests have readily stepped up to the plate to support their fundraising efforts, and freshmen Republicans are more than happy to have the help.

Dan Eggen of the Washington Post reports that with the help of the Republican House leadership, many GOP freshmen are embarking on an all-out blitz for corporate cash to recharge their campaign war chests:

After Francisco "Quico" Canseco beat Rep. Ciro Rodriguez (D-Tex.) as part of the Republican wave on Nov. 2, the tea party favorite declared: "It's going to be a new day in Washington."

Two weeks later, Canseco was in the heart of Washington for a $1,000-a-head fundraiser at the Capitol Hill Club. The event--hosted by Reps. Pete Sessions (R-Tex.) and Jeb Hensarling (R-Tex.)--was aimed at paying off more than $1.1 million in campaign debts racked up by Canseco, much of it from his own pocket.

After winning election with an anti-Washington battle cry, Canseco and other incoming Republican freshmen have rapidly embraced the capital's culture of big-money fundraisers, according to new campaign-finance reports and other records.

Dozens of freshmen lawmakers have held receptions at Capitol Hill bistros and corporate townhouses in recent weeks, taking money from K Street lobbyists and other powerbrokers within days of their victories. Newly elected House members have raised at least $2 million since the election, according to preliminary Federal Election Commission records filed last week, and many more contributions have yet to be tallied.

The aggressive fundraising efforts underscore the financial pressures facing new members of Congress even before they take their seats. The contributions also represent a symbolic challenge for the Republican class of 2010, many of whom gained office by running against the ways of official Washington and monied interests.

"The lobbyists are all saying, 'Welcome to Washington; let me help pay off your debt,'" said Nancy Watzman, who tracks political fundraisers for the Sunlight Foundation, a watchdog group. "It's particularly interesting when so many of this year's freshmen were running against Washington. But as soon as they get elected, they come to Washington and put out their hand."



Rep.-elect Bill Flores (R-Tex.), a retired energy executive who held a debt-retirement reception Nov. 17, received post-election contributions from political-action committees for, among others, Deloitte, ExxonMobil and the National Association of Insurance and Financial Advisors. Flores, who ousted Democratic veteran Chet Edwards, also forgave himself more than $600,000 in personal loans, FEC records show.

The financial advisors group also gave $2,500 each to more than a dozen other incoming legislators including Rep.-elect Dan Benishek (R-Mich.), who held a Nov. 18 fundraiser, records show. Benishek took in last-minute donations from Johnson Controls, Delta Airlines and the K&L Gates lobbying firm, records show.

Benishek is a surgeon and abortion opponent who won the seat being vacated by centrist Democrat Bart Stupak (D-Mich.). He campaigned against "ungodly spending" in Washington and pledged not to seek earmarks, which designate federal funds for local projects.



Meredith McGehee, policy director at the Campaign Legal Center, said debt-retirement events and other post-election fundraisers "are God's gift to special interests," allowing corporate PACs and lobbyists to curry favor with grateful lawmakers. It also allows some donors to pitch in with a candidate that they had previously ignored or opposed, she said.

"If you were on the wrong side or just AWOL during the election, this is your chance to make it up," McGehee said. "It' s a great way to get in good with members of Congress."
PFAW

Johnson Picks Corporate Lobbyist as Chief of Staff

The first major decision any newly-elected member of Congress makes is who will serve as his or her chief of staff. The personnel choice says a lot about the member’s personality and priorities. Off-the-charts extremist Congressman-Elect Allen West, for instance, chose off-the-charts extremist radio host Joyce Kauffman (before the “liberal left” raised some concerns about her role inciting a school shooting plot). It should come as no surprise, then, that Wisconsin Senator-Elect Ron Johnson, whose pro-corporate policies earned him plenty of corporate cash on the campaign trail, has picked a corporate lobbyist to lead his team in Washington.

Johnson’s pick, reports Express Milwaukee, is Don Kent, who after a gig at the Department of Homeland Security in the Bush Administration, “became a lobbyist at Navigators Global, where he ‘heads up the Homeland Security practice.’”:

Johnson’s choice of Kent shows that he’s trying to ingratiate himself with big defense contractors, Big Pharma and anti-worker groups.

Navigator Global’s clients include AgustaWestland North America, the world’s largest helicopter manufacturer; the Coalition of California Growers, which was fighting a bill that would make it easier for workers to organize; the Computer and Communications Industry Association, which was fighting an effort that would allow some taxpayers to file their state tax returns for free; the Council of Insurance Agents and Brokers, when then-New York Attorney General Eliot Spitzer was investigating the industry; Pfizer; and the Pharmaceutical Research and Manufacturers of America, which wanted to block the reimportation of Canadian drugs to bring down costs for consumers.

Plenty of people—including members of Congress—go in and out of the revolving door between Capitol Hill and K Street. But Johnson’s choice makes a clear statement about the difference between him and his predecessor, Russ Feingold. Feingold has been one of the Senate’s strongest champions of clean elections and transparent government, and wrote the campaign finance law that was largely gutted by the Supreme Court’s decision in Citizens United. In the first election after Citizens United, Johnson benefitted from a flood of outside money, some from pro-corporate groups, to unseat Feingold.

It’s one of the first signs that the corporate interests that funded Tea Party candidates across the country are going to get what they paid for.

Via The Awl
 

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Behind The Republican Money Web

Yesterday’s vote does not mean the end for the many Super PACs and shadowy political organizations that have emerged this election season. By raising hundreds of millions of dollars from individuals and corporations, often without having to disclose their sources of funding, these groups are able to maintain their political apparatus and prepare for the 2012 election. American Crossroads, the Karl Rove-linked Super PAC, is already crafting its role for the next election. Mike Duncan, the former head of the Republican National Committee and Chair of American Crossroads, told the New York Times, “We’ve planted the flag for permanence, and we believe that we will play a major role for 2012.”

Back in September, Time magazine discussed how pro-GOP groups such as American Crossroads and the American Action Network were working with Mississippi Governor Haley Barbour, the former RNC chief and current head of the Republican Governors Association. Republican notables and fundraisers “first convened at Karl Rove’s home,” and became nicknamed “the Weaver Terrace group, named for the Washington street on which Rove lives.” American Crossroads and its sister group Crossroads GPS, which does not disclose its donors, spent over $38 million combined to attack Democrats, and the American Action Network spent close to $20 million this year.

Now with the election over, Politico reveals that pro-GOP groups, the US Chamber of Commerce, and the National Republican Congressional Committee (an official Republican Party wing) were intensely coordinating their political efforts. Other Weaver Terrace group members, such as the 60 Plus Association and the American Future Fund, spent tens of millions of dollars against Democrats, but the US Chamber of Commerce and the NRCC made even bigger expenditures, spending $31.7 million and $44.5 million, respectively. As Jeanne Cummings of Politico described how “coordinated attacks” by Weaver Terrace group members “turned political campaigns largely into contests between business-backed, GOP outside groups and the Democratic incumbents.” Pro-GOP outside groups spent $187 million in 2010, more than double their pro-Democratic counterparts, and Cummings reveals how the organizations collaborated in order to maximize their impact:

The groups – including familiar names like the U.S. Chamber of Commerce and American Crossroads – shared their target lists and TV-time data to ensure vulnerable Democrats got the full brunt of GOP spending.

Republican groups had never coordinated like this before, participants said, and backed by millions in corporate cash and contributions by secret donors, they were able to wield outsized influence on the results Tuesday night. The joint efforts were designed to spread the damage to as many of the majority Democrats as possible, without wasting money by doubling-up in races where others were already playing.

The National Republican Congressional Committee, which could not legally coordinate with the outside groups, even took the extraordinary step of publicly revealing its own ad buy strategy.



The Chamber, which set aside $75 million in undisclosed corporate donations for the political season, is listed by Center for Responsive Politics as the biggest of independent players, investing nearly $33 million in radio, television and direct mail advertising alone.

Directly behind the Chamber on the Center’s outside group ranking is the coalition of groups formed by Rove and Gillespie. They are: American Action Network, which spent $26 million; American Crossroads, which invested $21 million, and Crossroads Grassroots Policy Strategies, which sank $17 million into ads and turnout communications in a plan to obliterate the Democrats’ Senate and House majorities.

Although donors to the Crossroads affiliates are largely unknown, the founders made no secret of the fact that they intended to take advantage of the Supreme Court ruling and tap into the vast resources of corporate America to raise more than $50 million help Republicans retake the Congress.

While that sum alone was enough to make Democrats’ nervous, the Crossroads founders also set out a more ambitious goal: To bring together the disparate new and old GOP political players so they could coordinate their efforts and maximize the damage on the political battlefield.

Cummings also shows how this plan worked out over the airways in competitive congressional districts:

In Pennsylvania, the Republican groups called in multiple players to bombard a half-dozen House Democrats, including some facing significantly underfunded Republican opponents. In the quest to oust Democrat Chris Carney, 60 Plus and the Chamber combined to spend about $1 million. The 60 Plus Association teamed up with the Center for Individual Freedom, another group that doesn’t disclose donors, to shell incumbent Democrat Rep. Paul Kanjorski with more than $600,000 worth of ads.

The close collaboration of pro-corporate groups only increases the need for greater transparency in the political process. Americans this election have seen dozens if not hundreds of ads and received substantial amounts of direct mail and phone calls from groups who reveal little information about themselves and do not have to disclose their sources of funding. Voters deserve the right to know who is working towards the election or defeat certain candidates for office, and overwhelmingly support disclosure laws. As such organizations creating new partnerships and intensifying their coordination, Congress needs to pass the DISCLOSE Act to allow the public to know who is behind these outside groups.

 

 

PFAW

Big Money in State Elections

The PFAW Foundation’s Young Elected Officials Network is gathering this week in Washington, in part to discuss how to work on national progressive issues on the state and local levels.

A panel this afternoon discussed local activism to fix the Supreme Court’s decision to grant corporation’s huge power to influence elections—and the outsized impact that corporate money can have on state- and local-level campaigns with small budgets.

Jeffrey Clements, and attorney who helped found the advocacy group Free Speech for the People, brought up the case of Montana, whose nearly hundred-year-old ban on corporate campaign contributions and expenditures is being challenged in court in the wake of Citizens United. In 2008, the average winning state senate candidate in the state spent just $17,000. An infusion of corporate cash into the state's elections would have a dramatic impact, Clements argued.

Massachusetts State Senator Jamie Eldridge, a member of the YEO Network, came to the issue with an interesting perspective—he is the only “Clean Elections” candidate to have ever won office in Massachusetts (he first ran for a seat in the state House of Representatives one year in which Massachusetts had a Clean Elections public financing program).

“When I first ran, I was entirely publicly financed,” he said, “I didn’t have to raise money and could go door-to-door talking to voters about what they cared about.”

State elections with unlimited contributions from corporations and individuals aren’t uncharted territory—six states currently have no contribution limits at all—but it will be interesting to see how campaigns in states like Montana change if the rules that candidates have been playing by for decades disappear.
 

PFAW

The First Corporate Ad – An Avalanche Begins with One Flake

The ad below may not look like much, but it’s a sign of much greater – and troubling – things to come. It appears to be the very first political ad purchased with corporate money, all thanks to the Supreme Court’s ruling in Citizens United.

The ad ran in a handful of small Texas newspapers and was purchased by KDR Development Inc., a local real estate firm, to oppose a political enemy of the firm’s president, Larry Durrett.

Durrett, who also runs a chain of fast food franchises, told the Texas Tribune that his “businesses do better under conservative people.” Asked why he used corporate rather than personal money, Durrett said that he took “the money out of the pocket that's got some money in there.”

Apply the same logic to giant corporations, and you can see we have a massive problem on our hands. The Supreme Court gave Exxon the same right to spend a billion dollars as it gave Durrett to spend a few thousand.

Durrett’s modest ad buy is a warning to us all – the avalanche of corporate cash is coming. Click here to join our campaign for government by the people, not corporations.

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