Money in Politics This Week

Every Friday, the Brennan Center will be compiling the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. We’ll also be linking to dispatches from around the country highlighting the national scope of this crisis. This week’s links were contributed by Robert Friedman.

For more stories on an ongoing basis, follow the Twitter hashtags #moNeYpolitics and #fairelex.

New York Campaign Finance and Ethics News

1. Though the legislative session drew to a close last week, the pressure on Albany to enact campaign finance reform has not let up.  Editorials in both Newsday and The New York Times cite the failure to pass pending reform measures as one of the legislative session’s shortcomings.  It is clear that support for enhanced disclosure rules and public financing will not fade before the start of the next session.

2. Advocates are using the break between legislative sessions to set the stage for campaign finance reform proposals to become law when New York’s legislators reconvene in Albany in January.  Two NY LEAD members, Chris Hughes and Sean Eldridge, have committed $250,000 to a 501(c)(4) nonprofit that will push for the passage of campaign finance reform, according to a report in The New York Times.  The campaign, titled Protect Our Democracy, is modeled after the successful strategy that led to marriage equality for New Yorkers and will inject itself into the upcoming state elections to put pressure on state senators that failed to support reform this past legislative session.  The Governor has already announced that he intends to work with the group.

3. As federal authorities have been slow to investigate tax-exempt advocacy groups for potential violations of tax and election laws, New York Attorney General Eric Schneiderman moved this week to take matters into his own hands.  New York law confers broad subpoena authority on the Attorney General, and Schneiderman is employing it to investigate whether the U.S. Chamber of Commerce illegally obtained $18 million from a supporting foundation.  Whether or not these advocacy groups will continue to operate in the gray area of the law in other areas of the country, Attorney General Schneiderman took an important step to ensure they cannot do so in New York.

National Campaign Finance and Ethics News

1. Some learn from their mistakes; the Supreme Court doesn’t.  This week, the nation’s highest court let a golden opportunity to reconsider, or at least narrow, Citizens United slip through its fingers.  The Court summarily reversed the Montana Supreme Court’s decision upholding a state law that banned unlimited independent expenditures by corporations.  Without hearing oral argument or considering full briefing, the Supreme Court briefly explained that the law is unconstitutional and that—the massive spending by single-candidate Super PACs and the feelings of everyday citizens notwithstanding—purportedly independent expenditures cannot give rise to corruption or the appearance of corruption.

2. Untold sums of money will be spent on the upcoming elections, with over $3 billion already raised.  An important cause of this inevitably problematic situation is the inadequacy of current public financing schemes.  For candidates to break out of the cycle of fundraising and spending, which some estimates now predict will reach $6 billion total before the elections is over, there must be a viable alternate mechanism in place. 

3. We are one step closer to enhanced disclosure of TV political ads.  The White House Office of Management and Budget approved a rule that would require television stations to post online information regarding the buyers of political ads.  Though the rule must still go through a notice and comment period, the path to increased sunlight is a bit clearer now.

    

Money in Politics This Week

Every Friday, the Brennan Center will be compiling the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. We’ll also be linking to dispatches from around the country highlighting the national scope of this crisis. This week’s links were contributed by Robert Friedman.

For more stories on an ongoing basis, follow the Twitter hashtags #moNeYpolitics and #fairelex.

New York Campaign Finance and Ethics News

1. At the close of the legislative session, faith leaders from across the religious spectrum came together to provide momentum for the campaign finance reform movement as it moves into the break between sessions. In a letter to Governor Cuomo and the state legislature that draws on lessons from the Old Testament, the New Testament, and the Qur’an, 56 religious leaders across the state urged Albany to enact reform legislation, which would use public financing to match small donations at a six-to-one ratio. “Our ancient traditions recognized the power of gifts to corrupt public officials and tip the scales of justice towards the wealthy and powerful,” the letter said, emphasizing that the problems with the status quo have long been evident. Next year’s legislative session provides another opportunity to fix this perennial problem.

2. Ethics issues continue to swirl around Michael Grimm, Staten Island’s representative to Congress. Less than a month ago, Grimm was cited for violating House ethics rules on fundraising. Now, the FBI and the U.S. Attorney’s office are investigating allegations that Grimm’s 2010 campaign pressured contributors to give more than the legal limit, according to a report the New York Daily News. Questions about how Grimm raised money for his first run for office arrive as he prepares to run for a second term this fall.

National Campaign Finance and Ethics News

1. Unlimited spending is good, and non-disclosure is better—or so independent expenditure groups seemed to think in 2010. A recent study from the Center for Public Integrity and the Center for Responsive Politics reveals that 501(c)(4) groups spent roughly $95 million in the 2010 election, $30 million more than Super PACs that disclose their donors. 501(c)(4) groups are “social welfare” organizations that cannot have electing a candidate as a primary purpose. Many of the groups operate in a gray area between social welfare and politics, but so long as the IRS classifies a group as a 501(c)(4), it need not disclose its donors. While Super PACs have outspent 501(c)(4) groups in the current election cycle, more robust disclosure rules and enforcement of bans on coordinated expenditures are plainly needed for both types of organizations.

2. The FEC should act quickly on a petition from President Obama’s campaign that alleges a high-spending 501(c)(4) organization is required to disclose its donors. Last week, the Fourth Circuit Court of Appeals decided that a 501(c)(4) organization must disclose its donors if its “major purpose” is to elect a candidate for office. Whether or not the FEC agrees with the Obama campaign, it should issue a prompt decision to give teeth to the Fourth Circuit’s decision. A slow response will implicitly encourage 501(c)(4) groups to skirt the laws now, knowing consequences will come only after the November elections have passed and the damage has been done.

3. With the Supreme Court soon to decide whether to hear a case that could be the sequel to Citizens United, federal legislators are not content to leave reform in the hands of the nine justices. Proponents of the DISCLOSE Act are once again pushing the reform measure, which would “increase transparency in corporate donations to political action committees, allow shareholders to vote on whether a company should be spending money on politics and require CEOs to stand by ads if they are primary sponsors of the PACs running them.” Senator Sheldon Whitehouse, the lead sponsor of the Act, aims to bring the bill before the full Senate’s attention prior to the November elections.

Voter Friendly Ballot Act Passes Assembly

We just got word that the Voter Friendly Ballot Act has passed in the Assembly.

The Voter Friendly Ballot Act is product of collaboration between New York State Assemblyman Brian Kavanagh, the Brennan Center, the Usability Professionals Association, and AIGA, the professional association for design. The bill was introduced to give election officials the flexibility to create ballots that are simple and easy for New Yorkers to use and understand. A major Election Day complaint in 2010 was that the ballots were confusing and difficult to read. The state’s ballot design is governed by strict guidelines in the election law that were written for the recently-replaced mechanical lever voting machines.

The legislation would update the antiquated laws governing ballot design and would allow election officials to create ballots that contain shorter instructions that are easy to understand and free of legal jargon. It would display candidates’ names in clear, bold, readable text. It would reduce ambiguity and confusion by positioning fill-in ovals directly next to candidates’ names on the left. The bill would also allow for increased text size and legibility by reducing clutter near candidates’ names.

Here’s an example of the types of ballots the bill would allow election officials to create – a major improvement from 2010.

Making sure that ballots are not confusing and easy to read is something politicians of all political stripes should be able to agree on.  We hope the Senate follows the Assembly’s lead ASAP.

Money in Politics This Week

Every Friday, the Brennan Center will be compiling the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. We’ll also be linking to dispatches from around the country highlighting the national scope of this crisis. This week’s links were contributed by Robert Friedman.

For more stories on an ongoing basis, follow the Twitter hashtags #moNeYpolitics and #fairelex.

New York Campaign Finance and Ethics News

1. As the legislative session winds down, the chorus advocating for campaign finance reform in New York State keeps growing louder.  An editorial in the Huffington Post draws on examples from other states to argue that public matching funds will increase constituent involvement and help dull the effect of a few wealthy donors and special interests.  The editorial also recommends adopting a rule that would provide free and equal advertising for candidates, noting that the idea has gained support from both liberal and conservative groups.

2. Environmental groups in the midst of an ongoing fight against fracking have fully recognized that campaign finance reform for New York would provide a boost to their movement.  Gas companies and their trade associations donated over $1.3 million to New York state officials and campaign committees between 2007 and 2011, and an editorial in Newsday argues that it’s no coincidence that the state budget failed to include funds for a study of the dangers of fracking.  “[T]he greatest threat to our environment here in New York may be an unlikely suspect: big money.”  A coalition of environmental groups have penned a letter to Governor Cuomo expressing support for the pending Fair Elections Act.

3. Lobbyists contributed over $1.8 million in campaign contributions and bundled contributions to New York legislators in 2011, reports the Times Union.  The pernicious effect of these contributions is exacerbated by New York’s lack of disclosure rules.  While the New York Public Interest Research Group managed to piece together scattered pieces of information to report the issue, the public should not have to wait until an annual survey is released to learn the sources of political contributions.  Rather, continuous disclosure should be the norm.

National Campaign Finance and Ethics News

1. The push to give everyday Americans a bigger role in funding candidates’ campaigns had a big victory this week.  The FEC approved the use of text messages to make donations of up to $50 to political committees, a move supported by Republicans and Democrats alike.  “In the age of six- and seven-figure donations to super PACs, we should be doing more to encourage policies like this that enhance the role of small-dollar donors in our political process,” said Nick Nyhart of Public Campaign.

2. The scramble to raise enough funds to compete in November is driving the presidential candidates away from courting voters in swing states and towards elite fundraisers wherever money can be raised.  The L.A. Times reports that President Obama is spending increasingly less time speaking with voters, attending town-hall meetings, and giving speeches in battleground states.  Obama’s advisers have said that the campaigning strategy is not ideal, but is nonetheless a necessary step in adjusting to the “new reality” of money in politics.

3. The 28^th Amendment?  David Axelrod said that a constitutional amendment to roll back Citizens United might be in President Obama’s toolkit if he should win reelection.  “I hope that one of the things we can do, when we win this election, is use whatever tools are available, up to and including a Constitutional amendment, to turn this back,” Axelrod said.

Money in Politics This Week

Every Friday, the Brennan Center will be compiling the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. We’ll also be linking to dispatches from around the country highlighting the national scope of this crisis. This week’s links were contributed by Robert Friedman.

For more stories on an ongoing basis, follow the Twitter hashtags #moNeYpolitics and #fairelex.

New York Campaign Finance and Ethics News

1. Although the clock on this legislative session is winding down, reform advocates remain confident that New York’s legislators will enact new campaign finance rules in the near future. “The question about campaign finance reform and public funding of elections is whether it will be adopted soon or sooner,” said Susan Lerner of Common Cause. While government officials are hesitant to say that anything will pass before the end of the current session, multiple reform bills have been introduced.  Grassroots activists continue to pressure reluctant legislators to support reform, and civic leaders such as former New York City Mayor Ed Koch are pushing for change.

2. The campaign finance reform movement heard from some important labor allies this week. Numerous unions voiced their support for bringing reform to New York and urged Albany to enact the proposed public financing bill, which will match small donations at a six-to-one ratio. “It is imperative that we address this issue during the 2012 legislative session,” wrote New York State United Teachers in its memorandum of support.

3. New York has a lot of room for improvement when it comes to enhancing its disclosure rules. A new report by the Corporate Reform Coalition gives the Empire State a score of 10 out of 100. This makes New York second to last among the fifty states, just ahead of North Dakota. The Coalition recommends both stronger enforcement of current state disclosure rules and adoption of important reforms, including mandating the disclosure of “electioneering communications” (spending that is intended to influence an election but that steers clear of so-called “magic words” such as “vote for” or “vote against”) and requiring political advertising to include information about the ad’s sponsor.

4. The New York Times reports that the Committee to Save New York, an advocacy group that has supported a number of Governor Cuomo’s policies, received significant donations from groups seeking to bring casinos to New York. The article questions the timing of the donations and Governor Cuomo’s public support for growing the gambling industry, while the Cuomo camp denies that the contributions in any way affected his policies. An editorial in The New York Times urges Governor Cuomo to ask his supporters to voluntarily disclose their contributions to the Committee, even though the state ethics board has yet to issue rules that would mandate such disclosure.

National Campaign Finance and Ethics News

1. Calls for stricter enforcement of IRS rules grow as advocacy groups walk a fine line in their efforts to keep donors anonymous. An editorial in The New York Times argues that the IRS has been too lax in defining what it means for a 501(c)(4) non-profit to have a “primary” purpose of political activity, which would force such groups to give up their (c)(4) status and either pay taxes on donations or convert to a Super PAC and disclose donors.  A more stringent rule on how these groups can spend their money, the editorial contends, will benefit the public through either increased tax dollars or increased disclosure.

2. The potentially corruptive tie between campaign contributions and candidates was a theme this week. After a jury acquitted John Edwards of one count of receiving illegal contributions and the judge declared a mistrial on five other counts, speculation continues as to whether the government will retry the former presidential candidate. The Supreme Court declined to take an appeal of former Alabama Governor Don Siegelman, meaning that his conviction for illegally accepting $500,000 in campaign contributions intended as a bribe will stand. And now, the Justice Department has indicted a lobbyist for illegally funneling campaign contributions to Senator Harry Reid. Senator Reid has not been accused of any wrongdoing.

3. Record amounts of money were spent in the Wisconsin recall election, according to an article from The New York Times. In total, the election cost $63.5 million. The two candidates spent $32.2 million, and issue ad groups and independent expenditure groups spent the rest. Governor Scott, who outspent his opponent $29.3 million to $2.9 million, prevailed on Election Day.

Election Bills Pending in City Council

Our friends at Citizens Union alerted us to six important bills pending in the New York City Council that would help increase voter participation and make sure that Election Day runs as smoothly as possible. As, we know, this coming election will be the first time that the City uses its new voting machines in a presidential election where turnout is expected to be high and both voters and election officials will benefit from greater preparation.

At a time when state governments across the country have passed laws in record numbers that make it harder to vote, this package of election bills is a great example of how local governments can take action to improve elections. We hope that the City Council will advance these bills by holding a hearing so that election experts, good government groups, and members of the public can provide their input. 

The six bills in the package are listed and summarized below: 

• Intro 613 would help keep registered voters informed of important election related dates by requiring the Campaign Finance Board to send email notifications to voters who sign up to receive them;
• Intro 721 would provide incentives for City employees to serve as poll workers on Election Day and staff unfilled positions; 
• Intro 728 would make registering to vote easier for parents by requiring that voter registration forms be provided when they enroll their children in school; 
• Intro 760 would require that the City Board of Elections track and publish data on the number of residents who the complete voter registration forms while seeking services at city agencies;
• Intro 769 would help keep voters informed by expanding the City’s Voter guide to include state and federal elections; and 
• Intro 778 would allow the City Council to better measure the performance of the Board of Elections by requiring that it report data required by the Mayor’s Management Report.

Money in Politics This Week

Every Friday, the Brennan Center will be compiling the latest news concerning the corrosive nature of money in New York State politics—and the ongoing need for public financing and robust campaign finance reform. We’ll also be linking to dispatches from around the country highlighting the national scope of this crisis. This week’s links were contributed by Robert Friedman.

For more stories on an ongoing basis, follow the Twitter hashtags #moNeYpolitics and #fairelex.

New York Campaign Finance and Ethics News

1. Federal as well as state representatives are mired in ethics issues. Representative Michael Grimm of Staten Island has been cited for violating the House of Representatives’ rules on permissible fundraising emails, Staten Island Live reports. Representative Grimm sent a video of one of his speeches on the House floor in a solicitation for donations, a direct violation of the House rules for which Representative Grimm took responsibility.

National Campaign Finance and Ethics News

1. People remain fed up with the influx of cash into the political system. A new poll finds that 75 per cent of Americans think there is too much money in politics, and 76 per cent think the status quo enables wealthy individuals to have more influence than the average American. With billions expected to be spent on the next round of elections, the discontent will likely only grow.

2. Robust disclosure laws are integral to calculating the role of money in politics, but a number of members of Congress seem determined to keep the public in the dark. The Senate Homeland Security & Governmental Affairs Committee recently approved a bill that would shield federal contractors from laws that require disclosure of political spending and lobbying. While the new legislation has found considerable support in some corners, Mother Jones reports it is unlikely to become law any time soon because it lacks the backing of Senate Majority Leader Harry Reid, who is responsible for bringing the bill to a vote.

3. The House’s decision to ban earmarks has failed to stop representatives from finding a way to give special treatment to political contributors. Representative Mike Fitzpatrick has introduced 12 bills to suspend tariffs on certain chemicals, and eight of the bills would directly benefit United Color Manufacturing, whose owner’s family has donated $26,000 to Fitzpatrick and $150,000 to other Republican candidates and party organizations over the past ten years, according to Roll Call. This type of tariff earmark may not strictly fit constitute the type of earmarks the House prohibits, but representatives are being urged to obey the spirit, not just the letter, of the rule.

4. One billion dollars. That’s the target amount a group of Super PACs has decided is necessary to support a presidential campaign, Politico reports. The group has plans to spend a billion dollars before the conclusion of the November elections.

5. Tradition, as it turns out, is not law. Though presidential candidates have routinely voluntarily disclosed the names of all of their fundraisers, campaign finance rules only require disclosure when the fundraiser is a lobbyist. Presidential candidate Mitt Romney is taking advantage of this gap in the current disclosure laws and refusing to disclose the names of fundraisers who are not lobbyists, according to a USA Today Report. The need for more robust mandatory disclosures is clear.