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 Syed Zaidi.
For more stories on an ongoing basis, follow the Twitter hashtag#moNeYpolitics and #fairelex.
CAMPAIGN FINANCE REFORM AND ETHICS NEWS
NEW YORK
Tech Industry Leaders Push for Fair
Elections in New York State
A group
of more than 30
technology industry leaders have endorsed the Fair Elections effort to
overhaul New York State’s campaign finance laws. In an open
letter to Governor Andrew Cuomo, the tech leaders encouraged
the Governor to continue to take the lead in pushing for a system of
citizen-funded elections that matches contributions by small donors. The tech
advocates pointed to the success of crowd-funding platforms like Kickstarter,
where citizens can pool resources to support new business ventures, and open-source
software as examples of the transparent, diverse and grassroots-oriented
culture of the web. “It is time to bring the same way of doing things to
campaign finance in NY State, and create a national model that will strengthen
small-d democracy,” they insisted. Unfortunately Albany is currently dominated
by a small number of affluent campaign donors, professional influence-peddlers
and deep-pocketed special interests. New York Tech Meetup chairman and Persona
Democracy Media founder Andrew Rasiej said it
best,
“Democracy is an incredible application, but it’s time for an upgrade to work
out some of the bugs that have crept in.”
New York City Campaign Finance Board Tough
on Campaign Violators
The New
York City Campaign Finance Board has fined Brooklyn ex-City Councilman Kendall
Stewart with $200,000 for a series of legal violations. Stewart will have
to pay back $136,940 in public funds that he received for the race plus $60,888
in penalties for violating a dozen different regulations, unless he
successfully appeals the decision. The Board has charged Stewart with exceeding
the spending limits candidates agree to abide by in exchange for public funds,
engaging in illegal campaign coordination with his local political club, and failing
to respond to requests for post-election audits, among other offenses. The case
is an example of the excellent enforcement of the laws on the books by the NYC
Campaign Finance Board. Stewart must repay all the fines before receiving any
more public funds and may see liens placed on his personal property.
NATIONAL
67 Percent of Americans Support a Small
Donor Matching System
Reform NY
has previously reported on numerous polls and surveys that express near universal disgust by Americans at our
system of legalized political bribery. In the latest poll of 1,000 likely 2012
voters by Greenberg Quinlan Rosner, Americans are evermore alarmed at the
rate of campaign spending this election cycle and increasingly supportive of
overhauling the way our elections are financed. Approximately 61 percent of respondents
give the current level of money in politics an unfavorable rating, including 62
percent of Obama voters and 60 percent of Romney voters. Two-thirds of
Americans believe that our democracy is undermined by big donors and secret
money. Trust in our institutions is faltering as well. A strong majority think
that special interests, lobbyists and campaign contributors have the most
influence over how members of Congress vote as opposed to their constituents.
In perhaps the most startling news, 67 percent of Americans support creating
a system which matches small donor contributions (below $100) with public funds, while large majorities support greater
disclosure of outside money (85 percent) and closing the revolving door between
Congress and lobbyists (81 percent). David Donnelly, executive director at
Public Campaign Action Fund states that “Republicans, Independents,
and Democrats all agree—our political system too often rewards those with the
most cash and elected officials should take action to restore our democracy to
one that is of, by, and for the people.”
Occupy Wallstreet and Tea Party Join Hands with Abramoff to Reform
Federal Campaign Finance
What do the head of the Tea Party Patriots, an
Occupy Wall Street organizer, a former lobbyist, and a Harvard law professor all
have in common? They all support major reforms to our campaign finance
system. A bipartisan grassroots campaign dubbed Represent.Us is building public support for a new proposal, the American
Anti-Corruption Act. The proposed American Anti-Corruption Act restricts contributions by
lobbyists to $500 per year, subjects unrestricted Super PACs to the same
contribution limits as conventional PACs, broadens federal disclosure
requirements to all organizations spending $10,000 or more per election cycle,
establishes a five-year moratorium between exiting Congress and entering K
Street, and institutes a $100 tax rebate that voters can use to support
candidates that agree to accept no more than $500 per contributor per year.
After gathering 1 million signatures in support of the initiative, the group hopes to garner Congressional co-sponsors for the
legislation.
Post-election Spending Round-up
The
flood of money in the Presidential and Congressional races this election cycle
was truly shocking. According to the Center
for Responsive Politics, $6 billion was spent on the Presidential
election. The average winning House candidate spent $1.4 million this year,
whereas the winning candidate for Senate spent $9.5 million on the campaign
trail. Spending also proved to be remarkably
effective in Congressional races. House candidates with more campaign
and outside money on their side won 92.7 percent of House races. In the Senate,
63.6 percent of candidates that spent more were victorious. In total, Super
PACs and non-profits spent about $1 billion, with $562 million of that directed
towards the Presidential race and $360 million for Congress. Of this $562
million figure from the Presidential election, 23.7 percent was from groups
that provided no disclosure of their contributors. Analysis
by US PIRG and Demos shows just how easily a few wealthy elites
drowned out the voices the regular Americans. It took nearly 1.4 million grassroots donors who contributed
under $200 to the Presidential candidates to reach a total of $285.2 million.
They were overshadowed by just 61 big
donors that gave an average of $4.7 million each to Super PACs to reach
that same figure--$285.2 million.
Campaign Fundraising Continues
Post-Election
Candidates in close House races that
are yet to be decided are pleading
with donors for assistance as they likely head up litigation
challenges and recounts. Reviews of internal and public campaign emails, as
well as Federal Election Commission records by The Hill reveal that
several campaigns have kept their fundraising operations up and running. In
Florida, Representative-elect Patrick Murphy’s campaign sent out an email
asking for a monetary “gift” for the “lengthy legal battle” that is about to
follow. His opponent, incumbent Representative Allen West (R-FL) has a little
less than $3.4 million on hand to fund a legal challenge to these elections
results. In California, Ami Bera, Democratic challenger to incumbent Dan
Lungren (R-CA), recently asked supporters for more funds to ensure that “every
vote counts.” In our high stakes system, mega-political contributions coupled
with high spending are a norm that continues well after elections. Recent
victors in Capitol Hill are eager
to raise more funds, some hoping to retire debts from the
campaign trail while others prepare in advance for the next election cycle. The
Gula
Graham Group has invited lobbyists to nearly 40
Republican fundraisers, 19 of which are scheduled for next week. The events
cost anywhere from $500 to $2,000 per head. These early fundraisers are a prime
opportunity for lobbyists to get to know the newest faces in Congress.
According to Adam Smith, communications director at Public Campaign, “The fundraising never stops in Washington. These
lobbyists are trying to influence this debate and there’s no better way to make
your case than by handing over a $1,000 check to a Member of Congress.”
Montana Dark Money Non-profit’s Donors
Revealed
Earlier this
month, Reform NY reported about the ProPublica and PBS Frontline investigation
into a non-profit “social welfare” organization formerly named Western
Tradition Partnership and now called American Tradition Partnership. Non-profit
501(c)(4)’s manipulate loopholes and lax enforcement of Federal Election
Commission and Internal Revenue Service regulations to hide the identity of
their donors. WTP’s bank records were released by a court, and the latest examination reveals not only the major contributors
to the organization but also evidence of possible illegal coordination with
political campaigns. For
example, WTP bank deposits include a $557.50 check from Montana Legislator Dan
Kennedy to Direct Mail and Communications, a printing company. Direct Mail
and WTP share a post office box. Furthermore Allison LeFer, who runs Direct
Mail, is the wife of Christian LeFer, a former WTP official.
