Money in New York Politics

The Brennan Center regularly compiles 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. This week’s links were contributed by Eric Petry.

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

NEW YORK

Despite Federal Indictments, State Senators Win Primaries

Three New York Senators – Thomas Libous, John Sampson, and Malcolm Smith – entered the primary election on Tuesday facing federal criminal charges. Despite these legal troubles, both Libous and Sampson managed to win their races by safe margins – 28 points and 25 points respectively. Smith, on the other hand, lost by more than 50 percentage points in a landslide. While it remains to be seen whether Libous and Sampson will win in the general election this November, the primary this week showed that the presence of pending criminal charges can be is not necessarily a death knell for New York legislators seeking reelection. Gubernatorial hopeful Zephyr Teachout made Albany corruption a primary campaign issue and garnered 34 percent of the vote, the highest of any primary challenge to a sitting governor since primaries were instituted in 1970.

Consultants Avoid Regulation as Lobbyists

New York politics is starting to see the emergence of a new group of political actors: non-lobbyist strategic consultants. These consultants function like lobbyists in terms of access and ties to politicians, but they are able to avoid registering as official lobbyists. Their unofficial status allows them to avoid disclosure requirements, as long as they do not “attempt to influence politicians.” While this practice technically falls within the law, it raises suspicions because of the inherent influence strategic consultants can possess. Jennifer Cunningham, for example, worked closely with Attorney General Eric Schneiderman and Governor Andrew Cuomo throughout her political career, helping to get them both elected in 2010. After they were elected, Ms. Cunningham deregistered as a lobbyist to “avoid even the appearance of a conflict” of interest and resigned her job at a top lobbying firm. In the role as a strategic consultant, which she has kept since 2010, however, Cunningham has continued to represent clients before the state government, working closely with Schneiderman on a consistent basis. So close, in fact, that the Attorney General’s office initially refused an open records request to provide communications between Schneiderman and Cunningham, claiming that the conversations fell under an exception for “intra-agency records” between state employees.

JCOPE Holds First-Ever Hearings

For the first time in its 20-month history, the Joint Commission on Public Ethics held a hearing to discuss specific allegations of lobbying law violations. While JCOPE has engaged in enforcement actions previously, none had ever proceeded far enough to reach a hearing. The hearing officer, former federal Judge George Pratt, recommended that the three entities found in violation of disclosure requirements – Blackboard, Inc., Community Redemption Center, and YL Management, L.L.C. – each receive fines between $4,000 and $10,000. 

Money in Politics This Week

The Brennan Center regularly compiles 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 and Katherine Munyan.

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

NEW YORK

Federal Court Lifts Contribution Caps on Independent PACs

A Federal Appeals Court has granted preliminary injunction to a conservative political action committee seeking to accept contributions of more than $150,000 from individual donors. The New York Progress and Protection PAC filed an emergency appeal to the Second Circuit Court of Appeals after a District Court denied its request. New York law imposes an aggregate cap of $150,000 on the contributions an individual may make to all candidates and political committees within a year. While New York Progress and Protection PAC can immediately start accepting and spending unlimited sums, a decision regarding the broader question – the constitutionality of New York State’s aggregate contribution limit on donations to independent committees – has yet to be rendered. However, in their verdict on the preliminary injunction, the appellate judges noted that NYPPP’s arguments had a “substantial likelihood of success.” Lawrence D. Norden, the deputy director of the Democracy Program at the Brennan Center, said that “If this decision holds, there should be real concern that what we’re going to end up with in New York State is what we have on the federal level, which is candidates being sponsored like racehorses by very wealthy individuals.”

Siena Poll: Voters Think Corruption is a Serious Problem

In the latest Siena Research Institute Poll of registered voters in New York, a large number of citizens indicated their frustration with business-as-usual politics in Albany. When asked if they find corruption in the New York State legislature to be a serious problem, 82 percent said that it is a “very serious” or “somewhat serious” issue. This figure includes large majorities across all demographics including political party affiliation, region, race and income. Seventy-two percent of New Yorkers think that the Moreland Commission, which was appointed by the governor following the legislature’s failure to pass any anti-corruption bills, should continue investigating political corruption rather than propose a constitutional amendment and disband. Again support was strong, at least 70 percent, among most of the groups surveyed. Voters said that Governor Cuomo, Attorney General Schneiderman and federal prosecutors are doing the most to address corruption and that the state legislature is doing the least.  

Niagara County Legislature Delays Legal Representation for Citizens Fighting Expansion of Hazardous Waste Site

For years, the Niagara County Legislature opposed CWM Chemical Services’ request for the expansion of a hazardous waste landfill in Porter, New York. But recently, the County may have had a change of heart; it has failed to renew a contract with Gary A. Abraham, an Allegany attorney who had represented the County in litigation surrounding the landfill. Residents for Responsible Government (RPG), an environmental group, distributed handouts at a press conference showing that CWM Chemical Services and its parent company have donated $71,750 to the Niagara County GOP Committee, the Niagara County Conservative Party, and the Town of Porter Republican Committee, based on state Board of Election records. Republicans currently control the Niagara County Legislature. A resolution sponsored by County Legislators William L. Ross (C-Wheatfield) and Clyde L. Burnmaster (R-Ransomville) that would extend the attorney’s contract was not voted upon but instead sent to the Administration Committee for further study. RPG members and some residents fear the delay may make it more difficult to address their case before upcoming state Department of Environmental Conservation hearings on the landfill expansion. “Any day the DEC could come out and say this is when the process starts and, right now, the people in Niagara County have no one to represent them,” RRG president April Fideli said.

Democrat & Chronicle Tells Corruption Commission to Press On

Following reports that the Moreland Commission to Investigate Public Corruption was shying away from examining legislators and political parties, newspapers across the state penned editorials pressing the commission to move forward with its badly-needed work. This week, the Democrat & Chronicle insisted that in order for the panel to meet its obligation of investigating potential instances of corruption, it must have wide latitude to do its job. Albany lawmakers, who are allowed to work outside of the legislature part of the year, have thus far refused to turn in records about income derived from such activities. The commission’s concern stems from the potential for conflicts of interest. Encouraging the immediate disclosure of this information, the editorial said that, “The honest ones have no reason to do otherwise.”

NATIONAL

California Fines Out-of-State Nonprofits $1 Million for Campaign Money ‘Laundering’

On Thursday, the California Fair Political Practice Commission (FPPC) announced a fine of $1 million against two out-of-state nonprofits for campaign finance law violations.  In the 2012 election, the Arizona-based Americans for Responsible Leadership and Center to Protect Patient Rights funneled $11 million into a campaign to defeat a ballot measure to raise taxes and to support a ballot measure to weaken union political power.  Both nonprofits kept their donors secret, in violation of a California law that requires nonprofits to disclose their donors if their contributions were intended for a state campaign.  After a legal battle, Americans for Responsible Leadership did name its donors—but only as other nonprofits.   The disclosure hid the original contributors, but revealed a shadowy network of nonprofits funneling anonymous donations around the country, with ties to the Koch brothers.  In addition to the fine, FPPC will require two California groups to hand over to the state the more than $15 million in secret donations they received. Meanwhile, in the 2012 elections, the governor’s tax proposal passed and the proposal restricting union activity failed, leaving even local conservative groups describing the out-of-state money as a harmful distraction from their cause. 

Outside Spending Heating Up for 2014 Kentucky Senate Race

Senate Minority Leader Mitch McConnell (R-Ken.) will be up for reelection in 2014 in a contest that is already attracting national attention—and national money.  Outside interest groups are jumping at the chance to unseat or support the party leader.  They have already spent $2.2 million in advertisements, more than a year ahead of the election. The spenders include both nationwide groups that will be active in elections across the country and groups formed to back a single candidate. McConnell’s Democratic opponent, Kentucky Secretary of State Alison Lundergan Grimes, raised $2.5 million in the third quarter.  Her contributors include Kentucky Democrats as well as national figures, such as George Soros and numerous Hollywood donors. Mitch McConnell raised $2.3 million in the same period, as he also prepares for a primary challenge from Tea Party opponent Matt Bevin.  Early spending is fueling estimates that the final tally for the 2014 election may reach $100 million. 

Lobbying Activity Declines This Year, with a Few Big Exceptions

Of last year’s top 100 lobbying entities, more than two-thirds spent less on lobbying during this year’s third quarter than they did in last year’s.  These companies span numerous industries, and include General Electric, the National Association of Realtors, the American Hospital Association, and defense firm Lockheed Martin.  However, pharmaceutical companies, gun issue advocates, and corporate agriculture interests are all outliers in this trend, increasing their spending this year. With the House and Senate preparing to negotiate a farm bill next week, lobbying efforts are intensifying for farm, anti-poverty, budget watchdog, and trade groups.  Facebook and Twitter also have increased their lobbying presence this year. Silicon Valley groups are also beginning a lobbying push for immigration reform. 

Money in Politics This Week

The Brennan Center regularly compiles 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.

NEW YORK

Op-ed by Susan Lerner Asks NYC Council to Support Disclosure

An op-ed by Susan Lerner, the executive director of Common Cause/NY, appeared in the Daily News this Wednesday asking the New York City Council to bring greater transparency to the city elections process. New York City voters this year are facing a plethora of advertisements and mailings from outside special interests hoping to swing the upcoming elections in their favor. Following the U.S. Supreme Court’s Citizen United decision, corporations and unions are free to spend unlimited amounts of funds garnered from mega donations to boost their preferred candidates. For example, Jobs for New York, a group representing real estate interests, has spent $167,341 in support of Sara Gonzalez’s run for the 38th City Council district – an amount two times greater than what Gonzalez has spent herself. Jobs for New York has received more than $6 million from 116 limited-liability corporations – which were in turn used to funnel money from just 22 backers. Common Cause/NY is urging the City Council to pass legislation introduced by City Councilman Brad Lander which would require city campaign ads paid for by independent expenditures to list the top five contributors on the ad itself. “Independent expenditures unfairly color the campaign process by dominating the conversation with the point of view of a particular interest… First and foremost, voters need to know who is sponsoring the advertising they receive,” Lerner said.

Hedge Fund Donations to NYC Elections Pale in Comparison to State Contributions

Hedge funds have donated $500,000 to New York City races thus far. A significant portion, $170,336 has gone to City Council Speaker Christine Quinn’s mayoral campaign. The next closest recipient, Republican candidate Joseph Lhota, has received $47,625 from hedge funds. The $500,000 figure is small in comprasion New York State elections, where hedge funds – donating upwards of $7 million in the 2010 election cycle – are now the second-largest contributors after the real estate industry. The difference is largely due to New York City’s contribution limits, which are far lower than the state’s. James S. Chanos, founder of Kynikos Associates, who has not made any contributions in 2013 New York City races, explains that “limits are a big aspect to it, and I think people would give more if the limits were higher. At the federal and state level, we are constantly being called [about donations].” No one calls for contributions at the city level, he added.

Thompson’s Campaign Strategist Alleges Campaign Finance Misconduct by Rival de Blasio

New York City mayoral candidate Bill Thompson’s campaign strategist, Jonathan Prince, has filed a complaint with the city Campaign Finance Board seeking an investigation into fundraising events held for Democratic rival Bill de Blasio. De Blasio held fundraisers at the Villa Pacri restaurant in the Meatpacking district last year. The restaurant charged the de Blasio campaign $4,349.53 for drinks and appetizers for 75 people at the two events last year. The per-person per-hour rate amounts to $22.50, but a different group of the same size was charged $58.33 per-person per-hour just two days later. The complaint alleges that the difference between the “fair market value and the $22.50-per-person cost” is an in-kind campaign contribution. The campaign finance law iterates that candidates must pay fair market prices for campaign goods and services. De Blasio’s campaign dismisses the charge, saying that the price difference was due to differences in what the groups were served.

NATIONAL

Ben and Jerry’s Co-Founder: Education Costs Linked to Flood of Money in Politics

As the new school year approaches, President Obama has been traveling around the nation to discuss ways to address the high cost of education. Ben Cohen, co-founder of Ben and Jerry’s Ice Cream, and Edward Erikson, senior associate at MacWilliams Sanders Communications, write in a CNN op-ed that if the President is serious about tackling the issue of affordable education and student debt, then “we need to strike at the root of the problem – the influence of money in politics.” Cohen and Erikson write that Sallie Mae benefits from cheap loans from the government and have an interest in protecting the status quo regarding student debt. Sallie Mae has donated over $1.26 million to federal candidates and parties in the last four election cycles, and bankrolled $1.93 million into lobbying Congress in 2013. During that time period, Congress drafted and the President signed a student loan bill tying interest rates to financial markets. Although in the short term the bill prevents interest rates from doubling, now students are vulnerable to adjustable interest rates that could top 8.5 percent. Meanwhile Sallie Mae borrows at subsidized interest rates below %0.5 percent from the Federal Home Loan banks. In 2012, Sallie Mae earned $2.5 billion in interest payments from student loans. Cohen and Erikson call on citizens to stamp currency with messages to get the word out about reform and support referendums calling on Congress to redefine the Constitutional line between money and free speech.

Watchdog Groups Urge FCC to Expand Spending Disclosure

A broad coalition of transparency groups, dubbed the Public Interest Public Airwaves Coalition, have submitted comments to the Federal Communications Commission (FCC), regarding the agency’s rules mandating broadcasters to post political files online. In April, 2012, the FCC started requiring broadcasters in the top 50 U.S. markets, affiliated with the four major national networks, to post files online containing information on political advertisements; specifically the group’s purchasing ads, prices paid and the times aired. The FCC has proposed expanding the ruling to all stations by July, 2014. This could have a big impact on transparency in next year's elections. Of the 10 races that will determine control of the Senate in 2014, more than half will take place in states that have no online ad disclosure under the current FCC order. Groups have called for improvements to the system including uniform data and reporting standards, adoption of machine-readable data, and a more user-friendly database that can assist with reducing reporting errors, monitoring compliance, and analyzing data. The Sunlight Foundation’s Political Ad Sleuth provides a searchable database of the FCC files, a project that would be strengthened by an improved disclosure regime.

New Investigation Reveals Donors behind Voter ID in North Carolina

A new investigation by the Institute for Southern Studies has revealed several connections between Republican mega-donor Art Pope and the push for restrictive voting legislation in North Carolina. North Carolina House Bill 589 (now State Law 2013-381) raised significant outcry from civil rights advocates when it was signed by Republican Governor Pat McCrory this month. The bill mandates photographic identification, cuts the early voting period from 17 days to 10, ends same-day voter registration and eliminates rules encouraging youth to sign up to vote. The prime sponsors of the bill, including N.C. Representatives Harry Warren and Tom Murry, have received generous support from Art Pope and organizations that garner significant funds from the donor. In 2010, Warren narrowly defeated a five-term Democratic incumbent by fewer than 200 votes. His campaign benefited from over $109,000 in independent spending from Real Jobs N.C., a 527 committee co-founded by Pope. Murry also got significant funds, including $12,000 in campaign contributions from the Pope family, as well as over $92,000 in favorable independent spending from outside groups, such as Real Jobs N.C. and Civitas Action. Governor McCrory received $20,000 in contributions from Pope and his family, and benefited from independent expenditures from Pope-funded groups including $380,000 by Real Jobs N.C. and $130,000 by Americans for Prosperity.

Rise of “Obamacare Lobbyists” on K Street

The Affordable Care Act has boosted the demand for lobbyists and consultants who helped shape the law, as new regulations are being fine-tuned and implemented. More than 30 former Obama administration officials, lawmakers and Congressional staffers who worked on the healthcare law have become lobbyists since 2010. They’ve found clients like Delta Air Lines, UPS, BP America and Coca-Cola, as well as healthcare companies including GlaxoSmithKline, UnitedHealth Group and the Blue Cross Blue Shield Association. Watchdog groups have criticized the rise of “Obamacare lobbyists” as another example of the revolving door that turns public service into private enrichment. Craig Holman of Public Citizen says, “It raises questions about the [bill’s] integrity.” The firm Avenue Solutions has recently hired Yvette Fontenot, a former staffer for both a Senate committee that wrote Obamacare’s tax provisions and the Health and Human Services Office of Health Reform, one of the bill’s implementers. Since April, the firm has picked up the Health Care Service Corporation as a client and is on pace to earn $1.8 million in the first half of 2013. Healthcare lobbying will remain a bright field of work as the reform law’s requirements continue to roll out over the coming decade.

Money in Politics This Week

The Brennan Center regularly compiles 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.

NEW YORK         

Lobbying Groups Seek Exemption from Donor Disclosure Rules

The New York State Joint Commission on Public Ethics recently granted an exemption to Naral Pro-Choice New York from regulations requiring tax-exempt organizations that participate in political activities to disclose their major donors. The law allows exemptions for groups whose donors might face “harm, threats, harassment or reprisals.” Naral Pro-Choice points to past threats as evidence of the danger that disclosure would create: disturbing handwritten letters and Facebook posts by a man who was later convicted of participating what he thought was a plot to bomb an abortion clinic. Many groups from across the political spectrum are now seeking the same exemption, arguing that publicly disclosing their donors could endanger them. New York’s broad definition of lobbying includes spending on advertisements for or against legislation. Groups that devote a substantial amount of their resources to lobbying have to disclose all donors that contribute more than $5,000. According to Kelly Williams, corporate general counsel at the Brennan Center, exemption from disclosure should only be granted in instances of credible threats or harassment, not for fear of economic harm, such as boycotts. The New York Times concurs, stating in a Wednesday editorial that “Otherwise, big-money partisan lobbying via hidden backers will only proliferate as the public heads deeper into the dark, and the ethics law itself will begin to unravel, thread by thread.”

Super PACs Active in New York City Elections

Super PACs, independent political action committees with no restrictions on campaign spending, are shelling out cash for flyers, robocalls and TV ads in New York City elections. Forward NY is one of six Super PACs active in the city. It recently sent thousands of emails attacking the former governor Elliot Spitzer for his attempted comeback into politics. Jobs for New York, a group backed by the Real Estate Board of New York, has spent $314,000 on City Council races. Three former aids to Rudy Giuliani are also forming a Super PAC to support Republican mayoral candidate Joe Lhota. Government watchdog groups have criticized the independent expenditures because they undermine the city’s public financing system, which imposes contribution and spending caps on candidates. “Skewing by big donors is a serious matter,” according to Eric Lane, the dean of Hofstra University Law School, who helped write the city’s campaign finance law. The only check on Super PACs in the city is a state election law barring an individual from making more than $150,000 in annual contributions to all state and local campaigns combined.

City Comptroller Candidates Discuss Campaign Finance

The candidates for New York City Comptroller traded shots at each other over how their campaigns are financed in a debate last week. The debate was the first in a series administered by the New York City Campaign Finance Board (CFB). Manhattan Borough President Scott Stringer is participating in the CFB matching funds program, which provides him with a $6-to-$1 match for every donation he raises up to $175. Consequently Stringer also has to abide by strict contribution limits and a spending cap of $6 million. Spitzer joined the race after the CFB deadline and is self-financing his campaign. Stringer accused Spitzer of “trying to destroy one of the best campaign finance systems in the country” at the debate. Spitzer fired back saying that Stringer had benefited from independent expenditures from a coalition of women’s advocates, business and labor leaders.

NATIONAL

Rep. Van Hollen Files Suit Against IRS

Representative Chris Van Hollen (D-MD) has filed suit in Federal District Court to overturn an Internal Revenue Service ruling on tax-exempt “social welfare” organizations that engage in overtly political activities. Three government watchdog groups, Democracy 21, Public Citizen and the Campaign Legal Center, are joining the suit. The tax statute confers 501(c)(4) tax-exempt status only to groups that “exclusively” engage in non-political social welfare work. For decades, however, the IRS has only required 501(c)(4)s to make social welfare their “primary” purpose, allowing significant political activity. “The point here is that the law is clear,” Representative Van Hollen said. “What do you want us to do — put an exclamation point after exclusively?” As opposed to traditional PACs and Super PACs which fall under Section 527 of the IRS Code, the concern arises over the ability of the 501(c)(4)s to spend on politics without disclosing their major donors. Following the Supreme Court’s Citizen United decision, $256 million was pumped into political ads in the 2012 presidential election cycle, three times more than the amount spent in 2008.

In August Recess, Congressmen Globe-trot on Privately Financed Trips

While many Americans are concerned about making ends meet this summer amid oncoming sequestration cuts, Congressmen are using the summer recess to travel around the globe on privately financed tours, some paid for by lobbyists. Congress clamped down on such travel in 2007 when a scandal involving lobbyist Jack Abramoff and free trips was exposed. Abramoff was later sentenced to prison on corruption charges, which also engulfed former Representative Bob Ney (R-OH) and some Congressional aides. But the trips haven’t stopped; expeditions to Turkey and Israel, paid by private groups and foreign government have been especially popular. Four House Republicans and a Democrat who are members of the “Friends of Scotland Congressional Caucus” are headed to Scotland this month, on the Scottish government’s tab. Bill Allison, editorial director of the Sunlight Foundation, is concerned that the trips may make lawmakers feel indebted to the sponsors, especially when they include free food, hotels, tours and transportation. There have been 1,363 trips at a cost of $3.2 million to hosts so far this year.

Race for Governor in Virginia Invites Super PACs

The race for governor in Virginia is heating up as the candidates attract massive contributions. In the month of July, DGA Action, a Super PAC of the Democratic Governors Association, contributed $1.2 million to Terry McAuliffe, a Democratic candidate for governor, one of the largest single political donations for the office in recent history. Virginia has no limits on contributions for candidates to state offices.  McAuliffe’s Republican opponent, Virginia Attorney General Kenneth T. Cuccinelli II has received several large donations including $5.6 million from the Republican Governors Association. And the race has turned extremely partisan and bitter with each candidate accusing the other of ethical lapses. McAuliffe has attacked Cuccinelli in a television ad criticizing $18,000 in gifts Cuccinelli received from a prominent GOP donor, Star Scientific CEO Jonnie R. Williams, Sr. Cuccinelli has penned an op-ed accusing GreenTech Automotive, an electric car company founded by McAuliffe, of dubious practices to attract foreign investors.

Small Business Leaders Ask SEC to Adopt Disclosure Rule

Aimee McQuilkin, a leader in the Montana Small Business Alliance, and Freddy Castiblanco, a leader of Small Business United New York, have authored an op-ed in The Hill arguing for the Securities and Exchange Commission to establish a rule regarding disclosure of political spending by corporations. Currently public companies that spend money on politics are not obligated to report such spending to investors or the government. Several small business trade groups have signed onto a letter urging the SEC to adopt the proposed disclosure rule, in an effort to generate greater transparency. “Under current rules, money from the general treasury of a public company can be disbursed to fund political activities without the owners (the shareholders) having any way to know about it.” Hardworking small business owners understand that success in the marketplace should be determined by innovation and healthy competition, not pay-to-play politics or secret back-room politicking.

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 Syed Zaidi.

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

CAMPAIGN FINANCE REFORM AND ETHICS NEWS

NEW YORK

Utica Observer-Dispatch Editorial on Matching Small Donations

The Utica Observer-Dispatch editorialized in favor of campaign finance reform on Sunday. Governor Cuomo and Senator Cecilia Tkaczyk have both championed the call for reform. Assembly Speaker Sheldon Silver stands behind the initiative as well. “It’s an issue that politicians love to talk about, and it’s time they put that money where their mouth is and reform campaign financing once and for all.” The current system allows incumbents to raise large sums of campaign cash in a myriad of ways, including from lobbyists looking for political favors. Campaign war chests can be multiplied through investments in bonds and mutual funds. This discourages rising challengers. Matching small donations with public funds, and reducing the size of big donations for candidates willing to participate in such a system offers an alternative to campaigns dominated by wealthy special interests. Opponents afraid of the cost to taxpayers would do well to know that the relatively miniscule monetary expense is “well worth the trade off to drive out special interests whose big bucks influence decisions that ultimately cost the public in many ways.”

Former U.S. Representative Mike Arcuri: Congress Too Reliant on Big Contributions

On Thursday, former U.S. Representative Mike Arcuri (D-NY) made the case for public campaign financing by matching small donations to The Syracuse Post-Standard. Representative Arcuri explained the negative ramifications that big campaign contributions have on public policy. “There’s something inherently difficult about voting on a bill that you know the stakeholders … have threatened to support your opponent if you don’t,” Arcuri stated. The former Congressman said that based on his tenure, this was a common predicament on nearly every issue. “I had to think about how will this affect my contributor, really, I should not have been considering that.” Matching small donations by adopting a comprehensive fair elections system can reverse this scenario, so that Representatives are dependent upon their constituents rather than a few wealthy individuals, corporations, and PACs.

Former U.S. Representative Tom Perillo: It’s Time for Campaign Finance Reform

In an Albany Times-Union op-ed, Tom Perriello, former Congressional Representative from Virginia, makes a strong case for campaign finance reform in New York State. Perriello argues that despite the flood of money in the 2012 election, New Yorkers can still reclaim their government. By matching small donations with public funds and reducing New York’s sky high contribution limits, ordinary New Yorkers can regain control over their representatives in Albany. New York City, which has operated under this clean elections system for 20 years, has certainly reaped the benefits. “City Council candidates now hustle to gather contributions from scores of small donors,” and new donors “are more economically, racially and geographically diverse.” Although some are concerned about the tax costs of implementing public financing, ordinary taxpayers would be the big winners because it would drastically diminish government giveaways to wealthy interests. “Closing just a few tax loopholes currently protected by the influence of major donors could more than cover the cost of citizen-funded elections.”

New York Lobbying Reports Reveal the Biggest Spenders of 2012

Disclosure records from the New York State Joint Commission on Public Ethics reveal the biggest lobbying spenders in the state. New York enacted the nation’s first system of disclosure of funding sources for entities spending more than $50,000 per year on lobbying expenditures after the passage of the Public Integrity Act of 2011. According to the Democrat and Chronicle, there was a seven percent drop in lobbying, from $220 million in 2011 to $205 million last year. The biggest spender was the Committee to Save New York, a business group that supports Governor Cuomo’s fiscal agenda. The group spent $4.2 million in 2012. Exxon Mobil Corporation was the second largest spender of the year, dolling out $2.1 million in 2012. Major League Soccer, which is seeking to open a new stadium in Queens, came in third, also nearing $2.1 million in lobbying expenditures. According to Kelly Williams, corporate general counsel at the Brennan Center, the new regulations ensure that voters can “tell who is trying to influence the legislative process,” especially when entities with vague and unrecognizable names tacitly conduct expensive lobbying campaigns.

Organizing for Action Joins Fair Elections for New York Campaign

Organizing for Action, a team of grassroots volunteers formed from President Obama’s campaign organization, has decided to join the movement for campaign finance reform in New York State. At a conference call for members, OFA executive director Jon Carson stated that the group will help build momentum for the fair elections effort in the final three months of the state legislative session. New York State Attorney General Eric Schneiderman, also on the call, informed participants that public financing of elections is “essential in a post-Citizens United world.” The campaign finance push is OFA's first foray into state politics and away from Obama's presidential agenda. The Fair Elections for New York coalition, a diverse array of reform, good-government, and business organizations is already active on the issue, organizing house parties and rallies, gathering signatures for petitions, and lobbying legislators in Albany. OFA’s lead New York organizer Kate Stevens, said OFA volunteers will be doing grassroots organizing as well, including house parties, educational forums, and reaching out to friends and neighbors.

NATIONAL

Washington Post op-ed: Small Donor Democracy Can Replace Status Quo

In a Washington Post, op-ed E.J. Doinne Jr. describes the current battle over gun control as an advertising contest between proponents of regulations such as Mayor Michael Bloomberg and opponents such as the NRA. Unfortunately politics has been reduced to a “contest between liberal rich people and conservative rich people” in America. The post-Citizens United world is infused with nonstop fundraising, political spending and permanent campaigning. As political strategists dismiss campaign contribution limits and Organizing for Action plans to accept large donations, Doinne suggests an alternative. It would be far better for the Obama administration to concentrate “primarily on building off the pioneering work his campaigns did in rallying small donors.” Unfortunately, too many politicians are growing comfortable with the status quo of big money campaigns. Two Congressional Representatives that refuse to are David Price (D-NC) and Chris Van Hollen (D-MD). They are sponsoring the Empowering Citizens Act, which would match contributions under $250 with public funds at a 5 to 1 ratio. Other members of Congress would do well to add their names as co-sponsors and publicly voice their support.

Do You Ever Wonder What Your Former Congressman Is Doing?

USA Today reports that 16 lawmakers that left Congress recently have now jumped on board with lobbying groups. The analysis looks at lawmakers who retired, resigned or lost their seats in the last Congress and the new Congress. Although rules forbid former Representatives and Senators from directly lobbying Congress for one and two years respectively, there are no restrictions on providing advice and consulting services to organizations seeking to shape federal legislation. Former lawmakers are allowed to lobby the executive branch and state and local governments without any moratorium. Former Congresswoman Jo Ann Emerson (R-MO) who resigned from Congress in January, is now the President and CEO of the National Rural Electric Cooperative Association. Scott Brown, the former Massachusetts Senator who was defeated in November, will be joining the lobbying firm Nixon Peabody. Scott received extensive contributions from the financial services, real estate and insurance industry during his Congressional race. The firm’s D.C. clients include Goldman Sachs and Sallie Mae.

Public Financing Bill Clears Hawaii Senate Committee

On Thursday, the Hawaii Senate Ways and Means Committee recommended the passage of House Bill 1481, which passed the state House earlier this month. Currently, Hawaii has a partial public funding program, but only one legislative candidate participated in 2012. The new legislative proposal aims to strengthen the program. Under the new system, candidates who collect a certain number of signatures and qualifying contributions from registered voters to show broad-based community support would be eligible to receive a public grant to fund their campaigns. An interview with the lead sponsor of the bill, Hawaii State Representative Della Au Belatti (D), is available at the Public Campaign website. “It would … really free political candidates and elected officials from having to chase after money, which we so often have to do,” she stated.

West Virginia House of Delegates Passes Resolution to Encourage Congress to Overturn Citizens United

The West Virginia House of Delegates is asking Congress to enact a constitutional amendment overturning the Citizens United Supreme Court decision. House Resolution 9, which passed 60-39 on Thursday, asks Congress to draft a constitutional amendment that will allow for corporations to be regulated in terms of how much money they can donate and spend on politics. Proposed amendments need to either (a) receive backing from three-fifths of the members of the U.S. House and Senate or (b) attain support for a constitutional convention called for by two-thirds of all state legislatures, before they can be considered for ratification by the states (three-quarters of the state legislatures are required to approve) and added to the Constitution. House Resolution 9 is advisory in nature and does not call for a constitutional convention. Referring to corporations, Delegate John Ellem (R-Wood) stated, “Since a corporation is a tool for commerce, I strongly believe being a tool we created, we have the power, we as the legislative body, and the Supreme Court has chimed in on it, but we have the right to impose restrictions."