Friday, May 25, 2012

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. Numerous outlets reported that Citizen Action and other groups organized a grassroots door-to-door communication effort last Saturday, speaking with voters in the districts of eight state senators who have been slow to embrace new legislation to establish public financing and comprehensive campaign finance reform in New York State.  The groups vowed to make campaign finance reform a key issue in the 2013 state-wide elections if Albany does not enact a bill in the current legislative session.

2. On the eve of the door-to-door effort to communicate to voters the importance of campaign finance reform, Citizen Action’s Jesse Laymon urged New Yorkers to continue to press for passage of a bill, which would have the state match contributions under $250 at a six-to-one ratio, before the end of this year’s legislative session.  In an interview on YNN, Laymon stated that the support of only half a dozen more state senators is needed to make reform legislation a reality.

3. The Democrat and Chronicle reports on Governor Cuomo’s role in the campaign finance reform effort, as well as his current fundraising activities.  Citizens’ groups and legislators are urging Cuomo to continue to follow up on his publicly expressed distaste for the status quo, his success in fundraising under the current laws notwithstanding.  “He’s playing by the present rules, and he’s doing well under these rules,” said Lawrence Norden, deputy director of the Brennan Center for Justice.  “And he’s saying these rules are bad for New York, and we should change these rules.”

National Campaign Finance and Ethics News

1. Is the U.S. Supreme Court ready to reconsider Citizens United?  The Montana Supreme Court recently upheld a state ban on corporate political spending, even though plaintiffs argued the ban is unconstitutional under Citizens United.  The Montana ruling was then stayed by the U.S. Supreme Court, which is now deciding whether to put the case on for a full public hearing. Senators John McCain and Sheldon Whitehouse formed a bipartisan alliance and submitted a friend of the court brief urging the Supreme Court to uphold Montana’s ban on corporate spending.  The McCain-Whitehouse brief, which echoes many of the points made in the Brennan Center’s brief, notes the considerable problems stemming from unlimited corporate expenditures: “Evidence from the 2010 and 2012 electoral cycles has demonstrated that so-called independent expenditures create a strong potential for corruption and the appearance thereof. . . . The news confirms, daily, that existing campaign finance rules purporting to provide for ‘independence’ and ‘disclosure’ in fact provide neither.”  Over ten groups have filed a friend of the court brief so far, including one filed in support of the Montana law by twenty-two states and the District of Columbia.

2. Proponents of reform are taking strong and creative steps to combat the specter surrounding corporate expenditures.  Already this year, investors have filed resolutions with over 100 companies that, if adopted, would require disclosure of funds used for political advocacy, according to a Chicago Tribune article.  Pressure from investors has also led 43 companies to voluntarily release some information.  At the federal level, advocacy groups have petitioned the Securities Exchange Commission to promulgate a rule that mandates disclosures, and the potential regulations have generated more than 285,000 comments. 

3. Wasteful government contracts continue to be tied to lobbying and campaign contributions.  The New York Times reports that Representative Harold Rogers inserted a provision into a spending bill that secured contracts for a helicopter-parts manufacturer that produces parts at eight times the price of competitors.  Unsurprisingly, the manufacturer, Phoenix Products, has spent $600,000 on lobbying since 2005, and its owners are frequent contributors to Representative Rogers’s political committee.

4. Super PACs provide a vehicle for unlimited spending without political accountability, and political operatives are reveling in the opportunities these new campaigning weapons create, according to an article in The New York Times.  Highlighting how super PACs enable a small group of donors to hold disproportionate influence, one strategist noted that a super PAC supporting former presidential candidate John Huntsman raised more money with only 20 to 30 donors than Huntsman’s own campaign was able to raise altogether.

5. While Citizens United opened the door for corporations and unions to contribute unlimited funds to support a candidate, it has largely been wealthy individuals that have walked through.  Publicity concerns may make public corporations hesitant to engage in partisan fights, but the prospect has yet to deter individuals from spending massive amounts of money to ensure the election of their preferred candidates, Roll Call reports.  From North Carolina to Colorado, aspiring politicians thought to lack a substantial chance at securing a victory have won primaries thanks, in large part, to the backing of a single, free-spending supporter.


Friday, May 18, 2012

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. WYNC touts the findings from the new joint report by the Brennan Center and the Campaign Finance Institute, Donor Diversity Through Public Matching Funds. A significantly greater number of small donors contributed to campaigns in New York City, which matches donations of less than $175 at a six-to-one ratio, than contributed to state-level elections, where no matching exists. The results also evidence greater participation by minorities and low-income individuals under New York City’s public matching fund system. The report notes the ongoing campaign to institute a similar system for New York State elections, suggesting that small donor public financing could increase the diversity of the donor base for state elections.

2. Super PACs are already dominating this federal election cycle, and an article from Crain’s New York Business suggests they may play a major role in New York City elections as well. "There will be super PACs," said New York Republican State Committee Chairman Ed Cox. "It's impossible not to have them. They're a part of the process now." Such organizations could put unlimited dollars behind policy issues or mayoral candidates, according to some sources. Nonetheless, heightened disclosure requirements and a vigilant city Campaign Finance Board, according to the Board’s former general counsel, Laurence Laufer, may mean that these organizations work within greater restraints in New York City than at the federal level.

3. After more than a decade of accusations of misusing public funds, the law has finally caught up with the former New York State Senator Pedro Espada. A federal jury convicted Espada of four counts of theft, and he now faces up to forty years in prison. The charges stemmed from Espada’s unlawful use of over $400,000 belonging to a health clinic he helped found in 1978. Espada became known statewide in 2009 after taking part in a coup against party leadership shortly after the Democrats gained a narrow majority in the Senate. Two other Senators involved in that political turmoil – Hiram Monserrate and Carl Kruger – recently pleaded guilty to separate corruption charges.

National Campaign Finance and Ethics News

1. The Federal Elections Commission continues to press Congress to extend the ban on using campaign funds for personal use, according to The Hill. The ban currently covers candidates and candidate committees, but the FEC is urging Congress to extend it to reach campaign funds held by all political committees, including Leadership PACs and party committees. The Department of Justice has echoed the FEC’s concern, noting a “dramatic rise” of theft of funds intended for use in a campaign. To date, Congress has not taken action to respond to the FEC’s recommendation.

2. An op-ed published in The Columbus Dispatch examines the distaste for Citizens United expressed on both sides of the political aisle. Particularly troublesome to congressional representatives is the lack of transparency, and both Republicans and Democrats interviewed cited the need for increased disclosure. “There are national groups dropping in and out of communities without it being clear as to their interests,” said Rep. Mike Turner, a Dayton, Ohio Republican.

3. Proponents of increased disclosure of campaign contributions and curbing rampant spending in politics won a victory this week. Last month, in Van Hollen v. FEC, the District Court for the District of Columbia struck down FEC rules that undermined a federal law requiring organizations that make electioneering communications to disclose their major donors. The Huffington Post reports on the D.C. Circuit Court of Appeals’ recent decision denying a stay of the District Court’s judgment.  While the FEC chose not to appeal the initial ruling, two private groups intervened to seek a stay. The Court of Appeals rejected their request two to one.

4. Some suggest that secretive spenders will find loopholes to exploit even after the Van Hollen decision. In an article on Slate, Richard Hasen argues that mandated disclosure for “electioneering communications,” which stop short of urging listeners and watchers to vote for a particular candidate, could lead to an increase in “independent expenditures,” which do expressly encourage voting for or against a certain candidate. While this express advocacy could cause the groups to lose tax-exempt status, Hasen notes that the FEC’s thin history of enforcement may lead to groups taking that risk. Another possibility Hasen flags is that the Supreme Court could hear the case, leading to a potential stay of the new disclosure requirements.

Friday, May 11, 2012

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 Matthew Ladd.

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

New York Campaign Finance and Ethics News

1. State Assemblyman Hakeem Jeffries reiterated his strong support for public campaign finance in an interview on MSNBC this week, urging fellow state lawmakers to pass the Fair Elections Act before the end of the legislative session. Jeffries noted that Gov. Cuomo’s backing will be crucial to the success of the Fair Elections Act: “We need his leadership on this issue, and I’m convinced if he decides to lead and move this forward, we can get meaningful campaign finance reform in New York State.”

2. A new report issued by the Center for Working Families examines how money in politics led taxpayers to foot the bill for the new Yankee Stadium. In 2006 Yankees ownership paid over $300,000 to a lobbying firm run by former Bronx Assemblyman Roberto Ramirez—the largest lobbying fee reported that year—as well as other influential lawmakers including former state senator Joseph Bruno, in an apparent effort to secure funding for the stadium. The report highlights the financing of Yankee Stadium as a case study in the high-stakes influence-peddling permitted by New York’s current campaign finance regime.

3. The Democrat and Chronicle strongly urged Gov. Cuomo to stand behind his promise to prioritize campaign finance reform, recalling a 2010 campaign publication in which Cuomo called on state legislators to “fundamentally alter our system to give voices to all New Yorkers” by creating a small-donor matching program for publicly funded campaigns. Bills that would create such a program have been introduced in the Assembly, but Cuomo’s support is widely seen as instrumental in moving campaign finance reform through the Senate.

National Campaign Finance News

1. A new poll jointly released on Thursday by Democracy Corps, Greenberg Quinlan Rosner, and the Public Campaign Action Fund finds that swing voters are likely to support candidates who make campaign finance reform a priority in their legislative agendas. Key findings from the poll suggest that ordinary voters see money in politics as a key economic issue, and that reform alternatives—including small-donor matching programs—have garnered wide support among the voting public. Over a third of the voters polled said that they considered candidates’ willingness to make campaign finance reform a legislative priority as a litmus test for their support. According to David Donnelly, Executive Director of PCAF, “Money and politics is increasingly becoming a ballot box issue. An overwhelming majority of Americans believe there should be common sense restrictions on the amount of money people can contribute to politics and voters—especially independents—will strongly support those who take the issue head-on.” The polling memo can be downloaded here, and individual slides from the poll can be downloaded as well.

2. The results of Thursday’s poll generated articles this week from The Hill, National Journal, and Mother Jones, among other media outlets, some of which noted the poll’s findings that campaign finance reform is supported by a broad swath of the American electorate. Nearly 75% of respondents, for instance, expressed support for limiting the amount of money in politics—a number that included 60% of voters who identify with the Tea Party movement. As Greenberg Quinlan Rosner CEO Stan Greenberg noted, “There aren’t many things we’ve tested that are viewed as negatively as super PACs.” Moreover, less than a quarter of those polled found that limits on campaign contributions interfere with free speech rights.

3. On Sunday, the New York Times editorial board called for the resuscitation of the flagging presidential public financing program. The editorial notes that this will be the first presidential election since the program’s inception in 1976 that neither major-party candidate draws on public funds. Public funding of elections is crucial to the legitimacy of the electoral process: “The era of “super PACs” and secret donors has made public financing more urgent. A system that greatly magnified small donations with high matches would give ordinary citizens a shot at competing with corporations, unions and wealthy donors. It would allow candidates to campaign more instead of constantly begging among the rich. And it would give a challenger a chance to be competitive without the help of a super PAC.

4. The Washington Times reports this week that presidential fundraising efforts this summer cannot afford to overlook the importance of the small donor. Mitt Romney in particular will have to do much more to court small voters, according to Prof. Michael Malbin, Executive Director of the Campaign Finance Institute. Malbin’s analysis of the Romney campaign filings indicates that 64% of the presumptive Republican candidate’s total funds came from donors giving the maximum legal amount of $2500.

5. The Sunlight Foundation reports that former Sen. Richard Lugar’s defeat earlier this week was influenced by outside PAC spending in favor of his challenger, conservative state treasurer Richard Mourdock—including over $2 million from the anti-tax Club for Growth. Although Lugar outspent Mourdock by a 3-to-1 margin, the state treasurer was backed by a “flood of outside money” from PACs and super PACs, as well as from 501(c)(4) “social welfare” groups not subject to FEC disclosure requirements.

6. In a clear indication of the revolving-door nature of Super PACs, ABC News reports that now that Rick Santorum is no longer a candidate for public office, the “Red, White, and Blue Fund” super PAC that spent on his behalf during the race has become a “hybrid PAC” with which Santorum can freely coordinate. The hybrid PAC can also fund some of the costs of Santorum’s ongoing political activity—expenditures that are technically legal, since Santorum currently holds no office and is no longer running a campaign.

7. This week the disclosure website Open Secrets, a collaboration between the Center for Responsive Politics and Center for Public Integrity, published new information on presidential campaign bundlers for the both the Democratic and Republican campaigns.

Wednesday, May 09, 2012

Overvotes: Phantoms of the Ballot Box


The New York State Board of Elections, New York City Boards of Elections, and voting machine manufacturer ES&S each released reports yesterday detailing the results of an investigation into the abnormally high numbers of lost votes attributed to “overvoting” in the South Bronx in 2010. The upshot is that a machine defect led to “phantom votes” on at least one machine used in the 2010 election, resulting in some candidates receiving more votes than they should have, and the choices of many more voters being voided when the machines detected both actual and phantom votes in the same contest. Now that the reports on how this happened are out, election officials must make sure that what happened in the Bronx in 2010 does not happen again in the future.

Voting machines record overvotes when they detect more than one candidate selected for a contest. In such cases, no vote is recorded for any candidate in the overvoted contest, regardless of the voter’s actual intent. The Brennan Center first uncovered a high number of overvotes in the South Bronx while reviewing documents produced for discovery in a litigation it brought against the State and City. It published its findings in Design Deficiencies and Lost Votes; the report notes that in some election districts up to 40% of the votes cast did not count.

The investigations conducted by the City, State and ES&S conclude that the unusually high overvote rates were not due to voter error, but rather a malfunction in the voting machine once it became heated after a couple hours of use.  The malfunction resulted in a distortion of the ballot images as read by the machines, causing blank ovals to appear darker than they should have. The machines registered these darker images as votes. These “phantom votes,” either led to some candidates getting extra votes (if no candidate had been chosen by a voter) or overvotes (if the voter had filled out a different oval for another candidate in the same contest). 

While the machines in New York provide voters with a warning when ballots cannot be read because of overvoting, the warning used complex election jargon that gave voters misleading cues about their options. Voters in these predominantly Hispanic South Bronx districts apparently chose to override this message without understanding the result was that their votes were not counted. Fortunately, as part of a settlement agreement reached with the State, New York’s voting machines will be reprogrammed before the presidential election in November with an overvote warning message that uses plain language that more clearly explains to voters if the machine is having problems reading their ballot.

We applaud the State and City Boards for conducting a thorough investigation of this matter. The State Board of Elections has forwarded their report to the U.S. Election Assistance Commission so that it can be distributed to other jurisdictions across the country using the ES&S DS-200.

However, more steps need to be taken to prevent lost votes in the future by detecting these problems when they arise. Election officials in New York should publish election results by precinct and report the number of overvotes in each contest. Rockland County already does this. The only reason the Brennan Center was able to discover this anomaly was by reviewing documents obtained in the course of litigation. Had we not done so, the problems in the South Bronx would have likely gone undetected and the machines would continue to be used election after election. It should also be noted that we did not receive complete data from New York City or from other jurisdictions in the state that use the DS-200. As a result, there is no way of knowing where else these kinds of problems may have happened. 

Friday, May 04, 2012

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 Matthew Ladd.

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

New York Campaign Finance and Ethics News

1. In a radio interview this week, Gov. Cuomo renewed the call for statewide campaign finance reform, decrying the corrosive effect that super PACs and high contribution limits continue to have on electoral politics in Albany. “The power of money in the Capitol is unbelievable,” Gov. Cuomo said. Cuomo has pledged to implement a public financing system similar to New York City’s small donor matching program, as well as to improve enforcement of state campaign finance laws, close campaign finance loopholes and lower contribution limits.

2. The debate over public financing has begun in the state Senate, with the introduction of new legislation by Senator Eric Adams, which would establish a public financing program, create an independent enforcement counsel in the State Board of Elections, lower contribution limits and improve disclosure of independent political spending.  At a press conference called by Senate Democrats, Senate Democratic Leader John Sampson told reporters that public campaign finance would dilute the influence of moneyed interests and enhance the power of small donors. Sen. Tom Duane added that Gov. Cuomo’s support is crucial for a bill’s passage, observing that the governor’s track record on marriage reform and pension benefits is clear evidence that “when he puts his mind to something, he can win.”

3. Reform groups including Citizen Action New York gathered in Albany on Monday to protest the outsized influence of the natural gas industry on the state legislature’s approach to hydrofracking, noting that the industry has contributed more than $1.3 million to state legislators in an effort to buy support for the controversial practice. Sierra Club representative Robert Ciesielski cited a study by Common Cause that the governor of Pennsylvania, Tom Corbett, had received over $1.6 million in political donations from the industry—a figure that, given the current state of New York’s campaign finance laws, lobbyists in Albany could well surpass.

4. On Wednesday, Fair Elections for New York held a screening in Albany of “Pricele$$,” a new documentary on the influence of money in politics that includes interviews with former Gov. Mario Cuomo and former U.S. Representative Dan Maffei (D—NY), who is currently running for the seat he lost in 2010. Filmmaker Steve Cowan posted full transcripts of his interviews with Cuomo and Maffei on the film’s website, which include Maffei’s observation he supports public campaign finance “because it means the only people we’ll have to worry about in our day are the taxpayers and constituents in our district, and that’s what we’re supposed to do.”


National Campaign Finance News

1. President Obama’s two most recent fundraising efforts have added at least $2 million to his campaign’s war chest, adding fuel to predictions that 2012 will be the costliest presidential race in U.S. history. The two fundraisers, in which contributors paid $40,000 a plate, are the latest in over 100 campaign fundraisers the president has held since early last year.

2. Nate Silver writes in the New York Times, however, that small contributions ($200 or less) still make up over half of the president’s total contributions during the current election cycle, in contrast to a mere 13% of Mitt Romney’s campaign contributions. Silver notes that in the current era of super PACs and big-ticket fundraisers, the dearth of small contributions does not indicate a weak campaign budget so much as it suggests a lack of support among grassroots Republican voters.

3. In an effort to draw attention to the coercive effects of Super PAC spending on the political process, two leading reform advocates have chosen an unusual strategy: creating a “hybrid” PAC and super PAC whose aim is to remind voters “that money and politics remains an issue in the campaign, and that we have the option of creating political accountability around it.” The announcement came just days before a new report by the Annenberg Center revealed that “Restore Our Future,” the super PAC supporting Mitt Romney’s election campaign, has spend $20 million in deceptive advertisements in early primary and caucus states.

4. Ciara Torres-Spelliscy notes in the Huffington Post that, in a victory for campaign finance disclosure, the FCC has decided to make public broadcasters’ records of how much they charge political candidates or committees for advertisements. The disclosure of these so-called “political files” allows voters to see whether broadcasters in TV or other media are charging some candidates more than others—a potential violation of the Bipartisan Campaign Reform Act. The FCC’s rule, Torres-Spelliscy notes, is in stark contrast to the SEC’s foot-dragging over a recent call for disclosure of the political contributions of publicly traded companies.

5. Redistricting in California’s 53 congressional districts has set off a wave of hyper-partisan fundraising by super PACs, as both parties see California races as crucial to winning a majority in the U.S. House this fall. Super PACs such as American Crossroads, partly managed by Karl Rove, and the GOP Congressional Leadership Fund, to which billionaire Sheldon Adelson has contributed $5 million, are expected to play a leading role. Bill Allison, editorial director of the nonpartisan watchdog organization Sunlight Foundation, predicted that “After the election, it is these donors who will have access and entree to Congress at a level that will be unbelievable compared to what we’ve seen before.”


Friday, April 27, 2012

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 Matthew Ladd and Dan Rockoff.

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

New York Campaign Finance and Ethics News

1. Assembly Speaker Sheldon Silver formally introduced a bill this week that would create a statewide voluntary public matching funds program in New York, calling on fellow legislators to pass the bill and make New York state “the model for the rest of the nation in establishing and preserving fair elections.” In a press release accompanying the announcement, Silver noted, “In light of the devastating effects the Supreme Court’s Citizens United decision has had on federal elections, we in New York should be leading the way in reducing the influence of money in our own elections.” The full bill, which can be read here on the State Assembly website, in addition to providing new contribution limits and enforcement rules, also stipulates that the public campaign fund would be partially financed with money from Wall Street fraud settlements.

2. Media producer and NY LEAD coalition member Marc Weiss, writing for Newsday, called for New York senators and assembly members to support Gov. Cuomo and Speaker Silver in passing public campaign finance legislation, asking, “Do they want to continue business as usual, or do they want to be part of the solution?” Under the state’s current system, Weiss observed, “regular voters feel disconnected from the process and tune out altogether. He went on to cite a Siena poll conducted earlier this year that found 3 out of every 4 New Yorkers would support a statewide campaign finance reform that includes a voluntary small-donor public matching funds program.

3. Washington Post editorial writer E.J. Dionne offered unequivocal support this week for public campaign finance in New York state, pointing out that, like the New York City small-donor matching system on which it is modeled, the state public finance legislation “creates incentives for more people to participate... expands the number of people speaking through their contributions... [and] opens the way for candidates who might otherwise be driven from the competition by established politicians with access to traditional funding sources.” Simply put, Dionne concludes, “it makes our democracy democratic again.”

4. The Nation reminds us why this year presents such a unique opportunity for the passage of public campaign finance in New York, pointing out that the current legislative campaign has garnered the support of the pro-business Committee on Economic Development, Senator Russ Feingold, and an impressive roster of business leaders and philanthropists. But no bill will pass without the public support of Gov. Cuomo; the article finds that public campaign finance presents the governor with the opportunity “to step into the leadership vacuum and provide a rare glimpse of hope on a mission-critical progressive priority.”

5. Former state Senator Carl Kruger was sentenced to seven years in prison on Thursday for his leading role in a million-dollar bribery conspiracy that exemplified the pay-to-play reputation of the New York state legislature. In imposing the sentence, federal judge Jed S. Rakoff observed that Kruger had engaged in “extensive, long-lasting, substantial bribery schemes that frankly were like daggers in the heart of honest government.” This week also saw closing arguments in the corruption trial of Pedro Espada, Jr., the former state senate majority leader accused of embezzling hundreds of thousands of dollars from a publicly funded healthcare system in order to finance his lavish personal lifestyle.

National Campaign Finance News

1. The New York Times reports that the same wealthy groups that funded the Republican takeover of the U.S. House in 2010 are now mounting an “aggressive campaign” to capture seats in the Senate, one whose final cost will exceed $100 million by November. Much of that money is evidently funding attack ads against Democratic incumbents; for instance, Sen. Claire McCaskill (D—MO) already faces over $2.2 million in television ads funded by the Chamber of Commerce, Crossroads GPS (an offshoot of the super PAC American Crossroads), and other right-leaning groups. Sen. McCaskill said, “You make one company mad by casting a principled vote, and they say, ‘Okay, we’ll just gin up $10 million of our corporate money and take her out anonymously.’ I think if people figure out that’s what’s going on, they’re going to be very turned off by it.”

2. A new national survey conducted by the independent Opinion Research Corporation on behalf of the Brennan Center revealed that “nearly 70 percent of Americans believe Super PAC spending will lead to corruption.” Nearly three out of four survey respondents also found that limiting contributions to super PACs would reduce corruption, and over 50% of both Republicans and Democrats agreed with the statement that “spending in this election is more likely to lead to corruption.” Candidates across the country are taking notice and adopting campaign rhetoric accordingly.

3. The Times also called on the U.S. Senate to require electronic filing of campaign finance reports, finding that while the House already has a system whereby candidates disclose “by a push of a button,” the Senate does not. Under the Senate’s outdated and inefficient system, the Times reports, crucial information is often not disclosed until after voters have already been to the polls.

4. The corruption trial of disgraced former Senator and presidential candidate John Edwards began on Monday. The trial, which is expected to last six weeks, opened with testimony that Edwards knowingly accepted illegal campaign contributions in order to hide an ongoing affair from his ailing wife. Conviction on all six counts would leave Edwards facing up to 30 years in prison and $1.5 million in fines.

5. A former aide to U.S. Representative Don Young (R-AK) told the FBI that Rep. Young used campaign funds for personal expenses, including hunting trips, meals, and charter flights. The FBI ultimately cleared Rep. Young of wrongdoing in connection with a budget earmark for a highway, but documents released last week from the investigation show that his aides expressed doubts about “inappropriate” expenses.

Friday, April 20, 2012

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 Matthew Ladd and Dan Rockoff.

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

New York Campaign Finance and Ethics News

1. This week saw the publication of several editorials calling on Gov. Cuomo to maintain his commitment to creating a public campaign finance program in New York state, beginning with a Sunday New York Times editorial that cut to the heart of the matter: “There is no mystery about what New York State needs: do it like New York City.” The Times also noted that Cuomo now has “big-time support” for public campaign finance in the form of the NY LEAD coalition, the subject of a front-page story in the Times last week.

2. On Monday, the Newsday editorial board called public campaign finance “New York’s chance to blunt big donors,” noting that the current contribution limit of $60,800 for a state candidate is over 12 times the national median, and citing a recent report by NYPIRG that found that just 127 donors gave one third of the total amount of money raised by state-level candidates and political parties. The editorial praised Gov. Cuomo for supporting public campaign finance but adds, “better still would be action to make it a reality.” Monday’s Times Union reported that Cuomo’s popularity, together with emergence of the NY LEAD coalition, have created what Citizen Action Executive Director Karen Scharff calls a “unique moment in time” for public campaign finance. A Times Union editorial also highlighted one of the major benefits of public campaign finance: not only a reduction in the influence of corporate money, but a “surge in civic engagement,” based on new information released by the Campaign Finance Institute (below).

3. The Campaign Finance Institute released a new report by Prof. Michael Malbin finding that a state-level public matching funds system would “reverse the importance of small and large donors” in state electoral campaigns, and that “importing something like the city’s program is likely to bring greater participation and equality to the state’s campaign finance system.” Prof. Malbin’s report concludes that a small-donor matching funds program is likely to boost the total percentage of small donations ($250 or less) in state races from 6% to 54%, allowing small donors to be “the most important financial constituents instead of the least important.” The full study can be downloaded as a PDF here.

4. As if to confirm the conclusions drawn by the Campaign Finance Institute, the Wall Street Journal noted this week that hedge funds have contributed tens of millions of dollars to state political candidates and parties within the past few years, and that the amounts are steadily growing: from $4.1 million in 2006 to over $7 million in 2010.

5. Advocates for Fair Elections for New York held a well-attended press conference in Albany on Wednesday, urging lawmakers to pass a public campaign finance bill before the end of the legislative session in June. The press conference included statements from NY LEAD, Citizen Action, the Brennan Center, NYPIRG, and Citizens Union, among other organizations and community groups from across the state.

6. An Albany grand jury is deciding whether to indict former Sen. Majority Leader Joe Bruno on new charges of receiving kickbacks while he was in office. Bruno, who was earlier convicted of fraud by a federal district court, saw that conviction overturned on appeal thanks to a Supreme Court ruling that limited the definition of “honest services fraud,” which includes accepting bribes and kickbacks. Bruno spent nearly $2 million in campaign contributions to fund his legal defense during his trial in 2009.

7. In other news concerning disgraced New York state senators, former state Sen. Carl Kruger, facing over a decade in prison for taking over $500,000 in bribes during his tenure in office, appealed to a federal judge for mercy this week in a sentencing memorandum that emphasized his “humble and modest life.” He will be sentenced in Manhattan federal court next week. Meanwhile, testimony in the embezzlement trial of former Sen. Majority Leader Pedro Espada Jr. revealed that Espada took in over a quarter of a million dollars from his Soundview Health Care Network, ostensibly for “unused vacation time,” in order to reimburse Soundview for the “personal expenses” he charged to its corporate American Express card—expenses that included tickets to sporting events and bills from restaurants near Espada’s home in Mamaroneck.

National Campaign Finance News

1. 2012 is shaping up to be the most expensive presidential race in history, with Mitt Romney’s campaign now estimating that it will spend a total of $1 billion in the general presidential election this summer and fall, including $800 million from joint fundraising between the Romney Campaign and the Republican National Committee. The campaign also states that another $200 million will likely be spent by super PACs.

2. The Democratic Party and the Obama campaign raised $53 million in March in preparation for the upcoming general election season. Obama campaign manager Jim Messina pointed out that the average contribution to the campaign in March was small—a little over $50—but the president ahs also held big-ticket joint fundraisers with his victory committees and the Democratic National Committee, events at which wealthy donors can write checks for up to $38,500.

3. The Obama White House has also shown itself friendly to lobbyists; as the Times reports, “the regular appearance of big donors inside the White House underscores how political contributions continue to lubricate many of the interactions between officials and their guests.” Although the Obama administration has publicly declared that it will not accept contributions from registered lobbyists, this does not stop big donors with access to the White House from bringing lobbyists with them on their visits.

4. The Presidential Election Campaign Fund, which allows presidential candidates to opt into using volunteered public funds to finance their campaigns, is steadily shrinking, according to FEC records. Those records show that in 2010 fewer than 7% of Americans chose to make a donation to the fund, far below the funds’ high-water mark of 29% in 1980. President Obama was the first major-party candidate to opt out of public funding for both the primary and general elections in 2008, and both he and Mitt Romney are expected to opt out of the system this year as well, leading some to wonder whether the PECF will last much longer. The New York Times called upon candidates to fix the presidential public financing system – and to stop selling White House access to big campaign donors.

Friday, April 13, 2012

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 Matthew Ladd and Dan Rockoff.

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

New York Campaign Finance and Ethics News

1. “An unusual and well-heeled coalition, trying to tap public anger over the flood of money into politics, is pushing to enact a public financing system for elections in New York State,” reported the New York Times in a front-page article on the New York Leadership for Accountable Government (NY LEAD) coalition.  The Times listed prominent business leaders who support NY LEAD, including Barry Diller, Facebook co-founder Chris Hughes, restaurateur Danny Meyer and philanthropist Davis Rockefeller Sr. The Times reported that these leaders believe “New York, which they call a symbol of institutionalized corruption, could become a national model for the effort to free elections from the grip of big money.”

2. In preparation for the launch of the Fair Elections for New York campaign, a series of events in Albany and across the state are being held to call attention to state legislators’ reliance on out-of-district campaign contributions—further evidence of the need for a state public campaign finance system that relies on small donors and local money. A partial list of upcoming public events can be found here.

3. The Utica Observer-Dispatch is the latest paper to add its voice to the chorus calling for public financing of elections, noting in an editorial this week that lobbying interests and super-wealthy contributors have skewed the electoral process against the small donor. The paper cited recent reports by the New York Public Interest Research Group (NYPIRG) and the state’s Joint Commission on Public Ethics (JCOPE) as evidence of the outsized influence that Albany lobbyists currently enjoy.

4. Speaking of lobbying, the Daily News reports that the NRA has given New York state legislators over $200,000 since 2003: more than the pro-gun group has spent on campaign contributions in any other state. Almost half of these donations came in 2010, when the New York legislature defeated a bill that would have required bullet casings to carry unique markings. Democrats, including Jose Peralta (D-Queens), who sponsored the “microstamping” bill in the Senate, argue that the gun lobby’s donations to the GOP are a key reason for the demise of the bill. On Friday, the Daily News editorial board expressed its strong support for the microstamping law, arguing that senate Republicans should “stop kowtowing to the NRA.”

5. Former governor George Pataki announced this week that he has formed a super PAC, “Tipping Point,” intended to raise money to protect incumbent Republicans in the state legislature and unseat vulnerable Democrats. Pataki declared in an interview that he hopes the super PAC will raise an amount “in the high seven figures. If things go well, in the low eight.”

6. The Times Union editorial board writes this week that the three seats left open by retiring Assembly members will create new opportunities for more competitive races during the next election cycle. Although the decisions by assemblymen Ronald Canestrari (D-Cohies), Jack McEneny (D-Albany) and Bob Reilly (D-Colonie) means the loss of lawmakers who voiced strong support for campaign finance reform and other reform measures, the empty seats will ensure that no candidate in the next election arrives with the advantages of incumbency. “As for reform,” the Times Union writes, “we’ll be looking to those new, would-be incumbents to talk about what it might look like.”

7. The New York Post finds that NYC Comptroller John Liu has spent more in legal defense this year than he has raised in campaign contributions. The past year has seen Liu’s campaign weather a number of legal problems related to the Comptroller’s campaign finance reports, including an ongoing federal investigation, as well as the arrest of both his former treasurer Jenny Hou and a campaign fundraiser, Oliver Pan, who was indicted for his role in a straw bundling scheme.

National Campaign Finance News

1. The battle of the presidential super PACs has apparently begun, the New York Times reports, finding that the Republican super PAC “American Crossroads,” with a war chest of over $200 million, is planning to roll out a huge anti-Obama advertising blitz within the coming weeks and throughout the summer. That “American Crossroads” was co-founded by Republican political strategist Ed Gillespie—who recently signed on as a senior adviser to the Romney campaign—seems to only increase the evidence that the ostensibly “independent spending” of super PACs is anything but, and that voters can expect, as the Times reports, that “the general election campaign will be fought in large part by proxy, via the super PACs.”

2. The upcoming presidential contest “is going to be the most moneyed election in the history of the United States,” according to Bob Edgar of Common Cause. The campaign of presumptive Republican nominee Mitt Romney has stated that its goal is to raise $600 million this election season, while President Obama is forecast to raise even more than the $750 million his campaign took in four years ago. These fundraising goals, writes the Times, “make it virtually certain that neither party’s nominee will accept public funds for the general election or the spending limits that come with them.” 

3. House Majority Leader Eric Cantor’s eponymous super PAC (“Every Republican is Crucial, ” or “ERIC”) recently donated $25,000 to an anti-incumbent super PAC (“Campaign for Primary Accountability”). Cantor evidently intended the money to be used to support Representative Adam Kinzinger, who Cantor supported in a GOP primary against Representative Don Manzullo. This episode illustrates the outsize influence super PACs can have: GOP officials expressed “no doubt” that the $239,000 spent by the Campaign for Primary Accountability significantly contributed to Kinzinger’s victory.

4. The New York Times called on President Obama this week to “nominate [to the FEC] respected nonpartisan individuals dedicated to fair campaigning, and do it soon.” The President promised during his campaign to reform the Federal Election Commission, and he has the authority to name replacements for five sitting commissioners. The paper, however, acknowledged that Republicans would likely seek to block any nominations.

5. Jury selection has begun in the trial of former Senator John Edwards on charges of violating federal campaign finance law. Edwards was indicted last June on six counts of conspiracy, making false statements, and accepting illegal campaign contributions—including using over $900,000 in campaign donations to hide an affair with the filmmaker Rielle Hunter. Opening arguments in North Carolina federal district court are scheduled to begin later this month.