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Campaign Finance &
  Political Influence
               An overview
A Washington tale…
      —  Bank of America increased
          the interest rate on Bonnie
          Rushing’s credit card from
          8 percent to 23 percent.




      —  Sen. Thomas Carper: “But
          let me just ask you -- put
          yourself in the shoes of the
          credit card company…”
—  And how do the credit
    card companies feel
    about Sen. Tom Carper?
—  Rushing’s monthly
    interest bill went from
    about $150 to $674
—  Small change to a U.S.
    Senator’s campaign
    committee…
Think of inputs and outputs
Happens at state level…
                   —  You may recall Gov. Rick
                       Perry

                   —  Texas Tech fund
                       rewarded donors

                   —  They gave in $32K-$310K
                       range

                   —  They got millions back
…and at the local level
                    —  Donors gave Kasim Reed
                        campaign contributions

                    —  Insiders raised money for
                        Reed’s mayoral
                        campaign

                    —  Airport concessions
                        awarded to…
                      —  Big donors to Reed’s
                          campaign
                      —  Big fundraisers for
                          Reed’s campaign
Multiple means to exert influence
                 —  Hire former staffers as
                     lobbyists

                 —  Hire former lawmakers,
                     councilmen, etc.

                 —  Contribute to inaugural events

                 —  Give money to lawmaker
                     charities

                 —  Give to super PACs

                 —  Hire relatives of elected
                     officials
Politicians have lots of pockets
                  —  Campaigns

                  —  Parties

                  —  Leadership PACs

                  —  Nonprofits

                  —  Businesses & investments

                  —  Super PACs

                  —  Family members
Businesses can pick the pocket(s)
                    —  Lots of places to look

                    —  We’ll suggest some
                        resources

                    —  Not all this money can be
                        traced

                    —  Sometimes, you need
                        sources
One thing to remember is that all of
this is governed by rules
           —  Federal election law, lobbying
               disclosure, congressional ethics
               rules
           —  50 sets of state rules
           —  Some local jurisdictions have
               rules specific to them
               (sometimes dependent on state
               law)
—  In Colorado, corporate and labor donors are banned, except
    when they aren’t

—  Colorado Springs is the largest home rule municipality in
    Colorado
Let’s look at the federal level
—  (inflation adjusted)            —  (not inflation adjusted)
  —  Up to $2,500 per election       —  Up to $5,000 to a Political
      to a candidate, that is,            Action Committee per year
      $2,500 for the primary,         —  $10,000 to state, district &
      $2,500 for the general              local party committee (for
  —  $30,800 to a national party         use in federal elections,
      committee (RNC, DCCC,               that is) (combined limit)
      etc.)                           —  Unlimited amount to super
  —  Up to $117,000 every two            PAC for eligible U.S. donors
      years to PACs, parties,
      candidates…
…but potentially a lot more if
  they have a lot of friends
—  Bundlers put together
    networks of donors, all of
    whom can write $500,
    $1,000 or $2,500 checks
    to campaigns
—  They are important at all
    levels
—  We find bundlers at
    presidential,
    congressional, state and
    probably local donors…
Unfortunately…
—  While bundlers are bigger
    than ever…

—  No requirement at federal
    level that they be disclosed

—  You can always ask a
    campaign “who the finance
    committee is”

—  But there’s no place to ask,
    “Is CEO of this company a
    bundler”

—  Only one searchable (but
    limited) resource…
—  As part of the Honest
    Leadership and Open
    Government Act of 2007
 —  Registered lobbyists must
     disclose the bundling of
     contributions they do for
     federal candidates
 —  Applies to individuals
     they bring to fundraisers,
     PACs they control or
     persuade to contribute
 —  All bundles over $16,200
     are reported
 —  Data available at http://
     influenceexplorer.com/
     fec/bundling
Easy to get around disclosure
                —  We see tons of invites like
                    this one

                —  Hosts commit to raise money

                —  Vast majority don’t show up
                    as bundlers

                —  Even when they’re lobbyists
What a business can do

—  Form (and pay
    expenses of) a political
    action committee
  —  PACs can contribute
      $5,000 per election (i.e.,
      primary, general) to a
      candidate; $15,000 to a
      national party
      committee; $5,000 to
      state, district or local
      parties per year; $5,000
      to other PACs per year
  —  Funds must be
      “segregated” from
      other corporate money
Note this language…




—  Where are corporations like ExxonMobil and
    Imperial Oil, and labor unions as well, making
    contributions?
Make donations to 501(c)’s
…and to Super PACs
—  Mostly individual donors

—  Few businesses show up

—  But individuals run
    companies

—  Have interests before
    government
Hire lobbyists
                 —  Lobbyists get access

                 —  Lobbyists are also
                     contributors

                 —  Federal disclosure at
                     InfluenceExplorer.com,
                     OpenSecrets.org

                 —  State disclosure spread
                     over 50 state websites
Lots of lobbyists do lots of
fundraising
                        —  Party Time tracks
                            fundraisers

                        —  Lots of invitations
                            list “hosts”

                        —  Hosts can be PACs or
                            lobbyists that
                            pledge to raise
                            money
Donate to inaugural committees
                  —  All states have different
                      rules

                  —  Sometimes donors can
                      give more

                  —  Enron gave lots to
                      Bush’s Texas inaugural

                  —  501(c)4s most common
                      vehicle

                  —  Don’t have to disclose
                      donors

                  —  Check Guidestar.org
Pay for junkets
                  —  Not always easy to
                      trace

                  —  Disclosure for
                      Congress, Executive
                      Branch

                  —  States, localities vary
Where do you get information?
—  Federal
  —  Primary                     —  State
      —  FEC.gov                   —  Primary
      —  House Clerk                   —  State election authorities
      —  Secretary of Senate           —  State ethics commissions
  —  Secondary                         —  IRE has a resource for
                                            finding them
      —  OpenSecrets.org
                                    —  Secondary
      —  InfluenceExplorer.com
                                        —  Followthemoney.org
      —  NICAR
                                        —  Influenceexplorer.com
      —  NY Times
                                    —  Local
                                        —  Can be city clerk, state
                                            ethics commission, etc.
Some other things to check…
                   —  Trip reports/junkets

                   —  Personal financial
                       disclosures

                   —  Does the business you’re
                       looking at have a
                       charitable arm?
                     —  Whom do they give
                         money to?
                     —  Do they sponsor things
                         like charity golf games?
Some of the forms in
Massachusetts (municipal)
Sources of information
www.FEC.gov
              —  Clunky

              —  Getting
                  better

              —  Still not
                  perfect

              —  Original
                  source of
                  data
Useful features




—  Presidential election map   —  Congressional election
    with ZIP-coded                  map with downloadable
    contributions                   files for every candidate
Easier resource: OpenSecrets.org
Tons of data…
                —  Federal candidates
                    1987 to present
                —  PACs 1997 to present
                —  Lobbying 1998 to
                    present
                —  Trips, financial
                    disclosure and much
                    more…
                —  You can buy custom
                    slices of data from it
Lobbying
What you get
Drilling down
Easier resource
Takes information from forms and
makes it easier to use
State disclosures vary
considerably—here’s Mass.
Issues, campaign contributions
listed on individual lobbyist pages
In Vermont, photo = issues
InfluenceExplorer.com
Note all the different data sets
              —  State and federal campaign
                  contributions

              —  Federal lobbying

              —  Federal regulatory matters

              —  Federal grants and contracts (also
                  has earmarks)

              —  For top contractors, run-ins with
                  federal government

              —  EPA fines

              —  Federal Advisory Committee info
All data can be searched and
   downloaded




—  http://data.influenceexplorer.com

—  Download data in Excel format
On the federal level, regulations matter




—  Companies comment on them

—  Companies lobby on them

—  Politicians rail against them
Influence Explorer tracks
regulatory actions
Drill down to individual comments
State money
National Institute on Money in State
Politics
                         —  Like CRP, it
                             codes
                             contributions by
                             industry
                         —  Covers all 50
                             states
                         —  It always runs a
                             bit behind raw
                             state
                             disclosures
Some good resources for
navigating what’s available
                   —  NIMSP also has a run
                       down of all state laws on
                       lobbying disclosure

                   —  National Conference on
                       State Legislatures has
                       pages, too

                   —  Groups that do a lot of
                       lobbying, such as Assoc.
                       Builders & Contractors,
                       have lists & links too
Always happy to help steer
you to a resource
Bill Allison
Editorial Director
Sunlight Foundation
Ballison@sunlightfoundation.com 202-742-1520 ext 224
@bill_allison

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Campaign Finance and Political Influence by Bill Allison

  • 1. Campaign Finance & Political Influence An overview
  • 2. A Washington tale… —  Bank of America increased the interest rate on Bonnie Rushing’s credit card from 8 percent to 23 percent. —  Sen. Thomas Carper: “But let me just ask you -- put yourself in the shoes of the credit card company…”
  • 3. —  And how do the credit card companies feel about Sen. Tom Carper? —  Rushing’s monthly interest bill went from about $150 to $674 —  Small change to a U.S. Senator’s campaign committee…
  • 4. Think of inputs and outputs
  • 5. Happens at state level… —  You may recall Gov. Rick Perry —  Texas Tech fund rewarded donors —  They gave in $32K-$310K range —  They got millions back
  • 6. …and at the local level —  Donors gave Kasim Reed campaign contributions —  Insiders raised money for Reed’s mayoral campaign —  Airport concessions awarded to… —  Big donors to Reed’s campaign —  Big fundraisers for Reed’s campaign
  • 7. Multiple means to exert influence —  Hire former staffers as lobbyists —  Hire former lawmakers, councilmen, etc. —  Contribute to inaugural events —  Give money to lawmaker charities —  Give to super PACs —  Hire relatives of elected officials
  • 8. Politicians have lots of pockets —  Campaigns —  Parties —  Leadership PACs —  Nonprofits —  Businesses & investments —  Super PACs —  Family members
  • 9. Businesses can pick the pocket(s) —  Lots of places to look —  We’ll suggest some resources —  Not all this money can be traced —  Sometimes, you need sources
  • 10. One thing to remember is that all of this is governed by rules —  Federal election law, lobbying disclosure, congressional ethics rules —  50 sets of state rules —  Some local jurisdictions have rules specific to them (sometimes dependent on state law)
  • 11. —  In Colorado, corporate and labor donors are banned, except when they aren’t —  Colorado Springs is the largest home rule municipality in Colorado
  • 12. Let’s look at the federal level —  (inflation adjusted) —  (not inflation adjusted) —  Up to $2,500 per election —  Up to $5,000 to a Political to a candidate, that is, Action Committee per year $2,500 for the primary, —  $10,000 to state, district & $2,500 for the general local party committee (for —  $30,800 to a national party use in federal elections, committee (RNC, DCCC, that is) (combined limit) etc.) —  Unlimited amount to super —  Up to $117,000 every two PAC for eligible U.S. donors years to PACs, parties, candidates…
  • 13. …but potentially a lot more if they have a lot of friends —  Bundlers put together networks of donors, all of whom can write $500, $1,000 or $2,500 checks to campaigns —  They are important at all levels —  We find bundlers at presidential, congressional, state and probably local donors…
  • 14. Unfortunately… —  While bundlers are bigger than ever… —  No requirement at federal level that they be disclosed —  You can always ask a campaign “who the finance committee is” —  But there’s no place to ask, “Is CEO of this company a bundler” —  Only one searchable (but limited) resource…
  • 15. —  As part of the Honest Leadership and Open Government Act of 2007 —  Registered lobbyists must disclose the bundling of contributions they do for federal candidates —  Applies to individuals they bring to fundraisers, PACs they control or persuade to contribute —  All bundles over $16,200 are reported —  Data available at http:// influenceexplorer.com/ fec/bundling
  • 16. Easy to get around disclosure —  We see tons of invites like this one —  Hosts commit to raise money —  Vast majority don’t show up as bundlers —  Even when they’re lobbyists
  • 17. What a business can do —  Form (and pay expenses of) a political action committee —  PACs can contribute $5,000 per election (i.e., primary, general) to a candidate; $15,000 to a national party committee; $5,000 to state, district or local parties per year; $5,000 to other PACs per year —  Funds must be “segregated” from other corporate money
  • 18. Note this language… —  Where are corporations like ExxonMobil and Imperial Oil, and labor unions as well, making contributions?
  • 19. Make donations to 501(c)’s
  • 20. …and to Super PACs —  Mostly individual donors —  Few businesses show up —  But individuals run companies —  Have interests before government
  • 21. Hire lobbyists —  Lobbyists get access —  Lobbyists are also contributors —  Federal disclosure at InfluenceExplorer.com, OpenSecrets.org —  State disclosure spread over 50 state websites
  • 22. Lots of lobbyists do lots of fundraising —  Party Time tracks fundraisers —  Lots of invitations list “hosts” —  Hosts can be PACs or lobbyists that pledge to raise money
  • 23. Donate to inaugural committees —  All states have different rules —  Sometimes donors can give more —  Enron gave lots to Bush’s Texas inaugural —  501(c)4s most common vehicle —  Don’t have to disclose donors —  Check Guidestar.org
  • 24. Pay for junkets —  Not always easy to trace —  Disclosure for Congress, Executive Branch —  States, localities vary
  • 25. Where do you get information? —  Federal —  Primary —  State —  FEC.gov —  Primary —  House Clerk —  State election authorities —  Secretary of Senate —  State ethics commissions —  Secondary —  IRE has a resource for finding them —  OpenSecrets.org —  Secondary —  InfluenceExplorer.com —  Followthemoney.org —  NICAR —  Influenceexplorer.com —  NY Times —  Local —  Can be city clerk, state ethics commission, etc.
  • 26. Some other things to check… —  Trip reports/junkets —  Personal financial disclosures —  Does the business you’re looking at have a charitable arm? —  Whom do they give money to? —  Do they sponsor things like charity golf games?
  • 27. Some of the forms in Massachusetts (municipal)
  • 29. www.FEC.gov —  Clunky —  Getting better —  Still not perfect —  Original source of data
  • 30. Useful features —  Presidential election map —  Congressional election with ZIP-coded map with downloadable contributions files for every candidate
  • 32. Tons of data… —  Federal candidates 1987 to present —  PACs 1997 to present —  Lobbying 1998 to present —  Trips, financial disclosure and much more… —  You can buy custom slices of data from it
  • 37. Takes information from forms and makes it easier to use
  • 39. Issues, campaign contributions listed on individual lobbyist pages
  • 40. In Vermont, photo = issues
  • 42. Note all the different data sets —  State and federal campaign contributions —  Federal lobbying —  Federal regulatory matters —  Federal grants and contracts (also has earmarks) —  For top contractors, run-ins with federal government —  EPA fines —  Federal Advisory Committee info
  • 43. All data can be searched and downloaded —  http://data.influenceexplorer.com —  Download data in Excel format
  • 44. On the federal level, regulations matter —  Companies comment on them —  Companies lobby on them —  Politicians rail against them
  • 46. Drill down to individual comments
  • 48. National Institute on Money in State Politics —  Like CRP, it codes contributions by industry —  Covers all 50 states —  It always runs a bit behind raw state disclosures
  • 49. Some good resources for navigating what’s available —  NIMSP also has a run down of all state laws on lobbying disclosure —  National Conference on State Legislatures has pages, too —  Groups that do a lot of lobbying, such as Assoc. Builders & Contractors, have lists & links too
  • 50. Always happy to help steer you to a resource Bill Allison Editorial Director Sunlight Foundation Ballison@sunlightfoundation.com 202-742-1520 ext 224 @bill_allison