No PAC $ for DNC, Conventions Hit 'Soft' Spot
Liza Porteus Viana
Contributor
Posted:
06/5/08
Keeping in line with Barack Obama's policy, the Democratic National Committee won't accept donations from lobbyists and political committees heading into the general election against John McCain. Obama is keeping Howard Dean as the DNC head, and sent adviser Paul Tewes over to Democrats' headquarters to oversee the changes.
To be clear, AP notes - Obama does accept money from lobbyists who don't do business with the federal government and he accepts money from lobbyists' spouses and family members. He does have lobbyists for whom he relies on for policy and campaign support, even though they may not be paid. He has had unpaid advisers with federal lobbying clients, and some campaign officials have been lobbyists in their prior lives.
DNC officials said Thursday the committee had raised $4.7 million in May, bringing the total raised this election cycle to $82.3 million; $2 million came from PACs over the past 16 months. The Center for Responsive Politics says the DNC raised $53,360 from executives or associates in lobbying firms so far. Those numbers make up a small total of total money donated anyway. For comparison, the RNC said it raised $166 million so far and had $53.6 million in the bank at the end of last month. The DNC had $4 million in its account.
But another, perhaps more interesting, money story out today is that both Democrats and Republicans are using local "host committees" in Denver and Minneapolis-St. Paul as vehicles for unlimited soft money contributions to their conventions this year.
A Campaign Finance Institute analysis, based in part on FOIA documents from governors, says these host committees are expected to pay for as much as 80% of convention expenses. Private financing is currently estimated to total $12 million, but that number could rise.
The CFI notes that after the 2002 law banned unlimited corporate, union and individual "soft money" to political parties went into effect, the FEC considered its exemption for host committee spending had turned into a huge loophole. But the agency decided that the system can carry on, since convention motivation is "a desire to promote the convention city and not by political considerations." (Ri-ight.)
But CFI found that this simply isn't reality, and that a loophole to the law is, in fact, being exploited.
"When one looks not simply at the formal organization of the host committee (as the FEC did) but at who is actually raising the money, one sees that the dominant roles are being played by teams of elected officials at all levels of government from the convention party and their associates in the party's network of financiers and operatives."
It also found that when officials ask for money, they're often promising special access to federal elected officials, national party leaders and other party influentials, in return.
"Contrary to the FEC's conclusion, 'political considerations' have a lot to do with host committee fundraising activity. All the more so when one considers that about half of the private money for both conventions this year is slated to come from out-of-state companies with relatively little desire to 'promote the convention city.'"
The Minneapolis St. Paul Host Committee defended the system, reports the Star-Tribune, saying the convention is an opportunity to showcase the Twin Cities and without the private donations, cities and the state would have to shoulder the costs.
A "rigorous compliance program in place" to make sure all its activities comply with all applicable fundraising, tax and campaign finance laws, the committee's CEO Jeff Larson said in a statement. All money raised and spent will be detailed in an FEC report, he said.
Get real, one Minnesota political insider who has worked with both parties told CFI.
"If I'm a Republican senator and there is a convention in my city, I want a successful convention not only for its civic value but partly for its political value," the insider says. "I have more at stake than a Democratic senator who can advance no political goals."
To be clear, AP notes - Obama does accept money from lobbyists who don't do business with the federal government and he accepts money from lobbyists' spouses and family members. He does have lobbyists for whom he relies on for policy and campaign support, even though they may not be paid. He has had unpaid advisers with federal lobbying clients, and some campaign officials have been lobbyists in their prior lives.
DNC officials said Thursday the committee had raised $4.7 million in May, bringing the total raised this election cycle to $82.3 million; $2 million came from PACs over the past 16 months. The Center for Responsive Politics says the DNC raised $53,360 from executives or associates in lobbying firms so far. Those numbers make up a small total of total money donated anyway. For comparison, the RNC said it raised $166 million so far and had $53.6 million in the bank at the end of last month. The DNC had $4 million in its account.
But another, perhaps more interesting, money story out today is that both Democrats and Republicans are using local "host committees" in Denver and Minneapolis-St. Paul as vehicles for unlimited soft money contributions to their conventions this year.
A Campaign Finance Institute analysis, based in part on FOIA documents from governors, says these host committees are expected to pay for as much as 80% of convention expenses. Private financing is currently estimated to total $12 million, but that number could rise.
The CFI notes that after the 2002 law banned unlimited corporate, union and individual "soft money" to political parties went into effect, the FEC considered its exemption for host committee spending had turned into a huge loophole. But the agency decided that the system can carry on, since convention motivation is "a desire to promote the convention city and not by political considerations." (Ri-ight.)
But CFI found that this simply isn't reality, and that a loophole to the law is, in fact, being exploited.
"When one looks not simply at the formal organization of the host committee (as the FEC did) but at who is actually raising the money, one sees that the dominant roles are being played by teams of elected officials at all levels of government from the convention party and their associates in the party's network of financiers and operatives."
It also found that when officials ask for money, they're often promising special access to federal elected officials, national party leaders and other party influentials, in return.
"Contrary to the FEC's conclusion, 'political considerations' have a lot to do with host committee fundraising activity. All the more so when one considers that about half of the private money for both conventions this year is slated to come from out-of-state companies with relatively little desire to 'promote the convention city.'"
The Minneapolis St. Paul Host Committee defended the system, reports the Star-Tribune, saying the convention is an opportunity to showcase the Twin Cities and without the private donations, cities and the state would have to shoulder the costs.
A "rigorous compliance program in place" to make sure all its activities comply with all applicable fundraising, tax and campaign finance laws, the committee's CEO Jeff Larson said in a statement. All money raised and spent will be detailed in an FEC report, he said.
Get real, one Minnesota political insider who has worked with both parties told CFI.
"If I'm a Republican senator and there is a convention in my city, I want a successful convention not only for its civic value but partly for its political value," the insider says. "I have more at stake than a Democratic senator who can advance no political goals."