Consider the Source

The National Institute on Money In State Politics graded each state by the strength of their independent spending disclosure laws. How did your state score?

Lax state rules provide cover for sponsors of attack ads

By Alan Suderman

While much criticism has been lobbed at the federal system for failing to adequately identify who is spending money to influence campaigns, 35 states have independent spending disclosure laws that are less stringent than federal election law.

In fact, in 30 states it’s impossible to total how much money outside groups are spending on campaigns, information that is mostly available when it comes to federal contests.

That’s according to a new 50-state analysis by the National Institute on Money in State Politics, which graded the states on disclosure requirements for super PACs, nonprofits and other outside spending groups.

Fifteen states — Alaska, California, Colorado, Connecticut, Illinois, Maryland, Massachusetts, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Texas, Washington and Wisconsin — received an “A” grade, meaning the states’ laws were at least as robust as federal independent spending requirements.

New Jersey and Virginia, states where residents will be casting votes for governor and state legislature this year, were among 26 states that received a failing grade.

The others were Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Dakota, Pennsylvania, South Carolina, Tennessee and Wyoming.

States were graded on a 100-point scale, based on how much information is provided to the public about non-candidate organizations that buy ads, often negative and misleading, just before an election. Six states — Alabama, Indiana, New Mexico, New York, North Dakota and South Carolina — didn’t garner a single point in the survey.

Consider the Source

Part of a mailer from the Montana Growth Network.

Judicial candidate blames mystery nonprofit's attacks for defeat

By Michael Beckel

When Ed Sheehy looked at his mail one day last fall, he was startled to see his face staring back at him, posed alongside the notorious “Christmas Day Killer.” Sheehy, as a public defender, had represented the man a year earlier. Now Sheehy was running for a seat on the Montana Supreme Court and someone was using the double-murder to accuse him of being soft on crime.

“I was furious,” the 60-year-old Sheehy, who was born in Butte, Mont., and now resides in Missoula, told the Center for Public Integrity. “It was misrepresenting what I did and what I do as a lawyer.”

So who was behind the attack?

The mailer showed only that it was paid for by the “Montana Growth Network,” a “social welfare” nonprofit, registered under Section 501(c)(4) of the U.S. tax code. Montana election records revealed next to nothing about the organization, which, because of its tax status, is not required to disclose its donors. The nonprofit’s website says its goal is to make Montana “more business friendly.”

Despite finishing on top in the summer’s primary election, Sheehy lost in November.

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AP

IRS nonprofit division overloaded, understaffed

By Dave Levinthal

Amid withering accusations the Internal Revenue Service targeted tea party and other conservative groups with enhanced scrutiny, the agency faces another problem: it’s drowning in paperwork.

The IRS’ Exempt Organizations Division, which finds itself at the scandal’s epicenter, processed significantly more tax exemption applications in fiscal year 2012 by so-called 501(c)(4) “social welfare” organizations  — 2,774 — than it has since at least the late 1990s, according to an analysis of IRS records by the Center for Public Integrity.

Compare that to 1,777 applications in 2011 and 1,741 in 2010, federal records show. Not since 2002, when officials processed 2,402 applications, have so many been received.

Meanwhile, Exempt Organizations Division staffing slid from 910 employees during fiscal year 2009 to 876 during fiscal year 2012, agency personnel documents indicate.

In 2010, IRS officials projected exempt division staffing at 942 employees. But IRS officials cut the number to 900 after the agency began slashing its budget in response to fiscal woes affecting most corners of the federal government.

The agency said this weekend that a heavy workload prompted bureaucrats to “centralize” the “influx of advocacy applications” and, in the name of efficiency, scrutinize groups that contained more common phrases such as “tea party” in them.

Consider the Source

Democrat Elizabeth Colbert Busch and Republican Mark Sanford are facing off against each other in a special congressional election in South Carolina.

Associated Press

Colbert Busch backed by D.C.-based groups

By Dave Levinthal

Some support Republican Mark Sanford. Far more back Democrat Elizabeth Colbert Busch.

But the political groups that have together poured $1.1 million — 85 percent benefiting Colbert Busch — into South Carolina’s special congressional election are effectively uniform in where they’re from: Washington, D.C.

Only one of the 10 political action committees, super PACs, nonprofit groups or party committees that have urged voters to support or oppose Colbert Busch or Sanford is based in the Palmetto State, and it’s spent a pittance — just $20,000, a Center for Public Integrity analysis of federal spending disclosures through Monday indicates.

And of the more than 20 contractors and vendors these political powerhouses hired to produce television attack ads, print flyers or place telemarketing calls, all but one are located outside South Carolina. The others hail from seemingly everywhere but: North Carolina, Virginia, Alabama, Maryland, Minnesota, Ohio and California, among others, according to federal records.

So as many South Carolina voters hit the polls today to elect their newest 1st District congressional representative, they do so amid a torrent of out-of-state influence that’s increasingly commonplace following the Supreme Court’s Citizens United v. Federal Election Commission decision, which eliminated many restrictions on how outside political groups could raise and spend money to advocate for or against candidates.

Consider the Source

All the presidents' debt

By Dave Levinthal

Former House Speaker Newt Gingrich dubbed the national debt a "burden for our children for life."

Ex-Rep. Dennis Kucinich vilified Republicans for adding, by his calculations, $4 trillion to it.

Rep. Michele Bachmann, meanwhile, predicted debt will precipitate a future of "indentured servitude to foreign lenders."

What unites these and other presidential candidates is that they themselves are in debt. Campaign debt.

It's a dubious distinction shared by Democrats and Republicans, eccentric nonagenarians and White House occupants.

Such debt isn't really hurting anyone but creditors — certainly not the nation nor its creditworthiness.

But it is a reminder that despite candidates' soaring rhetoric about fiscal responsibility, they often fail to follow their own prescription for sound budgetary management amid the relentless rush to remain competitive with political rivals during election seasons that are longer and more expensive than ever.

Until the debts are paid, the federal government requires former candidates in most cases to keep their campaign committees open and, technically, active, meaning some of the indebtedness stretches back decades.

Following are the nation’s top presidential campaign deadbeats who still find themselves at least $100,000 in the red, according to a Center for Public Integrity analysis of disclosures filed with the Federal Election Commission:

1.) Former House Speaker Newt Gingrich, R-Ga.

Election year: 2012

Debt: $4,595,394

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Sen. Lindsey Graham, R-S.C.

Susan Walsh/AP

Graham's campaign collects bundle from lobbyists

By Michael Beckel

South Carolina Republican Sen. Lindsey Graham raised more money from lobbyists ahead of the 2012 election than any other member of Congress save one — an impressive feat considering he wasn’t on the ballot.

Roughly 10 percent of Graham’s $2.2 million haul, about $223,000, came from lobbyists acting as “bundlers,” a higher percentage than any other member. Bundlers raise money from friends and associates and deliver the checks in a “bundle.”

Only New Jersey Democratic Sen. Robert Menendez, who did face opposition in 2012, received more bundled campaign cash from lobbyists — about $227,100 — less than 2 percent of his total contributions, according to a Center for Public Integrity analysis of Federal Election Commission filings.

Graham’s bundlers include organizations and lobbyists whose positions Graham has supported. Among them are an energy giant, the film industry’s main trade association and a former U.S. ambassador who represents clients that would benefit from the construction of the Keystone XL pipeline.

Tops on the list, however, were GOP presidential nominee Mitt Romney and his “victory fund,” which accepted more than $17 million from lobbyist-bundlers. Six individuals raised at least $1 million apiece for Romney’s unsuccessful efforts, as the Center for Public Integrity previously reported.

In all, a dozen candidates and political committees raised at least $100,000 from lobbyist-bundlers ahead of the 2012 election, including the leadership PAC of Senate Majority Leader Harry Reid, D-Nev.

Money well spent?

According to FEC filings, Graham’s No. 1 lobbyist-bundler during the past two years was SCANA Corp., a South Carolina-based energy company that ranked among Fortune’s 500 largest as recently as 2011.

Consider the Source

Facebook CEO Mark Zuckerberg speaks at the company's headquarters in Menlo Park, Calif.

Marcio Jose Sanchez/AP

Gun groups, defense contractors buck downward trend in lobbying

By Dave Levinthal

Gun groups, defense contractors, oil companies and the world’s largest social network increased their spending on lobbying last quarter, bucking an overall downward trend, newly filed congressional disclosures show.

As debate over gun control raged in the Senate, the National Rifle Association, the National Shooting Sports Foundation and Mayors Against Illegal Guns each spent more on federal-level lobbying during the year’s first three months than in any previous quarter.

Raytheon, United Technologies and General Dynamics also fired up their lobbying machines from January to March, easily surpassing their spending from the same period one year ago as budget sequestration forced them to face down deep cuts to their bottom lines.

Northrop Grumman, at $5.8 million, posted its third biggest lobbying quarter in company history.

And Facebook’s $2.45 million in first-quarter lobbying expenses obliterated its previous quarterly record — $1.4 million during the final three months of 2012 — as it pressed lawmakers and governmental agencies on a variety of issues, from online advertising and privacy concerns to taxation and supporting visas and permanent residency for highly skilled foreign workers.

But those are exceptions.

About three-fifths of the nation’s 100 top lobbying organizations spent less on lobbying during the year’s first quarter than during the first quarter of 2012, a Center for Public Integrity analysis of congressional disclosure reports and Center for Responsive Politics data indicates.

Consider the Source

President Barack Obama calls out to people outside a campaign office in Chicago, Tuesday, Nov. 6, 2012, after a visit with volunteers on the morning of the 2012 election. (AP Photo/Carolyn Kaster)

Wealthy supporters fuel Obama nonprofit

By Dave Levinthal and Michael Beckel

Sixteen people accounted for nearly a quarter of the $4.8 million collected by Organizing for Action, the self-described "grassroots" nonprofit group affiliated with President Barack Obama that was created to push the White House’s policy agenda.

About 109,000 people gave money to the nonprofit from January through March, Organizing for Action announced today.

Donors from California ($568,215), New York ($363,893), New Jersey ($221,737), Florida ($84,010) and Massachusetts ($75,975) gave the most, according to a Center for Public Integrity analysis.

The top donor by far was Philip Munger of New York City who gave $250,000. Munger is a philanthropist, academic and long-time contributor to Democratic causes.

Next were John Goldman of Atherton, Calif., and Nicola M. Miner of San Francisco who both gave $125,000. Goldman is former chairman of Willis Insurance Service of California, Inc. a U.S. branch of a global insurance brokerage firm. Miner is the daughter of Bob Miner, co-founder of Oracle Corp. and wife of John Mailer Anderson, a novelist and screenwriter.

Of the top 16 donors, each who gave $50,000 or more, nine are Obama campaign bundlers — elite fundraisers credited with raising funds from well-connected friends, family members and associates, then delivering it in a "bundle." Organizing for Action bills itself as nonpartisan.

Among other top donors:

Consider the Source

IRS ‘outs’ handful of donors to Republican group

By Paul Abowd

A handful of donors to the nonprofit Republican Governors Association Public Policy Committee got a rude surprise when the Internal Revenue Service mistakenly outed them by making available part of a tax form that is supposed to be kept private.

The Center obtained a copy of the group’s Form 990 from a website that displays tax returns online. The return included one page of the “Schedule B” list of donors which the IRS does not require to be made public.

The total donations on the page make up a small percentage of the $5 million the nonprofit took in for calendar 2011, but also provide a rare if limited glimpse at who — or what — funds political nonprofits.

Among the donors:

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Writers and editors

John Dunbar

Managing Editor, Politics The Center for Public Integrity

John is director of Consider the Source, the Center's ongoing investigation of the impact of money on state and federal politic... More about John Dunbar

Michael Beckel

Reporter The Center for Public Integrity

Michael Beckel joined the Center for Public Integrity as a politics reporter in February 2012, where his focus is super PACs and the infl... More about Michael Beckel

Reity O'Brien

James R. Soles Fellow The Center for Public Integrity

Reity O’Brien is the Center’s 16th James R. Soles Fellow.... More about Reity O'Brien

Chris Young

American University Fellow The Center for Public Integrity

Chris Young is an American University Fellow currently working as a member of the Center’s Consider the Source team.... More about Chris Young

Dave Levinthal

Senior reporter The Center for Public Integrity

Dave Levinthal joined the Center for Public Integrity in 2013 to help lead its Consider the Source project investigating the influence of... More about Dave Levinthal

Ben Wieder

CAR Reporter The Center for Public Integrity

Ben Wieder is the Computer Assisted Reporter for the Consider the Sourc... More about Ben Wieder

Alison Fitzgerald

Senior reporter The Center for Public Integrity

Alison Fitzgerald is a finance and investigative reporter who joined the Center in April 2013 to help lead its financial reporting projec... More about Alison Fitzgerald

Alan Suderman

Reporter The Center for Public Integrity

Alan Suderman is a reporter for the Consider the Source project, where he focuses on the influence of money in state politics.... More about Alan Suderman

Dan Wagner

Reporter The Center for Public Integrity

Daniel Wagner came to the Center in 2013 from The Associated Press in Washington, D.C.... More about Dan Wagner