Consider the Source

Democratic super PACs start year with cash advantage

By Michael Beckel and Dave Levinthal

Update (Feb. 1, 4:30 p.m.): This story has been updated to include comment from Brad Martin of Fair Share Action.

Prominent super PACs are already preparing for their next act — the 2014 midterm elections — with Democratic-aligned groups leading the way.

Of the five super PACs with the most money in the bank through the end of 2012, all support Democrats, according to a Center for Public Integrity analysis of campaign finance reports released Thursday.

The United Auto Workers’ super PAC, launched last September, reported the most money in the bank at $8.9 million. The group spent almost $2.7 million ahead of Election Day.

Priorities USA Action, the main super PAC that backed the re-election of President Barack Obama, ranks second, ending the year with $3.7 million in the bank after spending $65 million on ads that pounded Obama’s GOP rival, Mitt Romney.

Rounding out the top five: the super PAC of the Service Employees International Union, which reported $3.2 million on hand; Fair Share Action, which reported $1.8 million; and American Bridge 21st Century, a Democratic-aligned super PAC that specializes in opposition research, which reported $1.3 million.

Consider the Source

When a political committee aired ads praising Proposition 32 in the 2012 elections, each advertisement included the disclaimer “with major funding by the American Future Fund.” Screengrab

Nonprofit spends big on politics despite IRS limitation

By Michael Beckel

Last fall, a cadre of wealthy business executives and conservative groups tried to sell California voters on new campaign finance reforms.

Couched in lofty rhetoric about the importance of cutting off money from special interests to politicians and other regulations favored by reformers, their proposal sought to ban the practice of using payroll deductions for political expenditures — a popular method of union fundraising.

Once alerted to the true nature of Proposition 32, the unions and political left rose up against it.

An innocuously named nonprofit, the Iowa-based American Future Fund, proved to be one of the biggest backers of the initiative, sinking more than $4 million into the ballot measure that voters ultimately rejected.

As a “social welfare” organization, the American Future Fund is not required to publicly disclose its donors. But to maintain its tax-exempt status under Sec. 501(c)(4) of the U.S. tax code, influencing elections cannot be its primary purpose.

The American Future Fund’s investment in California was part of a nationwide, political advertising spree in 2012 that exceeded $29 million, according to a Center for Public Integrity analysis of state and federal records.

That amount included more than $19 million on efforts designed to oust President Barack Obama, as well as millions more to oppose Democratic candidates for Congress and even two state attorneys general. Now the group is funding ads opposing Obama’s nomination of former Republican Sen. Chuck Hagel of Nebraska for defense secretary.

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About half of the year’s top 100 lobbying organizations showed an overall increase in spending for 2012. Ben Schumin/Wikimedia

Fiscal cliff, elections boost spending on lobbying

By Dave Levinthal

Congress’ fiscal cliff fiasco, a flurry of lame duck legislation and election-season politics drove some of the nation’s most powerful lobbying forces to double down on their governmental influence efforts late last year, newly filed reports show.

Such an uptick foreshadows what could be ever-more-aggressive lobbying on federal finances, taxation, energy and social issues like immigration and gun ownership as President Barack Obama enumerated in his inaugural address Monday.

The trend may end a prolonged lobbying spending slowdown largely prompted by Capitol Hill gridlock and a dearth of meaningful legislation receiving consideration during much of 2011 and 2012.

In all, about half of the year’s top 100 lobbying organizations spent more on lobbying in the fourth quarter of last year than in the third quarter. About half also showed an overall increase in spending for 2012, a Center for Public Integrity analysis of congressional disclosure reports and Center for Responsive Politics data indicates.

The U.S. Chamber of Commerce’s year-over-year lobbying spending skyrocketed more than 88 percent, from $66.4 million to more than $125 million, to easily lead all other organizations.

Prominent business and financial lobbies, meanwhile, rank among organizations that spent significantly more during the fourth quarter of 2012 than they did during the third quarter, including the National Association of Realtors ($15.4 million from $9.8 million), the Business Roundtable ($4.8 million from $4 million), JPMorgan Chase and Co. ($3.2 million from $1.4 million) the American Bankers Association ($2.1 million from $1.8 million) and Visa ($1.7 million from $1.1 million), records show.

Consider the Source

Video: Looking back on three years of 'Citizens United'

By Dave Levinthal and Sarah Whitmire

The Center for Public Integrity interviews Citizens United President David Bossie on the third anniversary of the Citizens United v. Federal Election Commission decision, which prompted major changes to the nation's campaign finance rules. Speaking from Citizens United's Washington, D.C., headquarters, Bossie says President Barack Obama is a "hypocrite" for embracing super PACs and outside political money after relentlessly criticizing the Citizens United decision.

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Bank of America, unions among newly named inauguration sponsors

By Dave Levinthal

Add Bank of America, Coca-Cola, FedEx and a collection of labor unions to the growing list of powerful lobbying forces underwriting the second inauguration of President Barack Obama — long a vocal critic of the influence industry and corporate political power.

The new inaugural bankrollers, the names of which the Presidential Inaugural Committee released this weekend, have together spent $124.3 million lobbying the federal government since Obama took office, a Center for Public Integrity review of federal disclosures shows.

Lobbying forces donating to Obama’s inaugural have spent nearly $283 million to influence the federal government since 2009 when including previously disclosed corporations, such as AT&T Inc., Microsoft Corp. and energy giant Southern Co.  — a figure likely to grow as the inauguration committee releases the names of more new contributors.

(Read: Corporate backers poured $160 million into lobbying since 2009.)

FedEx has spent more than $64 million on federal lobbying since 2009, while Coca-Cola has spent nearly $25 million and Bank of America more than $12.8 million, federal disclosures show.

The Forest County Potawatomi Community, a Native American tribe based in Wisconsin that operates casinos, also donated to the inaugural committee and has spent $1.5 million on lobbying during the past four years. Another inaugural donor, financial investment firm Ariel Investments, has spent $200,000.

Lobbying expenditures by newly disclosed union entities donating to the inaugural committee include:

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Expenditure Profile: Waterfront Strategies

By Reity O'Brien

 

Rank: 3

Clients’ expenditures: $81 million*

Website: None

Principals:

Raeylnn Olson (president)

Clients:

Background:

Consider the Source

Expenditure Profile: Mundy Katowitz Media

By Reity O'Brien

Rank: 4

Clients’ expenditures: $59 million*

Year founded: 2002

Website: munkato.com

Principals:

  • Carole Mundy (partner): Oversees the firm’s media planning and placement for multistate and national programs from its Roslyn, N.Y. office.  
  • Janet Katowitz (partner): A former operative with the Michigan Senate Democratic Caucus, Katowitz manages the firm’s day-to-day operations at its Washington, D.C., office.

Clients:

Background:

Founded in 2002, Mundy Katowitz Media (MKM) is a media buying firm that serves Democratic-aligned candidates and indepdent political spending groups. Its top client during the 2012 election was Priorities USA Action, the super PAC supporting President Barack Obama’s re-election.

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Expenditure Profile: American Media and Advocacy Group

By Reity O'Brien

Rank: 5

Clients’ expenditures: $27 million*

Principals: Unknown

Year founded: 2012

Website: None

Clients

Background:

American Media and Advocacy Group was a favorite media buyer for several top conservative Citizens United-related groups active in the 2012 election. 

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President Barack Obama and first lady Michelle Obama walk in the Inaugural Paradeduring the 57th Presidential Inauguration. AP

Obama inauguration sponsors spent millions influencing government

By Dave Levinthal

President Barack Obama has long vowed to “take on” federal lobbyists, swearing off their campaign cash, curtailing access to his administration, and lately, directing his Presidential Inaugural Committee to reject their donations.

“We've always relied on each other, not Washington lobbyists or corporate interests, to build our campaign,” he wrote to supporters after launching his re-election campaign.

While Obama has banned donations to his second inaugural celebration from lobbyists, no such prohibition exists on donations from the corporations that employ them.

Donate they have: Obama’s inaugural festivities Monday are bankrolled by several of the nation’s most powerful corporate lobbying forces, which have collectively spent at least $158.6 million on lobbying since the president first took office, a Center for Public Integrity review of congressional disclosures indicates.

(A new list of sponsors current through Saturday pushes the total to $283 million, please see update.)

The ceremony on the steps of the U.S. Capitol, perhaps fittingly, falls squarely on the third anniversary of one of the most notable political influence developments in U.S. history — the Supreme Court’s Citizens United decision — which Obama decried as a “huge victory” for special interests and their lobbyists and a “powerful blow to our efforts to rein in corporate influence.”

Consider the Source

Expenditure profile: Mentzer Media

By Alexandra Duszak

Rank: 1

Clients’ expenditures: $204 million*

Year founded: 1991

Principals:

  • Bruce Mentzer (founder)

Clients:

Pages

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

Paul Abowd

Reporter The Center for Public Integrity

Paul is money and politics reporter for the Center's Consider the Source project. He comes to D.C.... More about Paul Abowd

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