Consider the Source

Expenditure profile: Crossroads Media

By Alexandra Duszak

Rank: 2

Clients’ expenditures: $163 million*

Year founded: 2001

Principal:

Clients:

Biography:

Crossroads Media was founded by Michael Dubke, a longtime political player who is also president of the nonprofit group Americans for Job Security.

Consider the Source

The Supreme Court reinterpreted the law about how money from corporations and unions could be spent on campaigns. Super PACs and other outside groups made possible by the court's decision spent nearly $1 billion on advertising in federal races. J. Scott Applewhite/AP

Court opened door to $933 million in new election spending

By Reity O'Brien and Andrea Fuller

The Supreme Court’s Citizens United decision unleashed nearly $1 billion in new political spending in the 2012 election, with media outlets and a small number of political consulting firms raking in the bulk of the proceeds.

Spending records released by the Federal Election Commission show that throughout the 2012 election, corporations, unions and individuals that could take advantage of the high court’s ruling were responsible for about $933 million of the estimated $6 billion spent during the contest.

Nearly two-thirds of the new money — about $611 million — went to 10 political consulting firms, according to a Center for Public Integrity analysis. All but one of the top 10 recipients bought advertising in various media markets on behalf of super PACs and nonprofits. Eighty-nine percent of the expenditures made to the top 10 went to spots attacking candidates, the data show.

“For some in the industry, it has been a definite boon,” said Dale Emmons, president of the American Association of Political Consultants. “This election appears to have set a new benchmark on the amount of money that could be spent, because there were no limits on what could be spent.”

The 2010 Citizens United decision and a lower-court ruling allowed unlimited donations to super PACs and nonprofits, independent groups that used the funds primarily to fund ad campaigns.

Media buyers keep only a fraction of the total spending — usually 15 percent, according to Federal Communications Commission records, with the rest going to media outlets.

Consider the Source

Listen: Dave Levinthal on Sirius XM's 'Press Pool'

Center senior political reporter Dave Levinthal talks with "Press Pool" host Julie Mason on this was an interview with the Press Pool show on SiriusXM’s POTUS channel about the funding behind the presidential inauguration and federal lobbying in 2013.

Consider the Source

A Range Resources well site in Washington, Pa. The company is one of many drilling into the Marcellus Shale layer deep underground and "fracking" the area to release natural gas. AP

Export push reframes debate over fracking

By Alexandra Duszak

When Pennsylvanians agreed to a massive increase in natural gas drilling in the state, they were told that the economic benefit would outweigh any potential risk to the environment.

The drilling employs a controversial technology known as hydraulic fracturing, or fracking, that backers say will help the nation become energy independent and provide jobs and lower heating costs for Pennsylvanians.

But with gas prices collapsing thanks to an unforeseen glut, energy companies are pushing for permission to export the commodity to countries such as Japan and South Korea. Exports will lead to more drilling, more damage to roads and the environment, and higher, rather than lower, gas prices, say critics.

Pennsylvanians are “surprised, stunned, angry and upset” about the export push, said Delaware Riverkeeper Maya van Rossum. “And that’s whether or not they’re supportive of fracking.”

Some history

Fracking involves injecting millions of gallons of water, sand and toxic chemicals into holes drilled into underground shale deposits.

The technology, which became popular in Pennsylvania around 2008, enabled drilling companies to access enormous, previously unreachable supplies of natural gas — and brought hope to a state long-mired in a recession.

Despite its economic potential, fracking has a dubious environmental record. Exempt from the Clean Water Act, the Safe Drinking Water Act and the Clean Air Act, it has been blamed for contaminating residential wells and sparking explosions.

Consider the Source

The year of 'Consider the Source'

By The Center for Public Integrity

The 2012 election was the least transparent and most expensive presidential campaign of the modern era. The Center for Public Integrity's Consider the Source project exposed the shadowy political organizations that flourished in the wake of the Supreme Court’s Citizens United ruling, revealing the super donors and PACs behind the candidates.

The Supreme Court reinterpreted the law about how money from corporations and unions could be spent on campaigns. Super PACs and other outside groups made possible by the court's decision spent nearly $1 billion on advertising in federal races.

J. Scott Applewhite/AP

 Two conservative groups associated with former Bush adviser Karl Rove raised millions, much of it from undisclosed donors. The two groups, American Crossroads and Crossroads GPS, spent more than $175 million on 2012 campaigns.

Tony Gutierrez/AP

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An analysis by the Center for Public Integrity found that of $43.2 million raised by the pro-Romney super PAC Restore Our Future during the primary season, $20.5 million, or 48 percent, came from finance industry donors.

Super PAC Prosperity First spent more than $294,000 in less than a week in 2012 on ads aimed at defeating Democratic Rep. Tim Bishop (shown with wife Kathy in 2010) in New York's 1st District. The contest was an example of super PACs targeting House members. Despite the spending, Bishop defeated Republican candidate Randy Altschuler.

Kathy Kmonicek/AP

Rick Hill, the Republican candidate for governor of Montana, lost to state Attorney General Steve Bullock despite help from American Tradition Partnership, a nonprofit that bombarded voters with mailers slamming the Democrat. The Center for Public Integrity identified the group’s backers, which included groups dedicated to advancing “right-to-work” legislation in the states.

Matt Gouras/AP

 

The flood of spending by independent super PACs and nonprofits unleashed by the U.S. Supreme Court’s Citizens United decision helped Republican nominee Mitt Romney stay competitive in 2012, but it wasn’t enough to overcome President Barack Obama’s dominant fundraising machine.

AP

Consider the Source

Sheldon Adelson, chairman and CEO of the Las Vegas Sands Corp. Vincent Yu/AP file

Adelson gave $40 million to super PACs in final weeks of election

By Michael Beckel and Andrea Fuller

Billionaire casino magnate Sheldon Adelson and family poured nearly $40 million into the coffers of GOP-aligned super PACs In the final three weeks of the 2012 campaign, bringing their total giving to the groups to more than $93 million.

Super Donors

Donor profile: Joe Craft

By Michael Beckel

Ranking: 21

Total contributions to super PACs: $4.4 million*

  • $3.4 million to American Crossroads (pro-Republican), including $850,000 from his company, Alliance Management Holdings
  • $1 million to Restore Our Future (pro-Mitt Romney)

Federal hard money contributions:

Not including his super PAC contributions, Craft, along with his ex-wife, Kathy, has donated more than $800,000 to federal candidates, party committees, business PACs and other political committees since the 1998 election cycle, according to the Center for Responsive Politics, including:

  • $170,700 to the National Republican Senatorial Committee
  • $79,500 to the Republican Party of Kentucky
  • $71,600 to the National Republican Congressional Committee
  • $59,500 to the National Mining Association PAC
  • $57,000 to the Democratic National Committee
  • $50,000 to the Democratic Party of Kentucky
  • $50,000 to Alliance Resource Partners’ corporate PAC
  • $31,950 to the Republican National Committee

Corporate names: Alliance Holdings GP, L.P.; Alliance Resource Partners, L.P.; Alliance Resource GP, LLC; Alliance Management Holdings; Alliance Management Holdings III LLC; MAPCO Coal Inc.

Total spent on federal lobbying (2007-2012): No record of corporate spending at the federal level, but the company has lobbied in the states and is a member of trade organizations that lobby.

Lobbying issues: N/A

Biography:

Wealthy coal executive Joseph W. Craft III was one of Republican presidential candidate Mitt Romney’s finance co-chairmen in Kentucky, Craft’s home state.

Super Donors

Donor profile: William S. Rose (Specialty Group)

By Michael Beckel

Ranking: 6

Total contributions to super PACs: $12.1 million*

Federal hard money and 527 contributions: $0

Corporate names: Specialty Investments Group, Inc. (formerly known as Specialty Group, Inc.); Kingston Pike Development, LLC; and Americana RoseCraft, LLC

Total spent on federal lobbying (2007-2012): $0

Lobbying issues: N/A

Biography:

A new corporate mega-donor called “Specialty Group, Inc.” splashed onto the scene during the final stretch of the 2012 campaign. Between Oct. 1 and Oct. 11, the Knoxville, Tenn.-based company contributed nearly $5.3 million to the conservative super PAC FreedomWorks for America. By Election Day, that amount increased to almost $10.6 million.

Sixty-one-year-old attorney William S. Rose Jr., serves as Specialty’s CEO, president and general counsel. Rose’s $634,000 home — about a 30-minute drive from downtown Knoxville in a subdivision called Montgomery Cove — is listed as the company’s “principal office.”

Business records show that Specialty Group registered with the Tennessee Secretary of State on Sept. 26. On Nov. 28, the company changed its name to “Specialty Investments Group, Inc.”

In late October, another of Rose’s companies, Kingston Pike Development, LLC, donated an additional $1.5 million to super PAC FreedomWorks for America. Records show the company was created on Sept. 27, a day after Rose registered Specialty.

Super Donors

AFSCME

Donor profile: AFSCME

By Reity O'Brien

Ranking: 12

Total contributions to super PACs: $8.2 million*

  • $3.9 million to Workers’ Voice (pro-Democratic), formerly known as AFL-CIO Workers’ Voices PAC
  • $1 million to Majority PAC (pro-Democratic)
  • $660,000 to America Votes Action Fund (pro-Democratic)
  • $575,000 to American Bridge 21st Century (pro-Democratic)
  • $565,000 to House Majority PAC (pro-Democratic)
  • $530,000 to Moving Ohio Forward Action Fund (pro-Democratic)
  • $250,000 to Priorities USA Action (pro-Barack Obama)
  • $125,000 to Iowans for Intergrity in Leadership (pro-Democratic)
  • $100,000 to Fair Share Action (pro-Democratic)
  • $100,000 to Patriot Majority PAC (pro-Democratic)
  • $100,000 Committee to Elect an Effective Valley Congressman (pro-Howard Berman)
  • $54,900 to Working for Us PAC (pro-Democratic)
  • $50,000 to The American Worker (pro-Democratic)
  • $50,000 to Sierra Club Independent Action (pro-environment)
  • $50,000 to Ohio Families United (pro-Democratic)
  • $42,500 to Defend Our Homes (pro-Democratic)
  • $10,000 to Protecting America's Retirees (union-aligned)
  • $8,650 to Connecticut's Future PAC (pro-Democratic)
  • $5,000 to Young Democrats of America (pro-Democratic)

Notable federal hard money and 527 contributions:

Super Donors

American Federation of Teachers

Donor profile: American Federation of Teachers

By Paul Abowd and Alexandra Duszak

Ranking: 15

Total contributions to super PACs: $5.8 million*

  • $2 million to Majority PAC (pro-Democratic)
  • $1.5 million to Priorities USA Action (pro-Barack Obama)
  • $1.1 million to Workers’ Voice (pro-Democratic), formerly known as AFL-CIO Workers’ Voices PAC     
  • $700,000 to House Majority PAC (pro-Democratic)
  • $250,000 to DGA Action (pro-Democratic)
  • $100,000 to Ohio Families United (pro-Sherrod Brown)
  • $100,000 to Women Vote! (pro-Democratic)

Notable federal hard money and 527 contributions:

  • $10,000 to the Ohio Democratic Party

Notable state-level contributions:

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