Daily Disclosure

New York City Mayor Michael Bloomberg AP

Daily Disclosure: Bloomberg’s super PAC backs candidates in both parties

By Rachael Marcus

A super PAC founded by New York City Mayor Michael Bloomberg reported spending $4.9 million on both Republicans and Democrats in Florida, Illinois and California, according to Federal Election Commission records filed Wednesday.

Independence USA PAC was formed Oct. 18, and voters won't know who its donors are until after the election. The group has spent $6 million so far this election.

The super PAC spent $2.5 million supporting the U.S. House run of California state Sen. Gloria Negrete McLeod, a Democrat; $1.8 million supporting the House run of former Orlando Chief of Police Val Demings, a Democrat; and $909,000 supporting Rep. Bob Dold, R-Ill., among other candidates.

The billionaire media mogul, now an independent, was a lifelong Democrat who switched to the GOP when he first ran for mayor.

He has pledged his super PAC will spend between $10 million and $15 million supporting state, local and congressional candidates who value bipartisanship and Bloomberg’s agenda, which includes supporting same-sex marriage, an overhaul of public schools, and his signature cause, gun control.

While Independence USA hasn't reported its donors, records show that a politically active nonprofit, Mayors Against Illegal Guns, is primarily supported by the mayor.

While Bloomberg has become increasingly involved in national politics this election, he had repeatedly declined to discuss the presidential election. He has expressed disappointment with both candidates. Today, he endorsed President Barack Obama.

Daily Disclosure

This Halloween-themed ad from the Congressional Leadership Fund opposes Rep. Kathy Hochul, D-N.Y. YouTube/Screenshot

Daily Disclosure: Super PACs aim to spook voters with Halloween ads

By Rachael Marcus

Outside spenders are getting in the holiday spirit with Halloween-themed ads designed to scare voters away from the targeted candidates.

A foggy cemetery, a haunted house and shadowy figures loom in House Majority PAC’s ad, as the narrator speaks in a quivering voice pretending to be a ghost, explaining why voters should be afraid of Rep. Francisco “Quico” Canseco, the Republican candidate running in Texas’ 23rd District.

The narrator suddenly cuts the ghost voice and says, “This isn’t a Halloween story, though it is scary. It’s Quico Canseco’s — a person and a story that fits right into Washington.”

One of the ads main claims — that Canseco owes hundreds of thousands in liens over unpaid payroll taxes and contracting fees — was reported by the San Antonio Express-News in July 2010.

Canseco disputes the claim. He said the bulk of what is owed is a result of disagreements between contractors and tenants on properties he owns and that he was only named because he is the landlord.

Canseco faces Democratic challenger Pete Gallego, a Texas state representative. House Majority PAC’s Halloween ad is part of a $415,000 buy in Texas’ 23rd District, a Republican-leaning swing district.

The race has seen $6.6 million in outside spending, according to the Center for Responsive Politics.

Conservative spenders are also using the holiday to their advantage.

Consider the Source

AP

Super PACs, nonprofits favored Romney over Obama

By Michael Beckel and Russ Choma

Super PACs and nonprofits unleashed by the Citizens United Supreme Court decision have spent more than $840 million on the 2012 election, with the overwhelming majority favoring Republicans, particularly GOP presidential nominee Mitt Romney.

An estimated $577 million, or roughly 69 percent, was spent by conservative groups, compared with $237 million spent by liberal groups, or about 28 percent, with the remainder expended by other organizations.

Of all outside spending in the 2012 election, more than $450 million was dedicated to the presidential election with more than $350 million spent helping Romney and about $100 million spent to help President Barack Obama.

The spending helped close the gap on Obama’s considerable fundraising advantage over Romney. As Election Day approaches, Romney and Obama are neck-and-neck in national polls.

The totals are from a joint analysis of Federal Election Commission data by the Center for Responsive Politics and the Center for Public Integrity. The Centers' analysis covers the period from Jan. 1, 2011 through Oct. 28, 2012, and does not include independent spending by the political party committees.

The final tally will be higher as spending continues to accelerate before Election Day.

Consider the Source

House candidates draw one-campaign super PACs

By Russ Choma

Candidate-specific super PACs, once exclusively associated with presidential hopefuls, have moved down-ticket and are now supporting candidates in congressional races this election.

Super PACs devoted solely to supporting a congressional candidate spent $28 million in the 2012 election with about $22 million going toward helping conservative candidates, according to a Center for Responsive Politics analysis of campaign data.

Federal Election Commission rules prohibit "coordination" between a candidate and an outside spending group, but many super PACs have gotten around those rules by hiring operatives who previously worked for the campaign.

The groups became prominent during the Republican presidential primary when each candidate had a supporting chorus in the form of a super PAC. The largest by far was Restore Our Future, which backs GOP presidential nominee Mitt Romney.

Restore Our Future raised nearly $133 million this election cycle, or one of every five dollars raised by super PACs.

By far the biggest player in the congressional candidate-specific super PAC world is the Texas Conservatives Fund, which spent $5.5 million on independent expenditures, all of it during the Texas GOP primary battle for U.S. Senate.

The money was spent in opposition to Ted Cruz, the tea party candidate, in hopes of electing Lt. Gov. David Dewhurst, who was considered the favorite of the Republican establishment. Cruz won the primary and is expected to easily win the general election.

Consider the Source

Nonprofits, shell corporations help shield identity of ad backers

By Russ Choma

In the 2012 election, nonprofits have been the preferred vehicle for donors who prefer to keep their identities secret. But with the right lawyers, super PACs, which are supposedly transparent about their donors, can accomplish the same feat.

Social welfare nonprofits, known as 501(c)(4)s by the Internal Revenue Service, file tax returns with the IRS. The names of their top donors are revealed to the IRS — but not to the public.

Super PACs, on the other hand, do report their donors. In some instances, though, those donors are nonprofits. Or the funds might come from shell corporations, which have passed through millions of dollars to the political organizations from unidentified donors in this election.

Aetna’s oops

Occasionally, the veil is lifted on the secrecy of these groups, sometimes inadvertently.

Insurance giant Aetna accidentally disclosed to insurance regulators earlier this year that in 2011, it had contributed $3 million to the American Action Network, a 501(c)(4) group that has spent $11 million targeting mostly Democratic candidates for Congress.

The company later scrubbed the disclosure from its filing and declined to elaborate on it despite demands from institutional shareholders for an explanation.

Consider the Source

Rep. Bobby Schilling, R-Ill. AP

Outside groups outspend candidates in 26 House races

By Viveca Novak

Editor's note: This story was also published by the Center for Responsive Politics, where Viveca Novak is the editorial and communications director.

Illinois' 17th Congressional District looks like it was drawn by an X-acto knife on crack, pitted with divots large and small and tendrils leading nowhere.

This misshapen plot of land, dubbed the "rabbit on a skateboard," is the result of a redistricting process that made it slightly more Democratic territory.

That means first-term Rep. Bobby Schilling, a Republican, doesn't exactly have a smooth glide-path to re-election. In fact, he’s in a fight — an expensive one. Through Oct. 17, Schilling and his Democratic opponent, Cheri Bustos together have spent $3.3 million on the race ($1.9 by Schilling, $1.4 million by Bustos).

But that's not the half of it. Another $6 million has been spent by outside groups, a cool $2.7 million more than the candidates themselves have laid out.

That makes the contest one of 26 House elections in which outside spending adds up to more than spending by the candidates, according to Center for Responsive Politics data.

Daily Disclosure

Rep. Scott DesJarlais, R-Tenn. Erik Schelzig/AP

Daily Disclosure: Tennessee congressman targeted in ads over alleged affair

By Rachael Marcus

Republican Rep. Scott DesJarlais of Tennessee was hit for the second time in as many weeks over an alleged affair he had with a patient, whom he reportedly pressured to have an abortion.

The second ad from the Democratic House Majority PAC, brings the super PAC’s buys in the race to $280,000, according to a press release.

The new ad, “Quotes,” features the narrator quoting from the Chattanooga Times Free Press’ endorsement of his Democratic opponent, Tennessee state Sen. Eric Stewart.

“DesJarlais is not only a hypocrite, but a fraud,” the editorial reads, citing that he claims to be an anti-abortion advocate yet allegedly encouraged his pregnant mistress a decade ago to undergo the procedure.

So far, House Majority PAC is the only outside spender in this race to invest significant funds. “Trust,” House Majority PAC’s first ad opposing DesJarlais, debuted Oct. 19 and cost $100,000, according to a press release.

The super PAC’s top donor is Newsweb CEO Fred Eychaner who has contributed $3.8 million. Eychaner has given $12 million to Democratic super PACs.

Daily Disclosure

Rep. Jim Renacci, R-Ohio AP

Daily Disclosure: Congressman gets help from Chevron-powered super PAC

By Rachael Marcus

After Rep. Jim Renacci, R-Ohio, cancelled more than $800,000 in network television advertising last week, the conservative Congressional Leadership Fund super PAC stepped in to fill the void.

Renacci, a Republican just finishing his freshman term, faces Rep. Betty Sutton, a three-term Democrat, in Ohio’s newly redrawn 16th District, which has attracted more outside spending than any other House race, according to the Center for Responsive Politics — more than $8.8 million.

Chevron Corp., ranked No. 3 on the Fortune 500 list of largest U.S. companies, made a $2.5 million contribution on Oct. 7 to the Leadership Fund, which is dedicated to electing Republicans to the House and Senate, as The Center for Public Integrity reported last week.

Renacci said the market had reached saturation and people were simply tuning out the ads. The New York Times reported that next to Las Vegas, the Cleveland area has seen more political ads than any other market.

This weekend’s “Hall of Fame,” the Leadership Fund’s newest anti-Sutton ad, is the second in a $1.8 million buy, according to a press release.

Super Donors

Donor profile: Republican Governors Association

By Alexandra Duszak and John Dunbar

Ranking: 10

Total contributions to super PACs: $9.8 million*

  • $9.8 million to RGA Right Direction PAC (pro-Republican), formerly known as the RGA Ohio PAC

Notable state-level contributions:

  • $8.3 million to the Florida Republican Party (2010)
  • $6 million to Pennsylvania Gov. Tom Corbett (2010)
  • $3 million to Texas Gov. Rick Perry (2010)

Background:

The Republican Governors Association’s appearance on a list of top donors to super PACs — formed to spend money on federal races — at first glance appears to be a mistake. But a close look at the Washington, D.C.-based “527” organization’s disclosure filings shows it is using super PACs to funnel funds into state races.

The recipient of the RGA’s generosity is a super PAC called “RGA Right Direction PAC.” The super PAC takes the money it receives from the RGA — which, as a 527, can accept unlimited funds from corporations and wealthy individuals — and spends it on state races.

In an October 2012 filing, Right Direction disclosed a $250,000 contribution to North Dakota’s Republican Gov. Jack Dalrymple, who assumed the job in 2010, when then-Gov. John Hoeven resigned to become a U.S. senator. In North Dakota, corporate donations to candidates are prohibited, but contributions from political action committees to candidates are unlimited, according to the National Conference of State Legislatures.

Consider the Source

AP

Secret money thrives in presidential, high-profile congressional contests

By Viveca Novak and Robert Maguire

Editor's note: This story was first published by the Center for Responsive Politics, where Robert Maguire is a researcher and Viveca Novak is the editorial and communications director.

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