Consider the Source

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.

Consider the Source

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. 

Consider the Source

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:

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.

Congress

In the wake of the Newtown shooting, Congress is paying new attention to the online market for ammunition. AP

Internet ammunition sales draw scrutiny

By Fred Schulte

Proposed legislation to regulate online purchases of ammunition and high-capacity magazines is bringing new attention to a growing cyberspace ammo market that has operated with little government oversight.

Under federal law, firearms dealers must obtain a federal license and keep records of their transactions, but there’s virtually no federal regulation of ammunition suppliers or sales —though there was prior to 1986. Adults who currently want to stockpile large amounts of ammo—say 1,000 rounds of rifle fire or more— can buy it from dozens of web sites that specialize in bulk sales, often at low prices. Some sites also hawk magazines that fire up to 100 rounds without reloading, which critics argue have repeatedly been tied to deadly mass shootings and should be outlawed.

Some of the online sellers list no names of their owners, give only a post office box as their address and ship merchandise to customers using overnight couriers. Buyers can access a special search engine to compare inventory and prices at more than 30 dealers.

Nima Samadi, who follows the $3 billion- a-year small arms industry for the market research firm IBISWorld, said online ammo sales have been gaining in popularity “due to convenience and lower prices consumers can get by buying in bulk online.”

Legislative efforts

But some gun control advocates in Congress hope public outrage over the recent Newtown, Conn., massacre, in which 20 elementary school children and six school employees were killed, will prompt a closer look at these businesses and the firepower they can unleash.

Earlier this month, U.S. Rep. Carolyn McCarthy, D-N.Y., re-filed a bill from last summer that would put an end to online and mail-order sales by requiring that ammo transactions take place “face to face.”

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.

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