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Pacs Unlimited: How Legislator Pacs Distort Maine Politics

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Pacs Unlimited: How Legislator Pacs Distort Maine Politics PACs Unlimited: How Legislator PACs Distort Maine Politics 1 The Money and Politics Project is a program of Maine Citizens for Clean Elections, a nonpartisan organization that has been working in the public interest to advocate for, increase public support for, defend and improve the Maine Clean Election Act and related campaign finance law since 1995. MCCE is a 501(c)(3) organization. www.MaineCleanElections.org The Money and Politics Project team includes Andrew Bossie, Ann Luther, Alison Smith, and John Brautigam. MCCE appreciates the efforts of many others whose contributions enhanced this report. MCCE welcomes your comments, questions, and suggestions. Please contact us at: Maine Citizens for Clean Elections P.O. Box 18187 Portland, ME 04112 207-831-MCCE [email protected] Money in Politics Project Report #1 Using publicly available charges of hypocrisy. But this • Legislators rise to leader- Executive Summary data, this report finds that is not just a problem for Clean ship after raising substantial vast sums of big money flow Elections. Privately financed amounts of private funds In the era of the Maine Clean Key Data through PACs controlled by candidates who abide by low, from those with an interest in Election Act, a majority of leg- $ MONEY IN legislators. These PACs exist 350 contribution limits in legislation. from Report #1 islators and legislative lead- for the purpose of advancing their own campaigns are al- ers rely on public financing to personal interests and party lowed to raise funds without • Leadership and caucus PAC 32 political action committees controlled by conduct their own campaigns. agendas, and big donors con- limit for their leadership and contributions from industry legislators raised over $12 million between 2002 Even those candidates who tribute to these PACs for the caucus PACs. Contributors groups far exceed contribu- and 2012. POLITICS $ purpose of shaping the leg- who reach the 350 contribu- run privately financed cam- tions from typical Maine islative agenda and assuring tion limit to candidate cam- paigns do so with strict individuals. The lack of contribution limits for PACs allowed contribution limits. This has access to legislative leader- paigns are only too happy ship. The legislative process to seek further influence by one contributor, the Republican State Leadership PROJECT greatly reduced the direct role • Industry groups make sys- Committee, to give a single contribution of whereby policy initiatives making separate, unlimited of money in determining who tematic and targeted contri- succeed or fail cannot be fully contributions to PACs con- $100,000. REPORT #1 wins and loses individual explained without under- trolled by those same private- butions to ensure access and races and has helped ensure standing the continuing role ly funded candidates. Propos- influence in the legislative The largest overall contributor was the PACs Unlimited: that our lawmakers are not of money in Maine legislative als to close these loopholes process. Republican State Leadership Committee, beholden to wealthy special elections. have been put forward in whose contributions totaled $796,386. How Legislator interest contributors. each of the last three legisla- • Legal PAC activity under- Over the ten years of this tures, but none has ever come mines the limits applicable The largest individual contributor was financier But there is a shadowy sys- study (2002 – 2012), more close to passing. to candidate campaigns and Donald Sussman, whose contributions totaled PACs Distort tem of campaign finance ac- than $12 million flowed distorts the legislative pro- $379,000. Maine Politics tivity operating in parallel to through PACs controlled cess in favor of corporate and the funding system for candi- by candidates and legisla- Conclusions other special interests. tors. That’s a lot of money in Tobacco giant Altria (Philip Morris) was the date campaigns, and legisla- PAC reporting rules provide Maine politics. During that largest corporate contributor at $122,576. tive “leadership” and “caucus” a degree of transparency to • PAC reform is necessary to period, legislators raised over PACs are at the heart of this legitimate political activity, reduce the impact of special $5 million from a handful The pharmaceutical industry made 596 but the information contained interest money on the Maine system. While fundraising for of major players with com- contributions totaling $442,980 as the legislature in this report raises serious legislature. candidate campaigns oper- mercial, vested interests, concerns about the ability of considered new regulations to protect ates under strict limits that each of whom gave over moneyed special interests to As Maine people work toward pharmaceutical consumers and reduce costs. keep big money from buying $60,000. Tobacco giant Altria have an outsize influence in a campaign system that re- influence or access to rank- (Philip Morris) was the larg- Maine elections and govern- duces special interest influ- Wealthy contributors had far more impact than and-file members, fundrais- est corporate contributor at ment. ence and puts people first, small donors, with eighty-seven percent of all ing by legislative leaders $122,576. Contributions from reform of the state’s PAC laws $ these major donors far exceed funds given in amounts larger than 350. through political action com- • Leadership and caucus PACs is essential. The wide-open contributions of any size from mittees is subject to virtually are viewed as crucial for each nature of these laws is out of $ individuals, and they dwarf Legislators raised 5,356,553 from just 152 major no restrictions. There is no party’s ability to keep or seize sync with the rest of Maine’s players in the commercial/labor sector. These limit on the amount of money contributions from Maine campaign finance system. people of ordinary means. the majority in their legisla- one contributor may give to a Until the problem of unlim- contributors – “the Heavy Hitters” – gave on Only 13% of all funds given to tive chamber. $ PAC, and corporate and union ited money flowing through average 60,000 each between 2002 and 2012. these PACs came in amounts legislator-controlled PACs contributions are permitted. • An elite group of leadership of $350 or less. is addressed, Maine people The players in health insurance, tax, and and caucus PACs raise mil- will be rightly concerned that regulatory reform efforts gave hundreds of The specter of legislative lions of dollars in large con- legislative leaders might be thousands of dollars to legislator PACs prior to leaders disavowing private tributions from people and beholden to large donors.. Small Contributions Contributions of $50 or less money for their own cam- businesses that often have a legislative battles on these issues. Constitute a Tiny Fraction of paigns while raising tens of vested interest in legislative Contributions between $50 and $350 thousands of dollars through outcomes. The Fundraising By Caucus PAC fundraising has led to and Leadership PACs Contributions of more than $350 2 3 Money in Politics Project Report #1 a caucus budget. Equally important, leadership’s PACs Unlimited: ABOUT THIS SERIES Regulation of Leadership and control over the agenda and caucus activities The Money in Politics Project is a series of Caucus PACs in Maine ensures their power and influence – they are the How Legislator PACs twelve reports about the role and effect of people to see when the need arises to exert con- money on Maine politics. The reports combine Legislative fundraising through political action trol over legislative outcomes. A leadership post Distort Maine Politics a review of publicly available campaign finance committees is subject to less regulation than may also be a springboard to higher office. data with on-the-ground analysis of how money candidate fundraising. There is no limit on the influences Maine’s elections, government, Since legislative leaders are elected by votes amount of money one contributor may give to within their respective caucuses, those who and public policy. Maine Citizens for Clean a PAC, and corporate and union contributions Elections launched this project because money 1 aspire to leadership find that building support are permitted. There are no expenditure limits among fellow legislators is imperative. in politics is an issue of vital concern to the on political action committees in Maine, except people of Maine, one that goes to the heart of our that a PAC may not give money to a candidate During a legislative session, legislators may democratic system. in amounts larger than the legal contribution support each other by co-sponsoring legislation 2 limit. or speaking in favor of another’s bill. Outside of the legislature there are two important ways for State law requires PACs to register and report leadership candidates to build support among on their activities, but those activities are not their peers – recruiting candidates to run in fu- paigns. This has greatly reduced the direct role restricted. Quarterly reports are required, plus ture elections, and supporting the campaigns of Background of money in determining who wins and loses pre-election and post-election reports for pri- those recruits and others in tight races. individual races and has helped ensure that our mary, general and special elections. State law In recent years control of the Maine Legislature lawmakers are not beholden to wealthy special requires PACs to report “the names and offices There are many low-cost ways a legislator can has been hotly contested. After many election interest contributors. sought by all candidates whom the committee cycles in which the Democratic Party could help a candidate, such as writing a letter to the supports, intends to support or seeks to defeat” editor, going door-to-door, and providing strate- count on a majority in the Senate or House (or But there is a shadowy system of campaign fi- (21-A M.R.S.A. § 1060), but in practice this infor- gic advice.
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