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Iepacs and the Boston Mayoral Election Will Macarthur for Rivera Consulting | August 16Th, 2021

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Iepacs and the Boston Mayoral Election Will Macarthur for Rivera Consulting | August 16Th, 2021 Memo: IEPACs and the Boston Mayoral Election Will MacArthur for Rivera Consulting | August 16th, 2021 Introduction: As of this week, Independent Expenditure Political Action Committees have announced plans to back all five major candidates for Mayor of Boston. Three of these IEPACs — those supporting Mayor Janey and Councilors Wu and Campbell — have already made substantial expenditures, revealing insights into their funding models and campaign strategies. Together, these three committees reveal the breadth of spending that permissive campaign finance laws make possible. Each employs a different funding model — wealthy individuals, advocacy groups, and a union, respectively — and together, they have already spent nearly $1 million on TV, digital, and field. While none of these operations can coordinate directly with the candidate campaigns, their existence indicates that some voters will experience a saturation of communication. Regardless of the outcome at the ballot box this year, unlimited and loosely regulated spending is likely here to stay in Boston for cycles to come. IEPACs Which Have Made Expenditures This Year Environmental League of Massachusetts Action Fund Independent Expenditure Political Action Committee Supporting: Michelle Wu Reported receipts year to date: $80,000 Reported expenditures year to date: $46,882.01 Top 10 Donors Name Total Amount Environmental League of Massachusetts Action Fund $80,000 Top Expenditures Vendor Description Dates Total Amount Bluestrat Digital 8/12/21 $46,882.01 Narrative: ELM has long operated both 501(c)3 and 501(c)4 arms, and opened both a conventional PAC and an IEPAC in 2017. Typically they use both on fairly small expenditures — their PAC gave the legal limit of $500 to Michelle Wu this year, and the IEPAC has never made a lump-sum expenditure over $10,000, typically making small digital buys in legislative races. This year marks a departure from this strategy, as their 501(c)4 contributed $80,000 to their IEPAC to facilitate digital spending supporting Michelle Wu. It is difficult to ascertain through public disclosures where this money originated; it represents almost half of the (c)4’s assets reported to the IRS in 2019, so it may stem from these cash reserves or from “dark money” donors funneling money to the IEPAC via the (c)4 to avoid disclosure requirements. Better Boston Independent Expenditure Political Action Committee Supporting: Andrea Campbell Reported receipts year to date: $1,237,255 Reported expenditures year to date: $937,212 Top 10 Donors Name Occupation Employer Total Amount Eleanor Laurans Lecturer Harvard University $150,000 Andrew Balson Investment Services Cove Hill Partners $150,000 Reed Hastings CEO Netflix $125,000 Nonnie Burnes Board Member/Chair Planned Parenthood of MA $125,000 Leschly Stig Lecturer Harvard University $100,000 Hilary Gabrieli Attorney Self $55,000 Stephanie Spector Not Employed Not Employed $50,000 Bill Bloomfield Retired Retired $50,000 Chris Gabrieli Non-Profit Executive Empower Schools $45,000 Jim Walton Banking Arvest Banking $45,000 Top Expenditures Vendor Description Dates Total Amount LC Media LLC TV production and buys Weekly since 6/28/21 $750,784 Break Something Inc. Digital production/buys June 2021 $186,428 Narrative: Councilor Campbell’s PAC went up early and aggressively on the airwaves, dropping $140,000 per week on TV advertising for the campaign since late June. So far, this spending has been dedicated entirely to pro-Campbell messaging, while the Councilor herself has drawn sharp contrasts with Mayor Janey in earned media. The PAC has not filed since late July, implying a gap in their ad buy of at least a week in early August, but with at least $300,000 on hand and backing from wealthy national executives and Boston-based donors, look for them to make another buy in the weeks leading up to the preliminary as they try to help Councilor Campbell break into the top two. Hospitality Workers Independent Expenditure Political Action Committee Supporting: Kim Janey Reported receipts year to date: $659,394.79 Reported expenditures year to date: $9,121.57 Top 10 Donors Name Total Amount UNITE HERE, UNITE HERE Local 26, and associated funds $659,394.79 Top Expenditures Vendor Description Dates Total Amount Red Sun Press Flyers for canvassers 7/7/21, 8/11/21 $9,121.57 Narrative: Like the IEPAC supporting Councilor Wu, the Hospitality Workers IEPAC derives 100% of its revenue from committee-to-committee transfers; in this case, its funds come from funds associated with UNITE HERE and UNITE HERE Local 26. The IEPAC has brought in an eye-popping $660,000 from these unions, but has kept its powder dry on TV and digital so far. Instead, it has put its money in the field, spending $9,000 on canvassing materials so far. While the PAC has not quite matched the financial power of that backing Councilor Campbell, this spending pattern helps demonstrate the value of the union support Mayor Janey has earned; relatively small amounts of money spent on persuasion and turnout can do far more in the hands of committed volunteers. It remains to be seen whether they will preserve this strategy through the election — it is difficult to imagine even the most committed field program spending $650,000 on palm cards alone — or whether they make digital and TV buys or save a share of their war chest for future elections. IEPACs Which Have Not Made Expenditures This Year Massachusetts law requires very few disclosures from IEPACs which have not yet made expenditures, so it is difficult to determine the amount or origin of the money which will be spent supporting Councilor Annissa Essaibi George or John Barros. Still, OCPF filings and news reporting reveal two new IEPACs forming to back them in recent weeks. Additionally, the Boston Turnout Project IEPAC filed with OCPF in May, but has yet to make expenditures in the race; the Dorchester Reporter has reported that it is supporting Councilor Wu. Bostonians for Real Progress Independent Expenditure Political Action Committee Supporting: Annissa Essaibi George OCPF Filing Dorchester Reporter coverage Unified Boston Independent Expenditure Political Action Committee Supporting: John Barros OCPF Filing Dorchester Reporter coverage Finally, the Right to the City Vote Independent Expenditure PAC will likely spend in support of Right to the City Vote’s endorsed candidate, Mayor Janey. In 2019, they spent $14,760.64 on field-related expenses supporting nine city council candidates, including both Mayor Janey and Councilor Wu. Their coalitional model emphasizes direct voter contact; last cycle, they made 20,000 contact attempts across 10,000 unique voters. Conclusion: The full role of IEPACs will likely not be known until after the election, as many will likely surge resources in the pivotal final weeks, but even existing publicly available information makes it plain that the era of big money in Boston’s local elections has begun in earnest. Voters, community organizations, politicians, media, and our entire civic ecosystem must keep a watchful eye on these organizations to ensure that their financial power never exceeds the power of movements and voters at the ballot box..
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