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The Money Marathon

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The Money Marathon The Money Marathon Big Bucks and the Race for Governor of New York The First Leg: January through July 2001 The Money Marathon: First Leg is the first in a series of reports on campaign finance in the 2002 New York State governor’s race to be issued by the Public Policy and Education Fund of New York December 2001 We gratefully acknowledge the following foundations for their financial support of the Public Policy and Education Fund’s Clean Money, Clean Elections Project: J. Roderick MacArthur Foundation The Piper Fund The Orchard Foundation Public Campaign The Arca Foundation This report was written by Laura Braslow and Richard Kirsch of the Public Policy and Education Fund. Research for this study was conducted by Laura Braslow with the assistance of Steven Hunt and Liane Giunta. The design and layout for this report was provided by Laura Braslow with the assistance of Nicole Merrill. The Public Policy and Education Fund of New York is the research and education affiliate of Citizen Action of New York. To view this or any previous PPEF reports, please visit the Citizen Action website: www.citizenactionny.org. To order copies, contact: Public Policy and Education Fund 94 Central Avenue Albany, NY 12206 (518) 465-4600 Fax: (518) 465-2890 Email: ppef@citizenactionny.org Copyright 2001 Public Policy and Education Fund of New York Table of Contents Executive Summary i Introduction 1 Methodology 2 Findings 3 Overall 4 Pataki 11 Cuomo 15 McCall 19 Conclusions & Recommendations 22 Endnotes Executive Summary The Money Marathon Out of the Starting Blocks: The three candidates for The 2002 race for Governor in New York is shaping governor have all gotten off to a strong start in the up to be another one for the record books. In the first money marathon, but Governor George E. Pataki and half of 2001, the three leading candidates for gover- the Republican Party have taken a commanding lead. nor and the two major parties raised a total of $17.5 Pataki and the Republican Party raised twice as much million dollars. That's almost $100,000 per day, as Andrew Cuomo, who in turn raised twice as much including weekends and holidays. The candidates as H. Carl McCall. alone raised over $15.6 million. The vast majority of this money comes from large donations, made by In the first six months of the Governor's race, PACs and individuals who have a financial stake in Republican candidate Governor George Pataki raised the decisions made in Albany. $8,780,837. The New York State Republican Party raised an additional $1,344,335, for a total of The Money Marathon: First Leg is the first in a $10,125,172. This constitutes 58% of all money series of reports on campaign finance in the 2002 contributed. The Governor raised almost $50,000 a Governor's race to be issued by the Public Policy and day for his campaign, including weekends and holi- Education Fund. This study is based on days. contributions made in the first six months of 2001 to candidates for governor George Pataki, Andrew Democratic Candidate Andrew Cuomo, former Cuomo and H. Carl McCall, and to the Republican Secretary of Housing and Urban Development under and Democratic state parties. The study focuses on President Clinton, raised $4,620,133, or 26% of all the biggest givers - entities that gave $250 or more money contributed. That's a fundraising clip of about and individuals who gave $1,000 or more. Our $25,000 a day, every day. researchers sought to identify the interest or industry affiliation of contributors, and succeeded in New York State Comptroller and Democratic candi- coding 72% of individuals and 89% of companies, date for Governor, H. Carl McCall, raised who gave a combined $13.4 million to the $2,231,164, or 13% of all money contributed, a rate candidates and parties, 76% of the total dollars of about $12,000 a day. contributed. The study provides crucial details that fill out the headlines about how much money each Big Bettors: Individuals gave the bulk of the money candidate raises. We answer the following questions: donated -- $11,515,970, or 66% of the total money raised. The remaining $6,000,918, or 34%, came l Which candidate is relying most on big donors? from PACs. This is in sharp contrast to our findings l Which industries are funding the campaigns of in a previous PPEF study of giving in Legislative the 3 candidates? races. During the 1999-2000 legislative session, the l Who are the leading contributors to each proportion was reversed -- 67% of donations to campaign? legislators came from PACs, and only 33% was l Who are the contributors who are giving to donated by individuals. more than one candidate? l How much money is coming into the cam Most of the money came from a handful of large paigns from outside of New York? donors. The 390 individuals and PACs that gave l Are the candidates collecting more from PACs $10,000 or more gave 50% of all of the money or individuals? Employers or labor? contributed ($8,871,938). The Money Marathon: First Leg i Executive Summary Contributions of $1,000 or more made up 90% of the Out of State Bettors: The 2002 New York State money raised, $15,635,016. Contributions of less Governor's race is a high-profile election on the than $100 made up only 1% of the money raised, or national level, and all three candidates are drawing $214,538. support from large donors around the country. More than one-out-of-four dollars, 27%, ($4,701,766) The biggest single donor was New York City mayor- came from out of state. Even excluding the New York elect Michael Bloomberg, who gave $150,000 City metropolitan area, 20% of the money came from through his political campaign to the New York State outside of New York, led by the Washington, DC Republican party. The Cuomo-Kennedy family beltway and California. Florida and Texas donors followed closely with cumulative donations to also contributed heavily to the New York candidates. Andrew Cuomo of $133,200. Former Governor Mario Cuomo and his wife Matilda each gave the Winners From the Starting Gun: No matter who is maximum allowable contribution for both a primary elected the next Governor a handful of industries are and general election campaign, $45,400, for a total of sure to come out the winner. The same four industry $90,800 from Mom and Dad. Sister Maria Cuomo groups are the leading donors to all three candidates. and her fashion-mogul husband Kenneth Cole each Finance is the top industry for all the candidates, with gave the primary maximum of $14,700. identified donations of $2.6 million. Real estate, communications/electronics and lawyers fill out the Several large companies and their employees -- top four. Together these four industries account for Metromedia, Verizon, Entrust Capital, Seagram and 41% of the total donations to all campaigns and par- MBNA -- each gave $100,000 or more to the ties and 53% of the identified donations. candidates and parties. Governor Pataki: George Pataki, the incumbent Hedging their Bets: Many donors hedged their bets Governor of New York, has pulled out far ahead of by contributing to more than one candidate. Five his opponents in the first leg of the money marathon. unions gave to all three candidates. Twenty-one of Drawing on long-established relationships with the $10,000 donors gave to both incumbents, wealthy and powerful PACs and individuals built Governor Pataki and Comptroller McCall. And 10 of over his eight years as Governor, Pataki raised almost the biggest donors gave to both Democrats, Cuomo twice as much as his nearest competitor in the first and McCall. six months of the race, and shows no signs of slowing down. The Money Marathon: First Leg Candidate Summary Data Total $ Raised $ and % $10,000 # $40,000 Employer/ $ and % Out Raised per day Donors Donors Labor Ratio of State Pataki $8.8 $48,000 $3.4 million 13 18 to 1 $1.8 million million 39% 21% Cuomo $4.6 $25,000 $2.6 million 17 33 to 1 $1.6 million million 57% 35% McCall $2.2 $12,000 $1.1 million 2 10 to 1 $700,000 million 51% 32% The Money Marathon: First Leg ii Executive Summary Pataki raised $8.8 million dollars, almost $50,000 per By drawing on Clinton connections from his time in day, including weekends and holidays, all while Washington, using his father's long-established con- working full-time as Governor of New York. 39% of nections to New York elites and taking advantage of all of the money contributed ($3,394,820) to Pataki the doors opened by his in-laws, the Kennedy fami- came from 161 PACs and individuals who gave ly, Cuomo has built a substantial campaign chest. In $10,000 or more. Individuals gave the bulk of the the first leg of the money marathon, he raised twice money donated -- $5,578,312, or 64% of the total. as much money as the other Democratic candidate, The remaining $3,202,525, or 36%, came from H. Carl McCall. PACs. Cuomo raised $4.6 million dollars, or about $25,000 The Pataki campaign received $30,000 or more from per day, including weekends and holidays, at his 33 interests, led by Metromedia executives who full-time job, being a candidate for Governor. chipped in $114,000. Ten of the biggest Pataki con- Cuomo raised a huge amount of money from rela- tributors made their fortunes in real estate, including tively few PACs and individuals.
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