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: [email protected]

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 ii

n

$1.8 million 21% $1.6 millio 35% $700,000 32% $ and % Out of State : No matter who is

: The 2002 New York State York The 2002 New : 18 to 1 33 to 1 10 to 1 Employer/ Ratio Labor : George Pataki, the incumbent Pataki, the : George

13 17 2 # $40,000 Donors Out of State Bettors State Out of on the election race is a high-profile Governor's all three candidates are drawing national level, and More country. donors around the support from large dollars, 27%, ($4,701,766) than one-out-of-four York state. Even excluding the New came from out of area, 20% of the money came from City metropolitan DC Washington, led by the York, outside of New donors Texas Florida and beltway and California. candidates. York heavily to the New also contributed Gun the Starting From Winners of industries are elected the next Governor a handful same four industry The sure to come out the winner. all three candidates. groups are the leading donors to the candidates, with Finance is the top industry for all Real estate, identified donations of $2.6 million. lawyers fill out the communications/electronics and four industries account for these Together top four. campaigns and par- 41% of the total donations to all ties and 53% of the identified donations. Governor Pataki has pulled out far ahead of York, Governor of New money marathon. his opponents in the first leg of the relationships with Drawing on long-established and individuals built wealthy and powerful PACs Pataki raised almost over his eight years as Governor, in the first twice as much as his nearest competitor six months of the race, and shows no signs of slowing down.

$ and % $10,000 Donors $3.4 million 39% $2.6 million 57% $1.1 million 51%

$ Raised per day $48,000 $25,000 $12,000

: Many donors hedged their bets million $2.2 million Total Total Raised $8.8 million $4.6

The Money Marathon: First Leg McCall Cuomo Pataki

and McCall. the biggest donors gave to both Democrats, Cuomo Governor Pataki and Comptroller McCall. And 10 of McCall. Governor Pataki and Comptroller Hedging their Bets both incumbents, the $10,000 donors gave to candidates and parties. of Twenty-one unions gave to all three candidates. MBNA $100,000 or more to the -- each gave one candidate. Five by contributing to more than Metromedia, Verizon, Entrust Capital, Seagram and Verizon, Metromedia, Several large companies and their employees -- companies Several large gave the primary maximum of $14,700. and her fashion-mogul husband Kenneth Cole each and her fashion-mogul husband $90,800 from Mom and Dad. Sister Maria Cuomo $90,800 from Mom and Dad. Sister and general election campaign, $45,400, for a total of and general election campaign, $45,400, maximum allowable contribution for both a primary maximum allowable contribution Mario Cuomo and his wife Matilda each gave the Mario Cuomo and his wife Matilda Andrew Cuomo of $133,200. Former Governor Andrew Cuomo followed closely with cumulative donations to with cumulative donations followed closely Republican party. The Cuomo-Kennedy family The Cuomo-Kennedy Republican party. through his political campaign to the New York State York campaign to the New through his political elect Michael Bloomberg, who gave $150,000 who gave Bloomberg, elect Michael The biggest single donor was New York City mayor- York donor was New The biggest single $214,538. than $100 made up only 1% of the money raised, or up only 1% of the money raised, than $100 made money raised, $15,635,016. Contributions of less Contributions raised, $15,635,016. money Contributions of $1,000 or more made up 90% of the or more made up of $1,000 Contributions

Candidate Summary Data The Money Marathon: First Leg Executive Summary his iii By drawing on Clinton connections from his time in from on Clinton connections By drawing con- long-established his father's using Washington, of elites and taking advantage York nections to New by his in-laws, the Kennedy fami- the doors opened chest. In has built a substantial campaign Cuomo ly, money marathon, he raised twice the first leg of the as the other Democratic candidate, as much money H. Carl McCall. million dollars, or about $25,000 Cuomo raised $4.6 at including weekends and holidays, per day, full-time job, being a candidate for Governor. full-time job, being a candidate money from rela- Cuomo raised a huge amount of of The proportion and individuals. tively few PACs donors is signif- Cuomo's money coming from large other candidates, icantly higher than either of the he received is and the number of small donations of all of the money con- 57% significantly lower. and indi- 88 PACs tributed ($2,639,767) came from viduals who gave $10,000 or more. many distinct con- Although Pataki had 7.5 times as numerically more tributions as Cuomo, Cuomo has And although distinct donations of $10,000 or more. much money as Pataki raised almost twice as the amount that Cuomo, Cuomo raised 84% of or more. Pataki raised in donations of $10,000 As detailed above, Mom and Dad and the rest of the Kennedy-Cuomo family were together the leading Andrew Cuomo, with the Cuomo- donors to Kennedy family donating a total of $133,200. Cuomo also received big donations form the Belfer owners of Belco Oil & Gas, who gave a total family, to Cuomo (and $1,000 to McCall). of $116,092 Executives of Entrust Capital gave Cuomo $106,823. Many of the 32 interests who gave Cuomo $25,000 or more came from communica- tions and electronics firms, including $95,400 from Cable International and $80,000 from Wireless HBO founder Michael Fuchs and his wife, Kris.

: The former secretary of Housing :

The Money Marathon: First Leg has many campaign finance resources at his disposal. Andrew Cuomo Andrew Mario Cuomo York son of former Governor of New $423,000. and Urban Development under President Clinton and ($552,000). Health care interests followed with ing the Governor more than half-a-million dollars construction industry was on par with lawyers, giv- industries that rely on state policy and contracts. The industries that rely on state policy and contracts. But the Governor also received large amounts from But the Governor also received large munications and lawyers dominate giving to Pataki. Like the other candidates, finance, real estate, com- the New York metropolitan area. metropolitan area. York the New from donors who live outside of New York State and State York New from donors who live outside of his funds. Fifteen percent, $1.3 million, has come his funds. Fifteen percent, $1.3 raise $1.8 million from out-of-state donors, 21% of raise $1.8 million from out-of-state the country this year have allowed the Governor to the country this year have allowed Governor Pataki's frequent fundraising trips around Governor Pataki's frequent fundraising identified money. identified money. health professionals gave the Governor 15% of his health professionals gave the Governor given compared with 4% from labor. Legal and labor. given compared with 4% from labor; 80% of the Governor's identified money was labor; 80% of the Governor's identified Employers gave Governor Pataki 18 times more than Employers gave Governor Pataki organization and $40,000 from H.J. Kalikow and Co. and $40,000 organization Lawrence and Susan Kadish; $41,000 from the Durst Lawrence and Susan Kadish; $41,000 $51,000 from the Fisher brothers, $50,000 from $51,000 from the Fisher brothers, tributors made their fortunes in real estate, including tributors made their fortunes in real chipped in $114,000. Ten of the biggest Pataki con- of the Ten chipped in $114,000. 33 interests, led by Metromedia executives who 33 interests, led by Metromedia The Pataki campaign received $30,000 or more from The Pataki campaign PACs. PACs. The remaining $3,202,525, or 36%, came from The remaining money donated -- $5,578,312, or 64% of the total. money donated $10,000 or more. Individuals gave the bulk of the Individuals gave the bulk of $10,000 or more. came from 161 PACs and individuals who gave and individuals PACs came from 161 all of the money contributed ($3,394,820) to Pataki all of the money working full-time as Governor of New York. 39% of 39% York. as Governor of New working full-time day, including weekends and holidays, all while holidays, all weekends and including day, Pataki raised $8.8 million dollars, almost $50,000 per dollars, almost $8.8 million Pataki raised Executive Summary

Cuomo received the smallest proportion of contribu- McCall has many fewer large donors than the other tions from PACs, only 13% of his money compared two candidates. Whereas Cuomo had 17 donors in with 33% for Pataki and 29% for McCall. Employers the $40,000 plus range, and Pataki 13, McCall had gave 33 times more to Cuomo than did labor, $2.5 only two donor groups who contributed $40,000 or million compared with $77,000. Legal and health more. The largest McCall donor group is executives professionals donated 15% of the identified money to of Renaissance Technology Corp., in the finance Cuomo. industry. Partners in the law firm of Milberg Weiss Bershad Hynes & Lerach gave $59,000 and Black Andrew Cuomo has the greatest proportion of his Entertainment Television executives gave $35,000. support coming from out of state of any of the three candidates. Out of state donations totaled While McCall also relies heavily on employers for $1,587,738, or about 35% of all of the money Cuomo his money - 69% of the coded contributions - he raised. Cuomo received $1,179,362, 15% of his raised the highest proportion of his money (7%) from money, from out of New York State or the NY met- labor of any candidate. Legal and health profession- ropolitan area. als contributed 20% of the identified money to McCall. Carl McCall: The New York State Comptroller has a steep road ahead of him. Without the benefits of While McCall does not have the same national pro- being the incumbent governor, or the Kennedy- file as his competitors, he still received a large pro- Cuomo connections, McCall will have a tough time portion of his contributions from out of state donors. keeping up in the money marathon. As an added dif- Almost one-third (32%) of McCall's money, ficulty, Security and Exchange Commission regula- $707,025, came from out-of-state and 26% came tions prohibit him, as Comptroller, from accepting from out of the New York area. contributions from certain companies, specifically those in the municipal securities industry. There are Conclusions and Recommendations no equivalent restrictions on the Governor's ability to raise money from state contractors. The first election that candidates for public office must win is the wealth primary, the race for cam- In the first leg, McCall raised only half as much as paign dollars. That race is off to a fast start in the his Democratic competitor, Andrew Cuomo, and he campaign for Governor of New York, with $15.6 mil- trailed incumbent Governor George Pataki by a ratio lion dollars of fundraising by the candidates in the of almost 4 to 1. McCall has an edge on Cuomo and first six months of 2001, well before the election. The Pataki in labor support, which may bring him a boost race is certain to be the most expensive race for later in the campaign. But he will have to get more statewide office in New York history and may rival big-donor support if he hopes to compete financially the $91 million spent on the US Senate race in 2000. in the primary, let alone the general election. Raising tens of millions of dollars will be a marathon that lasts through the Democratic primary in During the first six months of 2001, McCall raised September and the general election in November. $2.2 million dollars, or about $12,000 per day, including weekends and holidays. Half (51%) of all The strongest runner in this marathon will be able to of the money contributed to McCall ($1,138,009) raise the most money from large donors. Small came from 93 PACs and individuals who gave donors just don't add up. Donors who gave less than $10,000 or more. $100 make up less than 1% of the money while the

The Money Marathon: First Leg iv Executive Summary

457 donors who gave $10,000 and more add up to But even if what all three leaders have proposed 42% of the money collected. became law, they would not break the domination of big, private money over public elections. In this race the incumbent Governor has a clear advan- As long as individuals running for public office tage, raising money from wealthy individuals and must rely on raising private money to get elected to entities that rely on New York State policy and busi- public office, candidates and our legislature will be ness contracts. With his Cuomo-Kennedy family con- the captive of well-financed interests. We need nections, Andrew Cuomo is even more reliant on large instead a system where candidates can compete by contributors, raising more than half his funds from showing broad support from voters instead of $10,000 plus donors. State Comptroller Carl McCall's narrow support from campaign funders. Clean difficulty in building a large donor base is why he lags Money Clean Elections reform, recently enacted in in fundraising. Why should his relative inability to four states, offers a way of doing so. raise money from the wealthy handicap his chances of being elected to Governor? Clean Money, Clean Elections reform begins to restore the principle of "one person, one vote" that Is this Any Way to Run a Democracy? lies at the core of our democracy. Clean Money, The patriots who founded our country had a vision - a Clean Elections offers candidates an alternative to vision of a government of, by and for the people. soliciting special interest money or spending Today, we have a government of, by and for the personal funds to run for office. In a Clean Money, wealthy special interests who fund campaigns. This Clean Elections system, candidates who demon- situation has arisen not out of any moral or ethical strate broad support in their districts, and who are lapse among elected officials. It has arisen because of willing to reject private money and limit their spend- the campaign system in the United States, which ing, receive a fixed and equal amount of campaign makes elected officials dependent on private donors to funding from a publicly financed fund. They are also pay their bills. eligible for additional public funds, if they are outspent by their opponents or targeted by inde- To sever the tie between special interest money and pendent expenditures. elected officials requires a fundamental reshaping of our campaign finance system. There is a growing Clean Money, Clean Elections reforms also include chorus for reform in New York, as there is around the many of the proposals made by the Governor, leg- nation. The question before us is what reforms will islative leadership and others in Albany, including: realize the goals of returning from the rule of "one better disclosure and reporting; lower contribution dollar-one vote" to "one person-one vote"? limits; an end to soft money; stronger enforcement; and measures to balance out independent expendi- The legislative leadership and Governor Pataki are tures. beginning to agree on some modest reform measures. The Assembly has approved legislation that would Clean Money, Clean Elections legislation has been lower campaign contributions, limit spending and pro- introduced in the New York Legislature by Senator vide partial public financing of campaigns. Governor David Paterson and Assemblyman Felix Ortiz Pataki supports better disclosure and lower contribu- (S.1638/A.2630). Some 16 members of the Senate tion limits. Senator Bruno announced his support in and more than 34 Assembly members have signed 2000 for better disclosure and lower contributions to on as sponsors. The approach is supported by a by party committees. some 80 citizen organizations representing reli- gious, senior, labor, environmental, tenant, student,

The Money Marathon: First Leg v Executive Summary vi . campaign reform. reforms was first Clean Money, Clean Clean Money, Clean Money, Clean Elections Clean Money, reform in October 2000 that found very reform in October

Clean Money, Clean Elections Clean Clean Money,

The Money Marathon: First Leg current system with end the Money Marathon in New York and replace the York end the Money Marathon in New vote and returned to one-person, one-vote. It's time to tion in New York turned away from one-dollar-one turned away York tion in New dates money can buy. It's time that candidates for elec- dates money can buy. New York voters deserve more than the best candi- York New candidates (54%) winning. new system, with more than half of the Clean Election new system, with more than half port ran under the challengers, Republicans and Democrats found that seven out of ten New Yorkers (71%) sup- Yorkers out of ten New found that seven Incumbents and (30%) participated in the program. PPEF commissioned a poll on PPEF commissioned Elections The poll Yrok. the reforms in New strong support for out of 151 winners est funding. In the House, 45 borhood groups. borhood without special inter- members (49%) won their seats women's, community, good government and neigh- government and good community, women's, In the Senate, 17 out of 35 special interest money. third of Maine's legislators ran without taking any third of Maine's legislators ran Clean Money, Clean Elections Clean Money, legislatures in 2000. One Arizona state Maine and limits on campaign contributions. limits on campaign contributions. were held for the first elections under this new system support campaign spending limits; and 80% support support campaign The Arizona. and Vermont states -- Massachusetts, equal amount of public funds for candidates; 88% public funds for candidates; equal amount of law in three other initiative, and has since become The poll also found that: 80% support a limited and that: 80% support a limited The poll also found in a 1996 ballot approved by the voters of Maine Introduction The Money Marathon: First Leg is the first in a series of reports on campaign finance in the 2002 The 2002 race for Governor is vitally important for Governor's race to be issued by the Public Policy the future of New York State. The person elected and Education Fund. This study is based on contri- will be responsible for leading New York through butions made in the first six months of the guberna- one of the most tumultous times in the state's histo- torial campaign to candidates for governor George ry. And money will, as always, play a huge role. In Pataki, Andrew Cuomo and H. Carl McCall, and the short term, it will effect who wins the election. includes data on contributions to the Republican and In the long term, the money our future Governor Democratic Parties. receives from big donors and influential industries cannot help but effect the decisions he makes in The study focuses on the biggest givers - entities office. that gave $250 or more and individuals who gave $1000 or more. Our researchers classified these In the first half of 2001, the three leading candidates larger givers by their industry or other interest, using for governor and the two major parties raised a total a methodology developed by the Center for of $17.5 million dollars. That's almost $100,000 per Responsive Politics, a non-partisan, non-profit day, including weekends and holidays. The candi- organization based in Washington, DC. The dates alone raised over $15.6 million. The vast classification system allows us to report on how majority of this money comes from large donations, much was given by various industries, such as made by PACs and individuals who have a financial finance, real estate, health care, and insurance. stake in the decisions made in Albany. Since money is essential for any political campaign, even when The Money Maraton: First Leg is the latest cam- there is no strict quid pro quo relationship between paign finance report issued by the Public Policy and a specific contribution and a specific policy, donors Education Fund. We are continually building and often have significant influence in the political refining a database of campaign contributions from process. And the amounts of money -- and, corre- interest groups and individuals to New York's spondingly, the amounts of influence -- will only elected officials. While we are only including a increase as we get closer to the 2002 elections. small portion of the information we have collected Thus, it is essential that we watch closely and in this report, we encourage members of the media remain vigilant, keeping our elected officals and public to ask us questions about contributions accountable to the citizens of New York, not only from interest groups, businesses and individuals. their campaign contributors. We are committed to compiling data and identifying Our researchers focused on the following questions: the interests that pay for our elected government, with the belief that this information will help people l Who are the major donors - PACs and better understand the forces at work in New York individuals - behind the three candidates for politics. Issuing reports is a large part of that, but governor? we will also do our best to answer specific inquiries. Please feel free to email us at l What are the key differences in the money [email protected], or call (518) funding the three candidates? 465-4600 x107. All of our studies are available through the Citizen Action of New York website: l What could these differences mean for the www.citizenactionny.org. election, and for New York?

The Money Marathon: First Leg 1 Methodology Contributions from individuals were assigned cate- gories based on the individual’s primary employer This study is based on campaign finance reports or occupation. For individuals who were not filed with the New York State Board of Elections, as employed, codes were assigned according the indi- required by law, encompassing all donations made vidual’s primary income source -- most often, the between January 12, 2001 and July 11, 2001. The industry/interest of a spouse. data used is comprised of 17,481 contributions made to the three candidates for governor (Pataki, Category codes, based upon the Standard Industrial Cuomo and McCall) and New York’s Democratic Classification (SIC) system, were assigned by using and Republican Parties. the ProCD database, which identifies SIC codes for businesses. For individuals, a multi-step research The New York State Board of Elections requires that process was needed to identify employers and occu- campaign committees file records of their contribu- pations. Unfortunately, New York State disclosure tions, and provides this data to the public on its law does not require that individuals be idenfied by internet site: www.elections.state.ny.us. (While by employer or occupation in campaign finance filings, law committees are only required to report contri- so researchers looked elsewhere to find the occupa- butions of $100 or more, all three candidates and the tions and employers of individual contributors. Democratic and Republican Parties generall report- Some contributors were identified using data from ed all of their contributions individually, down to $1 the Federal Elections Commission and the New donations.) Our research team downloaded the data York City Campaign Finance Board, both of which and attempted to identify the industry/interest of the require reporting of occupation and employer. A donations of $250 or more for entities and $1,000 or variety of internet seraches and other research more for individual contributors. The data is com- strategies were used to find the employer and occu- prised of all contributions to the three candidates’ pation of a significant number of individual donors. committees, the state Republican and Democratic Parties, as reported to the State Board of Elections Using this methodology, we were able to code on five contribution schedules.1 72.4% of individuals who gave over $1,000, and 89% of entities which gave over $250. These coded Working from the names of donors reported to the entities and individuals account for $13.4 million -- Board of Elections, the researchers used a system about 76% of the $17.5 million contributed overall. developed by Larry Makinson of the Center for Responsive Politics in Washington, DC to assign For the purposes of this study, we refer to all busi- each contribution one of 429 based upon the interst nesses, corporations, non-profit organizations, labor or industry represented by the donor.2 The contri- unions, law firms, partnerships, or other organized butions were then separated into 27 categories groups as PACs -- political action committees. For designed to encompass the major interests repre- some parts of our report, when we were able to iden- sented by the donors.3 These categories form the tify an employer for an individual contributor, that basis of many of the analyses of industry/interest contributor is included in the total donated by their giving in this report. employer. So, for example, if three employees of a particular company donated to a candidate, their For contributions from businesses, organizations contributions would be combined under the name of and political action committees, the entity’s name that company. was used to identify the industry and interest.

The Money Marathon: First Leg 2 In some parts of our study, we divide contributions into one of two categories -- individuals and PACs. Definitions of We did not rely on the information reported to the Industry/Interest Categories Campaign Finance Board to distinguish individuals from entitites, because that information is often not Agriculture: Farming, ranching, dairy, etc. reported correctly. Instead, we used a common Business Services: Consulting, advertising, PR sense rule -- an individual is any contributor with a Communications & Electronics: Telecommunications, media, first and last name. electronics Construction: Building, engineering, architecture Energy: Oil/gas/power production, power companies Finance: Banking, investing, credit companies Food & Beverage: Food & beverage production, restaurants, Findings supermarkets, wholesalers Government Employees: Police, administrators, government workers excluding appointed or elected officials We have divided our findings into four sections -- Gambling, Hotels & Resorts: Hotels, casinos, racing, one for the breakdown of contributions overall, entertainment venues, travel agencies including contributions to the state Republican and Health: Physicians, hospitals, pharmaceuticals Higher Education: Administrators and university professors Democratic Parties, and one section for each of the where the university is the primary employer three candidates for governor. Each section will Ideological*: Advocacy organizations which do not fit into any address and explore several issues which are essen- industry/interest category Insurance: Insurance companies tial to understanding the influence of money in the Labor Unions: Labor not included in more specific categories Governor’s race: (i.e., AFL-CIO is included, while police unions are in the Government Employees category.) Lawyers: Lawyers and law firms 1. How much money was raised? Lobbyists: Individuals and firms registered with the NYS 2. Which industries/interests gave the most? Temporary Commission on Lobbying. This category is not at 3. Which entities/individuals gave the most? all comprehensive -- many registered lobbyists are categorized by their industry if employed by a company or their firm 4. How much money came from large (usually lawyers or business services.) contributions vs. small contributions? Manufacturing: Industrial production not included in more spe- 5. How much money came from individuals vs. cific categories (i.e., construction materials would be included under Construction) entities? Military: Defense contractors and individuals whose primary 6. How much money came from employers vs. employment is in the military professionals and labor? Miscellaneous*: Individuals coded by occupation and employer where occupation/employer does not fit into any interest/indus- 7. What proportion of donations came from out try category of state, and which other states/regions were Party*: Transfers from campaign committees / party entities most strongly represented? Personal*: Family members Political*: Individuals primarily concerned with politics, including appointed or elected officials and party operatives In the section on each individual candidate, we will Real Estate: Real estate development & investment not simply consider the numbers, amounts and pro- Retail: Shops, malls & other retail outlets Retired*: Individuals identified but no longer employed portions, but will compare them to the total. This Tobacco: Tobacco farming, tobacco companies will allow comparison among the candidates, and a Transportation: Airlines, rail, automotive, shipping / freight discussion of the key differences between their financial supporters. * Categories not included in industry totals

The Money Marathon: First Leg 3 The 2002 Governor’s race is shaping up to be another one for the record books. With $17.5 million in contributions in the first six months alone, this election promises to easily overtake the $40 million plus raised in 1998. The bulk of this money is coming from a handful of large donors in several industries that have a significant stake in government. The financial industry is constantly seeking special tax treatment, real estate developers and construction companies regularly make millions on state contracts and urban development programs, the communications industry has profited from regulatory decisions made by the Overall Governor’s office, and professionals in the legal and business services fields are often hired as consultants and advisors to political candidates and government officials. The story so far -- the usual suspects are back, staking their claims for yet another piece of the pie. Overall Total Donations By Interest/Industry Total Money Donated: $17,516,839 Total Number of Donations: 17,353 Finance $2,615,608 Real Estate 1,772,381 Total Money Coded: $13,385,143 Communications & 1,585,407 Total Number of Donations Coded: 4,142 Electronics Lawyers 1,222,663 Total Industry/Interest Money Donated*: $12,567,226 Construction 775,782 Total Number of Industry/Interest Donations: 3,845 Health 701,266 Business Services 555,325 Insurance 535,150 Manufacturing 508,432 Percentage of Total Money by Industry Government 421,873 Industries Over $500,000 Employees Energy 375,297 Finance Food & Beverage 363,701 14% Party Transfers 345,715 Transportation 304,800 Gambling, Hotels & 245,914 Real Estate Resorts 10% Uncoded & Other Retail 169,610 43% Political 149,600 Communications & Retired 122,800 Electronics Personal 115,500 9% Lobbyists 93,144 Higher Education 74,108 Lawyers 7% Miscellaneous 69,002 Tobacco 69,000 Manufacturing Construction 3% Agriculture 60,850 4% Insurance Health Labor Unions ** 54,695 3% Business Services 4% Military 17,600 3% Ideological 10,000

* Excludes party transfers, political donations, personal donations, and ideological donations ** Includes only Labor Unions not coded by industry. For comprehensive numbers on Union donation, see the section on Employers vs. Labor The Money Marathon: First Leg 4 Overall 000 5 40,000 $ 47,900 43,000 Finance 45,400 ManufacturingFinance 45,000 Government 45,000 Employees HealthReal EstateReal Estate 42,500 42,200 Real Estate 42,200 Finance 41,500 Communications 40,000 Electronics & Government Government Employees Business Services 47,000 FinancePolitical 46,000 Business Services 45,500 45,400 Donor Industry/Interest Amount Dreyfus Mutual Fund (Jack J J (Jack Fund Mutual Dreyfus Dreyfus) Simona Ackerman R Jack Schneider Gunver Dynamic Polo) (Paul Technologies UnknownCapital Z Partners (Scott Delman) Citigroup/Citicorp/Citibank Finance UnknownNorth 45,400 Fork Bank PBA Officers Corrections 45,000 Hospitals 44, NY Greater Association Finance Co Development Pioneer Falcone) Noreen & (Michael Sons & (Peter, Resnick Jack Resnick) Burton & Scott 43,000 (Douglas Organization Durst D Durst) Beneficial Corp (Finn & Caspersen) Barbara H J Kalikow & CO Belizaire) (John Systems BEA Real Estate 40,000 AFSCME Dan Klores (Dan Klores Cuomo Communications, manager) campaign Gruss & Co(Martin & Gruss) Audrey New Treadwell, Alexander Republican State York Chairman Committee Marketting Telephone Worldwide Programs McKelvey) (Andrew Miguel Lausell Lawyers 45,400 Under New York State’s Campaign Finance Law, an individual Campaign Finance Law, State’s York Under New can donate up to $45,400 to a candidate for statewide office; $30,700 for the general election, and $14,700 if the candidate Corporations can donate up is running in a contested primary. These limits do not apply to donations to party hous- to $5,000. keeping funds, commonly known as “soft money.” 27 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 28 29 30 31 32 op Donors T 100,000 70,000 67,354 67,000 95,400 80,000 116,000 107,000 Political 50,000 Real EstateReal Estate 54,800 51,000 FinanceReal Estate 50,000 50,000 Real EstateFinance 80,000 Government Employees 70,900 Gambling, Hotels & Resorts Communications Electronics & Communications Communications Electronics & FinanceLawyers 85,000 Communications Electronics & 84,000 Energy Communications Electronics & 117,092 Communications Electronics & Donor Industry/Interest Amount

Richard & Lynda Sirota, Sirota, Lynda & Richard treasurer campaign Cuomo Gabelli Asset Management (Mario Gabelli) (Lawrence Fund Fiscal First Kadish) Susan & Milton I Levin Health 50,000 Mack-Cali (Ruth, David & & David (Ruth, Mack-Cali Mack) Sondra (Arnold, Brothers Fisher Kennety Richard, Anthony, Steven Fisher) & Global Crossing Global Bessemer Finance 56,000 Four Points Sheraton Alliance Capital Management Finance 67,200 VOTE/ COPE (NYS Un it edTeachers) Vornado Realty Trust Real Estate 69,300 Renaissance Technologies Technologies Renaissance Corp HBO (MichaelHBO & Kris Fuchs) RFR Realty (Aby & Liz Rosen) Milberg Weiss Bershad Bershad Weiss Milberg Lerach & Hynes Sutherland Capital Capital Sutherland Management (Ira & Diana Riklis) Seagram (Edgar Bronfman) (Edgar Seagram Beverage & Food MBNA CorporationWireless Cable International Finance 100,000 Verizo n Entrust Capital Finance 106,823 Metromedia Cuomo familyBelco Oil & Gas (Robert, Renee & Carolyn Laurence, Belfer) Personal 133,200 Bloomberg for Mayor Party $150,000 PACs and individuals donating $40,000 ordonating $40,000 individuals and PACs and/or candidates to gubernatorial more state parties.

The Money Marathon: First Leg 1 26 25 23 24

22 20 21

18 19 16 17 15 14 13 12 11 10 9 8 6 7

5 4

3 2 Overall 6 ($2000) e Overall Mor Pataki ($25,000), Cuomo ($25,000) Pataki ($5,000), Cuomo ($5,000) Cuomo ($25,000), McCall ($2,500) ACs and Individuals ACs and Pataki ($31,000), Dems ($500) Pataki ($15,550), McCall ($500), Reps ($250) Democrats ($11,000), Pataki ($2,500) Democrats ($11,000), McCall ($12,000), Cuomo ($5,000) Pataki ($27,500), Cuomo ($2,500), Dems ($2,000) McCall ($10,000), Reps ($10,000) Cuomo ($5,500), Pataki ($5,000) Cuomo ($14,700), McCall ($1,000) Pataki ($25,000), Cuomo ($2,000) McCall ($7,000), Democrats ($7,000), Pataki ($2,000) McCall ($7,000), Democrats ($7,000), Pataki Pataki ($5,000), Democrats ($5,000) McCall ($10,000), Dems ($5,400), Pataki ($1,000) McCall ($10,000), Dems Pataki ($21,000), Cuomo ($10,000) Pataki ($16,250), McCall ($10,000) Republicans ($21,500), Dems ($15,000), Pataki ($500) Republicans ($21,500), Dems ($15,000), Pataki Pataki ($32,200), McCall ($10,000) Cuomo ($10,000), Pataki ($1,000), Reps ($1,000) Cuomo ($10,000), Pataki Pataki ($10,000), Cuomo ($5,500) Pataki ($25,500), McCall ($16,000) Pataki ($25,500), McCall McCall ($10,000), Pataki ($6,000) Democrats ($65,000), Pataki ($5,000) McCall ($10,000), Pataki ($9,000) Pataki ($27,700), McCall ($1,750) Split Donors: P Split Donors: McCall ($10,000), Cuomo ($2,000) McCall ($8,500), Pataki ($5,500), Cuomo ($5,000) Dems ($4,000) McCall ($8,500), Pataki ($5,500), Cuomo ($5,000) Cuomo ($21,000), Pataki ($1,000), McCall ($250) Cuomo ($21,000), Pataki ($1,000), McCall Democrats ($25,500), Pataki ($500) Pataki ($9,500), Republicans ($5,000), McCall ($500) Pataki ($9,500), Republicans ($5,000), McCall Pataki ($5,000), Democrats ($5,000) Cuomo ($22,500), McCall ($1,000) McCall ($5,000), Republicans ($5,000), Democrats ($400) McCall ($5,000), Republicans Republicans ($30,000), Pataki ($1,000), McCall ($1,000) Republicans ($30,000), Pataki ($10,000), McCall ($1,000) Pataki ($7,000), Democrats ($5,000), McCall ($1,500) Pataki ($7,000), Democrats ($5,000), McCall Pataki ($29,300), Democrats ($1,000) Cuomo ($10,000), Pataki ($2,000) Pataki ($20,500) Reps ($6,000) Dems ($5,000) McCall ($2500) Cuomo Pataki ($20,500) Reps ($6,000) Dems ($5,000) McCall ($8,500), Cuomo ($5,000), Democrats ($3,000), Pataki ($500) McCall ($8,500), Cuomo ($5,000), Democrats Republicans ($10,000), McCall ($500) Democrats ($27,900), Pataki ($20,000) Democrats ($27,900), Pataki ($8,700), McCall ($3,000) : McCall ($7,215), Democrats ($5,000), Cuomo ($1,000), Pataki ($500) ($5,000), Cuomo ($1,000), Pataki : McCall ($7,215), Democrats Reps ($25,000), Dems ($10,000), McCall ($5,000), Pataki ($2,000) Reps ($25,000), Dems Republicans ($22,000), McCall ($2,000) Republicans ($22,000), Pataki ($6,500), McCall ($3,000), Democrats ($1,000) Pataki ($6,500), McCall ($3,000), Democrats Distinct Individuals and Entities Giving $10,000 or Giving $10,000 and Entities Distinct Individuals

ACs Hotel Trades Council: Hotel Trades Drive Political Fund: Young: Ernst & Geico Direct: Greater NY Hospitals Assoc: IBEW: Keyspan Energy: Davidoff & Malito: PAC: Laborers Posner: Elana Waksal Bradley Wechsler (Imax): Court Officers Association: Court Officers Law PAC: Local 6 PAC: District Council: Tenders Mason Morefar Marketing: Robert Belfer (Belco Oil & Gas): Associates): Belson Belson (Jerome Jerome John Castle (Castle Harlan): Robert Congel (Pyramid): Douglas D Durst (Durst Organization): Falcone: Michael & Noreen Jason Flom (Atlantic/Lava Records): Asset Management): Mario Gabelli (Gabelli (Metromedia): Garofalo Stephen Elzie Higginbottom (East Lake Mngmt): John Picotte (Picotte Companies): Bernard Rapoport: Engineering): (Liro Trotta Rocco Corrections Officers PBA: Corrections Medical Society of NYS: American Managers Inc: North Henry Buhl (Buhl Studio): P AFL-CIO AFSCME: Allstate Insurance: AT & T: Citicorp: PAC: Civil Service Employees NY Advantage PAC: NY Bankers PAC: NY District Council of Carpenters: Individuals Police Benevolent Association of NYC: Police Benevolent PAC: Pipe Trades Workers: Sheet Metal Workers: Soft Drink Brewery Local 100: Union Workers Transport (NYVote/Cope Teachers):

The Money Marathon: First Leg

two recipients gave the same amount to their top ent. Seven of the 49 split donors greater than the next largest recipi- greater than the next largest party a donation $5,000 or more donors (61%) gave one candidate or to the other(s). 30 of the 49 split more to one candidate or party than Most split donors gave significantly were split donors. donating $10,000 or more overall donors. 80% of the 20 labor PACs comprised 16 of the 33 PAC split comprised 16 of the 33 PAC common among labor PACs, which common among labor PACs, Split donations were most Democrats (McCall and Cuomo.) McCall,) and 10 gave to both both of the incumbents (Pataki and both of the incumbents (Pataki three candidates. 21 donors gave to three candidates. 21 donors gave ferent candidates, and 5 gave to all ferent candidates, and 5 gave to the 49 split donors gave to two dif- the 49 split donors gave to two date and the opposing party. 31 of date and the opposing party. different candidates, or one candi- candidates, different als and 33 PACs gave to at least two als and 33 PACs split donors. Of those, 16 individu- gave $10,000 or more total were 21 individuals and 53 PACs which 21 individuals and 53 PACs In the first leg of the governor’s race, In the first leg of the governor’s wealthy entities and individuals. wealthy entities and individuals. campaign finance contributions from examples of the mercenary nature of examples of the mercenary nature practice is one of the most blatant practice is one influence with whomever wins. This wins. influence with whomever they will be more likely to have they will be more to multiple candidates for office, to multiple candidates election. They believe that by giving election. more than one candidate in a given more than one candidate eggs in one basket, contribute to eggs in one basket, Many donors, loathe to put their Many donors, Split Donors Large Donations vs. Small Donations Individual Giving

During the first six months of 2001, the candi- Individuals gave the bulk of the money donated -- dates for governor raised a lot of money from $11,515,970, or 66% of the total money raised. The relatively few PACs and individuals. remaining $6,000,918, or 34%, came from PACs. Overall

The candidates raised $17.5 million dollars, or about This is in sharp contrast to our findings in our study of $100,000 per day (the exact amount is $96,246.) giving in Legislative races. During the 1999-2000 legislative session, the proportion was reversed -- l 51% of all of the money contributed 67% of donations to legislators came from PACs, and ($8,871,938) came from 390 PACs and only 33% was donated by individuals.4 individuals who gave $10,000 or more. Employers vs. Labor 41% of the money contributed ($7,260,511) came from 457 distinct donations of $10,000 Employers far outspent labor in campaign contribu- or more. tions. Percentage of Coded Contributions 357 of distinct donations of $10,000 or more came from 299 distinct individuals. Those Legal & Health Who Gave -- Percentage of C 299 individuals are .002 of 1% of all 18 mil Professionals Labor $612,365 lion New Yorkers, but they gave $5,616,507, 15% EmployersEmployers $9,893,757 or 32% of the total money raised. 73% Legal & Health Professional $2,062,803Other Other $816,2186% l Contributions of $1,000 or more made up 90% of the money raised, $15,680,816. Labor 6%

l Contributions of less than $100 made up only 1% of the money raised, or $214,538. l Labor unions donated $736,765 -- only 6% of the total coded.

Donations by Size of Contribution l Giving by employers (defined here as coded contributions from industries which are not “professional”* -- Lawyers, Lobbyists and $1,000-$9,999 Health**) totalled $9,730,557, or 73% of the 49% total coded contributions. This is over 13 times more than labor.

$10,000+ l Legal and Health professionals gave $2,052,403, 42% or 15% of the total coded contributions.

* Professionals are largely self-employed, and thus neither “employer” nor $100-$999 “labor” applies 8% ** Health here includes hospitals and other health care employers. Because $0-$99 the vast majority of donors coded under Health are in fact physicians and 1% other health professionals, this does not skew the results significantly.

The Money Marathon: First Leg 7 Out of State Giving States with over $100,000 in contributions

The 2002 New York State Governor’s race is a high- State Amount profile election on the national level, and all three New Jersey $759,970 Overall candidates are drawing support from large donors California 734,665 around the country. Washington, DC 603,842

l 2,455 of the 17,353 donations in the Connecticut 381,694 Governor’s race came from out-of-state Florida 366,589 contributors. Out of state donations totaled Texas 310,729 $4,701,766, or about 27% of all of the money Illinois 211,913 donated. Virginia 149,709 Pennsylvania 140,033 l Excluding the New York City metropolitan area (New Jersey and Connecticut), there were Massachusetts 108,951 1953 out of state contributions totalling Delaware 107,700 $3,560,102, or 20% of the money donated. Maryland 101,277

l 113 of the 457 distinct donations of $10,000 or more were from out of state donors. These Major Region Totals donations totalled $1,937,326, or 11% of the money raised. State / Region Amount Metro NYC (NJ + CT) 1,141,664 Metro Washington 854,828 (DC + VA + MD) CA 734,665 FL 366,589 TX 310,729

The Money Marathon: First Leg 8 Candidate Totals Comparison l The Republicans raised 58% of all money contributed. The Democrats raised 42% of all The three candidates for governor have all gotten off money contributed. to a strong start in the money marathon, but Governor Pataki and the Republican Party have Candidate Industry Comparison Overall taken a commanding lead. The bulk of money donated in the first six months of l In the first six months of the Governor’s race, the Governor’s race has come from a specific group Republican candidate Governor George Pataki of wealthy entities and individuals in four main cat- $8,780,837. The New York State Republican egories -- Finance, Real Estate, Communications & Party raised an additional $1,344,335, for a Electronics and Law. These four industries have total of $10,125,172. This constitutes 58% of long held significant power in politics, trading influ- all money contributed. ence and campaign contributions for preferential treatment in public affairs. And, if the money l Democratic Candidate Andrew Cuomo, former marathon continues in the direction it has been Secretary of Housing and Urban Development going, their influence will continue unchecked. under President Clinton, raised $4,620,133, or 26% of all money contributed. l The top four industries overall are the top four industries contributing to each of the l Democratic Candidate H. Carl McCall, New three candidates. York State Comptroller, raised $2,231,164, or 13% of all money contributed. l Finance is the top industry overall, and it is the top industry for each of the three l The Democratic Party raised $466,570, only candidates. 3% of all money contributed. l Donations from the top four industries l Pataki and the Republican Party raised (Finance, Real Estate, Communications & twice as much as Andrew Cuomo, who in turn Electronics and Law) comprise 41% if all raised twice as much as H. Carl McCall. money contributed in the governor’s race thus far. Their donations make up 40% of Pataki’s Candidate/Party Contributions total, 43% of Cuomo’s total, and 51% of Republican Party McCall’s total. 8% Cuomo l Of the top ten industry/interests overall, nine 26% are among Pataki’s top ten, nine are among McCall’s top ten and seven are among Cuomo’s top ten.

McCall However, despite the overwhelming dominance of Pataki 13% these four industries, there are some key differences 50% which distinguish the candidates’ bases of support. Democratic Party 3%

The Money Marathon: First Leg 9 Overall 10 McCall Finance Lawyers Estate Real & Communications Electronics Insurance Services Business Health Government Employees Retired Manufacturing tions comes from professionals and govern- professionals tions comes from ment. It does not appear on either of the other try. candidates’ top ten. industry with many individual donors, is industry with many individual donors, A much larger contribu- of McCall’s share 10% of Cuomo’s total. They make up 3% of total. 10% of Cuomo’s total. of McCall’s total and 4% Pataki’s Communications & Electronics, another #3 and #4 for Pataki #2, while it is Cuomo’s and McCall, respectively. Government Employees is McCall’s #6 indus- Government Employees is McCall’s is while it #2 industry, Lawyers is McCall’s both of the other candidates’ #4. They make up 9% of total. 14% of McCall’s contributions and 8% of Cuomo’s Pataki’s contributions. It is also worth noting that Insurance is It is #7 for Pataki, and #5 industry. McCall’s top ten. is not among Cuomo’s These three categories combined account for These three categories combined These industries combined account for Cuomo Cuomo Finance & Communications Electronics Estate Real Lawyers Services Business Health Manufacturing Energy (Family) Personal Political l Health Health Insurance Manufacturing Transportation Services Business Pataki Finance Estate Real & Communications Electronics Lawyers Construction en Industries, Overall and by Candidate Overall en Industries, Government Employees Government Employees Insurance Insurance Manufacturing Construction Health Services Business Lawyers Communications & & Communications Electronics Overall Overall Finance Estate Real T

$1,957,240, 22% of Pataki’s total. These three These three total. $1,957,240, 22% of Pataki’s total and industries make up 9% of Cuomo’s are on either of the other candidates’ top ten. while it is #2 industry, Real estate is Pataki’s #3 for the other two candidates. These three industries combined account for These three industries combined Transportation is his #9 industry, but neither is his #9 industry, Transportation A much larger contribu- of Cuomo’s share A much larger money of Pataki’s share Personal and Political are Cuomo’s #9 and #10 Personal and Political are Cuomo’s industry/interest categories overall, neither of top ten. which is among Pataki or McCall’s Business Services is Cuomo’s #5 industry, as #5 industry, Business Services is Cuomo’s compared to #6 for McCall and #10 for Pataki. tions come from Business Services and other tions come from largely individual/personal industry/interest categories. 10% of McCall’s total. 10% of McCall’s Construction is Pataki’s #5 industry and Construction is Pataki’s comes from industries directly connected to directly industries comes from most likely to are which infrastructure, large state contracts. receive

The Money Marathon: First Leg l l op 9. 10. 8. 5. 6. 7. 4. 3. 1. 2. T Pataki 11 15,500 85,610 58,850 39,500 34,600 31,668 29,000 18,000 17,600 y 554,305 111,610 552,232 423,106 284,200 228,838 226,600 207,825 199,548 192,201 186,955 120,844 627,481 1,178,408 $1,186,962 vs. Labor ** 9,750 est/Industr Inter Resorts Electronics Employees otal Pataki Donations by Donations otal Pataki T Finance Real Estate & Communications Lawyers Construction Health Insurance Manufacturing Transportation Business Services Government Food & Beverage Energy Party Transfers Retail Gambling, Hotels & Agriculture Lobbyists Retired Higher Education Tobacco Political Military Miscellaneous Labor Unions 38% Uncoded & Other $8,780,837 13,840 $6,590,193 2,388 $6,402,249 2,249 Governor George E Pataki Governor George 14% Finance 2% Business Services 3% Transportation Industries over $200,000 3% 13% Real Estate 3% Manufacturing 5% Health Ins urance 6% 6% 7% Lawyers Percentage of Total Pataki Money By Industry Total Percentage of Construction & Electronics Communications

The Money Marathon: First Leg

* Excludes party transfers, political donations, personal donations, and ideological donations For comprehensive numbers on Union donation, see the section on Employers ** Includes only Labor Unions not coded by industry.

Total Money Donated: Total Overall: Pataki

Total NumberTotal of Donations: Money Coded: Total NumberTotal of Donations Coded: Money Donated*: Industry/Interest Total NumberTotal Donations: of Industry/Interest no signs of slowing down. no signs of slowing the first six months of the race, and shows the first six months twice as much as his nearest competitor in twice as much as years as Governor, Pataki has raised almost Pataki has raised years as Governor, PACs and individuals built over his eight and individuals built over his PACs relationships with wealthy and powerful relationships with marathon. Drawing on long-established marathon. Drawing opponents in the first leg of the money opponents in the New York, has pulled out far ahead of his far ahead of has pulled out York, New George Pataki, the incumbent Governor of the incumbent Pataki, George Pataki Top Donors PACs and Individuals Donating $30,000 or more

PAC/Individual Industry/Interest Amount PAC/Individual Industry/Interest Amount 1 Metromedia Communications & $114,000 19 Port Authority PBA Government $ 33,200 Electronics Employees 2 Vornado Realty Trust Real Estate 69,300 20 Pioneer Development Real Estate 32,200 3 Alliance Capital Finance 60,700 Company (Michael & Management Noreen Falcone) 4 Bessemer Finance 56,000 21 AETNA Insurance 32,000 5 Mack-Cali (David, Real Estate 54,800 22 Chris-Craft Industries Communications & 31,700 Ruth & Sondra Mack) (Herbert & Anne Electronics Siegel) 6 Global Crossing Communications & 52,000 23 Welsh Carson Finance 30,700

Electronics Anderson & Stowe Pataki 7 Fisher Brothers Real Estate 51,000 24 Mandelbaum & Lawyers 30,700 (Arnold, Richard, Mandelbaum (David Anthony, Steven & Mendelbaum) Kenneth Fisher) 25 St. Andrews Realty Real Estate 30,700 (Jerome & Ester 8 Milton and Pamela Health 50,000 Ansel) Levin 26 Pratt Industries Manufacturing 30,700 9 First Fiscal Fund Real Estate 50,000 (Allison H Pratt) (Lawrence & Susan 27 Metropolitan Life Insurance 30,700 Kadish) 28 Podiatry PAC Health 30,700 10 Gruss & Co (Martin & Finance 46,000 29 Beneficial Corp Finance 30,000 Audrey Gruss) (Barbara Caspersen) 11 North Fork Bank Finance 43,000 30 Fred Drasner Communications & 30,000 12 Durst Organization Real Estate 41,000 Electronics (Douglas D Durst) 31 Michael Chasanoff Real Estate 30,000 13 H J Kalikow & Co Real Estate 40,000 14 Saul Partners Finance 38,400 32 Computer Associates Communications & 30,000 15 Phoenix Marine Construction 37,000 International Electronics 16 J. P. Morgan Chase Finance 35,000 17 Glenwood Real Estate 35,000 33 Duquesne Capital Finance 30,000 Management Management (Stanley 18 Cadwalader Lawyers 35,000 Druckenmiller) Wickersham & Taft Pataki and “Soft Money” Due to the “soft money” loophole in the Campaign Finance law, donors can make unlimited contirbutions to the party “housekeeping” fund, thus avoiding statutory donation limits. As the only Republican candi- date and the incumbent Governor, in addition to contributions to his own campaing committee, Pataki will get a significant portion of the money given to the state Republican Party. Soft money contributions include:

l $150,000 from Bloomberg for Mayor l $77,000 from Verizon, the telephone / l $100,000 from Edgar Bronfman of Seagram, telecommunications giant an alcohol company l $67,345 from Four Points Sheraton, a l $100,000 from MBNA, a credit card company hotel chain

The Money Marathon: First Leg 12 Pataki 13 15% 1% Other Professionals Legal & Health Health & Legal 4% Labor 80% centages based on coded contributions Employers or 15% of total coded contributions. the total coded contributions. contributions from industries which are not “professional”* -- Lawyers, Lobbyists and Health**) totalled $5,058,672, or 80% of the This is over 18 total coded contributions. times more than labor. Legal and Health professionals gave $965,892, Labor unions donated $283,300 -- only 4% of Labor unions donated $283,300 Giving by employers (defined here as coded Per 4 the vast majority of donors coded under Health are in fact physicians and other health professionals, this does not skew the results significantly. “labor” applies l l l Individual Giving Individual -- the bulk of the money donated Individuals gave The of the total money raised. $5,578,312, or 64% or 36%, came from PACs. remaining $3,202,525, to our findings in our study This is in sharp contrast races. During the 1999- of giving in Legislative session, the proportion was 2000 legislative of donations to legislators came reversed -- 67% by individu- and only 33% was donated from PACs, als. Employers vs. Labor campaign contri- Employers far outspent labor in butions to Pataki. * Professionals are largely self-employed, and thus neither “employer” nor * Professionals are largely ** Health here includes hospitals and other health care employers. Because 33% 2% $10,000+ $0-$99 11% $100-$999 otal T 54% $1,000-$9,999

39% of all of the money contributed 39% of all of the money contributed individuals. Those 118 individuals are .0006 Those 118 individuals. $7,523,818, 87% of the money raised by Pataki. 120 of these donations came from 118 distinct 118 120 of these donations came from but they Yorkers, of 1% of all 18 million New total money gave $2,381,300, or 27% of the raised by Pataki. 33% of the money contributed ($2,860,450) 33% of the money contributed ($2,860,450) of $10,000 came from 166 distinct donations or more. ($3,394,820) came from 161 PACs and 161 PACs ($3,394,820) came from individuals who gave $10,000 or more. Contributions of less than $100 made up only Contributions of $1,000 or more made up Contributions of $1,000 or more

2% of the money raised, or $207,461. This 2% of the money raised, or $207,461. total is made up of 7,721 distinct donations.

centage of Pataki

The Money Marathon: First Leg

l l l Per By Size of Contribution

Governor of New York. Governor of New $50,000 per day while working full-time -- as $50,000 per day while working exact amount is $48,246.) And he raised that And he $48,246.) exact amount is per day, including weekends and holidays. (The including weekends and holidays. per day, Pataki raised $8.8 million dollars, or about $50,000 Pataki raised $8.8 other candidates’, or overall. the total donations were less skewed toward large donations than the skewed toward large donations less were and individuals. However, his contributions However, and individuals. raised a lot of money from relatively few PACs relatively money from raised a lot of During the first six months of 2001, Pataki During the first Large Donations vs. Small Donations Donations vs. Large Pataki 14

285,939 191,814 178,907 130,966 $515,188 Amount

State Region Totals (Pataki) - of - tate Giving to Pataki tate Giving to State / Region

$10,000 or more were from out of state $10,000 or more were from out totalled $585,700, or These donations donors. 6% of the money raised. area (New Jersey and Connecticut), there were area (New Jersey and Connecticut), 981 out of state contributions totalling donated. $1,303,384, or 15% of the money Governor’s race came from out-of-state race came Governor’s totalled contributors. Out of state donations of the money $1,821,572, or about 21% of all donated.

31 of Pataki’s 166 distinct donations of 166 distinct 31 of Pataki’s Excluding the New York City metropolitan York Excluding the New 1,295 of Pataki’s 13,742 donations in the 13,742 1,295 of Pataki’s The Republican Party received only $12,500 in only $12,500 Party received The Republican

donations from labor, compared to $980,392 compared to $980,392 donations from labor, Employers outspent labor 78 from employers. to 1.

The Money Marathon: First Leg TX Metro Washington Metro Washington (DC + VA + MD) Metro NYC (NJ + CT) CA FL

l l l l Major Out donors around the country. donors around the national level, and is drawing support from large national level, and Governor Pataki is a high-profile politician on the is a high-profile politician on Governor Pataki Out of S Andrew Cuomo, former secretary of Housing and Urban Development under President Clinton and son of former Governor of New York Mario Cuomo, has many campaign finance resources at his disposal. By drawing on Clinton connec- tions from his time in Washington, using his father’s long-established connections to New York elites and taking advantage of the doors opened by his inlaws, the Kennedy family, Cuomo has built a substantial campaign chest. In the first leg of the money marathon, he raised twice as much money as the other Democratic can- didate, H. Carl McCall. But he will have to keep pulling in the big money to con- vince New York State Democratic party heavy hitters to back him in the primary. And, if he does defeat McCall in the primary, he will have an uphill battle to raise enough to compete with George Pataki, who will run unchallenged in the primary and who has already outraised Cuomo by a margin of almost 2 to 1. Andrew Cuomo

Overall: Cuomo Total Cuomo Contributions by Interest/Industry Total Money Donated: $4,620,133 Total Number of Donations: 1,812 Finance $670,296 Communications & 635,526 Total Money Coded: $3,296,403 Electronics Total Number of Donations Coded: 793 Real Estate 346,560

Lawyers 326,658 Cuomo Total Industry/Interest Money Donated*: $3,012,052 Business Services 249,750 Total Number of Industry/Interest Donations: 790 Health 146,835 Manufacturing 146,750 Energy 136,092 Percentage of Total Cuomo Contributions by Industry/Interest Personal 115,500 Industry/Interest Categories over $100,000 Political 71,100 Finance Construction 63,750 15% Insurance 55,700 Food & Beverage 48,500 Communications & Retired 46,500 Electronics Labor Unions 46,200 14% Miscellaneous 43,752 Uncoded & Other Retail 40,250 39% Lobbyists 38,894 Real Estate Gambling, Hotels & 33,700 8% Resorts Transportation 26,100 Lawyers Government Employees 22,500 7% Higher Education 11,190 Business Services Personal Party 6,500 Health 5% 3% Tobacco 5,000 Energy 3% Manufacturing Agriculture 2,000 3% 3% Ideological 1,000

The Money Marathon: First Leg 15 Cuomo Top Donors Donations Of $25,000 Or More

Donor Industry/Interest Amount Donor Industry/Interest Amount 1 Family members (Mario & Personal $133,200 17 BEA Systems (John Communications & $ 40,000 Matilda Cuomo, Maria Belizaire) Electronics Cuomo Cole & Kenneth 18 Interscope Records Communications & 39,681 Cole, Howard Maier and (Frederick Field) Electronics Margaret Cuomo, Edward 19 Conair Manufacturing 35,000 and Vicky Kennedy) 20 Whale Securities Insurance 30,700 2 Belco Oil & Gas (Robert, Energy 116,092 21 The Carlyle Group Finance 30,000 Laurence, Carolyn & (William & Joanne Renee Belfer) Conway) 3 Entrust Capital Finance 106,823 22 Wellsford Real Properties Real Estate 29,000 4 Wireless Cable Communications & 95,400 Inc. (Jeffrey Lynford) International Electronics 23 AOL Time Warner Communications & 28,068 5 Sutherland Capital Finance 85,000 Electronics Management (Ira & Diana 24 Gabelli Asset Finance 25,000 Riklis) Management (Mario 6 RFR Realty (Aby & Liz Real Estate 80,000 Gabelli) Rosen) 25 King World (Michael Communications & 25,000

7 Michael & Kris Fuchs Communications & 80,000 King) Electronics Cuomo Electronics 26 Richard Baker Unknown 25,000 8 Richard & Lynda Sirota Political 50,000 27 Verizo n Communications & 25,000 (Cuomo campaign Electronics treasurer) 28 Eldan Properties LTD Real Estate 25,000 9 Dan Klores (Dan Klores Business Services 47,000 (Marc Cohn) Communications, Cuomo 29 Thomas Yessman Unknown 25,000 campaign manager) 30 Daniel Stern Unknown 25,000 10 Telephone Marketting Business Services 45,400 31 Meyer Frucher Finance 25,000 Programs Worldwide (Philadelphia Stock (Andrew McKelvey) Exchange) 11 Miguell Lausell Lawyers 45,400 32 East Lake Management & Real Estate 25,000 12 Simona R. Ackerman Unknown 45,400 Development (Elzie 13 Dreyfus Mutual Fund Finance 45,400 Higginbottom) (Jack J Dreyfus) 14 Capital Z Partners (Scott Finance 45,000 and Cuomo families wield significant political and Delman) financial influence which will open many doors and 15 Dynamic Gunver Manufacturing 45,000 wallets. Technologies (Paul Polo) Andrew Cuomo is the only candidate to have Cuomo family members contributing: received campaign contributions from his family, l Mario & Matilda Cuomo $45,400 each and those contributions make up his largest l Maria Cuomo Cole individual or group contribution. The $133,200 & Kenneth Cole $14,700 each Cuomo received from his family only constitutes l Howard S. Maier $10,000 3% of his total, but it is only a small part of their l Ted & Vicki Reggie Kennedy $1,000 each assistance in his fundraising efforts. The Kennedy l Christopher Kennedy $1,000 The Money Marathon: First Leg 16 Large Donations vs. Small Donations Cuomo Donations by Size of Contribution $0-$99 During the first six months of 2001, Cuomo 0% $100-$999 raised a huge amount of money from relatively 5% few PACs and individuals. The proportion of Cuomo’s money coming from large donors is significantly higher than either of the other candidates, and the number of small donations he received is significantly lower. $10,000+ $1,000 - $9,999 52% 43% Cuomo raised $4.6 million dollars, or about $25,000 per day, including weekends and holidays. (The exact amount is $25,246.) $4,335,782 of the money came from PACs and individuals.

l 57% of all of the money contributed l Contributions of less than $100 made up less (2,639,767) came from 88 PACs and than half of 1% of the money raised, or individuals who gave $10,000 or more. $1,857. Cuomo received only 44 distinct donations of less than $100. This is

52% of the money contributed ($2,395,307) particularly striking when contrasted with Cuomo came from 170 distinct donations of $10,000 Pataki’s 7,721 donations of less than $100. or more. For every small donation received by These figures are significanly higher than Cuomo, Pataki has received 176. For every either of the other candidates. Only 33% of $1 Cuomo received from a small donation, Pataki’s money and 39% of McCall’s money Pataki has received $111. came from donations of $10,000 or more.

Although Pataki had 7.5 times as many distinct Individual Giving to Cuomo contributions as Cuomo, Cuomo has numerically more distinct donations of $10,000 or more. And Virtually all of Cuomo’s total contributions came although Pataki has raised almost twice as much from individuals -- $4,009,933, or 87% of the total money as Cuomo, Cuomo has raised 84% of the money raised. The remaining $610,200, or 13%, amount that Pataki has raised in donations of came from PACs. The proportion of Cuomo’s $10,000 or more. money coming from individuals is significantly higher than the other candidates (67% for Pataki and l Contributions of $1,000 or more made up 71% for McCall.) $4,392,672, 95% of the money raised by Cuomo. Again, this figure is higher than This is in sharp contrast to our findings in our study either Pataki (87%) or McCall (93%). of giving in Legislative races. During the 1999- 2000 legislative session, the proportion was reversed -- 67% of donations to legislators came from PACs, and only 33% came from individuals.5

The Money Marathon: First Leg 17 Cuomo

18

347,440 296,276 109,375 100,888 $408,376 Amount

tate Giving to Cuomo tate Giving State / Region $10,000 or more were from out of state $10,000 or more were from out totalled $660,272, or These donations donors. total. 14% of Cuomo’s Governor’s race came from out-of-state race came from out-of-state Governor’s 43% of all of contributors, comprising distinct donations. Cuomo’s raised. about 35% of all of the money Cuomo Cuomo area (New Jersey and Connecticut), received 665 out of state contributions the money totalling $1,179,362, or 15% of 46 of Cuomo’s 170 distinct donations of 170 distinct 46 of Cuomo’s 775 of Cuomo’s 1,812 donations in the 1,812 donations in the 775 of Cuomo’s or Out of state donations totalled $1,587,738, City metropolitan York Excluding the New

donated.

l l l l Metro NYC (NJ + CT) Metro Washington (DC + VA + MD) CA FL TX Major (Cuomo) Totals Region Out-of-State Out of S Out of of proportion Cuomo has the greatest Andrew of any of the out of state from his support coming candidates. three 15% Professionals Legal & Health Health & Legal 7% Other 2% Labor

centages Based on Coded Contributions centages Based received the fewest small contributions. received or 15% of the total raised. contributions from industries which are not contributions from industries which and “professional” -- Lawyers, Lobbyists Health*) totalled $2,476,474, or 76% of total coded contributions. For each $1 donated employers donated $33. by labor, Cuomo’s total coded contributions. total coded contributions. Cuomo’s 76% Cuomo raised the least from labor, and labor, Cuomo raised the least from Legal and Health professionals gave $510,377, Giving by employers (defined here as coded Giving by employers (defined here Labor unions donated $76,700 -- only 2% of Labor unions donated $76,700 --

Per

Employers The Money Marathon: First Leg l l l l labor candidates. of any of the three butions to Cuomo. Cuomo raised the least from butions to Cuomo. Employers dominated laborEmployers dominated in campaign contri- Employers vs. Labor Employers The New York State Comptroller has a steep road ahead of him. Without the benefits of being the incumbent governor or the Kennedy-Cuomo connections, McCall will have a tough time keeping up in the money marathon. As an added difficulty, Security and Exchange Commission regulations prohibit him, as Comptroller, from accepting contributions from certain companies, specifically those in the municipal securities industry. There are no equivalent restrictions on the Governor’s ability to raise money from state contractors.

In the first leg, McCall raised only half as much as his Democratic competitor,

Andrew Cuomo, and he trailed incumbent Governor George Pataki by a ratio of Comptroller H. Carl McCall almost 4 to 1. McCall has an edge on Cuomo and Pataki in labor support, which may bring him a boost later in the campaign. But he will have to get more big donor support if he hopes to compete financially in the primary, let alone in the general election. Overall Donations: McCall Total McCall Donations by Total Money Donated: $2,231,144 Interest/Industry Total Number of Donations: 1,339 Finance $489,850 Total Money Coded: $1,689,659 Lawyers 268,200 Total Number of Donations Coded: 562 Real Estate 193,700 Communications & 186,650 Total Industry/Interest Money Donated*: $1,624,509 Electronics Total Number of Industry/Interest Donations: 530 Insurance 84,500 Business Services 82,250 Percentage of Total McCall Donations by Industry/Interest Health 66,200 Contributions over $30,000 Government Employees 49,200 Government Retired 42,700 Employees Manufacturing Manufacturing 40,344 McCall 2% Retired 2% Construction 40,100 Health 2% Construction 3% 2% Tobacco 25,000 Higher Education 21,250 Business Services Uncoded & Other Labor Unions 21,165 4% 30% Insurance Retail 16,750 4% Gambling, Hotels & 13,500 Communications & Resorts Electronics Food & Beverage 11,000 8% Lobbyists 9,500 Party Transfers 8,450 Real Estate Miscellaneous 7,000 9% Ideological 5,000 Transportation 3,000 Energy 2,250 Lawyers Finance Political 2,000 12% 22%

The Money Marathon: First Leg 19 McCall 20 54% $1,000-$9,999 7% $100-$999 0% $0-$99 51% of all of the money contributed 51% of all of the money contributed $2,067,959, 93% of the money raised by $2,067,959, 93% of the money raised McCall. or than half of 1% of the money raised, distinct $4,980. McCall received only 144 This is three donations of less than $100. times more than the 44 small contributions small fraction made to Cuomo, but still only a 7,742 donations. of Pataki’s ($1,138,009) came from 93 PACs and 93 PACs ($1,138,009) came from individuals who gave $10,000 or more. 39% of the money contributed ($870,400) of $10,000 came from 57 distinct donations or more. Contributions of $1,000 or more made up Contributions of $1,000 or more made up less Contributions of less than $100 39% McCall Donations by Size of Contribution $10,000+ l l l Large Donations vs. Small Donations Donations vs. Large six months of 2001, McCall During the first relatively of money from raised a large amount individuals. and few PACs million dollars, or about $12,000 McCall raised $2.2 weekends and holidays. including per day, and indi- money came from PACs $2,166,014 of the viduals. 16,000 15,000 15,000 15,000 25,000 24,700 22,000 20,000 20,000 20,000 20,000 20,000 18,000 29,700 25,000 25,000 25,000 25,000 25,000 25,000 25,000 59,000 35,000 30,000 30,000 $70,900 Amount Amount Industry/Interest Government Employees Finance Lawyers Communications Electronics & Business Services Real Estate Real Estate Lawyers Finance Unknown Insurance Finance Finance Health Health Finance Business Services Tobacco Unknown Communications Electronics & Lawyers Communications Electronics & Finance Lawyers Communications Electronics & Unknown Unknown op McCall Donors op McCall T Donor Donations Of $15,000 OrDonations More

CWA DISTRICT ONE Ark Asset Management Berger Litowitz Bernsetin & Grossman Leonard Green & Partners Partners & Green Leonard Castle Harlan PBA Officers Corrections Oppenheimer Capital Oppenheimer Finkelstein Shirley General American Heitman Financial Financial Heitman B Buttenweiser Lawrence Rudin Management (Jack & RudinLewis Joan G Cooney (Children's (Children's G Cooney Joan Workshop) Television (Howard Lorber & Hallman Lorber) Pomerantz Haudek Block Grossman & Gross Liggett (Bennett Lebow) M Silverman IP*NETWORK (Christine Schwarzman) Ormes Capital Markets Capital Markets Ormes Co. Service Plaza Cleaning Llewellyn Werner Werner Llewellyn LLP Associates O'Connor Chemicals Agvar BET Renaissance Technologies Corp Milberg Weiss Bershad Lerach & Hynes

The Money Marathon: First Leg

26 25 24 23 22 21 19 20 18 16 17 15 14 13 12 11 10 9 8 6 7 5 4 3

2 1 Individual Giving to McCall Out-of-State Giving to McCall

Over 2/3 of McCall’s total contributions came from Carl McCall does not have the same national individuals -- $1,593,835, or 71% of the total money profile as his competitors, but he still received a raised. The remaining $637,390, or 29%, came large proportion of his contributions from out from PACs. of state donors.

This is in sharp contrast to our findings in our study l 339 of McCall’s 1,339 donations in the of giving in Legislative races. During the 1999- Governor’s race came from out-of-state 2000 legislative session, the proportion was contributors, comprising 25% of all of reversed -- 67% of donations to legislators came Cuomo’s distinct donations. from PACs, and only 33% came from individuals.7 l Out of state donations totalled $707,025, or Employers vs. Labor about 32% of all of the money McCall raised. McCall had the lowest ratio of donations from employers to donations from labor of all three l Excluding the New York City metropolitan candidates, but employers still dominated. area (New Jersey and Connecticut), McCall received 276 out of state contributions Percentage of Coded Contributions totalling $579,300, or 26% of the total money donated. Legal & Health Professionals l 20% 12 of McCall’s 57 distinct donations of $10,000 or more were from out of state Other donors. These donations totalled $177,500, 4% or 8% of his total.

Labor Employers Major Out-of-State Region Totals (McCall) McCall 7% 69% State / Region Amount Metro Washington $219,100 (DC + VA + MD) l Labor unions donated $119,765 -- about 7% of McCall’s total coded contributions. CA 137,450 Metro NYC (NJ + CT) 127,725 l Giving by employers (defined here as coded TX 73,750 contributions from industries which are not FL 59,400 “professional” -- Lawyers, Lobbyists and Health*) totalled $1,169,844, or 69% of the total coded contributions.

l Legal and Health professionals gave $343,900, or 20% of the total coded contributions. This is the highest proportion of any of the three candidates.

The Money Marathon: First Leg 21 Conclusion 22 $10,000 or more. And although Pataki raised almost And although or more. $10,000 raised as Cuomo, Cuomo much money twice as of that Pataki raised in donations 84% of the amount $10,000 or more. in build- Carl McCall's difficulty Comptroller State fundraising. donor base is why he lags in ing a large two contributors of $40,000 plus McCall has only the Governor and 17 for Cuomo. compared to 13 for relative inability to raise money Why should his chances of being from the wealthy handicap his elected to Governor? next Governor of Regardless of who becomes the it is clear that a small number of big York New -- finance, The same four industries donors will win. and lawyers real estate, communications/electronics candidates and can -- are the top donors to all three well represented in be sure that their interests will be Albany. a Democracy? to Run Way Any Is this had a vision - The patriots who founded our country and for the people. a vision of a government of, by of, by and for the we have a government Today, This campaigns. wealthy special interests who fund moral or ethical situation has arisen not out of any It has arisen because lapse among elected officials. which of the campaign system in the United States, dependent on private donors makes elected officials to pay their bills. do not make any political most of whom Voters, The exchange of large contributions, feel left out. sums of money between donors and candidates amplifies the viewpoints of donors and special inter- ests and undermines voters' faith in elections, gov- the sys- ernment, and political participation. Further, tem reduces electoral competition. Fewer good peo- because they don't want to spend ple run for office donors for the time that is required to court large Those that do run are handicapped their campaigns. by an uneven playing field, where the advantage

The Money Marathon: First Leg

Cuomo has numerically more distinct donations of 7.5 times as many distinct contributions as Cuomo, lion, from $10,000 plus donors. Although Pataki had lion, from $10,000 plus donors. donors, raising more than half his funds, $2.6 mil- Andrew Cuomo is even more reliant on large With his Cuomo-Kennedy family connections, With infrastructure. struction firms that benefit from state investments in tions/electronics and lawyers. It also includes con- to all candidates: finance, real estate, communica- donors includes the four major industries that give raised by the Governor. Pataki's wide base of large raised by the Governor. or more made up $7.5 million, 91% of the money $10,000 and more. Pataki donors who gave $1,000 Governor Pataki raised $2.8 million from donors of Governor Pataki raised $2.8 million business contracts. In the first six months of 2001 business contracts. In the first six and entities that rely on New York State policy and State York and entities that rely on New advantage, raising money from wealthy individuals advantage, raising money from In this race the incumbent Governor has a clear In this race the incumbent Governor 42% of the money collected. 457 donors who gave $10,000 and more add up to 457 donors who gave $10,000 and $100 make up less than 1% of the money while the $100 make up less than 1% of the donors just don't add up. Donors who gave less than donors just don't add up. Donors raise the most money from large donors. Small raise the most money from large The strongest runner in this marathon will be able to The strongest runner in this marathon the general election in November. the general election in November. through the Democratic primary in September and through the Democratic primary millions of dollars will be a marathon that lasts millions of dollars will be a marathon York's US Senate seat in 2000. The race for tens of US Senate seat in 2000. York's and may rival the $91 million spent on for New and may rival the $91 million most expensive state-wide race in New York history York race in New most expensive state-wide well before the election. The race is certain to be the The race is certain well before the election. million dollars raised in the first six months of 2001, million dollars raised campaign for Governor of New York, with $15.6 York, of New campaign for Governor paign dollars. That race is off to a fast start in the to a fast start in off That race is paign dollars. must win is the wealth primary, the race for cam- the wealth primary, must win is the The first election that candidates for public office The first election Big Money Takes the Lead Big Money Takes Conclusions & Recommendations Conclusions goes to the candidate with the best access to cash, the captive of well-financed interests. We need rather than the candidate with the most experience or instead a system where candidates can compete by the best ideas. showing broad support from voters instead of nar- row support from campaign funders. Clean Money How to Break this Connection? Clean Elections reform, recently enacted in four To sever the tie between special interest money and states, offers a way of doing so. elected officials requires a fundamental reshaping of our campaign finance system. The question before us Clean Money, Clean Elections reform begins to is what reforms will realize the goals of returning restore the principle of "one person, one vote" that from the rule of "one dollar-one vote" to "one person- lies at the core of our democracy. Clean Money, one vote"? Clean Elections reform offers candidates an alter- native to soliciting special interest money or spend- There is a growing chorus for reform in New York. ing personal funds to run for office. Under Clean The Assembly Speaker, Sheldon Silver, emphasized Money, Clean Elections reform, candidates who his support for reform this winter by making a rare demonstrate broad support in their districts, and appearance on the Assembly floor to argue for legisla- who are willing to reject private money and limit tion he sponsored to provide $2 dollars of matching their spending, receive a fixed and equal amount of public funds for every $1 of private funds, limit campaign funding from a publicly financed fund. spending, end soft money and enact various other They are also eligible for additional public funds, if reforms. The legislation passed the Assembly by a they are outspent by their opponents or targeted by vote of 93-46. independent expenditures.

The Senate Majority Leader, Joseph Bruno, respond- PPEF commissioned a poll on Clean Money, Clean ed that there was "zero support" for public financing Elections reform in October 2000 that found very in the Senate. But the most vulnerable member of his strong support for the the reforms in New York. The Republican majority, Roy Goodman of Manhattan, poll found that seven out of ten New Yorkers (71%) who won reelection by a few hundred votes in support Clean Money, Clean Elections campaign November 2000, is sponsoring a 4-1 match bill, mod- reform. The poll also found that: 80% support a lim- eled after New York City's law. A Republican mem- ited and equal amount of public funds for candi- ber from Long Island, Jim Lack, has sponsored a 2-1 dates; 88% support campaign spending limits; and matching plan. 80% support limits on campaign contributions.

Governor Pataki is on record supporting major Clean Money, Clean Elections (CMCE) reforms

reforms including: scaling back New York's very high are designed to accomplish the following goals: Conclusion campaign limits; banning soft money; improving dis- closure and beefing up enforcement, although he l Reduce and limit campaign spending. CMCE opposes public financing. The Governor's proposal, sets strict spending limits, and prevents the made 1999, was introduced as legislation in June of extraordinarily high amounts spent on recent 2001. campaigns for Governor and some legislative races. Effective reform must end the money marathon. As long as candidates must rely on raising private money to get elected to public office, elected officials will be

The Money Marathon: First Leg 23 Conclusion 24 Clean Money, . The first elections under this new system were held this new system elections under The first in 2000. Arizona state legislatures for the Maine and legislators ran without taking One-third of Maine's 17 out of In the Senate, money. any special interest won their seats without special 35 members (49%) In the House, 45 out of 151 win- interest funding. in the program. ners (30%) participated and challengers, Republicans Incumbents and under the new system, with more Democrats ran candidates (54%) than half of the Clean Election Election candi- winning. In races that pitted Clean opponents, Clean dates against privately-funded As pro- the time. Election candidates won 53% of many candidates received sup- vided under the law, and beyond their plemental matching funds, above pace with their original state allotment, to keep opponent's spending. in the number of Arizona also saw a big increase the state ushered in its new as candidates for office, hundred and four- Two public financing program. to 135 compared this year, teen people ran for office ran under the people two years ago. Sixty candidates had planned to par- Clean Election program. (More program's imple- ticipate, but chose not to as the fight over a tech- mentation was delayed by a court Sixteen candidates were nical challenge to the law.) elected without ties to special interests or Big Arizona House of Money; 12 will serve in the Representatives and 2 will serve in the Senate. than the best candi- voters deserve more York New It's time that candidates for dates money can buy. turned away from one-dollar- York election in New one vote and returned to one-person, one-vote. It's and York time to end the Money Marathon in New replace the current system with Clean Elections legislation has been

equal amount of funding, so they can concen equal amount of funding, so they dollars. trate on campaigning for votes, not vote." Now, the candidate who raises the the candidate vote." Now, most money is considered the front-runner. candidates qualify for office and can then candidates qualify for office of spend their time raising issues, instead raising money. office. CMCE candidates, who collect a set CMCE candidates, who collect office. from voters in number of $5 contributions a fixed and equal their districts, receive funds, enough to run a com amount of public you don't petitive campaign. Under CMCE, well- need to be rich or raise money from office. funded special interests, to run for CMCE limits campaign contributions to par CMCE limits campaign to no more than $100 ticipating candidates to $1000. and to other candidates With CMCE, candidates receive a fixed and With Restore the principle of "one person, one Restore the principle of "one person, Stop the endless money chase. Under CMCE, the endless money Stop Give regular people a fair shot at winning Give regular people Stop the flow of special interest money. money. of special interest the flow Stop

The Money Marathon: First Leg l l l l borhood groups. women's, community, good government and neigh- women's, community, gious, senior, labor, environmental, tenant, student, labor, gious, senior, some 80 citizen organizations representing reli- some 80 citizen organizations on as sponsors. The approach is supported by a by on as sponsors. and more than 34 Assembly members have signed and more than 34 Clean Money, Clean Elections Clean Money, (S.1638/A.2630). Some 16 members of the Senate ance out independent expenditures. Assemblyman Felix Ortiz David Paterson and money; stronger enforcement; and measures to bal- by Senator Legislature York introduced in the New reporting; lower contribution limits; an end to soft- others, in Albany, including: better disclosure and including: better disclosure Albany, others, in made by the Governor, legislative leadership and made by the Governor, CMCE reforms also include many of the proposals CMCE reforms also include many Endnotes

1. Individuals and partnerships (schedule A), corporate contributions (schedule B), all other (schedule C), in-kind contributions (schedule D) and housekeeping receipts (schedule P).

2. The Center for Responsive Politics is a non-partisan research group that investigates giving to candidates for federal office and makes that information availabel to the media and all interested members of the public. For a complete description of the category coding process, see the Center’s “Follow the Money Handbook,” Larry Makinson, Washington, DC, 1994

3. See category list on p. 3

4. Capital Bargains, Capital Gains: Campaign Contributions to the New York State Legislature from 1999-2000. Public Policy and Education Fund, 2000. Available online at www.citizenactionny.org

5. ibid

6. Securities and Exchange Commission Rule G-37

7. Capital Bargains, Capital Gains

The Money Marathon: First Leg