The National Institute on Money in State Politics

Constructing a New Paradigm

2013 Annual Report

www.FollowTheMoney.org

NIMSP_13ReportFNL.indd 1 9/6/13 7:53:33 AM Mission

The National Institute on Money in State Politics is the only nonpartisan, nonprofit organization revealing the influence of campaign money on state-level elections and public policy in all 50 states. Our comprehensive and verifiable campaign- finance database and relevant issue analyses are available for free through our website FollowTheMoney.org. We encourage transparency and promote independent investigation of state-level campaign contributions by journalists, academic researchers, public-interest groups, government agencies, policymakers, students and the public at large.

Constructing a New Paradigm

The Institute dove into its engineering trenches this past year, completely rethinking our underlying data architecture that archives 30 million records documenting $28 billion reported in political campaign money. We wanted more speed, more cross-analyses, more options. Our goal was to make the quality of the data impossibly better. In short, we want you to be able to ask anything and find answers, fast.

And so, the Institute spent this past year deep in the twists and turns of source codes, to knit and entwine our data pathways in new ways. We closed our eyes and imagined an entirely fresh way of perceiving. We mined the data, reimagined the substructure, sketched possibilities, and wore out markers and erasers on whiteboards.

We gave the beta version to academics, journalists, and other major users with instructions to find weaknesses, to probe and try to unravel it, then we braided it into a stronger net, a solid labyrinth of unimpeachable integrity.

Go ahead, try it. We promise you will be amazed: www.FollowTheMoney.org 1

NIMSP_13ReportFNL.indd 2 9/6/13 7:53:35 AM The Infrastructure of Democracy

Building and maintaining a healthy democracy is hard work.

The National Institute on Money in Baseline building blocks from all 50 states Much work remains to be done for the State Politics gave the nation its first already collected by the Institute include: infrastructure of democracy to show citizens comprehensive look at who was donating a clear roadway to greater accountability of Donors to all state-level legislative, to candidates running for state office in lawmakers and governments. More heavy gubernatorial, attorney general, and all 50 states in the 2000 elections, who other candidates to constitutional lifts need to be added to the ongoing data was giving to lawmakers across state offices collection: lines, and early sketches of how major Donors to Democratic and Republican Compile lobbyist expenditure data in industries and groups were strategically state party and caucus committees a majority of states donating to politicians in multiple states Compile independent expenditure to move specific policy agendas. We saw Donors to ballot measure committees in the states that allow popular reports from additional states energy deregulation policy initiatives initiatives that gave us a fundamental restructuring Build a process for compiling issue- of energy markets in 24 states, and the Registered lobbyists in all 50 states, advocacy spending, such as TV and Enron scandal. Three-strikes and correlated to their clients and their radio buys and mass-mailers, for mandatory-minimum tough-on-crime donations to candidates representative districts in each state measures got politicians elected across Donors correlated to legislative Expand best practices in reporting and the country, spurred the expansion of committee members disclosure of all election and policy- prison privatization, and gave a handful of debate-related information Independent spending reports from companies tidy profits, at taxpayer expense. committees in 30 states in 2012 Correlate introduced legislation to

Thirteen years later, the Institute continues Pilot projects include compiling state sponsors with key votes to create and maintain the nation’s only PAC donors in 20 states, lobbyist Correlate subsidy and contract lists 50-state, state-level donor database, expenditures in a dozen more, and local with campaign donor lists and continues to do the heavy lifting level data in Los Angeles and Orange Engage citizens to participate in the for good government and transparency County, and New York City democratic processes advocates. It is quickly building additional, necessary infrastructure to provide essential information about who supports major candidates and policy initiatives and The value of all this work is strengthening our democracy how those donations may affect policy through an engaged citizenry who hold lawmakers accountable over a long period outcomes that ultimately impact taxpayers. of time. Like the interstate highway system that spans and connects our country, the It is leveraging the many eyes of social Institute’s free-flowing, multi-layered, and evolving information highway can lead to media—with a mountain of high-quality more efficient government, greater accountability of elected leaders, and a more robust data at www.FollowTheMoney.org—to make debate about issues that affect our everyday lives. it more and more difficult for politicians to dole out taxpayer-funded favors to high- Our 21st century democracy looks very different from the past, but the corrosive effects dollar donors. of power and money are unrelenting. It will take hard work to maintain a healthy, vibrant democracy. We’ll hold up our end of the load. Engaged, active citizens now have an unprecedented ability to match donors and their agendas with politicians eager to get elected. Those citizens can change the course of our nation. —Edwin Bender, Executive Director

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NIMSP_13ReportFNL.indd 3 9/6/13 7:53:37 AM FollowTheMoney is a MARS Best Free Reference Web Sites of 2012 winner!

—Erica Danowitz, Chair, Best Free Web Sites Committee, Emerging Technologies, American Library Association

Window on the Year

This was a year like no other. We broke all our own records to compile electronic data from the state disclosure agencies as near to “real time” as possible, providing reporters and activists the best data for analyzing 2012 elections and issues. As of Nov. 5, 2012, we had compiled an average of 90 percent of all reports due across the states.

In the same time frame, we responded to an urgent request to compile new state PAC data in the 24 states that provided meaningful data with reasonable access.

FollowTheMoney.org provided a clear window into the $2.78 billion reported by candidates and political party committees in the 50 states that conducted regular or special elections for state office in 2012. That eye-popping total includes:

million raised by gubernatorial Plus, we posted: $241.8 candidates & officeholders million given to political $342.5 party committees $122.4 million for other statewide offices $174.4 million ...... Democrat

$982.5 million for legislative seats $168.1 million ...... Republican Republican ...... $530,462,395 Additionally, we documented: Democrat ...... $444,947,121 million raise by 371 ballot measure Independent and Third Party ...$7,002,072 $934.2 committees in 39 states Nonpartisan ...... $4,169,239 As is typical, California led the pack, with 77 groups that raised $455.8 million around 13 measures.

million raised by appellate and $49.8 high court candidates

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NIMSP_13ReportFNL.indd 4 9/6/13 7:53:44 AM 2012 Bits & Pieces

The June 2012 Wisconsin recall election raised the most money of any gubernatorial race, by far. Republican incumbent Scott Walker and Democratic challenger Tom Barrett combined to raise $44.2 million in contributions: $37.6 million for Walker and $6.6 million for Barrett.

Financially, the most evenly matched gubernatorial candidates in 2012 ran in New Hampshire, where Democrat Maggie Hassan raised $1.88 million and Republican Ovide Lamontagne raised $1.87 million. The resulting difference was the equivalent of only three-tenths of a percent of the combined total.

The race for two high court seats in West Virginia generated $3.7 million in contributions.

We recorded more than $55 million raised by about 1,200 lower court candidates. Really, Really Smart In the ten states for which the Institute has Highlights contributions data for all three levels of courts, The Institute’s new, unique entity resolution high court candidates averaged $323,180, system is our own artificial intelligence, created by appellate court candidates averaged $82,548, our staff computer whizzes to find and resolve the lower court candidates averaged $44,605. chronic issue of donors listing multiple variations of the same name. This customized software Two-thirds of the legislative races were quickly resolves the obvious ones, but sends the contested in the general election: 3,752 of sticky ones to our researchers who provide the nearly 5,700 races. full-on brainwork to resolve them. For instance, we found an astonishing 2,337 ways to report AT&T Legislative incumbents enjoyed an 89 and its state affiliates; 1,406 ways to list Verizon; percent success rate: 4,185 of the 4,707 1,206 ways to say Hospital Corp of America; 878 who sought reelection to the same versions of International Brotherhood of Electrical office won. Workers. The list goes on—but thanks to the entity resolution system, the speed of our standardizing work has increased exponentially.

Data staff took on the unenviable task of testing new elements of our re-engineered data architecture while it was being developed. The big payoff came when we uploaded more records in three months than had been previously possible to upload in four years!

www.FollowTheMoney.org

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NIMSP_13ReportFNL.indd 5 9/6/13 7:53:45 AM Highlights

Nailing the Facts Judicial Elections Twelve years of 50-state contribution Judicial candidates raised an unprecedented records (16,000+ candidates per election), Raising Standards by amount of money during the 2011 and six years of 50-state lobbying interests 2012 elections: 3,291 candidates topped Grading the States (100,000+ entities annually), and six years $110 million. The Institute expanded data of independent spending records (21 states) Scorecard: Essential Disclosure Requirements collection to include lower courts in ten provided powerful facts for public policy for Independent Spending, 2013 states, providing an essential, strategic tool debates. for fair courts activists. Surprisingly, the We updated and upgraded our comprehensive When the Florida State Legislature was numbers of lower-court candidates, records, assessment of essential independent spending moving to privatize 19 state-run prisons, and contributions in just ten states total more disclosure requirements. Our analysis found opponents asked the Institute, “What does than the combined appellate/high court that only 15 states require full disclosure $1 million buy in Florida campaigns?” Our records and contributions for nearly double of express advocacy and electioneering data supplied facts that were persuasive the number of states. communications. Unfortunately, 26 states enough to help stop Florida’s private prison continue to fail to ensure meaningful 143,271 records document $55.4 million legislation in its tracks. disclosure of this spending. reported by 1,930 lower court candidates Health care issues lead the news in all in 10 states Our new report co-published by the Center 50 states. The Institute provided hands-on for Public Integrity shows that 35 states 62,336 records document $33.1 million assistance to seven health policy advocacy have independent spending disclosure laws reported by 358 high court candidates in and media grantees of The California that are less stringent than federal election 24 states Endowment, and basic services to its law, meaning shadowy nonprofit groups and big-spending super PACs are able to do entire network. We also discovered that 41,900 records document $21.5 million business virtually undetected in some races. more than 50 health insurance companies, reported by 1,003 appellate court trade associations, HMOs and their affiliated candidates in 17 states Just days after we published this “report card,” political action committees (PACs), and 13 publications had picked up on it and several The American Constitution Society for Law nearly 730 employees of these entities, states had already begun taking action to and Policy published Justice at Risk, An gave $14.6 million to California’s state-level improve their systems. For instance, WIBC.com Empirical Analysis of Campaign Contributions candidates and ballot measure campaigns published Indiana News: Independent and Judicial Decisions, which relied heavily from 2000 to 2010. Campaign Finance Spending to Face Scrutiny: on Institute judicial contribution records to In general, state and local lawmakers and document how candidates’ campaign funds “Senate Elections Chairman Sue Landske officials determine the regulations and correlate with judicial decisions involving (R-Cedar Lake) says she was blindsided permitting requirements for oil and gas donor interests. to discover Indiana [F – 0 points] doesn’t drillers. As fracking jars the nation, we require financial disclosure from those looked at the industry’s lobbying efforts The Institute identifieddisclosure groups. She notes 15 states already and campaign giving. Donors from the practices for lower court contributions have disclosure requirements, and says oil and gas industry gave $1.3 million to in the 39 states where judges are elected. a legislative study committee is likely to state-level candidates and officeholders Our straightforward table provides a request data from those states this summer.” in California in 2012, with Chevron Corp., comprehensive, at-a-glance reference for Alaska Public Offices Commission sent the California Independent Petroleum Assoc., pursuing this money path. In addition, we message below confirming that our practice and Occidental Oil and Gas topping the list. looked at who funded the campaigns of produces positive results of highlighting trans- The Institute pointed out industry giving to lower court judges in California, Florida, parency advances already achieved by states: Colorado Governor John Hickenlooper, whose Illinois, Michigan, New York, Oregon, Oil and Gas Conservation Commission filed Pennsylvania, Texas, Washington, and “I must admit that seeing Alaska’s scorecard to sue the city of Longmont in an attempt Wisconsin in 2011–2012 campaigns. [A – 100 points] gave me warm fuzzy to overturn that city’s ordinances regulating feelings. Thank you for putting this together drilling in residential neighborhoods and and validating our efforts for transparency mandating water-quality monitoring at up here!” fracking sites. The Texas-based Wilks family gave contributions to 70 percent of Montana’s Republican legislators and 42 percent of the Montana legislative body as a whole in 2012 elections. The Wilkses own a fracking firm and have recently bought large tracts of land in Montana. www.FollowTheMoney.org

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NIMSP_13ReportFNL.indd 6 9/6/13 7:53:47 AM Pilot Projects Contributions are just one way to influence Local Data policy. Several pilot projects this year took Legal Challenges We cut our teeth on collecting local us to independent spending and lobbying The Institute’s archives provided indisputable campaign data in California, starting with all expenditures, enabling the public to see the facts that may change the law. In the wake contributions to candidates for the Orange full picture of an entity’s political influence. of consequences from the U.S. Supreme County Board of Supervisors and Los Angeles’ municipal elections. In addition, We expanded collection of independent Court decision, Citizens United v. FEC, state we obtained the records for committees spending records from 21 to 30 states. attorneys general and public interest law centers relied on the political contribution working to promote or oppose ballot In a groundbreaking pilot project, we records at FollowTheMoney.org to defend measures in two California counties (both created another first-ever resource state campaign-finance disclosure laws and measures seeking to tax soda pop failed). for investigative journalists and public contribution limits and to inform public policy Widespread dissemination of this data has policy groups by collecting all lobbying debates. The Institute’s data and research lit a flame under Orange County. We have expenditures filed in 13 target states by were used as evidence in 2013 legislative set our sights on local races elsewhere, as natural resources and related companies debates on campaign-finance reform in well, focusing next on Chicago, and the New whose economic interests are affected several states. For instance, Executive Director York City mayoral race. by laws and regulations relevant to clean Edwin Bender provided expert witness energy, global warming (climate change), testimony for Montana’s defense of the state’s and energy development. low contribution limits from a challenge in federal court by American Tradition The 2011-2012 election cycle was the first Partnership, represented by attorney James for which the Institute collected Political Bopp. The Ninth Circuit Court ultimately Action Committee (PAC) reports in 24 issued a stay in the case, allowing Montana’s states. We compiled 265,845 reports that low contribution limits to stand. document $1,608,127,579 from 16,678 committees. We plan to continue collecting PAC reports for the 2013-2014 elections.

Scorecard: Essential Disclosure Requirements for Independent Spending, 2013

Raising Standards by Grading the States

A 90-100 B 80-89 C 70-79 D 60-69 F 0-59

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NIMSP_13ReportFNL.indd 7 9/6/13 7:53:49 AM Building Stories

The Institute in the News and policymakers. For example, the San Website visitors increased 385 percent Francisco Chronicle published an AP story in four years The 2012 campaigns attracted enormous by Matt Gouras, Feb. 10, 2013, “Billionaire amounts of money: $2.78 billion reported fracking brothers top political donors.” It by candidates and party committees; and Unique Visitors to FollowTheMoney.org, summarized research that we published $878.2 million raised around ballot measures. 2009-2012 Feb. 1, Texas Fracking Billionaires Gave 700,000 The Institute’s data was cited repeatedly in Money to 70 Percent of Montana Republican the news, invigorating the debate about the 600,000 Legislators. The AP article was widely role money plays in elections and public 500,000 circulated. Our report, and the articles it policy decisions. 400,000 generated, helped the public learn about the 300,000 Our attention to the tedious details required political contributions so that it can monitor 200,000 to create accurate, comprehensive data whether legislative votes on regulation of 100,000 archives has been rewarded by its clear fracking appear to correlate with benefits to 0 adoption as a primary resource by the the public or to the elected officials’ political 2009 2010 2011 2012 national press, and inclusion as a training donors. resource for journalism schools, fueling still A report by CNN Money, “NRA Power and more dissemination. Money Goes A Long Way in States,” Dec. 20, The Institute’s Public Face: More than 3,900 reporters and 7,600 2012, cited our data to give a 50-state context FollowTheMoney.org myFollowTheMoney subscribers are signed on influence of the National Rifle Association From Jan. 2009 to Dec. 2012, we achieved up to receive releases and reports on specific in Wisconsin’s recall election: a 385 percent increase in visitors to states or topics. This past year, we sent “The NRA and its campaign arm, the FollowTheMoney.org. We maintain an active 108 press releases, and 22 email alerts to Political Victory Fund, have given nearly social media presence by posting frequently, subscribers. $3 million to state-level campaigns, often daily. The Institute had 1,700 Facebook political committees, and candidates fans and 4,600 Twitter followers, reflecting a The Institute’s communications database over the past nine years, according growth of 50 percent for each, Jan. – Dec. 2012. includes 3,913 reporters signed up to receive to the National Institute on Money in releases and reports relevant to their specific State Politics, a watchdog group. That states or topics. The resulting stories include doesn’t include hundreds of thousands The Institute in Action articles published by Bloomberg Business of dollars spent on lobbying various Week, Center for Public Integrity, CNN Money, Each year we convene a select group of national state legislatures in the same period. The Investigative News Network, Los Angeles advisors and foundation officers for intensive money has helped win owners expanded Times, Mother Jones, NBC News, The Nation, roundtable discussions. Presenters pose rights to carry guns outside of their The New York Times, and more. Columbia solutions to challenges to elections, judicial home in 41 states, more than double the Journalism Review profiled FollowTheMoney. independence, government and corporate number from two decades ago.” org at its Online News Startups.

Reporters use our research to investigate 451 Media Citations of FollowTheMoney.org issues and write articles to educate the public July 1, 2012-June 30, 2013

80 70 60 I wanted to send you a link to our story that examines the political Blogs 50 New Media 40 Traditional influence of private prison companies and the growing immigration Media 30 detention industry, and thank you again for your help. Our story, 20 10 published last Thursday, got great play nationwide. 0 -13 Jul-12 Aug-12Sep-12Oct-12Nov-12Dec-12Jan -13Feb-13Mar-13Apr May-13Jun-13 —Garance Burke, Reporter, The Associated Press http://www.miamiherald.com/2012/08/02/2926854/ immigrants-prove-big-business.html www.FollowTheMoney.org

The Institute was cited in these publications, among others, during the past year: St. Louis Beacon CNBC POLITICO NPR Los Angeles Times Associated Press U.S. News & World Report Bloomberg Businessweek New York Times Free-Times The Guardian The Atlantic NBC News Portland Press Herald San Francisco Chronicle Wall Street Journal Bloomberg News CNN Money MSNBC Tampa Bay Times Washington Post Huffington Post Lincoln Journal Star Miami Herald Atlanta Journal Constitution Denver Post Mother Jones The Plain Dealer Wall Street Journal Washington Post Bloomberg Oregon Public Broadcasting Cincinnati Enquirer Texas Public Radio The Nation

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NIMSP_13ReportFNL.indd 8 9/10/13 12:27:18 PM accountability, investigative journalism, and discussed linking and analyzing data, civic engagement. Our 2013 Summary of using data to inform public discourse, Proceedings reflects the widespread concern how to promote greater transparency that corporate influence on elections has in government and elections, how to reached a tipping point. discuss accountability, and how to build in performance standards. Institute staff traveled to 40 events this year to introduce new tools and expand use of Montana Law Review symposium, the resources to a wide range of participants: “Debating Democracy’s Future,” invited news reporters, policy advocates, community Bender to participate as a panelist with four organizers, immigrant rights groups, Tea Party attorneys on the topic, “Administration of a activists, law school students, state ethics Republican Form of Government.” Harvard officials, and many more. A few examples Law School Professor Lawrence Lessig include: provided the keynote and acknowledged the value of the Institute’s resources. Managing Director Denise Roth Barber showcased three agencies that have been successful at providing campaign finance data, lobbying expenditures, and independent spending, presented to state ethics officers attending the annual conference of the Council on Governmental Ethics Laws (COGEL).

Executive Director Edwin Bender presented “Transparency in Action: Pinpointing the Influence of Money in State Politics,” at the Society of Professional Journalists/ Radio Television Digital News Association conference.

The Institute presented our data and resources at the Harvard-Georgetown Market Democracy Project academic conference, followed by panels that

FollowTheMoney.org 2012 Elections 13.5% Increase in Unique Visitors When 1% = 50% $4 680,000 660,000 $3 640,000 620,000 670,449 $2

600,000 Billions 580,000 590,664 $1 560,000 540,000 $0 FY2013 FY2012

The Institute was cited in these publications, among others, during the past year: St. Louis Beacon CNBC POLITICO NPR Los Angeles Times Associated Press U.S. News & World Report Bloomberg Businessweek New York Times Free-Times The Guardian The Atlantic NBC News Portland Press Herald San Francisco Chronicle Wall Street Journal Bloomberg News CNN Money MSNBC Tampa Bay Times Washington Post Huffington Post Lincoln Journal Star Miami Herald Atlanta Journal Constitution Denver Post Mother Jones The Plain Dealer Wall Street Journal Washington Post Bloomberg Oregon Public Broadcasting Cincinnati Enquirer Texas Public Radio The Nation

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NIMSP_13ReportFNL.indd 9 9/6/13 7:53:53 AM Framework for Success

The Institute uses its multistate, multiyear databases to research trends in political giving, examine how contributions drive public policy debates in the states and the nation, and see how special interests give across state lines. We relentlessly pursue information that puts campaign contributions in context, such as legislative committee assignments and lobbyist/client relationships. We hope to soon link lawmakers with their proposed legislation.

Strong Collaborations “There can be no denying the profound Campaign Finance changes in U.S. campaign financing since Years of cooperation with other groups The Institute’s data and research were used the U.S. Supreme Court’s January 2010 paid off, seen in these impactful, recent as evidence in 2013 legislative debates decision in Citizens United v. Federal collaborative projects and reports. on campaign-finance reforms in Florida, Election Commission. This paper begins Montana, New York, and more. The Palm We consulted with the Center for Public to disentangle the strands through an Beach Post, Jan. 22, 2013, reported, “Florida Integrity for its State Integrity Investigation analysis of independent expenditures lawmakers consider lifting cap, adding that assesses corruption risk. Some of the 14 in elections at the state level in 2006 restrictions on campaign cash”: factors assessed used our Best Practices and 2010.” studies for baseline information on which to “The political fund-raising arms run by In Jan. 2013, we coordinated release of our evaluate state laws governing political lawmakers, known as committees of report, Big Tobacco Wins Tax Battles, with contributions and lobbying. continuous existence (CCEs)…open the the American Lung Association’s report, door to unlimited amounts of industry A project with the Center for Effective State of Tobacco Control 2013, which tracks contributions… The Senate Ethics & Government (formerly OMB Watch) used progress on key tobacco control policies Elections Committee approved new Institute data to fuel analysis of how money at the state and federal levels, and assigns regulations on CCE spending Tuesday, as and politics intersect with state actions to grades based on tobacco control laws and part of a sweeping new ethics proposal regulate fracking practices. Our 2011 report, regulations. Money emerges as the core (CS/SB 7006). The National Institute on Pennsylvania’s Marcellus Shale Advisory theme. Money in State Politics has said Florida’s Commission, documented contributions Another study relied on Institute data, committee system creates a ‘Russian doll given by oil and gas executives and lobbyists “Taking Opt-In Rights Seriously: What Knox syndrome,’ where money is nested and who were appointed to sit on the governor’s v. SEIU Could Mean for Post-Citizens United passed from one committee to another. commission. Shareholder Rights,” by Ciara Torres-Spelliscy, The average voter has little chance of following the source of the money, the Data gathered and supplied by the Institute Montana Law Review, April 22, 2013. Institute warned.” provided the foundation for The Impact of Spelliscy argues that the Supreme Court has Citizens United in the States: Independent treated inequitably the political speech of We created a multi-state database of the Spending in State Elections, 2006-2010, by corporations and of unions, and makes the lobbying expenditures reported by natural Keith Hamm, Michael J. Malbin, Jaclyn Kettler, case for improved regulation of corporate resources and utility companies from 2010 and Brendan Glavin, presented at the 2012 political speech. through 2012. This objective data may be of meeting of the American Political Science immense value to policy advocacy related to Association: climate change.

This site saves countless hours that would otherwise be spent perusing 50 different state government websites, and hundreds upon hundreds of pages. It’s an invaluable service to researchers everywhere!!

—Jeremiah L. Curtis, Freelance Researcher, North Benton, Ohio www.FollowTheMoney.org 9

NIMSP_13ReportFNL.indd 10 9/6/13 7:53:56 AM Data availability has been greatly facilitated for scholars by the efforts of the National Institute on Money in State Politics, directed by Edwin Bender, which since 1999 has gathered, cleaned, and made publicly available data on contributors to legislative candidates in the 99 chambers.

—The Influence of Campaign Contributions in State Legislatures, ©2012, by Lynda Powell, Professor of Political Science

Institute Research Monetary Competitiveness in 2009-2010 money plays in elections and public State Legislative Races policy development, and specifically Scorecard: Essential Disclosure Requirements by Peter Quist, July 03, 2012 how campaign-finances are regulated, for Independent Spending, 2013 can improve the representative form of by Institute Staff, May 16, 2013 73 percent of the legislative seats up for election in the 2009-2010 general elections government in the states. If a state wants Just how much money is spent independently were contested, up from 67 percent in more inclusive elections—contested as well on elections for state office? The answer 2007-2008. 25 percent of the legislative seats as monetarily competitive—data shows that remains elusive in the majority of states, adjusting contribution limits or funding up for election were monetarily competitive, according to the Institute’s latest analysis mechanisms can have a dramatic effect. up from just 22 percent in the 2007-2008 of disclosure requirements for independent Offering incentives for donors to participate contests. As during the 2007-2008 elections, spending. The analysis found that 15 states and for candidates to seek out more small- monetary competitiveness rates were higher require full disclosure of both forms of dollar donors can also have a positive effect in states with public funding programs and in independent spending: express advocacy on both the number of candidates who states with relatively inexpensive races. and electioneering communications. run and the number of people who donate Unfortunately, 26 states continue to fail (and presumably vote).” to ensure meaningful disclosure of this “Evidencing a Republican Form of Government: The Influence of Campaign spending. Big Tobacco Wins Tax Battles Money on State-Level Elections,” For additional discussion of the Scorecard’s by Robin Parkinson and Institute Staff, by Executive Director Edwin Bender, grading system, and the role of enforcement Jan. 16, 2013 published in the Montana Law Review, in ensuring adequate disclosure, see our blog, April 22, 2013. Take a deep look at the tobacco industry’s Independent Spending Scorecard: Grades campaign contributions during the 2012 This article documents the value of the Based on Laws, Not Enforcement. election cycle. The industry gave nearly $54 Institute’s data as evidence for assessing million overall, with 87 percent coming from whether limits restrict First Amendment rights: Lower Courts: Selection Methods and just four tobacco manufacturers: Philip Morris Campaign Finance “Quality data gives public officials, policy USA, Reynolds American Inc., U.S. Smokeless by Linda Casey, July 31, 2012 experts, and the public reliable information Tobacco Company, and Altria. Of that $54 This report assesses the campaign finance that can help them explore larger systemic million, tobacco interests gave more than reporting systems for lower court candidates policy options that can de-emphasize $47 million to help defeat ballot measures in the 39 states that elect their lower court the role of money in our elections and that would have raised taxes on tobacco judges. The attached table provides a emphasize voter involvement… The products, and contributed $3.5 million to comprehensive, at-a-glance reference for Institute’s data has been cited before the state-level candidates and $3 million to pursuing this money path, adding critical United States Supreme Court on three party committees, with 76 percent going to information to selected data provided by the occasions: in an amicus curiae brief in Republican candidates and committees. American Judicature Society. Caperton v. A.T. Massey Coal Co., Inc., The Money Tale by Justice Souter in Federal Election In addition to research reports, from The Role of Money & Incumbency in Commission v. Wisconsin Right to Life, Inc, July 1, 2012 to June 30, 2013, 2009-2010 State Elections and in an amicus curiae brief in Citizens communications specialists and researchers by Linda Casey, July 03, 2012 United v. Federal Election Commission. In blogged 26 times at The Money Tale. Topics addition, the Montana Attorney General Legislative incumbents enjoyed an 87 percent ranged from Controversy over Colorado’s presented the Institute’s analyses in success rate during the 2009 and 2010 Renewable Energy Standards to The Sweet Western Tradition Partnership, Inc. v. primary and general elections. One-third Taste of…Taxes to Texas homebuilder/ Attorney General of Montana. of them ran unopposed. Incumbents in political mega-donor Bob Perry. contested general election races had a “The curated data compiled by the Institute success rate of 85 percent; legislative enables scholars who study both state candidates who raised more money than elections and public policy processes new their opponents were successful 76 percent opportunities to quicken and expand of the time. their inquiries. Understanding the role 10

NIMSP_13ReportFNL.indd 11 9/6/13 7:53:57 AM 2014: Stepping Up to the Next Level

I’m proud to chair the board We’re working faster and better. We want to sponsor fellowships to train key of the National Institute Exponentially faster. We broke through journalists and academics to use our data previous technical limitations and now to produce investigative articles targeted to on Money in State Politics, answer queries at record speeds, enabling specific regions or important issues. We will which is changing politics in people to peel back the layers to more fully create and disseminate information suitable understand the impact money has on policy for television, radio, and other venues America. Their data is vast, development. to help voters connect the dots among nonpartisan and impeccable, candidates, donors, lobbying interests, and Our website redesign centered around policy decisions. We will assist developers empowering voters to a specific mandate: it must be easy to to create mobile apps that showcase the navigate and understand. And it is. To Institute’s data and research. connect the dots between further that goal, we are developing campaign contributions and infographics, data visualizations, tutorials, We will empower local-level investigations glossaries, and classroom materials. by seeding our website with municipal the making of public policy. election databases from Chicago, Los FollowTheMoney.org has We will offer more on-site trainings, Angeles, New York, and other local-level webinars, widgets, and other services, jurisdictions. We will survey the nation to become a go-to resource for targeting reporters, advocates, and other find other major jurisdictions that have journalists, policymakers, user groups. We will reduce perceived electronic reports, and create partnerships barriers to using the data, share our with state and local groups to fill in the activists and academics. expertise on data processing, and inspire blanks. innovative investigations. We will partner Their database is a goldmine We will analyze campaign finance systems with experts in legislative vote tracking such as public funding, small donor that has sparked numerous and financial disclosure to create APIs or incentives, and matching funds, and provide other tools that can match the records and independent research projects. cross-jurisdictional analyses to more fully illuminate the results. Best of all, the Institute inform the debate about reforming the system. Building on our recent Scorecard never rests: right now it’s The Institute’s new data architecture is revolutionary. Our open source data co-published with the Center for Public developing new projects on enables in-depth academic analyses and Integrity, we will partner with key groups to launch a 50-state program to increase independent spending, judicial reports, facilitating data mash-ups of the contribution records with other types of awareness and adoption of best practices in campaign finance reporting. races, the lobbying sector, information. Direct access to our servers will and government transparency empower users to run search queries they As always, we will personally answer the write, and then save and share the results phone and rapidly answer the emails, policies around the country. in their reports and on social media. Visitors directly addressing questions from users. What’s next? Stay tuned. will be able to upload contributor lists to business-code and standardize names that Above all, we will continue to serve the —Board President Bert Brandenburg match with our comprehensive database, public good by remaining nonpartisan and then download the results to inspire others. nonprofit, encouraging transparency, and promoting independent investigation of the We intend to reach out to even more open influence of campaign money on elections government advocates and policy groups. and public policy in all 50 states.

www.FollowTheMoney.org

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NIMSP_13ReportFNL.indd 12 9/6/13 7:54:02 AM  Building the Institute, daily: Robin Arnold (née Parkinson), Researcher; Edwin Bender, Executive Director; Barbara Bonifas, Development Director; Lori Cadwell, Finance Specialist; Linda Casey, Lead Researcher; Sara Christiansen, Input Management and Data Acquisition Specialist; Tyler Evilsizer, Researcher; Ken Feaster, Information Systems Director; John Hardy, Information Systems Technician; Amanda Harrow, Outreach and Communications Specialist; Michelle Hoffart, Data Acquisition Specialist; Zach Holden, Researcher/ Outreach Specialist; Wendy Kolppa, Data Acquisition Specalist; Maria Kurtz, Data Acquisition Coordinator; Shirlene Kuykendall, Data Acquisition Specialist; Robin Larson, Administrative Assistant; Beverly Magley, Special Projects Director; Jeff Plaggemeyer, Data Acquisition Specialist; Peter Quist, Research Director; Denise Roth Barber, Managing Director; Karen Sedivy, Data Acquisition Specialist; Anne Sherwood, Communications Specialist; Gus Voss, Researcher/Outreach Specialist; Scott Wahl, Information Systems Specialist Team Builders

 The data acquisition staff continues to be a great source of pride for the Institute, performing the thankless and tedious task of obtaining the data, day after day, hour after hour. They even key in the numbers from the paper reports filed in New Jersey, where nothing is yet digitized. Several have been with us for more than 15 years. Their persistence, attention to detail, and flexibility make it easy for the rest of the organization to pivot on a dime to meet specialized requests for assistance. The energy from that strong core permeates the rest of the organization and makes everyone else’s jobs easier.

 The Institute’s management team runs a collaborative shop. Once here, they stick around a long time to contribute their skills. Edwin Bender, a founding incorporator and on staff since 1999, has been executive director for more than a decade. Development Director Barbara Bonifas has led fundraising and grants administration Our tireless researchers pore through since 2002. With the Institute since 2006, the data, adding value at several levels Information Systems Director Ken Feaster has and looking for trends, anomalies, and worked nonstop the past year to redesign news. They painstakingly build candidate the Institute’s data architecture. Maria Kurtz lists, and standardize names of political was named data acquisition coordinator in contributors, lobbyists, lobbying clients, 2010, following six years of service as data and outside spenders in elections. acquisition specialist. Beverly Magley, special While performing the standardization projects director, has created the Institute’s work needed to optimize search results, public presentations, annual report, researchers also assign codes to these conference, and tutorials since 2008. Denise entities so the public can look at the role Roth Barber has served as managing director specific economic interests play in politics. since 2010, after four years as research Researchers write reports and blog director and seven years as researcher. Peter about the findings in Institute data, give Quist took the reins as research director this presentations on Institute data and stories, year, after five years as a researcher, with and answer questions from reporters and a focus on best practices for disclosure of other members of the public. money in state politics. 12

NIMSP_13ReportFNL.indd 13 9/6/13 7:54:12 AM nonpartisan, community-based civic engagement strategies. Jeff has extensive experience with voter engagement strategies, including prior service with Wellspring during 2006, and as a board member of the Oregon Bus Project Foundation.

MICHAEL J. MALBIN is a co-founder and executive director of the Campaign Finance Institute, as well as a professor of political science at the State University of New York at Albany. Michael has written extensively about money and politics for more than three decades. His recent publications include Reform in an Age of Networked Campaigns: How to Foster Citizen Participation through Small Donors and Volunteers, co-authored with Anthony Corrado, Thomas Mann and Norman Ornstein. Other co-authored works include Public Financing of Elections after Citizens United; and Small Donors, Big Democracy: New York City’s Matching Funds as a Model for the Board of Directors Nation and States (Election Law Journal, 2012), which relied extensively on data supplied by the National Institute on Money in State Politics. EDWIN BENDER, a founding incorporator for the KEITH HAMM is the director of the Harlan Program Institute, has been executive director for more in State Elections, Campaigns and Politics at Rice GERI D. PALAST, Institute board secretary, is the than a decade. He promotes the use of the University. He has conducted extensive research managing director of the Israel Action Network. Institute’s comprehensive, highly credentialed on campaign finance, interest groups and state Prior, she served five years as executive director state-level donor information by investigative politics during his career. His current research of the Campaign for Fiscal Equity (CFE). During journalists, scholars examining state elections and examines how the adoption of the new campaign her tenure, CFE won the final Court of Appeals public-policy processes, and attorneys involved in finance law in Connecticut has affected both decision in the landmark litigation establishing the campaign-finance litigation. In 2012, Ed was an interest group lobbying strategies and the setting constitutional right to a sound basic education for expert witness for the Montana Attorney General’s of the legislative agenda. Keith was selected as a all public school students in New York State. In Fulbright scholar in 2006 and served as research defense of Montana’s campaign-contribution 2008, Palast served as education policy counsel chair for North American Studies at Carleton limits. He was recently published in the Montana for Presidential-Elect Obama’s Transition Team. University in Ottawa, Ontario. He is past co-editor Law Review, “Evidencing a Republican Form of Formerly, Geri was the founder and executive of Legislative Studies Quarterly. Government: The Influence of Campaign Money director of the Justice at Stake Campaign. Geri on State-Level Elections.” Ed emphasizes the ADELAIDE ELM KIMBALL is senior advisor (and is an attorney, a Root-Tilden Public Service Law need to break down barriers to public disclosure chaired the founding board of directors) for Project Scholar from NYU School of Law, and an honors of campaign finance and related information in Vote Smart, one of the largest and most widely graduate of Stanford University. She is admitted to poor-reporting states, while pushing advances in respected sources of comprehensive, unbiased practice in the District of Columbia. cross-state issue analyses and web-based data information on elections and public officials in aggregation and dissemination. the country. Adelaide has been communications SAMANTHA SANCHEZ, Institute board treasurer, is an administrative law judge for the state of BERT BRANDENBURG, Institute board president, director for Project Vote Smart since 1994 and Montana. She served as the Institute’s co-director is executive director of the Justice at Stake assists with development. Earlier, she directed with Jeff Malachowsky for its first years of Campaign, a national, nonpartisan partnership the Archives Department at the Arizona Historical operation and is a founding incorporator and working to keep courts fair and impartial. JAS Society in Tucson from 1985 through 1993. member of the first board of directors. Sam has passed reform legislation, built a coalition Adelaide earned bachelors in history and Spanish studied and wrote about campaign-finance of more than 50 groups, and put the issue of from the University of Texas at Austin, and her issues for more than a decade. As principal independent courts on the national map. Bert MA with concentrations in American history and researcher on the relationship of special-interest was the Justice Department’s director of public museum studies at the University of Arizona, and a campaign contributions to judicial candidates affairs under Attorney General Janet Reno. He master of library science, also from the University for state supreme courts, Sam forged the served in policy and communications positions of Arizona. for the U.S. Secretary of Agriculture, the National Institute’s relationships with national scholars LARRY MAKINSON is one of the pioneers of and researchers and co-authored several national Performance Review, and the 1992 Clinton-Gore computer-assisted research into campaign campaign and presidential transition team. Bert reports on the independence of the judiciary. Her finances. He first started tracking campaign tax-law background includes 15 years at Catholic is chair of the Committee on Fair and Impartial money in Alaska in the mid-1980s, then moved University Law School, where she served as Courts of the ABA, and he serves on the National to Washington, D.C., where he spent 15 years associate dean for six years. Sam earned her JD Ad Hoc Advisory Committee on Judicial Campaign tracking federal contributions at the Center for at Catholic University Law School and is a current Conduct. He holds a JD from the University of Responsive Politics. Since leaving CRP, he has member of the Washington, D.C. and Montana Virginia. conducted investigative database projects for State Bars. the Center for Public Integrity and the Sunlight ROSALIND GOLD has worked with the National Foundation. Larry is currently semi-retired, Association of Latino Elected and Appointed CIARA TORRES-SPELLISCY is an assistant professor enjoying life on the Oregon coast but still keeping Officials (NALEO) Educational Fund for two at Stetson University College of Law, teaching a finger in the campaign finance world. decades. As the organization’s senior director courses in Election Law, Corporate Governance, for policy research and advocacy, she leads JEFF MALACHOWSKY is the program director for and Constitutional Law. Ciara was counsel at the policy analysis, research, naturalization and civic the Civil Society Program of Wellspring Advisors, Brennan Center for Justice at NYU School of Law, engagement activities. She directs preparation of a national philanthropic advisory firm. Before an associate at Arnold & Porter and a staffer for the National Directory of Latino Elected Officials, joining Wellspring in February 2011, Jeff lived for Senator Durbin. She has testified before Congress Latino Election Handbook, Election Profiles, and nearly 30 years in Oregon where, in 2009–2010, as an expert on campaign finance reform. As well other research and policy documents. The Los he served as founding co-director of Oregon Voice, as publishing in the Montana Law Review and the Angeles Times and other media outlets regularly affiliated with the national State Voices network. NYU Journal of Legislation and Public Policy, she seek Rosalind’s perspectives on Latino electoral Jeff was co-founder and co-director of the National has published in the New York Times, Roll Call, participation, political progress and naturalization Institute on Money in State Politics, and of the Business Week, Forbes, The Atlantic, USA Today, policy developments. Her expertise includes Western States Center, which provides training and Judicature, Salon and CNN. com. Ciara has been election reform, voting rights and the decennial resources to grassroots leaders in eight western quoted by The Economist, Mother Jones, The Census enumeration of the Latino population. She states. He served as a consultant to foundations National Journal, Los Angeles Times, NBC. com, earned her JD from Harvard Law School. and donors, managing projects and advising on NPR, Fox, CSPAN, and NY1.

NIMSP_13ReportFNL.indd 14 9/6/13 7:54:16 AM thank you

Funding This Essential Work

Foundations and individuals generously support The Bauman Foundation the Institute. We do not accept grants or contributions from The California Endowment corporations, corporate foundations, political parties, or candidate

committees. For more information about supporting the Institute, Carnegie Corporation of New York please contact Development Director Barbara Bonifas at 406-449-2480. Donor Advised Funds Fiscal year 2013 (July 1, 2012 to June 30, 2013) expenses totaled $1.6 million. Listed on the right are foundations that have supported Energy Foundation the Institute since our founding. We are especially grateful to Ford Foundation current foundation funders, identified in bold. The William and Flora Hewlett Foundation

JEHT Foundation

The Joyce Foundation Data sales, custom research, data licensing agreements, nonprofit

membership enhancements, speaking fees, and in-kind contributions Albert A. List Foundation generate 10 percent of annual Institute income. A community fundraiser sponsored by the Blackfoot River Brewing Co. donated $1 John D. & Catherine T. from every pint sold during the event; individual donations also taken. MacArthur Foundation

We are grateful to individuals whose personal Mertz Gilmore Foundation donations during our fiscal year 2013 helped create transparency around special interest influence in elections in 50 states. Open Society Foundations

Doug and Maureen Averill, Edwin Bender, Roger Best, The Pew Charitable Trusts Gerald M. Bonetto, Bert Brandenburg, Martin Cooper, Public Welfare Foundation Gerald Davis, Branden Diehl, Ann Eldridge, Thomas E. Heyes, Annie and David Hull, Keith Hamm, David Hunter, Rockefeller Brothers Fund Adelaide Elm Kimball, Quresh Latif, Michael Malbin, Marie McAlear, Alan Nicholson, Geri Palast, Samantha Sanchez, Aaron Sojourner, Rockefeller Family Fund Bernard van Maarseveen, Beverly Weeks, Anonymous

Sunlight Foundation

www.FollowTheMoney.org thank you

NIMSP_13ReportFNL.indd 15 9/6/13 7:54:19 AM www.FollowTheMoney.org

National Institute on Money in State Politics 833 N. Last Chance Gulch Helena, Montana 59601 phone: 406-449-2480 • fax: 406-457-2091 email: [email protected]

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