Consider the Source ©2013 Center for Public Integrity 2 Table of Contents
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DIGITAL NEWSBOOK The 2012 election was the most expensive and least trans parent presidential campaign of the modern era. This project seeks to “out” shadowy political organizations that have flourished in the wake of the Supreme Court’s Citizens United ruling. As the nation prepares for major state-level elec tions in 2013 and critical midterms in 2014, we provide the narrative behind the flow of money and how professional politicking is influencing a flood of new spending. The Center for Public Integrity SHOW CONTENTS Consider the Source ©2013 Center for Public Integrity 2 Table of Contents PART I: Big bucks flood 2012 PART III: Nonprofits, the election stealth super PACs Introduction 5 Nonprofits outspent super PACs in 2010, trend may continue 51 Top 25 Super PAC donors 6 What the courts said and why Pro-environment group gave we should care 8 grant to conservative nonprofit 57 Stealth spending on the rise PART II: Super PACs crash as 2012 election approaches 61 the parties Drug lobby gave $750,000 to Crossroads political machine pro-Hatch nonprofit in Utah’s U.S. Senate race funded mostly by secret donors 13 63 Finance industry makes up PART IV: Citizens United nearly half of pro-Romney in the states super PAC’s donations 18 Big business prefers GOP over Contribution limits at risk in Democratic super PACs 25 states thanks to Supreme Court 69 Super PAC appeal, give until Wisconsin recall breaks record it ‘feels good’ 31 thanks to outside cash 73 Canadian-owned firm’s mega- Judicial candidates vulnerable donation to super PAC raises to outside spending 80 ‘legal red flags’ 33 Right-wing groups attempt to Mystery firm is election’s top dislodge justices in Florida corporate donor at $5.3 million 37 and Iowa 85 Investment managers top list North Carolina governor’s race of super PAC donors 43 awash in out-of-state funds 92 3COVER CONTENTS ABOUT CPI4 Consider the Source ©2013 Center for Public Integrity 3 Table of Contents Obscure nonprofit threatens PART VI: Impact: What was campaign finance limits beyond the effect of all that money? Montana 99 Mystery deepens over origins Super PACs, nonprofits of nonprofit battling Montana favored Romney over Obama 136 spending limits 107 House candidates fear super PACs 143 N.C.’s public financing system drowned out by outside House candidates draw one- spending 110 campaign super PACs 146 Bad day for super donors 148 PART V: Introducing the Republican (and Democratic) Rove-affiliated groups spend governors associations $175 million, lose 21 of 30 races 152 Adelson gave $40 million to super Pennsylvania governor benefited PACs in final weeks of election 156 from untraceable $1.5 million donation 115 Court opened door to $933 million in new election spending 162 D.C.-based governors’ associations provide back door Appendix for corporate donors 124 Quick stats on super PACs Million-dollar donation in and nonprofit organizations 167 Indiana race may skirt limits on corporate giving 130 CPI project staff 171 Go online for more stories and full profiles of super donors, super PACs, and nonprofit groups at: www.publicintegrity.org/politics/consider-source 3COVER CONTENTS ABOUT CPI4 Consider the Source | About CPI ©2013 Center for Public Integrity 4 The Center for Public Integrity The Center for Public Integrity was founded in 1989 by Charles Lewis. We are one of the country’s oldest and largest nonpartisan, nonprofit investiga- tive news organizations. Our mission: To enhance democracy by revealing abuses of power, corruption and betrayal of trust by powerful public and private institutions, using the tools of investigative journalism. DIGITAL NEWSBOOK iWATCH NEWSBOOK DIGITAL NEWSBOOK Sexual Assault On Campus A Frustrating Search for Justice Who’s Behind A culture of secrecy the Financial surroundssurrounds higherhigher THE education’seducation’s handlinghandling Meltdown? SUBPRIME ofof sexualsexual assaultassault casescases THE TOP 25 SUBPRIME LENDERS AND THEIR WALL STREET BACKERS 25 Check their stats, including the bailout funds they’ve received THE CENTER FOR THE CENTER FOR PUBLIC INTEGRITY PUBLIC INTEGRITY Investigative Journalism in the Public Interest Investigative Journalism in the Public Interest SHOW CONTENTS SHOW CONTENTS SHOW CONTENTS Other free digital newsbooks produced for the Center in collaboration with the Donald W. Reynolds Journalism Institute at the Missouri School of Journalism. Support the Center: Donate Today The Center for Public Integrity would cease to exist if not for the gener- ous support of individuals like you. Help keep transparency and account- ability alive and thriving by becoming a new or recurring member to support investigations like Consider the Source. To make a recurring gift, click here when you are online or visit www.publicintegrity.org. 3COVER SHOW CONTENTS FIRST ARTICLE4 Consider the Source | Part I ©2013 Center for Public Integrity 5 I ntroduction HE 2012 ELECTION was sion to races for governor, state su- the first presidential contest preme court and beyond. Tto be affected by the U.S. The Center for Public Integrity Supreme Court’s landmark Citizens launched the Consider the Source United ruling, which unleashed project in January, 2012, in an ef- nearly $1 billion in new spending fort to explain the new campaign in federal races. The term “super finance landscape and track the PAC” became part of the national impact of this unlimited form of vocabulary. Billionaire casino mo- spending on both state and federal gul Sheldon Adelson became a election contests. Project staff au- household name by spending more thored more than 250 stories that than $90 million in an attempt to tracked the effect of money on the elect conservative candidates. And political process, with a special fo- laws restricting spending by outside cus on the Citizens United decision. interest groups in elections were We produced detailed profiles invalidated in 24 states, extending of the most influential super PACs the impact of the high court deci- and the top 25 “super donors” who 3PREVIOUS ARTICLE SHOW CONTENTS NEXT ARTICLE4 Consider the Source | Part I ©2013 Center for Public Integrity 6 fueled their spending. We also and Democratic Governors Asso- wrote profiles about the secretly ciations to get around campaign fi- funded nonprofits that pay for the nance limits in the states. same kinds of advertising as super The Citizens United decision and PACs. subsequent spending blitz led to a Among our stories, the tale of a public outcry and calls for reforms mysterious shell company that be- not seen since the run-up to passage came the top corporate donor to of the McCain-Feingold campaign super PACs; a story about a foreign- finance law in 2002. To date, efforts owned reinsurance firm that gave to require more disclosure of dona- $1 million to a super PAC support- tions to spending groups have failed ing the candidacy of Republican and the Federal Election Commis- presidential nominee Mitt Romney sion has been unwilling to act on — something that would have been even the most basic enforcement is- banned if the donation came from sues thanks to its 3-3 partisan split. the foreign company’s chairman; With that in mind, the Consider and a series of stories on the byzan- the Source team has much to do be- tine process used by the Republican tween now and the 2016 election. n Top 25 super PAC donors for 2012 election cycle Rank Name Total Given Ideology 1 Sheldon Adelson & family $93.3 million Republican 2 Harold Simmons & wife, companies $30.9 million Republican 3 Bob Perry $23.5 million Republican 4 Fred Eychaner $14.1 million Democratic 5 Joe Ricketts $13.1 million Republican 6 William S. Rose (Specialty Group) $12.1 million Republican 7 United Auto Workers $11.8 million Democratic 8 National Education Association $10.8 million Democratic 3PREVIOUS ARTICLE SHOW CONTENTS NEXT ARTICLE4 Consider the Source | Part I ©2013 Center for Public Integrity 7 Rank Name Total Given Ideology 9 Michael Bloomberg $10 million Independent 10 Republican Governors Association $9.8 million Republican 11 James H. Simons $9.6 million Democratic 2 1 AFSCME $8.2 million Democratic 13 AFL-CIO $7.4 million Democratic 14 Robert B. Rowling $6.1 million Republican 15 American Federation of Teachers $5.8 million Democratic 16 Robert Mercer $5.5 million Republican 17 Steve and Amber Mostyn $5.2 million Democratic 18 George Soros* & family $5.1 million Democratic 19 William Koch $4.8 million Republican 02 Peter Thiel $4.7 million Republican 21 SEIU $4.4 million Democratic 21 Joe Craft $4.4 million Republican 32 John Childs $4.2 million Republican 32 Plumbers and Pipefitters Union $4.2 million Democratic 52 Jerry Perenchio $4.1 million Republican Full profiles of top super PAC donors for 2012 election cycle can be found at: www.publicintegrity.org/politics/consider-source/super-donors. * George Soros is the chairman of the Open Society Foundation, which provides funding for the Center for Public Integrity. See list of the Center’s donors at: www.publicintegrity.org/about/our-work/supporters. 3PREVIOUS ARTICLE SHOW CONTENTS NEXT ARTICLE4 Consider the Source | Part I ©2013 Center for Public Integrity 8 J. Scott Applewhite/AP Big bucks flood 2012 election What the courts said and why we should care A CITIZEN’S GUIDE TO C ITIZENS UNITED By John Dunbar Published Online: January 3, 2012 N 2010, the courts reversed de- Laws aimed at limiting the cor- cades of legal precedent when rupting influence of corporate Ithey said it was OK for corpora- money in elections go back more tions and unions to spend as much than a century while restrictions on as they want to put their favorite union spending go back more than candidates in office. 60 years.