By Antonio D. French
Filed Saturday, April 29, 2006 at 9:52 AM
State law places limits on how much an individual can give to a candidate's committee. It is also a crime to attempt to hide the source of a contribution by funneling it through a middle man. But a story published yesterday in the Southeast Missourian highlights the creative ways political campaigns use to raise cash -- expecially when it comes to local party committees like the ward organizations which exist in every St. Louis City ward. Labels: Fundraising
Prior to 1994, local party committees were a backwater of Missouri politics, established by law but with few duties except to pick new candidates when a ballot vacancy occurred as a result of death or withdrawal. But when a law limiting campaign donations took effect, the importance of local party committees was magnified by a provision allowing them to become a source of large contributions.
In fact, ward organizations and party committees can donate up to 20 times the amount that any other kind of entity can.
Rudi Keller, who wrote the Missourian story, pointed out how this loophole in the law was exploited in the 2004 Governor's race.
Democratic gubernatorial candidate Claire McCaskill received more than 130 donations from local party committees in the days after her primary victory over incumbent Gov. Bob Holden. The money, most of which was donated in $12,000 amounts, replenished her depleted treasury for the fall campaign.
And Republican Matt Blunt, who won the 2004 race, received 65 large local party committee donations -- many for approximately $12,000 -- during the last week of the campaign, a rush of money that helped pay for the crucial final push.
In St. Louis, we've also seen this stategy play out in the pages of candidate's campaign finance reports.
The 58th Democratic Legislative Distric Committee, a committee associated with State Rep. Rodney Hubbard (D-58th District), raised $11,000 last quarter. The committee then donated $6,000 to the state senate campaign of Yaphett El-Amin (five times the limit on contributions from individuals), $650 to the state rep campaign of Jamilah Nasheed (twice the limit for individuals), and $1,500 to the candidate committee of Hubbard himself (nearly five times the limit for individuals).
According to campaign finance reports for Mike McMillan's license collector committee, the 58th DLDC also contributed $1,275 to his campaign. But that contribution is not noted on the PAC's expenditures report.
Also on McMillan's report is a series of $1,275 contributions from entities known as "PIC I," "PIC II," "PIC V,""PIC VI," "PIC VII," and "PIC VIII." All share the same physical address: 906 Olive Street, Suite 600. That matches the address two other McMillan contributors, Steller Properties and Pyramid Contruction. The eight entities contributed almost $9,000 to McMillan's campaign on the final day of the last reporting period.
Developer John Steffen's Pyramid Construction, Pyramid Commercial Contracting LLC, and PIC, Inc. also donated a total of $3,825 to the campaign of Mayor Francis Slay on March 9, according to campaign finance reports.
Urbanist and blogger Steve Patterson recently wrote an article examining Steffen and Pyramid's influence on decisions made by Ald. Jennifer Florida (15th Ward) relating to a controversial McDonald's development on South Grand Ave. Patterson noted that contributions from Pyramid's companies and employees totaled nearly seven times the limit for individuals.
Click here to read Keller's insightful story in the Southeast Missourian.
Related stories:
VIDEO: Protest of 15th Ward McDonald's development
Mike McMillan: Cash Collector
4th District Finances
60th District Finances
3 Comments:
I don't believe ward committees (or township committees either) get the same special treatment as political party district committees for state house, senate, congressional districts and judicial districts.
But the committees that qualify can actually contribute up to 20 times (not just 10) the limits for individuals and ordinary PACs. The limit is 10x for cash and an additional 10x for in-kind contributions, so a committee that's maxed out on cash can simply arrange to pay directly for some campaign expense (like a mailing) to qualify for the additional limit for "in kind" contributions. Also, unlike a PAC or even a ward or township committee, these committees are "party committees," not "continuing committees," which means that a candidate (like Hubbard) can legally control the party committee for the 58th district even though the law (according to the Missouri Ethics Commission) would prohibit a candidate from controlling a "continuing committee."
Isn't this fun?
4/29/2006 5:23 PM
Politicians make (or don't make) the campaign finance laws.
Big business (developers, corporations, etc.) use $$$ to buy candidates and get them elected to so they can do thier bidding.
Don't look for any REAL campaign finance law changes. Those involved like things just the way they are.
5/01/2006 2:19 PM
Oracle, you are right for once on an ethics commission issue. the Leg. and Sen. Committees can give 10x monitary and 10x in-kind.
But how else are people going to finance their campaigns??? I would support no limit full disclosure, and get rid of all the extraneous committees.
5/02/2006 8:07 AM
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