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Context of 'May 5, 2011: Nonpartisan Campaign Finance Watchdog Determines that Conservative Supporters Outspent Liberal Counterparts 8-1 in 2010 Election Cycle and After'

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In an interview with PBS’s Judy Woodruff, Haley Barbour, the chairman of the Republican Governors Association (RGA), falsely claims that Democrats are outspending Republicans in the midterm election campaigns. The elections are tomorrow, November 2. Barbour agrees with projections that Republicans will do very well in tomorrow’s elections, probably taking back control of the US House and perhaps the US Senate as well. Barbour predicts a stronger sweep than the 1994 elections, which put Republicans in control of both houses of Congress, motivated by Americans’ “anger and even fear” at what he calls “the lurch to the left given us by [Democratic House Speaker Nancy] Pelosi and [President Barack] Obama.” Barbour goes on to claim that one difference between 1994 and 2010 is that “this year, we got outspent pretty heavily. The labor unions saw this coming early, and they have poured money in to try to save Democrat seats. And it hasn’t been any secret to the news media or the Democratic incumbents that this was going to be a hard year for them because the president’s policies are unpopular.” Woodruff does not challenge Barbour’s claims. [PBS, 11/1/2010] In reality, Republican and Republican-supporting organizations have outspent Democrats and their supporters by a 3-1 ratio (see September 13-16, 2010, October 2010, and Around October 27, 2010). Data from the nonpartisan Center for Responsive Politics shows that while the Democratic Party does outspend the Republican Party in the 2010 elections, pro-GOP outside groups have vastly outspent labor unions and other organizations supporting Democrats. The four biggest outside groups spending money on the elections—the US Chamber of Commerce, the American Action Network (see Mid-October 2010), American Crossroads, and Crossroads GPS—all spend their money on behalf of Republicans. Together those four groups spend $99.6 million, far more than the $28.1 million spent on behalf of Democrats by the two largest labor unions. American Crossroads and Crossroads GPS intend to continue spending money to attack Obama and the Democrats even after the election. “It’s a bigger prize in 2012, and that’s changing the White House,” says American Crossroads chairman Robert Duncan. “We’ve planted the flag for permanence, and we believe that we will play a major role for 2012.” American Crossroads and other such groups, on both Republican and Democratic sides, intend to continue fundraising in the wake of the midterm elections and begin campaigning almost immediately for the 2012 presidential elections. Privately, some Democratic strategists say they are not sure how they will answer the challenge posed by Republican-supporting “independent” groups and the huge amounts of cash they raise from wealthy corporate donors. Obama’s senior political advisor David Axelrod says that special interests “have driven a huge truck filled with undisclosed cash through a legal loophole to try and buy this election… is it any surprise that this same, stealthy crowd will try to move on to the White House next? Whatever the outcome Tuesday, this issue is not going away.” [New York Times, 10/31/2010; Washington Independent, 11/1/2010; Think Progress, 11/2/2010]

Entity Tags: David Axelrod, American Crossroads, American Action Network, Center for Responsive Politics, US Chamber of Commerce, Robert Duncan, Democratic Party, Haley Barbour, American Crossroads GPS, Republican Party, Judy Woodruff

Timeline Tags: Civil Liberties

The Center for Responsive Politics (CRP), a nonpartisan campaign finance watchdog organization, finds that independent organizations supporting Republicans and Democrats are spending unprecedented amounts of money on supporting, or more often attacking, candidates for office. The huge rise in spending comes as a direct result of the Citizens United decision that allowed corporations and labor unions to spend unlimited amounts of money on campaign donations (see January 21, 2010). While organizations are spending huge amounts of money on both sides of the political divide, spending for conservative candidates outweighs spending on liberal candidates by an 8-1 margin. CRP’s analysis finds that the increased spending helped Republicans retake the US House of Representatives in 2010, and is having a long-term effect on the nation’s campaign and election systems. [Center for Responsive Politics, 5/5/2011; Think Progress, 5/6/2011]
Most Democratic Spending Comes from Unions - Labor unions gave over $17.3 million in independent expenditures opposing Republican candidates. The union contributing the most: the American Federation of State County and Municipal Employees (AFSCME), with over $7 million. The National Education Association (NEA) formed a “super PAC” (see March 26, 2010) that spent $3.3 million on election activities. Super PACs must disclose their donors and the amounts donated (see 2000 - 2005), but an array of groups under the 501(c) tax laws do not have to disclose that information (see September 28, 2010).
Corporations Spend Lavishly for Republicans - While corporations donated some money to Democratic causes, most of their money went to Republicans. Corporations gave over $15 million to super PACs such as American Crossroads, which supports an array of conservative candidates. CRP notes that conservative groups that do not have to disclose their donors spent $121 million, and corporations and wealthy individuals were the likely sources of almost all of that money.
Secret Donations on the Rise - In the 2006 elections, the percentage of spending from groups that do not disclose their donors was 1 percent. In 2010, it was 47 percent. “Nonprofit” organizations that can legally hide their donors and donations increased their spending from zero percent in 2006 to 42 percent in 2010. For the first time in over 20 years, outside interest groups outspent party committees, by $105 million. The amount of independent expenditure and electioneering communication spending by outside groups has gone up 400 percent since 2006. And 72 percent of political advertising spending by outside groups in 2010 came from sources that were prohibited from spending money in 2006. [Center for Responsive Politics, 5/5/2011]

Entity Tags: American Crossroads, American Federation of State County and Municipal Employees, US House of Representatives, National Education Association, Center for Responsive Politics

Timeline Tags: Civil Liberties

The New York Times reports on fundraising activities by two prominent super PACs, the Republican-favoring American Crossroads and the Democratic-favoring House Majority PAC. American Crossroads reports raising $3.8 million since the beginning of the year, almost all of that money coming from a few wealthy donors: former Univision chairman A. Jerrold Perenchio ($2 million), Robert B. Rowling ($1 million), and Bob Perry ($500,000). The House Majority PAC, which has not been in existence as long as American Crossroads, raised $800,000 in that same time period—less than a fourth of that raised by American Crossroads—with a larger number of lesser donations. Some of its donors include S. Donald Sussman ($150,000), Fred Eychaner ($100,000), George Soros ($75,000), and labor unions such as the American Federation of State, County and Municipal Employees (AFSCME) and the Communications Workers of America (CWA). The House Majority PAC has spent over half of its donations on US House races. Both super PACs filed earlier than the July 15 reporting date because of activity surrounding a recent special House election in New York. Super PACs are allowed to raise and spend unlimited amounts, but must report their donations and their donors. [New York Times, 6/24/2011]

Entity Tags: Communications Workers of America, A. Jerrold Perenchio, American Crossroads, Bobby Jack Perry, S. Donald Sussman, New York Times, Fred Eychaner, George Soros, American Federation of State, County and Municipal Employees, House Majority PAC, Robert B. Rowling

Timeline Tags: Civil Liberties, 2012 Elections

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