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Making sense of campaign dollars

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Friday, July 27, 2012 10:41 PM

DENVER — If Republicans win control of the state Legislature this year, they can thank big donors like Bresnan Broadband Holdings, Encana Oil & Gas and Walmart.

And if Democrats take the statehouse, they also can thank big donors, like Bresnan Broadband Holdings, Encana Oil & Gas and Walmart.

Those companies, and 60 others, are funding both sides of the war for the state Legislature, a Journal analysis has found.

In fact, the four main campaign committees — two each for Republicans and Democrats — have raised the majority of their money in 2012 from companies that also gave to the other side.

With just one exception, all 63 of these companies currently retain lobbyists at the state Capitol, either directly or through a trade association. And the last company, Trapper Mining of Craig, used to have a lobbyist but currently does not.

Few close observers of the Legislature believe that lawmakers trade their votes for campaign cash. But still, these 63 companies have positioned themselves as allies of whoever wins in November.

“I don’t think you could buy a legislator,” said John Straayer, a Colorado State University professor who is a regular fixture at the state Capitol. “But you can buy a Legislature. That’s what we’re seeing here.”



A PRICEY WEEK



McCormick’s Fish House sits on a prime corner in Denver’s Lower Downtown district, an easy walk from Coors Field.

The swanky national chain is famous for its happy hour bargains, with burgers and appetizers as cheap as $2.

The night of Jan. 12, though, the prices were a thousand times more expensive at some of the tables.

The occasion was a fundraiser for the Colorado Accountable Government Alliance and the Coalition for Colorado’s Future — the two main Democratic “527” groups that soon will be funding attack ads for the fall election. Together, the groups made a $200,000 haul that evening.

Many of the same donors lightened their wallets just days earlier at fundraisers for two Republican 527s, known as the Senate Majority Fund and the Colorado Leadership Fund.

In that one week, Democratic 527s stockpiled more than two-thirds of the $296,000 in campaign money they raised in the first half of 2012. Republican groups raised half of their $602,000 war chest.



HEAVY HITTERS



When it comes to elections for the state Legislature, these four 527s are the heavy hitters. The National Institute on Money in State Politics found that between 2006 and 2010, outside groups spent as much money on Colorado legislative campaigns as the candidates themselves.

The groups are called 527s after a portion of the federal tax code. They have been around for several election cycles. Formally, they are forbidden from coordinating with candidates.

However, they are independent in name only. Representatives and senators help run them and appear at their fundraisers.

Unlike individual candidates, 527s can raise money from lobbyists during the legislative session. Those January fundraisers happened the same week the Legislature convened for the year.

The Colorado Supreme Court ruled in February that 527s can accept unlimited donations as long as their ads don’t use the “magic words” of “vote for,” “elect” or “defeat” a certain candidate.

Instead, a typical 527 ad bashes a candidate without specifically asking people to vote a certain way, such as a 2008 Hillary Clinton ad criticizing her opponent in the primary, saying, “Call Barack Obama and tell him to support health care for all Americans.”

“Everybody knows what those ads are for. We all know what the real message is,” said Luis Toro, director of Colorado Ethics Watch.

Toro’s group unsuccessfully sued the state to bring 527s under stricter campaign finance regulations.

Now, Toro is worried that looser campaign finance rules will help companies hide their political spending.

“I don’t think anybody can really say with confidence that those are the largest 527 spenders,” Toro said.

But they are the biggest fundraisers of any publicly disclosed committee in Colorado, raising more money than even the official Republican and Democratic parties.



MORE MONEY



The fundraisers continue this summer.

On June 28, the House Republicans’ 527, the Colorado Leadership Fund, invited donors to a suburban Denver miniature golf course.

For an unspecified donation, a company could be the title sponsor and golf in a foursome that included Speaker of the House Frank McNulty, R-Highlands Ranch. For $25,000, companies could get their logo on signs at the event and enter a team of three people to golf with another member of House GOP leadership, according to an invitation to the fundraiser.

Democrats do it, too.

On July 31, the Senate Democrats’ Campaign for Colorado’s Future plans to hold a Star-Spangled Banner happy hour at a downtown Denver venue.

Companies paying $10,000 for an “Uncle Sam” level sponsorship include HealthOne, Viaero Wireless and several unions. The list of $5,000 “Statue of Liberty” sponsors includes AT&T, Bridgepoint Education and Isle of Capri casinos, according to an invitation to the event.

The size of the donations raises troubling questions for Straayer, the CSU political scientist.

“What about the guy on the street? What about the public interest? Is there one?” Straayer said.



joeh@cortezjournal.com

How it was done

The Journal examined campaign finance reports for every registered political committee in Colorado and identified the four main 527s for 2012. We then examined in detail the donations to the top four and identified 63 companies that give to both sides. Finally, we cross-referenced the list of companies that gave to both parties with a database of registered lobbyists at the state Capitol. We found that 62 of 63 companies that fund both parties’ campaign groups use a lobbyist at the Capitol, most directly but a few through a trade association. The 63rd company has employed a lobbyist in recent years but not in 2012.
All the data the Journal used in this report is freely available on the Secretary of State’s website, www.sos.state.co.us, although it requires extensive searching of different databases and it can be time-consuming to piece together the reports.
Tuesday: Money is key to victory in November. This will be the second installment of the two-part series.

Funding both sides of the war

Corporations that donated to both Republican and Democratic 527s in Colorado:

Finance and insurance
Allstate Insurance
COPIC Insurance Company
Friends of Farmers (insurance)
JP Morgan Chase & Co. PAC

Health
Allergan USA
Colorado Academy Of Family Physicians Small Donor Committee
Colorado Health Care Association
Davita
Eli Lily And Company
Genentech
Healthone Systems Support
Medco Health Solutions
Mednax Federal Political Action Committee
Pfizer
Pharmaceutical Research And Manufacturers Of America Colorado Action Fund (PHRMA)
Professional Pediatric Home Care
Rocky Mountain Dental Association
Rx Plus Pharmacies
United Health Care Services

Education
Apollo Group (University of Phoenix)
Bridgeport Education (University of the Rockies)

Tourism and entertainment
American Resort Development Association
Colorado Ski Country USA
Ed And Shirley’s Wild Card Saloon
Preserve Colorado’s Economy (Casino group)
Vail Resorts

Food and agriculture
Colorado Association Of Wheat Growers State Political Committee
MillerCoors
Pepsico
Political Action Trust (dairy farmers)

Communications and technology
Bresnan Broadband Holdings
Level 3 Communications
Microsoft
T-Mobile USA

Real estate
Building Owners and Managers of Denver Metro

Lobbyists
Brownstein Hyatt Farber Schreck LLP
Capitol Corps LLC

Transportation
BNSF Railway Company
Enterprise Holdings
Environmental Systems Products Holdings (emissions testing)
Keystone Automotive Industries
Metro Taxi
Union Pacific Corp. Fund for Effective Government

Private prisons
CCA of Tennessee
Community Education Centers

Retail
Retailers Of Colorado For A Knowledgeable And Informed Electorate (ROCKIE)
Safeway
Walmart Stores

Oil and Gas, energy
Anadarko Petroleum Corporation
Bill Barrett Corporation
Care Membership Organization LLC (rural electric coops)
Chesapeake Operating Inc
Colorado Mining Association
Encana Oil & Gas (USA)
Freeport-McMoran Copper & Gold
Fund For Colorado’s Energy Future
Marathon Oil Company
Trapper Mining
United Power
Xcel Energy

Other
The Colorado OHV Coalition
Waste Management

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