Sunlight Foundation

Presidential Cribs and Personal Financial Disclosure

Since the presidential race has turned into an episode of MTV Cribs - next up, web ads with seizure inducing editing of million dollar homes - I figured that it would be worth while to look at the personal financial disclosures of John McCain and Barack Obama to see what information we can find on their houses.

Oh wait, what's that? Personal financial disclosure rules don't require the listing of residential properties. That's why no one knew about Chris Dodd's favorable mortgage from Countrywide or Rep. Laura Richardson's two foreclosures.

Looking at Obama and McCain's form I can see that some of McCains eight to eleven residential properties are listed under Cindy McCain's name while Obama's home is not listed. Here are some of the ones listed on the McCain financial disclosure:

Residential Real Estate Held for Investment, Coronado, CA - Over $1 million

Sedona Property, Cornville, AZ (Two Parcels. Parcel 1: Residence and Guest House. Parcel 2: Guest House.) - Over $1 million

Those are only two residential property listings that appear in both candidates financial disclosures. There are few proposals flying around Congress to require home disclosure on personal financial disclosures. Perhaps they should address this.

On another personal financial disclosure related topic, I noticed the Mark Nicholas used our Fortune 535 site to compare the net worth of Barack Obama and John McCain. Unfortunately, the site uses as its most recent filing, the 2007 report, which represents the year 2006. This was prior to the huge profits made by Obama through royalties from his latest book. So, if you want to get the most recent average net worth, you'd have to look at his 2008 report (covering 2007), in which he reports well over a million in assets.

John McCain is another story. McCain is the only member of Congress who still checks a box that lists asset value at "Over $1 million". He does this under an exemption rule allowing the filer to not identify the actual range, over $1 million, if the asset is held by a spouse or dependent child. I should reiterate that McCain is the only member of Congress who claims this exemption and fills out the "Over $1 million" box for many assets. John Kerry, Dianne Feinstein, Jane Harman, and Nancy Pelosi all list the highest accurate value range for their spouse's large holdings; John McCain does not. Considering this, John McCain, when combined with the actual value of Cindy McCain's holdings, is worth much more than the amount we extracted from his personal financial disclosures for Fortune 535.

Bottom line: Obama worth more than listed and McCain worth way more.

Where does the money go?

This year's presidential election started in January 2007 and continues apace with the field of over a dozen in the two major parties narrowed down to two. By the end of May 2008,  all of these candidates spent over $900 million in attempting to reach the White House. We always talk about where this money comes from, the New York Times created this awesome graphic to tell us where it goes. Also check out the accompanying story:

Young Donors Max Out, Need Diapers Changed

Competition among bundlers is getting so competitive that fundraisers are getting their children to chip in. These aren’t grown children by the way; these are toddlers, babies, and prepubescent children without incomes - unless of course they’re working as cockney bootblacks (“Straight shine’s a nickel; super buff’s a dime!”). The Washington Post reported yesterday on this effort by bundling donors using their children and nieces and nephews as ways of funneling ever more money into the coffers of their favored candidate.

Such campaign donations from young children would almost certainly run afoul of campaign finance regulations, several campaign lawyers said. But as bundlers seek to raise higher and higher sums for presidential contenders this year, the number who are turning to checks from underage givers appears to be on the rise.

"It's not difficult for a banker or a trial lawyer or a hedge fund manager to come up with $2,300, and they're often left wanting to do more," said Massie Ritsch, a spokesman for the Center for Responsive Politics. "That's when they look across the dinner table at their children and see an opportunity."

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Ron Paul and Real Time Transparency

My continuing joke about Ron Paul around the Sunlight office is that he would win in a landslide if all of his supporter’s MMORPG characters were allowed to vote. (That’s massively multiplayer online role playing game for those not hip to the slang.) All jokes aside, it appears that Paul’s supporters can sure raise a lot of money. In the 3rd Quarter of this year Ron Paul raised just over $5 million putting him slightly behind a former frontrunner John McCain, who raised $6 million. Paul has now set a goal of raising $12 million in the 4th Quarter and is using his Web site to show progress in achieving that goal.

Where Howard Dean had his bat Ron Paul has his Statue of Liberty. The Statue measures the amount raised so far, updating in real time, as Paul reaches his goal of $4 million in October. While Dean and others used these kinds of visuals tools to highlight fundraising during a key period this kind of fundraising transparency has never been done in real time over an entire quarter. Paul’s Web site also shows the names and hometowns of the donors. All of this data cries for one thing and one thing only: user generated content!

Paul’s Internet supporters instantly took all of this information and created their own site, RonPaulGraphs.com, which breaks down the fundraising into tons and tons of graphs. Here’s a couple of my favorites:

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Talk of Transparency on Campaign Trail

The Reason Foundation has been getting the presidential candidates to talk more about transparency on the campaign trail by asking them to sign a pledge to run a transparent administration and fully enforce the Federal Funding Accountability and Transparency Act of 2006, also known as Coburn-Obama. The FFATA requires the Office of Management and Budget to disclose all federal funding contracts, grants, and earmarks in a searchable database. The Sunlight Foundation was a part of a coalition of groups that worked to pass the bill, in particular working to out the Senator with a secret hold on the bill. So far, three candidates - Barack Obama, Ron Paul, and Sam Brownback - have signed the pledge. It's great to see transparency taking a hold as an issue in the 2008 presidential election. Hopefully, we'll hear from more candidates on the issue soon. For now, check out below for the statements made by the three pledge signees.

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