Congress has been delaying implementation of the STOCK Act, largely out of fear over what could happen if disclosures go online. A new report from the National Academy of Public Administration says those fears are well-founded. But its reasoning is flawed, and its recommendations -- which amount to security through obscurity -- are badly wrong-headed. If there are problems with the disclosures mandated by STOCK, let's fix them. Ignoring them and hoping that obscurity will prevent bad things from happening is not only short-sighted, it's dangerous.
Continue readingIs the U.S. Backtracking on Political Finance Transparency as Others Move Forward?
I recently returned from Croatia, where I was invited to speak about what works and what doesn’t in terms disclosure... View Article
Continue readingSunlight Recommendations to Wyden/Murkowski Disclosure Proposal
Senators Wyden and Murkowski have offered a proposal to shine a light on dark money, and opened it up to... View Article
Continue readingCourt Decision Should Embolden More Action on Transparency
Last week, the US Court for the District of Columbia rejected a challenge to a longstanding federal law that bans... View Article
Continue readingHow Independent are Outside Groups? Not very.
Almost a quarter of the $1.2 billion spent in this election cycle ($292.6 million.) has come from dark money organizations, typically 501(c) groups, which are not required to disclose their donors. These groups, led by Karl Rove’s Crossroads GPS and the U.S. Chamber of Commerce, are afforded such leeway because they cast themselves as “social welfare organizations” engaged in non-political issue advocacy. These organizations claim to be independent of the political party infrastructure, and the overtly political super PACs, but their behavior suggests otherwise. We find, instead, that many of these groups' allocations of resources closely resembles the patterns observed in party committees, like the Democratic Senatorial Campaign Committee (DSCC) or the National Republican Congressional Committee (NRCC). We looked at the 33 outside groups with over $2 million in total spending as of November 2nd, excluding those organizations, which had only spent on the presidential race. By looking at which candidates these groups have spent in support or opposition of, as well as how much they have spent, we have calculated the group’s spending similarity to the Republican and Democratic Senatorial and Congressional committees. These scores range from -1 to 1. A score of 1 indicates that a group allocates its funds across the relevant races in exactly the same ratios as the committee to which it is being compared, and -1 indicates perfectly opposed allocations. Of the groups analyzed spending in the Senate, the average similarity score for that group as compared to the party committee with which it is aligned was 0.395. In the house the effects were notably weaker, with an average similarity score as compared to the aligned party committee of only 0.171. This indicates that outside groups pick and choose the House races in which to be involved much more selectively in the House than the Senate, as compared to party committees whose spending is more widespread. A highly similar spending allocation indicates that an organization is working towards the same strategic goals as one of the party committees, while a directly opposing allocation indicates that it is working against that committee’s goals. One might expect that non-political groups would appear more independent than the overtly partisan super PACs. Were this the case, ‘non-political’ 501(c)s would tend to have scores closer to 0 than super PACs. However, analysis of the data here finds no evidence, that the spending of these 501(c) groups is any less partisan than the registered super PACs. Our analysis found no statistically significant variation in these similarity scores between super PACs and the 501(c)s. If anything, the dark money groups seem to emulate one party’s spending or oppose the others spending to greater extent than do the super PACs. Instead, we find high levels of similarity between the party committees and their aligned outside group, which calls in to question the independence of these controversial groups.
STOCK Act Sausage Making
If ever there were an example of knee-jerk legislating, the STOCK Act may be it. A thoughtful and comprehensive bill, introduced by Rep. Slaughter, languished for years until some bad publicity made Members of Congress decide to “take action.” But in their haste to demonstrate they were responsive to the public’s outcry over allegations of congressional insider trading, Congress passed a watered down version of the bill. Furthermore, since passing the STOCK Act, Congress has twice acted to delay implementation of the bill, citing the risk of unintended consequences of the transparency measures they enacted. The hurry up and wait method of legislating leaves one to wonder what will be disclosed when the sausage making is complete.
Continue readingOne Step Forward Two Steps Back
Transparency advocates suffered a setback today, when the US Court of Appeals for the D.C. Circuit in Van Hollen v.... View Article
Continue readingShow us the Obama and Romney Super PAC donors
On the eve of the Democratic convention, Priorities USA Action, the super PAC that is supporting President Barack Obama's reelection campaign, has announced that it raised $10 million in August, via this report in the New York Times. However, we won't know who has donated this money until official reports are due at the Federal Election Commission (FEC) later this month.
Restore Our Future, the super PAC supporting Republican presidential nominee Mitt Romney, has not yet released its fundraising totals for August. In July, the group raised $7.5 million. Top donors to the group include Casino magnate ...
Continue readingThere Oughta Be a Law
As the pundits debate what the addition of Paul Ryan to the GOP presidential ticket means for the race, one... View Article
Continue readingShareholders: The Next Transparency Advocates
A new breed of transparency advocate is making itself heard this week, taking to the streets and to corporate boardrooms... View Article
Continue reading