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Do IT this week: Layering
Campaign finance reform still a myth
By Dennis Willard
Published on Sunday, Aug 26, 2007
COLUMBUS: Campaign finance reform always seems to be a Sisyphusian effort in Ohio.
Like the frustrated Greek mythological figure who repeatedly pushes a boulder up a hill, only to witness the stone roll back down again and again, legislators have passed new laws to restore public trust in candidates, only to be embarrassed when loopholes they inserted raise new questions about their so-called campaign finance reform.
The difference between Sisyphus and legislators is that the Greek is a sympathetic figure.
Ohio's current campaign finance system hinges on full disclosure and limited contributions.
The public should be able to follow the money, and caps on contributions should ''level the playing field'' for individuals and political action committees.
This is a myth.
Last week, lawyers for Secretary of State Jennifer Brunner and a pro-charter school PAC named All Children Matter Ohio squared off before the Ohio Elections Commission.
Brunner alleges the Ohio PAC exceeded contribution limits and illegally received $870,000 from a sister PAC based in Virginia that never registered in Ohio.
The true source of the money was hidden because the Virginia PAC dumped the dollars into Ohio through five and six-figure checks.
The Ohio PAC spent the money on 29 Republican candidates for statewide office, the General Assembly and the State Board of Education.
There is an Akron angle. David Brennan, the charter school entrepreneur, gave money to the Virginia PAC.
The Ohio PAC either contributed directly to or paid for direct-mail pieces and radio advertising for Mary Taylor, who was elected state auditor, state Sen. Kevin Coughlin, R-Cuyahoga Falls, failed state House candidate Tom Cousineau and state school board member Deborah Owens Fink, who was unseated.
Let's clear the legal cobwebs here.
Brunner is arguing that so-called fat-cat contributors such as Brennan are maxing out on their contribution limits to candidates in Ohio. They then contribute to a PAC in Virginia. The out-of-state PAC launders the money back to Ohio in a way that cannot be traced directly to the fat cats.
This does trample the spirit of Ohio's campaign finance reform.
But let's be honest. Ohio's campaign laws are filled with so many loopholes for PACs, parties, candidates and caucuses that there is no need to cross state boundaries to bypass contribution limits and circumvent disclosure requirements.
Time and space today allow us to look at just one example symbolizing the furtive movement of money in the system.
Last year, 10 candidates for state representative, including Jon Husted, R-Kettering, faced no opposition in the general election. Essentially, they were elected when the polls closed after the primary on May 2.
Although they had no reason to do so, the 10 candidates raised $1.46 million after securing their seat and spent even more $1.87 million because they had money left over after the primary.
According to campaign finance reports maintained by Brunner's office, Husted spent $1.2 million. Bill Seitz, R-Cincinnati, spent $173,000, and Jim Carmichael, R-Wooster, spent $111,000. Republicans are not the only ones funneling money. Armond Budish, D-Mansfield, an unopposed freshman in an open seat, spent $238,000 after the primary.
Legislators who are unopposed or in secure seats and raise money for candidates in heavily contested races to avoid Please see Willard, B3
contribution limits and disclosure are called ''banks.''
These ''banks'' launder the money to the point where it is impossible to determine whether the funds came from an individual or a PAC that had already contributed the maximum to a candidate in a contested race.
So the contribution limits and the disclosure requirements in Ohio's campaign finance laws are meaningless.
The All Children Matter Ohio PAC could have used this and other loopholes to collect and distribute funds to candidates without landing before the elections commission or eventually in court with Brunner.
Brunner alleges the Virginia PAC didn't register in Ohio and therefore did not have the legal standing to move money to its affiliate, All Children Matter Ohio. But what Brunner's legal beef really amounts to is that the Ohio PAC violated the law because it didn't follow the rules established by legislators to launder campaign contributions in Ohio.
And that's no myth.
Dennis J. Willard can be reached at 614-224-1613 or dwillard@thebeaconjournal.com.
Get the full article here.
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