October, 2012

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CNBC: Here’s How Much Candidates Spend to Get Your Vote

Thursday, October 25th, 2012

Barack Obama and Mitt Romney are spending a combined $26.86 every second this election cycle, as a binge of campaign spending deluges voters with rallies, banners, and of course, TV ads.

CNBC

The figure comes from a grand total of nearly $1.5 billion spent by both sides just through September. And that works out to about $70 million per month, and more than $2.3 million every day, according to data provided by the Federal Election Commission.

No wonder both candidates spend so much time in fundraisers.

From January 2011 through September, the Obama campaign burned through over $470 million, with the Democratic National Committee spending another $255 million.

And the top three Obama Super PACs dumped in another $53.7 million. All that totals more than $775 million dollars spent — before the crucial election month of October.

On the Romney side, the campaign had spent $298 million in that same time frame, which was joined by $249 million by the Republican National Committee and $156.5 million from the top three Romney Super Pacs. All told, that’s more than $700 million.

The Obama team held the lead by about $75 million as of September.

Historically, these are big, big numbers.

In 1980, Jimmy Carter and Ronald Reagan plus the DNC and RNC spent a combined $528 million in 2012-adjusted dollars. By 2000, that figure had jumped to $899 million in adjusted dollars.

That means the campaigns are spending a lot more per voter than they did years ago. Take a look at the math.

With more than $770 million in campaign and Super Pac spending for Obama this year, the forces supporting the president have spent about $5.33 per registered voter when you calculate using the total number or registered voters in the last campaign, which was just over 146.3 million.

Romney’s team, similarly, has spent about $4.81 per voter. Combined, that’s $10.14 per registered voter.

(Read More: Wall Street Gaming Romney Win: ‘Trillion at Stake’)

Compare that to how much it cost to reach registered voters in 1980: The $528 million spent by Reagan and Carter campaigns plus their parties reached fewer voters — 105 million registered voters. That made total spending over $5 per registered voter.

Election 2012

Your Money Your Vote - A CNBC Special Report

Twenty years later, George W. Bush and Al Gore and their party committees combined spent $899 million to reach that year’s nearly 130 million registered voters. That’s just under $7 per registered voter.

By our math, the cost to reach each voter in America has gone up consistently over the past three decades. There’s lesson in that for the campaigns and the fundraisers who push for ever more cash each year: that flood of money is causing political inflation. And that makes the constant reach for new fundraising records a self-fulfilling prophesy

ZeroHedge: Meet The Billionaires Behind The Best Presidents Money Can Buy

Sunday, October 21st, 2012

The last time we checked on the (funding) status of America’s real presidential race – the one where America’s uber-wealthy try to outspend each other in hopes of purchasing the best president money can buy – the totals were substantially lower. With November 6 rapidly approaching, however, the scramble to lock in those record political lobbying IRRs is in its final lap.

And thanks to the unlimited nature of PAC spending, look for the spending to really go into overdrive in the next 2 weeks as the spending frenzy on the world’s greatest tragicomedy hits previously unseen heights.

ZeroHedge

RESTORE OUR FUTURE

Total raised as of Sept. 30: $110.5 million – supports Republican presidential candidate Mitt Romney

  • Bob Perry – Houston builder who was a major donor to Swift Boat Veterans for Truth, a group that helped undermine 2004 Democratic presidential nominee John Kerry by attacking his Vietnam War record. Total donations: $10 million
  • Sheldon Adelson – billionaire Las Vegas casino magnate who built the Venetian hotel and casino. Donation: $5 million
  • Miriam Adelson – Sheldon’s wife. Donation: $5 million
  • Bill Koch – brother of conservative financiers David and Charles Koch. He runs Oxbow Carbon, a Florida-based firm that is also a donor and shares its address with another contributor, Huron Carbon. Total donations, including through firms: $4 million
  • Steven Lund – runs Nu Skin, a Utah skin care and cosmetics company whose former executives have been linked to two other firms that share an address in Provo, Utah, and donated to the Super PAC: F8 LLC and Eli Publishing. Lund’s wife Kalleen is also a donor. Total donations from the Lunds and firms: $3 million
  • Julian Robertson – hedge fund industry legend at Tiger Management. Total donations: $1.3 million
  • Crow Holdings – Dallas-based investment firm managing the wealth of the family of the late Dallas real estate mogul Trammell Crow, whose sons Harlan and Trammell S. Crow are also donors. Total Crow Holdings and Crow donations: $1.3 million
  • Harold Simmons – billionaire Dallas banker and CEO of Contran Corp who has contributed to PACs supporting Rick Perry and Newt Gingrich. Donations: $1.3 million
  • Frank VanderSloot – Idaho businessman who runs the nutritional and cosmetics company Melaleuca. The firm and its subsidiaries have also donated. Total donations: $1.1 million
  • The Villages of Lake Sumter – a community in Florida run by billionaire Gary Morse, who is also a donor alongside his wife Renee and their several children. Along with the Morse family, thirteen companies controlled wholly or partially by Morse that share an address in The Villages have also contributed. Total donations of all: $1.7 million.
  • Kenneth Griffin – Chicago-based hedge fund manager and CEO of Citadel LLC. Total donations: $1.1 million
  • Bob Parsons – billionaire founder of web hosting giant Go Daddy. Donation: $1 million
  • Jim Davis – chairman of New Balance Athletic Shoes Inc. Donations: $1 million
  • Stanley Herzog – CEO of Missouri-based Herzon Contracting Corp. Donation: $1 million
  • Bruce Kovner – billonaire hedge fund manager at Caxton Alternative Management. Donation: $1 million
  • Rocco Ortenzio – Pennsylvania healthcare executive and founder of Select Medical Corp. Total donations: $1 million
  • John Childs – founder of private equity firm J.W. Childs Associates LP in Florida. Donation: $1 million
  • Edward Conard – a New York investor and former executive at Bain Capital, a private equity firm co-founded by Romney. Donation: $1 million
  • John Kleinheinz – Texas hedge fund manager for Kleinheinz Capital Partners Inc. Donation: $1 million
  • J.W. Marriott Jr. – chairman and CEO of Marriott International, brother of Richard. Total donations: $1 million
  • Richard Marriott – chairman of Host Marriott International. Total donations: $1 million
  • Robert McNair – owner of the Houston Texans football team. Donation: $1 million.
  • Robert Mercer – New York hedge fund manager at Renaissance Technologies. Donation: $1 million
  • John Paulson – a prominent New York hedge fund manager at Paulson and Co. Donation: $1 million
  • Rooney Holdings Inc – private investment firm formed in 1980s to acquire the Manhattan Construction Co. and has since expanded into many areas. Total donations: $1 million
  • Paul Singer – hedge fund manager who helped fund efforts to legalize gay marriage in New York. Donation: $1 million
  • Paul and Sandra Edgerly – Paul Edgerly of Brookline, Massachusetts, is an executive at Bain. The Edgerlys each have given $500,000. Total donations: $1 million
  • Steven Webster – private equity executive at Avista Capital in Houston. Total donations: $1 million
  • Robert Brockman – executive at Reynolds and Reynolds, a Dayton, Ohio-based car dealership support company that shares a P.O. Box with CRC Information Systems Inc, Fairbanks Properties LLC and Waterbury Properties LLC, which split the donation three ways. Total donations: $1 million
  • Miguel Fernandez – chairman of MBF Healthcare Partners, a private equity firm. MBF Family Investments also donated to the Super PAC. Total donations: $1 million
  • Renco Group Inc. – owned by New York billionaire Ira Rennert, another frequent contributor to Republicans this year. Donation: $1 million
  • OdysseyRe Holdings Corp – reinsurance underwriting company in Stamford, Connecticut that is a U.S. subsidiary of Toronto-based Fairfax Financial. Donation: $1 million

 

PRIORITIES USA ACTION

Total raised as of Sept. 30: $50.1 million – supports Democratic President Barack Obama

  • James Simons – billionaire hedge fund manager, founder of Renaissance Technologies Corp. Donation: $3.5 million
  • Fred Eychaner – founder of Newsweb Corp. Donation: $3.5 million
  • Jeff Katzenberg – chief executive of DreamWorks Animation. Donation: $3 million
  • Steve Mostyn – Houston attorney. Donation: $2 million
  • Irwin Mark Jacobs – former CEO of Qualcomm Inc. Donation: $2 million
  • Jon Stryker – billionaire activist and heir to the medical supply company fortune of his grandfather. Donation: $2 million
  • Anne Cox Chambers – billionaire daughter of James M. Cox, founder of Cox Enterprises. Total donations: $1.5 million
  • National Air Traffic Controllers Association – union representing more than 16,000 workers. Donation: $1.3 million
  • S. Daniel Abraham – billionaire creator of Slim-Fast brand, chairman of S. Daniel Abraham Center for Middle East Peace. Donation: $1.2 million
  • Barbara Stiefel – retiree in Coral Gables, Florida. Donation: $1.1 million
  • United Auto Workers – Donations through various funds: $1.1 million
  • Kareem Ahmed – chief executive at Landmark Medical Management in California. Donation: $1 million
  • David Boies, Jr – New York lawyer. Donation: $1 million
  • Morgan Freeman – Hollywood actor. Donation: $1 million
  • Amy Goldman – writer and heiress to the New York real estate fortune of Sol Goldman. Donation: $1 million
  • Franklin Haney – owner and CEO of FLH Company, a Washington-based real estate company. Donation: $1 million
  • Bill Maher – stand-up comedian. Donation: $1 million
  • Mel Heifetz – real estate developer and gay activist. Donation: $1 million
  • Michael Snow – Minnesota lawyer. Donation: $1 million.
  • Steven Spielberg – film director. Donation: $1 million.
  • Ann Wyckoff – Seattle philanthropist. $1 million.
  • Service Employees International Union Committee on Political Education – union representing more than 2 million workers. Donation: $1 million.
  • United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry – union representing some 340,000 workers. Total donations: $1 million

AMERICAN CROSSROADS

Total raised as of Sept. 30: $68 million – supports Republican candidates for federal offices

  • Harold Simmons – Total donations together with Contran Corp: $15.5 million
  • Bob Perry – Total donations: $6.5 million
  • Robert Rowling – an Irving, Texas, businessman and a conservative and active Republican donor. His company, TRT Holdings Inc, which runs Omni Hotel and Gold’s Gym chains, is also a donor. Total donations: $4 million
  • Joe Craft – billionaire coal executive from Tulsa, Oklahoma, and CEO of Alliance Holdings, which is also a donor. Total donations: $2.1 million
  • Jerry Perenchio Living Trust – a trust of billionaire television tycoon A. Jerrold Perenchio, who is a former chairman of Spanish-language broadcaster Univision. Donation: $2 million
  • Crow Holdings – Dallas-based real estate investment firm. Total donations: $1.5 million
  • Weaver Holdings and Weaver Popcorn – Indiana-based company specializing in popcorn. Total contributions: $1.9 million
  • Stephens Inc – a Little Rock, Arkansas, broker dealer. Total donations: $1.3 million
  • Armstrong Group – telecommunications conglomerate in Pennsylvania. Donation: $1.3 million
  • JWC III Revocable Trust – Donatoin: $1.3 million
  • Robert Brockman – executive at Ohio-based Reynolds and Reynolds. Similarly to Restore Our Future, three firms sharing a P.O. Box – CRC Information Systems Inc, Fairbanks Properties LLC and Waterbury Properties LLC – split the donation three ways. Total donations: $1 million
  • Whiteco Industries – Indiana-based company involved in advertising, construction, entertainment and hotels. Donation: $1 million
  • The Mercury Trust – entity linked to California private equity firm of Saul Fox. Donation: $1 million
  • Clayton Williams Energy Inc – Midland, Texas-based drilling company. Donation: $1 million
  • Jay Bergman – of PETCO Petroleum Corporation. Donation: $1 million
  • Kenneth Griffin – Citadel Investment Group chief executive. Total donations: $1 million
  • Wayne Hughes – Founder of Public Storage. Total donations: $1 million
  • John Childs – Chairman and CEO of Boston-based JW Childs Associates. Total donations: $1 million
  • Philip Geier – New York executive. Total donations: $1 million
  • Irving Moskowitz – a Florida bingo magnate who runs a charity in California and is known for his support of Jewish settlers in East Jerusalem. Donation: $1 million
  • Robert Mercer – co-CEO of hedge fund Renaissance Technologies. Donation: $1 million

 

BARACK OBAMA (Democrat)

  • Total raised, including transfers: $609.4 million
  • Raised in September, including transfers: $136.2 million
  • Total transferred from the funds jointly used by the campaign and the Democratic Party: $176.6 million
  • Transferred in September: $39.8 million
  • Total spent: $469.9 million
  • Spent in September: $111.4 million
  • Cash on hand: $99.3 million
  • Debt: $2.6 million

DEMOCRATIC NATIONAL COMMITTEE

  • Total raised: $253.6 million
  • Raised in September: $20.3 million
  • Total transferred in: $108.4 million
  • Transferred in September: $4.0 million
  • Total spent: $261.6 million
  • Spent in September: $22.8 million
  • Cash on hand: $4.6 million
  • Debt: $20.5 million

OBAMA VICTORY FUND 2012 (The main joint Obama/DNC fund)

  • Total raised: $371.1 million
  • Raised in September: $80.0 million
  • Cash on hand: $45.2 million

 

MITT ROMNEY (Republican)

  • Total raised, including transfers: $337.2 million
  • Raised in September, including transfers: $76.2 million
  • Total transferred from the funds jointly used by the party and the Romney campaign: $236.4 million
  • Transferred in September: $34.2 million
  • Total spent: $298.2 million
  • Spent in September: $54.7 million
  • Cash on hand: $63.1 million
  • Debt: $5.0 million

REPUBLICAN NATIONAL COMMITTEE

  • Total raised: $331.2 million
  • Raised in September: $48.4 million
  • Total transferred in: $127.5 million
  • Transferred in September: $28.6 million
  • Total spent: $249.4 million
  • Spent in September: $42.4 million
  • Cash on hand: $82.6 million
  • Debt: $9.9 million

ROMNEY VICTORY INC (Joint Romney/RNC fund – third quarter, July through Sept.)

  • Total raised: $375.6 million
  • Raised in third quarter: $235.2 million
  • Cash on hand: $37.4 million

Appendix: SUPER PACS:

RESTORE OUR FUTURE, a Super PAC supporting Romney

  • Total raised: $110.5 million
  • Raised in September: $14.8 million
  • Total spent: $94.9 million
  • Spent in September: $4.6 million
  • Cash on hand: $16.6 million

PRIORITIES USA, a Super PAC supporting Obama

  • Total raised: $50.1 million
  • Raised in September: $15.3 million
  • Total spent: $43.6 million
  • Spent in September: $12.8 million
  • Cash on hand: $7.3 million

AMERICAN CROSSROADS, a Super PAC supporting Republicans

  • Total raised: $68.0 million
  • Raised in September: $11.4 million
  • Total spent: $53.4 million
  • Spent in September: $27.9 million
  • Cash on hand: $15.8 million

Source: Reuters

Washington Post: Vendors finesse law barring ‘coordination’ by campaigns, independent groups

Sunday, October 14th, 2012

Mitt Romney’s presidential campaign and American Crossroads, an allied interest group, are barred by federal law from working together on political advertising.

But it’s perfectly legal for them to hire the same company to run Internet ads. That company uses some of the same employees to represent the two clients, and the same databases to store information on people it will target with ads.

Washington Post

By all accounts, Romney’s campaign and the group spending millions of dollars on his behalf are not violating the law that prohibits campaigns and independent organizations from coordinating their efforts.

The law was meant to separate campaigns from outside groups with wealthy donors — the theory being that large political contributions could have a corrupting influence on candidates.

But it is a fuzzy line that separates the campaigns from groups such as Crossroads and the super PACs that have sprung up in the wake of a 2010 Supreme Court decision that allowed unrestricted corporate spending on campaigns. And the 2012 campaign, with its surge in spending from independent groups, offers many examples of how little the law actually prohibits when it comes to “coordination.”

The major super PACs helping President Obama and Romney, for example, were formed by men who previously worked as aides to the candidates.

And at least 30 political consulting companies have been hired by both a campaign or party and an independent group, according to campaign disclosure reports. The consultants provide a range of services, from polling to legal advice to media consulting.

The Democratic Congressional Campaign Committee shares 10 vendors with the major super PAC helping Democrats win House races, the House Majority PAC. The super PAC, for example, paid $31,000 to Ralston Lapp Media to produce television ads, while the DCCC paid $173,000 for the same purpose. Nine Democratic congressional candidates also hired the company.

Contributions to candidates are capped at $2,500 for each election, but for many types of interest groups, there are no restrictions on donations. In order to prevent the groups from becoming de facto extensions of the campaigns, they are prohibited from spending money at the request of candidates or using inside knowledge of their strategies or wishes. But hiring a firm that works for both sides is legal as long as information is not shared.

Advocates for tighter restrictions on political money say the weakness of the law has allowed interest groups to essentially become another arm of the campaigns.

“The real scandal in 2012 is what’s legal,” said Paul S. Ryan, a lawyer with the Campaign Legal Center, which supports tightening campaign finance laws. “Certainly the law does not prevent coordination in the way that word is generally understood by the public.”

Over the past decade, more than 30 complaints of alleged coordination in federal races have been brought to the Federal Election Commission. But the complaints rarely prompt investigations because of the difficulty of collecting private communications that might prove coordination.

The high-tech realm of online ad targeting offers a new example of how tightly integrated campaigns and interest groups can become.

Romney’s campaign has bought $21 million in online advertising through an Alexandria-based ad agency called Targeted Victory, the same firm hired by American Crossroads to run $1 million in ads. The company spends most of that money buying space on the Web through ad networks.

The company also works for the Republican Party, prominent Republican House and Senate candidates, and interest groups active in congressional races, including the American Action Network, Americans for Prosperity and Crossroads GPS, which is affiliated with American Crossroads.

Targeted Victory uses Internet video ads to persuade people to oppose Obama and vote for Romney. It also uses a stockpile of data it has collected on Web users to reach them with ads for both Romney and Crossroads.

Separately, Targeted Victory keeps a record of those who have visited the Romney campaign Web site or the Crossroads site, and stores that information in the same location.

Romney campaign spokeswoman Andrea Saul said the campaign’s vendors “understand the law and follow it.”

Targeted Victory’s chief executive, Michael Beach, said in an e-mailed statement that the company has separate teams of strategists for the two clients, crafting ad messages and finding potential voters online. Those teams work on opposite sides of a “firewall” described in FEC regulations, he said.

“Targeted Victory takes its compliance responsibilities seriously and continually reviews its operations to ensure compliance with the FEC rules,” Beach wrote.

He said the rules allow some employees to work for both Romney and Crossroads, including “personnel who merely forward the Internet ad buys to placement firms.”

FEC regulations specifically point to those working on “the selection or purchasing of advertising slots” as employees with the potential to share inside information that could be used for coordination.

A look at the same custom-built software running on the Romney and Crossroads Web sites shows the tight links between the organizations. When people visit the Romney or Crossroads site, their browsers download software written by Targeted Victory.

The code creates a trigger so that when users press a “donate” button, for example, their browsers report that information, which is kept in a database that commingles Romney and Crossroads users.

When users move on to a site with ads, that starts another chain reaction of code, transmitting the Romney and Crossroads information to ad networks, which may then display Romney or Crossroads ads.

Storing data together and using the same employees to represent Romney and Crossroads is not coordination under the law. To break the rule, an interest group would have to use inside information on the candidate’s needs or wishes to shape its own ad campaign.

Geoff Garin, a Democratic pollster who works for prominent liberal super PACs, said he uses a password-protected computer system to keep sensitive materials from his colleagues who might work directly for candidates or the official party committees. He praised the value of the rules as one of the only defenses keeping the work of candidates and well-funded interest groups separate.

“It seems we have a Swiss-cheese system here,” Garin said. “No offense to Swiss cheese.”

Dan Eggen contributed to this report.

© The Washington Post Company

Salon: Super PAC spending is about to explode

Tuesday, October 9th, 2012

Outside groups have already poured half a billion dollars into the 2012 elections, and they’re just getting started

Salon

Things have taken a turn for the worse for Democrats in recent days — and just as the campaign enters what could be described as the super PAC death zone. Even though we’ve already seen at least $517 million spent by outside groups, almost all of it on attack ads, during this election cycle so far — more than every other cycle since 1990 at similar points combined  — the wave of outside money about to crash down on the race between now and election day could add up to double what’s already been spent.

For 10 of the past 11 election cycles, about half of the total outside money spent during the entire campaign came during the month preceding the election, according to data from the Center for Responsive Politics. In 2010, the first election following the Supreme Court’s Citizens United decision, 56 percent of the total spent that cycle came in last 30 days alone. The only exception was 2008, when a still considerable 40 percent of the total was spent in October and early November. If that past is precedent, the next month could see another $400-570 million spent, easily pushing outside spending over the $1 billion threshold.

“In a cycle where we’ve already blown away the totals for how much is being spent outside of the campaigns themselves and the parties before that time, then it’s reasonable to expect that — who knows how much? — more will come this cycle,” Bob Biersack, a senior fellow at the Center for Responsive Politics told Salon. Because of insufficient disclosure requirements, Biersack said it’s very hard to predict how much that might be. “It’s a lot harder to look forward and anticipate with these kind of activities than it is with campaigns.”

In 2010, outside groups made huge last-minute ad buys, the largest of which came from the Karl Rove-backed American Crossroads groups, which together pumped $50 million into competitive House races. That announcement didn’t come until October 13. And with Romney’s campaign suddenly ascendant after a strong debate performance last week, it’s possible donors who had been on the sidelines will suddenly decide to pony up. Democrats in the House fear their surprisingly strong positions in over 30 races could be overrun practically overnight by big, late super PAC buys.

Another new phenomenon this year is a sharp uptick in spending from groups that don’t have to disclose their donors , like 501(c)4 social welfare organizations and 501(c)6 trade organizations, like the U.S. Chamber of Commerce. So far this year, even before the final onslaught, these groups have spent more than all outside groups in 2010 combined, according to the CRP data. A court ruling in a case brought by Rep. Chris Van Hollen would have required disclosure for these groups running ads in a window immediately preceding the election, but an appellate court overturned that decision last month, allowing these groups to keep their donors secret. And not surprisingly, the vast majority of this secret money has come from conservative groups.

Of course, there’s a possibility that all this spending so late will have little impact after the deluge of political ads voters in key states have already withstood. Most consultants, political scientists, and psychologists agree that negative political ads are effective, but there may be a limit, which this election cycle could test unlike ever before. In some key media markets, which see as many as three times the number of ads as other markets, negative spots are “popping up on soap operas, game shows and even cable reality programs like Here Comes Honey Boo Boo,” NPR reported of Colorado Springs, Colorado. When voters can’t watch Honey Boo Boo dressing up Glitz Pig without being told why Barack Obama is dangerous for America, maybe they’ll ignore the message, but that remains to be seen. For now, donors are willing bet millions of dollars that the ads will do something more than annoy views.