05/28/2006

Allen raises half a million

Top contributor is a 'homemaker' from Auburn Hills

by brian mcgillivary

bmcgillivary@record-eagle.com

TRAVERSE CITY — State Sen. Jason Allen's public political campaign accounts are flush with cash from oil men, real estate developers and captains of industry.

But an Oakland County homemaker is the Traverse City Republican's top individual contributor.

Allen, his eye focused on the Senate majority leader's post, currently is the state legislature's top fundraiser during a record-breaking election cycle.

His campaign and political funds boast well over $500,000, including a $40,000 contribution from Linda Shea, who lists herself on campaign finance disclosure documents as an Auburn Hills homemaker.

"Forty thousand dollars — that's a lot of money for a housewife," said Rich Robinson, director of the nonpartisan Michigan Campaign Finance Network. "Twenty thousand dollars is a big contribution and it's very unusual to see a $10,000 contribution."

Allen said Shea is a "conservative lady," and her family believes it's important to maintain a Republican majority in the Senate.

Shea declined comment when contacted at her home. Her husband is Jim Shea, who with his brother runs P.K. Contracting, the largest highway lane-marking company in the state.

P.K. Contracting regularly receives state contracts, including recent contracts worth over $4 million from Michigan Department of Transportation.

Jim Shea acknowledged he was the true contribution source when contacted by a Record-Eagle reporter, but said he wasn't trying to conceal his business connection by using his wife's name.

His wife signed the check because she handles their finances, Shea said.

He said he's previously made annual $10,000 contributions to Senate Majority Leader Ken Sikkema to help elect other Republican Senate candidates.

Robinson said Shea's check to Allen is par for the course in state politics.

"Just showing some love to the caucus leader (Allen) and apparently they have him pegged as the future majority leader," Robinson said.

SENATE LEADERSHIP BID

Allen raised about $500,000 in contributions big and small since 2003 and leads current legislators in both campaign and leadership funds in his bid to become the next leader of the state Senate.

Allen controls five different funds — one more than Gov. Jennifer Granholm — that allow him to collect and spend unlimited dollars from people, special interests and corporations across the nation.

Since he took office as a state senator in 2003, Allen through 2005 reported raising $319,833 in his campaign fund, $25,000 for a nonprofit fund and $26,000 for an administrative fund. The latter two operate outside the public realm; state law doesn't require politicians to report the origin or amounts of cash received.

Allen also raised almost $233,000 for his two political leadership funds through April of this year, just as legislators enter their most prolific fundraising period — the months just prior to election.

Lansing lobbyists and other capitol insiders call Allen an aggressive fundraiser but Allen said he prefers the term "successful."

"Money is an important tool in maintaining the (Republican) majority in the Senate," Allen said. "That's my first priority."

"ARMS RACE MENTALITY"

Fundraising in the state capital has become a "growth industry," Robinson said.

Through April 20 the top 150 political action committees raised nearly $23 million, a 22.8 percent increase over what the top 150 PACs raised at this point two years ago, and 35.5 percent higher than the figure raised four years ago.

Fundraising has taken on an "arms race mentality" in Lansing, said Bob LaBrant, senior vice president of political affairs for the Michigan Chamber of Commerce.

"I call it term limits and the politics of ambition," LaBrant said. "It's three, two-year terms in the House and you need to be thinking about some other office to run for, so you try to build up a large campaign fund."

Allen attributes the growth in fundraising to an "exponential" growth in the cost of media advertising, from stamps to television.

"This is probably one of the most critical years for maintaining the majority," Allen said "We have vulnerable seats and because of the media costs it will run into the millions (of dollars)," he said.

Lawmakers are quick to dismiss the power of money on policy decisions, but Robinson scoffs at the notion.

"Money drives public policy," he said.

DEVELOPERS' FAVORITE

Allen's also a favorite among real estate interests and developers. They've given him $106,500, state campaign finance documents show.

Allen is chairman of the Commerce and Labor Committee and vice-chairman of the Economic Development, Small Business, and Regulatory Reform Committee. He said he focused on and has become the Senate's expert on downtown redevelopment.

Allen sponsored or shepherded through committees several pieces of legislation that provide tax breaks as incentives for redevelopment of brownfields and blighted downtown areas.

"I've not had one developer approach us for any kind of special consideration," Allen said.

Allen's intervention this year in a downtown Traverse City public/private mixed use development — and more than $30,000 he received in contributions from Federated Properties and associates of developer Michael Uzelac — raised concerns from locals and Lansing observers alike.

Local developer Gerald Snowden in January approached city officials with a proposal to build a public parking ramp for what he contended could cost taxpayers millions less than a parking structure connected to Uzelac's project. Snowden, too, had an interest in securing state brownfield funds.

Local officials alerted Uzelac and Allen to Snowden's overture; Allen then waded into the fray, and with city commissioners oblivious to the alternate plan, coaxed Snowden and his partners to pull their proposal.

Allen said he hasn't assisted Federated to any greater degree than he has other brownfield developers in Traverse City.

Several local developers who've tapped into state brownfield money or are in line to receive those funds made significant monetary contributions to Allen, with one exception: Snowden.

Among those local developers who contributed to Allen: Tim Burden, Rivers's Edge, $7,250; Rick Deneweth, Copper Ridge, $4,250; Ross Biederman, Radio Center, $1,000; and Federated Properties and its associates, $32,000.

Allen also received a $20,000 contribution from William C. Young, CEO of Plastipak Packaging, a regular contributor to Republican organizations.

Northern Michigan oil men, topped by Old Mission Peninsula resident Martin Lagina's $9,000, gave Allen $28,000 since 2003.

Allen said campaign contributions do not drive his legislative action and said his office routinely writes letters supporting projects in his district.

"I'm successful because I've been able to clearly articulate a position on why it's important to maintain a Republican majority," he said.

MOBILE MONEY

The Michigan Townships Association discovered how difficult it can be to change policy against well-funded contributors.

The MTA tried for years to get manufactured homes in mobile home parks — which pay a $36 annual fee instead of property taxes — added to property tax rolls.

The state's education fund would receive the biggest windfall, but townships, counties, and other local governments also stood to benefit.

Finally, in 2004 MTA coaxed both the state House and Senate to pass similar bills to require property taxes for mobile homes. But the bills were never reconciled among the two bodies, a final vote never taken, and the legislation died on the vine.

The reason: Campaign contributions from mobile home park operators, said MTA representative Bill Kennedy.

In 2004 alone the Michigan Manufactured Housing, RV & Campground Association PAC distributed over $400,000 to state politicians, including $10,000 that year to Allen and another $3,000 in 2005.

"The industry is very focused on getting money into leadership and (Allen) is a front runner for the leadership position," Kennedy said.

Allen received another $10,000 contribution from Lynn Aronoff, an executive of Landon Development, one of the newest and largest mobile home park developers in Michigan.

Over the last three years members of the Aronoff family connected to Landon companies gave $219,225 to judges, legislators, and other politicians.

"That money has helped the industry gain a little side of the legislature that protects them," Kennedy said.

Allen said he voted for the legislation when it initially came to the Senate and called Arnold Aronoff, chairman of the Landon Corp., "a true patriot."

"We went back and reviewed our records and I am not aware that we have ever stopped anything because of a contribution," Allen said.

TOUGH TO MAKE CONNECTIONS

The Michigan Campaign Finance Network's Robinson said it's a tough chore to make connections between money and policy in a state campaign finance system riddled with loopholes, lax enforcement and 12-month gaps between reports.

"Sometimes when connecting the dots, they are as big as beach balls and six inches apart," Robinson said. "All you have to do is put it out there for people to see.

"But you can never know for sure what is expected, what water donors want carried for a contribution," he said.

Lobbyists and legislative staffers don't deny that money buys access, but all agree that blatant, money-for-votes deals aren't common, even in the current fundraising spree.

"If someone was foolish enough to make that kind of quid pro quo they could be indicted," the state chamber's LaBrant said. "I'd be surprised if any legislator would be that brazen or foolish."