01/18/2007

McManus to head finance, ethics reform committee

By Brian Mcgillivary

bmcgillivary@record-eagle.com

McManus

TRAVERSE CITY — Michigan politicians and political campaigns shattered state fundraising and spending records in 2006, raising enough of a red flag that politicians themselves are talking about changing the money rules.

Senate Majority Leader Mike Bishop, R-Rochester, created a Senate committee to produce "significant” campaign finance and ethics reform.

Sen. Michelle McManus, R-Lake Leelanau, will lead the committee.

"I'm certainly going to be aggressive with this committee,” McManus said. "The time is right and the environment is such that we need to examine legislative reform and campaign finance reform to protect the integrity of elected office.”

More than $120 million was spent on state elections in 2006, compared to $70 million in 2002, said Rich Robinson, executive director of the nonpartisan Michigan Campaign Finance Network that tracks political spending in Michigan.

"Across the board, there was just more money everywhere and money influences outcomes,” he said.

Multi-millionaire Dick DeVos spent more than $35 million of his personal fortune in an ill-fated attempt to unseat Gov. Jennifer Granholm. Together, spending for the DeVos and Granholm race totaled more than $70 million, almost double the total of the 2002 gubernatorial campaign, state records show.

Another multi-millionaire, Jon Stryker of Kalamazoo, dropped $4.6 million into a political action committee to back Democratic legislative candidates, often using issue ads that exploited loopholes in campaign contribution limits. Issue ads are used to either promote or tarnish candidates without explicitly supporting a candidate.

"You just can't maintain a democracy when an individual can drop $5 million into a PAC and overwhelm local legislative races,” Robinson said.

Michigan has some of the most lax and infrequent campaign money reporting requirements in the nation, Robinson said.

Money can move through different types of committees with different rules, making if difficult and sometimes impossible to track who's providing cash to politicians or campaigns.

A case in point are the "secret,” nonpublic accounts maintained by state Sen. Jason Allen, R-Traverse City. Allen raised more than $50,000 for two funds that have no political reporting requirements.

Allen's secret funds were used to buy gifts and meals, make donations and attend Republican functions.

Most of those expenditures also could be made from reportable campaign funds, but Allen's secret accounts mainly are comprised of donations from corporations — entities that are banned from contributing to political accounts that can be reviewed by the public.

Allen disclosed the identities of corporate donors to one of his secret accounts, but refused to name the corporations and lobbyists who gave tens of thousands of dollars to two other nonpublic accounts he controls.

'Issue ads' an issue

Political parties are exempt from reporting contributions and can spend millions on so-called issue ads that can only be tracked by going to every television station that broadcasts a signal in Michigan.

Robinson said the Michigan Democratic Party bought $11.4 million in ads for Granholm, part of $15.6 million spent by third parties on TV ads in the 2006 gubernatorial race.

McManus in 2006 sponsored two legislative bills to require online reporting of who paid for any issue ad printed or broadcast on television, radio or over the Internet to the Secretary of State within 48 hours.

The then-Republican-led House passed 11 basic reform bills to require more frequent and immediate reporting of campaign contributions. But both McManus' and the House bills died in a Senate committee headed by previous Senate Majority Leader Ken Sikkema, also a Republican.

The House is now under Democratic control. Rep. Andy Dillon, the new House leader, did not return repeated calls to his office seeking comment on campaign finance reform.

McManus said she favors full disclosure on every level of campaign financing. She wants more frequent and immediate reporting of campaign expenditures, disclosure of contributors to nonprofit funds such as those controlled by Allen, exposure of who funds issue ads and personal financial disclosure by legislators and state administrators.

Bishop balks at financial disclosure

Michigan is one of three states that doesn't require disclosure of politicians' and officials' personal financial interests.

"I can believe in full disclosure and I can promote it but I will need X number of votes to move legislation,” McManus said.

She can't rely on Bishop's support to move legislation on personal financial disclosure, though. Bishop called full disclosure of personal finances an "overreach.”

He said he favors "transactional disclosure,” in which lawmakers would disclose potential conflicts of interest on votes before them.

But some form of campaign financing reform appears possible. Robinson said he's spoken with enough Democrats and Republicans in the state Legislature who are concerned enough that "something will be done” this year.

McManus plans to take her committee on the road, hold public hearings and talk with interest groups such as the Michigan Chamber of Commerce and the Michigan Campaign Finance Network.

"The support we receive from concerned citizens and organizations is crucial,” she said. "I want to hear from all these groups. My ears are open.”