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McCrery, Oxley, DeLay Use Contributions for
Jets, Resorts, Golf
Bloomberg
October 10, 2005
Oct. 10 (Bloomberg) -- For U.S. congressmen such as Michael Oxley, Jim
McCrery and Tom DeLay, the perks of power are found in five-star hotels,
corporate jets and fundraisers at golf resorts.
They are among the top 10 congressional spenders on luxury travel financed
by their "leadership political action committees," Federal Election Commission
data shows. Lawmakers set up such PACs to channel donations into their allies'
election campaigns, helping them build loyalty and influence. They're
increasingly using the PACs to throw costly fundraisers -- often elevating
their lifestyles in the process.
"Members use them as slush funds," says Fred Wertheimer, president of
Democracy 21, a Washington-based advocacy group that's pushing for tougher
campaign-finance laws. "You just don't have to do this to raise money."
The number of leadership PACs is surging as lawmakers seek ways to overcome
campaign-finance limits. And the committees are drawing closer scrutiny since
DeLay, 58, a Texas Republican, was indicted last week on money-laundering
charges stemming from cash transfers by an offshoot of his leadership PAC.
More than 40 percent of the members of Congress now have leadership PACs,
which can take in higher donations from companies than can the campaign
committees that all lawmakers set up to finance re-elections. The PACs'
expenditures also aren't regulated, giving lawmakers wide latitude in spending
money they get from such companies as General Electric Co. and FedEx Corp., two
of the biggest donors.
Overhead
Many leadership PACs spend so much putting on fundraisers that their
expenses outstrip the amount of money they give to candidates or parties.
Republican Oxley's PAC this year has spent $292,458 on overhead -- everything
from consultants to ski-lift tickets to postage bills -- while giving $114,000
in donations.
The PAC of Senator Saxby Chambliss, a Georgia Republican, spent $168,807 on
overhead, including $24,821 at the five-star Ritz Carlton Hotel in Naples,
Florida. In the first eight months of the year, it gave $52,500 to candidates
and party committees.
McCrery, 56, a Louisiana Republican and member of the tax- writing House
Ways & Means Committee, is the top spender on luxury travel associated with
fund-raisers, according to a review of FEC disclosures by Bloomberg News and
PoliticalMoneyLine, a Washington- based company that tracks spending in
politics.
Five Stars
The ranking is based on a tally of stays at the 31 U.S. hotels awarded five
stars by the Mobil Travel Guide; reimbursements for corporate air travel; and
expenses for fundraisers featuring ski and golf trips identified through a
search of Federal Election Commission databases. The analysis didn't include
candidates' individual campaign committees, which also sometimes pay for such
travel. It only looked at expenses that have been reported so far this year, so
some PACS with late annual events aren't included.
The records show McCrery paid at least $98,237 from his PAC in the first
eight months of the year for such luxuries. Next on the list is Oxley, 61,
whose name has been synonymous with good corporate governance since his
sponsorship of the 2002 Sarbanes- Oxley law, which cracked down on fraudulent
accounting by companies.
The Ohio Republican spent at least $93,876 on luxuries, including more than
$40,000 at a Vail ski resort in January. In the first eight months of the year,
Oxley took at least 14 trips on corporate aircraft, including those of
Houston-based Stanford Financial Group Co., which has a fleet of Gulfstream
luxury jets. On the ski trip to Vail, he charged his PAC for ski wear, lodging
and lift tickets, and hosted at least three golf fundraisers. While he was in
New York for a May fundraiser, his PAC paid for a stay at the Peninsula Hotel
on 5th Avenue, where standard rooms start at $625 a night.
A Democrat
Missouri Representative Roy Blunt, 55, who last month replaced DeLay as
House majority leader, was next, spending at least $84,842. DeLay ranked sixth,
spending at least $46,298 from his leadership PAC on luxuries. One Democrat,
House Minority Whip Steny Hoyer, 66, made the top-10 list, spending
$41,393.
Some lawmakers say the need to hold costly golf and ski events has increased
since unregulated "soft-money" contributions were banned by Congress in 2002,
making it harder to raise funds.
"When we take trips to raise money, folks want to go to nice places," says
Chambliss, 61, who is seventh on the list. While his supporters "do have the
opportunity to enjoy themselves," the point is to raise money, he said. "That's
the purpose of a leadership PAC."
`Try to Be Unique'
Says Pamela Sederholm, treasurer for Oxley's PAC: "Others may find that
they're attractive events that people want to participate in." Locations
sometimes require the use of jets, she says. Sean Spicer, a spokesman for Ohio
Republican Deborah Pryce, who ranked ninth on the list, says Pryce seeks to
hold events that people enjoy. "You try to be unique," Spicer says.
Aides to McCrery, DeLay and Blunt didn't respond to e-mail and telephone
requests for comment. Hoyer's spokeswoman, Stacey Bernards, declined to
comment.
The fundraising success of Senator Richard Shelby, 71, an Alabama
Republican, suggests extravagance isn't the only, or even the most efficient,
route to collecting money.
Shelby, chairman of the Senate Banking Committee, oversees the same industry
as Oxley, chairman of the House Financial Services Committee. Unlike Oxley,
Shelby hasn't reported taking any corporate jets this year, has hosted no golf
tournaments, hasn't stayed at a five-star hotel and hasn't used his PAC money
to buy lift tickets. Yet his PAC took in $718,469 in the first eight months, 40
percent more than Oxley's "Leadership PAC 2006," and has more cash on hand than
any other committee, according to PoliticalMoneyLine.
`Not Casting Judgment'
Senator Charles Schumer, 54, a New York Democrat whose leadership PAC has
taken in $51,000 this year, has also spent nothing on corporate jets, five-star
hotels, golf tournaments or skiing, according to his campaign accounts. "I'm
not casting judgment on anyone else," Schumer said in an interview. "I just
don't do it."
Leadership PACs are attractive to lawmakers in part because federal law
allows donors to give six times as much to them as they can to campaign
committees. Top corporate donors so far this year include Fairfield,
Connecticut-based GE, whose political action committee has given at least
$187,500; Memphis-based FedEx, which has donated $180,000; and San
Antonio-based SBC Communications Inc., which has given $178,449, according to
PoliticalMoneyLine. Spokesmen for GE and FedEx didn't return phone calls
seeking comment. SBC spokesman Mike Balmoris declined to comment.
Even Freshmen
Traditionally the province of senior lawmakers, leadership PACs are even
being set up by freshmen such as Illinois Democratic Senator Barack Obama, 44,
who says they are "an important tool to help other people get elected." In
1992, 63 members of Congress had such committees. By last year, the number had
climbed to 231, 43 percent of all federal lawmakers, according to figures
provided by Dwight L. Morris & Associates, a Bristow, Virginia-based
company that tracks money in politics.
In the two-year run-up to the 2004 election, leadership PACs raised at least
$127 million, up from $96 million in the 2000 election. For 2006, the
committees are on pace to match or exceed that record, raising at least $43
million through August, according to PoliticalMoneyLine.
DeLay's Americans for a Republican Majority PAC, or Armpac, is one of the
biggest around: It gave more money to candidates for the 2004 elections than
any other leadership PAC, with $1.2 million in donations, according to
PoliticalMoneyLine.
Indictment
DeLay was indicted by Texas grand juries on Sept. 28 and Oct. 3 on charges
that he and two associates took corporate donations through an offshoot of
Armpac, then funneled the money through the Republican National Committee and
back into Texas races, in violation of state law. DeLay denies any
wrongdoing.
Trevor Potter, a former FEC commissioner, says leadership PACs weren't
covered by federal restrictions imposed 16 years ago on the use of campaign
funds to pay for personal expenses because few people had heard of them
then.
"They were not a glimmer in anyone's eye," says Potter, 49, now a partner at
Caplin & Drysdale, a Washington law firm. "Congress's goal was to cut off
slush funds, and I'm confident they would have included leadership PACs had
they existed back in 1989."
The following table lists the biggest spenders on luxury items from their
leadership PACs for the first eight months of 2005. The amounts are the sum of
spending on golf and ski trip fund-raisers, reimbursements for corporate air
travel, and stays at five-star hotels as ranked by the Mobil Travel Guide.
Lawmaker |
Party |
Amount |
Representative Jim McCrery |
Republican |
$98,237 |
Representative Michael Oxley |
Republican |
$93,876 |
Representative Roy Blunt |
Republican |
$84,842 |
Representative Eric Cantor |
Republican |
$60,144 |
Senator Thad Cochran* |
Republican |
$54,568 |
Representative Tom DeLay |
Republican |
$46,298 |
Senator Saxby Chambliss |
Republican |
$44,984 |
Representative Steny Hoyer |
Democratic |
$41,393 |
Representative Deborah Pryce |
Republican |
$38,447 |
Senator Judd Gregg* |
Republican |
$37,014 |
*Cochran and Gregg's amount is through first six months of the
year |
To contact the reporters on this story:
Michael Forsythe in Washington at mforysthe@bloomberg.net;
Kristin Jensen in Washington at kjensen@bloomberg.net
Last Updated: October 10, 2005 00:01 EDT
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