Breaking News: 3rd Malloy mailing paid for with dirty money arrives in mail boxes

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The Malloy campaign has been surrounded by controversy over the past couple of weeks following their announcement that the Connecticut Democratic Party intended to use money contributed by state contractors to pay for a mailing promoting Malloy’s bid for re-election.

Now it turns out that the tainted campaign funds have paid for at least three mailings, the 3rd arriving at households yesterday.

malloy brochures2 The money in question IS NOT the public funds that Malloy and Foley collected as participants in Connecticut’s Public Finance System nor is it the Super PAC money that has pouring into Connecticut in recent weeks.

The money that the Malloy campaign is using to pay for these mailings was raised and deposited into the Democratic State Central Committee’s “Federal Account” and comes from state contractors, people who have benefited from Malloy’s corporate welfare program, federal political action committees and wealthy donors from around the country.

Note:  Please read the following to understand how unethical this action is.

After former governor John Rowland was sent to prison, Connecticut adopted a sweeping campaign finance reform law.  As a result of that law, “State contractors may not contribute to a party committee, nor may they contribute to a candidate seeking office in the branch (legislative or executive) for which the contractor holds a contract.

The law means that a candidate for governor is prohibited from benefiting from any campaign donation that have been made by a state contractor or an entity that does business with the state of Connecticut.

The issue is as follows: Under Connecticut law, both Malloy and Foley received $6.2 million in taxpayer funds to pay for their gubernatorial campaigns.  By accepting the public funds, Malloy and Foley were prohibited from soliciting or accepting campaign donations in excess of $100 or receiving any campaign money from state contractors or political action committees.

Meanwhile, as a result of federal law, so-called Super PACS have been funneling millions of dollars into Connecticut in support or opposition to Malloy and Foley. The Malloy associated Super PAC is called Connecticut Forward, Inc. and has spent over $4.1 million to support Malloy and oppose Foley.

The Malloy money has come primarily from the national Democratic Governors Association, the American Federation of Teachers, the Service Employees Union (SEIU) and the American Federation of State, Country and Municipal Employees Union (AFSCME). On the other hand, the Foley associated Super PAC, Grown Connecticut Inc. has spent about $4.9 million.

The Foley money has come almost exclusively from the national Republican Governors Association.

The controversy surrounding the extra Malloy mailings is separate of the $12 million plus that taxpayers have given to Malloy and Foley or the $9 million that has been spent by the Super PACS.

The issue is that these Malloy mailings are being paid for with money that has been donated by state contractors, federal political action committees, lobbyists and others and is reaching they Malloy campaign by being laundered through the Connecticut Democratic State Central Committee’s “Federal Account.”

The Connecticut Democratic State Central Committee actually maintains two accounts – a state account and a federal account.  The state account CAN NOT ACCEPT MONEY FROM STATE CONTRACTORS OR FEDERAL POLITICAL ACTION COMMITTEES.

Over the decades, the state account has been the party’s sole mechanism for supporting their Democratic nominee for governor. Under Federal Law, the “Federal Account” can only be used to support candidates running for a federal position (US Senate and US House of Representatives) or for general voter registration and Get-out-the-Vote activities.

Connecticut’s State Elections Enforcement Commission recently wrote that the Federal Election Commission has determined that,

“’get-out-the-vote-activity’ includes encouraging potential voters to vote; providing information about times when polling places are open, the location of particular polling places, early voting or voting by absentee ballot; and offering or arranging transportation to the polls. The regulations go on to provide, however, that ‘[a]ctivity is not get-out-the-vote activity solely because it includes a brief exhortation to vote, so long as the exhortation is incidental to a communication, activity, or event.’”

However, in an unprecedented maneuver, Governor Malloy and his political operation are using the Connecticut Democratic Party’s “Federal Account” to pay for mailings that are exclusively about Malloy.

In fact, Malloy and his political operatives have raised more than $4.3 million into the Party’s “Federal Account” – much of it from sources that are prohibited from giving to a state campaign – AND – they are now using that money to support Malloy. This charade allows Malloy and his campaign to utilize donations from state contractors and federal PACS to fund his campaign, a move that is unethical, immoral and I believe illegal.

The tainted money includes the following:

$50,000 plus in contributions from corporate officers of Northeast Utilities despite the fact that NU is prohibited from donating to state candidates because of their contracts with the state

$50,000 plus from the owners of Winstanley Enterprises, the developers of Downtown Crossing in New Haven who directly benefited from Malloy’s decision to give Alexion Pharmaceuticals $51 million in corporate welfare payments to move to their property.

$45,000 plus from the owners of HAKS, an engineering firm that received a $8.6 million contract to conduct inspections on the Metro North power lines. $40,000 plus from the owners and senior management of Bridgeport Landing, the company that owns the property where Bass Pro Shops is opening after getting $31 million in corporate welfare from Malloy.

$30,000 plus from the operators of the Bridgeport-Port Jefferson Ferry company who recently learned that the Connecticut Department of Transportation would no longer oppose their plan to move their dock in Bridgeport

And the list goes on and on with over $1 million coming from state contractors, people who have benefited directly from Malloy’s corporate welfare program and federal political action committees.

The fundamental issue is not whether Malloy, Foley and those who support each candidate can pump millions of dollars into the race for governor.  The issue is that Malloy’s action is making a mockery of Connecticut’s historic effort to keep state contractors and those who do business with the state from buying up our politicians and our democracy.

The corrupting influence of tainted money – A must read by Sarah Darer Littman

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In 2005, Connecticut adopted an absolute ban on campaign donations from state contractors and those who directly benefit from state contracts.  As the Hartford Courant recently explained;

“That ban on contractors’ money was approved by the legislature along with a public-financing system under which taxpayers pay for grants to fund state candidates’ campaigns. Having taxpayers fund the campaigns’ expenses was considered better than candidates indebting themselves to big-money contributors – including state contractors – who have special interests in government decisions.”

Faced with the question about why the Malloy campaign was circumventing state law and using money from state contracts to fund a campaign mailer, Governor Dannel “Dan” Malloy told the media,

“We need to spend money”

CTNewsJunkie columnist has written yet another “MUST READ” commentary piece.  This week it is entitled, Bipartisan Lack of Integrity Destroys Confidence in Political System

Sarah Darer Littman writes,

“… integrity is a trait that’s increasingly rare in politics. In fact, in the last 24 months, I’ve begun to despair that we will ever shed our state’s reputation for an ingrained culture of political malfeasance.

[…]

Connecticut Democrats are working hard to weaken the very reforms they legislated, to the point that the party sent out a mailer paid for from its federal account, without waiting for a ruling from the Federal Election Commission, despite having sought the FEC’s opinion beforehand.

As State Election Commission officials observed, the move is an attempt to “cynically circumvent our state’s carefully tailored pay-to-play state contractor provisions.”

Evan Preston, director of the Connecticut Public Research Interest Group, told the FEC last week: “Our reforms were intended to improve public faith in our political process by showing who is supporting candidates, to curb contributions that are, or could seem, corrupting, and to raise the voices of ordinary citizens so they are not marginalized by donors with significantly deeper pockets.”

[…]

Doris Kearns Goodwin, a historian and writer whom I admire greatly, was a recent guest of the Connecticut Forum for a discussion called, “Debating Our Broken Political System.” She observed: “If I had to name one reason why it’s broken, it is power of money in the system today. It is the poison in the system . . . it is the amount of time that it takes our politicians to raise the funds, it’s the special interests that they are then beholden to, it’s the fact that they’re not doing the business of the country, and I blame everybody for it.”

Every Connecticut voter, Democrat, Republican or unaffiliated should take the time to read Sarah Darer Littman’s latest piece – which can be found at – http://www.ctnewsjunkie.com/archives/entry/op_ed_bipartisan_lack_of_integrity_destroys_confidence_in_political_system/

Malloy’s “Final Destruction” of Connecticut’s Campaign Finance Reform Law

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Governor Dannel “Dan” Malloy’s has finally succeeded in his effort to utterly destroy Connecticut’s Campaign Finance Reform Law.

In stark contrast to Malloy’s action this year, the Democratic Party has long claimed that eliminating the inappropriate influence of tainted political donations has been one of the its most important values.  Over the years, unions and progressive organizations have made campaign finance reform a cornerstone of their political agenda.

But in just one term in office, Governor Malloy and his political operatives have managed to undermine and now destroy Connecticut’s landmark campaign finance reform law of 2005.

Following the downfall of Governor Rowland, Connecticut adopted a nationally-recognized campaign finance reform law that provided political candidates with public funds, as long as they refused to take any additional money from political action committees, companies or individuals that do business with the state, large donors or any other special interests.

In his earlier campaigns, Malloy claimed to be a champion for campaign finance reform, but as a direct result of loopholes proposed by Governor Malloy and approved by the Democrats in the Connecticut General Assembly, Malloy has left the spirit and the letter of Connecticut’s campaign finance law in shambles.

Not only has Malloy taken the $6.2 million in public funds for his re-election campaign this year, but he has also inappropriately tapped into nearly $4 million in tainted money that has been laundered through the Democratic State Central Committee and another $3.5 million that has been funneled through a political action committee associated with Malloy’s campaign.

Malloy’s final blow to Connecticut’s commitment to “clean elections” came with the news that the Connecticut Democratic Party has sent out a “mass mailing to promote Gov. Dannel P. Malloy’s re-election with money raised for federal congressional campaigns — even though state regulators have denounced the plan and the Federal Election Commission hasn’t yet said whether it’s legal.”

The details surrounding the Malloy campaign’s latest maneuver can be found at CTNewsJunkie Democratic Party Goes Forward With Malloy Mailer and the Hartford Courant at Democrats Send Controversial Pro-Malloy Mailing Without Waiting For Feds’ Opinion

What is particularly revolting about Malloy’s action it that it allows him to use money that comes directly from people who have state contracts or who have benefited from Malloy’s corporate welfare program.  By using money from the Democratic State Central Committee’s “federal account,” Malloy is also utilizing funds that came from Federal Political Action Committees, a source of money that we never allowed even in the Rowland and pre-Rowland era of pay to play politics.

Malloy’s attitude is either that the law simply doesn’t apply to him or that “the end justifies the means,” no matter how immoral those political actions may be.

As Jon Lender notes in his article,

The SEEC [State Election Enforcement Commission] sent a 10-page letter Tuesday to the FEC saying the Democrats’ mailing would undermine state clean-election laws passed after the 2004 corruption scandal surrounding then-governor Rowland. Those clean-election laws included a ban on state contractors’ money in election campaigns, which was supposed to keep special-interest money out of state elections

But rather than do the right thing, Malloy and the Democrats sent out their mailing using money from state contractors and other organizations that were banned as a result of Connecticut’s campaign finance reform legislation.

Dannel Malloy has turned Connecticut’s once prominent position on campaign finance reform into a joke.  Proponents of clean elections, including Democrats, union members and progressives should be ashamed by Malloy’s actions.

The Democrat’s sanctimonious claims about campaign money

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In recent weeks, many of us have received the emails or invitations from the Connecticut Democratic State Central Committee urging, pleading and cajoling us to give them money so that they can fight off the “big” money that is pouring into Connecticut to attack Dannel “Dan” Malloy and his re-election campaign.

The display has been nothing short of sanctimonious – otherwise known as “pretending to be morally better than other people” or being “hypocritically pious or devout.”

Readers may recall the various Wait, What? blog posts over the past three years about how Connecticut’s once nationally-recognized campaign finance reform law became nothing more than a joke as a result of the loopholes that were proposed by Governor Malloy and passed by the Democrats in the Connecticut General Assembly.

“Big money,” “tainted money,” “special interest money,” is now pouring into Connecticut, in large part, because of Malloy’s effort to corrupt Connecticut’s campaign finance system in order to allow for the very mechanisms that he and Tom Foley are now using to augment the $6.2 million in taxpayer funds that each of them received to pay for their 2014 gubernatorial campaigns.

For background on the issue, read the September 15, 2014 Wait, What? post entitled, “Three cheers for campaign finance corruption in Connecticut!

Governor Dannel “Dan” Malloy has deposited his check for $6.2 million from the State’s Public Finance System.

As a result of Connecticut’s landmark 2005 campaign finance reform bill, in return for raising $250,000 in contributions of under $100, Malloy (and the Republican nominee for governor) have each received $6.2 million in public funds to pay for their gubernatorial campaigns.

The original concept, which passed following the conviction of Governor John Rowland in 2005, was that in return for a multi-million dollar campaign donation from the public, candidates would agree to forgo private funds raised from state contractors, lobbyists, political action committees, and the wealthy and other special interest.

But that was before Malloy and the Democrats in the Connecticut General Assembly torpedoed the most important elements of the law.

Now, in addition to the $6.2 million in public funds, Malloy and his political operatives have collected at least $3.5 million for his campaign into the Democratic State Central Committees “federal” account, much of it from state contractors, lobbyists, political action committees and the wealthy.   The political maneuver was made possible thanks to a proposal Malloy and the Democrats pushed through in 2013.

In addition, a “separate” political action committee called Connecticut Forward, has already raised $2.5 million to run ads in support of Malloy and against his opponent.

Now, as the Hartford Courant’s Jon Lender is reporting in “Democrats Press Controversial Attempt To Use Federal Account To Fund Malloy’s Re-Election,” and Christine Stuart is explaining in Democratic Party Wants To Use Federal Account For Malloy Mailer, Malloy and the Democrats are taking their campaign finance charade one step further.

The Courant reports:

The state Democratic Party is pushing an already controversial campaign-financing issue to a new level, asking the Federal Election Commission to comment on the legality of the party using money from a federal campaign account to pay for a planned campaign mailing asking voters to re-elect Gov. Dannel Malloy.

And CTNewsJunkie explains Malloy ruse with:

State election law prohibits state contractors from contributing to state party accounts or statewide candidates. But state contractors are not prohibited from giving money to the party’s federal account, which pays for some administrative costs and federal campaign activities.

Last month, state election regulators were forced to rule that an email solicitation from the head of Northeast Utilities in 2013 didn’t violate Connecticut election law even though it used Malloy’s accomplishments to solicit money for the Democratic Party’s federal account.

The SEEC concluded that it was “offensive and disturbing and violates the spirit and intent of the Connecticut state contractor ban,” but there was nothing in the state law that made the more than $50,000 in contributions illegal.

The decision to pass Connecticut’s campaign finance reform law in 2005 and give candidates public funds to run their campaign was based on the requirement that candidates would not be able to accept money from people doing business with the state or others whose vested interest was to “buy” themselves public policy.

But instead, Malloy and the Democrats passed loopholes in the campaign finance laws that they sought to benefit from by being able to divert money from companies that do business with the state into the Democratic Central Committee’s Federal Account.

And now, Malloy wants to go even further and use that tainted money to directly pay for his campaign mailings.

Malloy’s blatant disregard for campaign finance reform is a perversion of everything the Democrats claim to stand for when it comes to getting dirty money out of politics and overturning the disastrous Citizens United ruling in which the United States Supreme Court determined that, in essence, defines corporations as people for the purposes of being able to buy elections.

And who are some of the “people” who donated to the Connecticut Democratic Party’s “Federal Account” that Malloy is now trying to use for his campaign?

In addition to numerous corporations and individuals who directly benefit from having state contracts are the following political action committees;

AETNA INC. POLITICAL ACTION COMMITTEE — $5,000

AT&T INC. FEDERAL POLITICAL ACTION COMMITTEE (AT&T FEDERAL PAC) — $5,000

BANK OF AMERICA CORPORATION STATE AND FEDERAL PAC — $5,000

BOEHRINGER INGELHEIM USA CORPORATION POLITICAL ACTION COMMITTEE — $7,500

CBS CORPORATION POLITICAL ACTION COMMITTEE — $1,000

CIGNA CORPORATION POLITICAL ACTION COMMITTEE — $5,000

COMCAST CORPORATION & NBCUNIVERSAL POLITICAL ACTION COMMITTEE – FEDERAL — $5,000

COMPUTER SCIENCES CORPORATION PAC — $5,000

COZEN O’CONNOR POLITICAL ACTION COMMITTEE — $5,000

DEMOCRATS FOR EDUCATION REFORM — $5,000

DOMINION RESOURCES, INC. POLITICAL ACTION COMMITTEE – DOMINION PAC —$2,000

GENERAL DYNAMICS CORPORATION POLITICAL ACTION COMMITTEE (GDC PAC) — $2,500

GENERAL ELECTRIC COMPANY POLITICAL ACTION COMMITTEE (GEPAC) — 6,000

GHC ANCILLARY CORPORATION POLITICAL ACTION COMMITTEE — $3,000

MINERALS TECHNOLOGIES INC. POLITICAL ACTION COMMITTEE (MTI PAC) —$2,500

NATIONAL CONFECTIONERS ASSOCIATION OF THE UNITED STATES, INC. POLITICAL ACTION COMMITTEE — $2,500

NESTLE WATERS NORTH AMERICA INC. PAC — $1,000

NORTHEAST UTILITIES EMPLOYEES’ POLITICAL ACTION COMMITTEE-FEDERAL —$2,500

PFIZER INC. PAC — $10,000

PITNEY BOWES INC. POLITICAL ACTION COMMITTEE — $3,500

PRAXAIR, INC. POLITICAL ACTION COMMITTEE — $5,000

PURDUE PHARMA INC. POLITICAL ACTION COMMITTEE (PURDUE PAC) — $5,000

SPECTRA ENERGY CORP POLITICAL ACTION COMMITTEE (SPECTRA-DCP PAC) —$2,500

SYNERGY PAC — $5,000

THE HARTFORD FINANCIAL SERVICES GROUP, INC. PAC (AKA THE HARTFORD ADVOCATES FUND) — $10,000

THE PHOENIX COMPANIES, INC. – PAC FEDERAL — $2,500

THE TRAVELERS COMPANIES INC. PAC — $10,000

THE WALT DISNEY PRODUCTIONS EMPLOYEES PAC — $5,000

THERMO FISHER SCIENTIFIC INC. PAC — $2,000

UNITEDHEALTH GROUP INCORPORATED PAC (UNITED FOR HEALTH) — $10,000

WAL-MART STORES INC. PAC FOR RESPONSIBLE GOVERNMENT — $5,000

WALGREEN CO PAC — $2,500

WEBSTER BANK PAC – FEDERAL — $2,500

WELLPOINT, INC. WELLPAC — $2,000

XEROX CORPORATION POLITICAL ACTION COMMITTEE (XPAC) — $2,500

CT Democratic Chair – The pot that called the kettle black

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“The pot calling the kettle black” is an idiom used to claim that a person is guilty of the very thing of which they accuse another.

For example,

“Oho!” said the pot to the kettle;
“You are dirty and ugly and black!
Sure no one would think you were metal,
Except when you’re given a crack.”

“Not so! not so!” kettle said to the pot;
“‘Tis your own dirty image you see;
For I am so clean – without blemish or blot –
That your blackness is mirrored in me.”
—Maxwell’s Elementary Grammar, 1904,

With that as the backdrop, some of you may have recently received an email from Democratic State Chair Nancy DiNardo.

The email ALERT read,

BAD NEWS: GOP Super-PACs are planning to spend an unprecedented $6 million (and probably more) on TV ads to defeat Democratic candidates across Connecticut.

And this is on top of everything else the GOP is doing to win this November.

We need September to be a HUGE month for Connecticut Democrats if we want our candidates to survive the onslaught of attacks. Chip in $5 or more now >>

Truth be told, the email is another fine example of the pot calling the kettle black idiom.

The Chair of the Connecticut Democratic Party was writing on behalf of Governor Dannel “Dan” Malloy.

The same Governor Dannel “Dan” Malloy that pushed through the legislation that allows a candidate for governor in Connecticut to take $6.2 million in public funds for their campaign and still raise millions more through their political party and related political action committees.

In Malloy’s case, not only has he cashed the $6.2 million taxpayer-funded check, but he has raised more than $3.5 million into the Democratic State Central Committee from state contractors, lobbyists, and individuals that have benefited financially from Malloy’s corporate welfare programs.

And that doesn’t even count the Democratic Super-PAC called Connecticut Forward, an entity that has already dumped more than $3.5 million into campaign 2014 to support Malloy and oppose Foley.

And just who are the people and organizations that are pouring money into the Malloy campaign operation?

Readers won’t be surprised to learn that one of the biggest donors to Malloy’s campaign extravaganza is the corporate education reform industry.

According to the last set of federal and state campaign finance reports, Governor Malloy, the champion of the corporate education reform industry and the only Democratic governor in the nation to propose doing away with teacher tenure and repealing collective bargaining for teachers working in the poorest schools has received well over a quarter of a million dollars from leaders and political action committees associated with the national education reform and privatization effort.

You read that right…Malloy’s political campaign has benefited from more than $250,000 in campaign contributions from the corporate education reform industry.

For example, in Connecticut, the leading force behind Malloy’s education reform initiative is ConnCAN.

ConnCAN is the charter school advocacy group that helped make the lobbying campaign in support of Malloy’s education reform bill the most expensive in state history.

ConnCAN’s Board of Directors and their immediate family members have donated more than $100,000 to Malloy’s campaign.

In addition, donors to the Democratic State Central Committee and political action committees supporting Malloy’s re-election bid include the anti-teacher Democrats for Education Reform, one of the nation’s leading corporate education reformers, billionaire Eli Broad, and Connecticut billionaire and education reform-funder, Steven Mandel.

Sadly, the Chairperson of the Connecticut Democratic Party fails to explain to the Democratic Party’s rank and file that their $5 contribution to confront the GOP Super-PAC will be deposited into the same account that is awash in millions of dollars that are being dumped into the Malloy campaign by the corporate elite that are so eager to see Malloy in office for another four years.

Malloy’s Fundraising Operation – “Offensive but not illegal”

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As noted earlier this week in Wait, What? post entitled, Three cheers for campaign finance corruption in Connecticut!, Governor Dannel “Dan” Malloy and his campaign operation has collected at least $3.5 million for his campaign by directing large campaign contributors to make donations to the Democratic State Central Committees “federal” account.  Much of the money has come from state contractors, lobbyists, political action committees and the wealthy.

Under Connecticut’s landmark campaign finance reform law that passed in 2005, following former governor John Rowland’s conviction, Malloy’s fundraising scheme would have been illegal.

But thanks to changes in the law that were proposed by Malloy and approved by the Democrats in the Connecticut General Assembly in 2013, the Connecticut State Elections Enforcement Commission ruled yesterday that Malloy’s tactics are an “offensive” violation of the law’s “spirit and intent,” but not illegal.

Details of Malloy’s close call with the law can be found in the Hartford Courant’s Panel Condemns NU Exec’s Pro-Malloy Solicitation As ‘Offensive’ – But Finds No Violation and the CT NewsJunkie’s Election Regulators Call NU Solicitation ‘Egregious’.

As CTNewsJunkie explains,

The State Elections Enforcement Commission dismissed a complaint against Northeast Utilities CEO Thomas May Tuesday, but not before offering some harsh criticism of the solicitation the state contractor sent last September to his employees.

“The next gubernatorial election is upon us, and I am asking each of you to join me in financially supporting Connecticut’s Governor Dannel P. Malloy,” May wrote in his Sept. 27, 2013 email to company managers. The email, which was sent from May’s private gmail account, suggested that donations be made to the Connecticut Democratic State Central’s federal account.

State election law prohibits state contractors from contributing to state party accounts or the campaigns of statewide candidates. Even though the email solicitation mentioned Malloy’s accomplishments at length, the commission was unable to find that May violated state election law because the money went to the party’s federal account.

“The Commission does conclude that the content of the solicitation by Mr. May is both offensive and disturbing and violates the spirit and intent of the Connecticut state contractor ban,” the 5-0 decision to dismiss the complaint reads.

The Hartford Courant adds,

If May had asked his people to donate to the Democratic Party’s account for state political operations, or directly to Malloy or any other candidate for state office, it would have violated the statutory ban on contractors giving money to state campaigns, the commission said.

However, “[b]ecause the contributions…were deposited into the [Democratic Party's] federal account which is generally outside the Commission’s jurisdiction, and not to a state [party] committee,” the commission “lacks the authority…to sanction the conduct,” the commission said in its decision.

The underlying problem with the State Elections Enforcement Commission decision is that everyone associated with the Malloy ploy knew exactly what was going on.

The Hartford Courant quotes an SEEC Commissioner as saying,

“To direct money that on its face was being raised for the support of a statewide candidate” – Malloy – “and deposit that money into a federal account, is an abuse not only of what that federal account is intended for, but clearly seems to be an effort to bypass the workings of the Connecticut finance law,” commission member Stephen T. Penny said.

Twice in the past month, the commission put off a decision in the case after deliberating it behind closed doors. “At first blush the conduct of [May] appeared to be an egregious violation…but after a careful review of state law, we were unable to find any specific violations,” Penny said.

In a blistering attack on the State Elections Enforcement Commission’s ruling, State Senate Minority Leader John McKinney issued a statement saying,

“Clearly, NU’s CEO violated the spirit of our clean election law – a law which was once a model for the country. That historic legislation has become a mockery. Gov. Malloy now has a choice to make. He can keep the money he received from NU officials, or he can return it. If he keeps the money, he will place a cloud on our campaign finance system. If he returns it, he will restore some integrity to the system.”

But of course, the likelihood of Malloy returning the ill-gotten campaign funds is zero because on top of the $50,000 he collected from NU are millions of dollars more from other state contractors, as well as, individuals and companies that have benefited from Malloy’s corporate welfare program.

While Connecticut’s landmark campaign finance reform legislation was rigged to keep 3rd party candidates out of the system, it did do an outstanding job limiting the influence of corporate, lobbyist and special interest funds.

That was before Malloy, with the help of the Democratic members of the Connecticut General Assembly, made a mockery of the law adding a series of loopholes designed to allow Malloy to use public and special interest funds to pay for his campaign.

Now, not only are Connecticut taxpayers giving Malloy (and Foley) $6.2 million each, but Malloy and his political operation are inappropriately, but not illegally, taking millions of dollars from those doing business with the state or benefiting directly from Malloy’s state spending strategies.

You can read more about this development at:

CTNewsJunkie:  http://www.ctnewsjunkie.com/archives/entry/election_regulators_call_nu_solicitation_egregious/

Hartford Courant: http://touch.courant.com/#section/2237/article/p2p-81383792/

Three cheers for campaign finance corruption in Connecticut!

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Governor Dannel “Dan” Malloy has deposited his check for $6.2 million from the State’s Public Finance System.

As a result of Connecticut’s landmark 2005 campaign finance reform bill, in return for raising $250,000 in contributions of under $100, Malloy (and the Republican nominee for governor) have each received $6.2 million in public funds to pay for their gubernatorial campaigns.

The original concept, which passed following the conviction of Governor John Rowland in 2005, was that in return for a multi-million dollar campaign donation from the public, candidates would agree to forgo private funds raised from state contractors, lobbyists, political action committees, the wealthy and other special interest.

But that was before Malloy and the Democrats in the Connecticut General Assembly torpedoed the most important elements of the law.

Now, in addition to the $6.2 million in public funds, Malloy and his political operatives have collected at least $3.5 million for his campaign into the Democratic State Central Committees “federal” account, much of it from state contractors, lobbyists, political action committees and the wealthy.   The political maneuver was made possible thanks to a proposal Malloy and the Democrats pushed through in 2013.

In addition, a “separate” political action committee called Connecticut Forward, has already raised $2.5 million to run ads in support of Malloy and against his opponent, Tom Foley.  To date, about $1.3 million of Connecticut Forward’s money has come from the Democratic Governors Association, $900,000 from the AFSCME union and $250,000 from the American Federation of Teachers.  In the coming weeks, the Connecticut Forward PAC is expected to raise another $3-$5 million or more in their effort to promote Malloy’s campaign.

So how on earth did we go from having one of the “best” campaign finance reform laws in the nation to a campaign in which Malloy gets $6.2 million in public funds, while accessing another $10 million or more in campaign donations including money from state contractors and others who personally benefit from the governor’s policies.

While a portion of the blame rests with the unprecedented Citizens United decision by the United States Supreme Court, in which companies were determined to be people for the purposes of campaign finance laws, Connecticut’s present campaign laws, along with their appearance of corruption, rests on the shoulders of Governor Malloy and the Democrats in the Legislature.

A June 1, 2011 Wait, What? post entitled, “Oh…Remember When Democratic Leaders were for Campaign Finance Reform,” observed, “Democrats Complete the Task of Undermining the State’s Public Finance Law.”  And yet the worst was still to come.

As background, back on January 27th, 2010, when then-candidate Dan Malloy spoke out after a Zogby public opinion survey found that 79 percent of Connecticut voters supported public financing and the Citizens’ Elections Program, Malloy said;

“In my view, this poll should serve as proof of just how strongly Connecticut voters feel about campaign finance reform, and as a warning for those candidates who think they can brush aside the Citizens’ Election Program…”

At the time, Malloy was echoing the sentiment of Democratic Party leaders.

Following the passage of Connecticut’s historic campaign finance law, Speaker of the House Chris Donovan wrote;

“Almost 230 years ago, the founding fathers took a huge risk when they signed the Declaration of Independence and set the wheels in motion for the world’s greatest democracy. Today, this historic campaign finance reform legislation reaffirms that this is a government for the people, not special interests. This campaign finance reform bill is our declaration of independence. We can look our constituents in the eye and say we created the strongest campaign laws in the United States.”

Senate President Pro Tempore Don Williams’ rhetoric was equally impressive, with an official biography that read,

“Since his election as Senate President, Senator Williams has been a leading advocate for cleaning up government. He authored legislation to reform the State Ethics Commission and supported sweeping changes to the campaign finance system and the state contracting process. With the creation of a publicly funded campaign finance system in 2005, Connecticut now has the strongest reform laws in the nation.”

But when candidate Dan Malloy became Governor Dannel Malloy, the official view and strategy when it came to campaign finance reform changed dramatically.

In Malloy’s first budget, the new governor took aim at the State Elections Enforcement Commission by reducing its funding, its autonomy and its authority.

At the time, State Senator Gayle Slossberg, the only Democrat to vote against Malloy’s plan, was quoted as saying, “I just think that the proposal in front of us undermines the independence and the integrity of the [State Election Enforcement Commission and the other] watchdog agencies,”

But Malloy’s effort to undermine Connecticut’s campaign finance law had just begun.

As the 2013 session of the Connecticut General Assembly came to a close, Malloy and the Democrats passed legislation that allowed candidates to keep the public campaign finance funds while opening the flood gates to tainted campaign contributions.

The bill doubled the amount of money private donors could give to political parties, removed the cap on how much political parties could spend to support candidates participating in the public finance system and created a massive loophole by allowing candidates, in this case Malloy, to better coordinate their activities with political parties and other political action committees.

The anti-campaign finance reform bill did not get a single Republican vote in the State Senate or House of Representatives.  On June 19, 2013 Malloy signed the legislation into law, which in turn, prompted former Governor Jodi Rell to observe;

“After a dark period in our state’s history, Connecticut became a role model for the nation with … our campaign finance reform. How sad that the Democrat governor, Democrat legislators and the Democrat Party are so greedy for campaign cash that they would willingly destroy what we so proudly enacted just a few short years ago.”

At the time, few fully appreciated how the legislation would change the political landscape, but you can read more about the Democrats successful effort to destroy Connecticut’s campaign finance law in the June 2013 CTNewsJunkie article entitled, “Malloy Signs Bill Changing Campaign Finance Reforms of 2005.”

Now, with just weeks to go in the 2014 gubernatorial election, laws have been changed to the point that instead of having $6.2 million, the Malloy campaign effort will probably spend in excess of $16 million to try and get a second term in office.

Of course, thanks in no small part to the same changes in the law, Tom Foley and the Republicans will be spending an equally obscene amount of money.

Finally, as Wait, What? readers know, the entire system is also rigged against third-party candidates.  Meaning in this campaign finance war of mutually assured campaign destruction, they only candidate not double and triple dipping, while still using taxpayer funds is third party candidate Joe Visconti.

So let’s hear it!  Three cheers for campaign finance corruption in Connecticut!

Charter School champion, “OxyContin producer” gives Malloy operation over $200,000  

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This month Governor Dannel “Dan” Malloy will be getting a check for $6.2 million in public funds through the Connecticut Public Financing Program to pay for part of his campaign for governor.

But Malloy’s fundraising operation goes far beyond that money.  Malloy and his political operatives are raising millions through various loopholes in Connecticut law.

Take for example, the following;

Jonathan Sackler helped Governor Malloy’s Commissioner of Education, Stefan Pryor, create Achievement First, Inc. the large charter school management company that owns and operates schools in Connecticut, New York and Rhode Island.

Jonathan Sackler created ConnCAN, the charter school advocacy group that led the record breaking $6 million lobbying campaign to pass Governor Dannel “Dan” Malloy’s corporate education reform industry initiative in 2012.  The bill made Malloy the only Democratic governor in the nation to propose doing away with teacher tenure and unilaterally repealing collective bargaining for teachers in so-called “turnaround schools.”

Jonathan Sackler founded 50CAN, the ConnCAN knockoff, which is attempting to spread the charter school lobbying effort across the country.  Sackler is also a member of the board of directors of the NewSchools Venture Fund, a national hedge fund industry-funded organization that is promoting the corporate education reform industry’s activities.

Jonathan Sackler and his family also own a significant share of Purdue Pharma, the pharmaceutical company made famous due to their product known as OxyContin.

In a stunning investigative report by the Hartford Courant’s Jon Lender, we now learn that Sackler and his family have given $91,000 to Malloy’s political operation while Sackler’s company has given another $106,000.

In the article entitled, Democrats Reap $91,000 From Charter Schools Advocate And His Family, Jon Lender explains,

There may be no better illustration of state Democrats‘ massive fundraising efforts in Gov. Dannel P. Malloy’s re-election year than the political donations of Jonathan Sackler and his extended family.

A total of $91,000 in donations has rolled into Connecticut Democratic Party coffers in 2013 and 2014 from four people: Sackler, a Greenwich businessman, investment executive and charter schools advocate; his wife; mother and father.

Lender adds,

Also, a privately held pharmaceutical company in Stamford with which Sackler family members have long been associated — Purdue Pharma — contributed $56,050 in 2013 and $50,000 to the Democratic Governors Association, a national group that spends its money to help elect Democratic governors across the country.

Lender lays out in stark detail the flow of money from the Sacklers to Governor Malloy’s political operation.  Donations that include,

•$55,000 to one of the two Connecticut Democratic Party’s accounts.

Jonathan Sackler and his wife, Mary Corson, each gave a maximum $10,000 donation to the Democratic Party’s state account in 2013 and already have given the same amount in 2014, for a total of $40,000 between them. Also, Sackler’s mother and father, Raymond and Beverly Sackler, have given $15,000 — $10,000 and $5,000, respectively — to that same party account this year.”

•$36,000 to the other Connecticut Democratic Party account

“Jonathan Sackler and Mary Corson each have given $10,000 to that account in 2014, and each gave $8,000 in 2013.

As Wait, What? readers may recall Jonathan Sackler also hosted a fundraiser for a political action committee associated with Malloy the day that Malloy’s “education reform” bill became a public act.  That fundraising netted more than $40,000 making it the most successful of the 14 fundraisers the Prosperity for Connecticut PAC held with Malloy and Wyman.

Sackler’s fundraiser was a “who’s who” in the corporate education reform industry including many of the board members of Achievement First, Inc. and ConnCAN as well as representatives of Michelle Rhee’s StudentsFirst and Eva Moskowitz’s Harlem Success Academy.

You can find Jon Lender’s MUST READ article at:  http://www.courant.com/news/politics/hc-lender-major-givers-0622-20140621,0,3261788.column

Paid for by Pelto 2014, Ted Strelez, Treasurer, Christine Ladd, Deputy Treasurer, Approved by Jonathan Pelto

Malloy is a fraud on campaign finance reform issues

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NEWS ALERT:  Buried under the news about the massive problems facing Connecticut’s State budget and other developments and issues that have surfaced over the past couple of weeks is one of the most significant news stories of Governor Malloy’s term.

The truth is that after having run as a “pro-campaign finance reform” candidate, Dannel “Dan” Malloy has spent the last three years systematically undermining Connecticut’s landmark campaign finance reform system.

Since taking office, Malloy has pushed through a series of changes that have turned Connecticut’s stellar campaign finance reform law into little more than a joke.

At Malloy’s direction, new loopholes have been created so that Malloy’s political operation can raise millions of dollars from state contractors, big donors, lobbyists and others who were prohibited or limited from giving  campaign donations when Connecticut adopted the country’s premier campaign finance reform law.

Connecticut’s law was adopted after former Governor John Rowland went to prison and legislators finally admitted that it was time for a whole-scale change in the way campaigns were financed in Connecticut.

But massive loopholes weren’t enough for Malloy and his political operation.

The Democratic Governors Association recently announced that it was suing the state of Connecticut.

Why?

Because Connecticut law requires that independent expenditures MUST BE independent of the candidate that they are supporting.  That is why it is called an “independent” expenditure.

But the Democratic Governors Association, a political action committee that is expected to spend $3 million to $5 million in support of Malloy’s re-election this year wants to “coordinate” its “independent” campaign in support of Gov. Dannel P. Malloy with Malloy’s political campaign.

However, coordination under Connecticut law is illegal.

Yet rather than try and change that law through Connecticut’s legislative process, the Democratic Governors Association has gone to court to try and have the court strike down the law that they can “coordinate” their “independent” expenditure with Malloy.

Who is the Democratic Governors Association?

The Democratic Governors Association is, “…an independent voluntary political organization organized to support Democratic governors and candidates across the nation…The DGA is proud to support the 22 Democratic governors who hold office now.”

Governor Malloy has been extremely member of the Democratic Governors Association and he is sponsoring an upcoming major fundraiser in Greenwich so that they can fill the DGA’s campaign account with money.

And what does Malloy, the former supporter of campaign finance reform, think of the Democratic Governors Association legal action to undermine Connecticut law?

As CT News Junkie reported in their article entitled, Malloy Says DGA Responded ‘Appropriately’

Gov. Dannel P. Malloy said Friday the Democratic Governors Association’s recent legal action against state election regulators is an appropriate response to what it sees as a misinterpretation of Connecticut campaign finance laws.

“I’m not weighing in on the lawsuit. It is important that the laws be enforced and that the right laws be enforced in the right way. In this case [the DGA] feels that there is a misinterpretation of the law. So they’ve responded, I think appropriately but, you know, I hope for a swift decision,” Malloy said when asked about the complaint.

Malloy, who is seeking reelection this year, has been a fundraiser for the DGA and member since winning his election in 2010 and the group is seeking to spend money to help his reelection bid. It filed a preemptive lawsuit in federal court Wednesday contesting the State Elections Enforcement Commission’s interpretation Connecticut’s campaign finance rules.

What does this all really mean?

Just take a look at what good government and watch-dog organizations like Common Cause, CCAG and the League of Women Voters are saying about the Democratic Governors Association attempt to support Malloy’s re-election campaign.

From Common Cause:

The Democratic Governors Association (DGA) filed suit in federal court yesterday against Connecticut’s State Election Enforcement Commission alleging that Connecticut’s strong campaign finance laws interfere with their First Amendment right to spend millions of dollars in so-called “independent expenditures” in the 2014 gubernatorial race.

An independent expenditure, in elections in the United States, is a political campaign communication that expressly advocates the election or defeat of a clearly identified candidate that is not made in cooperation, consultation or concert with or at the request or suggestion of a candidate.

The problem for the DGA is that Governor Dannel Malloy raised more than $20 million for them in 2011 and at least $1.4 million of that came from Connecticut donors. So if the DGA spends millions on behalf of Malloy when he runs for Governor, can they say with a straight face that these expenditures are “independent?” Of course not! Coordination between a candidate and an organization making Independent Expenditures is illegal in Connecticut. The DGA claims that this violates their right to free speech. What?

The DGA does not have a First Amendment right to break campaign finance laws.

Governor Malloy has been a champion of campaign finance reform and credited Connecticut’s landmark Citizens’ Election program for helping him have clean resources to commpete against a millionaire in the 2010 primary and a millionaire in the general election.

Call Governor Malloy today at 1-800-406-1527 and tell him to ask the DGA to drop their lawsuit!

P.S. Want to know more? Check out “When Independent Expenditures Aren’t” on Common Blog! 

From CCAG (Connecticut Citizen Action Group):

Money should not be more important than democracy. The Democratic Governors Association should be ashamed of their effort to undermine the clean elections system and our strong campaign finance laws in Connecticut.

Last week the Democratic Governor’s Association filed a lawsuit on behalf of consultants to eviscerate CT’s laws making it illegal for independent expenditure to be coordinated with campaigns. This lawsuit, if successful, will allow the Koch Brothers and their consultants to coordinate making existing campaign finance restrictions obsolete. Please, sign the petition, help us deliver a strong message to Governor Shumlin.

SIGN THE PETITION!

The DGA must withdraw its lawsuit against Connecticut’s Independent Expenditure Campaign Finance Rules.  We must not allow the Koch Brothers to continue to spread political corruption with their billions.  Thank you for your help.

From the Connecticut League of Women Voters:

Important News for LWVCT Members

On April 23rd the Democratic Governor’s Association (DGA) filed a lawsuit against the State Elections Enforcement Commission (SEEC) claiming that our state’s campaign finance laws infringe upon their free speech rights “…to advocate for the election or defeat of Connecticut candidates for Governor…” The DGA is seeking an injunction to bar the SEEC from enforcing campaign finance rules. Governor Malloy is a member of the DGA and during his term as finance chair in 2011 raised a reported $20 million dollars for the Association.

LWVCT urges the State Election Enforcement Commission and the CT Attorney General to vigorously defend our state’s campaign finance laws and SEEC rules regulating independent expenditures in political campaigns. We regret that this lawsuit forces the SEEC to devote limited staff resources for monitoring and enforcement instead to defending in court our valuable campaign disclosure and transparency measures.

In recent election cycles, nonprofits and other organizations have been utilized to influence election outcomes through media spots and other advertisements intended to qualify as “independent expenditures.” The League of Women Voters of Connecticut believes that the CT campaign finance laws and the SEEC rulings are necessary to increase disclosure of independent expenditure activity and to enable the electorate to make informed decisions regarding candidates for state level offices. For more info on what’s at stake, click here.

 

The fact is, when it comes to campaign finance reform, Malloy is a fraud.

Even More Corporate Education Reform money flows to Malloy’s political operation

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The latest federal campaign finance reports are in and Governor Malloy’s political operation continues to rake in the cash from those associated with the effort to privatize Connecticut’s public schools and undermine Connecticut’s teachers.

As a result of Connecticut’s campaign finance program, Governor Dannel “Dan” Malloy is on track to collect $6.2 million in public funds to pay for his 2014 gubernatorial campaign.

But thanks to a loop-hole in Connecticut law, the Malloy campaign has already diverted nearly $2.2 million in individual and political action committee donations into an account controlled by the Democratic State Central Committee.  Malloy is rounding up donations to this Democratic account so that his team will have additional money to supplement Malloy’s publicly funded campaign this year.

The campaign finance loop-hole is so large you could drive a truck through it.  As a result, much of the money that Malloy and his team has raised into the separate account is coming from individuals and businesses who have state contracts, as well as, from registered lobbyists, political action committees and special interests that would otherwise be banned from contributing to Malloy’s campaign.

One of the most “generous” sources of money for Malloy’s “off-line” political operation has been the corporate education reform industry.

The latest report filed with the Federal Elections Commission reveals the proponents of Malloy’s “education reform” initiative continue to line up to give the Governor campaign donations.

New contributions in March included,

  • Another $20,000 from Jonathan Sackler and his wife.  Sackler helped Stefan Pryor create Achievement First, Inc., the large charter school management company.  Sackler also founded ConnCAN, Connecticut’s leading charter school advocacy group and 50CAN, a national charter school advocacy organization. 
  • Sackler and his wife have now given $38,000 to the Democratic Party “special” account and another $20,000 to the Connecticut Democrats regular account.  In addition, Sackler hosted a fundraiser that brought in almost $50,000 for the Malloy affiliated Prosperity for Connecticut Political Action Committee. 
  •  $10,000 from Susan Mandel, the spouse of billionaire Steve Mandel.  Mandel is the primary supporter of the Bridgeport charter school advocacy group called Excel Bridgeport, Inc. and serves on the national board of directors of Teach for America.  Mandel and his wife have now contributed $30,000 to the Democratic account that is being used to fund Malloy’s political operation. 

These new contributions to help Malloy come on top of tens of thousands of dollars in additional donations that have been sent by other key players from the corporate education reform industry. For example, Michelle Rhee’s PAC and the Wal-Mart PAC have already sent large donations to boost Malloy’s re-election chances.

You can read about the other donations in the following Wait, What? posts,

Corporate Education Reform Industry pours money into Malloy campaign operation (Feb 2014)

Malloy’s campaign donation haul from corporate education reform industry tops $70k (Dec 2013)

Malloy continues to cash in on Education Reform initiative (Nov. 2013)

Malloy/Democrats make mockery of Connecticut’s once prominent role in campaign finance reform (Oct. 2013)

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