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Kerry Slightly Leads Bush In 'Hard Money'
by David Hatch, for Technology Daily
Democratic challenger John Kerry is slightly outpacing President George Bush in "hard-money" contributions from individuals and political action committees associated with companies in the communications and electronics sector.
According to Federal Election Commission (FEC) data through July 5 compiled by the watchdog Center for Responsive Politics (CRP), Kerry has raised $4.98 million in hard money from the sector, while President Bush has garnered $4.43 million. That is a reversal from June 1, when Bush edged Kerry by about $188,000 in donations from this field. Hard money refers to limited, regulated contributions that may go directly to the candidate.
The numbers reflect contributions from a range of industries, including computer and software firms, Internet companies, telecommunications service providers, communications equipment manufacturers and media conglomerates.
Bush Attracts More Overall Dollars
"What's surprising to many is the vast amounts that Kerry has been able to raise in the past few months," said Sheila Krumholz, research director at CRP, discussing the candidate's overall fundraising. Kerry outraised Bush from March through May but the president has drawn more dollars overall: $228.7 million versus $186.6 million through June 20, according to FEC election data compiled by the center.
Meanwhile, Kerry and Bush are outpacing the hard money that former Vice President Al Gore and Bush raised from these industries four years ago. During the 2000 presidential campaign, Gore secured more than $2.5 million in hard-money contributions from the sector and Bush attracted more than $3.3 million, according to CRP, which monitors data available at opensecrets.org. Krumholz and other sources said the sector's hard-money contributions for the 2004 election are higher in part because hard-money limits have increased. For the 2003-2004 cycle, an individual can give a federal candidate $2,000 per election. Four years ago, the cap was $1,000 per election. "Across the board, both candidates have raised a lot more money than last time," Krumholz said.
Nevertheless, total donations from individuals and PACs associated with the communications/electronics sector to federal candidates and political parties are lower - so far - for the 2004 election cycle ($53.5 million) compared to 2000 ($133.3 million). But the comparison is inexact because the 2000 figure includes unlimited soft-money donations to the political parties, contributions that are banned this season by a campaign financial reform law known as "McCain-Feingold" after the measure's primary authors. In addition, the 2004 figure covers through July 5.
High-Tech Firms Show Influence
To some, the flood of money from high-tech and media outlets to the candidates underscores the growing influence that high-tech and communications players have in the presidential selection process. "They've been important for several [presidential] cycles now. Every one wants to court those industries. It's been a kind of mutual love affair," Krumholz said. Neal Pattison, research director for Congress Watch, a division of Public Citizen, said the financial influence of high-tech companies is expanding. "These companies woke up and realized that there were big things at stake and that they have to play the game," he said.
Technology Daily's review of data covering the '03-'04 election season shows that major telecom companies seeking to fend off regulation are heavily favoring the Republican ticket and other GOP causes. FEC data compiled by CRP shows that individuals and PACs associated with the regional Bell phone providers, such as BellSouth, SBC Communications and Verizon Communications, are heavily supportive of the Republicans.
Meanwhile, media conglomerates, often more ideologically aligned with the left, are betting strongly on Democratic candidates. Examples include AOL-parent Time Warner and Viacom, owner of CBS. Microsoft also is leaning Democratic, the data shows.
Through July 5, the top corporate donor within the communications/electronics sector is Microsoft. Individuals and PACs associated with the company have given $1.88 million to the Democratic and Republican parties and federal candidates, with 61 percent of the donations to Democratic causes. The second most generous company in the sector so far is SBC Communications ($1.85 million), followed by Time Warner ($1.67 million), Verizon ($1.16 million) and BellSouth ($1.03 million).
Among the top corporate donors to Bush through July 5 are Microsoft ($184,040) and United Technologies ($171,351), according to CRP. These figures reflect contributions from company employees and PACs to the candidate. Top corporate backers to Kerry through July 5 include Time Warner ($177,006), Viacom ($106,444) and Microsoft ($104,663).
Telecom, Media, Tech Big On 'Bundling'
Telecom, media and technology executives are well represented on the lists of bundlers gathering sizable campaign contributions for the presidential contenders from friends, family and business associates-and giving their own money as well.
"There is an enormous increase in bundling" in this race compared to four years ago, Krumholz explained. She said bundling has helped compensate for the ban on unlimited soft money donations to the political parties. Pattison said bundling gives executives more access to candidates. "There's a lot more [money] on the table," he said, adding, that companies have "a lot more weight" with candidates if they have raised large sums for them.
Edward Whitacre Jr., chairman and CEO of SBC Communications, and Stephen Burke, executive vice president of Comcast, are among Bush's "Rangers," according to Public Citizen, which tracks campaign bundlers at whitehouseforsale.org. Rangers are in a group gathering at least $200,000 in hard-money contributions for the Bush-Cheney ticket.
Bush "Pioneers" amassing at least $100,000 in contributions for the president include: Univision CEO Jerry Perenchio; Verizon President and CEO Ivan Seidenberg; Microsoft Chief Financial Officer John Connors; Microsoft attorney John Kelly; United Technologies Chairman and CEO George A.L. David; Walden W. O'Dell, CEO of Diebold Systems; Conexant Systems Chairman and CEO Dwight Decker. According to Public Citizen, Perenchio also is a Bush "Super Ranger," gathering an additional $300,000 in bundled donations for the Republican National Committee.
Bundlers for Kerry raising at least $100,000 for the Democrat include Leo Hindery Jr., chairman and CEO of the Yes Network; actor Dennis Hopper and wife Victoria; Dreamworks co-founder Jeffrey Katzenberg and wife Marilyn; former Democratic FCC Commissioner Susan Ness; Marvin Rosen, chairman and CEO, Fusion Telecommunications, and wife Janet; Tom Wheeler, former Cellular Telecommunications and Internet Association (CTIA) president and CEO; Chris Putula, vice president of congressional affairs at CTIA; Suzanne Nossel, v.p. of corporate strategy at Bertelsmann's BMG Entertainment; and MGM Vice Chairman and COO Chris McGurk and wife Jamie.
Also on the list is a bevy of lawyers and lobbyists with technology clients, such as Leslie Goldman and Ivan Schlagger, partners at Washington law firm Skadden, Arps; Cameron Kerry, an attorney in Boston with Mintz, Levin and brother of John Kerry; and David Leiter, vice president of government relations at ML Strategies in Washington, a public relations and consulting firm. The watchdog Center for Public Integrity has dubbed the four "John Kerry's telecom fundraisers."
Kerry bundlers who are each gathering between $50,000 and $99,999 for the candidate include Faraj Aalaei, CEO Centillium Communications; Peter Chernin, president and COO, News Corp., and wife Megan; Jonathan Dolgen, chairman, Viacom Entertainment, and wife Susan; James Gianopulis and Tom Rothman, co-chairmen, Fox Filmed Entertainment; Dreamworks general counsel Katherine Kendrick; Paramount Pictures Chairwoman and CEO Sherry Lansing.
Additional bundlers raising money in this range for Kerry are Broadband Group President Tom Reiman and wife Cindy; Time Warner Board Member Ken Novack; Veritas Software Senior V.P. Ben Nye; Handspring Vice President and general counsel David Pine and wife Jane; Bernard Schwartz, chairman and CEO of Loral Space and Communications; and John Sykes, chairman and CEO of Viacom-owned Infinity Broadcasting, according to Public Citizen.
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