New Loophole--An Invitation To Corruption

 This information is provided by the Illinois Campaign for Political Reform. (ICPR)

ICPR Spotcheck is a publication of The Illinois Campaign for Political Reform, a non-partisan public interest group that educates, conducts research, and advocates reforms to promote public participation in government, address the role of money in politics, and encourage integrity, accountability, and transparency in government.

Today (Friday, July 6) Gov. Pat Quinn signed Senate Bill 3722, carving a large loophole into the campaign contribution limits law.

With his signature, Gov. Quinn has made it easier for large campaign contributors to buy political favors, and he has moved Illinois back toward the same kind of system that produced two corrupt governors now serving prison sentences.

Gov. Quinn's record on reform had a promising beginning with his signature on the 2009 bill creating the state's first comprehensive contribution limits, but he took a wrong turn with his signature on this limits loophole.

He has opened the door to a return of Blagojevich-proportion contributions in the 2014 gubernatorial election.

Quinn's action today immediately legalized the removal of limits on all contributions to candidates running in an election where spending by an independent committee (SuperPAC) or individual reaches a threshold amount of $250,000 in a statewide race or $100,000 in all other election contests.

After the limits law was passed in 2009, federal court decisions have prevented enforcement of limits on contributions to political action committees that spend money to influence the outcome of elections and do not coordinate with any candidates.

Instead of responding with removal of limits on contributions to candidates, ICPR advocated enactment of a clear definition of independent expenditures PACs. This would have been a safeguard against the kind of SuperPACs seen on the federal level where "independent" PACs are intertwined with candidates. ICPR also supports improved finance disclosure giving the public more information about SuperPAC supporters in all election communications. 

Brian Gladstein

Executive Director
Illinois Campaign for Political Reform 

Illinois Different From Most Other States

Congress and most states responded to the Watergate scandals of the early 1970s by enacting contribution limits for political candidates. They recognized that outsized contributions from single donors created a great risk of corruption and that limits were necessary.

Unfortunately, Illinois held out from enacting any form of campaign limits for more than 30 years, until Rod Blagojevich demonstrated the extent to which a mammoth war chest of illicit money could dominate an election and that large sums of money could be extracted from job seekers, board and commission appointees, contractors and others seeking political favors. In 2009 Illinois finally passed a bill implementing campaign contribution limits which went into effect January 2011.

Shifting federal case law now threatens our achievements. As a result of a recent lawsuit in Illinois, a federal judge has ruled that political committees that do not actively coordinate expenditures with candidates may accept unlimited contributions from any single source, opening the door to the possibility of more Blagojevich-style corruption in the future.

In response, ICPR (Illinois Campaign For Political Reform) filed an amicus curiae (friend-of-the-court) brief in that case, and worked with the Illinois Attorney General's office to defend state law. The judge concluded that the U.S. Supreme Court ruling known as Citizens United directed that his decision allow unlimited giving in some circumstances.

What Now?

ICPR will continue to advocate for campaign finance reform in Illinois. Our focus includes:

• Preserving Limits: ICPR will collaborate with members of the General Assembly and participate in the court cases to curtail the influence of special interests on policy in Illinois.
• Monitoring campaign cash: We will work tirelessly to keep our Sunshine Database up-to-date and make improvements to make detailed information about the flow of money in politics easily available to the public.
• Disclosure and transparency: We will advocate for a government that is open and shares information with the public.
• Exploring viable public financing options: ICPR supports piloting a voluntary public financing system to elect Illinois Supreme Court and Appellate Court judges.

With your help, we now must be vigilant tracking Super PAC fundraising and reporting on the their impact on elections and government.

Get Involved

Visit ICPR's Super PAC webpage containing a full background and chronology of the campaign finance story, along with links to key opinions and documents.

Encourage people you know to sign up for our Spotcheck newsletter and visit our website at www.ilcampaign.org.

Learn more about some of the issues facing Illinois and support our efforts by attending our upcoming fund-raising lunch, "Out of the Shadows of Corruption" on Wednesday, April 18 at the East Bank Club in Chicago. (Get more information and purchase tickets.)

Utility Bills May Provide For More Than The Utility

Electric and gambling interests have pumped more than $1.3 million combined into the campaign funds of key public officials, according to analysis of reports filed yesterday with the State Board of Elections. At the same time, these interests are asking legislators to support legislation to grow their bottom line. "With all this money on the table, it's hard for voters interests to be heard," said David Morrison, Deputy Director of the Illinois Campaign for Political Reform (ICPR), which tabulated the numbers.

The Illinois General Assembly returns for legislative session next week, and among the bills they will consider are proposals to enact so-called "SmartGrid" electricity delivery systems and to expand gambling around the state.

"As regulated industries, both gambling and electric utilities depend on state laws and regulations for their economic viability. Both have a history of using campaign donations to advance their public policy goals," said Morrison.

The Smart Grid proposal would change the way electricity rates are set, allowing companies like Commonwealth Edison and Ameren to charge more to upgrade the transmission system. Electric companies have given $939,680 to officials, candidates, and political parties in 2011. Top donors are Ameren, affiliated companies and employees ($399,188); Commonwealth Edison, its parent company Exelon, related companies and employees ($262,422); and Midwest Generation ($93,450). Top recipients are the Senate Democratic Victory Committee ($89,750), Citizens to Elect Tom Cross ($62,500), and the House Democratic Majority ($45,100).

The gambling proposal would allow for 5 new casinos in the state, including one in the City of Chicago; as well as slot machines at existing race tracks; and gambling positions at O'Hare and Midway airports, the state fair grounds, and other locations. Gambling interests gave $388,000 to candidates and officials in 2011, including $304,300 from racetracks, $68,516 from existing casinos, and $15,100 from other gambling interests. Top recipients include Chicago for Rahm Emanuel ($74,550), the Senate Democratic Victory Fund ($23,700), and Citizens to Elect Tom Cross ($23,050).

ICPR has been tracking campaign money since 1997, and was instrumental in the passage of contribution limits in 2009. Founded by former US Sen. Paul Simon and then-Lt. Gov. Bob Kustra, ICPR works on a bipartisan basis to improve campaign finance, government ethics and voter education. "ICPR will vigilantly monitor how campaign finance influences public policy decisions by elected representatives," said Brian Gladstein, ICPR Executive Director.

The Sunshine Database includes records reported by all statewide officials, legislators, and Cook County officials, as well as elected officials and 2011 candidates for office in the City of Chicago. Once candidates file petitions for the 2012 elections, ICPR will add reports for candidates and challengers in the 2012 elections, in addition to reports for incumbents.

The Sunshine Database is available through ICPR's website, www.ilcampaign.org. The Sunshine Database is now updated with all electronically reported receipts from January 1, 2011 through October 18 at 9 am, and receipts reported on paper through June 30. These include all contributions of $150 or more received by September 30, and all contributions of $1,000 or more received in October. Expenditures, fund balances, and receipts reported on paper will be updated in the coming weeks.