Disclosure, Part 2

[Updated: this post has been updated to reflect more recent campaign finance reports.]

Yesterday, I introduced the group Minnesotans United PAC, a political action committee that believes it’s on the right side of history but thinks it doesn’t need to follow the state’s campaign finance disclosure rules.  In this Part 2, I dig deeper into what the group promises, and what it delivers.

It debuted with a splash in May 2013, vowing to protect those state legislators who had just legalized same-sex marriage in Minnesota.  The Minneapolis Star Tribune reported back on May 15^th of last year,

The political group that successfully pressed state leaders to legalize same-sex marriage this year is already shifting to a new goal—ensuring the re-election of legislators who supported them.

Less than 24 hours after legalization was signed into law, Minnesotans United for All Families created a separate political-action group that intends to pour money into the campaigns of DFLers and Republicans who voted yes even though they represent districts where many constituents oppose same-sex marriage.

The Star Tribune added,

Minnesotans United’s new political fund will spend “as much as it will take” to defend vulnerable legislators.

Some Republicans and rural DFLers who voted for legalization knew it could cost them their seat.

A month later, the St. Paul Pioneer Press reported on the group’s leader, Richard Carlbom,

Carlbom said the research indicates few if any DFLers will lose seats over the issue, but the group plans to move early to neutralize any potential threats.  He doesn't specify a fundraising goal but says they'll raise "as much as it takes."

He pledges "an incredibly aggressive effort" to support the five Republican legislators who voted yes, as well.

I sincerely hope that no Republican or Independent voters bought into this media con.  If they donated to Minnesotans United thinking they were supporting Republicans or Democrats in conservative rural districts, the reality of Minnesotans United’s operation has turned out to be something else, entirely.

The “aggressive effort” to help the five Republicans has yet to materialize, but Carlbom’s 2013 fundraising was a smashing success.

Open for less than 8 month in the off-election-year of 2013, the PAC raised an impressive $453,223.12, but spent all but $4,539.79 of that total, according to records on file at the state’s Campaign Finance and Public Disclosure Board.  As I mentioned in Part 1, the largest single donor was Colorado’s Tim Gill, who contributed $50,000.

One of the biggest beneficiaries of the PAC was its largest single vendor, United Strategies, LLC.

According to records on file at the Minnesota Secretary of State’s Office. Carlbom co-founded United Strategies LLC on June 17, 2013.  The MN United PAC reports making its first payment to Carlbom’s firm on July 1^st.  Over the course of 2013, the PAC would pay Carlbom’s firm a total of $69,725 for “Consulting – Management.”  Add in another $9,400 Carlbom took out in direct payroll, and his take tops $79,000.

Notwithstanding the media spin, Minnesotans United itself is much more up front about where the money would go.  Billing the group as an initiative of OutFront Minnesota and Project 515, the home page includes this description,

Minnesotans United Political Action Committee is dedicated to protecting marriage equality in the state and supporting the legislators/elected officials and Governor Dayton who voted in favor of extending the freedom to marry to same-sex couples.

The PAC’s Get Involved page includes this statement,

Minnesotans United Political Action Committee (MN United PAC) will work tirelessly to ensure that the lawmakers – Republican and Democrat – who voted yes for marriage in May 2013 will have the grassroots and financial support they need to be re-elected in November 2014.  These legislators cast an important historic vote, and now it’s our turn to show our appreciation and tell them that we’ve got their back.

As it happened, the PAC supported 21 individual candidates with a total of $25,000 in contributions last year.  Donations went to 10 of the legislators that were on the list of 15 Republicans and rural Democrats the PAC has said it will support. 

It was reported that two legislators refused donations from the PAC.  Still, the vulnerable 15 received only $11,000 out of the nearly half-million dollars raised by the PAC, and the 2013 money is all but gone.

As promised on its home page, Gov. Dayton received the biggest single PAC check, for $4,000.  The other 10 donations went to vulnerable Democrats, mostly in suburban seats.  For example, both of Edina’s state representatives received support, although neither could be described as either Republican or rural. 

On the whole, the PAC’s candidates fit into the drearily familiar pattern of vulnerable suburban Democrats who are at risk of losing in 2014, but for reasons having nothing to do with the same-sex marriage debate.

In 2013, the PAC gave a separate $30,000 donation, split 2:1, between the House and Senate Democrat caucuses, respectively

The largest share of the PAC’s 2013 fundraising—totaling $170,205—went to other political action committees.  Some $80,205 went to OutFront Minnesota’s PAC.  The remaining $90,000 was split with $40,000 going to Project 515's PAC and the remaining $50,000 to the AFL-CIO vehicle We Are Minnesota.

I’m sure that OutFront Minnesota Action was happy to receive the $80,205, as it represented nearly the group’s entire $88,225 take in 2013.  OutFront used a chunk of the 2013 cash it raised (over $25,000) to reimburse the underlying OutFront non-profit, including some bills left over from 2012.

The largest amount spent by OutFront’s PAC was $40,000 given the Democrat’s house caucus fund.

[Note:  there is a bizarre series of transactions involving the same $19,000 amount between OutFront and Minnesotans United.  On September 12^th, Minnesotans United PAC gave $19,000 to the OutFront Minnesota non-profit.  On October 30^th, Minnesotans United PAC gave $19,000 to OutFront’s PAC.  On November 13^th OutFront’s PAC gave $19,000 back to Minnesotans United’s PAC.]

OutFront also has a separate independent expenditure fund.  However, the Campaign Finance Board’s website indicates that the group’s 2013 report for that fund is not available.

Project 515’s PAC received a total of $55,474.93 from United, representing nearly all of the 515 group’s 2013 receipts.  As with OutFront, the 515 PAC used some of the United cash to reimburse its underlying Project 515 nonprofit.  515 made a couple of small donations to candidate committees and, like OutFront, gave $40,000 to the Democrat’s house caucus.

Between the three groups (MN United, OutFront, and Project 515) at least $110,000 of United’s fundraising ended up in the general funds of state Democrat party units.  Of the $454,000 raised by Minnesotans United PAC, over $239,000 ended up in the pockets of its principals (Richard Carlbom and the various arms of OutFront and Project 515).

As it did for OutFront, Minnesotans United PAC also made substantial donations to the underlying Project 515 nonprofit.

Minnesota’s same sex marriage lobby has quickly fallen into the same pattern as the state’s environmental and abortion lobbies:  they promise a non-partisan or bi-partisan approach to the issue, but reliably deliver sacks of cash only to Democrats and usually targeted at the same handful of swing suburban seats.  United has joined a long list of front groups whose role is to launder campaign money for the Democrats and their own benefit.

At this point what Minnesota needs is something like a Better Business Bureau for political groups.  If a group solicits donations on the promise or implication that they will be spreading the money across the political spectrum, then they need to be held to that promise.  If instead, the group funnels it all (or nearly all) to one party, or merely pockets it, then there should be consequences for what becomes something resembling common consumer fraud.

In Part 3 I dig into United's formidable lobbying operation.