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This Week In Local Dark Money News

August 19, 2016 | dark money watch |
Alex Wong/Getty Images Alex Wong/Getty Images

When it comes to dark money — money spent trying to influence voters by groups that do not disclose their donors — the focus is often on the federal level. But a considerable amount of dark money is also going to state and local elections. Our weekly roundup looks at dark money spending at the state and federal levels.

Americans for Prosperity (AFP), a dark money group founded by billionaire David Koch, has launched a campaign against a South Dakota ballot measure that would require political nonprofits to disclose their donors, USA Today reports. According to the news organization, the campaign is “part of a sustained effort by [the Koch network] to keep government agencies and the public from learning more about its financial backers.” AFP CEO Luke Hilgemann told USA Today that donors can be subject to harassment and intimidation when their identities are disclosed, making it more difficult for them to exercise their free speech rights to advocate for political causes. Hilgemann also said that politicians who have opposed his organization’s views on tax and other policy issues have backed the measure, “because they don’t like us bringing these issues to light and holding them accountable.”

The FBI is investigating the role Arizona’s largest electricity supplier played in a 2014 election for commissioners to the state’s utility rate-setting agency, according to The Arizona Republic. The news organization reports the power supplier, Arizona Public Service, is suspected of “indirectly funding” at least one 501(c)(4) organization that spent money to elect two commissioners with close ties to the utility. Federal agents have sent grand jury subpoenas to Pinnacle West Capital, which owns Arizona Public Service, the electricity supplier, according to a regulatory filing cited by the news organization. The utility and the nonprofit, Save Our Future Now, each say they are cooperating with the investigation. On Wednesday, the director of utilities for the Arizona Corporation Commission, the agency that determines what customers pay for power and water, resigned without explanation. His resignation will take effect in mid-October.

One Nation, a dark money group affiliated with political strategist Karl Rove, has canceled its ad buy in Ohio’s U.S. Senate race, the Wall Street Journal reports. The cancellation of the $2.8 million media buy to support Republican Sen. Rob Portman seems to indicate the group is confident he will win re-election. One Nation also announced a $1 million ad buy to bolster Republican Sen. Roy Blunt’s re-election bid in Missouri, the St. Louis Post-Dispatch reports. Blunt is running against Democrat Jason Kander, Missouri’s Secretary of State.

Some campaign finance reform groups in New York don’t want Gov. Andrew Cuomo to sign a bill that would require outside spending groups to provide more disclosure about their donors and their relationships with candidates, according to WRVO Radio. Cuomo championed the legislation, which passed the state legislature in June. The reform groups argue that the measure doesn’t address the root causes of political corruption, while making it more difficult for small organizations to lobby state government. A Cuomo spokesman denounced that position as hypocritical. The governor is expected to sign the bill soon.

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