Monday, May 13, 2002
Last of soft money gifts coming in
New law limits future gifts
By Nancy Zuckerbrod
Associated Press
WASHINGTON A new campaign finance law requires this to be the last election cycle in which corporations, unions and wealthy individuals can make unlimited donations to political parties, and some in Kentucky are writing the big checks while they still can.
It is the last dying gasp of the fund-raisers in charge of the parties, said Scott Harshbarger, president of the pro-reform advocacy group Common Cause.
He says people who give unregulated soft money donations, unfairly gain access and the opportunity to be heard by people in power in Congress.
But critics of the new law, including Sen. Mitch McConnell, R-Ky., contend the restrictions violate First Amendment free speech rights and weaken the political parties by limiting their spending abilities. They are challenging the law in court.
In Kentucky, Louisville-based Brown & Williamson Tobacco Corp. has been the leading contributor this election cycle of soft money donations.
The company has donated $137,464 to the Republican Party in soft money, according to Political Money Line, a Web site that tracks campaign contributions.
Parties can use the funds to pay for issue ads, get-out-the-vote drives and other party-building activities. They cannot use soft money to expressly advocate a candidate's election or defeat.
At the federal level, Brown & Williamson has opposed a proposal backed by rival Philip Morris to allow the Food and Drug Administration to regulate tobacco. But Brown & Williamson spokesman Mark Smith said there is no correlation between the company's lobbying efforts and its soft money contributions.
He said the company gave to the Republican Party because of a shared view on many issues. Why not support the people that share your philosophy? Mr. Smith said.
The now-bankrupt AEI Resources, of Ashland, followed Brown & Williamson with $125,000 in soft money donations, all of which went to the Republican Party. The donations were made late last year, a few months before the coal producer filed for bankruptcy. The company did not return calls from The Associated Press seeking comment on its contributions.
The Lexington-based National Thoroughbred Racing Association has donated $110,400 this cycle, according to Political Money Line. Most went to Republicans. Louisville-based Brown-Forman Corp. gave $90,551 in soft money, again with most going to Republicans.
Ashland Inc., of Covington, gave $60,700 to the Republican Party. The company has operations in specialty chemicals, motor oil and car care products and highway construction.
Our businesses are just inherently by definition really impacted by public policy decisions, Ashland spokesman Stan Lampe said. We have to engage in the public policy making process. We don't apologize for our involvement.
Among individual soft money donors, Covington attorney Ron Parry contributed more than any other Kentuckian, according to Political Money Line. He has given $60,000 to the Democratic Party so far this cycle.
Mr. Parry said he gives to Democrats, because Republicans generally favor tort reform policies that make it harder to challenge big corporations in court. Mr. Parry says he feels he has no choice but to financially back those who support his views.
Personally I'd rather not give them. I'd rather keep my money and spend it with my family, he said.
Despite his history of giving, Mr. Parry said he supports the new reform law. I think that large contributors probably have too much influence, or at least the perception is that way, Mr. Parry said.
The Republican Party received $28,250 in soft money from Dr. Laxmaiah Manchikanti. The pain management physician from Paducah was the second largest soft-money contributor in Kentucky.
Dr. Manchikanti has lobbied the government to ensure pain management practices at ambulatory care facilities are covered by Medicare. He said U.S. Rep. Ed Whitfield, R-1st District, and McConnell have helped him, but he denied that has been in return for Dr. Manchikanti's support of the GOP.
That really doesn't give me any extra access, he said.
Like Mr. Parry, Dr. Manchikanti favors reform. Reform is a good idea, because these big corporations have all the power, he said. A small guy like me doesn't have any power.
Congress approved the overhaul of campaign finance rules after a lengthy fight. President Bush, who like Democratic predecessor Bill Clinton has been a prolific raiser of soft money for his party, reluctantly signed the bill in March.
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