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Tuesday, December 17, 2002

Memos give peek inside party politics


Lawsuit on finance law opens records

By Carl Weiser
Enquirer Washington Bureau

WASHINGTON - In his 14 years as chairman of the Ohio Republican Party, Robert T. Bennett has built it into a powerhouse that holds every statewide office.

Now a court case here challenging how political campaigns can raise money is providing a glimpse into the secret world of state party fund raising that helped make the Ohio party what it is today.

Memos from Mr. Bennett released as part of the case include:

Asking then-Gov. George Voinovich to call four major donors and ask for $100,000 each.

Before a meeting with Cincinnati mega-donor Carl Lindner, Mr. Bennett developed "talking points." He wanted to stress the $500,000 debt hanging over the party and get Mr. Lindner to call other big donors.

He asked the speaker of the Ohio House to call a Dayton donor worried about commercial real estate being taxed more to pay for schools.

In most cases, the money he was trying to raise was for the party's operating fund, which is intended to pay salaries, rent, and utilities. Ohioans have no way of knowing who gave or when because under state law, the party can keep the names of donors to its operating fund a secret - a point Mr. Bennett stressed in his memos.

"I'm not going to be embarrassed," Mr. Bennett said in an interview. "Would I have preferred my private correspondence not be exposed in a court case? Absolutely. If you expect me to make apologies for doing my job, which is to operate the Ohio Republican Party and to raise the funds necessary, I'm not going to."

"I make no apologies for raising money," he said.

McConnell's challenge

The memos have come to light as the result of a federal lawsuit called McConnell v. Federal Election Commission.

The McConnell is Kentucky Sen. Mitch McConnell. He is challenging the Bipartisan Campaign Reform Act - better known as McCain-Feingold - a law passed this year to lessen the influence of big money in politics.

Mr. McConnell, who fought the legislation for years, is trying to have the law struck down. He says by restricting donations, it is restricting political free speech. He also has argued that charges of money's corrupting influence are exaggerated.

Supporters have responded to Mr. McConnell's challenge by bringing in evidence that big donors indeed influence political parties. Among the inch-thick documents released so far are about a dozen memos related to the Ohio Republican Party.

"These are behind-the-scenes memos and e-mails amongst the players who move money in politics," said Kent Cooper, co-founder of PoliticalMoneyLine, a Web site that tracks money in politics.

"It's a much more blunt and direct manner of fund raising. You sort of assume it's going on, but you're always shocked and a little depressed that it's so blatant," Mr. Cooper said. "

Gov. Bob Taft and Ohio Secretary of State Ken Blackwell plan to reintroduce legislation next year that would force state parties to open up the books on their operating funds.

"It erases any question or any appearance of impropriety, or questions of impropriety," said Orest Holubec, a spokesman for Mr. Taft.

Mr. Taft already had apologized for one of the memos, in which big-money donors to the party were provided a briefing with the governor. That 1999 memo was a mistake, and Mr. Taft has not agreed to anything similar since then, Mr. Holubec said.

Mr. Bennett, 63, has turned the Ohio GOP into one of the most formidable state party operations in the country. Republican candidates swept every statewide office in November. He announced he will seek an eighth two-year term in January, sticking around to ensure the re-election of President Bush and now-Sen. Voinovich.

Running the state party costs about $1.8 million a year, of which $1.2 million comes from the operating account, he said.

Mr. Bennett said big donors don't ask for anything inappropriate and don't get any special political favors.

"It is no different than contributing to Children's Hospital, Ohio State University, or the University of Cincinnati," he said.

Both parties participate

The real danger is not money in politics, he said, but the new campaign finance law. Rather than remove the big money from politics, it will drive it away into secretive, private groups that will be able to avoid any scrutiny.

"I'm going to say it one more time: McCain-Feingold is the greatest fraud ever perpetrated on the American public," he said.

The Supreme Court is expected to decide McConnell v. FEC. But among documents that have come to light so far are these memos:

In October 1997, Mr. Bennett told then-House Speaker Jo Ann Davidson that he was trying to wrangle a $50,000 donation from partners of the Miller Valentine Group, a Dayton real estate developer with projects in Cincinnati.

One partner, Jim Walsh, "has some concerns about the school funding issue and whether the legislature is going to look to commercial real estate for a solution. I have assured him this is not the case and that you are pursuing other options to resolve the school funding problem," Mr. Bennett wrote. He asked Ms. Davidson to call Mr. Walsh and answer his questions.

Mr. Walsh said in an interview that he never spoke to Ms. Davidson about school financing. His company did provide $25,000, although he said it was earmarked for particular candidates.

"It's no quid pro quo. We got nothing out of it," he said.

Ms. Davidson, now president of a consulting firm in Columbus, said she didn't recall the conversation.

An undated memo handed out in 1998 at candidate training schools sponsored by the Ohio Republican Party spelled out the seven reasons people donate money to the party. The top reason: "out of habit."

No. 3 is "people expect something in return." But the memo stresses never to promise anything in return for a contribution.

No. 4 is access. "People give to political candidates because they want the ability to have their phone call returned by this person."

Similarly, No. 7 is "CYA - many people give to both sides so that they will have access to whoever is the winner."

In September 1998, Mr. Bennett sent a memo to Mr. Voinovich, who was then governor and a candidate for the U.S. Senate.

In it, he asked Mr. Voinovich to call four Cleveland donors and ask them to donate $100,000 to the party's operating account - an account, he noted in the memo, that is "an unlimited and nonreported."

The donors were former Indians owner Dick Jacobs; MBNA bank founder Al Lerner; and two executives with Forest City Enterprises, Sam Miller and Al Ratner.

Mr. Voinovich's spokesman, Scott Milburn, said he didn't know if Mr. Voinovich made the calls. But he said Mr. Voinovich made no apologies for raising money to help a party that brought better government to Ohio.

Mr. Bennett wouldn't talk about individual contributors.

A June 24, 1999, paper detailed points Mr. Bennett should stress in a meeting with Mr. Lindner, one of the top donors to the GOP and majority owner of the Cincinnati Reds.

Hoping to get $250,000, Mr. Bennett planned to stress the party's $500,000 debt and willingness of top elected officials, including Mr. Taft, to solicit contributions.

"Ask Carl to call Al Lerner and encourage him to contribute $50,000 to the Party." Mr. Lerner, chairman of MBNA bank and owner of the Cleveland Browns, died earlier this year.

A 1999 memo talked of the benefits of donating to the party.

Those who gave $25,000, making them Team Ohio members, got a reception at the governor's residence and an annual briefing from the state's Republican congressional delegation. Give $50,000 and get a briefing with the governor.

And a lapel pin.

E-mail cweiser@gns.gannett.com

McConnell leads charge to preserve `soft money'



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