By Malia Rulon
The Associated Press

WASHINGTON - Contributions from most of Ohio's top corporate PACs, which rely on employee giving, have hit all-time highs this election despite a stagnant economy.

Other Ohio companies have begun using political action committees for the first time to raise and donate money to candidates and political parties, according to an analysis of campaign finance data.

"Ohio is considered to be a key state in the presidential election. In those circumstances, it's not unreasonable to find that some corporations within the state are increasing their funding," said Herbert Alexander, professor emeritus of political science at the University of Southern California.

The contributions are highest in the electricity and banking industries.

The PACs at American Electric Power Co. and FirstEnergy Corp. continued to raise and spend the most money among Ohio companies, taking in a combined $1.5 million between Jan. 1, 2003, and July 31, when the latest reports from the PACs were due to the Federal Election Commission. That is 29 percent more than the companies collected through 1999 and 2000.

"We have put a lot of emphasis on getting our employees involved," said Chris Amatos, PAC administrator for Columbus-based AEP.

Both companies have grown due to mergers in 2000 and 2001, which means there is a larger pool of employees to contribute to the PACs. Other pressing issues in the electric utility industry, such as an energy bill pending in Congress and the need for reliability standards following last year's blackout, also could have led employees to contribute, Amatos said.

AEP uses picnics and guest speakers to educate employees about issues important to the company and encourage participation in the PAC. Other companies distribute brochures or send e-mails to solicit funds.

Employees can contribute up to $5,000 a year per PAC, and PACs can contribute that amount to candidates during both the primary and general elections. Most company PACs have a committee of managers and employees that decides how to spend the money.

This giving comes during times of job loss and as many Ohioans continue to struggle with a beleaguered stock market and the costs associated with an uncertain economy.

Still, in the financial services sector, Fifth Third Bancorp, Nationwide Mutual Insurance Co. and Huntington Bankshares Inc. have donated more money this presidential election than the previous one. Columbus-based Nationwide has more than doubled the $101,736 it gave before, and Cincinnati-based Fifth Third has increased its giving 43 percent to $466,695.

"Financial services is one of the most heavily regulated industries in America ... so as a result, you would be more involved in the political process," said Jeff Quayle, senior vice president and general counsel for the Ohio Bankers League, a trade group.

Two bills that Congress passed this session would allow checks to be cleared electronically and streamline credit bureau reporting, but the industry still wants bankruptcy and Federal Deposit Insurance Corp. reforms, Quayle said.

Candice Nelson, an associate professor of political science at American University and director of the school's Campaign Management Institute, said it's not unusual to see more PAC activity when there is an issue of interest to a company or industry.

"The reason that they give money is to try to get access to elected officials or to candidates," she said.

Ohio companies that have started PACS since 2000 include Dublin-based Wendy's International, which has collected $354,060 so far this election cycle, Steris Corp. of Mentor, Cooper Tire & Rubber Co. of Findlay and Scotts Co. of Marysville.

"We wanted the ability to support candidates who we felt would make balanced decisions regarding laws and regulations which affect the way we do business," said Christiane Schmenk, who directs Scotts' PAC.

The PAC, which relies mostly on donations from company managers, has given about $79,000, all of it to Republican candidates.

Republicans hold all but two statewide offices and dominate the Legislature and congressional delegation. Before 1994, the parties had passed the governorship back and forth with neither holding it for more than eight years.

Not all Ohio companies have increased PAC giving.

Federated Department Stores Inc. hasn't solicited contributions for its PAC in recent years, said spokeswoman Carol Sanger. It took in $10,725 during the 2000 election and gave $9,022, but this election, it hasn't received any contributions and has donated just $3,000.

Cincinnati amounts

Two of Ohio's top 10 PACs are in Cincinnati. The amounts they have raised and donated so far during the two-year 2004 election cycle is listed below. In some cases, money distributed may have been leftover from previous cycles.

Fifth Third Bancorp

Receipts: $259,833

Donations: $466,695

Major donations: $26,500 to the Ohio Republican Party; $15,000 each to the NRCC and the Republican Governors Association; $12,000 to the Hamilton County Republican Party; $7,000 to Rep. Mike Turner, R-Ohio.

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Procter & Gamble Co.

Receipts: $314,176

Donations: $263,335

Major donations: $10,000 to Portman's leadership PAC; $5,000 each to Hastert, Voinovich, Turner and House Ways and Means Committee Chairman Bill Thomas, R-Calif.

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Sources: AP's computer-assisted analysis of campaign finance data from the Federal Election Commission; nonpartisan Center for Responsive Politics; Political Money Line, a nonpartisan service that tracks campaign spending; and the Center for Public Integrity, a nonprofit, nonpartisan government watchdog group.