Nonprofit groups put new independent expenditure law to the test

After a decade-long effort, New Mexico lawmakers passed new campaign reporting requirements in 2019 to force nonprofit groups, which can spend money on political campaigns without registering as political committees, to disclose their spending as well as the names, addresses, and contribution amounts of their donors who fund such “independent expenditures.” 

Outside campaign spending by groups or individuals not affiliated with a particular campaign have long been a target of reformers seeking to rein in the influence of money on politics.   Without disclosure, nonprofits can spend unlimited amounts of “dark money” without the public knowing where the money comes from. In 2020, two nonprofit groups immediately put the new law to the test by refusing to disclose donors despite enforcement efforts by both the Secretary of State and the New Mexico State Ethics Commission. “I’m not at all surprised,” said Sen. Majority Leader Peter Wirth, D-Santa Fe, who championed the transparency measure for a decade. “Anytime you’re trying to rein [dark money] in, you know, there’s going to be groups that are going to push the limits.” 

The challenges by the nonprofit groups represent a key test for both the law itself and for the enforcing power of the state’s newly created ethics commission, also established in 2019 after several decades of ongoing debate and setbacks.Approved by voters and given powers by the Legislature, the commission can subpoena records and enforce state statutes that cover campaign spending, lobbying, and government conduct.

With starker rural vs urban divide and rise in independents, New Mexico follows national trends

At first glance, the 2020 elections produced a series of largely predictable results. Democrat Joe Biden garnered New Mexico’s five electoral votes, winning by almost 11 percentage points, slightly improving on Hillary Clinton’s eight-point margin in the state four years ago while winning the same 14 counties. Democrats in the state Legislature retained their sizable majorities, even as a number of moderate and conservative Democratic senators were replaced by progressives. And while Republican Yvette Herrell carried the state’s more conservative 2nd congressional district, ousting Democratic incumbent Xochitl Torres Small, her win wasn’t surprising given that since 1981 Democrats have held the seat for a total of four years. 

But look closely, and the 2020 election results plus long-standing population and voter registration shifts over the last decade tell a story of a state in the throes of political trends sweeping across the country. There’s a growing divide between rural and urban New Mexico, with a population shift to urban centers that comes with an increasingly stark political flavor.

Modest sunshine still leaves campaign cash in shadow

Since New Mexico enacted a new disclosure law last year, more than $800,000 in political spending has been publicly reported by nonprofit groups that in the past would have remained largely hidden. It’s a change that Secretary of State Maggie Toulouse Oliver calls “a huge victory.” But Austin Graham of the Campaign Legal Center, which advocates for tighter regulation of money in politics, is more reserved: “What’s on the books in New Mexico is not the most cutting edge, but it’s undoubtedly a big improvement from the last decade.”

The New Mexico experience illustrates that improving the transparency of how campaigns are financed can be done, but making progress often requires incremental steps that take a lot of time. What has happened in New Mexico is an example of what states across the country must grapple with when they seek to slow the influence of money over their own politics, at a time when federal regulation of presidential and congressional elections has shriveled. 

An ocean of money still floats through the state’s elections while remaining out of public view — it’s spent on mailers and advertising that blanket television, radio and social media as elections near — because the new law didn’t strengthen donor disclosure requirements for political action committees.More than $4.8 million in spending on campaigns across the state this year came from PACs whose donations are very difficult if not impossible to trace to their original source, according to an analysis by New Mexico In Depth and The Fulcrum. That’s because their donors often are nonprofit groups or other PACs, so the only way to learn where the money originally came from is to find out the contributors to those other groups. Finding out who gives to nonprofit organizations — so-called “dark money groups” — can be next to impossible, because for the most part they aren’t required to identify their own donors.

New Mexico State Senate makes decisive left turn

New Mexicans woke up on Wednesday not knowing who their next president would be. We’ll stay tuned to that nailbiter of a race, which appears will be decided in a few key states. New Mexico isn’t one of them. It handily voted for Biden, but that was never in serious doubt. While Americans don’t know who will be president, one thing closer to home became clear after Tuesday night: New Mexico’s state senate will shift to the left, potentially opening a path in the Legislature for long stymied Democratic initiatives. Democrats increased their majority in that chamber by one seat in an election that saw New Mexicans turn out in record numbers — 915,376 cast ballots, shattering the previous total of 833,000 set in 2008. More significant, though, is a shift within the makeup of the parties, with a slate of more progressive Democrats replacing longtime incumbents in both parties. As uncertainty looms over womens’ right to make their own choices regarding abortion, joining the Senate will be Democrats who have pledged to repeal a long-dormant ban on abortion in state law.

Democrats dream of expanded majority in State Senate

In the wake of a “progressive wave” in June’s Democratic primaries that swept out of office a group of powerful incumbent Democrats, the state Senate will look very different come January. The wins could help progressive Democrats advance key initiatives, like tapping the Land Grant permanent fund for early childhood programs or getting rid of a criminal abortion law on the books since the 1960s. 

But first, the victorious challengers must win on Tuesday or other closely contested seats largely within the Albuquerque metro area must flip if Democrats want to strengthen their 26-16 advantage in the chamber. 

New Mexico In Depth identified 10 Senate districts in which the difference between registered Democratic and Republican voters is below 4,000. We then charted out candidate spending for each race, as well as the level of in-kind contributions for each candidate. The in-kind contributions reflect spending by party leaders on behalf of the candidates, who then included the value of that spending in their own campaign reports. Four of the districts have been in Democratic hands prior to 2020, while six have been held by Republicans.

Spending in New Mexico’s 2nd district congressional busts into stratosphere

This year’s rematch between Democrat Xochitl Torres Small and Republican Yvette Herrell in New Mexico’s second congressional district is one of the most closely-watched in the nation, generating tensions within the state’s oil and gas industry and tens of millions in outside spending. Roll Call has identified Torres Small as one of the 10 most vulnerable House incumbents up for re-election this year. The respected Cook Political Report rates the race as a tossup. 

At this point, candidates and outside groups have spent a combined sum exceeding $30 million. Spending in 2018 approached $14 million, in a year when across the country record spending was recorded. According to Matt Reichbach at the New Mexico Political report, the New Mexico record occurred in the 2006 race for New Mexico’s 1st congressional district seat, at $14.8 million.

Democrats and Republicans urge early voting to avoid the pitfalls of the primary

After the coronavirus pandemic and record turnout led to shuttered polling places and mountains of absentee ballots slowing the count in June’s primary election, New Mexico county clerks say they’re hiring more election workers and opening more places to vote in person for the general election. Still, there is anxiety about how the system will handle what many across the political spectrum are calling “the most important election of a lifetime.”  Most believe it will take longer in 2020 to know some of the winners, particularly in New Mexico’s hotly contested southern congressional district. And the presidential election, nationally, appears unpredictable as well. Across the country, political strategists who have been encouraging absentee ballots for months have recently shifted to pushing early in-person voting. In New Mexico, public officials and advocates have coalesced around a common mantra: Vote early and be patient while the votes are counted.

Spending in New Mexico primary highlights dark money at work

As the Democratic primary in New Mexico’s third congressional district heated up in May, two mysterious groups– Avacy Initiatives and Perise Practical– began spending a combined $300,000 to support Teresa Leger Fernandez, now the Democratic nominee. The groups ran positive, even glowing advertisements about Leger Fernandez, but didn’t disclose who paid for the ads. Few details could be found about them online. This “dark money” spending drew significant criticism from other candidates, who condemned Leger Fernandez for not calling for removal of the ads. 

But a review by New Mexico In Depth of Federal Election Commission filings suggests the real goal was to deny another candidate in the race—Valerie Plame— the win by boosting the prospects of the Leger Fernandez campaign. 

It’s not uncommon for groups to spend money to support one candidate in order to prevent another candidate from winning. But when groups don’t disclose their donors, voters are left in the dark about the motives behind such efforts. 

“Our voting public is incredibly busy, and doesn’t have time to do research on every single one of the candidates,” said Heather Ferguson, executive director of Common Cause New Mexico.