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.

PACs and nonprofits fuel 2020 elections

As is the case every year, the month or so before election day is one of the busiest of the year for both political contributions and spending. Voters begin to tune in, early and absentee voting starts, and candidates make their final pitches to the electorate. Political action committees (PACs) and other groups spend considerable amounts to influence election outcomes. This year, even with a raging pandemic, those dynamics have held. Here are the top 20 groups raising money during the Third General Reporting Period, which covered October 6th – 27th.  Political action committees or independent expenditure groups have raised an aggregate sum of $8.3 million since June.

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.

Ethics complaint alleges group failed to disclose donors, and suggests connection to prominent lobbyist

Over the course of May and early June this year, a new group called the “Council for a Competitive New Mexico” (CCNM) spent over $130,000 on a media campaign supporting a group of incumbent state senators, most of whom would go on to lose as part of a progressive wave in June’s Democratic primary. The media campaign included several negative mailers and automated phone-calls against candidates opposing the incumbents while the public was left in the dark about who organized the group and who funded the media campaign. 

Now, an ethics complaint filed this week with the Secretary of State’s office alleges that CCNM broke New Mexico’s election code by not disclosing its donors. 

Neri Holguin, campaign manager for two of the candidates who won during the June primary, Siah Correa Hemphill and Pam Cordova, writes that the group may have violated the New Mexico Elections Code by not reporting who paid for the negative advertising and phone calls against those candidates as well as others. 

“It was a deliberate attempt to make it as difficult as possible for voters to know who’s behind these hits on our candidates,” said Holguin in an interview. “They knew the rules enough to file as an independent expenditure (IE) and to list their expenditures, and so why not list contributors?”

“Voters need to know that, and we have no way of knowing that right now,” said Holguin. At the core of Holquin’s complaint is a new state law that triggers certain groups to disclose publicly and quickly who the donors are that paid for their electioneering activities if the costs are larger than a state-prescribed threshold. 

Holguin said she believes CCNM was created by a group of people, including prominent New Mexico lobbyist Vanessa Alarid–whom she mentioned by name in the complaint–that have used similar tactics in recent years to influence elections at the local and state level without disclosing publicly who is funding the activities in a timely fashion.Chevonne Alarid, the president of the nonprofit group, however, said disclosure isn’t necessary  until it files its annual report to the Internal Revenue Service. In addition, she and Vanessa Alarid both denied Vanessa’s involvement.

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.

Fix for hobbled public financing system on Albuquerque ballot

Boxes of signed democracy dollar petitions were delivered to the Albuquerque City Clerk in early August 2017. Albuquerque’s beleaguered public financing program could become more attractive to people running for mayor or city council if a proposition before voters in next week’s election is successful. 

The changes would boost the amount of money going to mayoral candidates whose campaigns qualify for public money. Plus, Albuquerque residents would be allowed to direct additional money to mayoral and city council candidates of their choice, in $25 increments. 

The proposal is being heatedly debated in the final days before the election. Detractors say the program will cost Albuquerque a lot and favor incumbents or other candidates backed by organized groups with resources to help them.  Proponents say public financing, including this effort to strengthen Albuquerque’s system, would help diminish the influence of money on politics, and encourage more people to run for office.  

Problem in search of a solution

The proposal would update Albuquerque’s original  public financing program for mayoral and city council candidates created in 2005 with high hopes of decreasing the influence of private money in elections. The current system requires candidates to demonstrate they have some measure of community support before receiving public money, through gathering qualifying contributions and signatures from a certain percentage of voters.

Lobbying influence game largely in the dark

A reporter sits at her desk looking at a spreadsheet. The rows and columns show the spending lobbyists reported to the Secretary of State’s Office for the first five months of 2019, which includes the 60-day legislative session.  She wants to tell a story about what that spending bought. But there’s only so much to glean, because so much isn’t reported. That was me the other day.

Senators reject lobbying reform

A near empty Senate Rules committee hears sponsors of a lobbying reform measure present their bill on Monday, March 13. One could say whether a bill makes it out of a legislative committee has everything to do with the lawmakers sitting on the committee. But Senate somersaults this week pretty much lay to rest the notion that the vote of a committee always matters. If lawmakers really want to pass something, they will. The example this week: ethics commission legislation.

NM doles out billion dollars in capital outlay, funding decisions remain secret

As New Mexico’s 2019 legislative session draws to a close, lawmakers are poised to allocate almost a billion dollars to infrastructure projects around the state. The Senate Finance committee approved $933 million yesterday for capital projects statewide. For comparison, just a year ago capital outlay money totaled $364.5 million. The state is so flush with cash, that each chamber is moving an additional “junior” appropriation bill of about $30 million, HB 548 and SB 536, for $60 million total that individual members will parcel out. The bill, SB 280, holds $385 million going to statewide projects designated by state agencies.

Lobbyists weigh in on disclosure, ban on spending proposals

House State Government, Elections and Indian Affairs committee discussing HB 131. As the House of Representatives geared up for a late night on the floor last Monday, a group of lobbyists were asked to provide dinner for legislators: green chile cheeseburgers from Lota Burger. A few days later, on Thursday, Rep. Jane Powdrell-Culbert, R-Albuquerque, thanked a group of “lobbyists, about 40” who paid for what’s now an annual tradition — a catered lunch for House members from her extended family’s restaurant, Powdrell’s barbeque. The mood on the floor was jovial. To some, the displays did not quite square with the lawmakers’ vote the previous Sunday to ban lobbyist spending on lawmakers during a legislative session.