Democrats back out of a loophole for donors
Asbury Park Press
By KATHY MATHESON
Democrats sounded a full retreat yesterday, saying the party would not accept big donations from state contractors after all.
This was a big deal for them. Because the Democratic Party in New Jersey is a loose alliance of rival warlords, united only by a resolve to protect their huge financial advantage over the hapless Republicans.
But with Sen. Jon Corzine on deck, they can afford a little ethics right now. So they loosened their grip just a bit.
"I don't want this to be an issue -- that's the bottom line," said Corzine.
A few days ago, both Corzine and acting Gov. Richard Codey were defending these donations, both citing the legal principles at work. So it was a surprise when Codey called to say both men had seen the light.
It didn't sound much like a matter of principle or conviction. More like they were embarrassed into it.
And for good reason. The party's chutzpah on this issue can only be described as breathtaking.
On one hand, Democrats have been thumping their chests for passing a reform that banned large donations from state contractors, ending a practice known as pay-to-play. Codey signed that last Tuesday.
But that very night, he held a fund-raiser attended by donors who had been told that a loophole in the law would allow them to make donations of $10,000, even if they do business with the state government.
"I understand the way this looks," says Codey. "But I had no knowledge of this. I have no idea what prompted the memo or how it came about."
The memo Codey referred to, as you might have guessed, is not something that meshed well with the party's official line.
It was basically a cheat sheet that described how to get around the limits on donations. Party officials had been peddling this memo for weeks in closed-door meetings with fund-raisers and big donors, including state contractors.
It was drafted by attorney Angelo Genova, who was in a unique position to identify the loopholes in the law because he drafted them. He wrote the executive order that was the basis for the law.
Genova is a clever fellow, and he's on a winning streak in court. He argues that the state government lacks the authority to limit donations that are earmarked for the Democratic State Committee's federal account. That's up to Washington.
Maybe. But other experts disagree. They say the state set conditions on the contracts it awards, including a ban on political donations, even to federal accounts.
"I don't think it's clear," says Trevor Potter, counsel to John McCain's presidential campaign and a former member of the Federal Election Commission. "It's an open question."
When you talk to Democrats privately, it's striking how many of them think voters just don't care about this issue.
"I hear that a lot," says Sen. Ellen Karcher, who beat Sen. John Bennett in 2003 after a campaign that focused on ethics. "Yes, people don't call up and say they're outraged about pay-to-play. But they have lost faith, and they believe politicians make decisions not in the public interest, but in their own. It puts a pall over everything."
Getting special interest money out of politics may be a noble but hopeless task in the end. As one loophole is closed, another is opened.
But Karcher is right: The real issue is trust. And when Democrats preach reform in the morning, then exploit loopholes at night, it becomes impossible to give them that trust.
Do Codey and Corzine get that? Maybe. Codey has pushed a broad reform agenda, and Corzine promises more of the same.
But both men stumbled on this one. And with their reversal yesterday, it seems clear that they know it.
Tom Moran's column appears Wednesdays and Fridays. He may be reached at tmoran@starledger.com or (973) 392-1823.
