Gifts drive school
debate But interest groups blanketing
state with pro, con ads don’t have to disclose sources or amounts of
funds By JENNIFER
TALHELM Staff
Writer
People advocating for and against Gov. Mark Sanford’s tuition tax
credit bill have spent about $1 million to influence the General
Assembly.
Or they’ve spent millions. Or tens of millions.
We can’t tell you because — but for a few exceptions — they don’t
have to tell you. Nor do they have to say who is giving them
money.
Many of them don’t want you to know.
But evidence that they’re spending a lot of money is all over
South Carolina: Ads for and against the bill are on TV, radio and
billboards. Groups have paid for polls, studies, T-shirts, hats,
phone trees and slick brochures.
And the groups acknowledge spending about $800,000 on their
efforts.
Perhaps not since the Confederate flag has an issue so galvanized
the State House.
Some lawmakers say they want to know who is behind it all and
think it is time for a change in the disclosure laws.
“This thing has the potential for costing billions of dollars out
of the state treasury, and we as legislators should know who’s
trying to influence our state,” said Rep. Ted Vick,
D-Chesterfield.
Legislative leaders, including House Speaker David Wilkins,
R-Greenville, say they might be willing to consider the idea.
“The more openness you have in the process, the better,” Wilkins
said. “This may be the genesis for legislation on that.”
Groups interested in bills from video poker to cigarette taxes to
civil court changes have tried creative ways to persuade
legislators.
However, lawmakers say the tuition tax credit bill, first
introduced last year, has attracted unprecedented attention.
While opponents fear tax credits would siphon resources from
public schools and other state programs, proponents say the tax
credit would push failing public schools to improve.
The groups for and against the tax credit bill say they have the
right to keep information about their donors and expenditures
secret.
“There is not a 501(c)(3) (nonprofit organization) in the country
that discloses its membership list,” said Ed McMullen, president of
the S.C. Policy Council, a conservative think tank that has aired
ads for tax credits.
When asked by The State for information on its finances, the
anti-tax credit group Choose Children First also declined, saying it
would put them at a competitive disadvantage.
“We made the decision early on that if the other side is going to
(keep it secret) we would not disclose,” said Lee Bussell, of Choose
Children First. “It would be unfair to our donors.”
In an election, donations and expenditures by individuals and
groups must be disclosed.
But the courts have firmly protected the right of groups in other
situations to keep their fund-raising information secret, said John
Crangle, executive director of the government watchdog S.C. Common
Cause.
“It would be nice if these organizations on their own would
disclose their donors,” Crangle said. “It’s a nationwide
problem.”
Tax credit opponents speculate that much of the money the bill’s
supporters are spending has come from out-of-state groups pushing
the proposal.
But supporters of the bill, including South Carolinians for
Responsible Government, say most of their money is coming from S.C.
residents who want tax credits.
While they wouldn’t fully disclose their own finances, opponents
of the bill say lawmakers should be able to know for sure who is
trying to influence them.
Out-of-state groups spent tens of thousands of dollars last year
— mostly unsuccessfully — to try to get pro-tax credit candidates
elected in Richland, Charleston and other counties.
For example, Michigan-based All Children Matter spent $100,000 on
advertising against Sen. Joel Lourie, D-Richland, just in the last
week before the election.
Tax credit opponents have raised some outside money.
S.C. Education Association president Sheila Gallagher said her
organization, which represents teachers, applied for a grant from
the National Education Association to fight the bill.
The money has paid for billboards and radio ads criticizing
Sanford and the bill. Gallagher declined to say how large the grant
was.
The NEA “thought it was a bad bill,” Gallagher said. “They had
more questions (about the bill) than we have.”
Whether it’s coming from South Carolinians or outside business
interests, lots of money is being spent on the issue.
Lobbying records, which are public, show that the six groups most
active in supporting or opposing the bill last year spent, combined,
about $200,000 to sway lawmakers.
That is just a fraction of the total money they have spent to
influence the outcome of the bill.
The Policy Council has spent $545,000 on advertising, McMullen
said, including the cost to produce and air four TV ads. One
featured Sanford.
The governor said he was torn over whether groups lobbying the
Legislature should be subject to sunshine laws. He said he would
have to give it more thought.
The Policy Council also paid for part of an economic study of tax
credits. The Illinois-based LEAD Foundation, which lobbies for tax
credits nationwide, shared the cost of the study.
Reach Talhelm at (803) 771-8339 or jtalhelm@thestate.com. |