S.C.
GOVERNMENT
Secret donations in tax-credit debate raise potential
for reform
By Jennifer Talhelm Knight Ridder
COLUMBIA - 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.
It's hard to say because - but for a few exceptions - they don't
have to disclose that. Nor do they have to say who is giving them
money.
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.
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 influencing bills have tried several 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) [non-profit 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 (Columbia) 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.
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.
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.
Gallagher declined to say how large the grant was.
Six groups are working hard to influence the outcome of the
tuition tax-credit bill. Four of those paid lobbyists in 2004, the
most recent year records are available. The lobbyists represent the
groups' positions on several issues, including tax credits. Here's
what they spent:S.C. School Boards Association | $26,800 in the
first six months of 2004
S.C. Education Association | $20,000 in the last six
months of 2004
S.C. Association of School Administrators | $65,138 in the
first half of 2004
South Carolinians for Responsible Government | $50,000 in
the first half of
2004 |